Global Terrorism Sanctions Regulations; Terrorism Sanctions Regulations; Foreign Terrorist Organizations Sanctions Regulations, 27199-27203 [06-4351]
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Federal Register / Vol. 71, No. 90 / Wednesday, May 10, 2006 / Rules and Regulations
(1) Tier I—$750;
(2) Tier II—$300;
(3) Tier III—$200; and
(4) Tier IV—$90.
(b) If the actual expenses incurred for
damage are greater than the value
associated with the tier based on the
location of the stand, the applicant may
submit documentation to FSA to request
the stand be placed in the next lowernumbered tier which represents a
greater level of loss and a higher
payment rate. Regardless of the
expenses incurred the stand can only be
placed in the next lower-numbered tier.
Subpart G—Aquaculture Program
§ 760.601
Funds availability.
FSA will provide block grants to the
states of Alabama, Florida, Louisiana,
Mississippi, North Carolina and Texas
where aquaculture was adversely
affected by the hurricanes as set forth in
§ 760.201 for those States. Producers in
eligible counties in those states who
raise aquaculture species in a controlled
environment as part of a farming
operation and who have not received
assistance under other disaster programs
for the same aquaculture losses may be
eligible for these funds. Funds provided
by a State to a farming operation under
such a grant shall not exceed $80,000.
Signed in Washington, DC, May 2, 2006.
Thomas B. Hofeller,
Acting Administrator, Farm Service Agency.
[FR Doc. 06–4278 Filed 5–9–06; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 594, 595 and 597
Global Terrorism Sanctions
Regulations; Terrorism Sanctions
Regulations; Foreign Terrorist
Organizations Sanctions Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
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AGENCY:
SUMMARY: The Treasury Department’s
Office of Foreign Assets Control
(‘‘OFAC’’) is revising the Global
Terrorism Sanctions Regulations, the
Terrorism Sanctions Regulations, and
the Foreign Terrorist Organizations
Sanctions Regulations to add general
licenses authorizing certain transactions
with the Palestinian Authority (‘‘PA’’).
DATE: Effective May 10, 2006.
FOR FURTHER INFORMATION CONTACT:
Assistant Director of Compliance,
Outreach & Implementation, tel.: 202/
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14:26 May 09, 2006
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622–2490, Assistant Director of
Licensing, tel.: 202/622–2480, Assistant
Director of Policy, tel.: 202/622–4855,
Office of Foreign Assets Control, or
Chief Counsel (Foreign Assets Control),
tel.: 202/622–2410, Office of the General
Counsel, Department of the Treasury,
Washington, DC 20220 (not toll free
numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional
information concerning the programs of
the Office of Foreign Assets Control are
available for downloading from the
Office’s Internet Home Page: https://
www.treas.gov/ofac, or via FTP at
ofacftp.treas.gov.
Background
OFAC administers three sanctions
programs with respect to terrorists and
terrorist organizations. The Terrorism
Sanctions Regulations, 31 CFR part 595
(‘‘TSR’’), implement Executive Order
12947 of January 23, 1995, in which the
President declared a national emergency
with respect to ‘‘grave acts of violence
committed by foreign terrorists that
disrupt the Middle East peace process’.’’
The Global Terrorism Sanctions
Regulations, 31 CFR part 594 (‘‘GTSR’’),
implement Executive Order 13224 of
September 23, 2001, in which the
President declared an emergency more
generally with respect to ‘‘grave acts of
terrorism and threats of terrorism
committed by foreign terrorists’.’’ The
Foreign Terrorist Organizations
Sanctions Regulations, 31 CFR part 597
(‘‘FTOSR’’), implement provisions of the
Antiterrorism and Effective Death
Penalty Act of 1996 (‘‘AEDPA’’).
HAMAS, members of which now form
the majority party within the Palestinian
Legislative Council and hold positions
of authority within the government
including the position of Prime
Minister, is a target of each of these
sanctions programs, resulting in the
blocking of any property and interests in
property of HAMAS that are in the
United States or hereafter come within
the United States, or that are in or
hereafter come within the possession or
control of a United States person. These
restrictions prohibit U.S. persons from
dealing in property or interests in
property of HAMAS. OFAC has
determined that, as a result of the recent
elections, HAMAS has a property
interest in the transactions of the
Palestinian Authority. Accordingly,
pursuant to the TSR, the GTSR and the
FTOSR, U.S. persons are prohibited
from engaging in transactions with the
Palestinian Authority unless authorized.
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27199
Notwithstanding the prohibitions,
OFAC, consistent with current foreign
policy, is authorizing U.S. persons to
engage in certain transactions in which
the Palestinian Authority may have an
interest. It should be noted that the
prohibitions involving the Palestinian
Authority do not bar all transactions
involving individuals and entities in
Palestinian territory.
Executive Order 12866, Administrative
Procedure Act, Regulatory Flexibility
Act, and Paperwork Reduction Act
Because the regulations at issue
involve a foreign affairs function, the
provisions of Executive Order 12866
and the Administrative Procedure Act (5
U.S.C. 553) 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.
The Paperwork Reduction Act does
not apply because this rule does not
impose information collection
requirements that would require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501 et seq.
List of Subjects
31 CFR Part 594
Administrative practice and
procedure, Banks, Banking, Penalties,
Reporting and recordkeeping
requirements, Terrorism.
31 CFR Part 595
Administrative practice and
procedure, Banks, Banking, Currency,
Foreign investments in United States,
Penalties, Reporting and recordkeeping
requirements, Securities, Terrorism.
31 CFR Part 597
Administrative practice and
procedure, Banks, Banking, Currency,
Foreign investments in United States,
Penalties, Reporting and recordkeeping
requirements, Securities, Terrorism.
I For the reasons set forth in the
preamble, and under the authority of
IEEPA and AEDPA, 31 CFR chapter V is
amended by amending the
interpretations and licenses provisions
in 31 CFR parts 594, 595, and 597 as set
forth below.
PART 594—GLOBAL TERRORISM
SANCTIONS REGULATIONS
1. The authority citation for part 594
continues to read as follows:
I
Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 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); E.O. 13224, 66 FR 49079,
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September 25, 2001; E.O. 13268, 67 FR
44751, July 3, 2002; 3 CFR, 2002 Comp., p.
240; E.O. 13284, 64 FR 4075, January 28,
2003.
Secretariat, specifically including,
among others, the World Bank, the
International Monetary Fund, the World
Food Programme, and the World Health
Organization.
I 3. Add a new § 594.511 to subpart E
to read as follows:
Subpart D—Interpretations
1. Add a new § 594.411 to subpart D
to read as follows:
I
§ 594.411
Palestinian Authority.
Following the January 2006
Palestinian elections, Hamas, a
designated terrorist entity whose
property and interests in property are
blocked pursuant to § 594.201, has been
determined to have a property interest
in the transactions of the Palestinian
Authority. Accordingly, pursuant to
§§ 594.201 and 594.204, U.S. persons
are prohibited from engaging in
transactions with the Palestinian
Authority unless authorized. Certain
transactions with the Palestinian
Authority may be authorized by license,
see subpart E of this part.
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
2. Add a new § 594.510 to subpart E
to read as follows:
I
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(a) Effective April 12, 2006, all
transactions and activities with the
Palestinian Authority otherwise
prohibited under this part that are for
the conduct of the official business of
the United Nations are authorized,
provided that no payment pursuant to
this license may involve a debit to an
account of the Palestinian Authority on
the books of a U.S. financial institution
or to any account blocked pursuant to
this part.
(b) Effective April 12, 2006, U.S.
persons who are employees of the
governments of states bordering the
West Bank or Gaza are authorized to
engage in all transactions and activities
outside of the United States with the
Palestinian Authority that are otherwise
prohibited under this part in support of
the U.S. persons’ official duties,
provided that no payment pursuant to
this license may involve a debit to an
account of the Palestinian Authority on
the books of a U.S. financial institution
or to any account blocked pursuant to
this part.
(c) For purposes of this section only,
the term ‘‘United Nations’’ means its
principal organs, including funds,
bodies, commissions, agencies,
departments and other entities of the
Security Council, General Assembly,
Economic and Social Council and
17:36 May 09, 2006
Jkt 208001
Effective April 12, 2006, U.S. persons
are authorized to engage in all
transactions with the Palestinian
Authority otherwise prohibited under
this part that are ordinarily incident to
their travel to or from, or employment,
residence or personal maintenance
within, the jurisdiction of the
Palestinian Authority, including, but
not limited to, receipt of salaries,
payment of living expenses and
acquisition of goods or services for
personal use. Nothing in this license
authorizes any debit to an account of the
Palestinian Authority on the books of a
U.S. financial institution or to any
account blocked pursuant to this part.
I 4. Add a new § 594.512 to subpart E
to read as follows:
§ 594.512 Payment of taxes and incidental
fees to the Palestinian Authority.
§ 594.510 Official activities of certain
international organizations; U.S. person
employees of certain governments.
VerDate Aug<31>2005
§ 594.511 Travel, employment, residence
and maintenance transactions with the
Palestinian Authority.
Effective April 12, 2006, U.S. persons
are authorized to pay taxes or fees to,
and purchase or receive permits or
public utility services from, the
Palestinian Authority where such
transactions are necessary and
ordinarily incident to such persons’
day-to-day operations. Nothing in this
license authorizes a debit to an account
of the Palestinian Authority on the
books of a U.S. financial institution or
to any account blocked pursuant to this
part.
I 5. Add a new § 594.513 to subpart E
to read as follows:
§ 594.513 Transactions with entities under
the control of the Palestinian President and
certain other entities.
(a) Effective April 12, 2006, U.S.
persons are authorized to engage in all
transactions otherwise prohibited under
this part with the following entities and
individuals:
(1) The Palestinian Authority
Presidency, including only the Office of
the President, Presidential Security,
General Intelligence Apparatus,
Governors and Governorate staff, the
Attorney General’s Office, the Palestine
Investment Fund (PIF), the Border
Crossings Administration, and the
Palestine Broadcasting Corporation
(including the Voice of Palestine, Wafa
News Agency, and the General Public
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Information Agency/State Information
Services);
(2) The Palestinian Judiciary,
including the Higher Judicial Council;
(3) Members of the Palestinian
Legislative Council (PLC) who were not
elected to the PLC on the party slate of
Hamas or any other Foreign Terrorist
Organization (FTO), Specially
Designated Terrorist (SDT), or Specially
Designated Global Terrorist (SDGT); and
(4) The following independent
agencies: The Central Elections
Commission; the Independent Citizens
Rights Commission; the General Audit
Authority/External Audit Agency; and
the Palestinian Monetary Authority.
(b) Effective April 12, 2006, U.S.
financial institutions are authorized to
reject transactions with members of the
Palestinian Legislative Council (PLC)
who were elected to the PLC on the
party slate of Hamas or any other
Foreign Terrorist Organization (FTO),
Specially Designated Terrorist (SDT), or
Specially Designated Global Terrorist
(SDGT), provided that any such
individuals are not named on OFAC’s
list of Specially Designated Nationals
and Blocked Persons.
(c) Nothing in this license authorizes
a debit to an account of the Palestinian
Authority on the books of a U.S.
financial institution or to any account
blocked pursuant to this part.
I 6. Add a new § 594.514 to subpart E
to read as follows:
§ 594.514 Concluding activities with the
Palestinian Authority.
Effective April 12, 2006, all
transactions and activities with the
Palestinian Authority otherwise
prohibited under this part are
authorized through May 12, 2006,
provided that they are necessary to
conclude ongoing contracts or programs
with the Palestinian Authority, and
further provided that no payment
pursuant to this license may involve a
debit to an account of the Palestinian
Authority on the books of a U.S.
financial institution or to any account
blocked pursuant to this part.
I 7. Add a new § 594.515 to subpart E
to read as follows:
§ 594.515
In-kind donations of medicine.
Effective April 12, 2006,
nongovernmental organizations that are
U.S. persons are authorized to provide
in-kind donations of medicine to the
Palestinian Authority Ministry of
Health, provided that such donations
are strictly for distribution in the West
Bank or Gaza and not intended for
resale, and provided further that no
payment pursuant to this license may
involve a debit to an account of the
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Federal Register / Vol. 71, No. 90 / Wednesday, May 10, 2006 / Rules and Regulations
Palestinian Authority on the books of a
U.S. financial institution or to any
account blocked pursuant to this part.
PART 595—TERRORISM SANCTIONS
REGULATIONS
1. The authority citation for part 595
continues to read as follows:
I
Authority: 3 U.S.C. 301; 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);
E.O. 12947, 60 FR 5079; 3 CFR, 1995 Comp.,
p. 319.
Subpart D—Interpretations
1. Add a new § 595.409 to subpart D
to read as follows:
I
§ 595.409
§ 595.509 Travel, employment, residence
and maintenance transactions with the
Palestinian Authority.
Palestinian Authority.
Following the January 2006
Palestinian elections, Hamas, a
designated terrorist entity whose
property and interests in property are
blocked pursuant to §§ 595.201 and
595.204, has been determined to have a
property interest in the transactions of
the Palestinian Authority. Accordingly,
pursuant to §§ 595.201 and 595.204,
U.S. persons are prohibited from
engaging in transactions with the
Palestinian Authority unless authorized.
Certain transactions with the Palestinian
Authority may be authorized by license,
see subpart E of this part.
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
2. Add a new § 595.508 to subpart E
to read as follows:
I
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(a) Effective April 12, 2006, all
transactions and activities with the
Palestinian Authority otherwise
prohibited under this part that are for
the conduct of the official business of
the United Nations are authorized,
provided that no payment pursuant to
this license may involve a debit to an
account of the Palestinian Authority on
the books of a U.S. financial institution
or to any account blocked pursuant to
this part.
(b) Effective April 12, 2006, U.S.
persons who are employees of the
governments of states bordering the
West Bank or Gaza are authorized to
engage in all transactions and activities
outside of the United States with the
Palestinian Authority that are otherwise
prohibited under this part in support of
the U.S. persons’ official duties,
provided that no payment pursuant to
this license may involve a debit to an
account of the Palestinian Authority on
the books of a U.S. financial institution
14:26 May 09, 2006
Jkt 208001
Effective April 12, 2006, U.S. persons
are authorized to engage in all
transactions with the Palestinian
Authority otherwise prohibited under
this part that are ordinarily incident to
their travel to or from, or employment,
residence or personal maintenance
within, the jurisdiction of the
Palestinian Authority, including, but
not limited to, receipt of salaries,
payment of living expenses and
acquisition of goods or services for
personal use. Nothing in this license
authorizes any debit to an account of the
Palestinian Authority on the books of a
U.S. financial institution or to any
account blocked pursuant to this part.
I 4. Add a new § 595.510 to subpart E
to read as follows:
§ 595.510 Payment of taxes and incidental
fees to the Palestinian Authority.
§ 595.508 Official activities of certain
international organizations; U.S. person
employees of certain governments.
VerDate Aug<31>2005
or to any account blocked pursuant to
this part.
(c) For purposes of this section only,
the term ‘‘United Nations’’ means its
principal organs, including funds,
bodies, commissions, agencies,
departments and other entities of the
Security Council, General Assembly,
Economic and Social Council and
Secretariat, specifically including,
among others, the World Bank, the
International Monetary Fund, the World
Food Programme, and the World Health
Organization.
I 3. Add a new § 595.509 to subpart E
to read as follows:
Effective April 12, 2006, U.S. persons
are authorized to pay taxes or fees to,
and purchase or receive permits or
public utility services from, the
Palestinian Authority where such
transactions are necessary and
ordinarily incident to such persons’
day-to-day operations. Nothing in this
license authorizes a debit to an account
of the Palestinian Authority on the
books of a U.S. financial institution or
to any account blocked pursuant to this
part.
I 5. Add a new § 595.511 to subpart E
to read as follows:
§ 595.511 Transactions with entities under
the control of the Palestinian President and
certain other entities.
(a) Effective April 12, 2006, U.S.
persons are authorized to engage in all
transactions otherwise prohibited under
this part with the following entities and
individuals:
(1) The Palestinian Authority
Presidency, including only the Office of
the President, Presidential Security,
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27201
General Intelligence Apparatus,
Governors and Governorate staff, the
Attorney General’s Office, the Palestine
Investment Fund (PIF), the Border
Crossings Administration, and the
Palestine Broadcasting Corporation
(including the Voice of Palestine, Wafa
News Agency, and the General Public
Information Agency/State Information
Services);
(2) The Palestinian Judiciary,
including the Higher Judicial Council;
(3) Members of the Palestinian
Legislative Council (PLC) who were not
elected to the PLC on the party slate of
Hamas or any other Foreign Terrorist
Organization (FTO), Specially
Designated Terrorist (SDT), or Specially
Designated Global Terrorist (SDGT); and
(4) The following independent
agencies: The Central Elections
Commission; the Independent Citizens
Rights Commission; the General Audit
Authority/External Audit Agency; and
the Palestinian Monetary Authority.
(b) Effective April 12, 2006, U.S.
financial institutions are authorized to
reject transactions with members of the
Palestinian Legislative Council (PLC)
who were elected to the PLC on the
party slate of Hamas or any other
Foreign Terrorist Organization (FTO),
Specially Designated Terrorist (SDT), or
Specially Designated Global Terrorist
(SDGT), provided that any such
individuals are not named on OFAC’s
list of Specially Designated Nationals
and Blocked Persons.
(c) Nothing in this license authorizes
a debit to an account of the Palestinian
Authority on the books of a U.S.
financial institution or to any account
blocked pursuant to this part.
I 6. Add a new § 595.512 to subpart E
to read as follows:
§ 595.512 Concluding activities with the
Palestinian Authority.
Effective April 12, 2006, all
transactions and activities with the
Palestinian Authority otherwise
prohibited under this part are
authorized through May 12, 2006,
provided that they are necessary to
conclude ongoing contracts or programs
with the Palestinian Authority, and
further provided that no payment
pursuant to this license may involve a
debit to an account of the Palestinian
Authority on the books of a U.S.
financial institution or to any account
blocked pursuant to this part.
I 7. Add a new § 595.513 to subpart E
to read as follows:
§ 595.513
In-kind donations of medicine.
Effective April 12, 2006,
nongovernmental organizations that are
U.S. persons are authorized to provide
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Federal Register / Vol. 71, No. 90 / Wednesday, May 10, 2006 / Rules and Regulations
in-kind donations of medicine to the
Palestinian Authority Ministry of
Health, provided that such donations
are strictly for distribution in the West
Bank or Gaza and not intended for
resale, and provided further that no
payment pursuant to this license may
involve a debit to an account of the
Palestinian Authority on the books of a
U.S. financial institution or any account
blocked pursuant to this part.
PART 597—FOREIGN TERRORIST
ORGANIZATIONS SANCTIONS
REGULATIONS
§ 597.507 Travel, employment, residence
and maintenance transactions with the
Palestinian Authority.
1. The authority citation for part 597
continues to read as follows:
I
Authority: 31 U.S.C. 321(b); Pub. L. 101–
410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub.
L. 104–132, 110 Stat. 1214, 1248–53 (8 U.S.C.
1189, 18 U.S.C. 2339B).
Subpart D—Interpretations
2. Add a new § 597.407 to subpart D
to read as follows:
I
§ 597.407
Palestinian Authority.
Following the January 2006
Palestinian elections, Hamas, a
designated terrorist entity whose
property and interests in property are
blocked pursuant to § 597.201, has been
determined to have a property interest
in the transactions of the Palestinian
Authority. Accordingly, pursuant to
§ 597.201, U.S. persons are prohibited
from engaging in transactions with the
Palestinian Authority unless authorized.
Certain transactions with the Palestinian
Authority may be authorized by license,
see subpart E of this part.
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
3. Add a new § 597.506 to subpart E
to read as follows:
I
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§ 597.506 Official activities of certain
international organizations; U.S. person
employees of certain governments.
(a) Effective April 12, 2006, U.S.
financial institutions are authorized to
engage in all financial transactions with
the Palestinian Authority otherwise
prohibited by this part that are for the
conduct of the official business of the
United Nations, provided that no
payment pursuant to this license may
involve a debit to an account of the
Palestinian Authority on the books of a
U.S. financial institution or to any
account blocked pursuant to this part.
(b) For purposes of this section only,
the term ‘‘United Nations’’ means its
principal organs, including funds,
bodies, commissions, agencies,
departments and other entities of the
VerDate Aug<31>2005
14:26 May 09, 2006
Jkt 208001
Security Council, General Assembly,
Economic and Social Council and
Secretariat, specifically including,
among others, the World Bank, the
International Monetary Fund, the World
Food Programme, and the World Health
Organization.
(c) The retention and reporting
provisions of § 597.201 shall not apply
with respect to transactions authorized
by paragraph (a) of this section.
I 4. Add a new § 597.507 to subpart E
to read as follows:
(a) Effective April 12, 2006, U.S.
financial institutions are authorized to
engage in all transactions that are
ordinarily incident to U.S. persons’
travel to or from, or employment,
residence or personal maintenance
within, the jurisdiction of the
Palestinian Authority, including, but
not limited to, receipt of salaries,
payment of living expenses and
acquisition of goods or services for
personal use. Nothing in this license
authorizes any debit to an account of the
Palestinian Authority on the books of a
U.S. financial institution or to any
account blocked pursuant to this part.
(b) The retention and reporting
provisions of § 597.201 shall not apply
with respect to transactions authorized
by paragraph (a) of this section.
I 5. Add a new § 597.508 to subpart E
to read as follows:
§ 597.508 Payment of taxes and incidental
fees to the Palestinian Authority.
(a) Effective April 12, 2006, U.S.
financial institutions are authorized to
conduct all transactions ordinarily
incident to the following activities by
U.S. persons: the payment of taxes or
fees to, or the purchase or receipt of
permits or public utility services from,
the Palestinian Authority where such
transactions are necessary and
ordinarily incident to such persons’
day-to-day operations. Nothing in this
license authorizes a debit to an account
of the Palestinian Authority on the
books of a U.S. financial institution or
to any account blocked pursuant to this
part.
(b) The retention and reporting
provisions of § 597.201 shall not apply
with respect to transactions authorized
by paragraph (a) of this section.
I 6. Add a new § 597.509 to subpart E
to read as follows:
§ 597.509 Transactions with entities under
the control of the Palestinian President and
certain other entities.
(a) Effective April 12, 2006, U.S.
financial institutions are authorized to
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Fmt 4700
Sfmt 4700
engage in all transactions otherwise
prohibited under this part with the
following entities and individuals:
(1) The Palestinian Authority
Presidency, including only the Office of
the President, Presidential Security,
General Intelligence Apparatus,
Governors and Governorate staff, the
Attorney General’s Office, the Palestine
Investment Fund (PIF), the Border
Crossings Administration, and the
Palestine Broadcasting Corporation
(including the Voice of Palestine, Wafa
News Agency, and the General Public
Information Agency/State Information
Services);
(2) The Palestinian Judiciary,
including the Higher Judicial Council;
(3) Members of the Palestinian
Legislative Council (PLC) who were not
elected to the PLC on the party slate of
Hamas or any other Foreign Terrorist
Organization (FTO), Specially
Designated Terrorist (SDT), or Specially
Designated Global Terrorist (SDGT); and
(4) The following independent
agencies: The Central Elections
Commission; the Independent Citizens
Rights Commission; the General Audit
Authority/External Audit Agency; and
the Palestinian Monetary Authority.
(b) Effective April 12, 2006, U.S.
financial institutions are authorized to
reject transactions with members of the
Palestinian Legislative Council (PLC)
who were elected to the PLC on the
party slate of Hamas or any other
Foreign Terrorist Organization (FTO),
Specially Designated Terrorist (SDT), or
Specially Designated Global Terrorist
(SDGT), provided that any such
individuals are not named on OFAC’s
list of Specially Designated Nationals
and Blocked Persons.
(c) Nothing in this license authorizes
a debit to an account of the Palestinian
Authority on the books of a U.S.
financial institution or to any account
blocked pursuant to this part.
(d) The retention and reporting
provisions of § 597.201 shall not apply
with respect to transactions authorized
by paragraph (a) of this section. The
retention provisions of § 597.201 shall
not apply with respect to transactions
authorized by paragraph (b) of this
section.
I 7. Add a new § 597.510 to subpart E
to read as follows:
§ 597.510 Concluding activities with the
Palestinian Authority.
(a) Effective April 12, 2006, all
transactions and activities with the
Palestinian Authority otherwise
prohibited under this part are
authorized through May 12, 2006,
provided that they are necessary to
conclude ongoing contracts or programs
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Federal Register / Vol. 71, No. 90 / Wednesday, May 10, 2006 / Rules and Regulations
with the Palestinian Authority, and
further provided that no payment
pursuant to this license may involve a
debit to an account of the Palestinian
Authority on the books of a U.S.
financial institution or to any account
blocked pursuant to this part.
(b) The retention and reporting
provisions of § 597.201 shall not apply
with respect to transactions authorized
by paragraph (a) of this section.
I 8. Add a new § 597.511 to subpart E
to read as follows:
debarment and suspension common
rule (NCR). The NCR sets forth the
common policies and procedures that
Federal Executive branch agencies must
use in taking suspension or debarment
actions. At that time, ‘‘Subpart G—
Limited Denial of Participation’’ (LDP),
was inadvertently eliminated instead of
being redesignated as subpart J. This
technical amendment reinstates the
dropped regulatory text for former
subpart G in the new subpart J of part
44.
§ 597.511
DATES:
In-kind donations of medicine.
(a) Effective April 12, 2006, U.S.
financial institutions are authorized to
conduct all transactions ordinarily
incident to the provision by
nongovernmental organizations that are
U.S. persons of in-kind donations of
medicine to the Palestinian Authority
Ministry of Health, provided that such
donations are strictly for distribution in
the West Bank or Gaza and not intended
for resale, and provided further that no
payment pursuant to this license may
involve a debit to an account of the
Palestinian Authority on the books of a
U.S. financial institution or any account
blocked pursuant to this part.
(b) The retention and reporting
provisions of § 597.201 shall not apply
with respect to transactions authorized
by paragraph (a) of this section.
Dated: April 13, 2006.
Barbara C. Hammerle,
Acting Director, Office of Foreign Assets
Control.
Stuart A. Levey,
Under Secretary, Terrorism and Financial
Intelligence.
[FR Doc. 06–4351 Filed 5–9–06; 8:45 am]
BILLING CODE 4811–37–P
DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Part 44
RIN 2900–AK16
Loan Guaranty: Governmentwide
Debarment and Suspension
(Nonprocurement) and Requirements
for Drug-Free Workplace (Grants);
Correction
Department of Veterans Affairs.
Final rule; technical
amendment.
AGENCY:
rmajette on PROD1PC67 with RULES
ACTION:
SUMMARY: On November 26, 2003, the
Department of Veterans Affairs (VA)
published a final rule in the Federal
Register at 68 FR 66534 (VA’s portion
at 66618) implementing changes to the
governmentwide nonprocurement
VerDate Aug<31>2005
14:26 May 09, 2006
Jkt 208001
27203
Approved: May 4, 2006.
Robert C. McFetridge,
Acting Assistant to the Secretary for
Regulation Policy and Management.
Accordingly, 38 CFR part 44 is
amended as follows:
I
PART 44—GOVERNMENTWIDE
DEBARMENT AND SUSPENSION
(NONPROCUREMENT)
1. The authority citation for part 44
continues to read as follows:
I
Effective Date: This technical
amendment is effective as of November
26, 2003, the date of the erroneous
omission.
Authority: 38 U.S.C. 501 and 38 U.S.C.
3703(c); Sec. 2455, Pub. L. 103–355, 108 Stat.
3327 (31 U.S.C. 6101 note); E.O. 11738 (3
CFR, 1973 Comp., p. 799); E.O. 12549 (3 CFR
1986 comp., p. 189); E.O. 12689 (3 CFR 1989
Comp., p. 235.)
FOR FURTHER INFORMATION CONTACT:
I
William White, Acting Assistant
Director for Loan Policy and Valuation
(262), Loan Guaranty Service, Veterans
Benefits Administration, Department of
Veterans Affairs, 810 Vermont Avenue,
NW., Washington, DC 20420 (202–273–
7368), william.white@vba.va.gov.
On
November 26, 2003, the Department of
Veterans Affairs (VA) joined in the
publication of governmentwide
debarment and suspension
(nonprocurement) and governmentwide
requirements for drug-free workplace
(grants). Until that time, subpart G of 38
CFR part 44 had set forth VA’s
regulations governing limited denial of
participation (LDP) authority for VA to
deny participation in loan guaranty
programs in certain limited geographic
areas or for a certain period of time. The
intent has been for VA to have at its
disposal a lesser sanction than a
governmentwide debarment for program
participants.
Unfortunately, the regulatory
language setting out how and when
LPDs would be administered was
omitted when part 44 was revised to
include the new governmentwide
sanctions. This document reinstates the
dropped regulatory text for former
subpart G and places it in the new
subpart J with current cross-references.
VA’s administration of LDPs during this
lapsed period remained unaffected.
SUPPLEMENTARY INFORMATION:
List of Subjects in 38 CFR Part 44
Administrative practice and
procedure, Condominiums, Debarment
and suspension, Grant programs,
Handicapped, Housing loan programs—
housing and community development,
Manufactured homes, Reporting and
recordkeeping requirements, Veterans.
PO 00000
Frm 00019
Fmt 4700
Sfmt 4700
2. Subpart J is added to part 44 to read
as follows:
Subpart J—Limited Denial of
Participation
Sec.
44.1100 General.
44.1105 Cause for a limited denial of
participation.
44.1110 Scope and period of a limited
denial of participation.
44.1111 Notice.
44.1112 Conference.
44.1113 Appeal.
Subpart J—Limited Denial of
Participation
§ 44.1100
General.
Field Facility Directors are authorized
to order a limited denial of participation
affecting any participant or contractor
and its affiliates except lenders and
manufactured home manufacturers. In
each case, even if the offense or
violation is of a criminal, fraudulent or
other serious nature, the decision to
order a limited denial of participation
shall be discretionary and in the best
interests of the Government.
§ 44.1105 Cause for a limited denial of
participation.
(a) Causes. A limited denial of
participation shall be based upon
adequate evidence of any of the
following causes:
(1) Irregularities in a participant’s or
contractor’s performance in the VA loan
guaranty program;
(2) Denial of participation in programs
administered by the Department of
Housing and Urban Development or the
Department of Agriculture, Rural
Housing Service;
(3) Failure to satisfy contractual
obligations or to proceed in accordance
with contract specifications;
(4) Failure to proceed in accordance
with VA requirements or to comply
with VA regulations;
E:\FR\FM\10MYR1.SGM
10MYR1
]]>Agencies
[Federal Register Volume 71, Number 90 (Wednesday, May 10, 2006)]
[Rules and Regulations]
[Pages 27199-27203]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-4351]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 594, 595 and 597
Global Terrorism Sanctions Regulations; Terrorism Sanctions
Regulations; Foreign Terrorist Organizations Sanctions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Treasury Department's Office of Foreign Assets Control
(``OFAC'') is revising the Global Terrorism Sanctions Regulations, the
Terrorism Sanctions Regulations, and the Foreign Terrorist
Organizations Sanctions Regulations to add general licenses authorizing
certain transactions with the Palestinian Authority (``PA'').
DATE: Effective May 10, 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, Office of Foreign Assets Control, or Chief Counsel (Foreign
Assets Control), tel.: 202/622-2410, Office of the General Counsel,
Department of the Treasury, Washington, DC 20220 (not toll free
numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning the programs of
the Office of Foreign Assets Control are available for downloading from
the Office's Internet Home Page: https://www.treas.gov/ofac, or via FTP
at ofacftp.treas.gov.
Background
OFAC administers three sanctions programs with respect to
terrorists and terrorist organizations. The Terrorism Sanctions
Regulations, 31 CFR part 595 (``TSR''), implement Executive Order 12947
of January 23, 1995, in which the President declared a national
emergency with respect to ``grave acts of violence committed by foreign
terrorists that disrupt the Middle East peace process'.'' The Global
Terrorism Sanctions Regulations, 31 CFR part 594 (``GTSR''), implement
Executive Order 13224 of September 23, 2001, in which the President
declared an emergency more generally with respect to ``grave acts of
terrorism and threats of terrorism committed by foreign terrorists'.''
The Foreign Terrorist Organizations Sanctions Regulations, 31 CFR part
597 (``FTOSR''), implement provisions of the Antiterrorism and
Effective Death Penalty Act of 1996 (``AEDPA'').
HAMAS, members of which now form the majority party within the
Palestinian Legislative Council and hold positions of authority within
the government including the position of Prime Minister, is a target of
each of these sanctions programs, resulting in the blocking of any
property and interests in property of HAMAS that are in the United
States or hereafter come within the United States, or that are in or
hereafter come within the possession or control of a United States
person. These restrictions prohibit U.S. persons from dealing in
property or interests in property of HAMAS. OFAC has determined that,
as a result of the recent elections, HAMAS has a property interest in
the transactions of the Palestinian Authority. Accordingly, pursuant to
the TSR, the GTSR and the FTOSR, U.S. persons are prohibited from
engaging in transactions with the Palestinian Authority unless
authorized. Notwithstanding the prohibitions, OFAC, consistent with
current foreign policy, is authorizing U.S. persons to engage in
certain transactions in which the Palestinian Authority may have an
interest. It should be noted that the prohibitions involving the
Palestinian Authority do not bar all transactions involving individuals
and entities in Palestinian territory.
Executive Order 12866, Administrative Procedure Act, Regulatory
Flexibility Act, and Paperwork Reduction Act
Because the regulations at issue involve a foreign affairs
function, the provisions of Executive Order 12866 and the
Administrative Procedure Act (5 U.S.C. 553) 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.
The Paperwork Reduction Act does not apply because this rule does
not impose information collection requirements that would require the
approval of the Office of Management and Budget under 44 U.S.C. 3501 et
seq.
List of Subjects
31 CFR Part 594
Administrative practice and procedure, Banks, Banking, Penalties,
Reporting and recordkeeping requirements, Terrorism.
31 CFR Part 595
Administrative practice and procedure, Banks, Banking, Currency,
Foreign investments in United States, Penalties, Reporting and
recordkeeping requirements, Securities, Terrorism.
31 CFR Part 597
Administrative practice and procedure, Banks, Banking, Currency,
Foreign investments in United States, Penalties, Reporting and
recordkeeping requirements, Securities, Terrorism.
0
For the reasons set forth in the preamble, and under the authority of
IEEPA and AEDPA, 31 CFR chapter V is amended by amending the
interpretations and licenses provisions in 31 CFR parts 594, 595, and
597 as set forth below.
PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS
0
1. The authority citation for part 594 continues to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 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); E.O. 13224, 66 FR 49079,
[[Page 27200]]
September 25, 2001; E.O. 13268, 67 FR 44751, July 3, 2002; 3 CFR,
2002 Comp., p. 240; E.O. 13284, 64 FR 4075, January 28, 2003.
Subpart D--Interpretations
0
1. Add a new Sec. 594.411 to subpart D to read as follows:
Sec. 594.411 Palestinian Authority.
Following the January 2006 Palestinian elections, Hamas, a
designated terrorist entity whose property and interests in property
are blocked pursuant to Sec. 594.201, has been determined to have a
property interest in the transactions of the Palestinian Authority.
Accordingly, pursuant to Sec. Sec. 594.201 and 594.204, U.S. persons
are prohibited from engaging in transactions with the Palestinian
Authority unless authorized. Certain transactions with the Palestinian
Authority may be authorized by license, see subpart E of this part.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Add a new Sec. 594.510 to subpart E to read as follows:
Sec. 594.510 Official activities of certain international
organizations; U.S. person employees of certain governments.
(a) Effective April 12, 2006, all transactions and activities with
the Palestinian Authority otherwise prohibited under this part that are
for the conduct of the official business of the United Nations are
authorized, provided that no payment pursuant to this license may
involve a debit to an account of the Palestinian Authority on the books
of a U.S. financial institution or to any account blocked pursuant to
this part.
(b) Effective April 12, 2006, U.S. persons who are employees of the
governments of states bordering the West Bank or Gaza are authorized to
engage in all transactions and activities outside of the United States
with the Palestinian Authority that are otherwise prohibited under this
part in support of the U.S. persons' official duties, provided that no
payment pursuant to this license may involve a debit to an account of
the Palestinian Authority on the books of a U.S. financial institution
or to any account blocked pursuant to this part.
(c) For purposes of this section only, the term ``United Nations''
means its principal organs, including funds, bodies, commissions,
agencies, departments and other entities of the Security Council,
General Assembly, Economic and Social Council and Secretariat,
specifically including, among others, the World Bank, the International
Monetary Fund, the World Food Programme, and the World Health
Organization.
0
3. Add a new Sec. 594.511 to subpart E to read as follows:
Sec. 594.511 Travel, employment, residence and maintenance
transactions with the Palestinian Authority.
Effective April 12, 2006, U.S. persons are authorized to engage in
all transactions with the Palestinian Authority otherwise prohibited
under this part that are ordinarily incident to their travel to or
from, or employment, residence or personal maintenance within, the
jurisdiction of the Palestinian Authority, including, but not limited
to, receipt of salaries, payment of living expenses and acquisition of
goods or services for personal use. Nothing in this license authorizes
any debit to an account of the Palestinian Authority on the books of a
U.S. financial institution or to any account blocked pursuant to this
part.
0
4. Add a new Sec. 594.512 to subpart E to read as follows:
Sec. 594.512 Payment of taxes and incidental fees to the Palestinian
Authority.
Effective April 12, 2006, U.S. persons are authorized to pay taxes
or fees to, and purchase or receive permits or public utility services
from, the Palestinian Authority where such transactions are necessary
and ordinarily incident to such persons' day-to-day operations. Nothing
in this license authorizes a debit to an account of the Palestinian
Authority on the books of a U.S. financial institution or to any
account blocked pursuant to this part.
0
5. Add a new Sec. 594.513 to subpart E to read as follows:
Sec. 594.513 Transactions with entities under the control of the
Palestinian President and certain other entities.
(a) Effective April 12, 2006, U.S. persons are authorized to engage
in all transactions otherwise prohibited under this part with the
following entities and individuals:
(1) The Palestinian Authority Presidency, including only the Office
of the President, Presidential Security, General Intelligence
Apparatus, Governors and Governorate staff, the Attorney General's
Office, the Palestine Investment Fund (PIF), the Border Crossings
Administration, and the Palestine Broadcasting Corporation (including
the Voice of Palestine, Wafa News Agency, and the General Public
Information Agency/State Information Services);
(2) The Palestinian Judiciary, including the Higher Judicial
Council;
(3) Members of the Palestinian Legislative Council (PLC) who were
not elected to the PLC on the party slate of Hamas or any other Foreign
Terrorist Organization (FTO), Specially Designated Terrorist (SDT), or
Specially Designated Global Terrorist (SDGT); and
(4) The following independent agencies: The Central Elections
Commission; the Independent Citizens Rights Commission; the General
Audit Authority/External Audit Agency; and the Palestinian Monetary
Authority.
(b) Effective April 12, 2006, U.S. financial institutions are
authorized to reject transactions with members of the Palestinian
Legislative Council (PLC) who were elected to the PLC on the party
slate of Hamas or any other Foreign Terrorist Organization (FTO),
Specially Designated Terrorist (SDT), or Specially Designated Global
Terrorist (SDGT), provided that any such individuals are not named on
OFAC's list of Specially Designated Nationals and Blocked Persons.
(c) Nothing in this license authorizes a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
0
6. Add a new Sec. 594.514 to subpart E to read as follows:
Sec. 594.514 Concluding activities with the Palestinian Authority.
Effective April 12, 2006, all transactions and activities with the
Palestinian Authority otherwise prohibited under this part are
authorized through May 12, 2006, provided that they are necessary to
conclude ongoing contracts or programs with the Palestinian Authority,
and further provided that no payment pursuant to this license may
involve a debit to an account of the Palestinian Authority on the books
of a U.S. financial institution or to any account blocked pursuant to
this part.
0
7. Add a new Sec. 594.515 to subpart E to read as follows:
Sec. 594.515 In-kind donations of medicine.
Effective April 12, 2006, nongovernmental organizations that are
U.S. persons are authorized to provide in-kind donations of medicine to
the Palestinian Authority Ministry of Health, provided that such
donations are strictly for distribution in the West Bank or Gaza and
not intended for resale, and provided further that no payment pursuant
to this license may involve a debit to an account of the
[[Page 27201]]
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
PART 595--TERRORISM SANCTIONS REGULATIONS
0
1. The authority citation for part 595 continues to read as follows:
Authority: 3 U.S.C. 301; 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);
E.O. 12947, 60 FR 5079; 3 CFR, 1995 Comp., p. 319.
Subpart D--Interpretations
0
1. Add a new Sec. 595.409 to subpart D to read as follows:
Sec. 595.409 Palestinian Authority.
Following the January 2006 Palestinian elections, Hamas, a
designated terrorist entity whose property and interests in property
are blocked pursuant to Sec. Sec. 595.201 and 595.204, has been
determined to have a property interest in the transactions of the
Palestinian Authority. Accordingly, pursuant to Sec. Sec. 595.201 and
595.204, U.S. persons are prohibited from engaging in transactions with
the Palestinian Authority unless authorized. Certain transactions with
the Palestinian Authority may be authorized by license, see subpart E
of this part.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Add a new Sec. 595.508 to subpart E to read as follows:
Sec. 595.508 Official activities of certain international
organizations; U.S. person employees of certain governments.
(a) Effective April 12, 2006, all transactions and activities with
the Palestinian Authority otherwise prohibited under this part that are
for the conduct of the official business of the United Nations are
authorized, provided that no payment pursuant to this license may
involve a debit to an account of the Palestinian Authority on the books
of a U.S. financial institution or to any account blocked pursuant to
this part.
(b) Effective April 12, 2006, U.S. persons who are employees of the
governments of states bordering the West Bank or Gaza are authorized to
engage in all transactions and activities outside of the United States
with the Palestinian Authority that are otherwise prohibited under this
part in support of the U.S. persons' official duties, provided that no
payment pursuant to this license may involve a debit to an account of
the Palestinian Authority on the books of a U.S. financial institution
or to any account blocked pursuant to this part.
(c) For purposes of this section only, the term ``United Nations''
means its principal organs, including funds, bodies, commissions,
agencies, departments and other entities of the Security Council,
General Assembly, Economic and Social Council and Secretariat,
specifically including, among others, the World Bank, the International
Monetary Fund, the World Food Programme, and the World Health
Organization.
0
3. Add a new Sec. 595.509 to subpart E to read as follows:
Sec. 595.509 Travel, employment, residence and maintenance
transactions with the Palestinian Authority.
Effective April 12, 2006, U.S. persons are authorized to engage in
all transactions with the Palestinian Authority otherwise prohibited
under this part that are ordinarily incident to their travel to or
from, or employment, residence or personal maintenance within, the
jurisdiction of the Palestinian Authority, including, but not limited
to, receipt of salaries, payment of living expenses and acquisition of
goods or services for personal use. Nothing in this license authorizes
any debit to an account of the Palestinian Authority on the books of a
U.S. financial institution or to any account blocked pursuant to this
part.
0
4. Add a new Sec. 595.510 to subpart E to read as follows:
Sec. 595.510 Payment of taxes and incidental fees to the Palestinian
Authority.
Effective April 12, 2006, U.S. persons are authorized to pay taxes
or fees to, and purchase or receive permits or public utility services
from, the Palestinian Authority where such transactions are necessary
and ordinarily incident to such persons' day-to-day operations. Nothing
in this license authorizes a debit to an account of the Palestinian
Authority on the books of a U.S. financial institution or to any
account blocked pursuant to this part.
0
5. Add a new Sec. 595.511 to subpart E to read as follows:
Sec. 595.511 Transactions with entities under the control of the
Palestinian President and certain other entities.
(a) Effective April 12, 2006, U.S. persons are authorized to engage
in all transactions otherwise prohibited under this part with the
following entities and individuals:
(1) The Palestinian Authority Presidency, including only the Office
of the President, Presidential Security, General Intelligence
Apparatus, Governors and Governorate staff, the Attorney General's
Office, the Palestine Investment Fund (PIF), the Border Crossings
Administration, and the Palestine Broadcasting Corporation (including
the Voice of Palestine, Wafa News Agency, and the General Public
Information Agency/State Information Services);
(2) The Palestinian Judiciary, including the Higher Judicial
Council;
(3) Members of the Palestinian Legislative Council (PLC) who were
not elected to the PLC on the party slate of Hamas or any other Foreign
Terrorist Organization (FTO), Specially Designated Terrorist (SDT), or
Specially Designated Global Terrorist (SDGT); and
(4) The following independent agencies: The Central Elections
Commission; the Independent Citizens Rights Commission; the General
Audit Authority/External Audit Agency; and the Palestinian Monetary
Authority.
(b) Effective April 12, 2006, U.S. financial institutions are
authorized to reject transactions with members of the Palestinian
Legislative Council (PLC) who were elected to the PLC on the party
slate of Hamas or any other Foreign Terrorist Organization (FTO),
Specially Designated Terrorist (SDT), or Specially Designated Global
Terrorist (SDGT), provided that any such individuals are not named on
OFAC's list of Specially Designated Nationals and Blocked Persons.
(c) Nothing in this license authorizes a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
0
6. Add a new Sec. 595.512 to subpart E to read as follows:
Sec. 595.512 Concluding activities with the Palestinian Authority.
Effective April 12, 2006, all transactions and activities with the
Palestinian Authority otherwise prohibited under this part are
authorized through May 12, 2006, provided that they are necessary to
conclude ongoing contracts or programs with the Palestinian Authority,
and further provided that no payment pursuant to this license may
involve a debit to an account of the Palestinian Authority on the books
of a U.S. financial institution or to any account blocked pursuant to
this part.
0
7. Add a new Sec. 595.513 to subpart E to read as follows:
Sec. 595.513 In-kind donations of medicine.
Effective April 12, 2006, nongovernmental organizations that are
U.S. persons are authorized to provide
[[Page 27202]]
in-kind donations of medicine to the Palestinian Authority Ministry of
Health, provided that such donations are strictly for distribution in
the West Bank or Gaza and not intended for resale, and provided further
that no payment pursuant to this license may involve a debit to an
account of the Palestinian Authority on the books of a U.S. financial
institution or any account blocked pursuant to this part.
PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS
0
1. The authority citation for part 597 continues to read as follows:
Authority: 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8
U.S.C. 1189, 18 U.S.C. 2339B).
Subpart D--Interpretations
0
2. Add a new Sec. 597.407 to subpart D to read as follows:
Sec. 597.407 Palestinian Authority.
Following the January 2006 Palestinian elections, Hamas, a
designated terrorist entity whose property and interests in property
are blocked pursuant to Sec. 597.201, has been determined to have a
property interest in the transactions of the Palestinian Authority.
Accordingly, pursuant to Sec. 597.201, U.S. persons are prohibited
from engaging in transactions with the Palestinian Authority unless
authorized. Certain transactions with the Palestinian Authority may be
authorized by license, see subpart E of this part.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
3. Add a new Sec. 597.506 to subpart E to read as follows:
Sec. 597.506 Official activities of certain international
organizations; U.S. person employees of certain governments.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to engage in all financial transactions with the Palestinian
Authority otherwise prohibited by this part that are for the conduct of
the official business of the United Nations, provided that no payment
pursuant to this license may involve a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
(b) For purposes of this section only, the term ``United Nations''
means its principal organs, including funds, bodies, commissions,
agencies, departments and other entities of the Security Council,
General Assembly, Economic and Social Council and Secretariat,
specifically including, among others, the World Bank, the International
Monetary Fund, the World Food Programme, and the World Health
Organization.
(c) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
0
4. Add a new Sec. 597.507 to subpart E to read as follows:
Sec. 597.507 Travel, employment, residence and maintenance
transactions with the Palestinian Authority.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to engage in all transactions that are ordinarily incident
to U.S. persons' travel to or from, or employment, residence or
personal maintenance within, the jurisdiction of the Palestinian
Authority, including, but not limited to, receipt of salaries, payment
of living expenses and acquisition of goods or services for personal
use. Nothing in this license authorizes any debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
(b) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
0
5. Add a new Sec. 597.508 to subpart E to read as follows:
Sec. 597.508 Payment of taxes and incidental fees to the Palestinian
Authority.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to conduct all transactions ordinarily incident to the
following activities by U.S. persons: the payment of taxes or fees to,
or the purchase or receipt of permits or public utility services from,
the Palestinian Authority where such transactions are necessary and
ordinarily incident to such persons' day-to-day operations. Nothing in
this license authorizes a debit to an account of the Palestinian
Authority on the books of a U.S. financial institution or to any
account blocked pursuant to this part.
(b) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
0
6. Add a new Sec. 597.509 to subpart E to read as follows:
Sec. 597.509 Transactions with entities under the control of the
Palestinian President and certain other entities.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to engage in all transactions otherwise prohibited under
this part with the following entities and individuals:
(1) The Palestinian Authority Presidency, including only the Office
of the President, Presidential Security, General Intelligence
Apparatus, Governors and Governorate staff, the Attorney General's
Office, the Palestine Investment Fund (PIF), the Border Crossings
Administration, and the Palestine Broadcasting Corporation (including
the Voice of Palestine, Wafa News Agency, and the General Public
Information Agency/State Information Services);
(2) The Palestinian Judiciary, including the Higher Judicial
Council;
(3) Members of the Palestinian Legislative Council (PLC) who were
not elected to the PLC on the party slate of Hamas or any other Foreign
Terrorist Organization (FTO), Specially Designated Terrorist (SDT), or
Specially Designated Global Terrorist (SDGT); and
(4) The following independent agencies: The Central Elections
Commission; the Independent Citizens Rights Commission; the General
Audit Authority/External Audit Agency; and the Palestinian Monetary
Authority.
(b) Effective April 12, 2006, U.S. financial institutions are
authorized to reject transactions with members of the Palestinian
Legislative Council (PLC) who were elected to the PLC on the party
slate of Hamas or any other Foreign Terrorist Organization (FTO),
Specially Designated Terrorist (SDT), or Specially Designated Global
Terrorist (SDGT), provided that any such individuals are not named on
OFAC's list of Specially Designated Nationals and Blocked Persons.
(c) Nothing in this license authorizes a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
(d) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section. The retention provisions of Sec. 597.201 shall not apply
with respect to transactions authorized by paragraph (b) of this
section.
0
7. Add a new Sec. 597.510 to subpart E to read as follows:
Sec. 597.510 Concluding activities with the Palestinian Authority.
(a) Effective April 12, 2006, all transactions and activities with
the Palestinian Authority otherwise prohibited under this part are
authorized through May 12, 2006, provided that they are necessary to
conclude ongoing contracts or programs
[[Page 27203]]
with the Palestinian Authority, and further provided that no payment
pursuant to this license may involve a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
(b) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
0
8. Add a new Sec. 597.511 to subpart E to read as follows:
Sec. 597.511 In-kind donations of medicine.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to conduct all transactions ordinarily incident to the
provision by nongovernmental organizations that are U.S. persons of in-
kind donations of medicine to the Palestinian Authority Ministry of
Health, provided that such donations are strictly for distribution in
the West Bank or Gaza and not intended for resale, and provided further
that no payment pursuant to this license may involve a debit to an
account of the Palestinian Authority on the books of a U.S. financial
institution or any account blocked pursuant to this part.
(b) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
Dated: April 13, 2006.
Barbara C. Hammerle,
Acting Director, Office of Foreign Assets Control.
Stuart A. Levey,
Under Secretary, Terrorism and Financial Intelligence.
[FR Doc. 06-4351 Filed 5-9-06; 8:45 am]
BILLING CODE 4811-37-P
