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SUMMARY: The Department of the the exportation of any goods, are inapplicable. Because no notice of Treasury’s Office of Foreign Assets technology, or services from the United proposed rulemaking is required for this Control (‘‘OFAC’’) is implementing States to Iraq. Executive Order 12722 rule, the Regulatory Flexibility Act (5 Executive Order 13350 of July 29, 2004, also prohibited transactions relating to U.S.C. 601–612) does not apply. which terminated the national transportation and travel to or from Iraq Paperwork Reduction Act emergency declared with respect to Iraq by United States citizens or permanent in Executive Order 12722 of August 2, resident aliens. The subsequent The Paperwork Reduction Act does 1990, and revoked that and subsequent Executive orders took various additional not apply because this rule does not Executive orders, by removing the Iraqi steps with respect to the situation in impose information collection Sanctions Regulations from the Code of Iraq. requirements that would require the Federal Regulations. Section 207(a) of the International approval of the Office of Management DATES: Effective Date: September 13, Emergency Economic Powers Act and Budget under 44 U.S.C. 3501 et seq. 2010. (‘‘IEEPA’’) (50 U.S.C. 1706(a)) contains a provision that allows the President to List of Subjects in 31 CFR Part 575 FOR FURTHER INFORMATION CONTACT: continue to prohibit transactions Assistant Director for Compliance, Administrative practice and involving property in which a foreign procedure, Banks, Banking, Blocking of Outreach & Implementation, tel.: 202/ country or national thereof has an 622–2490, Assistant Director for assets, Exports, Foreign trade, Imports, interest after a national emergency has Iraq, Oil imports, Penalties, Petroleum, Licensing, tel.: 202/622–2480, Assistant been terminated if the President Director for Policy, tel.: 202/622–4855, Petroleum products, Reporting and determines that the continuation of such recordkeeping requirements, Specially or Chief Counsel (Foreign Assets a prohibition with respect to that Control), tel.: 202/622–2410 (not toll designated nationals, Terrorism, Travel property is necessary on account of restrictions. free numbers). claims involving such country or its SUPPLEMENTARY INFORMATION: nationals. Pursuant to section 207(a) of PART 575—[REMOVED] Electronic and Facsimile Availability IEEPA, the President determined in Section 1 of Executive Order 13350 that ■ Pursuant to 50 U.S.C. 1701 et seq. and This document and additional continuation of prohibitions with regard Executive Order 13350, the Office of information concerning OFAC are to transactions involving property Foreign Assets Control amends 31 CFR available from OFAC’s Web site blocked pursuant to Executive Orders chapter V by removing part 575 for the (http: 12722 or 12724 that continued to be reasons set forth in the preamble. //www.treas.gov/ofac). Certain general blocked as of July 30, 2004, was information pertaining to OFAC’s necessary on account of claims Dated: September 1, 2010. sanctions programs also is available via involving Iraq. The new Iraq Adam J. Szubin, facsimile through a 24-hour fax-on- Stabilization and Insurgency Sanctions Director, Office of Foreign Assets Control, demand service, tel.: 202/622–0077. Regulations, 31 CFR part 576, include a Department of the Treasury. Background general license unblocking all remaining Approved: September 2, 2010. property blocked pursuant to Section 1 Stuart A. Levey, As a result of the removal of the of Executive Order 13350. See 31 CFR Under Secretary, Office of Terrorism and regime of Saddam Hussein and other 576.510. Financial Intelligence, Department of the developments in Iraq, the President Please note that certain transactions Treasury. issued Executive Order 13350 on July relating to Iraq remain subject to the Iraq [FR Doc. 2010–22548 Filed 9–10–10; 8:45 am] 29, 2004 (69 FR 46055, July 30, 2004). Stabilization and Insurgency BILLING CODE 4810–AL–P Executive Order 13350 terminated the Regulations, 31 CFR part 576, which national emergency declared with implement Executive Order 13303 of respect to Iraq in Executive Order 12722 May 22, 2003, Executive Order 13315 of DEPARTMENT OF THE TREASURY of August 2, 1990. In addition, August 28, 2003, Executive Order 13350 Executive Order 13350 revoked of July 29, 2004, Executive Order 13364 Office of Foreign Assets Control Executive Order 12722, Executive Order of November 29, 2004, and Executive 12724 of August 9, 1990, Executive Order 13438 of July 17, 2007. 31 CFR Part 576 Order 12743 of January 18, 1991, Accordingly, OFAC is removing the Executive Order 12751 of February 14, Iraqi Sanctions Regulations (the Iraq Stabilization and Insurgency 1991, and Executive Order 12817 of ‘‘Regulations’’) in 31 CFR part 575. The Sanctions Regulations October 21, 1992. These Executive removal of part 575 from 31 CFR AGENCY: orders were all in furtherance of the chapter V does not affect ongoing Office of Foreign Assets national emergency declared in enforcement proceedings or prevent the Control, Treasury. Executive Order 12722. initiation of enforcement proceedings ACTION: Final rule. In Executive Order 12722, the where the relevant statute of limitations President ordered the blocking of all has not run. SUMMARY: The Department of the property and interests in property that Treasury’s Office of Foreign Assets were in the United States or that came Executive Order 12866, Administrative Control (‘‘OFAC’’) is adding the Iraq within the possession or control of Procedure Act, and Regulatory Stabilization and Insurgency Sanctions United States persons, including Flexibility Act Regulations as a new part to the Code overseas branches, of the Government of Because the Regulations involve a of Federal Regulations, to implement Iraq, its agencies, instrumentalities, and foreign affairs function, the provisions Executive Order 13303 of May 22, 2003, controlled entities, and the Central Bank of Executive Order 12866 and the Executive Order 13315 of August 28, of Iraq (55 FR 31803, August 3, 1990). Administrative Procedure Act (5 U.S.C. 2003, Executive Order 13350 of July 29, Executive Order 12722 prohibited the 553) requiring notice of proposed 2004, Executive Order 13364 of importation of any goods or services of rulemaking, opportunity for public November 29, 2004, and Executive Iraqi origin into the United States and participation, and delay in effective date Order 13438 of July 17, 2007.

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DATES: Effective Date: September 13, thereof, and interests therein, in which of the persons listed in the Annex or 2010. any foreign country or national thereof determined to be subject to the Order. Section 2 of Executive Order 13315 FOR FURTHER INFORMATION CONTACT: has any interest, that are in, or come authorized the Secretary of the Assistant Director for Compliance, within, the United States, or that are in, Treasury, in consultation with the Outreach & Implementation, tel.: 202/ or come within, the possession or Secretary of State, to confiscate property 622–2490, Assistant Director for control of United States persons. blocked pursuant to section 1 and Licensing, tel.: 202/622–2480, Assistant Executive Order 13303 also provided determined to belong to a person, Director for Policy, tel.: 202/622–4855, that two earlier Executive orders that organization, or country that had or Chief Counsel (Foreign Assets had imposed comprehensive sanctions planned, authorized, aided, or engaged Control), tel.: 202/622–2410 (not toll against Iraq following the invasion of in armed hostilities against the United free numbers). Kuwait, including a trade embargo and a blocking of Iraqi government assets States. Section 2 directed that all right, SUPPLEMENTARY INFORMATION: (i.e., Executive Order 12722 of August 2, title, and interest in such confiscated Electronic and Facsimile Availability 1990, and Executive Order 12724 of property shall vest in the Department of August 9, 1990), as well as a more the Treasury, and such vested property This document and additional shall promptly be transferred to the information concerning OFAC are recent Executive order confiscating and vesting title to certain blocked Iraqi Development Fund for Iraq. available from OFAC’s Web site (http: Section 3 of Executive Order 13315 //www.treas.gov/ofac). Certain general property (i.e., Executive Order 13290 of March 20, 2003) were not applicable to prohibited any transaction by a United information pertaining to OFAC’s States person or within the United sanctions programs also is available via the property and interests in property described in section 1. States that evades or avoids, has the facsimile through a 24-hour fax-on- purpose of evading or avoiding, or On August 28, 2003, the President demand service, tel.: 202/622–0077. attempts to violate, any of the issued Executive Order 13315, under prohibitions set forth in the Order, as Background the authority of, inter alia, IEEPA, the well as any conspiracy formed to violate NEA, and the UNPA, and in view of Following the removal from power of such prohibitions. Section 4 defined United Nations Security Council the regime of Saddam Hussein in Iraq, certain terms used in the Order. Section Resolution (‘‘UNSCR’’) 1483 of May 22, the President issued Executive Order 5 set forth the President’s determination 2003. The President issued this Order to 13303 of May 22, 2003, under the that the making of donations of the type expand the scope of the national authority of, inter alia, the International specified in section 203(b)(2) of IEEPA emergency declared in Executive Order Emergency Economic Powers Act, 50 (i.e., donations of articles, such as food, U.S.C. 1701 et seq. (‘‘IEEPA’’), the 13303 to address the unusual and clothing, and medicine, intended to be National Emergencies Act, 50 U.S.C. extraordinary threat to the national used to relieve human suffering) by or 1601 et seq. (‘‘NEA’’), and section 5 of security and foreign policy of the United to persons determined to be subject to the United Nations Participation Act, 22 States posed by obstacles to the orderly the sanctions would seriously impair U.S.C. 287c (‘‘UNPA’’). In Executive reconstruction of Iraq, the restoration his ability to deal with the national Order 13303, the President found that and maintenance of peace and security emergency declared in Executive Order the threat of attachment or other judicial in that country, and the development of 13303 and expanded in scope in this process against the Development Fund its political, administrative, and Order and would endanger Armed for Iraq, Iraqi petroleum and petroleum economic institutions. The President Forces of the United States that were products, and interests therein, and found that the removal of Iraqi property engaged in hostilities. Accordingly, the proceeds, obligations, or financial from the country by certain senior President prohibited the donation of instruments arising from or related to officials of the former Iraqi regime and such items unless authorized by OFAC. the sale or marketing thereof obstructed their family members constituted such On July 29, 2004, the President issued the orderly reconstruction of Iraq, the an obstacle. The President determined Executive Order 13350, which, because restoration and maintenance of peace that the United States was engaged in of the removal of the regime of Saddam and security in the country, and the armed hostilities and that it was in the Hussein and other developments, development of political, interest of the United States to terminated the national emergency that administrative, and economic confiscate certain additional property of had been declared in Executive Order institutions in Iraq. The President the former Iraqi regime, certain senior 12722 with respect to Iraq, and revoked further determined that this situation officials of the former regime, that Order, Executive Order 12724, and constituted an unusual and immediate family members of those subsequent Orders that were based on extraordinary threat to the national officials, and controlled entities. the national emergency declared in security and foreign policy of the United Section 1 of Executive Order 13315 Executive Order 12722. In Executive States and declared a national blocked all property and interests in Order 13350, the President also took emergency to deal with that threat. property in the United States or in the certain additional steps to deal with the To deal with this emergency, section possession or control of United States national emergency declared in 1 of Executive Order 13303 provided persons, including any overseas branch, Executive Order 13303 and expanded in that, unless licensed or otherwise of: (1) The former Iraqi regime, (2) its Executive Order 13315, which remains authorized, any attachment, judgment, state bodies, corporations, or agencies, in effect. execution, or other judicial process is (3) persons listed in the Annex to the Among other things, the President’s prohibited and shall be deemed null Order, and (4) persons determined by termination of the national emergency and void with respect to (1) the the Secretary of the Treasury, in that had been declared in Executive Development Fund for Iraq, and (2) all consultation with the Secretary of State, Order 12722 and his revocation of that Iraqi petroleum and petroleum to be senior officials of the former Iraqi and related Orders ended, as of July 30, products, and interests therein, and regime or their immediate family 2004, the import and export proceeds, obligations, or any financial members or to be owned or controlled prohibitions that had been imposed instruments of any nature arising from by, or acting or purporting to act for or pursuant to Executive Orders 12722 and or related to the sale or marketing on behalf of, directly or indirectly, any 12724 and related regulations, including

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the Iraqi Sanctions Regulations, 31 CFR Iraq, the restoration and maintenance of threatening the peace or stability of Iraq part 575. As a practical matter, most peace and security in that country, and or the Government of Iraq, or (B) import and export transactions had been the development of political, undermining efforts to promote authorized by the provisions of subpart administrative, and economic economic reconstruction and political E of part 575 since May 23, 2003. OFAC institutions in Iraq. Accordingly, reform in Iraq or to provide has now removed the Iraqi Sanctions Executive Order 13364 amended section humanitarian assistance to the Iraqi Regulations from 31 CFR chapter V 1 of Executive Order 13303 to extend people; (ii) to have materially assisted, effective September 13, 2010. that section’s protection from sponsored, or provided financial, Section 1 of Executive Order 13350 attachment, judgment, execution, or material, logistical, or technical support provided for the continuation of other judicial process to any accounts, for, or goods or services in support of, prohibitions under section 207 of assets, investments, or any other such an act or acts of violence or any IEEPA, 50 U.S.C. 1706, with regard to property of any kind owned by, person whose property and interests in transactions involving property blocked belonging to, or held by the Central property are blocked pursuant to the pursuant to Executive Orders 12722 and Bank of Iraq, or held or otherwise Order; or (iii) to be owned or controlled 12724 that continued to be blocked as controlled by any financial institution by or to have acted or purported to act of July 30, 2004. In addition, section 1 in the name or on behalf of, or otherwise for or on behalf of, directly or indirectly, provided that the termination of the for, the Central Bank of Iraq. any person whose property and interests national emergency declared in In addition, consistent with UNSCRs in property are blocked pursuant to the Executive Order 12722 shall not affect 1483 and 1546, dated May 22, 2003, and Order. The prohibitions in section 1 any action taken or proceeding pending June 8, 2004, respectively, Executive include, but are not limited to, the but not finally concluded or determined Order 13364 amended section 1 of making of any contribution or provision as of July 30, 2004, any action or Executive Order 13303 to limit the of funds, goods, or services by, to, or for proceeding based on any act committed immunity provided therein in two ways. the benefit of any person whose prior to such date, or any rights or First, it provided that the immunity property and interests in property have duties that matured or penalties that from attachment for Iraqi petroleum and been blocked, and the receipt of any were incurred prior to such date. petroleum products and interests contribution or provision of funds, Accordingly, property blocked pursuant therein shall apply only until title goods, or services from any such person. to Executive Orders 12722 and 12724 as passes to the initial purchaser. Second, Acting under authority delegated to of July 30, 2004, remained blocked. it restricted the overall prohibition the Secretary of the Treasury by Section 2 replaced and superseded against attachment, judgment, Executive Orders 13303, 13315, 13350, the Annex to Executive Order 13315 in execution, or other judicial process so 13364 and 13438, OFAC is its entirety with the Annex to Executive that the immunity from attachment shall promulgating these Iraq Stabilization Order 13350. Section 3 amended not apply with respect to any final and Insurgency Sanctions Regulations, Executive Order 13290 by substituting judgment arising out of a contractual 31 CFR part 576 (the ‘‘Regulations’’), to the national emergency declared in obligation entered into by the implement the provisions of those Executive Order 13303 and expanded in Government of Iraq, including any orders. Executive Order 13315 for the one agency or instrumentality thereof, after Subpart A of the Regulations clarifies declared in Executive Order 12722. June 30, 2004. the relation of this part to other laws Section 4 prohibited the trade in or Finally, on July 17, 2007, the and regulations. Subpart B of the transfer of ownership or possession of President issued Executive Order 13438, Regulations sets forth: (a) The Iraqi cultural property or other items of finding that acts of violence threatening prohibitions contained in section 1 of archeological, historical, cultural, rare the peace and stability of Iraq and Executive Order 13303, as amended by scientific, and religious importance that undermining efforts to promote Executive Order 13364; (b) the were illegally removed, or for which a economic reconstruction and political prohibitions contained in section 1 of reasonable suspicion existed that they reform in Iraq and to provide Executive Order 13315, as amended by were illegally removed, from the Iraq humanitarian assistance to the Iraqi Executive Order 13350; (c) the National Museum, the National Library, people constitute an unusual and prohibitions contained in sections 1 and and other locations in Iraq since August extraordinary threat to the national 4 of Executive Order 13350; and (d) the 6, 1990, unless licensed or authorized security and foreign policy of the United prohibitions contained in section 1 of pursuant to Executive Order 13350 or States. Accordingly, he determined that Executive Order 13438. See §§ 576.201, otherwise consistent with U.S. law. it was in the interests of the United 576.206, 576.208. Persons identified in Section 5 prohibited the making of States to take additional steps with the Annex to Executive Order 13315, as donations of the type specified in respect to the national emergency amended by Executive Order 13350, or section 203(b)(2) of IEEPA by or to declared in Executive Order 13303, designated by or under the authority of persons determined to be subject to the expanded in Executive Order 13315, the Secretary of the Treasury pursuant sanctions imposed by Executive Order and relied upon for additional steps in to Executive Orders 13315 or 13438 are 13315, as amended by Executive Order Executive Orders 13350 and 13364. referred to throughout the Regulations 13350. Section 1 of Executive Order 13438 as ‘‘persons whose property and The President issued Executive Order blocked the property and interests in interests in property are blocked 13364 on November 29, 2004, further property in the United States or in the pursuant to § 576.201(a).’’ The names of modifying the scope of the national possession or control of United States persons listed in or designated pursuant emergency that was declared in persons, including any overseas branch, to Executive Orders 13315, 13350, and Executive Order 13303, expanded in of any person determined by the 13438 are published on OFAC’s Executive Order 13315, and modified in Secretary of the Treasury, in Specially Designated Nationals and Executive Order 13350. The President consultation with the Secretary of State Blocked Persons List, which is found that the threat of attachment or and the Secretary of Defense: (i) To have accessible via OFAC’s Web site. Those other judicial process against the committed, or to pose a significant risk names also are published in the Federal Central Bank of Iraq constituted an of committing, an act of violence that Register as they are added to the List, obstacle to the orderly reconstruction of has the purpose or effect of (A) and the entire List is republished

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annually as Appendix A to 31 CFR sets forth a Paperwork Reduction Act 576.206 Protection granted to the chapter V. notice. Development Fund for Iraq, Iraqi Petroleum and Petroleum Products, and Subpart C of the Regulations defines Public Participation key terms used throughout this part. the Central Bank of Iraq. Because the Regulations involve a 576.207 Exemption for property controlled Subpart D of the Regulations sets forth by the military forces of the United interpretive sections regarding other foreign affairs function, Executive Order States and their coalition partners in provisions in the Regulations. Section 12866 and the provisions of the Iraq. 576.411 of subpart D interprets a Administrative Procedure Act (5 U.S.C. 576.208 Prohibited transactions related to provision unique to Part 576, § 576.208, 553) requiring notice of proposed certain Iraqi cultural property. which provides that the trade in or rulemaking, opportunity for public 576.209 Exempt transactions. transfer of certain Iraqi cultural property participation, and delay in effective date Subpart C—General Definitions is prohibited. OFAC may establish a are inapplicable. Because no notice of violation of § 576.208 separate from, and proposed rulemaking is required for this 576.301 Blocked account; blocked rule, the Regulatory Flexibility Act (5 property. independent of, other laws and 576.302 Development Fund for Iraq. regulations that prohibit the trade in or U.S.C. 601–612) does not apply. 576.303 Effective date. transfer of Iraqi cultural property. Paperwork Reduction Act 576.304 Entity. Section 576.411 states that the mere 576.305 Former Iraqi regime. compliance with certain legal, The collections of information related 576.306 Information or informational administrative, or procedural to the Regulations are contained in 31 materials. requirements, such as those set forth by CFR part 501 (the ‘‘Reporting, 576.307 Interest. U.S. Customs and Border Protection, Procedures and Penalties Regulations’’). 576.308 Iraqi petroleum and petroleum does not preclude a violation of Pursuant to the Paperwork Reduction products. Act of 1995 (44 U.S.C. 3507), those 576.309 Licenses; general and specific. § 576.208. 576.310 Government of Iraq. Transactions otherwise prohibited collections of information have been 576.311 Person. under the Regulations but found to be previously approved by the Office of 576.312 Property; property interest. consistent with U.S. policy may be Management and Budget under control 576.313 Transfer. authorized by one of the general number 1505–0164. An agency may not 576.314 UNSC Resolution 1483. licenses contained in subpart E of the conduct or sponsor, and a person is not 576.315 United States. Regulations or by a specific license required to respond to, a collection of 576.316 U.S. financial institution. issued pursuant to the procedures information unless the collection of 576.317 United States person; U.S. person. described in subpart E of part 501 of 31 information displays a valid control Subpart D—Interpretations CFR chapter V. In addition to the number. 576.401 Reference to amended sections. general licenses, subpart E of the List of Subjects in 31 CFR Part 576 576.402 Effect of amendment. Regulations also contains certain 576.403 Setoffs prohibited. statements of licensing policy. In Administrative practice and 576.404 Termination and acquisition of an particular, OFAC may license or procedure, Banks, Banking, Blocking of interest in property. authorize, on a case-by-case basis, assets, Courts, Exports, Foreign trade, 576.405 Transactions ordinarily incident to judicial process with regard to property Imports, Iraq, Oil imports, Penalties, a licensed transaction. Petroleum, Petroleum products, 576.406 Provision of services. and interests in property protected by 576.407 Offshore transactions. § 576.206(a) to satisfy liability for Reporting and recordkeeping requirements, Specially designated 576.408 Payments from blocked accounts damages assessed in connection with an to satisfy obligations prohibited. ecological accident, including an oil nationals. 576.409 Charitable contributions. spill. See § 576.508. The language in ■ For the reasons set forth in the 576.410 Credit extended and cards issued § 576.508 derives from UNSCR 1483, preamble, the Department of the by U.S. financial institutions. which requires all States to provide Treasury’s Office of Foreign Assets 576.411 Prohibited transactions involving certain Iraqi cultural property. immunity to Iraqi petroleum, petroleum Control adds part 576 to 31 CFR chapter products, and natural gas in regard to 576.412 Entities owned by a person whose V to read as follows: property and interests in property are any form of attachment, garnishment, or blocked. execution in their respective domestic PART 576—IRAQ STABILIZATION AND legal systems, unless the proceeds are INSURGENCY SANCTIONS Subpart E—Licenses, Authorizations, and needed to satisfy liability for damages REGULATIONS Statements of Licensing Policy assessed in connection with an 576.501 General and specific licensing ecological accident that occurred after Subpart A—Relation of This Part to Other procedures. Laws and Regulations May 22, 2003. 576.502 Effect of license or authorization. 576.503 Exclusion from licenses. Subpart F of the Regulations refers to Sec. 576.101 Relation of this part to other laws 576.504 Payments and transfers to blocked subpart C of part 501 for applicable and regulations. accounts in U.S. financial institutions. recordkeeping and reporting 576.505 Entries in certain accounts for requirements. Subpart G of the Subpart B—Prohibitions normal service charges authorized. Regulations describes the civil and 576.201 Prohibited transactions involving 576.506 Investment and reinvestment of criminal penalties applicable to blocked property. certain funds. violations of the regulations, as well as 576.202 Effect of transfers violating the 576.507 Provision of certain legal services the procedures governing the potential provisions of this part. authorized. imposition of a civil monetary penalty. 576.203 Holding of funds in interest- 576.508 Judicial process in legal bearing accounts; investment and proceedings involving ecological Subpart H of the Regulations refers to reinvestment. accidents. subpart D of part 501 for applicable 576.204 Expenses of maintaining blocked 576.509 Authorization of emergency provisions relating to administrative physical property; liquidation of blocked medical services. procedures and sets forth a delegation of property. 576.510 Unblocking certain blocked authorities. Subpart I of the Regulations 576.205 Evasions; attempts; conspiracies. property.

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576.511 Property controlled by the military Subpart B—Prohibitions paragraph (a) of this section, are published forces of the United States and their on the Office of Foreign Assets Control’s coalition partners in Iraq. § 576.201 Prohibited transactions Specially Designated Nationals and Blocked 576.512 Transactions with certain blocked involving blocked property. Persons List (‘‘SDN’’ list) (which is accessible persons authorized. (a) All property and interests in via the Office of Foreign Assets Control’s property that are in the United States, Web site), published in the Federal Register, Subpart F—Reports and incorporated into Appendix A to this that hereafter come within the United chapter with the identifier ‘‘[IRAQ2]’’ (for 576.601 Records and reports. States, or that are or hereafter come persons designated pursuant to paragraphs Subpart G—Penalties within the possession or control of U.S. (a)(1) and (a)(2) of this section) or ‘‘[IRAQ3]’’ persons, including their overseas (for persons designated pursuant to 576.701 Penalties. branches, of the former Iraqi regime or paragraph (a)(3) of this section). See 576.702 Pre-Penalty Notice; settlement. its state bodies, corporations, or § 576.412 concerning entities that may not be 576.703 Penalty imposition. agencies, or of the following persons are listed on the SDN list but whose property 576.704 Administrative collection; referral blocked and may not be transferred, and interests in property are nevertheless to United States Department of Justice. blocked pursuant to paragraph (a) of this paid, exported, withdrawn, or otherwise section. Subpart H—Procedures dealt in: 576.801 Procedures. (1) Persons listed in the Annex to Note 2 to paragraph (a) of § 576.201: The 576.802 Delegation by the Secretary of the Executive Order 13315 of August 28, International Emergency Economic Powers ‘‘ ’’ Treasury. 2003, as amended by Executive Order Act (50 U.S.C. 1701–1706) ( IEEPA ), in 13350 of July 29, 2004; and section 203 (50 U.S.C. 1702), explicitly Subpart I—Paperwork Reduction Act (2) Persons determined by the authorizes the blocking of property and interests in property of a person during the 576.901 Paperwork Reduction Act notice. Secretary of the Treasury, in pendency of an investigation. The names of Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 consultation with the Secretary of State, persons whose property and interests in U.S.C. 321(b); 50 U.S.C. 1601–1651, 1701– (i) To be senior officials of the former property are blocked pending investigation 1706; Pub. L. 110–96, 121 Stat. 1011; E.O. Iraqi regime or their immediate family pursuant to this part are published on the 13303, 68 FR 31931, 3 CFR, 2003 Comp., p. members; or SDN list, published in the Federal Register, and incorporated into Appendix A to this 227; E.O. 13315, 68 FR 52315, 3 CFR, 2003 (ii) To be owned or controlled by, or chapter with the identifier ‘‘[BPI–IRAQ2]’’ or Comp., p. 252; E.O. 13350, 69 FR 46055, 3 acting or purporting to act for or on ‘‘[BPI–IRAQ3].’’ CFR, 2004 Comp., p. 196; E.O. 13364, 69 FR behalf of, directly or indirectly, any of the persons whose property and 70177, 3 CFR, 2004 Comp., p. 236; E.O. Note 3 to paragraph (a) of § 576.201: 13438, 72 FR 39719, 3 CFR, 2007 Comp., p. interests in property are blocked Sections 501.806 and 501.807 of this chapter 224. pursuant to paragraphs (a)(1) or (a)(2) of describe the procedures to be followed by this section; and persons seeking, respectively, the unblocking Subpart A—Relation of This Part to (3) Persons determined by the of funds that they believe were blocked due Other Laws and Regulations Secretary of the Treasury, in to mistaken identity, or administrative consultation with the Secretary of State reconsideration of their status as persons § 576.101 Relation of this part to other and the Secretary of Defense, whose property and interests in property are laws and regulations. (i) To have committed, or to pose a blocked pursuant to paragraph (a) of this section. This part is separate from, and significant risk of committing, an act or independent of, the other parts of this acts of violence that have the purpose or (b) All property and interests in chapter, with the exception of part 501 effect of: property blocked pursuant to Executive of this chapter, the recordkeeping and (A) Threatening the peace or stability Order 12722 of August 2, 1990, or reporting requirements and license of Iraq or the Government of Iraq; or Executive Order 12724 of August 9, application and other procedures of (B) Undermining efforts to promote 1990, that continued to be blocked as of which apply to this part. Actions taken economic reconstruction and political July 30, 2004, remain blocked and may pursuant to part 501 of this chapter with reform in Iraq or to provide not be transferred, paid, exported, respect to the prohibitions contained in humanitarian assistance to the Iraqi withdrawn, or otherwise dealt in, except this part are considered actions taken people; as authorized by regulations, orders, pursuant to this part. Differing foreign (ii) To have materially assisted, directives, rulings, instructions, licenses policy and national security sponsored, or provided financial, or otherwise, and notwithstanding any circumstances may result in differing material, logistical, or technical support contracts entered into or any license or interpretations of similar language for, or goods or services in support of, permit granted prior to the effective among the parts of this chapter. No such an act or acts of violence or any date. license or authorization contained in or person whose property and interests in Note to paragraph (b) of § 576.201: In issued pursuant to those other parts property are blocked pursuant to § 576.510 of this part, the Office of Foreign authorizes any transaction prohibited by paragraph (a)(3) of this section; or Assets Control authorizes all transactions this part. No license or authorization (iii) To be owned or controlled by, or involving property and interests in property contained in or issued pursuant to any to have acted or purported to act for or blocked solely pursuant to Executive Orders 12722 or 12724. The Iraqi Sanctions other provision of law or regulation on behalf of, directly or indirectly, any person whose property and interests in Regulations, 31 CFR part 575, which authorizes any transaction prohibited by implemented Executive Orders 12722 and this part. No license or authorization property are blocked pursuant to paragraph (a)(3) of this section. 12724, have been removed from 31 CFR contained in or issued pursuant to this chapter V. part relieves the involved parties from Note 1 to paragraph (a) of § 576.201: The names of persons listed in or designated (c) The prohibitions in paragraphs (a) complying with any other applicable and (b) of this section include, but are laws or regulations. pursuant to Executive Order 13315, as amended by Executive Order 13350, or not limited to, prohibitions on the Note to § 576.101: The Iraqi Sanctions designated pursuant to Executive Order following transactions: Regulations, 31 CFR part 575, have been 13438 of July 17, 2007, whose property and (1) The making of any contribution or removed from 31 CFR chapter V. interests in property are blocked pursuant to provision of funds, goods, or services

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by, to, or for the benefit of any person notice of the transfer or by any written of paragraphs (d)(1) and (d)(2) of this section whose property and interests in evidence had recognized such transfer. have been satisfied. property are blocked pursuant to (c) Unless otherwise provided, an (e) Unless licensed pursuant to this paragraphs (a) or (b) of this section; and appropriate license or other part, any attachment, judgment, decree, (2) The receipt of any contribution or authorization issued by the Office of lien, execution, garnishment, or other provision of funds, goods, or services Foreign Assets Control before, during, or judicial process is null and void with from any person whose property and after a transfer shall validate such respect to any property in which, on or interests in property are blocked transfer or make it enforceable to the since the effective date, there existed an pursuant to paragraphs (a) or (b) of this same extent that it would be valid or interest of a person whose property and section. enforceable but for the provisions of interests in property are blocked (d) Unless otherwise authorized by IEEPA, Executive Orders 13315, 13350, pursuant to § 576.201(a), or with respect this part or by a specific license or 13438, this part, and any regulation, to any property and interests in property expressly referring to this section, any order, directive, ruling, instruction, or blocked pursuant to § 576.201(b). dealing in any security (or evidence license issued pursuant to this part. thereof) held within the possession or (d) Transfers of property that § 576.203 Holding of funds in interest- control of a U.S. person and either otherwise would be null and void or bearing accounts; investment and registered or inscribed in the name of, unenforceable by virtue of the reinvestment. or known to be held for the benefit of, provisions of this section shall not be (a) Except as provided in paragraph or issued by, any person whose property deemed to be null and void or (c) or (d) of this section, or as otherwise and interests in property are blocked unenforceable as to any person with directed by the Office of Foreign Assets pursuant to paragraph (a) of this section whom such property is or was held or Control, any U.S. person holding funds, is prohibited. This prohibition includes maintained (and as to such person only) such as currency, bank deposits, or but is not limited to the transfer in cases in which such person is able to liquidated financial obligations, subject (including the transfer on the books of establish to the satisfaction of the Office to § 576.201(a) or § 576.201(b) shall hold any issuer or agent thereof), disposition, of Foreign Assets Control each of the or place such funds in a blocked transportation, importation, exportation, following: interest-bearing account located in the or withdrawal of, or the endorsement or (1) Such transfer did not represent a United States. guaranty of signatures on, any such willful violation of the provisions of this (b)(1) For purposes of this section, the security on or after the effective date. part by the person with whom such term blocked interest-bearing account This prohibition applies irrespective of property is or was held or maintained means a blocked account: the fact that at any time (whether prior (and as to such person only); (i) In a federally-insured U.S. bank, to, on, or subsequent to the effective (2) The person with whom such thrift institution, or credit union, date) the registered or inscribed owner property was held or maintained did not provided the funds are earning interest of any such security may have or might have reasonable cause to know or at rates that are commercially appear to have assigned, transferred, or suspect, in view of all the facts and reasonable; or otherwise disposed of the security. circumstances known or available to (ii) With a broker or dealer registered (e) The prohibitions in paragraphs (a) such person, that such transfer required with the Securities and Exchange and (b) of this section apply except to a license or authorization issued Commission under the Securities the extent transactions are authorized by pursuant to this part and was not so Exchange Act of 1934 (15 U.S.C. 78a et regulations, orders, directives, rulings, licensed or authorized, or, if a license or seq.), provided the funds are invested in instructions, licenses, or otherwise, and authorization did purport to cover the a money market fund or in U.S. notwithstanding any contracts entered transfer, that such license or Treasury bills. into or any license or permit granted authorization had been obtained by (2) For purposes of this section, a rate prior to the effective date. misrepresentation of a third party or is commercially reasonable if it is the withholding of material facts or was rate currently offered to other depositors § 576.202 Effect of transfers violating the otherwise fraudulently obtained; and on deposits or instruments of provisions of this part. (3) The person with whom such comparable size and maturity. (a) Any transfer after the effective date property is or was held or maintained (3) Funds held or placed in a blocked that is in violation of any provision of filed with the Office of Foreign Assets account pursuant to this paragraph (b) this part or of any regulation, order, Control a report setting forth in full the may not be invested in instruments the directive, ruling, instruction, or license circumstances relating to such transfer maturity of which exceeds 180 days. If issued pursuant to this part, and that promptly upon discovery that: interest is credited to a separate blocked involves any property or interest in (i) Such transfer was in violation of account or subaccount, the name of the property blocked pursuant to the provisions of this part or any account party on each account must be § 576.201(a) or § 576.201(b), is null and regulation, ruling, instruction, license, the same. void and shall not be the basis for the or other direction or authorization (c) Blocked funds held in instruments assertion or recognition of any interest issued pursuant to this part; the maturity of which exceeds 180 days in or right, remedy, power, or privilege (ii) Such transfer was not licensed or at the time the funds become subject to with respect to such property or authorized by the Office of Foreign § 576.201(a) or § 576.201(b) may property interests. Assets Control; or continue to be held until maturity in the (b) No transfer before the effective (iii) If a license did purport to cover original instrument, provided any date shall be the basis for the assertion the transfer, such license had been interest, earnings, or other proceeds or recognition of any right, remedy, obtained by misrepresentation of a third derived therefrom are paid into a power, or privilege with respect to, or party or withholding of material facts or blocked interest-bearing account in any interest in, any property or interest was otherwise fraudulently obtained. accordance with paragraph (b) or (d) of in property blocked pursuant to Note to paragraph (d) of § 576.202: The this section. § 576.201(a) or § 576.201(b), unless the filing of a report in accordance with the (d) Blocked funds held in accounts or person who holds or maintains such provisions of paragraph (d)(3) of this section instruments outside the United States at property, prior to that date, had written shall not be deemed evidence that the terms the time the funds become subject to

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§ 576.201(a) or § 576.201(b) may prohibitions set forth in this part is cultural, rare scientific, and religious continue to be held in the same type of prohibited. importance that were illegally removed, accounts or instruments, provided the or for which a reasonable suspicion funds earn interest at rates that are § 576.206 Protection granted to the exists that they were illegally removed, Development Fund for Iraq, Iraqi Petroleum commercially reasonable. and Petroleum Products, and the Central from the Iraq National Museum, the (e) This section does not create an Bank of Iraq. National Library, and other locations in affirmative obligation for the holder of (a) Unless licensed or otherwise Iraq since August 6, 1990, is prohibited. blocked tangible property, such as authorized pursuant to this part, and Note to § 576.208: See § 576.411 for chattels or real estate, or other blocked except as provided in paragraph (b) of interpretive guidance on this section. property, such as debt or equity this section, any attachment, judgment, Questions concerning whether particular securities, to sell or liquidate such decree, lien, execution, garnishment, or Iraqi cultural property or other items are subject to this section should be directed to property. However, the Office of Foreign other judicial process on or after the Assets Control may issue licenses the Cultural Heritage Center, U.S. effective date is prohibited, and shall be Department of State, tel. 202–632–6301, fax permitting or directing such sales or deemed null and void, with respect to liquidation in appropriate cases. 202–632–6300, Web site http:// the following: culturalheritage.state.gov, e-mail (f) Funds subject to this section may (1) The Development Fund for Iraq; [email protected]. not be held, invested, or reinvested in (2) All Iraqi petroleum and petroleum a manner that provides immediate products, and interests therein, but only § 576.209 Exempt transactions. financial or economic benefit or access until title passes to the initial purchaser, (a) Personal communications. The to any person whose property and and proceeds, obligations, or any prohibitions contained in interests in property are blocked financial instruments of any nature § 576.201(a)(3) do not apply to any pursuant to § 576.201(a), nor may their whatsoever arising from or related to the postal, telegraphic, telephonic, or other holder cooperate in or facilitate the sale or marketing thereof, and interests personal communication that does not pledging or other attempted use as therein, in which any foreign country or involve the transfer of anything of value. collateral of blocked funds or other a national thereof has any interest, that (b) Information or informational assets. are in the United States, that hereafter materials. (1) The importation from any § 576.204 Expenses of maintaining come within the United States, or that country and the exportation to any blocked physical property; liquidation of are or hereafter come within the country of any information or blocked property. possession or control of United States informational materials, as defined in (a) Except as otherwise authorized, persons; and § 576.306, whether commercial or and notwithstanding the existence of (3) Any accounts, assets, investments, otherwise, regardless of format or any rights or obligations conferred or or any other property of any kind owned medium of transmission, are exempt imposed by any international agreement by, belonging to, or held by the Central from the prohibitions of § 576.201(a)(3). or contract entered into or any license Bank of Iraq, or held, maintained, or (2) This section does not exempt from or permit granted prior to the effective otherwise controlled by any financial regulation or authorize transactions date, all expenses incident to the institution of any kind in the name of, related to information or informational maintenance of physical property on behalf of, or otherwise for the Central materials not fully created and in blocked pursuant to § 576.201(a) or Bank of Iraq. existence at the date of the transactions, § 576.201(b) shall be the responsibility (b) The prohibitions in paragraph (a) or to the substantive or artistic alteration of the owners or operators of such of this section shall not apply with or enhancement of informational property, which expenses shall not be respect to any final judgment arising out materials, or to the provision of met from blocked funds. of a contractual obligation entered into marketing and business consulting (b) Property blocked pursuant to by the Government of Iraq, including services. Such prohibited transactions § 576.201(a) or § 576.201(b) may, in the any agency or instrumentality thereof, include, but are not limited to, payment discretion of the Office of Foreign after June 30, 2004. of advances for information or informational materials not yet created Assets Control, be sold or liquidated § 576.207 Exemption for property and the net proceeds placed in a controlled by the military forces of the and completed (with the exception of blocked interest-bearing account in the United States and their coalition partners in prepaid subscriptions for widely name of the owner of the property. Iraq. circulated magazines and other The prohibitions in § 576.201(a)(1) periodical publications); provision of § 576.205 Evasions; attempts; services to market, produce or co- conspiracies. and (a)(2) shall not apply to property and interests in property that come produce, create, or assist in the creation (a) Except as otherwise authorized, under the control of the military forces of information or informational and notwithstanding any contract of the United States and their coalition materials; and, with respect to entered into or any license or permit partners present in Iraq and acting in information or informational materials granted prior to the effective date, any their official capacity under the imported from persons whose property transaction by any U.S. person or within command or operational control of the and interests in property are blocked the United States on or after the commander of United States Central pursuant to § 576.201(a)(3), payment of effective date that evades or avoids, has Command. royalties with respect to income the purpose of evading or avoiding, or received for enhancements or alterations attempts to violate any of the § 576.208 Prohibited transactions related made by U.S. persons to such prohibitions set forth in this part is to certain Iraqi cultural property. information or informational materials. prohibited. Unless licensed or otherwise (3) This section does not exempt or (b) Except as otherwise authorized, authorized pursuant to this part or authorize transactions incident to the and notwithstanding any contract otherwise consistent with U.S. law, the exportation of software subject to the entered into or any license or permit trade in or transfer of ownership or Export Administration Regulations, 15 granted prior to the effective date, any possession of Iraqi cultural property or CFR parts 730–774, or to the exportation conspiracy formed to violate the other items of archeological, historical, of goods, technology, or software for use

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in the transmission of any data, or to the prohibitions and directives contained in (2) With respect to which acts are provision, sale, or leasing of capacity on this part as follows: prohibited by 18 U.S.C. chapter 37. telecommunications transmission (a) With respect to a person whose facilities (such as satellite or terrestrial property and interests in property are § 576.307 Interest. network connectivity) for use in the blocked pursuant to § 576.201(a)(1), Except as otherwise provided in this transmission of any data. The 12:01 a.m. Eastern Daylight Time part, the term interest, when used with exportation of such items or services (‘‘e.d.t.’’), August 29, 2003, for those respect to property (e.g., ‘‘an interest in and the provision, sale, or leasing of persons listed on the Annex to property’’) means an interest of any such capacity or facilities to a person Executive Order 13315, and 12:01 a.m., nature whatsoever, direct or indirect. e.d.t., July 30, 2004, for those persons whose property and interests in § 576.308 Iraqi petroleum and petroleum property are blocked pursuant to added to the Annex to Executive Order products. § 576.201(a) are prohibited. 13315 by Executive Order 13350; The term Iraqi petroleum and (c) Travel. The prohibitions contained (b) With respect to a person whose petroleum products means any in § 576.201(a)(3) do not apply to any property and interests in property are petroleum, petroleum products, or transactions ordinarily incident to travel otherwise blocked pursuant to natural gas originating in Iraq, including to or from any country, including § 576.201(a)(2) or (a)(3), the earlier of any Iraqi-origin oil inventories, importation of accompanied baggage for the date of actual or constructive notice wherever located. personal use, maintenance within any that such person’s property and country including payment of living interests in property are blocked; § 576.309 Licenses; general and specific. expenses and acquisition of goods or (c) With respect to the transactions prohibited by § 576.206(a)(1) and (a)(2), (a) Except as otherwise specified, the services for personal use, and term license means any license or arrangement or facilitation of such 12:01 a.m. e.d.t., May 23, 2003; (d) With respect to the transactions authorization contained in or issued travel including nonscheduled air, sea, prohibited by § 576.206(a)(3), 12:01 a.m. pursuant to this part. or land voyages. Eastern Standard Time (‘‘e.s.t.’’), (b) The term general license means any license or authorization the terms of Subpart C—General Definitions November 30, 2004. (e) With respect to the transactions which are set forth in subpart E of this § 576.301 Blocked account; blocked prohibited by § 576.201(b) or § 576.208, part. property. 12:01 a.m. e.d.t., July 30, 2004. (c) The term specific license means The terms blocked account and any license or authorization not set forth § 576.304 Entity. blocked property shall mean: in subpart E of this part but issued (a) (1) Any account or property The term entity means a partnership, pursuant to this part. association, trust, joint venture, subject to the prohibitions in Note to § 576.309: See § 501.801 of this § 576.201(a) held in the name of a corporation, group, subgroup or other chapter for licensing procedures. person whose property and interests in organization. property are blocked pursuant to § 576.305 Former Iraqi regime. § 576.310 Government of Iraq. § 576.201(a), or in which such person The term former Iraqi regime means The term Government of Iraq means: has an interest, or the Saddam Hussein regime that (a) Any interim or permanent Iraqi (2) Any account or property subject to governed Iraq until on or about May 1, government in authority after June 30, the prohibitions in § 576.201(b), and 2003. 2004, and any subdivision, agency, or (b) With respect to which payments, instrumentality thereof; and transfers, exportations, withdrawals, or § 576.306 Information or informational (b) Any partnership, association, materials. other dealings may not be made or corporation, or other organization effected except pursuant to an (a) For purposes of this part, the term substantially owned or controlled by the authorization or license from the Office information or informational materials foregoing. of Foreign Assets Control expressly includes, but is not limited to, authorizing such action. publications, films, posters, phonograph § 576.311 Person. records, photographs, microfilms, Note to § 576.301: See § 576.412 The term person means an individual concerning the blocked status of property microfiche, tapes, compact disks, CD or entity. and interests in property of an entity that is ROMs, artworks, and news wire feeds. § 576.312 Property; property interest. 50 percent or more owned by a person whose Note to paragraph (a) of § 576.307: To be property and interests in property are considered information or informational The terms property and property blocked pursuant to § 576.201(a). materials, artworks must be classified under interest include, but are not limited to, chapter heading 9701, 9702, or 9703 of the money, checks, drafts, bullion, bank § 576.302 Development Fund for Iraq. Harmonized Tariff Schedule of the United deposits, savings accounts, debts, The term Development Fund for Iraq States. indebtedness, obligations, notes, means the fund established on or about (b) The term information or guarantees, debentures, stocks, bonds, May 22, 2003, on the books of the informational materials, with respect to coupons, any other financial Central Bank of Iraq, by the United States exports, does not include instruments, bankers acceptances, Administrator of the Coalition items: mortgages, pledges, liens or other rights Provisional Authority responsible for (1) That were, as of April 30, 1994, or in the nature of security, warehouse the temporary governance of Iraq and all that thereafter become, controlled for receipts, bills of lading, trust receipts, accounts held for the fund or for the export pursuant to sections 5 of the bills of sale, any other evidences of title, Central Bank of Iraq in the name of the Export Administration Act of 1979, 50 ownership or indebtedness, letters of fund. U.S.C. App. 2401–2420 (1979) (the credit and any documents relating to ‘‘EAA’’), or section 6 of the EAA to the any rights or obligations thereunder, § 576.303 Effective date. extent that such controls promote the powers of attorney, goods, wares, The term effective date refers to the nonproliferation or antiterrorism merchandise, chattels, stocks on hand, effective date of the applicable policies of the United States; or ships, goods on ships, real estate

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mortgages, deeds of trust, vendors’ sales § 576.316 U.S. financial institution. § 576.403 Setoffs prohibited. agreements, land contracts, leaseholds, The term U.S. financial institution A setoff against blocked property ground rents, real estate and any other means any U.S. entity (including its (including a blocked account), whether interest therein, options, negotiable foreign branches) that is engaged in the by a U.S. bank or other U.S. person, is instruments, trade acceptances, business of accepting deposits, making, a prohibited transfer under § 576.201 if royalties, book accounts, accounts granting, transferring, holding, or made after the effective date. payable, judgments, patents, trademarks brokering loans or credits, or purchasing or copyrights, insurance policies, safe or selling foreign exchange, securities, § 576.404 Termination and acquisition of an interest in property. deposit boxes and their contents, commodity futures or options, or annuities, pooling agreements, services procuring purchasers and sellers (a) Whenever a transaction licensed or of any nature whatsoever, contracts of thereof, as principal or agent. It includes authorized by or pursuant to this part any nature whatsoever, and any other but is not limited to depository results in the transfer of property property, real, personal, or mixed, institutions, banks, savings banks, trust (including any property interest) away tangible or intangible, or interest or companies, securities brokers and from a person, such property shall no interests therein, present, future or dealers, commodity futures and options longer be deemed to be property contingent. brokers and dealers, forward contract blocked pursuant to § 576.201, unless and foreign exchange merchants, there exists in the property another § 576.313 Transfer. securities and commodities exchanges, interest that is blocked pursuant to § 576.201 or any other part of this The term transfer means any actual or clearing corporations, investment companies, employee benefit plans, and chapter, the transfer of which has not purported act or transaction, whether or been effected pursuant to license or not evidenced by writing, and whether U.S. holding companies, U.S. affiliates, or U.S. subsidiaries of any of the other authorization. or not done or performed within the (b) Unless otherwise specifically United States, the purpose, intent, or foregoing. This term includes those branches, offices, and agencies of provided in a license or authorization effect of which is to create, surrender, issued pursuant to this part, if property release, convey, transfer, or alter, foreign financial institutions that are located in the United States, but not (including any property interest) is directly or indirectly, any right, remedy, transferred or attempted to be power, privilege, or interest with respect such institutions’ foreign branches, offices, or agencies. transferred to a person whose property to any property. Without limitation on and interests in property are blocked the foregoing, it shall include the § 576.317 United States person; U.S. pursuant to § 576.201(a), such property making, execution, or delivery of any person. shall be deemed to be property in which assignment, power, conveyance, check, The term United States person or U.S. that person has an interest and therefore declaration, deed, deed of trust, power person means any United States citizen, blocked. of attorney, power of appointment, bill permanent resident alien, entity (c) Unless otherwise provided in a of sale, mortgage, receipt, agreement, organized under the laws of the United license or authorization issued pursuant contract, certificate, gift, sale, affidavit, States or any jurisdiction within the to this part, Iraqi petroleum and or statement; the making of any United States (including foreign petroleum products shall enjoy the payment; the setting off of any branches), or any person in the United protections of § 576.206 until title obligation or credit; the appointment of States. passes to the initial purchaser. For any agent, trustee, or fiduciary; the purposes of this part, an initial creation or transfer of any lien; the Subpart D—Interpretations purchaser is a purchaser other than the issuance, docketing, filing, or levy of or Government of Iraq or persons acting for § 576.401 Reference to amended sections. under any judgment, decree, it or on its behalf in the marketing or attachment, injunction, execution, or Except as otherwise specified, sale of Iraqi petroleum and petroleum other judicial or administrative process reference to any provision in or products. or order, or the service of any appendix to this part or chapter or to garnishment; the acquisition of any any regulation, ruling, order, § 576.405 Transactions ordinarily incident to a licensed transaction. interest of any nature whatsoever by instruction, directive, or license issued reason of a judgment or decree of any pursuant to this part refers to the same Any transaction ordinarily incident to foreign country; the fulfillment of any as currently amended. a licensed transaction and necessary to give effect thereto is also authorized, condition; the exercise of any power of § 576.402 Effect of amendment. appointment, power of attorney, or except: Unless otherwise specifically other power; or the acquisition, (a) An ordinarily incident transaction, provided, any amendment, disposition, transportation, importation, not explicitly authorized within the modification, or revocation of any exportation, or withdrawal of any terms of the license, by or with a person provision in or appendix to this part or security. whose property and interests in chapter or of any order, regulation, property are blocked pursuant to § 576.314 UNSC Resolution 1483. ruling, instruction, or license issued by § 576.201(a); or the Office of Foreign Assets Control (b) An ordinarily incident transaction, The term UNSC Resolution 1483 does not affect any act done or omitted, not explicitly authorized within the means United Nations Security Council or any civil or criminal proceeding terms of the license, involving a debit to Resolution No. 1483, adopted May 22, commenced or pending, prior to such a blocked account or a transfer of 2003. amendment, modification, or blocked property. § 576.315 United States. revocation. All penalties, forfeitures, (c) and liabilities under any such order, Example. A license authorizing Company The term United States means the regulation, ruling, instruction, or license A, whose property and interests in property United States, its territories and continue and may be enforced as if such are blocked pursuant to § 576.201(a), to possessions, and all areas under the amendment, modification, or revocation complete a securities sale also authorizes all jurisdiction or authority thereof. had not been made. activities by other parties required to

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complete the sale, including transactions by part, a contribution is made by, to, or for and the emergency protection of Iraqi the buyer, broker, transfer agents, banks, etc., the benefit of, or received from, a person cultural antiquities, 19 CFR 12.104j. provided that such other parties are not whose property and interests in themselves persons whose property and property are blocked pursuant to § 576.412 Entities owned by a person interests in property are blocked pursuant to § 576.201(a) if made by, to, or in the whose property and interests in property § 576.201(a). are blocked. name of, or received from or in the § 576.406 Provision of services. name of, such a person; if made by, to, A person whose property and interests in property are blocked (a) Except as provided in § 576.209, or in the name of, or received from or pursuant to § 576.201(a) has an interest the prohibitions on transactions in the name of, an entity or individual in all property and interests in property involving blocked property contained in acting for or on behalf of, or owned or of an entity in which it owns, directly § 576.201 apply to services performed in controlled by, such a person; or if made or indirectly, a 50 percent or greater the United States or by U.S. persons, in an attempt to violate, to evade, or to interest. The property and interests in wherever located, including by an avoid the bar on the provision of property of such an entity, therefore, are overseas branch of an entity located in contributions by, to, or for the benefit of such a person, or the receipt of blocked, and such an entity is a person the United States: whose property and interests in (1) On behalf of or for the benefit of contributions from any such person. property are blocked pursuant to a person whose property and interests § 576.410 Credit extended and cards § 576.201(a), regardless of whether the in property are blocked pursuant to issued by U.S. financial institutions. entity itself is listed in the Annex to § 576.201(a); or Executive Order 13315, as amended, or (2) With respect to property interests The prohibition in § 576.201 on designated pursuant to § 576.201(a)(2) subject to § 576.201. dealing in property subject to that (b) section prohibits U.S. financial or (3). institutions from performing under any Example: U.S. persons may not, except as existing credit agreements, including, Subpart E—Licenses, Authorizations, authorized by or pursuant to this part, but not limited to, charge cards, debit and Statements of Licensing Policy provide legal, accounting, financial, brokering, freight forwarding, transportation, cards, or other credit facilities issued by § 576.501 General and specific licensing public relations, or other services to a person a U.S. financial institution to a person procedures. whose property and interests in property are whose property and interests in For provisions relating to licensing blocked pursuant to § 576.201(a). property are blocked pursuant to procedures, see part 501, subpart E, of Note to § 576.406: See §§ 576.507 and § 576.201(a). this chapter. Licensing actions taken 576.509 on licensing policy with regard to § 576.411 Prohibited transactions pursuant to part 501 of this chapter with the provision of certain legal and medical involving certain Iraqi cultural property. respect to the prohibitions contained in services. (a) The prohibition on trade in or this part are considered actions taken pursuant to this part. § 576.407 Offshore transactions. transfer of ownership or possession of certain Iraqi cultural property in The prohibitions in § 576.201 on § 576.502 Effect of license or § 576.208 is separate from, and authorization. transactions or dealings involving independent of, other laws and blocked property apply to transactions (a) No license or other authorization regulations that may also prohibit the by any U.S. person in a location outside contained in this part, or otherwise same conduct. issued by the Office of Foreign Assets the United States with respect to (b) The mere compliance with certain property held in the name of a person Control, authorizes or validates any legal, administrative, or procedural transaction effected prior to the issuance whose property and interests in requirements, such as the filing of a U.S. property are blocked pursuant to of such license or other authorization, Customs and Border Protection Form unless specifically provided in such § 576.201, or property in which a person 3461 (Entry/Immediate Delivery) or U.S. whose property and interests in license or authorization. Customs and Border Protection Form (b) No regulation, ruling, instruction, property are blocked pursuant to 7501 (Entry Summary), does not render or license authorizes any transaction § 576.201 has or has had an interest the trade in or transfer of Iraqi cultural prohibited under this part unless the since the effective date. property otherwise consistent with U.S. regulation, ruling, instruction or license § 576.408 Payments from blocked law for purposes of § 576.208. The trade is issued by the Office of Foreign Assets accounts to satisfy obligations prohibited. in or transfer of Iraqi cultural property Control and specifically refers to this Pursuant to § 576.201, no debits may as described in § 576.208 would violate part. No regulation, ruling, instruction, be made to a blocked account to pay § 576.208 regardless of whether the U.S. or license referring to this part shall be obligations to U.S. persons or other Customs and Border Protection forms deemed to authorize any transaction persons, except as authorized by or were truthfully and accurately prohibited by any other part of this pursuant to this part. completed. chapter unless the regulation, ruling, Note to § 576.411: Other laws and instruction, or license specifically refers § 576.409 Charitable contributions. regulations potentially applicable to the to such part. Unless specifically authorized by the unlawful trade in or transfer of Iraqi cultural (c) Any regulation, ruling, instruction, Office of Foreign Assets Control property include, but are not limited to, the or license authorizing any transaction pursuant to this part, no charitable transportation of stolen goods, 18 U.S.C. otherwise prohibited under this part has contribution of funds, goods, services, 2314; the receipt of stolen goods, 18 U.S.C. the effect of removing a prohibition or technology, including contributions 2315; the importation of goods contrary to contained in this part from the to relieve human suffering, such as food, law, 18 U.S.C. 545 and 19 U.S.C. 1595a(a), transaction, but only to the extent (b), and (c); the exportation of goods contrary clothing or medicine, may be made by, to law, 19 U.S.C. 1595a(d); the importation of specifically stated by its terms. Unless to, or for the benefit of, or received from, stolen cultural property, 19 U.S.C. 2607; the the regulation, ruling, instruction, or a person whose property and interests importation of cultural property pertaining to license otherwise specifies, such an in property are blocked pursuant to the inventory of a museum or religious or authorization does not create any right, § 576.201(a). For the purposes of this secular public monument, 19 CFR 12.104a; duty, obligation, claim, or interest in, or

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with respect to, any property which § 576.506 Investment and reinvestment of pursuant to § 576.201(a), not otherwise would not otherwise exist under certain funds. authorized in this part, requires the ordinary principles of law. Subject to the requirements of issuance of a specific license. § 576.203, U.S. financial institutions are (c) Entry into a settlement agreement § 576.503 Exclusion from licenses. authorized to invest and reinvest assets or the enforcement of any lien, The Office of Foreign Assets Control blocked pursuant to § 576.201, subject judgment, arbitral award, decree, or reserves the right to exclude any person, to the following conditions: other order through execution, property, or transaction from the (a) The assets representing such garnishment, or other judicial process operation of any license or from the investments and reinvestments are purporting to transfer or otherwise alter privileges conferred by any license. The credited to a blocked account or or affect property or interests in Office of Foreign Assets Control also subaccount that is held in the same property blocked pursuant to reserves the right to restrict the name at the same U.S. financial § 576.201(a) is prohibited unless applicability of any license to particular institution, or within the possession or licensed pursuant to this part. persons, property, transactions, or control of a U.S. person, but funds shall classes thereof. Such actions are binding not be transferred outside the United § 576.508 Judicial process in legal proceedings involving ecological accidents. upon actual or constructive notice of the States for this purpose; exclusions or restrictions. (b) The proceeds of such investments The Office of Foreign Assets Control and reinvestments shall not be credited may issue specific licenses on a case-by- § 576.504 Payments and transfers to to a blocked account or subaccount case basis to authorize the attachment, blocked accounts in U.S. financial under any name or designation that judgment, decree, lien, execution, institutions. differs from the name or designation of garnishment, or other judicial process Any payment of funds or transfer of the specific blocked account or against property and interests in credit in which a person whose property subaccount in which such funds or property protected by § 576.206 to and interests in property are blocked securities were held; and satisfy liability for damages assessed in pursuant to § 576.201(a) has any interest (c) No immediate financial or connection with an ecological accident that comes within the possession or economic benefit accrues (e.g., through (including an oil spill) that occurred control of a U.S. financial institution pledging or other use) to a person whose after May 22, 2003. must be blocked in an account on the property and interests in property are books of that financial institution. A blocked pursuant to § 576.201(a). § 576.509 Authorization of emergency medical services. transfer of funds or credit by a U.S. § 576.507 Provision of certain legal The provision of nonscheduled financial institution between blocked services authorized. accounts in its branches or offices is emergency medical services in the authorized, provided that no transfer is (a) The provision of the following United States to persons whose property made from an account within the legal services to or on behalf of persons and interests in property are blocked United States to an account held outside whose property and interests in pursuant to § 576.201(a) is authorized, the United States, and further provided property are blocked pursuant to provided that all receipt of payment for that a transfer from a blocked account § 576.201(a) is authorized, provided that such services must be specifically may be made only to another blocked all receipts of payment of professional licensed. account held in the same name. fees and reimbursement of incurred expenses must be specifically licensed: § 576.510 Unblocking certain blocked Note to § 576.504: See § 501.603 of this (1) Provision of legal advice and property. chapter for mandatory reporting counseling on the requirements of and (a) Except for such property and requirements regarding financial transfers. compliance with the laws of the United See also § 576.203 concerning the obligation interests in property described in to hold blocked funds in interest-bearing States or any jurisdiction within the paragraph (b) of this section, all accounts. United States, provided that such advice transactions involving property and and counseling are not provided to interests in property blocked pursuant § 576.505 Entries in certain accounts for facilitate transactions in violation of this to § 576.201(b) of this part are normal service charges authorized. part; authorized. (2) Representation of persons named (b) The authorization in paragraph (a) (a) A U.S. financial institution is as defendants in or otherwise made of this section does not apply to blocked authorized to debit any blocked account parties to domestic U.S. legal, property and interests in property of held at that financial institution in arbitration, or administrative persons subject to sanctions pursuant to payment or reimbursement for normal proceedings; § 576.201(a) of this part or any other service charges owed it by the owner of (3) Initiation and conduct of domestic part of 31 CFR chapter V. that blocked account. U.S. legal, arbitration, or administrative (b) As used in this section, the term proceedings in defense of property § 576.511 Property controlled by the normal service charge shall include interests subject to U.S. jurisdiction; military forces of the United States and their charges in payment or reimbursement (4) Representation of persons before coalition partners in Iraq. for interest due; cable, telegraph, any federal or state agency with respect The prohibition in § 576.201(a)(3) that internet, or telephone charges; postage to the imposition, administration, or deals with blocked property and costs; custody fees; small adjustment enforcement of U.S. sanctions against interests in property shall not apply to charges to correct bookkeeping errors; such persons; and property and interests in property and, but not by way of limitation, (5) Provision of legal services in any controlled by the military forces of the minimum balance charges, notary and other context in which prevailing U.S. United States and their coalition protest fees, and charges for reference law requires access to legal counsel at partners present in Iraq and acting in books, photocopies, credit reports, public expense. their official capacity under the transcripts of statements, registered (b) The provision of any other legal command or operational control of the mail, insurance, stationery and supplies, services to persons whose property or commander of United States Central and other similar items. interests in property are blocked Command.

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Note to § 576.511: See § 576.207 of this prohibition may, upon conviction, be within the applicable 30-day period set part, which exempts property and interests in fined not more than $1,000,000, or if a forth in this paragraph. The failure to property that come under the control of the natural person, may be imprisoned for submit a response within the applicable military forces of the United States and their not more than 20 years, or both. time period set forth in this paragraph coalition partners present in Iraq and acting (b) Adjustments to penalty amounts. shall be deemed to be a waiver of the in their official capacity from the prohibitions in § 576.201(a)(1) and (2). (1) The civil penalties provided in right to respond. IEEPA are subject to adjustment (i) Computation of time for response. § 576.512 Transactions with certain pursuant to the Federal Civil Penalties A response to a Pre-Penalty Notice must blocked persons authorized. Inflation Adjustment Act of 1990 (Pub. be postmarked or date-stamped by the L. 101–410, as amended, 28 U.S.C. 2461 U.S. Postal Service (or foreign postal (a) All transactions with state bodies, note). service, if mailed abroad) or courier corporations, or agencies of the former (2) The criminal penalties provided in service provider (if transmitted to the Iraqi regime that are otherwise IEEPA are subject to adjustment Office of Foreign Assets Control by prohibited by § 576.201(a) are pursuant to 18 U.S.C. 3571. courier) on or before the 30th day after authorized. (c) Attention is also directed to 18 the postmark date on the envelope in (b) The authorization in paragraph (a) U.S.C. 1001, which provides that which the Pre-Penalty Notice was of this section does not apply to any whoever, in any matter within the mailed. If the Pre-Penalty Notice was transactions with state bodies, jurisdiction of the executive, legislative, personally delivered by a non-U.S. corporations, or agencies of the former or judicial branch of the Government of Postal Service agent authorized by the Iraqi regime listed in Appendix A to 31 the United States, knowingly and Office of Foreign Assets Control, a CFR chapter V. willfully falsifies, conceals, or covers up response must be postmarked or date- Subpart F—Reports by any trick, scheme, or device a stamped on or before the 30th day after material fact; makes any materially the date of delivery. § 576.601 Records and reports. false, fictitious, or fraudulent statement (ii) Extensions of time for response. If For provisions relating to required or representation; or makes or uses any a due date falls on a Federal holiday or records and reports, see part 501, false writing or document knowing the weekend, that due date is extended to subpart C, of this chapter. same to contain any materially false, include the following business day. Any Recordkeeping and reporting fictitious, or fraudulent statement or other extensions of time will be granted, requirements imposed by part 501 of entry shall be fined under title 18, at the discretion of the Office of Foreign this chapter with respect to the United States Code, imprisoned, or Assets Control, only upon specific prohibitions contained in this part are both. request to the Office of Foreign Assets considered requirements arising (d) Violations of this part may also be Control. pursuant to this part. subject to relevant provisions of other (3) Form and method of response. A applicable laws. response to a Pre-Penalty Notice need Subpart G—Penalties not be in any particular form, but it § 576.702 Pre-Penalty Notice; settlement. must be typewritten and signed by the § 576.701 Penalties. (a) When required. If the Office of alleged violator or a representative (a) Attention is directed to section 206 Foreign Assets Control has reason to thereof, must contain information of the International Emergency believe that there has occurred a sufficient to indicate that it is in Economic Powers Act (50 U.S.C. 1705) violation of any provision of this part or response to the Pre-Penalty Notice, and (‘‘IEEPA’’), which is applicable to a violation of the provisions of any must include the Office of Foreign violations of the provisions of any license, ruling, regulation, order, Assets Control identification number license, ruling, regulation, order, direction, or instruction issued by or listed on the Pre-Penalty Notice. A copy directive, or instruction issued by or pursuant to the direction or of the written response may be sent by pursuant to the direction or authorization of the Secretary of the facsimile, but the original also must be authorization of the Secretary of the Treasury pursuant to this part or sent to the Office of Foreign Assets Treasury pursuant to this part or otherwise under IEEPA and determines Control Civil Penalties Division by mail otherwise under IEEPA. that a civil monetary penalty is or courier and must be postmarked or (1) A civil penalty not to exceed the warranted, the Office of Foreign Assets date-stamped in accordance with amount set forth in section 206 of IEEPA Control will issue a Pre-Penalty Notice paragraph (b)(2) of this section. may be imposed on any person who informing the alleged violator of the (c) Settlement. Settlement discussion violates, attempts to violate, conspires agency’s intent to impose a monetary may be initiated by the Office of Foreign to violate, or causes a violation of any penalty. A Pre-Penalty Notice shall be in Assets Control, the alleged violator, or license, order, or regulation issued writing. The Pre-Penalty Notice may be the alleged violator’s authorized under IEEPA. issued whether or not another agency representative. For a description of Note to paragraph (a)(1) of § 576.701: As has taken any action with respect to the practices with respect to settlement, see of the date of publication in the Federal matter. For a description of the contents Appendix A to part 501 of this chapter. Register of the final rule adding this part to of a Pre-Penalty Notice, see Appendix A (d) Guidelines. Guidelines for the 31 CFR chapter V September 13, 2010, IEEPA to part 501 of this chapter. imposition or settlement of civil provides for a maximum civil penalty not to (b)(1) Right to respond. An alleged penalties by the Office of Foreign Assets exceed the greater of $250,000 or an amount violator has the right to respond to a Control are contained in Appendix A to that is twice the amount of the transaction Pre-Penalty Notice by making a written part 501 of this chapter. that is the basis of the violation with respect presentation to the Office of Foreign (e) Representation. A representative of to which the penalty is imposed. Assets Control. For a description of the the alleged violator may act on behalf of (2) A person who willfully commits, information that should be included in the alleged violator, but any oral willfully attempts to commit, or such a response, see Appendix A to part communication with the Office of willfully conspires to commit, or aids or 501 of this chapter. Foreign Assets Control prior to a written abets in the commission of a violation (2) Deadline for response. A response submission regarding the specific of any license, order, regulation, or to a Pre-Penalty Notice must be made allegations contained in the Pre-Penalty

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Notice must be preceded by a written Secretary of the Treasury has delegated DATES: This rule is effective September letter of representation, unless the Pre- the authority so to act. 13, 2010. Penalty Notice was served upon the (b) Unless otherwise delegated, the ADDRESSES: Documents indicated in this alleged violator in care of the authority provided in section 2 of preamble as being available in the representative. Executive Order 13315 to confiscate docket, are part of docket USCG–2010– property blocked pursuant to this part § 576.703 Penalty imposition. 0787 and are available by going to and transfer all vested right, title, and http://www.regulations.gov, inserting If, after considering any written interest in such property to the USCG–2010–0787 in the ‘‘keyword’’ box, response to the Pre-Penalty Notice and Development Fund for Iraq shall be and then clicking ‘‘search.’’ This any relevant facts, the Office of Foreign exercised only by the Secretary of the material is also available for inspection Assets Control determines that there Treasury, in consultation with the or copying at the Docket Management was a violation by the alleged violator Secretary of State. Facility (M–30), U.S. Department of named in the Pre-Penalty Notice and Transportation, West Building Ground that a civil monetary penalty is Subpart I—Paperwork Reduction Act Floor, Room W12–140, 1200 New Jersey appropriate, the Office of Foreign Assets Avenue, SE., Washington, DC 20590, Control may issue a Penalty Notice to § 576.901 Paperwork Reduction Act notice. between 9 a.m. and 5 p.m., Monday the violator containing a determination For approval by the Office of through Friday, except Federal holidays. of the violation and the imposition of Management and Budget (‘‘OMB’’) under the monetary penalty. For additional the Paperwork Reduction Act of 1995 FOR FURTHER INFORMATION CONTACT: If details concerning issuance of a Penalty (44 U.S.C. 3507) of information you have questions on this rule, call or Notice, see Appendix A to part 501 of collections relating to recordkeeping e-mail Ms. Judy Leung-Yee, Project this chapter. The issuance of the Penalty and reporting requirements, licensing Officer, First Coast Guard District Bridge Notice shall constitute final agency procedures (including those pursuant to Branch, 212–668–7165, action. The violator has the right to seek statements of licensing policy), and [email protected]. If you have judicial review of that final agency other procedures, see 501.901 of this questions on viewing the docket, call action in federal district court. chapter. An agency may not conduct or Renee V. Wright, Program Manager, sponsor, and a person is not required to Docket Operations, telephone 202–366– § 576.704 Administrative collection; respond to, a collection of information 9826. referral to United States Department of unless it displays a valid control SUPPLEMENTARY INFORMATION: Justice. number assigned by OMB. In the event that the violator does not Regulatory Information Dated: September 1, 2010. pay the penalty imposed pursuant to The Coast Guard is issuing this final this part or make payment arrangements Adam J. Szubin, rule without prior notice and acceptable to the Office of Foreign Director, Office of Foreign Assets Control, opportunity to comment pursuant to Assets Control, the matter may be Department of the Treasury. authority under section 4(a) of the referred for administrative collection Approved: September 2, 2010. Administrative Procedures Act (APA) measures by the Department of the Stuart A. Levey, (5 U.S.C. 553(b)). This provision Treasury or to the United States Under Secretary, Office of Terrorism and authorizes an agency to issue a rule Department of Justice for appropriate Financial Intelligence, Department of the without prior notice and opportunity to action to recover the penalty in a civil Treasury. comment when the agency for good suit in a federal district court. [FR Doc. 2010–22546 Filed 9–10–10; 8:45 am] cause finds that those procedures are BILLING CODE 4810–AL–P ‘‘impracticable, unnecessary, or contrary Subpart H—Procedures to the public interest.’’ Under 5 U.S.C. § 576.801 Procedures. 553(b)(B), the Coast Guard finds that For license application procedures DEPARTMENT OF HOMELAND good cause exists for not publishing a and procedures relating to amendments, SECURITY notice of proposed rulemaking (NPRM) modifications, or revocations of with respect to this rule because we are Coast Guard licenses; administrative decisions; removing the operation regulations for rulemaking; and requests for documents two moveable draw bridges that no 33 CFR Part 117 pursuant to the Freedom of Information longer have moveable spans. and Privacy Acts (5 U.S.C. 552 and [Docket No. USCG–2010–0787] Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for 552a), see part 501, subpart E, of this RIN 1625–AA09 chapter. making this rule effective in less than 30 days after publication in the Federal § 576.802 Delegation by the Secretary of Drawbridge Operation Regulation; Pequonnock River, Bridgeport, CT Register. The drawbridges listed under the Treasury. the regulations we are removing no (a) Except as provided in paragraph AGENCY: Coast Guard, DHS. longer have moveable spans; therefore, (b) of this section, any action that the ACTION: Final rule. the drawbridge operation regulations are Secretary of the Treasury is authorized no longer necessary. to take pursuant to Executive Order SUMMARY: The Coast Guard is removing 13303 of May 22, 2003, and any the drawbridge operation regulations Background and Purpose subsequent Executive orders relating to that govern the operation of two bridges, The drawbridge operation regulations the national emergency declared the Congress Street Bridge at mile 0.4, for the Congress Street Bridge at mile therein, including but not limited to and the Grand Street Bridge at mile 0.9, 0.4, and the Grand Street Bridge at mile Executive Order 13315 of August 28, across the Pequonnock River at 0.9, across the Pequonnock River at 2003, and Executive Order 13438 of July Bridgeport, Connecticut. This final rule Bridgeport, Connecticut, are listed at 33 17, 2007, may be taken by the Director removes the regulations for the two CFR 117.219(d) and 33 CFR 117.219(f). of the Office of Foreign Assets Control bridges because the draw spans of the The moveable span at the Congress or by any other person to whom the bridges have been removed. Street Bridge was removed due to

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