North Korea Sanctions Regulations, 67912-67918 [2010-27829]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control
• Foreign Assets Control Office

[Federal Register Volume 75, Number 213 (Thursday, November 4, 2010)]
[Rules and Regulations]
[Pages 67912-67918]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-27829]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 510


North Korea Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (``OFAC'') is issuing regulations with respect to North Korea 
to implement Executive Order 13466 of June 26, 2008, and Executive 
Order 13551 of August 30, 2010. OFAC intends to supplement this part 
510 with a more comprehensive set of regulations, which may include 
additional interpretive and definitional guidance and additional 
general licenses and statements of licensing policy.

DATES: Effective Date: November 4, 2010.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Compliance, 
Outreach & Implementation, tel.: 202/622-2490, Assistant Director for 
Licensing, tel.: 202/622-2480, Assistant Director for 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 (not toll free numbers).

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (https://www.treas.gov/ofac). Certain 
general information pertaining to OFAC's sanctions programs also is 
available via facsimile through a 24-hour fax-on-demand service, tel.: 
202/622-0077.

Background

    On June 26, 2008, the President, invoking the authority of, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706) (``IEEPA'') and the National Emergencies Act (50 U.S.C. 1601 et 
seq.) (``NEA''), issued Executive Order 13466 (73 FR 36787, June 27, 
2008) (``E.O. 13466''). On August 30, 2010, the President, invoking the 
authority of, inter alia, IEEPA, the NEA, and section 5 of the United 
Nations Participation Act (22 U.S.C. 287c), issued Executive Order 
13551 (75 FR 53837, September 1, 2010) (``E.O. 13551''), effective at 
12:01 p.m. eastern daylight time on August 30, 2010.
    The Department of the Treasury's Office of Foreign Assets Control 
is issuing the North Korea Sanctions Regulations, 31 CFR part 510 (the 
``Regulations''), to implement E.O. 13466 and E.O. 13551, pursuant to 
authorities delegated to the Secretary of the Treasury in those orders. 
A copy of E.O. 13466 appears in appendix A to this part. A copy of E.O. 
13551 appears in appendix B to this part.
    The Regulations are being published in abbreviated form at this 
time for the purpose of providing immediate guidance to the public. 
OFAC intends to supplement this part 510 with a more comprehensive set 
of regulations, which may include additional interpretive and 
definitional guidance and additional general licenses and statements of 
licensing policy. (The appendices to the Regulations will be removed 
when OFAC supplements this part with a more comprehensive set of 
regulations.)

Public Participation

    Because the Regulations 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 Regulations 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 510

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Credit, North Korea, Services.

[[Page 67913]]


0
For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control adds part 510 to 31 CFR 
Chapter V to read as follows:

PART 510--NORTH KOREA SANCTIONS REGULATIONS

Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
510.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
510.201 Prohibited transactions.
510.202 Effect of transfers violating the provisions of this part.
510.203 Holding of funds in interest-bearing accounts; investment 
and reinvestment.
Subpart C--General Definitions
510.301 Blocked account; blocked property.
510.302 Effective date.
510.303 Entity.
510.304 Interest.
510.305 Licenses; general and specific.
510.306 Person.
510.307 Property; property interest.
510.308 Transfer.
510.309 United States.
510.310 U.S. financial institution.
510.311 United States person; U.S. person.
Subpart D--Interpretations
510.401 [Reserved]
510.402 Effect of amendment.
510.403 Termination and acquisition of an interest in blocked 
property.
510.404 Transactions ordinarily incident to a licensed transaction 
authorized.
510.405 Setoffs prohibited.
510.406 Entities owned by a person whose property and interests in 
property are blocked.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
510.501 [Reserved]
510.502 [Reserved]
510.503 Exclusion from licenses.
510.504 Payments and transfers to blocked accounts in U.S. financial 
institutions.
510.505 Entries in certain accounts for normal service charges 
authorized.
510.506 Provision of certain legal services authorized.
510.507 Authorization of emergency medical services.
Subpart F--[Reserved]
Subpart G--[Reserved]
Subpart H--Procedures
510.801 [Reserved]
510.802 Delegation by the Secretary of the Treasury.
Subpart I--Paperwork Reduction Act
510.901 Paperwork Reduction Act notice.
Appendix A to Part 510--Executive Order 13466
Appendix B to Part 510--Executive Order 13551

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 
2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
E.O. 13466, 73 FR 36787, June 27, 2008, 3 CFR, 2008 Comp., p. 195; 
E.O. 13551, 75 FR 53837, September 1, 2010.

Subpart A--Relation of This Part to Other Laws and Regulations


Sec.  510.101  Relation of this part to other laws and regulations.

    This part is separate from, and independent of, the other parts of 
this chapter, with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. Actions taken pursuant to 
part 501 of this chapter with respect to the prohibitions contained in 
this part are considered actions taken pursuant to this part. Differing 
foreign policy and national security circumstances may result in 
differing interpretations of similar language among the parts of this 
chapter. No license or authorization contained in or issued pursuant to 
those other parts authorizes any transaction prohibited by this part. 
No license or authorization contained in or issued pursuant to any 
other provision of law or regulation authorizes any transaction 
prohibited by this part. No license or authorization contained in or 
issued pursuant to this part relieves the involved parties from 
complying with any other applicable laws or regulations.

    Note to Sec.  510.101: This part has been published in 
abbreviated form for the purpose of providing immediate guidance to 
the public. OFAC intends to supplement this part with a more 
comprehensive set of regulations, which may include additional 
interpretive and definitional guidance and additional general 
licenses and statements of licensing policy.

Subpart B--Prohibitions


Sec.  510.201  Prohibited transactions.

    (a) All transactions prohibited pursuant to Executive Order 13466 
are also prohibited pursuant to this part.

    Note 1 to Sec.  510.201(a): The property and interests in 
property of North Korea or a North Korean national blocked pursuant 
to this paragraph are referred to throughout this part as ``property 
and interests in property blocked pursuant to Sec.  510.201(a).''
    (b) All transactions prohibited pursuant to Executive Order 
13551 are also prohibited pursuant to this part.


    Note 1 to Sec.  510.201:  The names of persons listed in or 
designated pursuant to Executive Order 13551, whose property and 
interests in property are blocked pursuant to this section, are 
published on the Office of Foreign Assets Control's Specially 
Designated Nationals and Blocked Persons List (``SDN'' list) (which 
is accessible via the Office of Foreign Assets Control's Web site), 
published in the Federal Register, and incorporated into Appendix A 
to this chapter with the identifier ``[DPRK].'' See Sec.  510.406 
concerning entities that may not be listed on the SDN list but whose 
property and interests in property are nevertheless blocked pursuant 
to this section.


    Note 2 to Sec.  510.201:  Section 203 of the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706) (``IEEPA'') 
explicitly authorizes the blocking of property and interests in 
property of a person during the pendency of an investigation. The 
names of persons whose property and interests in property are 
blocked pending investigation pursuant to this part also are 
published on the SDN list, published in the Federal Register, and 
incorporated into Appendix A to this chapter with the identifier 
``[BPI-DPRK].''


    Note 3 to Sec.  510.201:  Sections 501.806 and 501.807 of this 
chapter describe the procedures to be followed by persons seeking, 
respectively, the unblocking of funds that they believe were blocked 
due to mistaken identity, or administrative reconsideration of the 
status of their property and interests in property as blocked 
pursuant to Sec.  501.201(a) or of their status as persons whose 
property and interests in property are blocked pursuant to Sec.  
510.201(b).

Sec.  510.202  Effect of transfers violating the provisions of this 
part.

    (a) Any transfer after the effective date that is in violation of 
any provision of this part or of any regulation, order, directive, 
ruling, instruction, or license issued pursuant to this part, and that 
involves any property or interest in property blocked pursuant to Sec.  
510.201 is null and void and shall not be the basis for the assertion 
or recognition of any interest in or right, remedy, power, or privilege 
with respect to such property or property interest.
    (b) No transfer before the effective date shall be the basis for 
the assertion or recognition of any right, remedy, power, or privilege 
with respect to, or any interest in, any property or interest in 
property blocked pursuant to Sec.  510.201, unless the person who holds 
or maintains such property, prior to that date, had written notice of 
the transfer or by any written evidence had recognized such transfer.
    (c) Unless otherwise provided, an appropriate license or other 
authorization issued by the Office of Foreign Assets Control before, 
during, or after a transfer shall validate such transfer or make it 
enforceable to the same extent that it would be valid or enforceable 
but for the provisions of IEEPA, Executive Order 13466,

[[Page 67914]]

Executive Order 13551, this part, and any regulation, order, directive, 
ruling, instruction, or license issued pursuant to this part.
    (d) Transfers of property that otherwise would be null and void or 
unenforceable by virtue of the provisions of this section shall not be 
deemed to be null and void or unenforceable as to any person with whom 
such property is or was held or maintained (and as to such person only) 
in cases in which such person is able to establish to the satisfaction 
of the Office of Foreign Assets Control each of the following:
    (1) Such transfer did not represent a willful violation of the 
provisions of this part by the person with whom such property is or was 
held or maintained (and as to such person only);
    (2) The person with whom such property is or was held or maintained 
did not have reasonable cause to know or suspect, in view of all the 
facts and circumstances known or available to such person, that such 
transfer required a license or authorization issued pursuant to this 
part and was not so licensed or authorized, or, if a license or 
authorization did purport to cover the transfer, that such license or 
authorization had been obtained by misrepresentation of a third party 
or withholding of material facts or was otherwise fraudulently 
obtained; and
    (3) The person with whom such property is or was held or maintained 
filed with the Office of Foreign Assets Control a report setting forth 
in full the circumstances relating to such transfer promptly upon 
discovery that:
    (i) Such transfer was in violation of the provisions of this part 
or any regulation, ruling, instruction, license, or other directive or 
authorization issued pursuant to this part;
    (ii) Such transfer was not licensed or authorized by the Office of 
Foreign Assets Control; or
    (iii) If a license did purport to cover the transfer, such license 
had been obtained by misrepresentation of a third party or withholding 
of material facts or was otherwise fraudulently obtained.

    Note to paragraph (d) of Sec.  510.202: The filing of a report 
in accordance with the provisions of paragraph (d)(3) of this 
section shall not be deemed evidence that the terms of paragraphs 
(d)(1) and (d)(2) of this section have been satisfied.

    (e) Unless licensed pursuant to this part, any attachment, 
judgment, decree, lien, execution, garnishment, or other judicial 
process is null and void with respect to any property or interest in 
property blocked pursuant to Sec.  510.201.


Sec.  510.203  Holding of funds in interest-bearing accounts; 
investment and reinvestment.

    (a) Except as provided in paragraphs (c) or (d) of this section, or 
as otherwise directed by the Office of Foreign Assets Control, any U.S. 
person holding funds, such as currency, bank deposits, or liquidated 
financial obligations, subject to Sec.  510.201 shall hold or place 
such funds in a blocked interest-bearing account located in the United 
States.
    (b)(1) For purposes of this section, the term blocked interest-
bearing account means a blocked account:
    (i) In a federally insured U.S. bank, thrift institution, or credit 
union, provided the funds are earning interest at rates that are 
commercially reasonable; or
    (ii) With a broker or dealer registered with the Securities and 
Exchange Commission under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.), provided the funds are invested in a money market 
fund or in U.S. Treasury bills.
    (2) For purposes of this section, a rate is commercially reasonable 
if it is the rate currently offered to other depositors on deposits or 
instruments of comparable size and maturity.
    (3) Funds held or placed in a blocked account pursuant to this 
paragraph (b) may not be invested in instruments the maturity of which 
exceeds 180 days. If interest is credited to a separate blocked account 
or subaccount, the name of the account party on each account must be 
the same.
    (c) Blocked funds held in instruments the maturity of which exceeds 
180 days at the time the funds become subject to Sec.  510.201 may 
continue to be held until maturity in the original instrument, provided 
any interest, earnings, or other proceeds derived therefrom are paid 
into a blocked interest-bearing account in accordance with paragraphs 
(b) or (d) of this section.
    (d) Blocked funds held in accounts or instruments outside the 
United States at the time the funds become subject to Sec.  510.201 may 
continue to be held in the same type of accounts or instruments, 
provided the funds earn interest at rates that are commercially 
reasonable.
    (e) This section does not create an affirmative obligation for the 
holder of blocked tangible property, such as chattels or real estate, 
or of other blocked property, such as debt or equity securities, to 
sell or liquidate such property. However, the Office of Foreign Assets 
Control may issue licenses permitting or directing such sales or 
liquidation in appropriate cases.
    (f) Funds subject to this section may not be held, invested, or 
reinvested in a manner that provides immediate financial or economic 
benefit or access to North Korea or any North Korean national who has 
property or interests in property blocked pursuant to Sec.  510.201(a) 
or any person whose property and interests in property are blocked 
pursuant to Sec.  510.201(b), nor may their holder cooperate in or 
facilitate the pledging or other attempted use as collateral of blocked 
funds or other assets.

Subpart C--General Definitions


Sec.  510.301  Blocked account; blocked property.

    The terms blocked account and blocked property shall mean any 
account or property subject to the prohibitions in Sec.  510.201, and 
either blocked pursuant to Sec.  510.201(a) or held in the name of a 
person whose property and interests in property are blocked pursuant to 
Sec.  510.201(b), or in which such person has an interest, and with 
respect to which payments, transfers, exportations, withdrawals, or 
other dealings may not be made or effected except pursuant to an 
authorization or license from the Office of Foreign Assets Control 
expressly authorizing such action.

    Note to Sec.  510.301: See Sec.  510.406 concerning the blocked 
status of property and interests in property of an entity that is 50 
percent or more owned by a person whose property and interests in 
property are blocked pursuant to Sec.  510.201.

Sec.  510.302  Effective date.

    The term effective date refers to the effective date of the 
applicable prohibitions and directives contained in this part as 
follows:
    (a) With respect to property and interests in property blocked 
pursuant to E.O. 13466, June 26, 2008;

    Note to paragraph (a): Prior to June 26, 2008, all property and 
interests in property currently blocked pursuant to E.O. 13466 were 
blocked pursuant to 31 CFR part 500.

    (b) With respect to a person listed in the Annex to E.O. 13551, 
12:01 p.m. eastern daylight time, August 30, 2010; or
    (c) With respect to a person whose property and interests in 
property are otherwise blocked pursuant to E.O. 13551, the earlier of 
the date of actual or constructive notice that such person's property 
and interests in property are blocked.


Sec.  510.303  Entity.

    The term entity means a partnership, association, trust, joint 
venture, corporation, group, subgroup, or other organization.

[[Page 67915]]

Sec.  510.304  Interest.

    Except as otherwise provided in this part, the term interest, when 
used with respect to property (e.g., ``an interest in property''), 
means an interest of any nature whatsoever, direct or indirect.


Sec.  510.305  Licenses; general and specific.

    (a) Except as otherwise specified, the term license means any 
license or authorization contained in or issued pursuant to this part.
    (b) The term general license means any license or authorization the 
terms of which are set forth in subpart E of this part.
    (c) The term specific license means any license or authorization 
not set forth in subpart E of this part but issued pursuant to this 
part.

    Note to Sec.  510.305: See Sec.  501.801 of this chapter on 
licensing procedures.

Sec.  510.306  Person.

    The term person means an individual or entity.


Sec.  510.307  Property; property interest.

    The terms property and property interest include, but are not 
limited to, money, checks, drafts, bullion, bank deposits, savings 
accounts, debts, indebtedness, obligations, notes, guarantees, 
debentures, stocks, bonds, coupons, any other financial instruments, 
bankers acceptances, mortgages, pledges, liens or other rights in the 
nature of security, warehouse receipts, bills of lading, trust 
receipts, bills of sale, any other evidences of title, ownership or 
indebtedness, letters of credit and any documents relating to any 
rights or obligations thereunder, powers of attorney, goods, wares, 
merchandise, chattels, stocks on hand, ships, goods on ships, real 
estate mortgages, deeds of trust, vendors' sales agreements, land 
contracts, leaseholds, ground rents, real estate and any other interest 
therein, options, negotiable instruments, trade acceptances, royalties, 
book accounts, accounts payable, judgments, patents, trademarks or 
copyrights, insurance policies, safe deposit boxes and their contents, 
annuities, pooling agreements, services of any nature whatsoever, 
contracts of any nature whatsoever, and any other property, real, 
personal, or mixed, tangible or intangible, or interest or interests 
therein, present, future, or contingent.


Sec.  510.308  Transfer.

    The term transfer means any actual or purported act or transaction, 
whether or not evidenced by writing, and whether or not done or 
performed within the United States, the purpose, intent, or effect of 
which is to create, surrender, release, convey, transfer, or alter, 
directly or indirectly, any right, remedy, power, privilege, or 
interest with respect to any property. Without limitation on the 
foregoing, it shall include the making, execution, or delivery of any 
assignment, power, conveyance, check, declaration, deed, deed of trust, 
power of attorney, power of appointment, bill of sale, mortgage, 
receipt, agreement, contract, certificate, gift, sale, affidavit, or 
statement; the making of any payment; the setting off of any obligation 
or credit; the appointment of any agent, trustee, or fiduciary; the 
creation or transfer of any lien; the issuance, docketing, filing, or 
levy of or under any judgment, decree, attachment, injunction, 
execution, or other judicial or administrative process or order, or the 
service of any garnishment; the acquisition of any interest of any 
nature whatsoever by reason of a judgment or decree of any foreign 
country; the fulfillment of any condition; the exercise of any power of 
appointment, power of attorney, or other power; or the acquisition, 
disposition, transportation, importation, exportation, or withdrawal of 
any security.


Sec.  510.309  United States.

    The term United States means the United States, its territories and 
possessions, and all areas under the jurisdiction or authority thereof.


Sec.  510.310  U.S. financial institution.

    The term U.S. financial institution means any U.S. entity 
(including its foreign branches) that is engaged in the business of 
accepting deposits, making, granting, transferring, holding, or 
brokering loans or credits, or purchasing or selling foreign exchange, 
securities, commodity futures or options, or procuring purchasers and 
sellers thereof, as principal or agent. It includes but is not limited 
to depository institutions, banks, savings banks, trust companies, 
securities brokers and dealers, commodity futures and options brokers 
and dealers, forward contract and foreign exchange merchants, 
securities and commodities exchanges, clearing corporations, investment 
companies, employee benefit plans, and U.S. holding companies, U.S. 
affiliates, or U.S. subsidiaries of any of the foregoing. This term 
includes those branches, offices and agencies of foreign financial 
institutions that are located in the United States, but not such 
institutions' foreign branches, offices, or agencies.


Sec.  510.311  United States person; U.S. person.

    The term United States person or U.S. person means any United 
States citizen, permanent resident alien, entity organized under the 
laws of the United States or any jurisdiction within the United States 
(including foreign branches), or any person in the United States.

Subpart D--Interpretations


Sec.  510.401  [Reserved]


Sec.  510.402  Effect of amendment.

    Unless otherwise specifically provided, any amendment, 
modification, or revocation of any provision in this part, any 
provision in or appendix to this chapter, or any order, regulation, 
ruling, instruction, or license issued by the Office of Foreign Assets 
Control does not affect any act done or omitted, or any civil or 
criminal proceeding commenced or pending, prior to such amendment, 
modification, or revocation. All penalties, forfeitures, and 
liabilities under any such order, regulation, ruling, instruction, or 
license continue and may be enforced as if such amendment, 
modification, or revocation had not been made.


Sec.  510.403  Termination and acquisition of an interest in blocked 
property.

    (a) Whenever a transaction licensed or authorized by or pursuant to 
this part results in the transfer of property (including any property 
interest) away from a person, such property shall no longer be deemed 
to be property blocked pursuant to Sec.  510.201, unless there exists 
in the property another interest that is blocked pursuant to Sec.  
510.201 or any other part of this chapter, the transfer of which has 
not been effected pursuant to license or other authorization.
    (b) Unless otherwise specifically provided in a license or 
authorization issued pursuant to this part, if property (including any 
property interest) is transferred or attempted to be transferred to a 
person whose property and interests in property are blocked pursuant to 
Sec.  510.201(b), such property shall be deemed to be property in which 
that person has an interest and therefore blocked.


Sec.  510.404  Transactions ordinarily incident to a licensed 
transaction authorized.

    Any transaction ordinarily incident to a licensed transaction and 
necessary to give effect thereto is also authorized, except:
    (a) An ordinarily incident transaction, not explicitly authorized 
within the terms of the license, by or with a person

[[Page 67916]]

whose property and interests in property are blocked pursuant to Sec.  
510.201(b); or
    (b) An ordinarily incident transaction, not explicitly authorized 
within the terms of the license, involving a debit to a blocked account 
or a transfer of blocked property.


Sec.  510.405  Setoffs prohibited.

    A setoff against blocked property (including a blocked account), 
whether by a U.S. bank or other U.S. person, is a prohibited transfer 
under Sec.  510.201 if effected after the effective date.


Sec.  510.406  Entities owned by a person whose property and interests 
in property are blocked.

    A person whose property and interests in property are blocked 
pursuant to Sec.  510.201(b) has an interest in all property and 
interests in property of an entity in which it owns, directly or 
indirectly, a 50 percent or greater interest. The property and 
interests in property of such an entity, therefore, are blocked, and 
such an entity is a person whose property and interests in property are 
blocked pursuant to Sec.  510.201(b), regardless of whether the entity 
itself is listed in the Annex or designated pursuant to Executive Order 
13551.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  510.501  [Reserved]


Sec.  510.502  [Reserved]


Sec.  510.503  Exclusion from licenses.

    The Office of Foreign Assets Control reserves the right to exclude 
any person, property, or transaction from the operation of any license 
or from the privileges conferred by any license. The Office of Foreign 
Assets Control also reserves the right to restrict the applicability of 
any license to particular persons, property, transactions, or classes 
thereof. Such actions are binding upon actual or constructive notice of 
the exclusions or restrictions.


Sec.  510.504  Payments and transfers to blocked accounts in U.S. 
financial institutions.

    Any payment of funds or transfer of credit in which a person whose 
property and interests in property are blocked pursuant to Sec.  
510.201(b) has any interest that comes within the possession or control 
of a U.S. financial institution must be blocked in an account on the 
books of that financial institution. A transfer of funds or credit by a 
U.S. financial institution between blocked accounts in its branches or 
offices is authorized, provided that no transfer is made from an 
account within the United States to an account held outside the United 
States, and further provided that a transfer from a blocked account may 
be made only to another blocked account held in the same name.

    Note to Sec.  510.504:  See Sec.  501.603 of this chapter for 
mandatory reporting requirements regarding financial transfers. See 
also Sec.  510.203 concerning the obligation to hold blocked funds 
in interest-bearing accounts.

Sec.  510.505  Entries in certain accounts for normal service charges 
authorized.

    (a) A U.S. financial institution is authorized to debit any blocked 
account held at that financial institution in payment or reimbursement 
for normal service charges owed it by the owner of that blocked 
account.
    (b) As used in this section, the term normal service charges shall 
include charges in payment or reimbursement for interest due; cable, 
telegraph, Internet, or telephone charges; postage costs; custody fees; 
small adjustment charges to correct bookkeeping errors; and, but not by 
way of limitation, minimum balance charges, notary and protest fees, 
and charges for reference books, photocopies, credit reports, 
transcripts of statements, registered mail, insurance, stationery and 
supplies, and other similar items.


Sec.  510.506  Provision of certain legal services authorized.

    (a) The provision of the following legal services to or on behalf 
of persons whose property and interests in property are blocked 
pursuant to Sec.  510.201(b) is authorized, provided that all receipts 
of payment of professional fees and reimbursement of incurred expenses 
must be specifically licensed:
    (1) Provision of legal advice and counseling on the requirements of 
and compliance with the laws of the United States or any jurisdiction 
within the United States, provided that such advice and counseling are 
not provided to facilitate transactions in violation of this part;
    (2) Representation of persons named as defendants in or otherwise 
made parties to domestic U.S. legal, arbitration, or administrative 
proceedings;
    (3) Initiation and conduct of domestic U.S. legal, arbitration, or 
administrative proceedings in defense of property interests subject to 
U.S. jurisdiction;
    (4) Representation of persons before any federal or state agency 
with respect to the imposition, administration, or enforcement of U.S. 
sanctions against such persons; and
    (5) Provision of legal services in any other context in which 
prevailing U.S. law requires access to legal counsel at public expense.
    (b) The provision of any other legal services to persons whose 
property and interests in property are blocked pursuant to Sec.  
510.201(b), not otherwise authorized in this part, requires the 
issuance of a specific license.
    (c) Entry into a settlement agreement or the enforcement of any 
lien, judgment, arbitral award, decree, or other order through 
execution, garnishment, or other judicial process purporting to 
transfer or otherwise alter or affect property or interests in property 
blocked pursuant to Sec.  510.201 is prohibited unless licensed 
pursuant to this part.


Sec.  510.507  Authorization of emergency medical services.

    The provision of nonscheduled emergency medical services in the 
United States to persons whose property and interests in property are 
blocked pursuant to Sec.  510.201(b) is authorized, provided that all 
receipt of payment for such services must be specifically licensed.

Subpart F--[Reserved]

Subpart G--[Reserved]

Subpart H--Procedures


Sec.  510.801  [Reserved]


Sec.  510.802  Delegation by the Secretary of the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to Executive Order 13466 of June 26, 2008 (73 FR 36787, June 
27, 2008), or Executive Order 13551 of August 30, 2010 (75 FR 53837, 
September 1, 2010), and any further Executive orders relating to the 
national emergency declared in Executive Order 13466, may be taken by 
the Director of the Office of Foreign Assets Control or by any other 
person to whom the Secretary of the Treasury has delegated authority so 
to act.

Subpart I--Paperwork Reduction Act


Sec.  510.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (``OMB'') under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) of information 
collections relating to recordkeeping and reporting requirements, 
licensing procedures (including those pursuant to statements of 
licensing policy), and other procedures, see Sec.  501.901 of this 
chapter. An agency may not conduct or

[[Page 67917]]

sponsor, and a person is not required to respond to, a collection of 
information unless it displays a valid control number assigned by OMB.

Appendix A to Part 510--Executive Order 13466

Executive Order 13466 of June 26, 2008

Continuing Certain Restrictions With Respect to North Korea and North 
Korean Nationals

    By the authority vested in me as President by the Constitution 
and the laws of the United States of America, including the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
(IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) 
(NEA), and section 301 of title 3, United States Code, I, GEORGE W. 
BUSH, President of the United States of America, find that the 
current existence and risk of the proliferation of weapons-usable 
fissile material on the Korean Peninsula constitute an unusual and 
extraordinary threat to the national security and foreign policy of 
the United States, and I hereby declare a national emergency to deal 
with that threat. I further find that, as we deal with that threat 
through multilateral diplomacy, it is necessary to continue certain 
restrictions with respect to North Korea that would otherwise be 
lifted pursuant to a forthcoming proclamation that will terminate 
the exercise of authorities under the Trading With the Enemy Act (50 
U.S.C. App. 1 et seq.) (TWEA) with respect to North Korea.
    Accordingly, I hereby order:
    Section 1. Except to the extent provided in statutes or in 
regulations, orders, directives, or licenses that may be issued 
pursuant to this order, and notwithstanding any contract entered 
into or any license or permit granted prior to the date of this 
order, the following are blocked and may not be transferred, paid, 
exported, withdrawn, or otherwise dealt in:
    All property and interests in property of North Korea or a North 
Korean national that, pursuant to the President's authorities under 
the TWEA, the exercise of which has been continued in accordance 
with section 101(b) of Public Law 95-223 (91 Stat. 1625; 50 U.S.C. 
App. 5(b) note), were blocked as of June 16, 2000, and remained 
blocked immediately prior to the date of this order.
    Sec. 2. Except to the extent provided in statutes or in 
regulations, orders, directives, or licenses that may be issued 
pursuant to this order, and notwithstanding any contract entered 
into or any license or permit granted prior to the date of this 
order, United States persons may not register a vessel in North 
Korea, obtain authorization for a vessel to fly the North Korean 
flag, or own, lease, operate, or insure any vessel flagged by North 
Korea.
    Sec. 3. (a) Any transaction by a United States person or within 
the United States that evades or avoids, has the purpose of evading 
or avoiding, or attempts to violate any of the prohibitions set 
forth in this order is prohibited.
    (b) Any conspiracy formed to violate any of the prohibitions set 
forth in this order is prohibited.
    Sec. 4. For the purposes of this order:
    (a) The term ``person'' means an individual or entity;
    (b) The term ``entity'' means a partnership, association, trust, 
joint venture, corporation, group, subgroup, or other organization; 
and
    (c) The term ``United States person'' means any United States 
citizen, permanent resident alien, entity organized under the laws 
of the United States or any jurisdiction within the United States 
(including foreign branches), or any person in the United States.
    Sec. 5. The Secretary of the Treasury, after consultation with 
the Secretary of State, is hereby authorized to take such actions, 
including the promulgation of rules and regulations, and to employ 
all powers granted to the President by IEEPA as may be necessary to 
carry out the purposes of this order. The Secretary of the Treasury 
may redelegate any of these functions to other officers and agencies 
of the United States Government consistent with applicable law. All 
agencies of the United States Government are hereby directed to take 
all appropriate measures within their authority to carry out the 
provisions of this order.
    Sec. 6. The Secretary of the Treasury, after consultation with 
the Secretary of State, is hereby authorized to submit the recurring 
and final reports to the Congress on the national emergency declared 
in this order, consistent with section 401(c) of the NEA (50 U.S.C. 
1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).
    Sec. 7. This order is not intended to, and does not, create any 
right or benefit, substantive or procedural, enforceable at law or 
in equity by any party against the United States, its departments, 
agencies, instrumentalities, or entities, its officers or employees, 
or any other person.

George W. Bush,
THE WHITE HOUSE,
June 26, 2008.

Appendix B to Part 510--Executive Order 13551

Executive Order 13551 of August 30, 2010

Blocking Property of Certain Persons With Respect to North Korea

    By the authority vested in me as President by the Constitution 
and the laws of the United States of America, including the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
(IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), 
section 5 of the United Nations Participation Act of 1945 (22 U.S.C. 
287c) (UNPA), and section 301 of title 3, United States Code; in 
view of United Nations Security Council Resolution (UNSCR) 1718 of 
October 14, 2006, and UNSCR 1874 of June 12, 2009; and to take 
additional steps with respect to the situation in North Korea.
    I, BARACK OBAMA, President of the United States of America, 
hereby expand the scope of the national emergency declared in 
Executive Order 13466 of June 26, 2008, finding that the continued 
actions and policies of the Government of North Korea, manifested 
most recently by its unprovoked attack that resulted in the sinking 
of the Republic of Korea Navy ship Cheonan and the deaths of 46 
sailors in March 2010; its announced test of a nuclear device and 
its missile launches in 2009; its actions in violation of UNSCRs 
1718 and 1874, including the procurement of luxury goods; and its 
illicit and deceptive activities in international markets through 
which it obtains financial and other support, including money 
laundering, the counterfeiting of goods and currency, bulk cash 
smuggling, and narcotics trafficking, destabilize the Korean 
peninsula and imperil U.S. Armed Forces, allies, and trading 
partners in the region, and thereby constitute an unusual and 
extraordinary threat to the national security, foreign policy, and 
economy of the United States.
    I hereby order:
    Section 1. (a) All property and interests in property that are 
in the United States, that hereafter come within the United States, 
or that are or hereafter come within the possession or control of 
any United States person, including any overseas branch, of the 
following persons are blocked and may not be transferred, paid, 
exported, withdrawn, or otherwise dealt in:
    (i) The persons listed in the Annex to this order; and
    (ii) Any person determined by the Secretary of the Treasury, in 
consultation with the Secretary of State:
    (A) To have, directly or indirectly, imported, exported, or 
reexported to, into, or from North Korea any arms or related 
materiel;
    (B) To have, directly or indirectly, provided training, advice, 
or other services or assistance, or engaged in financial 
transactions, related to the manufacture, maintenance, or use of any 
arms or related materiel to be imported, exported, or reexported to, 
into, or from North Korea, or following their importation, 
exportation, or reexportation to, into, or from North Korea;
    (C) To have, directly or indirectly, imported, exported, or 
reexported luxury goods to or into North Korea;
    (D) To have, directly or indirectly, engaged in money 
laundering, the counterfeiting of goods or currency, bulk cash 
smuggling, narcotics trafficking, or other illicit economic activity 
that involves or supports the Government of North Korea or any 
senior official thereof;
    (E) To have materially assisted, sponsored, or provided 
financial, material, or technological support for, or goods or 
services to or in support of, the activities described in 
subsections (a)(ii)(A)-(D) of this section or any person whose 
property and interests in property are blocked pursuant to this 
order;
    (F) To be owned or controlled by, or to have acted or purported 
to act for or on behalf of, directly or indirectly, any person whose 
property and interests in property are blocked pursuant to this 
order; or (G) to have attempted to engage in any of the activities 
described in subsections (a)(ii)(A)-(F) of this section.
    (b) I hereby determine that, to the extent section 203(b)(2) of 
IEEPA (50 U.S.C. 1702(b)(2)) may apply, the making of donations of 
the types of articles specified in such section by, to, or for the 
benefit of any person whose property and interests in property are 
blocked pursuant to this order would seriously impair my ability to 
deal with the national emergency declared in

[[Page 67918]]

Executive Order 13466 and expanded in scope in this order, and I 
hereby prohibit such donations as provided by subsection (a) of this 
section.
    (c) The prohibitions in subsection (a) of this section include, 
but are not limited to:
    (i) The making of any contribution or provision of funds, goods, 
or services by, to, or for the benefit of any person whose property 
and interests in property are blocked pursuant to this order; and
    (ii) The receipt of any contribution or provision of funds, 
goods, or services from any such person.
    (d) The prohibitions in subsection (a) of this section apply 
except to the extent provided by statutes, or in regulations, 
orders, directives, or licenses that may be issued pursuant to this 
order, and notwithstanding any contract entered into or any license 
or permit granted prior to the effective date of this order.
    Sec. 2. (a) Any transaction by a United States person or within 
the United States that evades or avoids, has the purpose of evading 
or avoiding, causes a violation of, or attempts to violate any of 
the prohibitions set forth in this order is prohibited.
    (b) Any conspiracy formed to violate any of the prohibitions set 
forth in this order is prohibited.
    Sec. 3. The provisions of Executive Order 13466 remain in 
effect, and this order does not affect any action taken pursuant to 
that order.
    Sec. 4. For the purposes of this order:
    (a) The term ``person'' means an individual or entity;
    (b) The term ``entity'' means a partnership, association, trust, 
joint venture, corporation, group, subgroup, or other organization;
    (c) The term ``United States person'' means any United States 
citizen, permanent resident alien, entity organized under the laws 
of the United States or any jurisdiction within the United States 
(including foreign branches), or any person in the United States;
    (d) The term ``North Korea'' includes the territory of the 
Democratic People's Republic of Korea and the Government of North 
Korea;
    (e) The term ``Government of North Korea'' means the Government 
of the Democratic People's Republic of Korea, its agencies, 
instrumentalities, and controlled entities; and
    (f) The term ``luxury goods'' includes those items listed in 15 
CFR 746.4(b)(l) and Supplement No. 1 to part 746 and similar items.
    Sec. 5. For those persons whose property and interests in 
property are blocked pursuant to this order who might have a 
constitutional presence in the United States, I find that because of 
the ability to transfer funds or other assets instantaneously, prior 
notice to such persons of measures to be taken pursuant to this 
order would render these measures ineffectual. I therefore determine 
that for these measures to be effective in addressing the national 
emergency declared in Executive Order 13466 and expanded in scope in 
this order, there need be no prior notice of a listing or 
determination made pursuant to section 1(a) of this order.
    Sec. 6. The Secretary of the Treasury, in consultation with the 
Secretary of State, is hereby authorized to take such actions, 
including the promulgation of rules and regulations, and to employ 
all powers granted to the President by IEEPA and the UNPA, as may be 
necessary to carry out the purposes of this order. The Secretary of 
the Treasury may redelegate any of these functions to other officers 
and agencies of the United States Government consistent with 
applicable law. All agencies of the United States Government are 
hereby directed to take all appropriate measures within their 
authority to carry out the provisions of this order.
    Sec. 7. The Secretary of the Treasury, in consultation with the 
Secretary of State, is hereby authorized to determine that 
circumstances no longer warrant the blocking of the property and 
interests in property of a person listed in the Annex to this order, 
and to take necessary action to give effect to that determination.
    Sec. 8. This order is not intended to, and does not, create any 
right or benefit, substantive or procedural, enforceable at law or 
in equity by any party against the United States, its departments, 
agencies, or entities, its officers, employees, agents, or any other 
person.
    Sec. 9. This order is effective at 12:01 p.m., eastern daylight 
time on August 30, 2010.

Barack Obama,
THE WHITE HOUSE,
August 30, 2010.

ANNEX

Individual

1. KIM Yong Chol [born 1946 or 1947]

Entities

1. Green Pine Associated Corporation
2. Reconnaissance General Bureau
3. Office 39

    Dated: October 26, 2010.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
    Approved: October 28, 2010.
Stuart A. Levey,
Under Secretary, Office of Terrorism and Financial Intelligence, 
Department of the Treasury.
[FR Doc. 2010-27829 Filed 11-3-10; 8:45 am]
BILLING CODE 4810-AL-P