[Federal Register Volume 73, Number 234 (Thursday, December 4, 2008)]
[Rules and Regulations]
[Pages 73788-73789]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-28711]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 560
Iranian Transactions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (``OFAC'') is amending the Iranian Transactions Regulations to
expand the scope of Appendix A to Part 560 to include non-financial as
well as financial institutions determined to be owned or controlled by
the Government of Iran, and to add to the appendix three non-financial
institutions that have been determined to be owned or controlled by the
Government of Iran: The National Iranian Oil Company (a.k.a. NIOC),
Naftiran Intertrade Company Ltd (a.k.a. NICO), and Naftiran Intertrade
Co. (NICO) Sarl.
DATES: Effective Date: December 3, 2008.
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, Washington, DC 20220 (not toll
free numbers).
SUPPLEMENTARY INFORMATION:
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 Iranian Transactions Regulations, 31 CFR part 560 (the
``ITR''), implement a series of Executive orders that began with
Executive Order 12613, which was issued on October 29, 1987, pursuant
to authorities including the International Security and Development
Cooperation Act of 1985 (22 U.S.C. 2349aa-9). In that Order, after
finding, inter alia, that the Government of Iran was actively
supporting terrorism as an instrument of state policy, the President
prohibited the importation of Iranian-origin goods and services.
Subsequently, in Executive Order 12957, issued on March 15, 1995, under
the authority of, inter alia, the International Emergency Economic
Powers Act (50 U.S.C. 1701-1706) (``IEEPA''), the President declared a
national emergency with respect to the actions and policies of the
Government of Iran, including its support for international terrorism,
its efforts to undermine the Middle East peace process, and its efforts
to acquire weapons of mass destruction and the means to deliver them.
To deal with that threat, Executive Order 12957 imposed prohibitions on
certain transactions with respect to the development of Iranian
petroleum resources. On May 6, 1995, to further respond to this threat,
the President issued Executive Order 12959, which imposed comprehensive
trade and financial sanctions on Iran. Finally, on August 19, 1997, the
President issued Executive Order 13059 consolidating and clarifying the
previous orders.
The ITR implement these Executive orders and prohibit various
transactions, including, among others, transactions with the Government
of Iran, a term defined in Sec. 560.304 to include any entity owned or
controlled by the Government of Iran, which is a term that is itself
defined in Sec. 560.313 of the ITR. Since its initial publication in
1999, Appendix A to Part 560 has listed financial institutions that
OFAC determined to be entities owned or controlled by the Government of
Iran, within the meaning of Sec. Sec. 560.304 and 560.313 of the ITR.
This appendix is intended to assist U.S. persons in complying with the
ITR. OFAC is expanding the scope of appendix A to include all
categories of entities, not just financial institutions. This change
will allow OFAC to give notice when it determines that any entity is
owned or controlled by the Government of Iran.
OFAC is expanding the scope of appendix A today in order to add the
National Iranian Oil Company (a.k.a. NIOC), Naftiran Intertrade Company
Ltd (a.k.a. NICO), and Naftiran Intertrade Co. (NICO) Sarl to the
appendix as entities that are owned or controlled by the Government of
Iran within the meaning of Sec. Sec. 560.304 and 560.313 of the ITR.
The ITR prohibit most transactions with any entity, wherever located,
that is owned or controlled by the Government of Iran.
It is important to note that Appendix A to Part 560 is not a
comprehensive list of entities owned or controlled by the Government of
Iran. Even if an entity is not listed in appendix A, if it is owned or
controlled by the Government of Iran, U.S. persons are prohibited from
engaging in transactions with that entity, in any of its locations
worldwide, to the same extent that U.S. persons are prohibited from
engaging in transactions
[[Page 73789]]
with the entities listed in appendix A. A U.S. person also is
prohibited from engaging in most transactions with entities located in
Iran that are not owned or controlled by the Government of Iran.
Finally, please be aware that certain entities listed in Appendix A to
Part 560 may be subject to further sanctions under other sanctions
programs.
Public Participation
Because the amendment of the ITR involves a foreign affairs
function, the provisions of Executive Order 12866 and the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date are inapplicable. Because no notice of proposed
rulemaking is required for this rule, the Regulatory Flexibility Act (5
U.S.C. 601-612) does not apply.
Paperwork Reduction Act
The collections of information related to the ITR are contained in
31 CFR part 501 (the ``Reporting, Procedures and Penalties
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of information have been approved by
the Office of Management and Budget under control number 1505-0164. An
agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.
List of Subjects in 31 CFR Part 560
Administrative practice and procedure, Banks, Banking, Brokers,
Foreign trade, Investments, Loans, Securities, Iran.
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For the reasons set forth in the preamble, the Office of Foreign Assets
Control amends 31 CFR part 560 as follows:
PART 560--IRANIAN TRANSACTIONS REGULATIONS
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1. The authority citation of part 560 continues to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C.
2349aa-9; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L.
101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 106-387, 114
Stat. 1549; Pub. L. 110-96, 121 Stat. 1011; E.O. 12613, 52 FR 41940,
3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995
Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356;
E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217.
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2. Amend Appendix A to Part 560 by revising the heading and
introductory text, as well as redesignating paragraphs 19 and 20 as 22
and 23, respectively, and adding new paragraphs 19, 20, and 21, to read
as follows:
Appendix A to Part 560--Entities Determined To Be Owned or Controlled
by the Government of Iran
This non-exhaustive appendix lists entities determined by the
Office of Foreign Assets Control (``OFAC'') to be entities owned or
controlled by the Government of Iran within the meaning of
Sec. Sec. 560.304 and 560.313 of this part 560. The entities listed
below are considered to be entities owned or controlled by the
Government of Iran when they operate not only from the locations
listed below, but also from any other location. The names and
addresses are subject to change. This part 560 contains prohibitions
against engaging in most transactions with entities owned or
controlled by the Government of Iran, whether such entities are
located or incorporated inside or outside of Iran. Moreover,
regardless of whether an entity is listed below, if the entity is
owned or controlled by the Government of Iran, the prohibitions on
engaging in transactions with the entity, wherever located
worldwide, apply to the same extent they would apply if the entity
were listed in this appendix. Note that the prohibitions in this
part 560 also apply to transactions with entities located in Iran
that are not owned or controlled by the Government of Iran. Finally,
please be aware that certain entities listed in this appendix may be
subject to further sanctions under other sanctions programs.
* * * * *
19. NATIONAL IRANIAN OIL COMPANY, (a.k.a. NIOC) Hafez Crossing,
Taleghani Avenue, P.O. Box 1863 and 2501, Tehran, Iran
20. NAFTIRAN INTERTRADE COMPANY LTD, (a.k.a. NICO); a.k.a. Naft Iran
Intertrade Ltd, 22 Grenville St, St Helier, Jersey Channel Islands
JE4 8PX, United Kingdom; 22 Grenville St, St Helier, Jersey, Channel
Islands JE2 4UF, United Kingdom; 5th floor, Petro Pars Building,
Saadat Abad Avenue, No. 35, Farhang Blvd, Tehran, Iran
21. NAFTIRAN INTERTRADE CO. (NICO) Sarl, 6, Avenue de la Tour
Haldimand, 1009 Pully, VD, Switzerland
* * * * *
Barbara C. Hammerle,
Acting Director, Office of Foreign Assets Control.
[FR Doc. E8-28711 Filed 12-3-08; 8:45 am]
BILLING CODE 4811-45-P