[Federal Register Volume 61, Number 139 (Thursday, July 18, 1996)]
[Rules and Regulations]
[Pages 37385-37386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18255]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 515
Cuban Assets Control Regulations; Indirect Financing in Cuba,
Civil Penalties.
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule; amendments.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Cuban Assets Control Regulations to bring
them into conformity with the Cuban Liberty and Democratic Solidarity
(LIBERTAD) Act of 1996. This rule adds a new prohibition on bank
financing, and makes other changes to the regulations governing civil
penalties consistent with amendments to the Trading with the Enemy Act
contained in the Libertad Act.
EFFECTIVE DATE: March 12, 1996, except for the amendment to
Sec. 515.701 which is effective July 18, 1996.
FOR FURTHER INFORMATION CONTACT: Steven I. Pinter, Chief of Licensing
(tel.: 202/622-2480); Betsy Sue Scott, Senior Program Manager, Civil
Penalties Program (tel.: 202/622-6140); or William B. Hoffman, Chief
Counsel (tel.: 202/622-2410), Office of Foreign Assets Control,
Department of the Treasury, Washington, DC 20220.
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document is available as an electronic file on The Federal
Bulletin Board the day of publication in the Federal Register. By
modem, dial 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for
disk or paper copies. This file is available for downloading without
charge in WordPerfect 5.1, ASCII, and Adobe AcrobatTM readable
(*.PDF) formats. For Internet access, the address for use with the
World Wide Web (Home Page), Telnet, or FTP protocol is:
fedbbs.access.gpo.gov. The document is also accessible for downloading
in ASCII format without charge from Treasury's Electronic Library
(``TEL'') in the ``Business, Trade and Labor Mall'' of the FedWorld
bulletin board. By modem, dial 703/321-3339, and select the appropriate
self-expanding file in TEL. For Internet access, use one of the
following protocols: Telnet = fedworld.gov (192.239.93.3); World Wide
Web (Home Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov
(192.239.92.205). Additional information concerning the programs of the
Office of Foreign Assets Control is available for downloading from the
Office's Internet Home Page: http://www.ustreas.gov/treasury/services/
fac/fac.html, or in fax form through the Office's 24-hour fax-on-demand
service: call 202/622-0077 using a fax machine, fax modem, or touch
tone telephone.
Background
The enactment on March 12, 1996, of the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1996, sections 1-401, Pub. L.
104-114, 110 Stat.785 (the ``Libertad Act'') requires amendment of the
Cuban Assets Control Regulations, 31 CFR part 515 (the
``Regulations''), to effect certain changes in the enforcement of the
Cuban embargo contained in the Libertad Act.
Section 515.208 is added to the Regulations to include a specific
prohibition on knowingly making a loan, extending credit or other
financing by a United States national, permanent resident alien, or a
United States agency for the purpose of financing transactions
involving confiscated property, the claim to which is owned by a United
States national. (All transactions with respect to property or
interests in property of the Cuban Government or Cuban nationals are
prohibited pursuant to Sec. 515.201 of the Regulations.) Sections
515.334, .335, .336, and .337 are added to the Regulations to
incorporate definitions for ``United States national,''
``confiscated,'' ``property,'' and ``permanent resident alien'' as used
in the Libertad Act's prohibition on financing, contained in
Sec. 515.208. Section 515.701 is amended to state that violations of
the prohibition on financing are subject to the civil penalties
described in that section.
Section 515.701 is further amended to describe the civil penalty
authority contained in section 16 of the Trading with the Enemy Act, 50
U.S.C. App. 1-44, as amended by the Libertad Act. Certain restrictions
on the use of civil penalty authority were eliminated by the Act and
references to those restrictions are removed.
Because the Regulations involve a foreign affairs function,
Executive Order 12866 and the provisions of the Administrative
Procedure Act, 5 U.S.C. 553, requiring notice of proposed rulemaking,
opportunity for public participation, and delay in effective date, are
inapplicable. Because no
[[Page 37386]]
notice of proposed rulemaking is required for this rule, the Regulatory
Flexibility Act, 5 U.S.C. 601-612, does not apply.
List of Subjects in 31 CFR Part 515
Administrative practice and procedure, Air carriers, Banks,
banking, Cuba, Currency, Estates, Exports, Fines and penalties, Foreign
investment in the United States, Foreign trade, Imports, Informational
materials, Publications, Reporting and recordkeeping requirements,
Securities, Shipping, Specially designated nationals, Travel
restrictions, Trusts and trustees, Vessels.
For the reasons set forth in the preamble, 31 CFR part 515 is
amended as set forth below:
PART 515--CUBAN ASSETS CONTROL REGULATIONS
1. The authority citation for part 515 is revised to read as
follows:
Authority: 50 U.S.C. App. 144; 22 U.S.C. 6001-6010; 22 U.S.C.
2370(a); Pub. L. 104-114, 106 Stat. 785 (22 U.S.C. 6021-6091); Proc.
3447, 27 FR 1085, 3 CFR, 1959-1963 Comp., p. 157; E.O. 9193, 7 FR
5205, 3 CFR, 1938-1943 Comp., p. 1147; E.O. 9989, 13 FR 4891, 3 CFR,
1943-1948 Comp., p. 748; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp.,
p. 614.
Subpart B--Prohibitions
2. Section 515.208 is added to read as follows:
Sec. 515.208 Restrictions on loans, credits and other financing.
No United States national, permanent resident alien, or United
States agency may knowingly make a loan, extend credit or provide other
financing for the purpose of financing transactions involving
confiscated property the claim to which is owned by a United States
national, except for financing by a United States national owning such
a claim for a transaction permitted under United States law.
Subpart C--Definitions
3. Section 515.311 is amended by redesignating the existing
paragraph as (a) and adding paragraph (b) to read as follows:
Sec. 515.311 Property; property interests.
(a) * * *
(b) As used in Sec. 515.208, the term property means any property
(including patents, copyrights, trademarks, and any other form of
intellectual property), whether real, personal, or mixed, and any
present, future, or contingent right, security, or other interest
therein, including any leasehold interest.
4. Section 515.334 is added to read as follows:
Sec. 515.334 United States national.
As used in Sec. 515.208, the term United States national means:
(a) Any United States citizen; or
(b) Any other legal entity which is organized under the laws of the
United States, or of any State, the District of Columbia, or any
commonwealth, territory, or possession of the United States, and which
has its principal place of business in the United States.
5. Section 515.335 is added to read as follows:
Sec. 515.335 Permanent resident alien.
As used in Sec. 515.208, the term permanent resident alien means an
alien lawfully admitted for permanent residence into the United States.
6. Section 515.336 is added to read as follows:
Sec. 515.336 Confiscated.
As used in Sec. 515.208, the term confiscated refers to:
(a) The nationalization, expropriation, or other seizure by the
Cuban Government of ownership or control of property, on or after
January 1, 1959:
(1) Without the property having been returned or adequate and
effective compensation provided; or
(2) Without the claim to the property having been settled pursuant
to an international claims settlement agreement or other mutually
accepted settlement procedure; and
(b) The repudiation by the Cuban Government of, the default by the
Cuban Government on, or the failure of the Cuban Government to pay, on
or after January 1, 1959:
(1) A debt of any enterprise which has been nationalized,
expropriated, or otherwise taken by the Cuban Government;
(2) A debt which is a charge on property nationalized,
expropriated, or otherwise taken by the Cuban Government; or
(3) A debt which was incurred by the Cuban Government in
satisfaction or settlement of a confiscated property claim.
Subpart G--Penalties
7. Section 515.701 is amended by removing paragraph (a)(5),
redesignating paragraph (a)(6) as (a)(5), and adding paragraph (d) to
read as follows:
Sec. 515.701 Penalties.
* * * * *
(d) Attention is directed to 22 U.S.C. 6033, which provides that a
violation of the prohibition against extending a loan, credit, or other
financing for the purpose of financing transactions involving
confiscated property, as contained in Sec. 515.208 of this part, shall
be punishable by such civil penalties as are applicable to violations
of this part.
Dated: July 2, 1996.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
Approved: July 9, 1996.
James E. Johnson,
Assistant Secretary (Enforcement).
[FR Doc. 96-18255 Filed 7-15-96; 1:09 pm]
BILLING CODE 4810-25-F
