10 May 2006
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[Federal Register: May 10, 2006 (Volume 71, Number 90)]
[Rules and Regulations]
[Page 27199-27203]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10my06-3]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 594, 595 and 597
Global Terrorism Sanctions Regulations; Terrorism Sanctions
Regulations; Foreign Terrorist Organizations Sanctions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Treasury Department's Office of Foreign Assets Control
(``OFAC'') is revising the Global Terrorism Sanctions Regulations, the
Terrorism Sanctions Regulations, and the Foreign Terrorist
Organizations Sanctions Regulations to add general licenses authorizing
certain transactions with the Palestinian Authority (``PA'').
DATE: Effective May 10, 2006.
FOR FURTHER INFORMATION CONTACT: Assistant Director of Compliance,
Outreach & Implementation, tel.: 202/622-2490, Assistant Director of
Licensing, tel.: 202/622-2480, Assistant Director of Policy, tel.: 202/
622-4855, Office of Foreign Assets Control, or Chief Counsel (Foreign
Assets Control), tel.: 202/622-2410, Office of the General Counsel,
Department of the Treasury, Washington, DC 20220 (not toll free
numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning the programs of
the Office of Foreign Assets Control are available for downloading from
the Office's Internet Home Page: http://www.treas.gov/ofac, or via FTP
at ofacftp.treas.gov.
Background
OFAC administers three sanctions programs with respect to
terrorists and terrorist organizations. The Terrorism Sanctions
Regulations, 31 CFR part 595 (``TSR''), implement Executive Order 12947
of January 23, 1995, in which the President declared a national
emergency with respect to ``grave acts of violence committed by foreign
terrorists that disrupt the Middle East peace process'.'' The Global
Terrorism Sanctions Regulations, 31 CFR part 594 (``GTSR''), implement
Executive Order 13224 of September 23, 2001, in which the President
declared an emergency more generally with respect to ``grave acts of
terrorism and threats of terrorism committed by foreign terrorists'.''
The Foreign Terrorist Organizations Sanctions Regulations, 31 CFR part
597 (``FTOSR''), implement provisions of the Antiterrorism and
Effective Death Penalty Act of 1996 (``AEDPA'').
HAMAS, members of which now form the majority party within the
Palestinian Legislative Council and hold positions of authority within
the government including the position of Prime Minister, is a target of
each of these sanctions programs, resulting in the blocking of any
property and interests in property of HAMAS that are in the United
States or hereafter come within the United States, or that are in or
hereafter come within the possession or control of a United States
person. These restrictions prohibit U.S. persons from dealing in
property or interests in property of HAMAS. OFAC has determined that,
as a result of the recent elections, HAMAS has a property interest in
the transactions of the Palestinian Authority. Accordingly, pursuant to
the TSR, the GTSR and the FTOSR, U.S. persons are prohibited from
engaging in transactions with the Palestinian Authority unless
authorized. Notwithstanding the prohibitions, OFAC, consistent with
current foreign policy, is authorizing U.S. persons to engage in
certain transactions in which the Palestinian Authority may have an
interest. It should be noted that the prohibitions involving the
Palestinian Authority do not bar all transactions involving individuals
and entities in Palestinian territory.
Executive Order 12866, Administrative Procedure Act, Regulatory
Flexibility Act, and Paperwork Reduction Act
Because the regulations at issue involve a foreign affairs
function, the provisions of Executive Order 12866 and the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date are inapplicable. Because no notice of proposed
rulemaking is required for this rule, the Regulatory Flexibility Act (5
U.S.C. 601-612) does not apply.
The Paperwork Reduction Act does not apply because this rule does
not impose information collection requirements that would require the
approval of the Office of Management and Budget under 44 U.S.C. 3501 et
seq.
List of Subjects
31 CFR Part 594
Administrative practice and procedure, Banks, Banking, Penalties,
Reporting and recordkeeping requirements, Terrorism.
31 CFR Part 595
Administrative practice and procedure, Banks, Banking, Currency,
Foreign investments in United States, Penalties, Reporting and
recordkeeping requirements, Securities, Terrorism.
31 CFR Part 597
Administrative practice and procedure, Banks, Banking, Currency,
Foreign investments in United States, Penalties, Reporting and
recordkeeping requirements, Securities, Terrorism.
0
For the reasons set forth in the preamble, and under the authority of
IEEPA and AEDPA, 31 CFR chapter V is amended by amending the
interpretations and licenses provisions in 31 CFR parts 594, 595, and
597 as set forth below.
PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS
0
1. The authority citation for part 594 continues to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); E.O. 13224, 66 FR 49079,
[[Page 27200]]
September 25, 2001; E.O. 13268, 67 FR 44751, July 3, 2002; 3 CFR,
2002 Comp., p. 240; E.O. 13284, 64 FR 4075, January 28, 2003.
Subpart D--Interpretations
0
1. Add a new Sec. 594.411 to subpart D to read as follows:
Sec. 594.411 Palestinian Authority.
Following the January 2006 Palestinian elections, Hamas, a
designated terrorist entity whose property and interests in property
are blocked pursuant to Sec. 594.201, has been determined to have a
property interest in the transactions of the Palestinian Authority.
Accordingly, pursuant to Sec. Sec. 594.201 and 594.204, U.S. persons
are prohibited from engaging in transactions with the Palestinian
Authority unless authorized. Certain transactions with the Palestinian
Authority may be authorized by license, see subpart E of this part.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Add a new Sec. 594.510 to subpart E to read as follows:
Sec. 594.510 Official activities of certain international
organizations; U.S. person employees of certain governments.
(a) Effective April 12, 2006, all transactions and activities with
the Palestinian Authority otherwise prohibited under this part that are
for the conduct of the official business of the United Nations are
authorized, provided that no payment pursuant to this license may
involve a debit to an account of the Palestinian Authority on the books
of a U.S. financial institution or to any account blocked pursuant to
this part.
(b) Effective April 12, 2006, U.S. persons who are employees of the
governments of states bordering the West Bank or Gaza are authorized to
engage in all transactions and activities outside of the United States
with the Palestinian Authority that are otherwise prohibited under this
part in support of the U.S. persons' official duties, provided that no
payment pursuant to this license may involve a debit to an account of
the Palestinian Authority on the books of a U.S. financial institution
or to any account blocked pursuant to this part.
(c) For purposes of this section only, the term ``United Nations''
means its principal organs, including funds, bodies, commissions,
agencies, departments and other entities of the Security Council,
General Assembly, Economic and Social Council and Secretariat,
specifically including, among others, the World Bank, the International
Monetary Fund, the World Food Programme, and the World Health
Organization.
0
3. Add a new Sec. 594.511 to subpart E to read as follows:
Sec. 594.511 Travel, employment, residence and maintenance
transactions with the Palestinian Authority.
Effective April 12, 2006, U.S. persons are authorized to engage in
all transactions with the Palestinian Authority otherwise prohibited
under this part that are ordinarily incident to their travel to or
from, or employment, residence or personal maintenance within, the
jurisdiction of the Palestinian Authority, including, but not limited
to, receipt of salaries, payment of living expenses and acquisition of
goods or services for personal use. Nothing in this license authorizes
any debit to an account of the Palestinian Authority on the books of a
U.S. financial institution or to any account blocked pursuant to this
part.
0
4. Add a new Sec. 594.512 to subpart E to read as follows:
Sec. 594.512 Payment of taxes and incidental fees to the Palestinian
Authority.
Effective April 12, 2006, U.S. persons are authorized to pay taxes
or fees to, and purchase or receive permits or public utility services
from, the Palestinian Authority where such transactions are necessary
and ordinarily incident to such persons' day-to-day operations. Nothing
in this license authorizes a debit to an account of the Palestinian
Authority on the books of a U.S. financial institution or to any
account blocked pursuant to this part.
0
5. Add a new Sec. 594.513 to subpart E to read as follows:
Sec. 594.513 Transactions with entities under the control of the
Palestinian President and certain other entities.
(a) Effective April 12, 2006, U.S. persons are authorized to engage
in all transactions otherwise prohibited under this part with the
following entities and individuals:
(1) The Palestinian Authority Presidency, including only the Office
of the President, Presidential Security, General Intelligence
Apparatus, Governors and Governorate staff, the Attorney General's
Office, the Palestine Investment Fund (PIF), the Border Crossings
Administration, and the Palestine Broadcasting Corporation (including
the Voice of Palestine, Wafa News Agency, and the General Public
Information Agency/State Information Services);
(2) The Palestinian Judiciary, including the Higher Judicial
Council;
(3) Members of the Palestinian Legislative Council (PLC) who were
not elected to the PLC on the party slate of Hamas or any other Foreign
Terrorist Organization (FTO), Specially Designated Terrorist (SDT), or
Specially Designated Global Terrorist (SDGT); and
(4) The following independent agencies: The Central Elections
Commission; the Independent Citizens Rights Commission; the General
Audit Authority/External Audit Agency; and the Palestinian Monetary
Authority.
(b) Effective April 12, 2006, U.S. financial institutions are
authorized to reject transactions with members of the Palestinian
Legislative Council (PLC) who were elected to the PLC on the party
slate of Hamas or any other Foreign Terrorist Organization (FTO),
Specially Designated Terrorist (SDT), or Specially Designated Global
Terrorist (SDGT), provided that any such individuals are not named on
OFAC's list of Specially Designated Nationals and Blocked Persons.
(c) Nothing in this license authorizes a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
0
6. Add a new Sec. 594.514 to subpart E to read as follows:
Sec. 594.514 Concluding activities with the Palestinian Authority.
Effective April 12, 2006, all transactions and activities with the
Palestinian Authority otherwise prohibited under this part are
authorized through May 12, 2006, provided that they are necessary to
conclude ongoing contracts or programs with the Palestinian Authority,
and further provided that no payment pursuant to this license may
involve a debit to an account of the Palestinian Authority on the books
of a U.S. financial institution or to any account blocked pursuant to
this part.
0
7. Add a new Sec. 594.515 to subpart E to read as follows:
Sec. 594.515 In-kind donations of medicine.
Effective April 12, 2006, nongovernmental organizations that are
U.S. persons are authorized to provide in-kind donations of medicine to
the Palestinian Authority Ministry of Health, provided that such
donations are strictly for distribution in the West Bank or Gaza and
not intended for resale, and provided further that no payment pursuant
to this license may involve a debit to an account of the
[[Page 27201]]
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
PART 595--TERRORISM SANCTIONS REGULATIONS
0
1. The authority citation for part 595 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
E.O. 12947, 60 FR 5079; 3 CFR, 1995 Comp., p. 319.
Subpart D--Interpretations
0
1. Add a new Sec. 595.409 to subpart D to read as follows:
Sec. 595.409 Palestinian Authority.
Following the January 2006 Palestinian elections, Hamas, a
designated terrorist entity whose property and interests in property
are blocked pursuant to Sec. Sec. 595.201 and 595.204, has been
determined to have a property interest in the transactions of the
Palestinian Authority. Accordingly, pursuant to Sec. Sec. 595.201 and
595.204, U.S. persons are prohibited from engaging in transactions with
the Palestinian Authority unless authorized. Certain transactions with
the Palestinian Authority may be authorized by license, see subpart E
of this part.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Add a new Sec. 595.508 to subpart E to read as follows:
Sec. 595.508 Official activities of certain international
organizations; U.S. person employees of certain governments.
(a) Effective April 12, 2006, all transactions and activities with
the Palestinian Authority otherwise prohibited under this part that are
for the conduct of the official business of the United Nations are
authorized, provided that no payment pursuant to this license may
involve a debit to an account of the Palestinian Authority on the books
of a U.S. financial institution or to any account blocked pursuant to
this part.
(b) Effective April 12, 2006, U.S. persons who are employees of the
governments of states bordering the West Bank or Gaza are authorized to
engage in all transactions and activities outside of the United States
with the Palestinian Authority that are otherwise prohibited under this
part in support of the U.S. persons' official duties, provided that no
payment pursuant to this license may involve a debit to an account of
the Palestinian Authority on the books of a U.S. financial institution
or to any account blocked pursuant to this part.
(c) For purposes of this section only, the term ``United Nations''
means its principal organs, including funds, bodies, commissions,
agencies, departments and other entities of the Security Council,
General Assembly, Economic and Social Council and Secretariat,
specifically including, among others, the World Bank, the International
Monetary Fund, the World Food Programme, and the World Health
Organization.
0
3. Add a new Sec. 595.509 to subpart E to read as follows:
Sec. 595.509 Travel, employment, residence and maintenance
transactions with the Palestinian Authority.
Effective April 12, 2006, U.S. persons are authorized to engage in
all transactions with the Palestinian Authority otherwise prohibited
under this part that are ordinarily incident to their travel to or
from, or employment, residence or personal maintenance within, the
jurisdiction of the Palestinian Authority, including, but not limited
to, receipt of salaries, payment of living expenses and acquisition of
goods or services for personal use. Nothing in this license authorizes
any debit to an account of the Palestinian Authority on the books of a
U.S. financial institution or to any account blocked pursuant to this
part.
0
4. Add a new Sec. 595.510 to subpart E to read as follows:
Sec. 595.510 Payment of taxes and incidental fees to the Palestinian
Authority.
Effective April 12, 2006, U.S. persons are authorized to pay taxes
or fees to, and purchase or receive permits or public utility services
from, the Palestinian Authority where such transactions are necessary
and ordinarily incident to such persons' day-to-day operations. Nothing
in this license authorizes a debit to an account of the Palestinian
Authority on the books of a U.S. financial institution or to any
account blocked pursuant to this part.
0
5. Add a new Sec. 595.511 to subpart E to read as follows:
Sec. 595.511 Transactions with entities under the control of the
Palestinian President and certain other entities.
(a) Effective April 12, 2006, U.S. persons are authorized to engage
in all transactions otherwise prohibited under this part with the
following entities and individuals:
(1) The Palestinian Authority Presidency, including only the Office
of the President, Presidential Security, General Intelligence
Apparatus, Governors and Governorate staff, the Attorney General's
Office, the Palestine Investment Fund (PIF), the Border Crossings
Administration, and the Palestine Broadcasting Corporation (including
the Voice of Palestine, Wafa News Agency, and the General Public
Information Agency/State Information Services);
(2) The Palestinian Judiciary, including the Higher Judicial
Council;
(3) Members of the Palestinian Legislative Council (PLC) who were
not elected to the PLC on the party slate of Hamas or any other Foreign
Terrorist Organization (FTO), Specially Designated Terrorist (SDT), or
Specially Designated Global Terrorist (SDGT); and
(4) The following independent agencies: The Central Elections
Commission; the Independent Citizens Rights Commission; the General
Audit Authority/External Audit Agency; and the Palestinian Monetary
Authority.
(b) Effective April 12, 2006, U.S. financial institutions are
authorized to reject transactions with members of the Palestinian
Legislative Council (PLC) who were elected to the PLC on the party
slate of Hamas or any other Foreign Terrorist Organization (FTO),
Specially Designated Terrorist (SDT), or Specially Designated Global
Terrorist (SDGT), provided that any such individuals are not named on
OFAC's list of Specially Designated Nationals and Blocked Persons.
(c) Nothing in this license authorizes a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
0
6. Add a new Sec. 595.512 to subpart E to read as follows:
Sec. 595.512 Concluding activities with the Palestinian Authority.
Effective April 12, 2006, all transactions and activities with the
Palestinian Authority otherwise prohibited under this part are
authorized through May 12, 2006, provided that they are necessary to
conclude ongoing contracts or programs with the Palestinian Authority,
and further provided that no payment pursuant to this license may
involve a debit to an account of the Palestinian Authority on the books
of a U.S. financial institution or to any account blocked pursuant to
this part.
0
7. Add a new Sec. 595.513 to subpart E to read as follows:
Sec. 595.513 In-kind donations of medicine.
Effective April 12, 2006, nongovernmental organizations that are
U.S. persons are authorized to provide
[[Page 27202]]
in-kind donations of medicine to the Palestinian Authority Ministry of
Health, provided that such donations are strictly for distribution in
the West Bank or Gaza and not intended for resale, and provided further
that no payment pursuant to this license may involve a debit to an
account of the Palestinian Authority on the books of a U.S. financial
institution or any account blocked pursuant to this part.
PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS
0
1. The authority citation for part 597 continues to read as follows:
Authority: 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8
U.S.C. 1189, 18 U.S.C. 2339B).
Subpart D--Interpretations
0
2. Add a new Sec. 597.407 to subpart D to read as follows:
Sec. 597.407 Palestinian Authority.
Following the January 2006 Palestinian elections, Hamas, a
designated terrorist entity whose property and interests in property
are blocked pursuant to Sec. 597.201, has been determined to have a
property interest in the transactions of the Palestinian Authority.
Accordingly, pursuant to Sec. 597.201, U.S. persons are prohibited
from engaging in transactions with the Palestinian Authority unless
authorized. Certain transactions with the Palestinian Authority may be
authorized by license, see subpart E of this part.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
3. Add a new Sec. 597.506 to subpart E to read as follows:
Sec. 597.506 Official activities of certain international
organizations; U.S. person employees of certain governments.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to engage in all financial transactions with the Palestinian
Authority otherwise prohibited by this part that are for the conduct of
the official business of the United Nations, provided that no payment
pursuant to this license may involve a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
(b) For purposes of this section only, the term ``United Nations''
means its principal organs, including funds, bodies, commissions,
agencies, departments and other entities of the Security Council,
General Assembly, Economic and Social Council and Secretariat,
specifically including, among others, the World Bank, the International
Monetary Fund, the World Food Programme, and the World Health
Organization.
(c) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
0
4. Add a new Sec. 597.507 to subpart E to read as follows:
Sec. 597.507 Travel, employment, residence and maintenance
transactions with the Palestinian Authority.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to engage in all transactions that are ordinarily incident
to U.S. persons' travel to or from, or employment, residence or
personal maintenance within, the jurisdiction of the Palestinian
Authority, including, but not limited to, receipt of salaries, payment
of living expenses and acquisition of goods or services for personal
use. Nothing in this license authorizes any debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
(b) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
0
5. Add a new Sec. 597.508 to subpart E to read as follows:
Sec. 597.508 Payment of taxes and incidental fees to the Palestinian
Authority.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to conduct all transactions ordinarily incident to the
following activities by U.S. persons: the payment of taxes or fees to,
or the purchase or receipt of permits or public utility services from,
the Palestinian Authority where such transactions are necessary and
ordinarily incident to such persons' day-to-day operations. Nothing in
this license authorizes a debit to an account of the Palestinian
Authority on the books of a U.S. financial institution or to any
account blocked pursuant to this part.
(b) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
0
6. Add a new Sec. 597.509 to subpart E to read as follows:
Sec. 597.509 Transactions with entities under the control of the
Palestinian President and certain other entities.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to engage in all transactions otherwise prohibited under
this part with the following entities and individuals:
(1) The Palestinian Authority Presidency, including only the Office
of the President, Presidential Security, General Intelligence
Apparatus, Governors and Governorate staff, the Attorney General's
Office, the Palestine Investment Fund (PIF), the Border Crossings
Administration, and the Palestine Broadcasting Corporation (including
the Voice of Palestine, Wafa News Agency, and the General Public
Information Agency/State Information Services);
(2) The Palestinian Judiciary, including the Higher Judicial
Council;
(3) Members of the Palestinian Legislative Council (PLC) who were
not elected to the PLC on the party slate of Hamas or any other Foreign
Terrorist Organization (FTO), Specially Designated Terrorist (SDT), or
Specially Designated Global Terrorist (SDGT); and
(4) The following independent agencies: The Central Elections
Commission; the Independent Citizens Rights Commission; the General
Audit Authority/External Audit Agency; and the Palestinian Monetary
Authority.
(b) Effective April 12, 2006, U.S. financial institutions are
authorized to reject transactions with members of the Palestinian
Legislative Council (PLC) who were elected to the PLC on the party
slate of Hamas or any other Foreign Terrorist Organization (FTO),
Specially Designated Terrorist (SDT), or Specially Designated Global
Terrorist (SDGT), provided that any such individuals are not named on
OFAC's list of Specially Designated Nationals and Blocked Persons.
(c) Nothing in this license authorizes a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
(d) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section. The retention provisions of Sec. 597.201 shall not apply
with respect to transactions authorized by paragraph (b) of this
section.
0
7. Add a new Sec. 597.510 to subpart E to read as follows:
Sec. 597.510 Concluding activities with the Palestinian Authority.
(a) Effective April 12, 2006, all transactions and activities with
the Palestinian Authority otherwise prohibited under this part are
authorized through May 12, 2006, provided that they are necessary to
conclude ongoing contracts or programs
[[Page 27203]]
with the Palestinian Authority, and further provided that no payment
pursuant to this license may involve a debit to an account of the
Palestinian Authority on the books of a U.S. financial institution or
to any account blocked pursuant to this part.
(b) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
0
8. Add a new Sec. 597.511 to subpart E to read as follows:
Sec. 597.511 In-kind donations of medicine.
(a) Effective April 12, 2006, U.S. financial institutions are
authorized to conduct all transactions ordinarily incident to the
provision by nongovernmental organizations that are U.S. persons of in-
kind donations of medicine to the Palestinian Authority Ministry of
Health, provided that such donations are strictly for distribution in
the West Bank or Gaza and not intended for resale, and provided further
that no payment pursuant to this license may involve a debit to an
account of the Palestinian Authority on the books of a U.S. financial
institution or any account blocked pursuant to this part.
(b) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraph (a) of
this section.
Dated: April 13, 2006.
Barbara C. Hammerle,
Acting Director, Office of Foreign Assets Control.
Stuart A. Levey,
Under Secretary, Terrorism and Financial Intelligence.
[FR Doc. 06-4351 Filed 5-9-06; 8:45 am]
BILLING CODE 4811-37-P