6 April 2006
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[Federal Register: April 6, 2006 (Volume 71, Number 66)]
[Rules and Regulations]
[Page 17345-17346]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ap06-4]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 500
Foreign Assets Control Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule; amendment.
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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of
the Treasury is amending the Foreign Assets Control Regulations, 31 CFR
part 500, effective May 8, 2006, to add a new provision limiting the
authorization of post-June 19, 2000 transactions involving property in
which the Democratic People's Republic of Korea (``North Korea'') or a
national thereof has an interest. The new provision prohibits United
States persons from owning, leasing, operating or insuring any vessel
flagged by North Korea.
DATES: Effective date: May 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.
SUPPLEMENTARY INFORMATION:
[[Page 17346]]
Electronic and Facsimile Availability
This document and additional information concerning 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 Foreign Assets Control Regulations (the ``FACR''), 31 CFR part
500, which are authorized under the Trading with the Enemy Act, 50
U.S.C. App. 1-44, imposed economic sanctions against the Democratic
People's Republic of Korea (``North Korea'') beginning in 1950. Since
that time, those sanctions have been modified on a number of occasions,
most recently to ease economic sanctions against North Korea in order
to improve overall relations and to encourage North Korea to continue
to refrain from testing long-range missiles. Consistent with U.S.
foreign policy interests, the Office of Foreign Assets Control
(``OFAC''), on June 19, 2000, amended the FACR, 31 CFR part 500, to add
Sec. 500.586, authorizing transactions concerning certain North Korean
property.
Subject to the limitations in paragraph (b) of Sec. 500.586,
paragraph (a) authorized new, i.e., post-June 19, 2000, transactions in
which North Korea has a property interest. Paragraph (b) set forth four
limitations on the new authorization. Today OFAC is amending the FACR
by adding a new provision, effective May 8, 2006, to further limit the
authorization provided by Sec. 500.586. This new provision, Sec.
500.586(b)(5), prohibits United States persons from owning, leasing,
operating or insuring any vessel flagged by North Korea. Because the
term United States person is a new term not previously used or defined
in the FACR, a definition of the term is provided for purposes of
paragraph (b)(5). The effective date of this amendment has been delayed
to provide time for United States persons to re-flag any vessels
currently flagged by North Korea.
Because the Regulations involve a foreign affairs function, the
provisions of Executive Order 12866 and the Administrative Procedure
Act (5 U.S.C. 553) (the ``APA'') 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. 601-602) does not apply.
Paperwork Reduction Act
As authorized in the APA, the Regulations are being issued without
prior notice and public comment. The collection of information related
to 31 part 500 is 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 500
Administrative practice and procedure, Banks, Banking, Brokers,
Foreign Trade, Investments, Loans, Securities, North Korea.
0
For the reasons set forth in the preamble, 31 CFR part 500 is amended
as follows:
PART 500--FOREIGN ASSETS CONTROL REGULATIONS
0
1. The authority citation for part 500 continues to read as follows:
Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. App. 1-
44; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 9193,
7 FR 5205, 3 CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3
CFR, 1943-1948 Comp., p. 748.
Subpart E--Licenses, Authorizations and Statements of Licensing
Policy
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2. A new paragraph (b)(5) is added to Sec. 500.586 to read as follows:
Sec. 500.586 Authorization of new transactions concerning certain
North Korean property.
* * * * *
(b) * * *
(5) Effective May 8, 2006, United States persons are prohibited
from owning, leasing, operating or insuring any vessel flagged by North
Korea. For purposes of this paragraph, 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.
* * * * *
Dated: March 23, 2006.
Barbara C. Hammerle,
Acting Director, Office of Foreign Assets Control.
Approved: March 24, 2006.
Stuart A. Levey,
Under Secretary, Office of Terrorism and Financial Intelligence,
Department of the Treasury.
[FR Doc. 06-3286 Filed 4-5-06; 8:45 am]
BILLING CODE 4810-25-P