1. Additional Designations of Terrorism-Related Blocked Persons (68 FR 398 on January 3, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control has published notice of three designations of additional persons whose property and interests in property have been blocked pursuant to Executive Order 13224 of September 23, 2001, pertaining to persons who commit, threaten to commit, or support terrorism. The list of additional designations include:

(1)        Echeberria Simarro, Leire; member ETA; DOB 20 Dec 1977; POB Basauri (Vizcaya Province), Spain; D.N.I. 45.625.646 (individual);

(2)        Echegaray Achirica, Alfonso; member ETA; DOB 10 Jan 1958; POB Plencia (Vizcaya Province), Spain; D.N.I. 16.027.051 (individual); and

(3)        Iztueta Barandica, Enrique; member ETA; DOB 30 Jul 1955; POB Santurce (Vizcaya Province), Spain; D.N.I. 14.929.950 (individual); and

(4)        Vallejo Franco, Inigo; member ETA; DOB 21 May 1976; POB Bilbao (Vizcaya Province), Spain; D.N.I. 29.036.694 (individual).

2. Additional Designations of Terrorism-Related Blocked Persons (68 FR 399 on January 3, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control has published notice of the designation of three additional persons whose property and interests in property have been blocked pursuant to Executive Order 13224 of September 23, 2001, pertaining to persons who commit, threaten to commit, or support terrorism.      The lists of additional designations include

(1)    Benevolence International Foundation (a.k.a. Al Bir Al Dawalia; a.k.a. BIF; a.k.a. BIF-USA; a.k.a. Mezhdunarodnyj Blagotvoritel'Nyj Fond), 8820 Mobile Avenue, 1A, Oak Lawn, IL 60453, U.S.A.; P.O. Box 548, Worth, IL 60482, U.S.A.; formerly at 9838 S. Roberts Road, Suite 1W, Palos Hills, IL 60465, U.S.A.; formerly at 20-24 Branford Place, Suite 705, Newark, NJ 07102, U.S.A.; Bashir Safar Ugli 69, Baku, Azerbaijan; 69 Boshir Safaroglu St., Baku, Azerbaijan; Sarajevo, Bosnia-Herzegovina; Zenica, Bosnia-Herzegovina; “last known address,” 3 King Street, South Waterloo, Ontario, N2J 3Z6 Canada; “last known address,” P.O. Box 1508 Station B, Mississauga, Ontario, L4Y 4G2 Canada; “last known address,” 2465 Cawthra Rd., 203, Mississauga, Ontario, L5A 3P2 Canada; Ottawa, Canada; Grozny, Chechnya; 91 Paihonggou, Lanzhou, Gansu, China 730000; Hrvatov 30, 41000, Zagreb, Croatia; Makhachkala, Daghestan; Duisi, Georgia; Tbilisi, Georgia; Nazran, Ingushetia; Burgemeester Kessensingel 40, Maastricht, Netherlands; House 111, First Floor, Street 64, F-10/3, Islamabad, Pakistan; P.O. Box 1055, Peshawar, Pakistan; Azovskaya 6, km. 3, off. 401, Moscow, Russia 113149; Ulitsa Oktyabr'skaya, dom. 89, Moscow, Russia 127521; P.O. Box 1937, Khartoum, Sudan; P.O. Box 7600, Jeddah 21472, Saudi Arabia; P.O. Box 10845, Riyadh 11442, Saudi Arabia; Dushanbe, Tajikistan; United Kingdom; Afghanistan; Bangladesh; Bosnia-Herzegovina; Gaza Strip; Yemen; U.S. FEIN: 36-3823186 (entity);

(2)    Benevolence International Fund (a.k.a. Benevolent International Fund; a.k.a. BIF-Canada), “last known address,” 2465 Cawthra Rd., Unit 203, Mississauga, Ontario, L5A 3P2 Canada; “last known address,” P.O. Box 1508, Station B, Mississauga, Ontario, L4Y 4G2 Canada; “last known address,” P.O. Box 40015, 75 King Street South, Waterloo, Ontario, N2J 4V1 Canada; “last known address,” 92 King Street, 201, Waterloo, Ontario, N2J 1P5 Canada (entity); and

(3)    Bosanska Idealna Futura (a.k.a. BECF Charitable Educational Center; a.k.a. Benevolence Educational Center; a.k.a. BIF-Bosnia; a.k.a. Bosnian Ideal Future), Salke Lagumdzije 12, 71000 Sarajevo, Bosnia-Herzegovina; Hadzije Mazica Put 16F, 72000 Zenica, Bosnia-Herzegovina; Sehidska Street, Breza, Bosnia-Herzegovina; Kanal 1, 72000 Zenica, Bosnia-Herzegovina; Hamze Celenke 35, Ilidza, Sarajevo, Bosnia-Herzegovina (entity).

3. Additional Designations of Terrorism-Related Blocked Persons(68 FR 399 on January 3, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control has published notice of the designation of one additional person whose property and interests in property have been blocked pursuant to Executive Order 13224 of September 23, 2001, pertaining to persons who commit, threaten to commit, or support terrorism. The additional designation is: Global Relief Foundation, Inc., (a.k.a. Fondation Secours Mondial, A.S.B.L; a.k.a. Fondation Secours Mondial--Belgique A.S.B.L.; a.k.a.  Fondation Secours Mondial VZW; a.k.a. FSM; a.k.a. Stichting Wereldhulp--Belgie, V.Z.W.; a.k.a. Fondation Secours Mondial--Kosova; a.k.a. Fondation Secours Mondial “World Relief”; a.k.a. Secours Mondial de France), Rruga e Kavajes, Building No. 3, Apartment No. 61, P.O. Box 2892, Tirana, Albania; Vaatjesstraat, 29, 2580 Putte, Belgium; Rue des Bataves 69, 1040 Etterbeek, Brussels, Belgium; P.O. Box 6, 1040 Etterbeek 2, Brussels, Belgium; Mula Mustafe Baseskije Street No. 72, Sarajevo, Bosnia; Put Mladih Muslimana Street 30/A, Sarajevo, Bosnia; 49 Rue du Lazaret, 67100 Strasbourg, France; Rr. Skenderbeu 76, Lagjja Sefa, Gjakova, Kosovo; Ylli Morina Road, Djakovica, Kosovo; House 267 Street No. 54, Sector F--11/4, Islamabad, Pakistan; Saray Cad. No. 37 B Blok, Yesilyurt Apt. 2/4, Sirinevler, Turkey; P.O. Box 1406, Bridgeview, Illinois 60455, U.S.A.; Afghanistan; Azerbaijan; Bangladesh; Chechnya, Russia; China; Eritrea; Ethiopia; Georgia; India; Ingushetia, Russia; Iraq; Jordan; Kashmir; Lebanon; Sierra Leone; Somalia; Syria; West Bank and Gaza; V.A.T. Number: BE 454,419,759; Federal Employer Identification Number: 36-3804626. (entity).

4. List of Countries Requiring Cooperation with an International Boycott(68 FR 2106 on January 15, 2003)

Commentary:  The U.S. Department of Treasury, in order to comply with the mandate of Section 999(a)(3) of the Internal Revenue Code of 1986, is publishing a current list of countries, which may require participating in, or cooperation with, an international boycott (within the meaning of Section 999(b)(3) of the Internal Revenue Code of 1986).  The list includes Bahrain, Iraq, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, and the Republic of Yemen.

5. Reporting and Procedures Regulations; Cuban Assets Control Regulations:  Publication of Economic Sanctions Enforcement Guidelines(68 FR 4422 on January 29, 2003)

Commentary:  The Office of Foreign Assets Control of the U.S. Department of Treasury has published for public comment an updated version of its internal Economic Sanctions Enforcement Guidelines.  These Guidelines are being published as separate appendices to two parts of the Code of Federal Regulations:  general provisions are being published as a appendix to the Reporting and Procedures Regulations, 31 CFR part 501, and specific provisions focusing on Cuba are being published as an appendix to the Cuban Assets Control Regulations, 31 CFR part 515.  For a detailed description please refer to the published regulations.  Written comments must be received on or before March 31, 2003.

6. Rules Governing Availability of Information(68 FR 6820 on February 11, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control (“OFAC”) is issuing a final rule concerning the disclosure of certain civil penalties information.  OFAC intends to publish information about civil penalties imposed and information settlements on a weekly basis.  If the publication falls on a holiday, or if required by an emergency, publication may be postponed to the following week.  Information to be published includes the identities of entities involved in civil penalty actions by periodic release along with a brief, factual description of the violation or alleged violation (e.g., “unauthorized funds transfer to SDN bank”) and well as whether the entity voluntarily disclosed the violation and whether the penalty enforcement action was settled without a finding that a violation occurred. 

OFAC will release information on all penalties imposed and settlements reached since the end of March 2002.  They intend to release information regarding civil penalty actions on a weekly basis, beginning April 4, 2003.  However, the final rule provides for disclosure on a “routine basis, not less frequently than monthly,” to afford OFAC some regulatory flexibility in preparing and releasing this information in the prescribed format.  In the early implementation stages, OFAC intends to notify affected companies before information pertain to them is made public under this rule.  In an effort to ease security concerns, OFAC does not intend to release any trade secrets or confidential business information it may acquire during the course of a civil penalty action.

7. Additional Designations of Narcotics Trafficker-Related Blocked Persons(68 FR 7168 on February 12, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control has published the names of 23 additional persons and 13 entities whose property and interests in property have been designated as specially designated narcotics traffickers pursuant to Executive Order 12978 of October 25, 1995; is supplementing information concerning two persons and one entity who have been designated as specially designated narcotics traffickers; and is removing the entries for two persons previously listed as specially designated narcotics traffickers. For a listing of the Specially Designated Narcotics Traffickers or SDNTs, the supplemental information on existing SDNTs, and the listing of the two SDNT individuals that are removed from the SDNT list because OFAC has determined that these individuals no longer meet the criteria for designation as SDNTs, please refer to the register notice.

8. Additional Designations of Terrorism-Related Blocked Persons (68 FR 7171 on February 12, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control has published notice of one additional entity whose property and interests in property have been clocked pursuant to Executive Order 13224 of September 23, 2001, pertaining to persons who commit, threaten to commit or support terrorism.  The additional designation is Moroccan Islamic Combatant Group (a.k.a. GICM; a.k.a. Groupe Islamique Combattant Marocain).

9. Authorization of Certain Humanitarian Activities by Nongovernmental Organizations in Iraq and Iran(68 FR 11741 on March 12, 2003)

Commentary: The Office of Foreign Assets Control (“OFAC”) of the U.S. Department of the Treasury has published an interim rule adding new provisions to the Iraqi Sanctions Regulations, 31 CFR Part 575, to facilitate certain humanitarian activities in and around Iraq. These new regulations provide for the establishment of a registration program that would authorize nongovernmental organizations to engage in humanitarian activities in the areas of Iraq not controlled by the Government of Iraq.  They also permit certain humanitarian assessment missions in Iraq.  Related regulations are being added to the Iranian Transactions Regulations, 31 CFR Part 560, authorizing certain activities in Iran by nongovernmental organizations to the extent necessary to support authorized humanitarian activities in Iraq, as well as certain assessment activities in Iran.  Comments on the interim rule are welcome and may address the impact of the Regulations on the submitter’s activities, whether of a commercial, non-commercial or humanitarian nature, as well as changes that would improve the clarity and organization of the Regulations.  The period for submission of comments will close May 12, 2003.

10. Cuban Assets Control Regulations:  Family and Education Travel-Related Transactions, Remittances of Inherited Funds, Activities of Cuban Nationals in the United States, Support for the Cuban People, Humanitarian Projects, and Technical Amendments(68 FR 14141 on March 24, 2003)

Commentary: The Office of Foreign Assets Control of the U.S. Department of the Treasury has published an interim rule amending the Cuban Assets Control Regulations, Part 515 of Chapter V of 31 CFR, to implement the President’s Initiative for a New Cuba and to make certain technical changes and clarifications. On May 20, 2002, President Bush announced his Initiative for a New Cuba to encourage freedom within Cuba, make life better for the Cuban people, and give the Cuban people greater control of their economic and political destiny.  Among other steps, the President announced that the United States would ease restrictions on humanitarian assistance that directly serves the needs of the Cuban people and helps build Cuban civil society and would offer scholarships for Cuban professionals and students who are trying to build independent civil institutions in Cuba. This interim rule amends the Cuban Assets Control Regulations, 31 CFR Part 515 (“Regulations”), to assist in implementing these and other steps in the President’s Initiative for a New Cuba.  These amendments also make certain corrections to and provide certain clarifications of the Regulations.

11. Delegation of Authority to the Director, Office of Foreign Assets Control (68 FR 14743 on March 26, 2003)

Commentary: On March 20, 2003, the Secretary of the Treasury issued Treasury Department Order 100-15 in order to delegate to the Director, Office of Foreign Assets Control, subject to any terms and conditions that the President or Secretary might prescribe, the authority to perform any and all acts incident to the accomplishment or furtherance of an order vesting property as directed in the Executive Order signed by the President on March 20, 2003, “Confiscating and Vesting Certain Iraqi Property”, or by the Secretary pursuant to that order.  In the Executive Order, the President vested in the United States Department of Treasury all right, title, and interest in blocked funds held in the United States in certain accounts in the name of the Government of Iraq, the Central Bank of Iraq, Rafidain Bank, Rasheed Bank, or the State Organization for Marketing Oil.  The President also authorized the Director to take additional steps to carry out the purposes of the order.

12. Additional Designations of Specially-Designated Nationals (“SDNs”) of the Government of Sudan (68 FR 27149 May 19, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control (“OFAC”) has published the names of seven additional persons whose property and interests in property have been blocked pursuant to the Sudanese Sanctions Regulations, 31 CFR Part 538.305(d).  OFAC has also published updated identifying information for two previously-designated Sudanese persons.

The list of seven additional designations are:  National Cigarettes Co. LTD., PO Box 2083, Khartoum, Sudan, and all other branches in Sudan; National Electricity Corporation, PO Box 1380, Khartoum, Sudan; Sudan National Broadcasting Corporation (a.k.a. Sudan Radio & TV Corp.; a.k.a. Sudan T.V. Corporation), PO Box 1094, Omdurman, Sudan; Sudan Tea Company, Ltd., PO Box 1219, Khartoum, Sudan; Sudanese Free Zones and Markets Company (a.k.a. SFZ), PO Box 1789, Khartoum, Sudan; Chad; Saudi Arabia; Turkey; UAE; Sudanese Petroleum Corporation, 7^th Floor, Al Kuwaitiah Building, El Nile Street, Khartoum, Sudan.

The updated identifying information for the two previously-designated persons are:  Kordofan Automobile Company, PO Box 97, Khartoum, Sudan-to-Kordofan Automobile Company (a.k.a. Coptrade Eng and Automobile Services CO LTD.), PO Box 97, Khartoum, Sudan; and Sudan and Distilling Corporation, New Mustafa el Amin Building, Barlaman Avenue, PO Box 511, Khartoum, Sudan-to-Sugar and Distilling Corporation (a.k.a. Sugar and Distilling Industry Corporation), New Mustafa el Amin Building, Barlaman Avenue, PO Box 511, Khartoum, Sudan.

13. Iraqi Sanctions Regulations:  Authorizations of Non-Commercial Funds Transfers and Related Transactions, Activities by the U.S. Government and Its Contractors or Grantees, Privately Financed Humanitarian Transactions, and Certain Exports and Reexports to Iraq (68 FR 28753 on May 27, 2003)

Commentary: The Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury has amended the Iraqi Sanctions Regulations (31 CFR 575), to include four general licenses issued May 7, 2003. Subject to certain conditions, these general licenses authorize the following activities involving Iraq:  non-commercial funds transfers (including family remittances) and related transactions, activities by the U.S. Government and its contractors or grantees, privately financed humanitarian transactions, and certain exports and reexports to Iraq.

In accordance, paragraph (a) of new §575.529 authorize U.S. persons to transfer funds to any person in Iraq for non-commercial humanitarian purposes, including family remittances, provided that no U.S. person may transfer more than $500 per month to any person in Iraq.  Paragraph (b) authorizes U.S. financial institutions to engage in all transactions ordinarily incident to such transfer of funds.  Paragraph (c) provides that this section does not authorize transfers from blocked accounts.

Paragraph (a) of new §575.530 authorized activities by the U.S. Government and its contractors or grantees.  Paragraph (b)(1) contains a restriction on the exportation or reexportation of any goods or technology (including technical data or other information) controlled by the Department of Commerce under the Export Administration Regulations (15 CFR Chapter VII, subchapter C) for exportation to Iraq; any such exports or reexports must be separately authorized by OFAC.  Paragraph (b)(3) describes the circumstances in which some exports or reexports of goods to Iraq must be submitted to the United Nations “661 Committee.”  Paragraph (c) requires that all payments and funds transfers initiated pursuant to this authorization and all related documentation, reference this section number.  Note 1 to Section 575.530 explains that the activities of any subcontractors or other persons who are engaged to perform activities within the scope of the relevant contract or grant are also authorized and subject to the same restrictions.  Note 2 to Section 575.530 provides information concerning the use of U.S. passports for travel to, in or through Iraq.

New §575.531 authorizes all transactions that are necessary to provide privately financed humanitarian support, or to plan or prepare for the provision of humanitarian support, to the Iraqi people in Iraq.  Paragraph (a) includes examples of some of the newly-authorized transactions. The note to paragraph (a) references the definition of “humanitarian support” that appears elsewhere in the Iraqi Sanctions Regulations.  Paragraphs (b) and (c) contain special provisions on the exportation or reexportation of goods or technology to Iraq.  Paragraph (d) provides that this new section does not authorize any transactions with persons on the Department of Defense’s 55-person Watch List.  Paragraph (e) requires that all payments and funds transfers initiated pursuant to this authorization, and all related documentation, reference this section number.  The note to §575.531 provides information concerning the use of U.S. passports for travel to, in, or through Iraq.

New §575.352 authorizes the exportation from the United States or, if subject to U.S. jurisdiction, the exportation or reexportation from a third country to Iraq of any goods, subject to two conditions.  First, the exportation or reexportation of any goods or technology (including technical data or other information) controlled by the Department of Commerce under the Export Administration Regulations for exportation to Iraq, or listed on the United Nations Goods Review List, must be separately authorized by OFAC.  Second, any exportation or reexportation of goods to Iraq must be submitted to the United Nations 661 Committee to the extent and in the manner required under applicable UN Security Council resolutions; for information concerning this second condition, exporters or reexporters should contact the State Department office identified in §575.532.

These new authorizations do not eliminate the need to comply with other provisions of law, including any aviation, financial, or trade requirements of agencies other than OFAC.

OFAC has also amended §575.330, which defines the terms “humanitarian activities,” “humanitarian purposes,” and “humanitarian support.”  OFAC is amending section 575.330 to remove the phrase “[f]or purposes of §§575.527 and 575.529,” so that definition is not limited only to those two sections of the Iraqi Sanctions Regulations.

14. Global Terrorism Sanctions Regulations (68 FR 34196 June 6, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control (“OFAC”) is adding a new Part 594 to Chapter V of 31 CFR to carry out the purposes of Executive Order 13224 of September 23, 2001,  “Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism.” 

Specifically, these regulations are promulgated in furtherance of the sanctions set forth in Executive Order 13224. Section 1 of the order blocks, with certain exceptions, all property and interests in property of foreign persons listed in an Annex to the order and persons designated by the Secretary of State or the Secretary of the Treasury pursuant to criteria set forth in the order. Section 2 of the order prohibits any transaction or dealing by a United States person or within the United States in property or interests in property blocked pursuant to the order, including but not limited to the making or receiving of any contribution of funds, goods, or services to or for the benefit of a person designated in or pursuant to the order. Section 2 of the order also prohibits any transaction by a United States person or within the United States that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in the order, as well as any conspiracy formed to violate such prohibitions. Section 7 of the order authorizes the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Homeland Security and the Attorney General, to take such actions, including the promulgation of rules and regulations, as may be necessary to carry out the purposes of the order. Acting under authority delegated by the Secretary of the Treasury, the Department of the Treasury's Office of Foreign Assets Control (“OFAC”) is promulgating these Global Terrorism Sanctions Regulations, 31 CFR part 594 (the “Regulations”).

Subpart B of the Regulations sets forth the prohibitions contained in sections 1 and 2 of the order. See Sec. 594.201, 594.204, and 594.205. Persons identified in the Annex to the order or designated by or under the authority of the Secretary of State or the Secretary of the Treasury pursuant to the order are referred to throughout the Regulations as “persons whose property or interests in property are blocked pursuant to Sec.  594.201(a).” Their names are or will be published on OFAC's website, announced in the Federal Register and incorporated on an ongoing basis into appendix A to 31 CFR chapter V, which lists persons subject to various sanctions programs administered by OFAC.

Sections 594.202 and 594.203 of subpart B detail the effect of transfers of blocked property in violation of the Regulations and the requirement to hold blocked property in interest-bearing blocked accounts. Section 594.206 of subpart B provides that all expenses incident to the maintenance of blocked physical property shall be the responsibility of the owners and operators of such property, and that such expenses shall not be met from blocked funds. The section further provides that blocked property may, in the discretion of the Director of OFAC, be sold or liquidated and the net proceeds placed in a blocked interest-bearing account in the name of the owner of the property.

Subpart C of the Regulations defines key terms used throughout the Regulations, and subpart D sets forth interpretive sections regarding the general prohibitions contained in subpart B. Certain transactions otherwise prohibited under the Regulations but found to be consistent with U.S. policy are authorized by one of the general licenses contained in subpart E or may be authorized by a specific license issued pursuant to the procedures described in subpart D of part 501 of 31 CFR chapter V.

Subpart F of the Regulations refers to subpart C of part 501 for applicable recordkeeping and reporting requirements. Subpart G of the Regulations describes the civil and criminal penalties applicable to violations of the Regulations, as well as the procedures governing the potential imposition of a civil monetary penalty.

Subpart H of the Regulations refers to subpart D of part 501 for applicable provisions relating to administrative procedures. Subpart I of the Regulations sets forth a Paperwork Reduction Act notice.

15. Iraqi Sanctions Regulations:  Authorization of Certain New Transactions (68 FR 38188 on June 27, 2003)

Commentary: The Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury has amended the Iraqi Sanctions Regulations (31 CFR 575), to include a general license authorizing certain new transactions.  The general license reflects United Nationals Security Council Resolution 1483 and authorizes all transactions otherwise prohibited by subpart B of the Iraqi Sanctions Regulations, with four exceptions:  Accounts and other property that were blocked, certain exports and reexxports to Iraq will continue and require an OFAC license, transactions with certain persons are not authorized and transactions in certain Iraqi cultural property are not authorized.  With those four exceptions, this general license effectively lifts the economic sanctions administered by OFAC with respect to Iraq.  Written comments on this regulation are due no later than August 26, 2003.

16. Alphabetical Listing of Blocked Persons, Specially Designated Nationals, Specially Designated Terrorists, Specially Designated Global Terrorists, Foreign Terrorist Organizations, Specially Designated Narcotics Traffickers; Final Rule (68 FR 38844 on June 30, 2003)

Commentary: The Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury is amending Appendix A to 31 CFR Chapter V to reflect the addition or removal, since it was last published, of the names of individuals and entities subject to the various economic sanctions programs administered by the Treasury’s Office of Foreign Assets Control; and amending the notes to the appendices to 31 CFR Chapter V to reflect the revisions to Appendix A and changes in the status of several programs.  This file is available for download without charge in ASCII and Adobe Acrobat readable (*.PDF) formats at GPO Access, GPO Access supports HTTP, FTP, and Telnet at fedbbs.access.gpo.gov. It may also be accessed by modem dialup at 202/512-1387 followed by typing “/GO/FAC.”  Paper copies of this document can be obtained by calling the Government Printing Office at 202-512-1530.  Additional information concerning the programs of the Office of Foreign Assets Control is available for download from the Office’s Internet Home Page at: http://www.treas.gov/ofac or via FTP at ofacftp.treas.gov.  Facsimiles of information are available through the Office’s 24-hour fax-on-demand service:  call 202/622-0077 using a fax machine, a fax modem, or (within the united States) a touch-tone phone. 

I17. Interpretive Guidance Concerning an Account Entitled “Central Bank of Iraq/Oil Proceeds Receipts Account” at the Federal Reserve Bank of New York (68 FR 40334 July 7, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control (“OFAC”) has determined that an account opened on the books of the Federal Reserve Bank of New York for the purpose of receiving proceeds of Iraqi petroleum contracts is subject to the prohibitions of Executive Order 13303 of May 22, 2003.  Accordingly, any attachment, judgment, decree, lien, execution, garnishment, or other judicial process with respect to that account is prohibited and shall be deemed null and void.

18. Rough Diamonds (Sierra Leone & Liberia) Sanctions Regulations; Rough Diamonds Control Regulations (68 FR 45777 August 4, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control (“OFAC”) has amended and issued regulations to carry out the purposes of Executive Order 13312 of July 29, 2003, which implemented the Clean Diamond Trade Act and the Kimberley Process Certification Scheme for rough diamonds and amended prior Executive Orders that served as the basis for restricting or prohibiting the importation into the United States of rough diamonds from Sierra Leone or Liberia.  Specifically, Part 591 – Rough Diamonds (Sierra Leone & Liberia) Sanctions Regulations is revised to implement Section 3 of Executive Order 13312, which amended Executive Order 13194 to control rough diamonds from Sierra Leone through the KPCS and also amended Executive Order 13213 to remove licensing and other authorities with respect to rough diamonds from Liberia.  As revised, the prohibition in §591.201 is limited in scope to rough diamonds from Liberia and is not subject to possible licensing or other administrative action. A note is added to §591.201 to refer the reader to new Part 592, which now controls the importation into, and the exportation from, the United States of rough diamonds from Sierra Leone and other countries.

19. Foreign Assets Control Regulations; Reporting and Procedures Regulations; Cuban Assets Control Regulations; Publication of Revised Civil Penalties Hearing Regulations; Interim Final Rule and Proposed Rule (68 FR 53640 September 11, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control (“OFAC”) has issued an interim final rule to provide revisions to its civil penalties regulations promulgated pursuant to the Trading with the Enemy Act.  These revisions consolidate substantive changes to the Foreign Assets Control Regulations, and the Cuban Assets Control Regulations, in a new subpart of the Reporting and Procedures Regulations, renamed Reporting, Procedures, and Penalties Regulations. 

Specifically, OFAC has published as revisions to 31 CFR Parts 500, 501, and 515 its civil penalties regulations promulgated pursuant to the Trading with the Enemy Act.  These revisions expand on and clarify existing civil penalties procedures.  OFAC intends that the revised rules for the conduct and review of agency hearings shall be effective for all hearings regardless of whether the request for hearing was made before the effective date of these revisions.

Currently, the only sanctions programs implemented pursuant to the Trading with the Enemy Act, and significantly affected by these changes, are the Foreign Assets Control Regulations (applicable to North Korea an Vietnam), the Cuban Assets Control Regulations (applicable to Cuba), and the Transaction Control Regulations, at 31 CFR 595 (applicable to certain offshore trade in strategic goods with the former soviet Bloc).

OFAC is also making non-substantive conforming amendments to each of the other parts of 31 CFR Chapter V.  Written comments on this interim final rule may be submitted on or before October 14, 2003.

20. Notice of Proposed Rulemaking by Cross-reference to Interim Final Rule; Foreign Assets Control Regulations; Reporting and Procedures Regulations, Cuban Assets Control Regulations: Publication of Revised Civil Penalties Hearing Regulations. (68 FR 53662 September 11, 2003)

Commentary: OFAC is proposing to adopt as a final rule the interim final rule published at 68 FR 53640 that revises its civil penalties regulations promulgated pursuant to the Trading with the Enemy Act.  These revisions consolidate substantive changes to the Foreign Assets Control Regulations, and the Cuban Assets control Regulations, in a new subpart of the Reporting and Procedures Regulations, renamed Reporting, Procedures, and Penalties Regulations.  Conforming changes are made to the other parts of the regulations.  Written comments may be submitted on or before October 14, 2003.

21. Exclusion of Certain Transactions With Respect to Certain Iraqi Property From the Scope of a General License (68 FR 60625 October 23, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control (“OFAC”) has excluded certain transactions from the scope of the general license found in 31 CFR 575.533(a).  This exclusion prohibits any attachment, judgment, decree, lien, execution, garnishment, or other judicial process with respect to certain property consisting of historic and modern books, documents, parchment scrolls, and other items pertaining to the Iraqi Jewish community that have been brought to the United States for restoration and temporary exhibition.

Under the authority of Section 575.502 of the Iraqi Sanctions Regulations, 31 CFR Part 575, except to the extent provided in Section 203(b)(3) of IEEPA (50 U.S.C. 1702(b)(3)), any attachment, judgment, decree, lien, execution, garnishment, or other judicial process with respect to the following property is hereby prohibited and excluded from the transactions authorized in paragraph (a) of Sec.  575.533 of the Regulations: Historic and modern books, documents, parchment scrolls, and other items discovered in early May 2003 in the basement of the Mukhabahrat in Baghdad, most of which pertain to the Jewish community, which will be imported into the United States for temporary exhibition, including restoration necessary thereto, by the National Archives and Records Administration (NARA).

22. Reporting, Procedures and Penalties Regulations; Iraqi Sanctions Regulations; Foreign Terrorist Organizations Sanctions Regulations; Foreign Narcotics Kingpin Sanctions Regulations (68 FR 61359 October 28, 2003)

Commentary: OFAC is issuing a final rule to amend the Reporting, Procedures and Penalties Regulations, Iraqi Sanctions Regulations, Foreign Terrorist Organizations Sanctions Regulations, and Foreign Narcotics Kingpin Sanctions Regulations (collectively, the “Regulations”) to implement the requirement of the Federal Civil Penalties Inflation Adjustment Act of 1990 to adjust for inflation the maximum amounts of the civil monetary penalties (CMPs) that may be assessed under the Regulations. 

OFAC currently is authorized to impose CMPs pursuant to five statutes: The Trading with the Enemy Act (“TWEA”) (50 U.S.C. App. 16); the International Emergency Economics Powers Act (“IEEPA”) (50 U.S.C. 1705); the Iraq Sanctions Act of 1990 (“ISA”) (Pub. L. 101-513, 104 Stat. 2049; 50 U.S.C. 1701 note); the Antiterrorism and Effective Death Penalty Act of 1996 (“AEDPA”) (18 U.S.C. 2339B); and the Foreign Narcotics Kingpin Designation Act (“FNKDA”) (21 U.S.C. 1906). The current maximum CMP for each of the first four statutes was last adjusted or set by statute in 1996. The current maximum CMP under the FNKDA was set when the statute was enacted in 1999 and has not yet been adjusted for inflation.

The maximum TWEA-based CMP per violation is increased to the inflation-adjusted amount of $65,000. The maximum IEEPA-based CMP per violation remains $11,000. The maximum ISA-based CMP per violation is increased to the inflation-adjusted amount of $325,000. The maximum AEDPA-based CMP per violation is increased to the inflation-adjusted amount of $55,000. The maximum FNKDA-based CMP per violation is increased to the inflation-adjusted amount of $1,075,000.

23. Removal of Certain Provisions of the Iraqi Sanctions Regulations; Interpretive Guidance (68 FR 61362 October 28, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control (“OFAC”) is amending the Iraqi Sanctions Regulations to remove provisions that preceded the substantial lifting of economic sanctions in late May 2003.  Specifically, OFAC is removing and reserving previous substantive licensing provisions (sections 575.505, 575.506, 575.507, 575.508, 575.509, 575.510, 575.511, 575.513, 575.514, 575.517, 575.518, 575.519, 575.520, 575.521, 575.522, 575.523, 575.524, 575.525, 575.526, 575.527, 575.528, 575.529, 575.530, 575.531, and 575.532) in an effort to clarify that the operative authorization now appears in Section 575.533.

OFAC also is removing certain definitions that are no longer relevant because they pertain to other regulatory provisions that have been removed. The following outdated definitions are being removed: Section 575.307 (defining “Government of Kuwait”), Section 575.325 (defining “986 Escrow Account” and “United Nations Iraq Account,” both of which refer to a defunct account), and Sections 575.327 and 575.328 (defining “Memorandum of Understanding” and “Guidelines,” both of which refer to outdated procedures for approving certain transactions involving Iraq).

OFAC expects to make other conforming amendments to the Regulations in the near future and welcomes public comments on this endeavor.

OFAC also is publishing interpretive guidance concerning the scope of Section 575.533. A new Section 575.419 describes the circumstances in which U.S. persons may trade in Iraqi commercial or sovereign debt.

24. Authorization for U.S. Financial Institutions to Transfer Certain Claims Against the Government of Iraq (68 FR 65844 November 24, 2003)

Commentary: The Treasury Department’s Office of Foreign Assets Control (“OFAC”) has published an interim final rule amending the Iraqi Sanctions Regulations to incorporate a general license authorizing U.S. financial institutions to transfer certain claims against the Government of Iraq for unpaid loans and other debts to their home offices or to other foreign offices of the same institution.  This new general license was issued by OFAC on September 30, 2003 and is being published as a new Section 757.534 of the Regulations.  Section 575.534 provides a limited authorization for U.S. financial institutes to transfer a category of blocked property and interest in property- i.e. their claims that were booked in the United States as of May 23, 2003, against the Government of Iraq for unpaid loans and other debts to their home offices or to other foreign offices of the same institution.  This new section authorizes only the transfer of claims under the circumstances described and does not authorize the debiting of any blocked account.