FINAL
RULES PUBLISHED IN THE FEDERAL REGISTER DURING 1991
AMENDING THE FOREIGN ASSET CONTROL REGULATIONS
(31 CFR Part 500 et seq.)
NOTE: CHANGES TO THE FOREIGN ASSET CONTROL REGULATIONS LISTED BELOW ARE NUMBERED CONSECUTIVELY, BEGINNING IN JANUARY OF THE NEW YEAR.
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1. Iraqi Sanctions Regulations (56 FR 2112 on January 18, 1991)
Commentary: Pursuant to Executive Orders and authority set forth in the International Emergency Economic Powers Act, the President last August placed an embargo covering not only exports to Iraq, but also virtually all transactions by U.S. companies and the foreign subsidiaries with Iraq. The General Licenses issued informally by the Treasury Department's Office of Foreign Assets Control last August shortly after the imposition of the embargo have been codified and are generally still applicable, although three have been either amended or revoked. Some aspects of these regulations can be expected to continue after cessation of hostilities in the Gulf.
Companion regulations governing transactions with Kuwait were published as a new Part 570 of the FACR in the Federal Register on November 30, 1990 (55 FR 49856).
2. Applications for Humanitarian Assistance to Vietnam and Cambodia (56 FR 4671 on February 5, 1991)
Commentary: The Office of Foreign Assets Control ("OFAC") published a notice (not a final rule) announcing the expedited processing of licenses for nongovernmental organizations wishing to donate humanitarian assistance to Vietnam and Cambodia. Such licenses actually have been available for some time, both from OFAC and from the Department of Commerce. This notice was published to indicate hopes for progress in the peace talks and on the POW/MIA issue, which are the principal obstacles to the removal of the embargo. Applications for export licenses authorizing sales of goods still are not being approved either by OFAC or by the Department of Commerce at this time, although press reports indicate that many U.S. companies are beginning to make preliminary marketing efforts in these countries.
3. Amendments to the Transaction Control Regulations (56 FR 5350 on February 11, 1991)
Commentary: OFAC amended the regulations to authorize U.S. financial institutions to establish direct correspondent banking relationships with Vietnamese banks for the sole purpose of facilitating remittance of funds to close relatives in Vietnam.
4. Kuwaiti Assets Control Regulations (56 FR 5351 on February 11, 1991)
Commentary: The Kuwaiti Asset Control Regulations ("KACR"), published on November 30, 1990, were amended to delete certain inaccurate references, to clarify that a blocked account must be maintained in a U.S. financial institution, to modify the reporting requirements, and to expand the description of penalties that apply to violations of the KACR.
5. Iraqi Sanctions Regulations; Census of Blocked Iraqi Government Assets and Claims Against Iraq and Iraqi Government Entities (56 FR 5636 on February 11, 1991)
Commentary: Presumably as a prelude to the establishment of a claims tribunal after the conclusion of the Gulf War, OFAC has established reporting procedures for identifying blocked Iraqi assets and claims against the Government of Iraq by U.S. Persons. Although reporting is mandatory, and the stated deadline is March 1, 1991, the preamble to the final rule indicates that there may be a secondary filing opportunity, if a claims tribunal is formally established.
6. Iranian Assets Control Regulations (56 FR 6546 on February 15, 1991)
Commentary: Last November, the Iran-U.S. Claims Tribunal in The Hague ruled that the U.S. had violated the Algiers Accords by permitting U.S. account parties to hold standby letters of credit issued in favor of Iranian beneficiaries in designated accounts, rather than transferring the funds to the Government of Iran. This final rule restores the financial position of Iran to that which existed prior to November 14, 1979, with a few, narrow exceptions.
7. Kuwaiti Assets Control Regulations (56 FR 9403 on March 6, 1991)
Commentary: This notice provides that the Office of Foreign Assets Control has issued licenses permitting seven major Kuwaiti banks to settle obligations which arose prior to the Iraqi invasion on August 2, 1990.
8. Kuwaiti Assets Control Regulations (56 FR 10356 on March 11, 1991)
Commentary: This final rule amends the Kuwaiti Assets Control Regulations to permit certain trade, travel, transportation and transfer transactions with respect to Kuwait, in light of the liberation of Kuwait from Iraqi occupation.
9. Iranian Transactions Regulations (56 FR 11100 on March 15, 1991)
Commentary: This final rule amends the Iranian Transactions Regulations to permit case-by-case licensing of the importation of Iranian oil when related to resolution or settlement of cases before the Iran-U.S. Claims Tribunal in The Hague.
10. Kuwaiti Assets Control Regulations (56 FR 12450 on March 26, 1991)
Commentary: This final rule amends the Kuwaiti Assets Control Regulations to permit virtually all transactions with respect to blocked Government of Kuwait property on or after March 25, 1991.
11. Cuban Assets Control Regulations (56 FR 13283 on April 1, 1991)
Commentary: This final rule establishes a general license authorizing importation into the United States of paintings and drawings by Cuban nationals. Note, however, that this would not authorize purchase or importation of a painting or drawing by a non-Cuban artist in which the Government of Cuba or a Cuban national may have an interest -- such as a French impressionist painting held by the Cuban National Museum.
12. Iraqi Sanctions Regulations (56 FR 13584 on April 3, 1991)
Commentary: Pursuant to authority contained in the Iraqi sanctions regulations, the Office of Foreign Assets Control has designated certain companies and individuals as Specially Designated Nationals of Iraq. All transactions with these entities require validated licenses issued by OFAC. Most of these individuals and companies are domiciled in Europe and the Middle East. We recommend that exporters update their Table of Denial Orders to include these entities, many of which operate as "front" companies for the Government of Iraq with respect to purchases of defense articles and sensitive dual use commodities.
13. Foreign Assets Control Regulations (56 FR 20349 on May 3, 1991)
Commentary: This final rule authorizes an expanded scope of remittances from the United States to family members who remained in Vietnam and Cambodia. The regulations also were amended to permit U.S. banks to obtain licenses which might facilitate such remittances to Cambodia, through the establishment of correspondent banking relationships. (Such relationships with Vietnamese banks have been previously authorized.)
14. Libyan Sanctions Regulations (56 FR 20540 on May 6, 1991)
Commentary: The Office of Foreign Assets Control has designated certain companies and individuals as Specially Designated Nationals of Libya. All transactions with these entities require validated licenses issued by OFAC. Most of these individuals and companies are domiciled in Europe and the Middle East. We recommend that exporters update their Table of Denial Orders to include these entities, many of which operate as "front" companies for the Government of Libya with respect to purchases of defense articles and sensitive dual use commodities.
15. Kuwaiti Assets Control Regulations (56 FR 26034 on June 6, 1991)
Commentary: This final rule authorizes transactions involving property in which the seven blocked Kuwaiti banks have an interest, and eliminates all reporting requirements relating thereto. It effectively eliminates all blockage of assets for the banks, and authorizes all transactions between such banks and the U.S.
16. Iraqi Sanctions Regulations (56 FR 29120 on June 25, 1991)
Commentary: The Office of Foreign Assets Control has designated certain companies and individuals as Specially Designated Nationals of Iraq. All transactions with these entities require validated licenses issued by OFAC. This rule adds seven names to and removes two names from the list of specially designated nationals which was published originally on April 3, 1991 (56 FR 13584). Most of these individuals and companies are domiciled in Europe and the Middle East. We recommend that exporters update their Table of Denial Orders to include these entities, many of which operate as "front" companies for the Government of Iraq with respect to purchases of defense articles and sensitive dual use commodities.
17. Kuwaiti Assets Control Regulations (56 FR 29308 on June 26, 1991)
Commentary: This Final Rule merely makes an editorial correction to the Final Rule published on June 6, described above.
18. South African Transactions Regulations (56 FR 32056 on July 12, 1991)
Commentary: On July 10, 1991, President Bush issued Executive Order 12769 indicating that the Government of South Africa had taken steps specified by the Congress in the Comprehensive Anti-Apartheid Act which justified removal of certain sanctions. This Final Rule implements the Executive Order, by lifting sanctions limiting certain imports from, and investments in, the Republic of South Africa. Note, however, that the embargo on exports of commodities and technical data to South African military/police entities and of computers and software to South African apartheid enforcing entities under the Export Administration Regulations remain in effect, and are likely to be maintained in force until the lifting of the long-standing United Nations embargo.
19. Libyan Sanctions Regulations (56 FR 37156 on August 5, 1991)
Commentary: The Libyan Sanctions Regulations have been amended to expand the list of "specially designated nationals" to whom the U.S. embargo applies, notwithstanding the fact that many such "nationals" are resident in third countries. We recommend that exporters update their Tables of Denial Orders to include these entities.
20. Iranian Asset Control Regulations (56 FR 40552 on August 15, 1991)
Commentary: Reflecting changes in the status of litigation brought by the Government of Iran to recover assets from the family of the late Shah of Iran, Mohammed Reza Pahlavi, the Office of Foreign Assets Control has amended the Iranian Assets Control Regulations to remove reporting requirements with respect to property and assets of Ashraf Pahlavi and adding reporting requirements with respect to Shams Pahlavi.
21. Transaction Control and Foreign Funds Control Regulations (56 FR 45895 on September 9, 1991)
Commentary: These amendments to the Transaction Control Regulations ("TCR") and Foreign Funds Control Regulations (31 CFR Sections 505 and 520) include the deletion of all references to the German Democratic Republic and Danzig in recognition of their absorption into the Federal Republic of Germany and Poland, respectively, and adds Australia and Spain to the list of COCOM countries eligible for certain transactions under a TCR General License.
22. Iraqi Sanctions Regulations (56 FR 48104 on September 24, 1991)
Commentary: Two more entities have been added to the list of "Specially Designated Nationals of the Government of Iraq" in Appendix A of 31 CFR Part 575: Arab Trans Trade Co. and Unimas Shipping, both of which are located in Alexandria, Egypt.
23. Cuban Asset Control Regulations (56 FR 49846 on October 2, 1991)
Commentary: These amendments, which are designed to reduce the flow of dollars entering the Cuban economy from the United States and make life even more difficult for the Castro government, prohibits Cuban nationals from carrying non-Cuban currency into Cuba, and limits the dollars that can be spent by U.S. persons in connection with travel to Cuba or travel by Cuban nationals to the U.S.
24. Iranian Transactions Regulations (56 FR 61373 on December 3, 1991)
Commentary: This final rule clarifies the regulations governing the importation of carpets from Iran, both for purposes of resale in the United States and as household effects.
25. Foreign Assets Control Regulations (56 FR 65992 on December 20, 1991)
Commentary: This final rule authorizes U.S. travel service providers to engage in a limited scope of activities in connection with tours and travel to Vietnam. More importantly, however, for U.S. business interests in Vietnam, this rule clarifies that foreign nationals employed by foreign subsidiaries of U.S. companies are subject to the $ 200 per day limit on reimbursable expenses.
26. Libyan Sanctions Regulations (56 FR 65993 on December 20, 1991)
Commentary: This rule removes one name, that of Dr. Ralf Wojtek of Germany, from the List of Specially Designated Nationals of the Government of Libya, who are presumed to be acting on behalf of the Government of Libya and therefore subject to transaction controls.