[Federal Register Volume 77, Number 29 (Monday, February 13, 2012)]
[Notices]
[Pages 7660-7662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-3197]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control


Information Regarding General Licenses A and B Under the New 
Executive Order of February 5, 2012

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Notice.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (``OFAC'') is providing information regarding General Licenses 
A and B issued pursuant to the new Executive Order of February 5, 2012 
(``Blocking Property of the Government of Iran and Iranian Financial 
Institutions'') (``new Executive Order'').

DATES: General Licenses A and B went into effect on February 6, 2012.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Sanctions, 
Compliance, & Evaluation, Office of Foreign Assets Control, Department 
of the Treasury, Washington, DC 20220, tel.: 202/622-2490.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are

[[Page 7661]]

available from OFAC's Web site (www.treasury.gov/ofac). Certain general 
information pertaining to OFAC's sanctions programs also is available 
via facsimile through a 24-hour fax-on-demand service, tel.: 202/622-
0077.

Background

    On February 5, 2012, the President, invoking the authority of, 
inter alia, the International Emergency Economic Powers Act (50 U.S.C. 
1701-1706) (``IEEPA''), issued a new Executive Order (``Blocking 
Property of the Government of Iran and Iranian Financial 
Institutions'') (``new Executive Order''), in order to take additional 
steps with respect to the national emergency declared in Executive 
Order 12957 of March 15, 1995, particularly in light of the deceptive 
practices of the Central Bank of Iran and other Iranian banks to 
conceal transactions of sanctioned parties, the deficiencies in Iran's 
anti-money laundering regime and the weaknesses in its implementation, 
and the continuing and unacceptable risk posed to the international 
financial system by Iran's activities.
    The new Executive Order blocks the property and interests in 
property of the Government of Iran, including the Central Bank of Iran, 
any Iranian financial institution, and any person determined by the 
Secretary of the Treasury, in consultation with the Secretary of State, 
to be owned or controlled by, or to have acted or purported to act for 
or on behalf of, directly or indirectly, any person whose property and 
interests in property are blocked pursuant to the new Executive Order.
    Certain general licenses set forth in the Iranian Transactions 
Regulations, 31 CFR part 560 (the ``ITR''), and certain specific 
licenses issued pursuant to 31 CFR chapter V, including Part 560, 
authorize transactions with the ``Government of Iran,'' as the term is 
defined in section 7(d) of the new Executive Order, or ``Iranian 
financial institutions,'' as the term is defined in section 7(f) of the 
new Executive Order. The issuance of the new Executive Order, blocking 
the property and interests in property of the Government of Iran and 
Iranian financial institutions, would have rendered these general and 
specific licenses invalid to the extent that they authorized 
transactions with the Government of Iran or an Iranian financial 
institution. OFAC has taken action to preserve these licenses under the 
new Executive Order.
    In addition, OFAC has taken action to ensure that noncommercial, 
personal remittances may continue to flow to or from Iran. The issuance 
of the new Executive Order, blocking all Iranian financial 
institutions, would have prohibited U.S. persons from processing 
noncommercial, personal remittances to or from Iran that involve 
Iranian financial institutions. General License B authorizes United 
States depository institutions and United States registered brokers or 
dealers in securities to process transfers of funds to or from Iran or 
for or on behalf of an individual ordinarily resident in Iran, in cases 
in which the transfer involves a noncommercial, personal remittance, 
subject to certain restrictions.
    General Licenses A and B are set forth below. They also are 
available on OFAC's Web site at: www.treasury.gov/ofac.

General License A--Certain Transactions Otherwise Authorized Under 
General or Specific Licenses Set Forth in or Issued Pursuant to 31 CFR 
Chapter V Authorized

    (a) Effective February 6, 2012, all transactions involving property 
and interests in property of the Government of Iran or Iranian 
financial institutions authorized under general licenses set forth in 
the Iranian Transactions Regulations, 31 CFR part 560 (the ``ITR''), 
are hereby authorized under the new Executive Order of February 5, 2012 
(``Blocking Property of the Government of Iran and Iranian Financial 
Institutions'') (``new Executive Order''), except as set forth in 
paragraphs (c) and (d) of this general license.
    (b) Effective February 6, 2012, all transactions involving property 
and interests in property of the Government of Iran or Iranian 
financial institutions authorized under specific licenses issued 
pursuant to any part of 31 CFR chapter V, including specific licenses 
issued pursuant to the Trade Sanctions Reform and Export Enhancement 
Act of 2000 (22 U.S.C. 7201-7211), are hereby authorized under the new 
Executive Order, and such specific licenses shall remain in effect 
according to their terms, provided that such specific licenses have an 
expiration date. If a specific license has no expiration date:
    (1) If it was issued pursuant to any part or parts of 31 CFR 
chapter V, but was not issued under 31 CFR part 535, then all 
transactions involving property and interests in property of the 
Government of Iran or Iranian financial institutions authorized under 
such a specific license are hereby authorized under the new Executive 
Order until April 6, 2012;
    (2) If it was issued pursuant to 31 CFR part 535, including a 
specific license issued pursuant to 31 CFR part 535 and another part or 
other parts of 31 CFR chapter V, then all transactions involving 
property and interests in property of the Government of Iran or Iranian 
financial institutions authorized under such a specific license are 
hereby authorized under the new Executive Order, and such a specific 
license shall remain in effect according to its terms.
    (c) This general license does not authorize any transactions 
authorized by Sec.  560.517(a)(3) or (b)(2) of the ITR. Such 
transactions involving property and interests in property of the 
Government of Iran or an Iranian financial institution are prohibited 
by the new Executive Order.
    (d) This general license does not authorize any payments from 
blocked funds or debits to blocked accounts, except for payments from 
funds or debits to accounts blocked pursuant to 31 CFR part 535 that 
are authorized by specific licenses issued pursuant to 31 CFR chapter 
V.
    (e) Definitions. As used in this general license:
    (1) The term Government of Iran shall have the meaning set forth in 
section 7(d) of the new Executive Order; and
    (2) The term Iranian financial institutions shall have the meaning 
set forth in section 7(f) of the new Executive Order.

General License B--Certain Noncommercial, Personal Remittances to or 
From Iran Authorized

    (a) Effective February 6, 2012, United States depository 
institutions and United States registered brokers or dealers in 
securities are authorized to process transfers of funds to or from Iran 
or for or on behalf of an individual ordinarily resident in Iran who is 
not included within the term ``Government of Iran,'' as defined in 
section 7(d) of the new Executive Order of February 5, 2012 (``Blocking 
Property of the Government of Iran and Iranian Financial 
Institutions'') (``new Executive Order''), to the extent the transfer 
is otherwise prohibited by the new Executive Order, in cases in which 
the transfer involves a noncommercial, personal remittance, provided 
the transfer is not by, to, or through any of the following:
    (1) A person whose property and interests in property are blocked 
pursuant to the Weapons of Mass Destruction Proliferators Sanctions 
Regulations, 31 CFR part 544 (``WMDPSR''), or the Global Terrorism 
Sanctions Regulations, 31 CFR part 594 (``GTSR''); or
    (2) A person whose property and interests in property are blocked

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pursuant to any other part of 31 CFR chapter V, or any Executive order, 
except an Iranian financial institution whose property and interests in 
property are blocked solely pursuant to the new Executive Order.
    (b) Noncommercial, personal remittances do not include charitable 
donations to or for the benefit of an entity or funds transfers for use 
in supporting or operating a business, including a family-owned 
enterprise.

    Note to paragraph (b) of General License B:  Charitable 
donations of funds to or for the benefit of an entity in Iran 
require a specific license.

    (c) The transferring institutions identified in paragraph (a) of 
this general license may rely on the originator of a funds transfer 
with regard to compliance with paragraph (a) of this general license, 
provided that the transferring institution does not know or have reason 
to know that the funds transfer is not in compliance with paragraph (a) 
of this general license.
    (d) Example. A United States depository institution may transmit a 
noncommercial, personal remittance from a customer in the United States 
to her mother in Iran, provided the remittance is routed through a 
third-country financial institution to an Iranian financial institution 
that has not been designated under the WMDPSR or the GTSR or any other 
part of 31 CFR chapter V, or any Executive order, but whose property 
and interests in property are blocked solely under the new Executive 
Order.

    Dated: February 6, 2012.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2012-3197 Filed 2-10-12; 8:45 am]
BILLING CODE 4810-AL-P