FINAL RULES PUBLISHED
IN THE FEDERAL REGISTER DURING 1995
TREASURY DEPARTMENT, OFFICE OF FOREIGN ASSET CONTROL
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. List of Specially Designated Terrorists Who Threaten to Disrupt the Middle East Peace Process (60 FR 5084 on January 25, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has published a list of blocked persons and entities that have been designated by the President as terrorists threatening the Middle East peace process, or have been found to be owned or controlled by or acting for or on behalf of, these terrorists. This final rule implements Executive Order 12947 of January 23, 1995 (published in the Federal Register at 60 FR 5079 on January 25, 1995) entitled Prohibiting Transactions with Terrorists Who Threaten to Disrupt the Middle East Peace Process.
Although the names of many of the organizations and persons listed in this final rule are well known, like Abu Nidal, the list does not include addresses for the persons or organizations at issue. Indeed, it seems highly unlikely that these persons or organizations have bank accounts in the U.S. or are purchasing significant quantities of U.S.-origin products, or that sanctions against a person like Abu Nidal are likely to be effective when the U.S. government cannot even figure out where Abu Nidal sleeps at night. Nevertheless, the list has important symbolic significance, and U.S. companies and their subsidiaries would be well advised to screen transactions against this list, just as they screen against the Table of Denial Orders and list of Specially Designated Nationals.
2. Iraqi Sanctions Regulations; Specially Designated Nationals List (60 FR 6376 on February 1, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has published an expanded list of persons and entities that have been designated as Specially Designated Nationals of Iraq for purposes of the Iraqi Sanctions Regulations.
3. Libyan Sanctions Regulations; Specially Designated Nationals List (60 FR 8300 on February 14, 1995)
Commentary: The Libyan Sanctions Regulations have been amended to include a number of additional organizations and parties as being within the terms Government of Libya and Specially Designated Nationals of Libya.
4. Foreign Assets Control Regulations; North Korean Travel and Financial Transactions; Information and Informational Materials (60 FR 8933 on February 16, 1995)
Commentary: The Treasury Department has amended the Foreign Assets Control Regulations to (1) authorize clearing through the U.S. banking system of U.S. dollar transactions in which North Korea has an interest; (2) authorizing transactions related to the countries’ respective diplomatic missions; (3) removing prior restrictions on travel to North Korea; (4) removing prior restrictions on North Koreans traveling in the U.S.; (5) authorizing the case-by-case unblocking of previously blocked assets; and (6) removing restrictions on reimbursement of travel costs by foreign subsidiaries. It also includes a few other amendments necessary for the regulations to conform to the Foreign Relations Authorization Act of 1994-95.
5. Foreign Assets Control Regulations; Unblocking of Vietnamese Assets (60 FR 12885 on March 9, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has unblocked assets in which Vietnam or a national thereof has an interest, pursuant to the agreement entered into on January 28, 1995 between the U.S. Government and the Government of the Socialist Republic of Vietnam.
6. Deletions from the List of Specially Designated Nationals of Cuba in Panama (60 FR 19447 on April 18, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has issued a list of persons previously designated as "specially designated nationals of Cuba" who now are no longer so designated.
7. Federal Republic of Yugoslavia (Serbia and Montenegro) Sanctions (60 FR 19448 on April 18, 1995)
Commentary: Pursuant to Executive Order 12934, the Treasury Department’s Office of Foreign Assets Control has issued a list of blocked persons and specially designated nationals of the Federal Republic of Yugoslavia (Serbia and Montenegro) who are members of the Bosnia Serb military or paramilitary forces or civilian authorities and who are determined to be acting for or on behalf of the Government of the Federal Republic of Yugoslavia. Property of these persons in the United States or within the possession or control of U.S. Persons is blocked, and most transactions with these persons is prohibited.
8. Changes to the List of Specially Designated Nationals of Cuba (60 FR 33029 on June 26, 1995)
Commentary: The Treasury Department has added four entities as specially designated nationals of Cuba and removed one entity from the list previously published.
9. Foreign Funds Control Regulations, Nicaraguan Trade Control Regulations, South African Transactions Regulations, Soviet Gold Coin Regulations, Panamanian Transactions Regulations, Kuwaiti Assets Control Regulations, Haitian Transactions Regulations; Removal (60 FR 33725 on June 29, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has removed the regulations listed above, which are codified at 31 CFR Parts 520, 540, 545, 555, 565, 570 and 580, because the Executive Orders pursuant to which they were implemented have been terminated, or they serve no further purpose.
10. Compliance with 31 CFR Chapter V with Respect to Fully-Automated Financial Transactions (60 FR 34142 on June 30, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has determined that screening of banking transactions using "interdiction software" is so well developed that it will not treat fully automatic transactions differently from manually processed transactions after September 1, 1995.
11. Regulations Prohibiting Transactions Involving the Shipment of Certain Merchandise Between Foreign Countries; Partial Lifting of Restrictions (60 FR 34143 on June 30, 1995)
Commentary: This final rule lifts prospectively the prohibitions in the Transaction Control Regulations which apply to offshore trade in strategic goods formerly under COCOM controls.
12. Federal Republic of Yugoslavia (Serbia and Montenegro) Sanctions Regulations; Bosnian Serb Sanctions (60 FR 34144 on June 30, 1995)
Commentary: This final rule extends the scope of the Federal Republic of Yugoslavia (Serbia and Montenegro) Sanctions Regulations to apply equally to those areas of Bosnia and Herzegovina which are under the control of the Bosnian Serb forces and to entities worldwide that are owned or controlled by such forces. Determining the precise scope of territory and institutions "controlled" by the Bosnian Serbs is sure to be a challenge to even the most cleverly administered corporate export control program!
13. Libyan Sanctions Regulations; Specially Designated Nationals List (60 FR 37940 on July 25, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has amended the Libyan Sanctions Regulations adding three hotels in Malta to the list of ogrganizations deemded to be within the term "Government of Libya".
14. Cuban Assets Control Regulations; Information and Informational Materials (60 FR 39255 on August 2, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has amended the Cuban Assets Control Regulations to expand the scope of information and informational materials authorized for export to Cuba in accordance with applicable provisions of the Trading with the Enemy Act.
15. Implementation of Executive Order No. 12959 with Respect to Iran (60 FR 40881 on August 10, 1995)
Commentary: The Treasury Department has published its 12 interim General Licenses and 2 interim General Orders promulgated pursuant to Executive Order 12959 in one convenient notice.
16. List of Specially Designated Terrorists Who Threaten to Disrupt the Middle East Peace Process; Additional Name (60 FR 41152 on August 11, 1995)
Commentary: Mohammed Abd El-hamid Khalil Salah has been added to the list of Specially Designated Terrorists by the Treasury Department’s Office of Foreign Assets Control.
17. Electronically-Available Information Sources on Economic Sanctions Programs (60 FR 41909 on August 14, 1995)
Commentary: This notice contains a useful compilation of web and other sites where one can access information describing the Treasury Department’s sanctions programs.
18. List of Specially Designated Terrorists Who Threaten to Disrupt the Middle East Peace Process; Additional Name (60 FR 44933 on August 29, 1995)
Commentary: Mousa Mohammed Abu Marzook has been added to the list of Specially Designated Terrorists by the Treasury Department’s Office of Foreign Assets Control.
19. Iranian Transactions Regulations; Implementation of Executive Orders 12957 and 12959 (60 FR 47061)
Commentary: The Treasury Department’s Office of Foreign Assets Control has amended the Iranian Transactions Regulations (31 CFR Part 560) to implement President Clinton’s declaration of national emergency and imposition of sanctions against Iran. These regulations provide important guidance with respect to the scope and effect of Executive Order 12957 of March 15, 1995 (60 FR 14615 of March 17, 1995) and Executive Order 12959 of May 6, 1995 (60 FR 24757 of May 9, 1995). Some of the more important points are summarized below.
Section 560.204 prohibits exportation from the United States of any goods, technology or services to Iran.
Section 560.205 prohibits most reexportation of U.S.-origin goods and technologies to Iran. However, there are three important exceptions for (1) non-licensable U.S.-origin goods exported prior to May 7, 1995, (2) U.S.-origin goods which have been "substantially transformed" outside of the United States, and (3) U.S.-origin goods which represent less than 10% by value of a foreign-made end-product.
Section 560.206 prohibits United States persons from providing services such as financing or brokerage relating to Iranian origin goods and services.
Section 560.207 prohibits new investments by United States persons in Iran.
Section 560.208 prohibits the "approval or facilitation" by a United States person of a transaction by an entity which it owns or controls, if the United States person would be prohibited from undertaking the transaction. Unfortunately, the regulations do not define what might constitute "approval or facilitation".
Section 560.209 prohibits United States persons from entering into contracts for the development of Iran’s petroleum resources, of the sort which Conoco attempted last March, giving rise to Executive Order 12957.
20. Cuban Assets Control Regulations; News Organizations; Intellectual Property (60 FR 54194 on October 20, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has amended the Cuban Assets Control Regulations (31 CFR Part 515) to implement President Clinton’s announcement of October 6, 1995, in several respects. The scope of travel for "research" has been expanded to include free-lance journalism and similar activities (but not market research!). United States companies are authorized for the first time to receive payments related to protection of intellectual property, like patents, trademarks and copyrights in which the Government of Cuba has an interest. Also, new opportunities for educational activities are authorized. In addition, a new general license authorizes one "humanitarian" visit to Cuba each year. The regulation also includes several technical amendments to the Cuban embargo regime.
21. List of Specially Designated Narcotics Traffickers (60 FR 54582 on October 24, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has issued a list of 80 blocked persons who have been designated by the President for their significant role in international narcotics trafficking centered in Columbia, implementing Executive Order 12978 of October 21, 1995, "Blocking Assets and Prohibiting Transactions with Significant Narcotics Traffickers".
22. Middle East Peace Process; Specially Designated Terrorists Who Threaten to Disrupt; List (60 FR 58435 on November 27, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has added a number of additional names to the list of terrorists who threaten to disrupt the Middle East peace process.
23. Colombia; List of Specially Designated Narcotics Traffickers (60 FR 61288 on November 29, 1995)
Commentary: The Treasury Department’s Office of Foreign Assets Control has added three new individuals and one new entity to the list of persons and companies embargoed on the List of Specially Designated Narcotics Traffickers.