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]

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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