22 August 2006

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[Federal Register: August 22, 2006 (Volume 71, Number 162)]

[Rules and Regulations]               

[Page 48795-48797]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr22au06-2]                         



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DEPARTMENT OF THE TREASURY



Office of Foreign Assets Control



31 CFR Part 560



 

Iranian Transactions Regulations



AGENCY: Office of Foreign Assets Control, Treasury.



ACTION: Final rule; amendment.



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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of 

the Treasury is amending the Iranian Transactions Regulations, 31 CFR 

part 560, effective immediately, to add a new general license 

authorizing U.S. persons who are employees or contractors of six 

international organizations to perform transactions for the conduct of 

the official business of those organizations in or involving Iran.



DATES: Effective date: August 22, 2006.



FOR FURTHER INFORMATION CONTACT: Assistant Director of Compliance 

Outreach/Implementation, tel.: 202/622-2490, Assistant Director of 

Licensing, tel.: 202/622-2480, Assistant Director of Policy, tel.: 202/

622-4855, or Chief Counsel, tel.: 202/622-2410, Office of Foreign 

Assets Control, Department of the Treasury, Washington, DC 20220.



SUPPLEMENTARY INFORMATION:



Electronic and Facsimile Availability



    This document and additional information concerning OFAC are 

available from OFAC's Web site (http://www.treas.gov/ofac) or via 



facsimile through a 24-hour fax-on-demand service, tel.: 202/622-0077.



Background



    The Iranian Transactions Regulations, 31 CFR part 560 (the 

``ITR''), implement a series of Executive orders with respect to Iran, 

beginning with Executive Order 12957, issued on March 15, 1995. In that 

order, the President declared a national emergency pursuant to IEEPA to 

deal with the unusual and extraordinary threat to the national 

security, foreign policy, and economy of the United States constituted 

by the actions and policies of the Government of Iran, including its 

support for international terrorism, its efforts to undermine the 

Middle East peace process and its efforts



[[Page 48796]]



to acquire weapons of mass destruction and the means to deliver them. 

To deal with this threat, Executive Order 12957 imposed prohibitions on 

certain transactions with respect to the development of Iranian 

petroleum resources. On May 6, 1995, the President issued Executive 

Order 12959 imposing comprehensive trade sanctions to further respond 

to this threat, and on August 19, 1997, the President issued Executive 

Order 13059 consolidating and clarifying the previous orders.

    In light of the U.S. interest in promoting the hiring and retention 

of Americans by international organizations, the Treasury Department's 

Office of Foreign Assets Control (``OFAC'') today is amending the ITR, 

effective immediately, to add a new general license authorizing U.S. 

persons who are employees or contractors of six international 

organizations to perform transactions for the conduct of the official 

business of these organizations in or involving Iran. Paragraph (a) of 

new ITR Sec.  560.539 specifies that the performance of transactions 

for the conduct of the official business of the United Nations, the 

World Bank, the International Monetary Fund, the International Atomic 

Energy Agency, the International Labor Organization or the World Health 

Organization by U.S. persons who are employees or contractors thereof 

is authorized, except as provided in paragraph (b) of the new section.

    Paragraph (a) of Sec.  560.539 also provides examples of authorized 

transactions, such as: the provision of services involving Iran 

necessary for carrying out the official business; purchasing Iranian 

goods and services for use in carrying out the official business; 

leasing office space and securing related goods and services; funds 

transfers to or from the accounts of the international organizations 

specified in the license, provided that funds transfers to or from Iran 

are not routed through an account of an Iranian bank on the books of a 

U.S. financial institution; and the operation of accounts for the 

employees and contractors in Iran, provided that transactions conducted 

through the accounts are solely for the employee's or contractor's 

personal use and not for any commercial purposes in or involving Iran, 

and any funds transfers to or from an Iranian bank are routed through a 

third-country bank that is not a U.S. person.

    Paragraph (b) of Sec.  560.539 provides that this new general 

license does not authorize (1) The exportation from the United States 

to Iran of any goods or technology listed on the Commerce Control List 

in the Export Administration Regulations, 15 CFR part 774, supplement 

No. 1 (CCL); (2) the reexportation to Iran of any U.S.-origin goods or 

technology listed on the CCL; or (3) the exportation or reexportation 

to Iran of any services not necessary and ordinarily incident to the 

international organization's official business in Iran. Such 

transactions require separate authorization from OFAC.



Public Participation



    Because the Regulations involve a foreign affairs function, the 

provisions of Executive Order 12866 and the Administrative Procedure 

Act (5 U.S.C. 553) (the ``APA'') requiring notice of proposed 

rulemaking, opportunity for public participation, and delay in 

effective date are inapplicable. Because no notice of proposed 

rulemaking is required for this rule, the Regulatory Flexibility Act (5 

U.S.C. 601-612) does not apply.



Paperwork Reduction Act



    As authorized in the APA, the Regulations are being issued without 

prior notice and public comment. The collections of information related 

to 31 part 560 are contained in 31 CFR part 501 (the ``Reporting, 

Procedures and Penalties Regulations''). Pursuant to the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3507), those collections of 

information have been approved by the Office of Management and Budget 

under control number 1505-0164. An agency may not conduct or sponsor, 

and a person is not required to respond to, a collection of information 

unless the collection of information displays a valid control number.



List of Subjects in 31 CFR Part 560



    Administrative practice and procedure, Banks, Banking, Brokers, 

Foreign Trade, Investments, Loans, Securities, Iran.



0

For the reasons set forth in the preamble, the Office of Foreign Assets 

Control amends 31 CFR part 560 as follows:



PART 560--IRANIAN TRANSACTIONS REGULATIONS



0

1. The authority citation for part 560 continues to read as follows:



    Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 

2349aa-9; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 

101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 106-387, 114 

Stat. 1549; E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 

12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 

24757, 3 CFR, 1995, Comp., 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 

Comp., p. 217.



Subpart E--Licenses, Authorizations and Statements of Licensing 

Policy



0

2. Add a new Sec.  560.539 to Subpart E to read as follows:





Sec.  560.539  Official Activities of Certain International 

Organizations.



    (a) General License. Except as provided in paragraph (b) of this 

section, the performance of transactions for the conduct of the 

official business of the United Nations, the World Bank, the 

International Monetary Fund, the International Atomic Energy Agency, 

the International Labor Organization or the World Health Organization 

in or involving Iran by U.S. persons who are employees or contractors 

thereof is hereby authorized. Authorized transactions include, but are 

not limited to:

    (1) The provision of services involving Iran necessary for carrying 

out the official business;

    (2) Purchasing Iranian-origin goods and services for use in 

carrying out the official business;

    (3) Leasing office space and securing related goods and services;

    (4) Funds transfers to or from accounts of the international 

organizations covered in this paragraph, provided that funds transfers 

to or from Iran are not routed through an account of an Iranian bank on 

the books of a U.S. financial institution; and

    (5) The operation of accounts for employees and contractors located 

in Iran who are described in this paragraph. Transactions conducted 

through these accounts must be solely for the employee's or 

contractor's personal use and not for any commercial purposes in or 

involving Iran. Any funds transfers to or from an Iranian bank must be 

routed through a third-country bank that is not a U.S. person.

    (b) Limitations. This section does not authorize:

    (1) the exportation from the United States to Iran of any goods or 

technology listed on the Commerce Control List in the Export 

Administration Regulations, 15 CFR part 774, supplement No. 1 (CCL);

    (2) the reexportation to Iran of any U.S.-origin goods or 

technology listed on the CCL; or

    (3) the exportation or reexportation from the United States or by a 

U.S. person, wherever located, to Iran of any services not necessary 

and ordinarily incident to the official business in Iran.



[[Page 48797]]



Such transactions require separate authorization from OFAC.





    Note to paragraph (b): The CCL includes items such as laptops, 

personal computers, cell phones, personal digital assistants and 

other wireless handheld devices/blackberries, and other similar 

items. The exportation of these items to Iran, even on a temporary 

basis, is prohibited, unless specifically authorized in a license 

issued pursuant to this part in a manner consistent with the Iran-

Iraq Arms Nonproliferation Act of 1992 and other relevant law.



    (c) Other Requirements. The general license set forth in this 

section shall not operate to relieve any persons authorized hereunder 

from compliance with any other U.S. legal requirements applicable to 

the transactions authorized pursuant to paragraph (a) of this section.



    Dated: August 7, 2006.

Barbara C. Hammerle,

Acting Director, Office of Foreign Assets Control.



    Approved: August 8, 2006.

Stuart A. Levey,

Under Secretary, Office of Terrorism and Financial Intelligence, 

Department of the Treasury.

[FR Doc. E6-13809 Filed 8-21-06; 8:45 am]



BILLING CODE 4811-37-P



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[Federal Register: August 22, 2006 (Volume 71, Number 162)]

[Notices]               

[Page 48974]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr22au06-123]                         



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DEPARTMENT OF THE TREASURY



Office of Foreign Assets Control



 

Additional Designation of Individuals Pursuant to Executive Order 

13338



AGENCY: Office of Foreign Assets Control, Treasury.



ACTION: Notice.



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SUMMARY: The Treasury Department's Office of Foreign Assets Control 

(``OFAC'') is publishing the names of two newly designated individuals 

whose property and interests in property are blocked pursuant to 

Executive Order 13338 of May 11, 2004, ``Blocking Property of Certain 

Persons and Prohibiting the Export of Certain Goods to Syria.''



DATES: The designation by the Secretary of the Treasury of the two 

individuals identified in this notice pursuant to Executive Order 13338 

is effective on August 15, 2006.



FOR FURTHER INFORMATION CONTACT: Assistant Director, Compliance 

Outreach & Implementation, 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 

available from OFAC's Web site (http://www.treas.gov/ofac) or via 



facsimile through a 24-hour fax-on-demand service, tel.: 202/622-0077.



Background



    On May 11, 2004, the President issued Executive Order 13338 (the 

``Order'') pursuant to the International Emergency Economic Powers Act, 

50 U.S.C. 1701 et seq., the National Emergencies Act, 50 U.S.C. 1601 et 

seq., the Syria Accountability and Lebanese Sovereignty Restoration Act 

of 2003, Public Law 108-175, and section 301 of title 3, United States 

Code. In the Order, the President declared a national emergency to 

address the threat posed by the actions of the Government of Syria in 

supporting terrorism, continuing its occupation of Lebanon, pursuing 

weapons of mass destruction and missile programs, and undermining the 

United States and international efforts with respect to the 

stabilization and reconstruction of Iraq.

    Section 3 of the Order blocks, with certain exceptions, all 

property and interests in property of the following persons, that are 

in the United States, that hereafter come within the United States, or 

that are or hereafter come within the possession or control of United 

States persons: Persons who are determined by the Secretary of the 

Treasury, in consultation with the Secretary of State, (1) to be or to 

have been directing or otherwise significantly contributing to the 

Government of Syria's provision of safe haven to or other support for 

any person whose property or interests in property are blocked under 

the United States law for terrorism-related reasons; (2) to be or to 

have been directing or otherwise significantly contributing to the 

Government of Syria's military or security presence in Lebanon; (3) to 

be or to have been directing or otherwise significantly contributing to 

the Government of Syria's pursuit of the development and production of 

chemical, biological, or nuclear weapons and medium- and long-range 

surface-to-surface missiles; (4) to be or to have been directing or 

otherwise significantly contributing to any steps taken by the 

Government of Syria to undermine the United States and international 

efforts with respect to the stabilization and reconstruction of Iraq; 

or (5) to be owned or controlled by, or acting or purporting to act for 

or on behalf of, directly or indirectly, any person whose property or 

interests in property are blocked pursuant to the Order.

    On August 15, 2006, the Secretary of the Treasury, in consultation 

with the Secretary of State, designated, pursuant to one or more of the 

criteria set forth in the Order, two individuals whose property and 

interests in property are blocked pursuant to Executive Order 13338.

    The list of additional designees is as follows:

    1. Ikhtiyar, Hisham (a.k.a. Al Ikhteyar, Hisham; a.k.a. Al 

Ikhtiyar, Hisham; a.k.a. Al-Ikhtiyar, Hisham; a.k.a. Al-Ikhtiyar, 

Hisham Ahmad; a.k.a. Bakhtiar, Hisham; a.k.a. Bakhtiyar, Hisham; a.k.a. 

Ichtijar, Hisham; a.k.a. Ikhteyar, Hisham), Maliki, Damascus, Syria; 

DOB 1941; Major General; Director, Syria Ba'ath Party Regional Command 

National Security Bureau

    2. Jami Jami (a.k.a. Jama' Jama'; a.k.a. Jamea, Jamea Kamil; a.k.a. 

Jam'i Jam'i); DOB 16 Jun 1954; POB Jablah, Zama, Syria; Brigadier 

General



    Dated: August 15, 2006.

Barbara C. Hammerle,

Acting Director, Office of Foreign Assets Control.

[FR Doc. E6-13810 Filed 8-21-06; 8:45 am]



BILLING CODE 4811-37-P