[Federal Register Volume 77, Number 29 (Monday, February 13, 2012)]
[Notices]
[Pages 7660-7662]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-3197]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Information Regarding General Licenses A and B Under the New
Executive Order of February 5, 2012
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Notice.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (``OFAC'') is providing information regarding General Licenses
A and B issued pursuant to the new Executive Order of February 5, 2012
(``Blocking Property of the Government of Iran and Iranian Financial
Institutions'') (``new Executive Order'').
DATES: General Licenses A and B went into effect on February 6, 2012.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Sanctions,
Compliance, & Evaluation, Office of Foreign Assets Control, Department
of the Treasury, Washington, DC 20220, tel.: 202/622-2490.
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning OFAC are
[[Page 7661]]
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 February 5, 2012, the President, invoking the authority of,
inter alia, the International Emergency Economic Powers Act (50 U.S.C.
1701-1706) (``IEEPA''), issued a new Executive Order (``Blocking
Property of the Government of Iran and Iranian Financial
Institutions'') (``new Executive Order''), in order to take additional
steps with respect to the national emergency declared in Executive
Order 12957 of March 15, 1995, particularly in light of the deceptive
practices of the Central Bank of Iran and other Iranian banks to
conceal transactions of sanctioned parties, the deficiencies in Iran's
anti-money laundering regime and the weaknesses in its implementation,
and the continuing and unacceptable risk posed to the international
financial system by Iran's activities.
The new Executive Order blocks the property and interests in
property of the Government of Iran, including the Central Bank of Iran,
any Iranian financial institution, and any person determined by the
Secretary of the Treasury, in consultation with the Secretary of State,
to be owned or controlled by, or to have acted or purported to act for
or on behalf of, directly or indirectly, any person whose property and
interests in property are blocked pursuant to the new Executive Order.
Certain general licenses set forth in the Iranian Transactions
Regulations, 31 CFR part 560 (the ``ITR''), and certain specific
licenses issued pursuant to 31 CFR chapter V, including Part 560,
authorize transactions with the ``Government of Iran,'' as the term is
defined in section 7(d) of the new Executive Order, or ``Iranian
financial institutions,'' as the term is defined in section 7(f) of the
new Executive Order. The issuance of the new Executive Order, blocking
the property and interests in property of the Government of Iran and
Iranian financial institutions, would have rendered these general and
specific licenses invalid to the extent that they authorized
transactions with the Government of Iran or an Iranian financial
institution. OFAC has taken action to preserve these licenses under the
new Executive Order.
In addition, OFAC has taken action to ensure that noncommercial,
personal remittances may continue to flow to or from Iran. The issuance
of the new Executive Order, blocking all Iranian financial
institutions, would have prohibited U.S. persons from processing
noncommercial, personal remittances to or from Iran that involve
Iranian financial institutions. General License B authorizes United
States depository institutions and United States registered brokers or
dealers in securities to process transfers of funds to or from Iran or
for or on behalf of an individual ordinarily resident in Iran, in cases
in which the transfer involves a noncommercial, personal remittance,
subject to certain restrictions.
General Licenses A and B are set forth below. They also are
available on OFAC's Web site at: www.treasury.gov/ofac.
General License A--Certain Transactions Otherwise Authorized Under
General or Specific Licenses Set Forth in or Issued Pursuant to 31 CFR
Chapter V Authorized
(a) Effective February 6, 2012, all transactions involving property
and interests in property of the Government of Iran or Iranian
financial institutions authorized under general licenses set forth in
the Iranian Transactions Regulations, 31 CFR part 560 (the ``ITR''),
are hereby authorized under the new Executive Order of February 5, 2012
(``Blocking Property of the Government of Iran and Iranian Financial
Institutions'') (``new Executive Order''), except as set forth in
paragraphs (c) and (d) of this general license.
(b) Effective February 6, 2012, all transactions involving property
and interests in property of the Government of Iran or Iranian
financial institutions authorized under specific licenses issued
pursuant to any part of 31 CFR chapter V, including specific licenses
issued pursuant to the Trade Sanctions Reform and Export Enhancement
Act of 2000 (22 U.S.C. 7201-7211), are hereby authorized under the new
Executive Order, and such specific licenses shall remain in effect
according to their terms, provided that such specific licenses have an
expiration date. If a specific license has no expiration date:
(1) If it was issued pursuant to any part or parts of 31 CFR
chapter V, but was not issued under 31 CFR part 535, then all
transactions involving property and interests in property of the
Government of Iran or Iranian financial institutions authorized under
such a specific license are hereby authorized under the new Executive
Order until April 6, 2012;
(2) If it was issued pursuant to 31 CFR part 535, including a
specific license issued pursuant to 31 CFR part 535 and another part or
other parts of 31 CFR chapter V, then all transactions involving
property and interests in property of the Government of Iran or Iranian
financial institutions authorized under such a specific license are
hereby authorized under the new Executive Order, and such a specific
license shall remain in effect according to its terms.
(c) This general license does not authorize any transactions
authorized by Sec. 560.517(a)(3) or (b)(2) of the ITR. Such
transactions involving property and interests in property of the
Government of Iran or an Iranian financial institution are prohibited
by the new Executive Order.
(d) This general license does not authorize any payments from
blocked funds or debits to blocked accounts, except for payments from
funds or debits to accounts blocked pursuant to 31 CFR part 535 that
are authorized by specific licenses issued pursuant to 31 CFR chapter
V.
(e) Definitions. As used in this general license:
(1) The term Government of Iran shall have the meaning set forth in
section 7(d) of the new Executive Order; and
(2) The term Iranian financial institutions shall have the meaning
set forth in section 7(f) of the new Executive Order.
General License B--Certain Noncommercial, Personal Remittances to or
From Iran Authorized
(a) Effective February 6, 2012, United States depository
institutions and United States registered brokers or dealers in
securities are authorized to process transfers of funds to or from Iran
or for or on behalf of an individual ordinarily resident in Iran who is
not included within the term ``Government of Iran,'' as defined in
section 7(d) of the new Executive Order of February 5, 2012 (``Blocking
Property of the Government of Iran and Iranian Financial
Institutions'') (``new Executive Order''), to the extent the transfer
is otherwise prohibited by the new Executive Order, in cases in which
the transfer involves a noncommercial, personal remittance, provided
the transfer is not by, to, or through any of the following:
(1) A person whose property and interests in property are blocked
pursuant to the Weapons of Mass Destruction Proliferators Sanctions
Regulations, 31 CFR part 544 (``WMDPSR''), or the Global Terrorism
Sanctions Regulations, 31 CFR part 594 (``GTSR''); or
(2) A person whose property and interests in property are blocked
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pursuant to any other part of 31 CFR chapter V, or any Executive order,
except an Iranian financial institution whose property and interests in
property are blocked solely pursuant to the new Executive Order.
(b) Noncommercial, personal remittances do not include charitable
donations to or for the benefit of an entity or funds transfers for use
in supporting or operating a business, including a family-owned
enterprise.
Note to paragraph (b) of General License B: Charitable
donations of funds to or for the benefit of an entity in Iran
require a specific license.
(c) The transferring institutions identified in paragraph (a) of
this general license may rely on the originator of a funds transfer
with regard to compliance with paragraph (a) of this general license,
provided that the transferring institution does not know or have reason
to know that the funds transfer is not in compliance with paragraph (a)
of this general license.
(d) Example. A United States depository institution may transmit a
noncommercial, personal remittance from a customer in the United States
to her mother in Iran, provided the remittance is routed through a
third-country financial institution to an Iranian financial institution
that has not been designated under the WMDPSR or the GTSR or any other
part of 31 CFR chapter V, or any Executive order, but whose property
and interests in property are blocked solely under the new Executive
Order.
Dated: February 6, 2012.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2012-3197 Filed 2-10-12; 8:45 am]
BILLING CODE 4810-AL-P