Friday, June 6, 2003

Part IV

Department of Commerce Bureau of Industry and Security

15 CFR Parts 744 and 772 Department of the Treasury Office of Foreign Assets Control

31 CFR Part 594 Imposition and Expansion of Controls on Designated Terrorists; Global Terrorism Sanctions Regulation; Final Rules

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DEPARTMENT OF COMMERCE Bureau of Industry and Security, bracketed initials [SDGT] and are also Department of Commerce, P.O. Box 273, known as Specially Designated Global Bureau of Industry and Security Washington, DC 20044, or to E-mail Terrorists (SDGTs). Provisions that address [email protected]. implement BIS controls on SDGTs are 15 CFR Parts 744 and 772 FOR FURTHER INFORMATION CONTACT: Joan included in new section 744.12 of the [Docket No. 020912210–2210–01] Roberts, Director, Foreign Policy EAR. Controls Division, Office of Strategic RIN 0694–AC60 Expansion of Reexport Controls on Trade and Foreign Policy Controls, SDTs and FTOs Bureau of Industry and Security, Imposition and Expansion of Controls Department of Commerce. Telephone: Specially Designated Terrorists on Designated Terrorists (202) 482–0171, E-mail (SDTs) are designated in or pursuant to AGENCY: Bureau of Industry and [email protected]. Executive Order 12947 issued on Security, Commerce. January 23, 1995 (Prohibiting SUPPLEMENTARY INFORMATION: Transactions with Terrorists Who ACTION: Interim final rule with request Background Threaten to Disrupt the Middle East for comments. Peace Process), as amended by Imposition of Controls on Specially Executive Order 13099 of August 20, SUMMARY: This rule amends the Export Designated Global Terrorists (SDGTs) Administration Regulations (EAR) by 1998. Foreign Terrorist Organizations imposing a license requirement on the President Bush issued Executive (FTOs) are designated pursuant to the export and reexport of any item subject Order 13224 (E.O. 13224) (Blocking 1996 Anti-Terrorism and Effective Death to the EAR by a U.S. person or non-U.S. Property and Prohibiting Transactions Penalty Act (Pub. L. 104–132). SDTs and person to persons designated in or with Persons Who Commit, Threaten to FTOs are included on the Blocked pursuant to Executive Order 13224 of Commit, or Support Terrorism) on Persons list maintained by OFAC in September 23, 2001. In response to September 23, 2001, in response to Appendix A to 31 CFR chapter V and grave acts of terrorism and threats of grave acts of terrorism and threats of identified by the bracketed initials terrorism, Executive Order 13224 blocks terrorism. On September 28, 2001, the [SDT] and [FTO], respectively. the property and interests in property of United Nations Security Council On January 8, 1999, BIS issued a rule persons listed in an Annex to the order (UNSC) adopted Resolution 1373, imposing foreign policy controls on and persons designated by the Secretary requiring all member states, among exports and certain reexports of items of State or the Secretary of the Treasury other things, to refrain from providing subject to the EAR to individuals and any form of support to persons involved pursuant to criteria set forth in the groups designated as SDTs and groups in terrorist acts and to prohibit their order. Executive Order 13224 also designated as FTOs. The January 1999 nationals from making economic prohibits U.S. persons from engaging in rule imposed a license requirement on resources available to persons who any transactions with such blocked the following exports and reexports to a commit, attempt to commit, facilitate or persons. The Department of the designated SDT or FTO: participate in the commission of Treasury’s Office of Foreign Assets (1) The export from the United States terrorist acts. In addition, on January 28, Control (OFAC) announces the names of of any item subject to the EAR; 2002, the UNSC adopted Resolution (2) The export or reexport by a U.S. persons designated pursuant to 1390, which requires all member states person, wherever located, of any item Executive Order 13224 in the Federal to freeze funds and other financial subject to the EAR; and Register and includes such persons in a assets or economic resources of Usama (3) The export from abroad or reexport listing of persons subject to various bin Laden, members of the Al-Qaida by a non-U.S. person of any item subject sanctions programs administered by organization and the Taliban and other to the EAR on the Commerce Control OFAC. The Department of State also individuals, groups, undertakings and List. announces the names of foreign persons entities associated with them, as The January 1999 rule did not impose designated pursuant to Executive Order referred to in the list created pursuant a license requirement on the export 13224 in the Federal Register. All to UNSC Resolutions 1267 (October 15, from abroad or reexport by a non-U.S. persons designated in or pursuant to 1999) and 1333 (December 19, 2000). person of EAR99 items. The action BIS Executive Order 13224 are identified by UNSC Resolution 1455 (January 17, is now taking, effective June 6, 2003, the bracketed initials [SDGT] in the 2003) continued and improved the expands current controls by requiring a Department of Treasury listing and are measures provided in UNSC Resolution license for the export from abroad or also known as Specially Designated 1390. The Bureau of Industry and reexport to a designated SDT or FTO by Global Terrorists (SDGTs). This rule also Security (BIS) is taking action consistent a non-U.S. person of any item subject to amends the EAR by expanding reexport with E.O. 13224 and UNSC Resolutions the EAR, whether such item is on the controls on Specially Designated 1267, 1390, 1452 (December 20, 2002), Commerce Control List or is classified Terrorists (SDTs) and Foreign Terrorist and 1455, as well as 1373, by imposing as EAR99. Provisions that expand BIS Organizations (FTOs). OFAC also a license requirement on all exports and controls on SDTs and FTOs are found in includes SDTs and FTOs in the reexports to persons designated in or revised sections 744.13 and 744.14 of Department of Treasury listing and pursuant to E.O. 13224. Persons the EAR, respectively. identifies them by the bracketed initials designated pursuant to criteria set forth Note that certain persons designated [SDT] and [FTO], respectively. in E.O. 13224 by the Secretary of State in or pursuant to E.O. 13224 also have DATES: This rule is effective June 6, or the Secretary of the Treasury are been designated as SDTs or FTOs or 2003. announced in the Federal Register and both, and are appropriately identified by Comment Dates: Comments on this listed in Appendix A to 31 CFR chapter more than one of the bracketed rule must be received on or before July V, which lists persons subject to various acronyms in Appendix A to 31 CFR 21, 2003. sanctions programs administered by chapter V. As such, section 744.1 is also ADDRESSES: Written comments on this OFAC (‘‘Blocked Persons list’’). Persons revised to add a new subsection (a)(2), rule should be sent to Sheila designated in or pursuant to E.O. 13224 which provides that when controls set Quarterman, Regulatory Policy Division, are identified in Appendix A by the forth under more than one section of

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part 744 apply to a person, the license rule on designated terrorist entities and The period for submission of requirements for such a person will be individuals was submitted to the comments will close July 21, 2003. The determined based on the requirements Congress on March 18, 2003. Department will consider all comments of all applicable sections, and license received before the close of the Rulemaking Requirements applications will be reviewed under all comment period in developing final applicable licensing policies. For 1. This interim rule has been regulations. Comments received after example, if an entity on the Entity List determined not to be significant for the end of the comment period will be in Supplement No. 4 to part 744 is also purposes of E.O. 12866. considered if possible, but their designated in or pursuant to E.O. 13224, 2. Notwithstanding any other consideration cannot be assured. The the provisions set forth in Supplement provision of law, no person is required Department will not accept public No. 4 to part 744 as well as the to, nor shall any person be subject to a comments accompanied by a request provisions set forth in section 744.12 penalty for failure to comply with a that a part or all of the material be will apply, and the denial policy for the collection of information, subject to the treated confidentially because of its export or reexport of all items subject to Paperwork Reduction Act (PRA), unless business proprietary nature or for any the EAR will be the operative policy. that collection of information displays a other reason. The Department will Also note that paragraph 744.1(a) is currently valid Office of Management return such comments and materials to updated to reflect the controls in and Budget (OMB) Control Number. the persons submitting the comments sections 744.9–744.16. This rule involves a collection of and will not consider them in the information approved by the OMB Allocation of Agency Licensing development of final regulations. All under control number 0694–0088, public comments on these regulations Responsibility To Avoid Dual Licensing ‘‘Multi-Purpose Application,’’ which Requirements will be a matter of public record and carries a burden hour estimate of 40 will be available for public inspection minutes per electronic submission and Exports by U.S. Persons and copying. In the interest of accuracy 45 minutes for a manual submission. and completeness, the Department OFAC requires a license for all Send comments regarding this burden exports from the United States and all requires comments in written form. estimate or any other aspect of these Oral comments must be followed by exports and reexports by a U.S. person collections of information, including to any SDT or SDGT. To avoid written memoranda, which will also be suggestions for reducing the burden, to duplication, if OFAC authorizes a a matter of public record and will be OMB Desk Officer, New Executive transaction involving an export from the available for public review and copying. Office Building, Washington, DC 20503; United States or an export or reexport Communications from agencies of the and to the Regulatory Policy Division, by a U.S. person of an item subject to United States Government or foreign Bureau of Industry and Security, the EAR to a designated SDT or SDGT, governments will not be available for Department of Commerce, P.O. Box 273, no separate authorization from BIS is public inspection. Washington, DC 20044. The Office of Administration, Bureau necessary, even if the SDT or SDGT is 3. This rule does not contain policies also an FTO. However, authorization of Industry and Security, U.S. with federalism implications as this from BIS is required for an export from Department of Commerce, displays term is defined under Executive Order the United States or an export from these public comments on BIS’s 13132. Freedom of Information Act (FOIA) Web abroad or reexport of an item subject to 4. The provisions of the site at http://www.bis.doc.gov/foia. This the EAR by a U.S. person to an FTO that Administrative Procedure Act (5 U.S.C. office does not maintain a separate is not also an SDT or SDGT. 553) requiring notice of proposed public inspection facility. If you have rulemaking, the opportunity for public Exports From Abroad and Reexports by technical difficulties accessing this Web participation, and a delay in effective Non-U.S. Persons site, please call BIS’s Office of date, are inapplicable because this Authorization from BIS is required for Administration, at (202) 482–0637, for regulation involves a military and exports from abroad and reexports by assistance. non-U.S. persons of items subject to the foreign affairs function of the United EAR to SDGTs, SDTs, or FTOs. States (see 5 U.S.C. 553(a)(1)). Further, List of Subjects no other law requires that a notice of 15 CFR Part 744 Licensing Policy proposed rulemaking and an License applications for exports or opportunity for public comment be Exports, Foreign trade, Reporting and reexports to SDGTs, SDTs, or FTOs are given for this interim rule. Because a recordkeeping requirements. subject to a policy of denial. notice of proposed rulemaking and an 15 CFR Part 772 OFAC announces in the Federal opportunity for public comment are not Register and incorporates into the required to be given for this rule under Exports, Foreign trade. Blocked Persons list on an on-going title 5 U.S.C. 553 or by any other law, ■ Accordingly, parts 744 and 772 of the basis the frequent changes or additions the analytical requirements of the Export Administrations Regulations (15 to the three lists of persons subject to Regulatory Flexibility Act (5 U.S.C. 601 CFR parts 730–799) are amended as sanctions who are identified by the et seq.) are not applicable. follows: bracketed initials [SDGT], [SDT] or However, because of the importance [FTO] in Appendix A to 31 CFR chapter of the issues raised by these regulations, PART 744—[AMENDED] V. To obtain additional information this rule is being issued in interim form ■ 1. The authority citation for part 744 regarding the Blocked Persons list and BIS will consider comments in the continues to read as follows: maintained by OFAC, contact OFAC at development of the final regulations. telephone number 202/622–2520. Accordingly, the Department of Authority: 50 U.S.C. app. 2401 et seq.; 50 Commerce (the Department) encourages U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; Additional information also may be 42 U.S.C. 2139a; Sec. 901–911, Pub. L. 106– found at OFAC’s Web site at interested persons who wish to 387; Sec. 221, Pub. L. 107–56; E.O. 12058, 43 www.treas.gov/ofac. comment to do so at the earliest possible FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. A foreign policy report on the new time to permit the fullest consideration 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. and expanded controls imposed by this of their views. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994

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Comp., p. 950; E.O. 12947, 60 FR 5079, 3 the EAR prohibits exports, reexports (3) U.S. persons must seek CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR and certain in-country transfers of items authorization from BIS for the export or 58767, 3 CFR, 1996 Comp., p. 228; E.O. subject to the EAR to denied parties. reexport to an SDGT of any item subject 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. (2) If controls set forth under more to the EAR that is not subject to OFAC’s 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 than one section of part 744 apply to a Comp., p. 783; E.O. 13224, 66 FR 49079, 3 Global Terrorism Sanctions Regulations CFR, 2001 Comp., p. 786; notice of November person, the license requirements for in 31 CFR part 594. 9, 2001, 66 FR 56965, 3 CFR, 2001 Comp., such a person will be determined based (4) Non-U.S. persons must seek p. 917; notice of August 14, 2002, 67 FR on the requirements of all applicable authorization from BIS for any export 53721, August 16, 2002. sections of part 744, and license from abroad or reexport to an SDGT of applications will be reviewed under all ■ any item subject to the EAR. 2. Section 744.1 is amended by applicable licensing policies. (5) Any export or reexport to an SDGT revising paragraph (a) to read as follows: * * * * * of any item subject to both the EAR and § 744.1 General Provisions. ■ 3. Section 744.12 is added to read as OFAC’s regulatory authority pursuant to (a)(1) Introduction. In this part, follows: Executive Order 13224 and not references to the EAR are references to authorized by OFAC is a violation of the § 744.12 Restrictions on exports and EAR. 15 CFR chapter VII, subchapter C. This reexports to persons designated in or part contains prohibitions against (6) Any export or reexport by a U.S. pursuant to Executive Order 13224 person to an SDGT of any item subject exports, reexports, and selected (Specially Designated Global Terrorist) transfers to certain end-users and end- (SDGT). to the EAR that is not subject to regulation by OFAC and not authorized uses as introduced under General BIS maintains restrictions on exports Prohibition Five (End-use/End-users) by BIS is a violation of the EAR. Any and reexports to persons designated in export from abroad or reexport by a non- and Nine (Orders, Terms, and or pursuant to Executive Order 13224 of U.S. person to an SDGT of any item Conditions), unless authorized by BIS. September 23, 2001 (Blocking Property subject to the EAR and not authorized Sections 744.2, 744.3, 744.4 and 744.5 and Prohibiting Transactions with by BIS is a violation of the EAR. prohibit exports and reexports of items Persons Who Commit, Threaten to subject to the EAR to defined nuclear, (7) These licensing requirements Commit, or Support Terrorism). These supplement any other requirements set missile, chemical and biological persons include individuals and entities activities and nuclear maritime end- forth elsewhere in the EAR. listed in the Annex to Executive Order (b) Exceptions. No License Exceptions uses. Section 744.6 prohibits certain 13224, as well as persons subsequently or other BIS authorization are available activities by U.S. persons in support of designated by the Secretary of State or for any export or reexport to an SDGT certain nuclear, missile, chemical, or Secretary of the Treasury pursuant to of any item subject to the EAR. biological end-uses regardless of criteria set forth in the Order. Pursuant (c) Licensing policy. Applications for whether that support involves the to Executive Order 13224, the licenses for the export or reexport to an export or reexport of items subject to the Department of the Treasury’s Office of SDGT of any item subject to the EAR EAR. Sections 744.7 and 744.8 prohibit Foreign Assets Control (OFAC) generally will be denied. You should exports and reexports of certain items maintains 31 CFR part 594, the Global consult with OFAC concerning for certain aircraft and vessels. Section Terrorism Sanctions Regulations. OFAC transactions subject to OFAC licensing 744.9 prohibits U.S. persons from announces the names of persons requirements. providing technical assistance to certain designated pursuant to Executive Order (d) Contract sanctity. Contract foreign persons seeking to develop or 13224 in the Federal Register and sanctity provisions are not available for manufacture certain encryption includes such persons in Appendix A to license applications reviewed under this commodities or software. Section 744.10 31 CFR Chapter V, which lists persons section. prohibits exports and reexports of any subject to various sanctions programs item subject to the EAR to Russian administered by OFAC. The Department Note to § 744.12: This section does not entities, included in Supplement No. 4 implement, construe, or limit the scope of of State also announces the names of any criminal statute, including (but not of this part. Sections 744.12, 744.13 and foreign persons designated pursuant to limited to) 18 U.S.C. 2339B(a)(1) and 2339A, 744.14 prohibit exports and reexports of Executive Order 13224 in the Federal and does not excuse any person from any item subject to the EAR to persons Register. All persons designated in or complying with any criminal statute, designated as Specially Designated pursuant to Executive Order 13224 are including (but not limited to) 18 U.S.C. Global Terrorists, Specially Designated identified in Appendix A to 31 CFR 2339B(a)(1) and 18 U.S.C. 2339A. Terrorists, or Foreign Terrorist Chapter V by the bracketed initials ■ Organizations, respectively. Section 4. Section 744.13 is revised to read as [SDGT] and are also known as Specially follows: 744.15 describes restrictions on exports Designated Global Terrorists (SDGTs). and reexports to persons named in (a) License requirement(s). (1) A § 744.13 Restrictions on exports and general orders. Section 744.16 prohibits license requirement applies to the reexports to persons designated pursuant exports and reexports by U.S. persons of export or reexport to an SDGT of any to Executive Order 12947 (Specially items subject to the EAR to persons item subject to the EAR. Designated Terrorist) (SDT). designated pursuant to Executive Order (2) To avoid duplication, U.S. persons Consistent with the purpose of 13088, as amended by Executive Order are not required to seek separate Executive Order 12947 of January 23, 13192, including Slobodan Milosevic, authorization for an export or reexport 1995, BIS maintains restrictions on his close associates, and persons to an SDGT of an item subject to both exports and reexports to Specially determined to be under open indictment the EAR and OFAC’s regulatory Designated Terrorists (SDTs). Executive by the International Criminal Tribunal authority pursuant to Executive Order Order 12947 prohibits transactions by for the former Yugoslavia. In addition, 13224. Therefore, if OFAC authorizes an U.S. persons with terrorists who these sections include license review export from the United States or an threaten to disrupt the Middle East standards for export license applications export or reexport by a U.S. person to peace process. Pursuant to the Executive submitted as required by these sections. an SDGT, no separate authorization Order, the Department of the Treasury, It should also be noted that part 764 of from BIS is necessary. Office of Foreign Assets Control

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(OFAC), maintains 31 CFR part 595, the any criminal statute, including (but not (b) Exceptions. No License Exceptions Terrorism Sanctions Regulations. In limited to) 18 U.S.C. 2339B(a)(1) and 2339A, or other BIS authorization for items Appendix A to 31 CFR Chapter V, and does not excuse any person from described by paragraph (a) of this pursuant to 31 CFR part 595, these complying with any criminal statute, section are available for exports or Specially Designated Terrorists are including (but not limited to) 18 U.S.C. 2339B(a)(1) and 18 U.S.C. 2339A. reexports to FTOs. identified by the bracketed suffix (c) Licensing policy. Applications for ■ initials [SDT]. The requirements set 5. Section 744.14 is revised to read as exports and reexports to FTOs of all forth below further the objectives of follows: items identified by paragraph (a) of this Executive Order 12947. section will generally be denied, to the (a) License requirement(s). (1) A § 744.14 Restrictions on exports and extent they constitute material support license requirement applies to the reexports to designated Foreign Terrorist Organizations (FTOs). or resources, as defined in 18 U.S.C. export or reexport to an SDT of any item 2339A(b). subject to the EAR. Consistent with the objectives of (2) To avoid duplication, U.S. persons section 219 of the Immigration and (d) Contract sanctity. Contract are not required to seek separate Nationality Act, as amended (INA) (8 sanctity provisions are not available for authorization for an export or reexport U.S.C. 1189), and section 303 of the license applications reviewed under this to an SDT of an item subject both to the Antiterrorism and Effective Death section. EAR and to OFAC’s Terrorism Sanctions Penalty Act 1996, as amended (Anti- (e) FTOs also designated as SDTs or Regulations in 31 CFR part 595. Terrorism Act) (18 U.S.C. 2339B) SDGTs. In cases in which an FTO is also Therefore, if OFAC authorizes an export (Public Law 104–132. 110 Stat. 1214– an SDT, as described in § 744.13, or an or reexport of an item by a U.S. person 1319), BIS maintains restrictions on SDGT, as described in § 744.12, the to a SDT, no separate authorization from exports and reexports to organizations license requirements and licensing BIS is necessary. designated as Foreign Terrorist policy set forth in § 744.13 or § 744.12 (3) U.S. persons must seek Organizations (FTOs) pursuant to will apply. authorization from BIS for the export or section 219 of the INA. The Department reexport to an SDT of an item subject to of the Treasury, Office of Foreign Assets Note to § 744.14: This section does not the EAR but not subject to OFAC’s Control, maintains 31 CFR part 597, the implement, construe, or limit the scope of Foreign Terrorist Organizations any criminal statute, including (but not Terrorism Sanctions Regulations in 31 limited to) 18 U.S.C. 2339B(a)(1) and 2339A, CFR part 595. Sanctions Regulations, requiring U.S. and does not excuse any person from (4) Non-U.S. persons must seek financial institutions to block all complying with any criminal statute, authorization from BIS for the export financial transactions involving assets of including (but not limited to) 18 U.S.C. from abroad or reexport to an SDT of designated FTOs within the possession 2339B(a)(1) and 18 U.S.C. 2339A. any item subject to the EAR. or control of such U.S. financial (5) Any export or reexport to an SDT institutions. Section 303 of the Anti- PART 772—[AMENDED] by a U.S. person of any item subject Terrorism Act prohibits persons within both to the EAR and OFAC’s Terrorism the United States or subject to U.S. ■ 6. The authority citation for part 772 Sanctions Regulations in 31 CFR part jurisdiction from knowingly providing continues to read as follows: 595 and not authorized by OFAC is a material support or resources to a violation of the EAR. designated FTO and makes violations Authority: 50 U.S.C. app. 2401 et seq.; 50 (6) Any export or reexport by a U.S. punishable by criminal penalties under U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, person to an SDT of any item subject to 3 CFR, 2001 Comp., p. 783; notice of August title 18, United States Code. These 14, 2002, 67 FR 53721, August 16, 2002. the EAR that is not subject to OFAC’s designated FTOs are listed in Appendix Terrorism Sanctions Regulations in 31 A to 31 CFR Chapter V and identified ■ 7. Section 772.1 is amended by CFR part 595 and not authorized by BIS by the bracketed initials [FTO]. A revising the definition of ‘‘U.S. Person’’ is a violation of the EAR. Any export designation of a foreign organization to read as follows: from abroad or reexport by a non-U.S. determined to meet the criteria of person to an SDT of any item subject to section 219 of the INA takes effect upon § 772.1 Definitions of terms as used in the the EAR and not authorized by BIS is a publication in the Federal Register by Export Administration Regulations. violation of the EAR. the Secretary of State, or the Secretary’s * * * * * (7) These licensing requirements designee. U.S. Person. (a) For purposes of supplement any other requirements set (a) License requirement(s). (1) A §§ 744.6, 744.10, 744.11, 744.12, 744.13 forth elsewhere in the EAR. license requirement applies to the (b) Exceptions. No License Exceptions and 744.14 of the EAR, the term U.S. export or reexport to an FTO of any item person includes: or other BIS authorization are available subject to the EAR. for export or reexport to an SDT of any (2) U.S. persons must seek (1) Any individual who is a citizen of item subject to the EAR. authorization from BIS for the export or the United States, a permanent resident (c) Licensing policy. Applications for reexport to an FTO of any item subject alien of the United States, or a protected licenses for the export or reexport to an to the EAR. individual as defined by 8 U.S.C. SDT of any item subject to the EAR (3) Non-U.S. persons must seek 1324b(a)(3); generally will be denied. You should authorization from BIS for the export (2) Any juridical person organized consult with OFAC concerning from abroad or reexport to an FTO of under the laws of the United States or transactions subject to OFAC licensing any item subject to the EAR. any jurisdiction within the United requirements. (4) Any export or reexport to an FTO States, including foreign branches; and (d) Contract sanctity. Contract by any person of any item subject to the (3) Any person in the United States. sanctity provisions are not available for EAR and not authorized by BIS is a license applications reviewed under this violation of the EAR. (b) See also § 740.9 and parts 746 and section. (5) These licensing requirements 760 of the EAR for definitions of ‘‘U.S. Note to § 744.13: This section does not supplement any other requirements set person’’ that are specific to those parts. implement, construe, or limit the scope of forth elsewhere in the EAR. * * * * *

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Dated: May 28, 2003. home page: http://www.treas.gov/ofac, prohibition, set forth at 18 U.S.C. 2339B, James J. Jochum, or in fax form through the Office’s 24- against providing material support or Assistant Secretary for Export hour fax-on-demand service: call 202/ resources to foreign terrorist Administration. 622–0077 using a fax machine, fax organizations designated pursuant to [FR Doc. 03–14253 Filed 6–3–03; 8:50 am] modem, or (within the United States) a section 219 of the Immigration and BILLING CODE 3510–33–P touch-tone telephone. Nationality Act, as amended. Background Specifically, these regulations are promulgated in furtherance of the DEPARTMENT OF THE TREASURY On September 23, 2001, the President, sanctions set forth in Executive Order invoking the authority, inter alia, of the 13224. Section 1 of the order blocks, Office of Foreign Assets Control International Emergency Economic with certain exceptions, all property Powers Act (50 U.S.C. 1701–1706) and interests in property of foreign 31 CFR Part 594 (‘‘IEEPA’’) and the United Nations persons listed in an Annex to the order Participation Act (22 U.S.C. 287c), and persons designated by the Secretary Global Terrorism Sanctions issued Executive Order 13224 (66 FR Regulations of State or the Secretary of the Treasury 49079, September 25, 2001), effective at pursuant to criteria set forth in the AGENCY: Office of Foreign Assets 12:01 a.m. eastern daylight time on order. Section 2 of the order prohibits Control, Treasury. September 24, 2001. In the order, the any transaction or dealing by a United President found that ‘‘grave acts of ACTION: Interim final rule. States person or within the United terrorism and threats of terrorism States in property or interests in SUMMARY: The Office of Foreign Assets committed by foreign terrorists, property blocked pursuant to the order, Control of the U.S. Department of the including the terrorist attacks in New including but not limited to the making York, Pennsylvania, and the Pentagon Treasury is adding new part 594 to or receiving of any contribution of committed on September 11, 2001 chapter V of 31 CFR to carry out the funds, goods, or services to or for the * * * and the continuing and purposes of Executive Order 13224 of benefit of a person designated in or immediate threat of further attacks on September 23, 2001, ‘‘Blocking Property pursuant to the order. Section 2 of the United States nationals or the United and Prohibiting Transactions with order also prohibits any transaction by States’’ constituted an unusual and Persons Who Commit, Threaten to a United States person or within the extraordinary threat to the national Commit, or Support Terrorism.’’ United States that evades or avoids, or security, foreign policy and economy of DATES: Effective Date: June 6, 2003. has the purpose of evading or avoiding, the United States, and declared a Comments: Written comments must or attempts to violate, any of the national emergency with respect to that be received no later than August 5, prohibitions set forth in the order, as 2003. threat. The order was amended by Executive Order 13268 (67 FR 44751, well as any conspiracy formed to violate ADDRESSES: Comments may be sent July 3, 2001) and Executive Order 13284 such prohibitions. Section 7 of the order either via regular mail to the attention (68 FR 4075, January 28, 2003). authorizes the Secretary of the Treasury, of Chief, Policy Planning and Program These regulations are promulgated to in consultation with the Secretary of Management Division, rm. 2176, Office implement Executive Order 13224. They State, the Secretary of Homeland of Foreign Assets Control, Department are in addition to and do not take the Security and the Attorney General, to of the Treasury, 1500 Pennsylvania place of other parts of 31 CFR chapter take such actions, including the Ave., NW., Annex—2d Floor, V relating to terrorism, including, but promulgation of rules and regulations, Washington, DC 20220, or via OFAC’s not limited to, the Terrorism Sanctions as may be necessary to carry out the Web site (http://www.treas.gov/ofac). Regulations (part 595), implementing purposes of the order. Acting under FOR FURTHER INFORMATION CONTACT: Executive Order 12947, ‘‘Prohibiting authority delegated by the Secretary of Chief of Licensing, tel.: 202/622–2480, Transactions With Terrorists Who the Treasury, the Department of the or Chief Counsel, tel.: 202/622–2410, Threaten To Disrupt the Middle East Treasury’s Office of Foreign Assets Office of Foreign Assets Control, Peace Process’’ (60 FR 5079, January 25, Control (‘‘OFAC’’) is promulgating these Department of the Treasury, 1995); the Terrorism List Government Global Terrorism Sanctions Regulations, Washington, DC 20220. Sanctions Regulations (part 596), 31 CFR part 594 (the ‘‘Regulations’’). SUPPLEMENTARY INFORMATION: implementing section 321 of the Subpart B of the Regulations sets forth Antiterrorism and Effective Death the prohibitions contained in sections 1 Electronic Availability Penalty Act of 1996 (18 U.S.C. 2332d); and 2 of the order. See §§ 594.201, This document is available as an and the Foreign Terrorist Organizations 594.204, and 594.205. Persons identified electronic file on The Federal Bulletin Sanctions Regulations (part 597), in the Annex to the order or designated Board the day of publication in the implementing sections 302 and 303 of by or under the authority of the Federal Register. By modem, dial 202/ the Antiterrorism and Effective Death Secretary of State or the Secretary of the 512–1387 and type ‘‘/GO FAC,’’ or call Penalty Act of 1996 (8 U.S.C. 1189, 18 Treasury pursuant to the order are 202/512–1530 for disk or paper copies. U.S.C. 2339B). (Detailed information referred to throughout the Regulations This file is available for downloading regarding each of those other parts is as ‘‘persons whose property or interests without charge in ASCII and Adobe available on OFAC’s Web site (http:// in property are blocked pursuant to Acrobat7 readable (*.PDF) formats. For www.treas.gov/ofac).) Certain persons § 594.201(a).’’ Their names are or will be Internet access, the address for use with designated pursuant to the regulations published on OFAC’s website, the World Wide Web (home page), now being promulgated may also be announced in the Federal Register and Telnet, or FTP protocol is: designated pursuant to those other incorporated on an ongoing basis into fedbbs.access.gpo.gov. This document parts, and transactions related to those appendix A to 31 CFR chapter V, which and additional information concerning persons are subject to the requirements lists persons subject to various sanctions the programs of the Office of Foreign of those parts and other sanctions under programs administered by OFAC. Assets Control are available for U.S. law. These new regulations also do Sections 594.202 and 594.203 of downloading from the Office’s Internet not in any way modify the criminal subpart B detail the effect of transfers of

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