Burmese Sanctions Regulations, 31169-31171 [2016-11677]
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Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Rules and Regulations
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[FR Doc. C1–2016–04800 Filed 5–17–16; 8:45 am]
BILLING CODE 1505–01–D
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 537
Burmese Sanctions Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is amending the
Burmese Sanctions Regulations to add a
general license authorizing certain
transactions related to U.S. persons
residing in Burma. OFAC is also
incorporating a general license
authorizing certain transactions incident
to exports to and from Burma that has,
until now, appeared only on OFAC’s
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SUMMARY:
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Web site on the Burma sanctions page,
and expanding this authorization to
allow certain transactions incident to
the movement of goods within Burma
that otherwise would be prohibited.
Finally, OFAC is expanding and
updating another existing authorization
allowing most transactions involving
certain blocked financial institutions.
DATES: Effective: May 18, 2016.
FOR FURTHER INFORMATION CONTACT: The
Department of the Treasury’s Office of
Foreign Assets Control: Assistant
Director for Licensing, tel.: 202–622–
2480, Assistant Director for Regulatory
Affairs, tel.: 202–622–4855, Assistant
Director for Sanctions Compliance &
Evaluation, tel.: 202–622–2490; or the
Department of the Treasury’s Office of
the Chief Counsel (Foreign Assets
Control), Office of the General Counsel,
tel.: 202–622–2410.
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional
information concerning OFAC are
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available from OFAC’s Web site
(www.treasury.gov/ofac). Certain general
information pertaining to OFAC’s
sanctions programs also is available via
facsimile through a 24-hour fax-ondemand service, tel.: 202–622–0077.
Background
On June 30, 2014, the Department of
the Treasury’s Office of Foreign Assets
Control (OFAC) amended and reissued
in their entirety the Burmese Sanctions
Regulations, 31 CFR part 537 (the
‘‘Regulations’’), to implement Executive
Order 13448 of October 18, 2007,
‘‘Blocking Property and Prohibiting
Certain Transactions Related to Burma,’’
Executive Order 13464 of April 30,
2008, ‘‘Blocking Property and
Prohibiting Certain Transactions Related
to Burma,’’ Executive Order 13619 of
July 11, 2012, ‘‘Blocking Property of
Persons Threatening the Peace, Security,
or Stability of Burma,’’ and Executive
Order 13651 of August 6, 2013,
‘‘Prohibiting Certain Imports of Burmese
Jadeite and Rubies’’ (79 FR 37106).
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31169
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31170
Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Rules and Regulations
Following Burma’s peaceful and
competitive elections in 2015, the U.S.
Government is taking additional steps to
support Burma’s political reforms and
broad-based economic growth.
Transactions related to U.S. persons
residing in Burma. OFAC is adding a
general license in section 537.525 to
authorize certain transactions related to
maintenance of U.S. persons residing in
Burma, including payment of living
expenses and acquisition of goods or
services for personal use. This general
license complements the existing
exemption in section 537.210(c) of the
Regulations for travel to or from Burma,
including maintenance within Burma,
such as payment of living expenses and
acquisition of goods or services for
personal use.
Trade-related transactions. In
December 2015, OFAC issued and made
available on its Web site General
License No. 20, a six-month general
license authorizing certain transactions
ordinarily incident to exportations to or
from Burma of goods, technology, or
non-financial services that are otherwise
prohibited by the Regulations and
unblocking certain previously blocked
transactions. Today, OFAC is amending
the Regulations by adding section
537.532 to incorporate that general
license, to remove its six-month time
limitation, and to expand this
authorization to allow additional
transactions incident to the movement
of goods within Burma.
Banking services. In February 2013,
OFAC issued and made available on its
Web site General License No. 19, and
subsequently added this authorization
to the Regulations at section 537.531,
authorizing most transactions, including
opening and maintaining accounts and
conducting other financial services,
involving four of Burma’s major
financial institutions that were then
included on OFAC’s Specially
Designated Nationals and Blocked
Persons List (SDN List): Asia Green
Development Bank, Ayeyarwady Bank,
Myanma Economic Bank (MEB), and
Myanma Investment and Commercial
Bank (MICB). In an action coordinated
with these regulatory amendments,
OFAC has delisted two of these
financial institutions, MEB and MICB.
As a result of that action, transactions
involving these two institutions are no
longer prohibited and therefore do not
require an OFAC license. Accordingly,
OFAC is amending section 537.531 to
remove their names. At the same time,
to further support Burma’s broad-based
economic growth, OFAC is adding two
other Burmese financial institutions,
Innwa Bank and Myawaddy Bank, to the
general license at section 537.531,
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thereby authorizing most transactions
involving those institutions.
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
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.
§ 537.525 Certain transactions related to
U.S. persons residing in Burma authorized.
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 537
Administrative practice and
procedure, Banks, Banking, Blocking of
assets, Credit, Burma, Exportation,
Exports, Foreign trade, Investments,
Loans, New investment, Securities,
Services, Specially Designated
Nationals.
For the reasons set forth in the
preamble, the Department of the
Treasury’s Office of Foreign Assets
Control amends 31 CFR part 537 as set
forth below:
PART 537—BURMESE SANCTIONS
REGULATIONS
1. The authority citation for part 537
is revised to read as follows:
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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);
Sec. 570, Pub. L. 104–208, 110 Stat. 3009;
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C.
1701 note); Pub. L. 110–286, 122 Stat. 2632
(50 U.S.C. 1701 note); E.O. 13047, 62 FR
28301, 3 CFR, 1997 Comp., p. 202; E.O.
13310, 68 FR 44853, 3 CFR, 2003 Comp., p.
241; E.O. 13448, 72 FR 60223, 3 CFR, 2007
Comp., p. 304; E.O. 13464, 73 FR 24491, 3
CFR, 2008 Comp., p. 189; E.O. 13619, 77 FR
41243, 3 CFR, 2012 Comp., p. 279; E.O.
13651, 78 FR 48793, 3 CFR, 2014 Comp., p.
324; Determination No. 2009–11, 74 FR 3957,
3 CFR, 2009 Comp., p. 330.
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2. Add § 537.525 to read as follows:
(a) U.S. persons are authorized to
engage in transactions in Burma
ordinarily incident to the routine and
necessary maintenance within Burma,
including payment of living expenses
and acquisition of goods or services for
personal use, of U.S. person individuals
who reside in Burma.
(b) Nothing in this section authorizes
transactions related to employment of a
U.S. person by a person whose property
and interests in property are blocked
pursuant to § 537.201(a).
Note to § 537.525: See § 537.210(c) for an
exemption for transactions ordinarily
incident to travel to or from Burma,
including maintenance within Burma, such
as payment of living expenses and
acquisition of goods or services for personal
use.
3. Amend § 537.531 by revising the
section heading, revising paragraphs (a),
(b), and (d), and revising the Note to
§ 537.531 to read as follows:
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§ 537.531 Certain transactions involving
Asia Green Development Bank, Ayeyarwady
Bank, Innwa Bank, and Myawaddy Bank
authorized.
(a) Except as provided in paragraphs
(b) through (f) of this section, all
transactions involving Asia Green
Development Bank, Ayeyarwady Bank,
Innwa Bank, and Myawaddy Bank are
authorized.
(b) This section does not authorize
transactions involving any person
whose property and interests in
property are blocked pursuant to
§ 537.201(a) other than Asia Green
Development Bank, Ayeyarwady Bank,
Innwa Bank, and Myawaddy Bank.
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(d) This section does not authorize
any new investment, as defined in
§ 537.311, including in or with Asia
Green Development Bank, Ayeyarwady
Bank, Innwa Bank, or Myawaddy Bank.
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Note to § 537.531: As a result of the
authorization contained in this section, the
special measures against Burma imposed
under Section 311 of the Uniting and
Strengthening America by Providing
Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT) Act of
2001 (Pub. L. 107–56) (USA PATRIOT Act)
do not apply to the operation of
correspondent accounts for Asia Green
Development Bank, Ayeyarwady Bank,
Innwa Bank, and Myawaddy Bank, or to
transactions conducted through such
accounts, provided the transactions are
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Federal Register / Vol. 81, No. 96 / Wednesday, May 18, 2016 / Rules and Regulations
authorized pursuant to this part, and
therefore fall within the exception set forth
in 31 CFR 1010.651(b)(3). This section does
not affect any obligation of U.S. financial
institutions processing such transactions to
conduct enhanced due diligence under
Section 312 of the USA PATRIOT Act. See
31 CFR 1010.610(c).
4. Add § 537.532 to subpart E to read
as follows:
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§ 537.532 Certain transactions incident to
exportations to or from Burma authorized;
certain transactions incident to the
movement of goods within Burma
authorized.
(a) Certain transactions incident to
exportations to or from Burma
authorized. Except as provided in
paragraph (c), all transactions otherwise
prohibited by §§ 537.201 and 537.202
that are ordinarily incident to an
exportation to or from Burma of goods,
technology, or non-financial services, as
defined in paragraph (f) of this section,
are authorized, provided the exportation
is not to, from, or on behalf of a person
whose property and interests in
property are blocked pursuant to
§ 537.201(a).
(b) Unblocking of certain property
previously blocked as part of a
transaction incident to an exportation to
or from Burma authorized. U.S.
financial institutions, as defined in
§ 537.320, are authorized to engage in
all transactions necessary to unblock
and return property blocked as part of
a transaction on or after April 1, 2015
that would have qualified as authorized
had it been engaged in under paragraph
(a) of this section. U.S. financial
institutions unblocking property
pursuant to this section must submit a
report to the Department of the
Treasury, Office of Foreign Assets
Control, Attn: Sanctions Compliance &
Evaluation Division, 1500 Pennsylvania
Avenue NW., Annex, Washington, DC
20220 within 10 business days from the
date such property is unblocked. Such
reports shall include the following:
(1) A copy of the original blocking
report filed with OFAC pursuant to
§ 501.603(b)(1) of this chapter;
(2) The date the property was
unblocked;
(3) If applicable, the amount
unblocked;
(4) The name of the party to whom the
blocked property was returned; and
(5) A reference to this general license
as the legal authority under which the
property was unblocked and the
blocked property was returned.
(c) Paragraphs (a) and (b) of this
section do not authorize:
(1) The unblocking of any property or
interests in property that were blocked
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pursuant to § 537.201(a) prior to April 1,
2015.
(2) A U.S. financial institution to
advise or confirm any financing by a
person whose property and interests in
property are blocked pursuant to
§ 537.201(a).
(d) Certain transactions incident to
the movement of goods within Burma
authorized. Except as provided in
paragraph (e) of this section, all
transactions otherwise prohibited by
§§ 537.201 and 537.202 that are
ordinarily incident to the movement of
goods within Burma are authorized,
provided the goods are not being sent to,
from, or on behalf of a person whose
property and interests in property are
blocked pursuant to § 537.201(a).
(e) Paragraph (d) of this section does
not authorize:
(1) The unblocking of any property or
interests in property that were blocked
pursuant to § 537.201(a).
(2) A U.S. financial institution to
advise or confirm any financing by a
person whose property and interests in
property are blocked pursuant to
§ 537.201(a).
(f) For the purposes of this section,
the term non-financial services means
all services other than those listed in
§ 537.305.
Note to § 537.532: See § 537.529 for a
general license authorizing the exportation or
reexportation of financial services to Burma.
Dated: May 13, 2016.
John E. Smith,
Acting Director, Office of Foreign Assets
Control.
[FR Doc. 2016–11677 Filed 5–17–16; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[Docket No. USCG–2016–0406]
Drawbridge Operation Regulation;
Lake Champlain, North Hero Island, VT
Coast Guard, DHS.
Notice of deviation from
drawbridge regulation.
AGENCY:
ACTION:
The Coast Guard has issued a
temporary deviation from the operating
schedule that governs the US2 Bridge
across Lake Champlain (The Gut), mile
91.8, between North Hero and South
Hero Island, Vermont. This deviation is
necessary to allow the bridge owner to
perform mechanical and electrical
repairs at the bridge.
SUMMARY:
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31171
This deviation is effective
without actual notice from May 18, 2016
to 8 a.m. on June 15, 2016. For the
purposes of enforcement, actual notice
will be used from 8 a.m. on May 15,
2016, until May 18, 2016.
ADDRESSES: The docket for this
deviation, USCG–2016–0406, is
available at https://www.regulations.gov.
Type the docket number in the
‘‘SEARCH’’ box and click ‘‘SEARCH’’.
Click on Open Docket Folder on the line
associated with this deviation.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this temporary
deviation, call or email Jim Rousseau;
Project Officer, First Coast Guard
District, telephone (617) 223–8619,
email james.l.rousseau2@uscg.mil.
SUPPLEMENTARY INFORMATION: The US2
Bridge across Lake Champlain, at North
Hero Island, Vermont, has a vertical
clearance in the closed position of 18
feet at mean high water. The existing
bridge operating regulations are found at
33 CFR 117.993(b).
The subject waterway is typically
transited by seasonal, recreational
vessels of various sizes. Several marina
facilities are in the area of the bridge
with local vessels requesting bridge
openings several times a week.
The bridge owner, Vermont Agency of
Transportation, requested a temporary
deviation from the normal operating
schedule to facilitate mechanical and
electrical repairs at the bridge. In
response to the request, the Coast
Guard’s First District has approved a
deviation from 8 a.m. on May 15, 2016
until 8 a.m. June 15, 2016.
During the time of this temporary
deviation, the US2 Bridge shall open on
signal on the hour, but it will not open
on the half hour. Also during the time
of this temporary deviation, the US2
Bridge will be open by use of an
auxiliary drive system not designed for
high-speed openings, which means the
bridge will open more slowly than it
does under normal operations.
Vessels that are able to pass under the
bridge in the closed position may do so
at anytime. The bridge will be able to
open for emergencies, and there is an
alternate route for vessels to pass to the
north under the Alburg Passage US2
fixed bridge, which has a vertical
clearance of 26 feet at mean high water.
The Coast Guard will inform the users
of the waterways through our Local
Notice and Broadcast to Mariners of the
change in operating schedule for the
bridge so that vessel operations can
arrange their transits to minimize any
impact caused by the temporary
deviation.
DATES:
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]]>Agencies
[Federal Register Volume 81, Number 96 (Wednesday, May 18, 2016)]
[Rules and Regulations]
[Pages 31169-31171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11677]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 537
Burmese Sanctions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is amending the Burmese Sanctions Regulations to add a
general license authorizing certain transactions related to U.S.
persons residing in Burma. OFAC is also incorporating a general license
authorizing certain transactions incident to exports to and from Burma
that has, until now, appeared only on OFAC's Web site on the Burma
sanctions page, and expanding this authorization to allow certain
transactions incident to the movement of goods within Burma that
otherwise would be prohibited. Finally, OFAC is expanding and updating
another existing authorization allowing most transactions involving
certain blocked financial institutions.
DATES: Effective: May 18, 2016.
FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's
Office of Foreign Assets Control: Assistant Director for Licensing,
tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.:
202-622-4855, Assistant Director for Sanctions Compliance & Evaluation,
tel.: 202-622-2490; or the Department of the Treasury's Office of the
Chief Counsel (Foreign Assets Control), Office of the General Counsel,
tel.: 202-622-2410.
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning OFAC are
available from OFAC's Web site (www.treasury.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 30, 2014, the Department of the Treasury's Office of
Foreign Assets Control (OFAC) amended and reissued in their entirety
the Burmese Sanctions Regulations, 31 CFR part 537 (the
``Regulations''), to implement Executive Order 13448 of October 18,
2007, ``Blocking Property and Prohibiting Certain Transactions Related
to Burma,'' Executive Order 13464 of April 30, 2008, ``Blocking
Property and Prohibiting Certain Transactions Related to Burma,''
Executive Order 13619 of July 11, 2012, ``Blocking Property of Persons
Threatening the Peace, Security, or Stability of Burma,'' and Executive
Order 13651 of August 6, 2013, ``Prohibiting Certain Imports of Burmese
Jadeite and Rubies'' (79 FR 37106).
[[Page 31170]]
Following Burma's peaceful and competitive elections in 2015, the
U.S. Government is taking additional steps to support Burma's political
reforms and broad-based economic growth.
Transactions related to U.S. persons residing in Burma. OFAC is
adding a general license in section 537.525 to authorize certain
transactions related to maintenance of U.S. persons residing in Burma,
including payment of living expenses and acquisition of goods or
services for personal use. This general license complements the
existing exemption in section 537.210(c) of the Regulations for travel
to or from Burma, including maintenance within Burma, such as payment
of living expenses and acquisition of goods or services for personal
use.
Trade-related transactions. In December 2015, OFAC issued and made
available on its Web site General License No. 20, a six-month general
license authorizing certain transactions ordinarily incident to
exportations to or from Burma of goods, technology, or non-financial
services that are otherwise prohibited by the Regulations and
unblocking certain previously blocked transactions. Today, OFAC is
amending the Regulations by adding section 537.532 to incorporate that
general license, to remove its six-month time limitation, and to expand
this authorization to allow additional transactions incident to the
movement of goods within Burma.
Banking services. In February 2013, OFAC issued and made available
on its Web site General License No. 19, and subsequently added this
authorization to the Regulations at section 537.531, authorizing most
transactions, including opening and maintaining accounts and conducting
other financial services, involving four of Burma's major financial
institutions that were then included on OFAC's Specially Designated
Nationals and Blocked Persons List (SDN List): Asia Green Development
Bank, Ayeyarwady Bank, Myanma Economic Bank (MEB), and Myanma
Investment and Commercial Bank (MICB). In an action coordinated with
these regulatory amendments, OFAC has delisted two of these financial
institutions, MEB and MICB. As a result of that action, transactions
involving these two institutions are no longer prohibited and therefore
do not require an OFAC license. Accordingly, OFAC is amending section
537.531 to remove their names. At the same time, to further support
Burma's broad-based economic growth, OFAC is adding two other Burmese
financial institutions, Innwa Bank and Myawaddy Bank, to the general
license at section 537.531, thereby authorizing most transactions
involving those institutions.
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 537
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Credit, Burma, Exportation, Exports, Foreign trade,
Investments, Loans, New investment, Securities, Services, Specially
Designated Nationals.
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR part 537 as
set forth below:
PART 537--BURMESE SANCTIONS REGULATIONS
0
1. The authority citation for part 537 is revised 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);
Sec. 570, Pub. L. 104-208, 110 Stat. 3009; Pub. L. 110-96, 121 Stat.
1011 (50 U.S.C. 1701 note); Pub. L. 110-286, 122 Stat. 2632 (50
U.S.C. 1701 note); E.O. 13047, 62 FR 28301, 3 CFR, 1997 Comp., p.
202; E.O. 13310, 68 FR 44853, 3 CFR, 2003 Comp., p. 241; E.O. 13448,
72 FR 60223, 3 CFR, 2007 Comp., p. 304; E.O. 13464, 73 FR 24491, 3
CFR, 2008 Comp., p. 189; E.O. 13619, 77 FR 41243, 3 CFR, 2012 Comp.,
p. 279; E.O. 13651, 78 FR 48793, 3 CFR, 2014 Comp., p. 324;
Determination No. 2009-11, 74 FR 3957, 3 CFR, 2009 Comp., p. 330.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Add Sec. 537.525 to read as follows:
Sec. 537.525 Certain transactions related to U.S. persons residing in
Burma authorized.
(a) U.S. persons are authorized to engage in transactions in Burma
ordinarily incident to the routine and necessary maintenance within
Burma, including payment of living expenses and acquisition of goods or
services for personal use, of U.S. person individuals who reside in
Burma.
(b) Nothing in this section authorizes transactions related to
employment of a U.S. person by a person whose property and interests in
property are blocked pursuant to Sec. 537.201(a).
Note to Sec. 537.525: See Sec. 537.210(c) for an exemption for
transactions ordinarily incident to travel to or from Burma,
including maintenance within Burma, such as payment of living
expenses and acquisition of goods or services for personal use.
0
3. Amend Sec. 537.531 by revising the section heading, revising
paragraphs (a), (b), and (d), and revising the Note to Sec. 537.531 to
read as follows:
Sec. 537.531 Certain transactions involving Asia Green Development
Bank, Ayeyarwady Bank, Innwa Bank, and Myawaddy Bank authorized.
(a) Except as provided in paragraphs (b) through (f) of this
section, all transactions involving Asia Green Development Bank,
Ayeyarwady Bank, Innwa Bank, and Myawaddy Bank are authorized.
(b) This section does not authorize transactions involving any
person whose property and interests in property are blocked pursuant to
Sec. 537.201(a) other than Asia Green Development Bank, Ayeyarwady
Bank, Innwa Bank, and Myawaddy Bank.
* * * * *
(d) This section does not authorize any new investment, as defined
in Sec. 537.311, including in or with Asia Green Development Bank,
Ayeyarwady Bank, Innwa Bank, or Myawaddy Bank.
* * * * *
Note to Sec. 537.531: As a result of the authorization
contained in this section, the special measures against Burma
imposed under Section 311 of the Uniting and Strengthening America
by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA PATRIOT) Act of 2001 (Pub. L. 107-56) (USA PATRIOT
Act) do not apply to the operation of correspondent accounts for
Asia Green Development Bank, Ayeyarwady Bank, Innwa Bank, and
Myawaddy Bank, or to transactions conducted through such accounts,
provided the transactions are
[[Page 31171]]
authorized pursuant to this part, and therefore fall within the
exception set forth in 31 CFR 1010.651(b)(3). This section does not
affect any obligation of U.S. financial institutions processing such
transactions to conduct enhanced due diligence under Section 312 of
the USA PATRIOT Act. See 31 CFR 1010.610(c).
0
4. Add Sec. 537.532 to subpart E to read as follows:
Sec. 537.532 Certain transactions incident to exportations to or from
Burma authorized; certain transactions incident to the movement of
goods within Burma authorized.
(a) Certain transactions incident to exportations to or from Burma
authorized. Except as provided in paragraph (c), all transactions
otherwise prohibited by Sec. Sec. 537.201 and 537.202 that are
ordinarily incident to an exportation to or from Burma of goods,
technology, or non-financial services, as defined in paragraph (f) of
this section, are authorized, provided the exportation is not to, from,
or on behalf of a person whose property and interests in property are
blocked pursuant to Sec. 537.201(a).
(b) Unblocking of certain property previously blocked as part of a
transaction incident to an exportation to or from Burma authorized.
U.S. financial institutions, as defined in Sec. 537.320, are
authorized to engage in all transactions necessary to unblock and
return property blocked as part of a transaction on or after April 1,
2015 that would have qualified as authorized had it been engaged in
under paragraph (a) of this section. U.S. financial institutions
unblocking property pursuant to this section must submit a report to
the Department of the Treasury, Office of Foreign Assets Control, Attn:
Sanctions Compliance & Evaluation Division, 1500 Pennsylvania Avenue
NW., Annex, Washington, DC 20220 within 10 business days from the date
such property is unblocked. Such reports shall include the following:
(1) A copy of the original blocking report filed with OFAC pursuant
to Sec. 501.603(b)(1) of this chapter;
(2) The date the property was unblocked;
(3) If applicable, the amount unblocked;
(4) The name of the party to whom the blocked property was
returned; and
(5) A reference to this general license as the legal authority
under which the property was unblocked and the blocked property was
returned.
(c) Paragraphs (a) and (b) of this section do not authorize:
(1) The unblocking of any property or interests in property that
were blocked pursuant to Sec. 537.201(a) prior to April 1, 2015.
(2) A U.S. financial institution to advise or confirm any financing
by a person whose property and interests in property are blocked
pursuant to Sec. 537.201(a).
(d) Certain transactions incident to the movement of goods within
Burma authorized. Except as provided in paragraph (e) of this section,
all transactions otherwise prohibited by Sec. Sec. 537.201 and 537.202
that are ordinarily incident to the movement of goods within Burma are
authorized, provided the goods are not being sent to, from, or on
behalf of a person whose property and interests in property are blocked
pursuant to Sec. 537.201(a).
(e) Paragraph (d) of this section does not authorize:
(1) The unblocking of any property or interests in property that
were blocked pursuant to Sec. 537.201(a).
(2) A U.S. financial institution to advise or confirm any financing
by a person whose property and interests in property are blocked
pursuant to Sec. 537.201(a).
(f) For the purposes of this section, the term non-financial
services means all services other than those listed in Sec. 537.305.
Note to Sec. 537.532: See Sec. 537.529 for a general license
authorizing the exportation or reexportation of financial services
to Burma.
Dated: May 13, 2016.
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-11677 Filed 5-17-16; 8:45 am]
BILLING CODE 4810-AL-P
