Iranian Transactions Regulations, 53569-53571 [06-7620]
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Federal Register / Vol. 71, No. 176 / Tuesday, September 12, 2006 / Rules and Regulations
Shelton, WA, Sanderson Field, NDB OR
GPS–A, Amdt 2, CANCELLED
[FR Doc. E6–14731 Filed 9–11–06; 8:45 am]
BILLING CODE 4910–13–P
Electronic and Facsimile Availability
This document and additional
information concerning the Office of
Foreign Assets Control (‘‘OFAC’’) are
available from OFAC’s Web site (http:
//www.treas.gov/ofac) or via facsimile
through a 24-hour fax-on demand
service, tel.: (202) 622–0077.
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
21 CFR Part 880
General Hospital and Personal Use
Devices
CFR Correction
In Title 21 of the Code of Federal
Regulations, parts 800 to 1299, revised
as of April 1, 2006, on page 410, in
§ 880.5950, paragraph (b) is corrected to
read as follows:
§ 880.5950
Umbilical occlusion device.
*
*
*
*
*
(b) Classification. Class I (general
controls). The device is exempt from the
premarket notification procedures in
subpart E of part 807 of this chapter,
subject to the limitations in § 880.9.
[FR Doc. 06–55527 Filed 9–11–06; 8:45 am]
BILLING CODE 1505–01–D
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 560
Iranian Transactions Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule; amendment.
jlentini on PROD1PC65 with RULES
AGENCY:
SUMMARY: The Office of Foreign Assets
Control of the U.S. Department of the
Treasury (‘‘OFAC’’) is amending the
Iranian Transactions Regulations, 31
CFR part 560, to revoke the
authorizations contained in § 560.516
with respect to Bank Saderat and to
except Bank Saderat from the scope of
§ 560.405 and § 560.532(b). These
amendments effectively prohibit all
transactions directly or indirectly
involving Bank Saderat. In addition,
OFAC is making a technical amendment
to paragraph (a)(1) of § 560.516.
DATES: Effective Date: September 8,
2006.
FOR FURTHER INFORMATION CONTACT:
Assistant Director of Compliance
Outreach & Implementation, tel.: 202/
622–2490, Assistant Director of
Licensing, tel.: 202/622–2480, Assistant
Director of Policy, tel.: 202/622–4855, or
Chief Counsel, tel.: 202/622–2410,
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15:49 Sep 11, 2006
Jkt 205001
Office of Foreign Assets Control,
Department of the Treasury,
Washington, DC 20220 (not toll free
numbers).
SUPPLEMENTARY INFORMATION:
Background
The Iranian Transactions Regulations,
31 CFR part 560 (the ‘‘ITR’’), implement
a series of Executive orders, beginning
with Executive Order 12957, issued on
March 15, 1995, under the authority of
the International Emergency Economic
Powers Act (50 U.S.C. 1701–1706)
(‘‘IEEPA’’). In that order, the President
declared a national emergency with
respect to the actions and policies of the
Government of Iran, including its
support for international terrorism, its
efforts to undermine the Middle East
peace process, and its efforts to acquire
weapons of mass destruction and the
means to deliver them. To deal with that
threat, Executive Order 12957 imposed
prohibitions on certain transactions
with respect to the development of
Iranian petroleum resources. On May 6,
1995, the President issued Executive
Order 12959 imposing comprehensive
trade sanctions to further respond to
this threat, and on August 19, 1997, the
President issued Executive Order 13059
consolidating and clarifying the
previous orders.
The Office of Foreign Assets Control
(‘‘OFAC’’) is amending the ITR to cut off
Bank Saderat, one of the largest Iranian
government-owned banks, from the U.S.
financial system. Bank Saderat has been
a significant facilitator of Hizballah’s
financial activities and has served as a
conduit between the Government of Iran
and Hizballah, Hamas, the Popular
Front for the Liberation of PalestineGeneral Command, and Palestinian
Islamic Jihad.
To cut off Bank Saderat from the U.S.
financial system, OFAC is making three
amendments to the ITR that effectively
prohibit all transactions directly or
indirectly involving Bank Saderat.
OFAC is amending § 560.516, a general
license authorizing payment and U.S.
dollar clearing transactions involving
Iran, to revoke its applicability to Bank
Saderat. OFAC is also amending
§ 560.405, an interpretive section, and
§ 560.532(b), a statement of licensing
policy, to exclude Bank Saderat from
the scope of these provisions.
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53569
Section 560.516(a) authorizes U.S.
depository institutions to process
transfers of funds to or from Iran, or for
the direct or indirect benefit of persons
in Iran or the Government of Iran, if the
transfer is covered in full by any of the
following conditions and does not
involve debiting or crediting an Iranian
account: (1) The transfer is by order of
a non-Iranian foreign bank from its own
account in a domestic bank to an
account held by a domestic bank for a
second non-Iranian foreign bank; (2) the
transfer arises from an underlying
transaction that has been authorized by
a specific or general license issued
pursuant to the ITR; (3) the transfer
arises from an underlying transaction
that is not prohibited by the ITR; or (4)
the transfer arises from an underlying
transaction that is exempted from
regulation pursuant to § 203(b) of
IEEPA. Section 560.516(b) authorizes
U.S. registered brokers or dealers in
securities to process transfers of funds
to or from Iran, or for the direct or
indirect benefit of persons in Iran or the
Government of Iran, if the transfer is
covered in full by any of the conditions
set forth in (2)–(4) above and does not
involve debiting or crediting an Iranian
account. The term Iranian account is
defined in § 560.320 to mean an account
of a person located in Iran or of the
Government of Iran maintained on the
books of either a U.S. depository
institution or a U.S. registered broker or
dealer in securities.
OFAC is adding a new paragraph (f)
to § 560.516 to revoke the applicability
to Bank Saderat of the general licenses
in paragraphs (a) and (b) of § 560.516.
Effective September 8, 2006,
transactions directly or indirectly
involving Bank Saderat are excluded
from the scope of these authorizations.
OFAC is also including an exception in
this amendment to provide 90 days to
wind down or complete performance of
transactions involving Bank Saderat that
are described in paragraphs (a)(2)
through (4) or (b) of § 560.516 and that
were entered into before September 8,
2006, except for specific licenses issued
pursuant to § 560.532(b) that were being
used before September 8, 2006 to obtain
letters of credit issued by Bank Saderat,
for which OFAC is providing a 180-day
wind-down period.
Section 560.405 is an interpretive
section providing that transactions
ordinarily incident to licensed
transactions and necessary to give them
effect are also authorized, with certain
exceptions. OFAC is adding a new
exception to § 560.405 for transactions
directly or indirectly involving Bank
Saderat. Effective September 8, 2006,
such transactions will not be authorized
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Federal Register / Vol. 71, No. 176 / Tuesday, September 12, 2006 / Rules and Regulations
as transactions ordinarily incident to a
licensed transaction. As with § 560.516,
OFAC is providing 90 days to wind
down or complete performance of all
transactions involving Bank Saderat that
were entered into before September 8,
2006, except for specific licenses issued
pursuant to § 560.532(b) that were being
used before September 8, 2006 to obtain
letters of credit issued by Bank Saderat,
for which OFAC is providing a 180-day
wind-down period.
Section 560.532 of the ITR deals with
payment for and financing of
commercial sales and exportation or
reexportation of agricultural
commodities and products, medicine,
and medical devices that are licensed
pursuant to § 560.530. Section
560.532(a) sets forth a general license
authorizing certain payment terms.
Section 560.532(b) provides that
specific licenses may be issued on a
case-by-case basis for payment terms
and trade financing not authorized by
the general license in paragraph (a).
Pursuant to § 560.532(b), OFAC has
issued specific licenses authorizing the
use of letters of credit issued by Iranian
banks to pay for authorized agricultural
and medical sales. OFAC is adding a
new sentence to § 560.532(b) providing
that, effective September 8, 2006,
specific licenses that have been or will
be issued pursuant to this paragraph
will not authorize any transactions
involving Bank Saderat. However, with
respect to specific licenses that were
being used as of September 8, 2006 to
obtain letters of credit issued by Bank
Saderat, OFAC is further amending
§ 560.532(b) to provide a 180-day winddown period to complete performance
on any letters of credit issued by Bank
Saderat or to obtain a letter of credit
from a different issuing bank.
In addition to the amendments
relating to Bank Saderat, OFAC is also
making a technical amendment to
§ 560.516. Paragraph (a)(1) of § 560.516
authorizes U.S. depository institutions
to process transfers of funds to or from
Iran, or for the direct or indirect benefit
of persons in Iran or the Government of
Iran, if the transfer is by order of a nonIranian foreign bank from its own
account in a domestic bank to an
account held by a domestic bank for a
second non-Iranian foreign bank. OFAC
is amending this paragraph by deleting
the word ‘‘second’’ to clarify that U.S.
depository institutions are authorized to
make transfers between accounts held
by different branches of the same nonIranian foreign bank.
Public Participation
Because the amendments of the ITR
involve a foreign affairs function, the
VerDate Aug<31>2005
15:49 Sep 11, 2006
Jkt 205001
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.
Paperwork Reduction Act
The collections of information related
to the ITR are contained in 31 CFR part
501 (the ‘‘Reporting, Procedures and
Penalties Regulations’’). Pursuant to the
Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of
information have been approved by the
Office of Management and Budget under
control number 1505–0164. An agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless the
collection of information displays a
valid control number.
List of Subjects in 31 CFR Part 560
Administrative practice and
procedure, Banks, Banking, Brokers,
Foreign Trade, Investments, Loans,
Securities, Iran.
I For the reasons set forth in the
preamble, the Office of Foreign Assets
Control amends 31 CFR part 560 as
follows:
PART 560—IRANIAN TRANSACTIONS
REGULATIONS
1. The authority citation of part 560
continues to read as follows:
I
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B,
2332d; 22 U.S.C. 2349aa–9; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; Pub. L.
101–410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 106–387, 114 Stat. 1549; E.O. 12613,
52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O.
12957, 60 FR 14615, 3 CFR, 1995 Comp., p.
332; E.O. 12959, 60 FR 24757, 3 CFR, 1995,
Comp., 356; E.O. 13059, 62 FR 44531, 3 CFR,
1997 Comp., p. 217.
Subpart D—Interpretations
2. In § 560.405, republish the
introductory text, redesignate
paragraphs (a) through (e) as paragraphs
(b) through (f), respectively, and add a
new paragraph (a) to read as follows:
I
§ 560.405 Transactions incidental to a
licensed transaction authorized.
Any transaction ordinarily incident to
a licensed transaction and necessary to
give effect thereto is also authorized,
except:
(a) Effective September 8, 2006,
transactions directly or indirectly
involving Bank Saderat, except that
transactions involving Bank Saderat that
were entered into before September 8,
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2006 may be performed according to
their terms until December 7, 2006.
Note to paragraph (a): But see § 560.532(b),
which provides a 180-day wind-down period
for specific licenses that were being used
before September 8, 2006 to obtain letters of
credit issued by Bank Saderat.
*
*
*
*
*
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
3. In § 560.516, revise paragraph (a)(1)
and add a new paragraph (f) to read as
follows:
I
§ 560.516 Payment and United States
dollar clearing transactions involving Iran.
(a) * * *
(1) The transfer is by order of a foreign
bank which is not an Iranian entity from
its own account in a domestic bank
(directly or through a foreign branch or
subsidiary of a domestic bank) to an
account held by a domestic bank
(directly or through a foreign branch or
subsidiary of a domestic bank) for a
foreign bank which is not an Iranian
entity. For purposes of this section,
‘‘foreign bank’’ includes a foreign
subsidiary, but not a foreign branch of
a domestic bank;
*
*
*
*
*
(f) Effective September 8, 2006, this
section does not authorize transactions
directly or indirectly involving Bank
Saderat, except that transactions
described in paragraphs (a)(2) through
(a)(4) or (b) of this section involving
Bank Saderat that were entered into
before September 8, 2006 may be
performed according to their terms until
December 7, 2006.
Note to paragraph (f): But see § 560.532(b),
which provides a 180-day wind-down period
for specific licenses that were being used
before September 8, 2006 to obtain letters of
credit issued by Bank Saderat.
4. In § 560.532, revise paragraph (b) to
read as follows:
I
§ 560.532 Payment for and financing of
exports and reexports of commercial
commodities, medicine, and medical
devices.
*
*
*
*
*
(b) Specific licenses for alternate
payment terms. Specific licenses may be
issued on a case-by-case basis for
payment terms and trade financing not
authorized by the general license in
paragraph (a) of this section for sales
pursuant to § 560.530. Effective
September 8, 2006, specific licenses that
have been or will be issued pursuant to
this paragraph will not authorize any
payment terms or trade financing
involving Bank Saderat, except that, in
the case of specific licenses that were
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Federal Register / Vol. 71, No. 176 / Tuesday, September 12, 2006 / Rules and Regulations
being used before September 8, 2006 to
obtain letters of credit issued by Bank
Saderat, such letters of credit may
continue to be performed according to
their terms until March 7, 2007. See
§ 501.801(b) of this chapter for specific
licensing procedures.
*
*
*
*
*
Dated: September 7, 2006.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 06–7620 Filed 9–8–06; 3:20 pm]
BILLING CODE 4811–37–P
[FMR Amendment 2006–06; FMR Case
2006–102–4
RIN 3090–AI27
Federal Management Regulation;
Disposition of Excess Personal
Property
§ 102–36.10
[Amended]
Office of Governmentwide
Policy, General Services Administration
(GSA).
ACTION: Final rule.
SUMMARY: The General Services
Administration is amending the Federal
Management Regulation (FMR) by
correcting references to outdated or
superceded provisions of law or
regulation; correcting text to be in
conformance with revised laws,
regulation, or Federal agency
responsibilities; and clarifying text
where the intended meaning could be
updated or made clearer.
DATES: Effective Date: October 12, 2006.
FOR FURTHER INFORMATION CONTACT: The
Regulatory Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202)
501–4755, for information pertaining to
status or publication schedules. For
clarification of content, contact Mr.
Robert Holcombe, Office of
Governmentwide Policy, Office of
Travel, Transportation, and Asset
Management (MT), at (202) 501–3828, or
e-mail at Robert.Holcombe@gsa.gov.
Please cite Amendment 2006–06, FMR
case 2006–102–4.
SUPPLEMENTARY INFORMATION:
A. Background
GSA is in the process of revising the
Federal Property Management
Regulations (FPMR) and transferring
most of the content into a new,
streamlined Federal Management
Regulation (FMR). Consequently, FMR
part 102–36 (41 CFR part 102–36)
Jkt 205001
3. Amend § 102–36.10 by removing
‘‘the Commonwealth of Puerto Rico, and
the Commonwealth of’’ and adding
‘‘Puerto Rico, the Federated States of
Micronesia, the Marshall Islands, Palau,
and’’ in its place.
§ 102–36.35
I
[Amended]
List of Subjects in 41 CFR Part 102–36
4. Amend § 102–36.35 by removing
from paragraph (b) ‘‘The Property Act’’
and adding ‘‘Title 40 of the United
States Code’’ in its place; and by
removing from paragraph (c) ‘‘part 101–
45 of this title’’ and adding ‘‘part 102–
38 of this chapter’’ in its place.
I 5. Amend § 102–36.40 by—
I a. Removing from the definition
‘‘Exchange/sale property,’’ ‘‘means’’ and
adding ‘‘is’’ in its place; and removing
‘‘part 101–46 of this title’’ and adding
‘‘part 102–39 of this chapter’’ in its
place;
I b. Removing from the definition
‘‘Foreign excess personal property,’’
‘‘the Commonwealth of Puerto Rico, and
the Commonwealth of’’ and adding
‘‘Puerto Rico, the Federated States of
Micronesia, the Marshall Islands, Palau,
and’’ in its place;
I c. Removing the definitions ‘‘Federal
Disposal System (FEDS)’’ and ‘‘Property
Act’’; and
I d. Adding the definition
‘‘GSAXcess’’ to read as follows:
Government property management,
Surplus government property.
§ 102–36.40
part?
Dated: April 14, 2006.
David L. Bibb,
Acting Administrator of General Services.
*
C. Regulatory Flexibility Act
AGENCY:
jlentini on PROD1PC65 with RULES
Section 121(c) of title 40, United
States Code, authorizes the
Administrator of General Services to
prescribe regulations as he deems
necessary to carry out his functions
under subtitle I of title 40. Section 521
of title 40 authorizes the General
Services Administration (GSA) to
prescribe policies to promote the
maximum use of excess Government
personal property by executive agencies.
The General Services Administration
(GSA) has determined that this final
rule is not a significant regulatory action
for the purposes of Executive Order
12866.
41 CFR Part 102–36
16:06 Sep 11, 2006
§ 102–36.5 What is the governing authority
for this part?
B. Executive Order 12866
GENERAL SERVICES
ADMINISTRATION
VerDate Aug<31>2005
contains references to FPMR sections
that no longer exist. Also, Public Law
107–217 revised and restated certain
provisions of the Federal Property and
Administrative Services Act of 1949
(Property Act). For example, the
Property Act provisions found at 40
U.S.C. 471–514 will now generally be
found at 40 U.S.C. 101–705. This final
rule updates the title 40 U.S.C. citations
to reflect the changes made by Public
Law 107–217. Finally, updating or
clarifying revisions were made where
the revisions are seen as administrative
or clerical in nature. This includes a
revised definition of ‘‘Foreign excess
personal property.’’
53571
This final rule is not required to be
published in the Federal Register for
comment. Therefore, the Regulatory
Flexibility Act does not apply.
D. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the changes to the
FMR do not impose information
collection requirements that require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501, et
seq.
E. Small Business Regulatory
Enforcement Fairness Act
This final rule is exempt from
Congressional review under 5 U.S.C.
801 since it relates solely to agency
management and personnel.
For the reasons set forth in the
preamble, GSA amends 41 CFR part
102–36 as set forth below:
I
PART 102–36—DISPOSITION OF
EXCESS PERSONAL PROPERTY
1. The authority citation for 41 CFR
part 102–36 is revised to read as
follows:
I
Authority: 40 U.S.C. 121(c).
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What definitions apply to this
*
*
*
*
GSAXcess is GSA’s website for
reporting, searching and selecting
excess personal property. For
information on using GSAXcess,
access https://www.gsaxcess.gov.
*
*
*
*
*
§ 102–36.50
[Amended]
6. Amend § 102–36.50 by removing
‘‘the Property Act’’ and adding ‘‘title 40
of the United States Code’’ in its place.
I
§ 102–36.55
[Amended]
7. Amend § 102–36.55 by removing
from paragraph (e) ‘‘FEDS’’ and adding
‘‘GSAXcess’’ in its place.
I
2. Revise § 102–36.5 to read as
follows:
I
I
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]]>Agencies
[Federal Register Volume 71, Number 176 (Tuesday, September 12, 2006)]
[Rules and Regulations]
[Pages 53569-53571]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-7620]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 560
Iranian Transactions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule; amendment.
-----------------------------------------------------------------------
SUMMARY: The Office of Foreign Assets Control of the U.S. Department of
the Treasury (``OFAC'') is amending the Iranian Transactions
Regulations, 31 CFR part 560, to revoke the authorizations contained in
Sec. 560.516 with respect to Bank Saderat and to except Bank Saderat
from the scope of Sec. 560.405 and Sec. 560.532(b). These amendments
effectively prohibit all transactions directly or indirectly involving
Bank Saderat. In addition, OFAC is making a technical amendment to
paragraph (a)(1) of Sec. 560.516.
DATES: Effective Date: September 8, 2006.
FOR FURTHER INFORMATION CONTACT: Assistant Director of Compliance
Outreach & Implementation, tel.: 202/622-2490, Assistant Director of
Licensing, tel.: 202/622-2480, Assistant Director of Policy, tel.: 202/
622-4855, or Chief Counsel, tel.: 202/622-2410, Office of Foreign
Assets Control, Department of the Treasury, Washington, DC 20220 (not
toll free numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning the Office of
Foreign Assets Control (``OFAC'') are available from OFAC's Web site
(http: //www.treas.gov/ofac) or via facsimile through a 24-hour fax-on
demand service, tel.: (202) 622-0077.
Background
The Iranian Transactions Regulations, 31 CFR part 560 (the
``ITR''), implement a series of Executive orders, beginning with
Executive Order 12957, issued on March 15, 1995, under the authority of
the International Emergency Economic Powers Act (50 U.S.C. 1701-1706)
(``IEEPA''). In that order, the President declared a national emergency
with respect to the actions and policies of the Government of Iran,
including its support for international terrorism, its efforts to
undermine the Middle East peace process, and its efforts to acquire
weapons of mass destruction and the means to deliver them. To deal with
that threat, Executive Order 12957 imposed prohibitions on certain
transactions with respect to the development of Iranian petroleum
resources. On May 6, 1995, the President issued Executive Order 12959
imposing comprehensive trade sanctions to further respond to this
threat, and on August 19, 1997, the President issued Executive Order
13059 consolidating and clarifying the previous orders.
The Office of Foreign Assets Control (``OFAC'') is amending the ITR
to cut off Bank Saderat, one of the largest Iranian government-owned
banks, from the U.S. financial system. Bank Saderat has been a
significant facilitator of Hizballah's financial activities and has
served as a conduit between the Government of Iran and Hizballah,
Hamas, the Popular Front for the Liberation of Palestine-General
Command, and Palestinian Islamic Jihad.
To cut off Bank Saderat from the U.S. financial system, OFAC is
making three amendments to the ITR that effectively prohibit all
transactions directly or indirectly involving Bank Saderat. OFAC is
amending Sec. 560.516, a general license authorizing payment and U.S.
dollar clearing transactions involving Iran, to revoke its
applicability to Bank Saderat. OFAC is also amending Sec. 560.405, an
interpretive section, and Sec. 560.532(b), a statement of licensing
policy, to exclude Bank Saderat from the scope of these provisions.
Section 560.516(a) authorizes U.S. depository institutions to
process transfers of funds to or from Iran, or for the direct or
indirect benefit of persons in Iran or the Government of Iran, if the
transfer is covered in full by any of the following conditions and does
not involve debiting or crediting an Iranian account: (1) The transfer
is by order of a non-Iranian foreign bank from its own account in a
domestic bank to an account held by a domestic bank for a second non-
Iranian foreign bank; (2) the transfer arises from an underlying
transaction that has been authorized by a specific or general license
issued pursuant to the ITR; (3) the transfer arises from an underlying
transaction that is not prohibited by the ITR; or (4) the transfer
arises from an underlying transaction that is exempted from regulation
pursuant to Sec. 203(b) of IEEPA. Section 560.516(b) authorizes U.S.
registered brokers or dealers in securities to process transfers of
funds to or from Iran, or for the direct or indirect benefit of persons
in Iran or the Government of Iran, if the transfer is covered in full
by any of the conditions set forth in (2)-(4) above and does not
involve debiting or crediting an Iranian account. The term Iranian
account is defined in Sec. 560.320 to mean an account of a person
located in Iran or of the Government of Iran maintained on the books of
either a U.S. depository institution or a U.S. registered broker or
dealer in securities.
OFAC is adding a new paragraph (f) to Sec. 560.516 to revoke the
applicability to Bank Saderat of the general licenses in paragraphs (a)
and (b) of Sec. 560.516. Effective September 8, 2006, transactions
directly or indirectly involving Bank Saderat are excluded from the
scope of these authorizations. OFAC is also including an exception in
this amendment to provide 90 days to wind down or complete performance
of transactions involving Bank Saderat that are described in paragraphs
(a)(2) through (4) or (b) of Sec. 560.516 and that were entered into
before September 8, 2006, except for specific licenses issued pursuant
to Sec. 560.532(b) that were being used before September 8, 2006 to
obtain letters of credit issued by Bank Saderat, for which OFAC is
providing a 180-day wind-down period.
Section 560.405 is an interpretive section providing that
transactions ordinarily incident to licensed transactions and necessary
to give them effect are also authorized, with certain exceptions. OFAC
is adding a new exception to Sec. 560.405 for transactions directly or
indirectly involving Bank Saderat. Effective September 8, 2006, such
transactions will not be authorized
[[Page 53570]]
as transactions ordinarily incident to a licensed transaction. As with
Sec. 560.516, OFAC is providing 90 days to wind down or complete
performance of all transactions involving Bank Saderat that were
entered into before September 8, 2006, except for specific licenses
issued pursuant to Sec. 560.532(b) that were being used before
September 8, 2006 to obtain letters of credit issued by Bank Saderat,
for which OFAC is providing a 180-day wind-down period.
Section 560.532 of the ITR deals with payment for and financing of
commercial sales and exportation or reexportation of agricultural
commodities and products, medicine, and medical devices that are
licensed pursuant to Sec. 560.530. Section 560.532(a) sets forth a
general license authorizing certain payment terms. Section 560.532(b)
provides that specific licenses may be issued on a case-by-case basis
for payment terms and trade financing not authorized by the general
license in paragraph (a). Pursuant to Sec. 560.532(b), OFAC has issued
specific licenses authorizing the use of letters of credit issued by
Iranian banks to pay for authorized agricultural and medical sales.
OFAC is adding a new sentence to Sec. 560.532(b) providing that,
effective September 8, 2006, specific licenses that have been or will
be issued pursuant to this paragraph will not authorize any
transactions involving Bank Saderat. However, with respect to specific
licenses that were being used as of September 8, 2006 to obtain letters
of credit issued by Bank Saderat, OFAC is further amending Sec.
560.532(b) to provide a 180-day wind-down period to complete
performance on any letters of credit issued by Bank Saderat or to
obtain a letter of credit from a different issuing bank.
In addition to the amendments relating to Bank Saderat, OFAC is
also making a technical amendment to Sec. 560.516. Paragraph (a)(1) of
Sec. 560.516 authorizes U.S. depository institutions to process
transfers of funds to or from Iran, or for the direct or indirect
benefit of persons in Iran or the Government of Iran, if the transfer
is by order of a non-Iranian foreign bank from its own account in a
domestic bank to an account held by a domestic bank for a second non-
Iranian foreign bank. OFAC is amending this paragraph by deleting the
word ``second'' to clarify that U.S. depository institutions are
authorized to make transfers between accounts held by different
branches of the same non-Iranian foreign bank.
Public Participation
Because the amendments of the ITR 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.
Paperwork Reduction Act
The collections of information related to the ITR are contained in
31 CFR part 501 (the ``Reporting, Procedures and Penalties
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of information have been approved by
the Office of Management and Budget under control number 1505-0164. An
agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.
List of Subjects in 31 CFR Part 560
Administrative practice and procedure, Banks, Banking, Brokers,
Foreign Trade, Investments, Loans, Securities, Iran.
0
For the reasons set forth in the preamble, the Office of Foreign Assets
Control amends 31 CFR part 560 as follows:
PART 560--IRANIAN TRANSACTIONS REGULATIONS
0
1. The authority citation of part 560 continues to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C.
2349aa-9; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L.
101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 106-387, 114
Stat. 1549; E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O.
12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR
24757, 3 CFR, 1995, Comp., 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997
Comp., p. 217.
Subpart D--Interpretations
0
2. In Sec. 560.405, republish the introductory text, redesignate
paragraphs (a) through (e) as paragraphs (b) through (f), respectively,
and add a new paragraph (a) to read as follows:
Sec. 560.405 Transactions incidental to a licensed transaction
authorized.
Any transaction ordinarily incident to a licensed transaction and
necessary to give effect thereto is also authorized, except:
(a) Effective September 8, 2006, transactions directly or
indirectly involving Bank Saderat, except that transactions involving
Bank Saderat that were entered into before September 8, 2006 may be
performed according to their terms until December 7, 2006.
Note to paragraph (a): But see Sec. 560.532(b), which provides
a 180-day wind-down period for specific licenses that were being
used before September 8, 2006 to obtain letters of credit issued by
Bank Saderat.
* * * * *
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
3. In Sec. 560.516, revise paragraph (a)(1) and add a new paragraph
(f) to read as follows:
Sec. 560.516 Payment and United States dollar clearing transactions
involving Iran.
(a) * * *
(1) The transfer is by order of a foreign bank which is not an
Iranian entity from its own account in a domestic bank (directly or
through a foreign branch or subsidiary of a domestic bank) to an
account held by a domestic bank (directly or through a foreign branch
or subsidiary of a domestic bank) for a foreign bank which is not an
Iranian entity. For purposes of this section, ``foreign bank'' includes
a foreign subsidiary, but not a foreign branch of a domestic bank;
* * * * *
(f) Effective September 8, 2006, this section does not authorize
transactions directly or indirectly involving Bank Saderat, except that
transactions described in paragraphs (a)(2) through (a)(4) or (b) of
this section involving Bank Saderat that were entered into before
September 8, 2006 may be performed according to their terms until
December 7, 2006.
Note to paragraph (f): But see Sec. 560.532(b), which provides
a 180-day wind-down period for specific licenses that were being
used before September 8, 2006 to obtain letters of credit issued by
Bank Saderat.
0
4. In Sec. 560.532, revise paragraph (b) to read as follows:
Sec. 560.532 Payment for and financing of exports and reexports of
commercial commodities, medicine, and medical devices.
* * * * *
(b) Specific licenses for alternate payment terms. Specific
licenses may be issued on a case-by-case basis for payment terms and
trade financing not authorized by the general license in paragraph (a)
of this section for sales pursuant to Sec. 560.530. Effective
September 8, 2006, specific licenses that have been or will be issued
pursuant to this paragraph will not authorize any payment terms or
trade financing involving Bank Saderat, except that, in the case of
specific licenses that were
[[Page 53571]]
being used before September 8, 2006 to obtain letters of credit issued
by Bank Saderat, such letters of credit may continue to be performed
according to their terms until March 7, 2007. See Sec. 501.801(b) of
this chapter for specific licensing procedures.
* * * * *
Dated: September 7, 2006.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 06-7620 Filed 9-8-06; 3:20 pm]
BILLING CODE 4811-37-P
