[Federal Register Volume 74, Number 140 (Thursday, July 23, 2009)]
[Rules and Regulations]
[Pages 36397-36398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17558]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
SUMMARY: The Office of Foreign Assets Control of the U.S. Department of
the Treasury (``OFAC'') is amending the Iranian Transactions
Regulations to revise the definition of the term Iranian accounts and
make conforming changes to other sections of the regulations.
DATES: Effective Date: July 23, 2009.
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 the Office of
Foreign Assets Control 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 of October 29, 1987, issued pursuant to
authorities including the International Security and Development
Cooperation Act of 1985 (22 U.S.C. 2349aa-9). In that original 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.
Existing Sec. 560.320 of the ITR defines the term Iranian accounts
to mean accounts of persons located in Iran or of the Government of
Iran maintained on the books of either a United States depository
institution or a United States registered broker or dealer in
securities. OFAC is revising Sec. 560.320 to clarify the definition by
substituting the new phrase ``persons who are ordinarily resident in
Iran, except when such persons are not located in Iran'' for the phrase
``persons located in Iran.'' This change will improve OFAC's overall
administration of the ITR and facilitate compliance by U.S. financial
institutions. As revised, Sec. 560.320 defines Iranian accounts to
mean accounts of persons who are ordinarily resident in Iran, except
when such persons are not located in Iran, or of the Government of Iran
maintained on the books of either a United States depository
institution or a United States registered broker or dealer in
securities.
[[Page 36398]]
In addition to revising the definition in Sec. 560.320, OFAC is
making certain conforming changes to Sec. 560.517 and Sec. Sec.
560.532-560.535. These sections use language from the unamended
definition of the term Iranian accounts in describing certain
transactions that are authorized or prohibited with respect to such
accounts. Therefore, OFAC is revising these sections by deleting that
language and instead relying on a reference to the definition in Sec.
560.320. Lastly, OFAC also is making a technical correction to the
heading of Sec. 560.532.
Public Participation
Because the amendments of the ITR involve a foreign affairs
function, Executive Order 12866 and the provisions of 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.
0
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
0
1. The authority citation for 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.
Subpart C--General Definitions
0
2. Revise Sec. 560.320 to read as follows:
Sec. 560.320 Iranian accounts.
The term Iranian accounts means accounts of persons who are
ordinarily resident in Iran, except when such persons are not located
in Iran, or of the Government of Iran maintained on the books of either
a United States depository institution or a United States registered
broker or dealer in securities.
Subpart E--Licenses, Authorizations and Statements of Licensing
Policy
0
3. In Sec. 560.517, revise the introductory text of paragraphs (a) and
(b) to read as follows:
Sec. 560.517 Exportation of services: Iranian accounts at United
States depository institutions or United States registered brokers or
dealers in securities.
(a) United States depository institutions are prohibited from
performing services with respect to Iranian accounts, as defined in
Sec. 560.320, except that United States depository institutions are
authorized to provide and be compensated for services and incidental
transactions with respect to:
* * * * *
(b) United States registered brokers or dealers in securities are
prohibited from performing services with respect to Iranian accounts,
as defined in Sec. 560.320, except that United States registered
brokers or dealers in securities are authorized to provide and be
compensated for services and incidental transactions with respect to:
* * * * *
0
4. In Sec. 560.532, revise the heading and paragraph (c) to read as
follows:
Sec. 560.532 Payment for and financing of exports and reexports of
agricultural commodities, medicine, and medical devices.
* * * * *
(c) No debits or credits to Iranian accounts on the books of U.S.
depository institutions. Nothing in this section authorizes payment
terms or trade financing involving debits or credits to Iranian
accounts, as defined in Sec. 560.320.
* * * * *
0
5. In Sec. 560.533, revise paragraph (c) to read as follows:
Sec. 560.533 Brokering sales of agricultural commodities, medicine
and medical devices.
* * * * *
(c) No debits or credits to Iranian accounts on the books of U.S.
depository institutions. Payment for any brokerage fee earned pursuant
to this section may not involve debits or credits to Iranian accounts,
as defined in Sec. 560.320.
* * * * *
0
6. In Sec. 560.534, revise paragraphs (d) and (e)(2) to read as
follows:
Sec. 560.534 Importation into the United States of, and dealings in,
certain foodstuffs and carpets authorized.
* * * * *
(d) Iranian accounts. Nothing in this section authorizes debits or
credits to Iranian accounts, as defined in Sec. 560.320.
(e) * * *
(2) A United States person may process a documentary collection
relating to the importation into the United States of Iranian-origin
pistachios, but payment under the documentary collection may not
involve the crediting of an Iranian account, as defined in Sec.
560.320.
0
7. In Sec. 560.535, revise paragraph (d) to read as follows:
Sec. 560.535 Letters of credit and brokering services relating to
certain foodstuffs and carpets.
* * * * *
(d) Iranian accounts. Nothing in this section authorizes debits or
credits to Iranian accounts, as defined in Sec. 560.320.
* * * * *
Dated: July 17, 2009.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E9-17558 Filed 7-22-09; 8:45 am]
BILLING CODE 4811-45-P