Full text of Federal Reserve Bank of New York Circulars : 10280. Foreign Assets Control Regulations

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FEDERAL RESERVE BANK
OF NEW YORK
January 9, 1989

Foreign Assets Control R egulations
To All State Member Banks, Bank Holding Companies,
Edge and Agreement Corporations, and Branches and Agencies o f
Foreign Banks in the Second Federal Reserve District:

Enclosed is a copy of a booklet entitled Foreign Assets Control Regulations fo r the Financial
Community, prepared by the Office of Foreign Assets Control (OFAC), U.S. Department of the
Treasury, which summarizes the Foreign Assets Control Regulations administered by OF AC.
OFAC is responsible for the administration of laws and regulations relating to economic sanc­
tions imposed against selected foreign countries. These economic sanctions differ for each country
affected, depending on the public policy objectives to be achieved. OFAC has developed this sum­
mary outline of its regulations to assist bankers in understanding the sanctions imposed on each
country.
The booklet is intended as a convenient reference but does not replace or supplement the cur­
rent regulations. Economic sanctions under the regulations apply to U.S. banks, including their
overseas branches and subsidiaries, and to branches and agencies of foreign banks operating in the
United States.
Questions regarding the interpretations of these regulations should be directed to Dennis P.
Wood, Compliance Officer, Licensing Compliance Office (Tel. No. 202-376-4783), Office of For­
eign Assets Control, U.S. Department of the Treasury, Suite 203, 1331 G Street, N .W ., Wash­
ington, D.C. 20220.




C hester B . F eld b er g ,

Senior Vice President.

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X Sz)

FEDERAL RESERVE BANK
OF NEW YORK

[

Circular No. 10280 "
1
January 5, 1989

R EG U LA TIO N CC
Final Preemption Determination — New Jersey
To All Depository Institutions, and Others Concerned,
in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has issued a final determination that
provisions in New Jersey law concerning disclosure of a bank’s funds availability policy are pre­
empted under Regulation CC.
Printed below is the text of the Board’s notice, as published in the Federal Register of De­
cember 23. Questions on the final preemption determination should be directed to our Check Proc­
essing Function (Tel. No. 212-720-6334).
E.

G e r a l d C o r r ig a n ,

President.

FEDERAL RESERVE SYSTEM
12 CFR Part 229

[Docket No. R-0647]
Regulation CC; Availability of Funds
and Collection of Checks; Preemption
Determinations
a g e n c y : Board of Governors of the
Federal Reserve System.
ACTION: Final interpretation.
s u m m a r y : The Board is publishing a
final official Board interpretation
concerning a preemption determination
under its Regulation CC, Availability of
Funds and Collection of Checks, with
respect to the law of New Jersey. The
Expedited Funds Availability Act
provides standards for determining
whether State law governing funds
availability supersedes, or is preempted
by Federal law. Under Regulation CC,
the Board will issue preemption
determinations upon request
EFFECTIVE DATE: December 19,1988.

FOR FURTHER INFORMATION CONTACT:

Oliver Ireland. Associate General




Counsel (202/452-3625), Legal Division,
or Louise L Roseman, Assistant Director
(202/452-3874) or Gayle Thompson,
Program Leader (202/452-2934), Division
of Federal Reserve Bank Operations; for
the hearing impaired only:
Telecommunications Device for the
Deaf, Eamestine Hill or Dorothea
Thompson (202/452-3544).
SUPPLEMENTARY INFORMATION:

Background
On May 13,1988, the Board adopted
Regulation CC to carry out the
provisions of the Expedited Funds
Availability Act (the "Act”) (12 U.S.C.
4001-4010). The regulation requires
banks to make funds available to their
customers within specified time frames,
and to disclose their funds availability
policies to their customers. A number of
states have also enacted rules governing
funds availability. The Act (section 608)
and Regulation CC (§ 229.20) provide
that any provision of state law in effect
on or before September 1.1989, that
provides for a shorter hold for a
category of checks than is provided

under federal law will supersede the
federal provision.
Provisions of state law governing
funds availability that permit a bank to
make funds available for withdrawal in
a longer period than permitted under
Regulation CC are considered
inconsistent, and are preempted by
Regulation CC. In addition, state
disclosure and notice requirements
concerning funds availability related to
accounts covered by Regulation CC are
preempted by the federal disclosure
scheme.
Regulation CC provides for Board
determinations of whether state law
related to the availability of funds is
preempted by federal law upon the
request of a state, bank, or other
interested party.
Discussion
The Board issued, for a 30-day public
comment period, a proposed preemption
determination with respect to New
Jersey law. 53 FR 44352 (November 2,
1988). The Board set out principles, at
(OVER)

the time it adopted several final state
preemption determinations in August, as
guides for future preemption
determinations. 53 FR 32354 (August 24.
1988). Those principles have been
followed in the proposed New Jersey
determination as well.
The State of New Jersey Department
of Banking requested that the Board
issue a preemption determination under
Regulation CC with respect to New
Jersey law. New Jersey does not have a
law or regulation establishing maximum
time periods within which funds
deposited to accounts must be made
available for withdrawal. New Jersey
does, however, have regulations
governing the disclosure of an
institution's availability policy.
Regulation CC provides that state funds
availability^ disclosure or notice
requirements applicable to accounts
covered by the federal rules are
preempted by the federal disclosure
scheme. The Board received no
comments from the public on the
proposal, and has adopted the New
Jersey preemption determination as
proposed.
List of Subjects in 12 CFR Part 229
Banks, Banking, Federal Reserve
System.
For the reasons set out m the
preamble, 12 CFR Part 229 is amended




as follows:
PART 229— [AMENDED]

1. The authority citation for Part 229
continues to read as follows:
Authority: Title VI of Pub. L. 10G-M. 101
Stat. 522, 635, 12 U.S.G 4C01 et seq.

2. Appendix F is amended by adding a
preemption determination for the state
of New Jersey alphabetically to read as

follows:
Appendix F—Official Board
Interpretations; Preemption
Determinations

New Jersey
Background
The Board has been requested, in
accordance with &229.2Q(d4, of Regulation* CC
(12 CFR Part 229). to determine whether the
Expedited1Funds Availability Act (the “Act”]
and Subpart B (and in connection therewith.
Subpart A) of Regulation CC preempt the
provisions of New Jersey law concerning
disclosure of a bank's funds availability
policy. (See also the Board's preemption
determination regarding the Uniform
Commercial Code, section 4-213(5),
pertaining to availability of cash deposits.)
New Jersey does not have a law or
regulation establishing the maximum time
periods within whieh funds deposited by
check or electronic payment must be made
available for withdrawal. New Jersey does,

however, have regulations concerning the
disclosure of a banking institution's
availability policy (N.J.A.C. 3:1-15.1 et set/.).
Disclosures
New Jersey law requires every banking
institution (defined as any 9tat« or federally
chartered commercial bank, savings bank, or
savings and loan association) to provide
written disclosure to all holders of and
applicants for deposit accounts which
describes the institution's funds availability
policy. Institutions must also disclose to their
customers any significant changes to their
availability policy.
Regulation CC preempts state disclosure
requirements concerning funds availability
that relates to ‘‘accounts" that are
inconsistent with the federal requirements.
The state requirements are different from,
and therefore inconsistent with, the federal
disclosure rules. (§ 229.20(c)(2)). Thus, the
New Jersey statute (N.J.A.C. sections 3:1-15.1
et seq.) is preempted by Regulation CC to the
extent that these disclosure provisions apply
to "accounts’’ as defined by Regulation CC.
The New Jersey disclosure rules would
continue to apply to other "deposit accounts,,
as defined by New Jersey law. including
money market accounts and savings accounts
established by a natural person for personal
or family purposes, which are not governed
by the Regulation CC disclosure
requirements.
By order of the Board of Governors of the
Federal Reserve System. December 19* 1980.
William W. Wiles,
Secretary o f the Board.
(FR Doc. 89-29458 Filed 12-22-88; 8:45 am)
BILUNG COOE 6210-01-01

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Foreign Assets Control Regulations
for the Financial Community

Office of Foreign Assets Control, U.S. Department of the Treasury



Foreign Assets Control Regulations for the Financial Community
Office of Foreign Assets Control, U.S. Department of the Treasury
1331 G Street, N.W. Washington, D.C. 20220
202/376-0395

Table of Contents
I.

Introduction........................................................ 2

n. OFAC Laws, Embargoed Countries, and Criminal
Penalties............................................................ 2

APPENDIX III
Specifically Designated Nationals L ist............ 21
APPENDIX IV
South African Parastatals L is t.......................... 24

El. Civil Penalties.................................................. 2
IV. Compliance Programs and Audit
Procedures.........................................................2

APPENDIX V
Panamanian Governmental E ntities.................. 27

V. Terminology
A. B locking.....................................................3
B. Blocked Account.........................................3
C. General License.........................................3
D. Specific License..........................................3
E. O ffset.......................................................... 3
F. Interest..........................................................3
G. Property........................................................3
H. Have an interest in.................................... 4
I. Person subject the Jurisdiction of the United
S tates.......................................................... 4
J. Specially Designated Nationals...................4
K. C ensus..........................................................4
VI. Bank Responsibility by Country
A. South Africa.............................................. 4
B. Panam a.........................................................7
C. L ibya.............................................................8
D. C uba............................................................ 10
E. Vietnam, North Korea, andCambodia......... 11
F. N icaragua................................................... 12
G. Iran .............................................................. 12
H. East Germany, Estonia, Latvia,
& Lithuania................................................. 13
I. Transaction Control Regulations; Soviet Gold
Coin Regulations........................................ 13
APPENDIX I
Prepenalty and Penalty Procedures..................... 14
APPENDIX H
Sample Bank Compliance Forms for Handling
Blocked Accounts.............................................. 17

Department of
the Treasury




August 1988

1

I. Introduction

tial violations of the sanctions program.

The Office of Foreign Assets Control (OFAC) of the U.S.
Department of the Treasury administers a series of laws
that impose economic sanctions against selected foreign
countries to further U.S. foreign policy and national
security objectives. The economic sanctions program of
the U.S. Government is a powerful foreign policy tool. Its
success requires the active participation and support of
every financial institution. The use of economic sanctions
goes back to the earliest days of the Republic through
trade embargoes, blocked assets controls, travel bans, and
other commercial and financial restrictions. Management
of such sanctions has traditionally been entrusted to the
U.S. Secretary of the Treasury.
OFAC is responsible for promulgating, developing, and
administering the sanctions Regulations and program for
the Secretary under five basic statutes. The Federal Bank
Regulatory Agencies are cooperating in ensuring financial
institution compliance with OFAC Regulations.

II. OFAC Laws, Embargoed Countries, and Criminal
Penalties
A—Trading With the Enemy Act (TWEA), codified at 50
U.S.C. App.5 (North Korea, Vietnam, Cambodia, Cuba,
East Germany, Estonia, Latvia, and Lithuania) provides
for ten years imprisonment and a USD50,000 fine;
B—International Emergency Economic Powers Act
(IEEPA), codified at 50 U.S.C. 1701 (Iran, Libya, Nicara­
gua, and Panama) provides for ten years imprisonment
and a USD50,000 fine;
C—Comprehensive Anti-Apartheid Act (CAAA), codi­
fied at 22 U.S.C. 5001 (South Africa) provides for ten
years imprisonment and a USD50,000 fine;
D—International Security and Development Cooperation
Act (ISDCA) codified at 22 U.S.C. 2349 aa-9 (Iran) has
no criminal penalties, but general Customs laws are
applied;
E—The Criminal Code at 18 U.S.C. 1001 provides for
five years imprisonment and a USD10,000 fine for falsifi­
cation or misrepresentation of the facts surrounding poten­

2




III.

Civil Penalties

OFAC has independent authority to impose civil penalties
for violations under IEEPA (USD10,000) and CAAA
(USD50,000). Administrative fines can be imposed for
violations of the sanctions program against South Africa,
Libya (IEEPA), Nicaragua, Iran, and Panama. A detailed
outline of Prepenalty and Penalty Procedures follows as
APPENDIX I.
IV.

Compliance Programs and Audit Procedures

The importance of establishing a compliance program and
developing internal audit procedures should be obvious to
every financial institution. A bank in non-compliance may
be opening itself to adverse publicity, fines, and even
criminal penalties, if violations are other than inadvertent
It is often difficult to balance the demands of Federal and
State bank examiners with limitations on time, resources,
and manpower imposed by bank management. While
every financial institution must comply with the same
laws and regulations, no compliance program can be pre­
packaged and sold in the open marketplace. Every pro­
gram must be tailored to meet the needs and structure of
individual financial institutions. The Federal Bank Regu­
latory Agencies will be reviewing the financial institutions
under their supervision to determine the adequacy of com­
pliance programs with regard to OFAC Regulations.
OFAC recommends that every bank designate a "Compli­
ance Officer," a "Compliance Committee," or create a
"Compliance Department." Formal compliance responsi­
bilities should also be assigned to all operations and sys­
tems managers. Internal auditing departments ought to be
charged with assisting in the development of "corporate
compliance memoranda" and should verify that proce­
dures, once established, are being followed. As an exam­
ple of tight controls, one financial institution included the
following paragraph in one of their "compliance memo­
randa:"

A ugust 1988

Areas designated as responsible for implementation
of compliance requirements, policies, and procedures

Department of
the Treasury

which are set forth in this Corporate Compliance
Memorandum will incorporate them into new or
existing operational procedures. To assure the
implementation of this policy, designated units
must return the enclosed implementation letter
verifying that their area has implemented the
necessary procedures. If any unit has any questions
concerning the policies and procedures, it should
contact Corporate Compliance.

not be made except as licensed by OFAC or otherwise
authorized by the Treasury Department.

An in-depth audit of each department in the bank ought to
be conducted at least once or twice a year. The compli­
ance audit may either be incorporated into a bank's stan­
dard auditing program or conducted separately. Preferably
findings should be reported to senior management or to
the bank's board of directors. Internal auditing depart­
ments should not be surprised if they are questioned by
Federal Bank Examiners about their bank's compliance
procedures regarding OF AC Regulations.
An effective internal communication network is critical
for regulatory compliance. Banks might consider includ­
ing regulatory notices and explanations in staff newslet­
ters. Compliance training programs ought to be initiated—
reviewing regulations in staff meetings, incorporating
compliance requirements into operating procedures, and
joining with other banks to sponsor seminars.
An example of a successful bank compliance program
regarding blocked assets may be found in APPENDIX II.
V. Terminology

There are a number of key phrases which consistently
reappear in Treasury sanctions:
A— Blocking—Also called "freezing," this is a form of
controlling assets under U.S. jurisdiction. While title to
blocked property remains with the designated country or
national, the exercise of the powers and privileges nor­
mally associated with ownership is relegated to the U.S.
Treasury Department and controlled by OFAC specific
licenses. Blocking immediately imposes an across-theboard prohibition against transfers or transactions of any
kind with regard to the property.
B—Blocked Account—An account with respect to which
payments, transfers, withdrawals or other dealings may

Department of
the Treasury




C—General License—A regulatory provision authorizing
certain transactions-not an actual document Its terms are
listed in the appropriate Regulations. The concept is simi­
lar in meaning to that employed by the U.S. Department
of Commerce. Transactions consistent with normal bank­
ing practice are frequently permitted by general license.
For questions about general licenses, contact OFAC at
202/376-0392.
D—Specific License—A permit issued by OFAC on a
case-by-case basis to a specific individual or company
allowing an activity that would otherwise be prohibited by
the embargo or sanctions program. Banks should note that
OFAC specific licenses are authenticated with an official
Treasury seal embossed (in the manner of a Notary seal)
over the signature of OF AC's Chief of Licensing. Each
license bears a control number that can be verified by call­
ing OFAC Licensing at 202/376-0236.
E—Offset—Exercise of the right to net out mutual indebt­
edness. Offset is a prohibited transfer of frozen assets in
situations of blocked property. When foreign assets held
by an American company (including a bank) are frozen,
the assets and any claims which the American company
may have against the foreign owner are kept separate.
F—Interest—Must be paid for blocked accounts of Cuba,
North Korea, Vietnam, Cambodia, East Germany, Esto­
nia, Latvia, and Lithuania; may be paid upon request for
blocked accounts of Libya; it should be at a rate "no less
than the maximum rate payable on the shortest time
deposit in the bank where the account is held. Such an
account includes six-month T-bills or insured CD's with a
maturity not exceeding six months as appropriate for the
amounts
involved."
G—Property—Anything of value. Examples of property
under TWEA sanctions are: money, checks, drafts, debts,
obligations, notes, warehouse receipts, bills of sale, evi­
dences of title, negotiable instruments, trade acceptances,
contracts, and anything else real, personal, or mixed, tan­
gible or intangible, "or interest or interests therein,
present, future, or contingent." Practically everything that

August 1988

3

banks do every day involves "property" within the mean­
ing of the regulations.
H—Have An Interest In—Has a very broad meaning
under TWEA and arises in many forms-e.g., seller, pur­
chaser, agent, account party, beneficiary, opening, con­
firming, or advising bank, country of origin of products,
country of intermediate or ultimate consignment of an
export... In other words, the regulations are broader in
scope than ordinary banking definitions. Three examples
might help: (1) OFAC found Libya to "have an interest in"
office furniture being sold by a North Carolina manufac­
turer to an Illinois purchaser, where the parties were aware
that the furniture would be resold to a South Korean firm
for installation in a Libyan project. The interest of Libya
arose from the contract chain leading from North Carolina
to Tripoli; (2) a Federal Court in New York found the
Chinese government "had an interest in" all products
exported from China, even after their initial sale to a for­
eign country, because of the potential for hard currency
earnings from those exports;
(3) U.S. Custom’s Exodus Command Center recently
found Cuba to "have an interest in" and seized a shipment
of cigars which had been transshipped from Havana
through Toronto to Miami for ultimate consignment to a
Bahamanian company. The goods were not licensed by
OFAC to enter U.S. commerce even as an "in-transit"
shipment.
I— Person Subject To The Jurisdiction Of The United
States—The universe which must comply with OFAC reg­
ulations. It includes American citizens and permanent res­
ident aliens wherever they are located; individuals and
entities located in the United States (including all foreign
branches, agencies, rep offices, etc.); corporations orga­
nized under U.S. law, including foreign branches; and
(under TWEA based sanctions only) entities owned or
controlled by any of the above, the most important being
foreign-organized subsidiaries of U.S. corporations.

Department by being mentioned on the "SDN" list so that
persons subject to the jurisdiction of the United States will
know they are prohibited from dealing with them. The last
update appeared in the Federal Register on December 10,
1986 (see APPENDIX III). Watch the Federal Regsiter in
January of each year, beginning in 1989, for a comprehen­
sive annual update. For specific questions about SDN's
contact OFAC Enforcement at: 202/376-0400.
K—Census—Comprehensive statistical survey of blocked
assets conducted from time to time by OFAC. Response is
mandated by law. The information obtained from the sur­
vey is of vital importance to the U.S. Government for for­
eign policy planning purposes, to assist Treasury in the
preservation of blocked assets and to enhance their value
for the benefit of U.S. claimants, including financial insti­
tutions.
VI. Bank Responsibility by Country
A—South Africa
South African Transactions Regulations (31 CFR 545)
1) Loans To The Government Of South Africa—No loans
are permitted to the South African Government (SAG) or
to controlled entities of the SAG unless they involve an
agreement entered into prior to September 9, 1985 [the
agreement must be on file].
For banks, the definition of "loan" may be found at 31
C.F.R. 545.304:
"any transfer or extension of funds or credit on the basis
of an obligation to repay, or any assumption or guarantee
of the obligation of another to repay an extension of funds
or credit," including , but not limited to:
(i) overdrafts;
(ii) currency swaps;

J—Specially Designated Nationals—Usually persons who
or which are not nationals of a designated target country,
but who are nonetheless treated as nationals in applying
sanctions to their transactions; they are typically front
organizations. The term also includes actual nationals who
are highlighted as being of special concern to the Treasury

4




(iii) the purchase of debt securities [e.g., bonds] issued by
the Government of South Africa after November 11,
1985;

August 1988

Department of
the Treasury

(iv) the purchase of debt securities issued by a South
African entity on or after October 2,1986;
(v) the purchase of equity securities [e.g., stocks] issued
by the Government of South Africa or a South African
entity on or after October 2,1986;
(vi) the purchase of a loan made by another person;
(vii) the sale of financial assets, including precious metals,
subject to a repo agreement;
(viii) a renewal or refinancing where new funds or credits
are transferred or extended to a prohibited borrower or
recipient; or
(ix) the issuance of a standby letter of credit.
Note that the prohibition against "loans" does not include:
(i) normal short-term trade finance for goods or services
with a maturity of a year or less (the definition of "trade
finance" is taken from the Fed's "Country Exposure
Report");
(ii) the confirmation of commercial L/C's not exceeding a
year (the confirmation of standby L/C's is not allowed);

over by the Government. The Regulations state that they
do "not prohibit, a financial institution in the United States
from complying with applicable laws, regulations or other
directives of the South African Government requiring or
permitting the South African Government to become the
primary obligor with respect to an outstanding loan, pro­
vided that no new funds or credits are thereby transferred
or extended to a prohibited borrower." Neither do they
prohibit "a financial institution in the United States from
rescheduling loans or otherwise extending the maturities
of existing loans, or from charging fees, or interest at
commercially reasonable rates." The practical effect of
this language is to allow U.S. banks to "on-lend" amounts
in their PIC accounts to new private sector borrowers. The
redeployment of local funds "tied up" in South Africa is
permissible so long as no new funds or credits are trans­
ferred or extended. Many U.S. banks have substantial
principal built up in their accounts with the PIC. They are
permitted to relend this principal by directing the PIC to
pay funds in their accounts to new South African borrow­
ers at rates usually providing a higher yield than PIC
funds.
2) No New Investment In South Africa Including Loans To
The South African Private Sector—No "new investment"
is permitted in South Africa on or after November 16,
1986— includes loans and other extensions of credit by
this
any U.S. national whether to the public or to the private
sector.

(iii) foreign exchange transactions executed at current
market rates for immediate or future delivery (including
"short-term overdrafts" to clearing accounts incidental to
the FOREX trade); or

(i) it does not matter whether there was an agreement on
private debt entered into before the cut-off date.

(iv) the rescheduling of existing loans where no new funds
or credits are transferred or extended to a prohibited bor­
rower or recipient.

(ii) an exemption is granted on loans to firms owned by
black South Africans, but any bank wishing to make such
a loan must:

The meaning of "rescheduling" in the South African con­
text is very broad. It includes, for example, "PIC loans."
In a debt moratorium variation to conserve hard currency,
South Africa prohibits repatriation by foreign creditors of
more than a minimal amount of principal due to them. The
mechanism that the Government uses to insure compli­
ance is to substitute itself as obligor on outstanding pri­
vate debt through an official body called the Public
Investment Commissioners (PIC). The Regulations recog­
nize that in a PIC loan assumption, private debt is taken

(a) file a prior registration with OFAC
(b) obtain an "affidavit" from the borrower that the firm
has at least 75% ownership and management by Black
South Africans

Department of
the Treasury




[The information filed with OFAC including the names
and titles of Black South African participants is subject to
verification by the overseas posts of the U.S. Govern­
ment];

A ugust 1988

5

(iii) Specific licenses may be issued by OFAC on a caseby-case basis for loans intended for educational, humani­
tarian, health, or housing projects provided on a nondiscriminatory basis;
(iv) Guarantees currently in place may be renewed and, if
oral, made written, but no "new" loan guarantees may be
made nor may "guarantees" be increased in amount;
(v) Parent companies may "take over" loans from U.S.
financial institutions to their wholly-owned South African
subsidiaries under an existing guarantee or support obliga­
tion provided the transfer from bank to parent represents
no new extensions of credit in South Africa (e.g., by a par­
ent's forgiving a subsidiary's debt);
(vi) U.S. companies wishing to divest themselves of
South African holdings sometimes insist that they must
"invest in order to disinvest." An Economically Sound
Manner exception to the Regulation's new investment pro­
hibition authorizes "contributions of money or other assets
where such contributions are necessary to enable a con­
trolled South African entity to operate in an economically
sound manner, without expanding its operations." Any
such ESM contribution must be registered in advance with
OFAC. Any bank involved in a loan, the proceeds of
which it knows a parent is forwarding to a South African
subsidiary, must obtain an affidavit from the borrower that
the ESM argument is in effect. Failure to obtain the affi­
davit could place the bank in the situation of violating a
prohibition against "loans through intermediaries."
Schemes such as loans or discounts to buy-out groups,
contributions to subsidiaries to render them saleable, etc.
are generally prohibited. Companies contemplating disin­
vestment should be told to contact OFAC at 202/376-0392
for guidance;
(vii) No new loan participations are permitted unless the
obligation to purchase existed before October 2,1986, or
is received as a result of an acquisition of another finan­
cial institution or all of its assets.
3) Bank Accounts—U.S. banks may not maintain accounts
for the Government of South Africa or South African enti­
ties unless specifically licensed; foreign offices of U.S.
banks are permitted to hold such accounts.

4) Exports—There are no current OFAC restrictions.
Export restrictions are, however, administered by the
U.S.Department of Commerce under the Export Adminis­
tration Regulations and through the U.S. Department of
State's Office of Munitions Controls. Be aware that Cus­
toms' Exodus Command Centers will seize all items on
the munitions list destined for the armed services, police,
or other security forces of South Africa, all crude oil or
refined petroleum products, and certain computer-related
items if a customer attempts to export them to South
Africa.
5) Imports—U.S. banks involved in the financing of
imports from South Africa must require a certification
from their importing customer that the goods are eligible
for importation into the U.S. For your information, the fol­
lowing articles are not eligble for importation:
(i) articles "suitable for human consumption;"
(ii) agricultural commodities, products, byproducts, or
derivatives;
(iii) iron ore;
(iv) iron;
(v) steel;
(vi) sugars, sirups, or molasses;
(vii) goods grown, produced, manufactured, marketed or
otherwise exported by "parastatal organizations," i.e., the
South African Government or entities owned, controlled,
or subsidized by it. This includes gold bullion since all
South African gold bullion is marketed by the Reserve
Bank of South Africa, a parastatal organization. (A listing
of South African parastatals is included with this circular
as APPENDIX IV);
(viii) uranium ore or uranium oxide;
(ix) coal;
(x) textiles;
(xi) kruggerands, gold coins, or gold coin "jewelry;"

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A ugust 1988

Department of
the Treaaury

(xii) certain military articles.
["Third country" transactions--such as brokering or
financing—
even when they involve items that are prohib­
ited above, are permitted, provided, of course, that the
merchandise does not enter the United States.]
6) Private Banking—Foreign branches of U.S. banks may
execute orders to purchase or to sell South African securi­
ties or stocks at the direction of non-U.S.-national princi­
pals, customers, or beneficiaries, however the foreign
branch must have an affidavit on file certifying that their
customer is, in fact, a non-U.S. national. Banks physically
located in the U.S. may not engage in such transactions
even for nonresident aliens.
7) Securities—Dealing in South African debt or equity
securities issued on or after October 2, 1986 is a prohib­
ited new investment. This is true regardless of whether the
transaction occurs in the primary or secondary market.
Shares issued by a South African entity on or after Octo­
ber 2,1986 in a stock split or similar recapitalization, in a
merger or other reorganization, or as a stock dividend with
respect to shares issued prior to October 2,1986, carry the
issuance date of the pre-October 2,1986 shares as long as
there is no payment, contribution of funds or assets, or
credit to or for the South African issuer. This exception is
not available for shares acquired through the exercise of
warrants or preemptive rights after November 15,1986.
B—Panama
Panamanian Transactions Regulations (31 CFR 565)
1) Financial—All property and interests in property of the
Government of Panama, its agencies, instrumentalities and
controlled entities are blocked, including Banco Nacional
de Panama and the Caja de Ahorros, if they are physically
in or come within the United States. A listing of Panama­
nian Governmental entities is provided as APPENDIX IV.
In order for any such property or interest in property to be
"unblocked," it must be specifically licensed or otherwise
authorized in the Regulations (e.g., for the use of officials
"recognized" by the U.S. State Department). Banks should
note that a certification from the State Department as to
the validity of the credentials of a "recognized" diplomat
is not sufficient to "unblock" any account, even when the

Department of
the Treasury




account is referenced in the certification. The unblocking
of the account must be licensed by the Treasury Depart­
ment.
2) Exports—While not a trade embargo program, banks
should caution their exporting customers to beware of
unlicensed transactions involving the Government of Pan­
ama or the Noriega/Solis regime. Banks are prohibited
from handling any unauthorized transactions in which
they have actual knowledge that the Noriega/Solis regime
or the Government of Panama have an interest. Any prop­
erty in the U.S. associated with the transaction would be
blocked.
3) Imports—While not a trade embargo program, banks
should caution their importing customers to beware of
unlicensed transactions involving the Government of Pan­
ama or the Noriega/Solis regime. Banks are prohibited
from handling any unauthorized transactions in which
they have actual knowledge that the Noriega/Solis regime
or the Government of Panama have an interest. Any prop­
erty in the U.S. associated with the transaction would be
blocked.
4) Payments To The Noriega/Solis Regime From The U.S.
Or Within Panama—Most payments or transfers of cur­
rency and other financial or investment assets to the
Noriega/Solis regime from the U.S. or by U.S. persons,
branches, or subsidiaries located in Panama (including
payments in kind) are prohibited. The most important pro­
hibitions are: (1) corporate and individual income taxes,
(2) direct taxes and fees, including export taxes and fees,
(3) direct payment of excise taxes collected as agent for
the Government of Panama, and (4) rental fees.
Certain payments and transfers are permitted to be made
to the Noriega/Solis regime under "general license:" (1)
payments by individuals other than income tax payments,
(2) travel-related payments by individuals or by U.S. firms
in connection with the provision of travel services to indi­
viduals, (3) payments for postal and telecommunications
services, (4) payments for utilities and similar municipal
services, (5) payments of indirect taxes, including sales
and excise taxes, (6) administrative fees paid in connec­
tion with basic business activity, and (7) social security
taxes, and (8) payments related to publications. Permissi­
ble administrative fees include: commercial license fees,

A ugust 1988

7

corporate registration fees and taxes, court pleading fees,
creation of rights fees, copyright fees and taxes, custodial
fees and services, document processing fees, fiscal
stamps, health certificates, immigration fees, import
duties, inspection services, international banking licenses,
landing fees, licensing fees, litigation costs, mineral
extraction fees, municipal taxes, new product fees, notar­
ies' fees, occupational risk insurance fees, parking meters,
passport fees, patent fees and taxes, plant inspection fees,
port fees, quarantine fees, radio and television registration
fees, recordation fees, stamp taxes, towage fees, transpor­
tation tolls, trademark fees and taxes, vehicle registration
fees, visa fees, warehouse storage fees, and work permits.
Banks can process such payments on an "unblocked" basis
and without concern that they would be violating the Reg­
ulations.
Individuals may not make payments directly or indirectly
for or on behalf of U.S. firms.
Any payments or transfers owed to the Government of
Panama and not authorized for payment to the regime in
Panama City must be made to "Government of Panama
Account No.2" at the Federal Reserve Bank of New York:
(a) over FedWire using typecode 15 and referring to rout­
ing number 021001208 or (b) by USD check or draft
made payable to "the Federal Reserve Bank of New York
for credit to Account No. 2 ONLY" and sent, along with
all required and appropriate documentation to lockbox
address: Republic of Panama, Box No. 0225, Washington,
DC 20055. The reasons for the payment should be refer­
enced on the FedWire form or check or should be sent
under separate cover to the Census Section of OF AC.
5) Interbank Clearing Paymments—This sanction pro­
gram is not directed against the Panamanian private sector
and it was not and is not the intent of the U.S. Govern­
ment to disrupt normal clearing functions within the inter­
national banking community. There is an exemption in the
Regulations for "interbank clearings" which are defined as
"payments of funds by a bank to another bank, where such
payments are effected by the bank or banks over a funds
transfer system such as FedWire, CHIPS, SWIFT, or the
like, or across an individual bank's books, where none of
the banks involved has any actual knowledge that the
original remitter of any funds to the Noriega/Solis regime
is located in the United States..." Obviously payments or

8




transfers authorized elsewhere in the Regulations (e.g.,
under "general license) may be sent. The proceeds of a
SWIFT MT-100 "customer transfer" where the Noriega/
Solis regime is listed as the beneficiary/recipient would be
forzen—with the money to be deposited into a blocked
account. PUPID notification or application payments are
obviously not permitted to be made to representatives of
the Noriega/Solis regime in the United States. On the
other hand, a SWIFT MT-202 message would clearly fit
within the interbank clearing exemption in the Regula­
tions and would be permitted.
6) Proceeds Of Documentary Collections And Letters Of
Credit—Notwithstanding instructions received from their
correspondents, banks located in the United States are not
authorized to remit the proceeds of documentary collec­
tions or letters of credit to accounts maintained at Banco
Nacional de Panama in Panama; such remittances are not
included within the meaning of "interbank clearing pay­
ments" and would be blocked here as property in which
the Government of Panama has an interest, however indi­
rect. Banks located in the United States should seek alter­
nate payment instructions from their correspondents.

C—Libya
Libyan Sanctions Regulations (31 CFR 550)
1) Financial—Government of Libya assets are frozen and
all contracts, loans, and financial dealings with Libya are
prohibited. The freeze means that all property of the Lib­
yan Government and its owned or controlled entities,
including all Libyan-organized and Libyan-owned or con­
trolled banks (where Libya has a 50% or more interest), is
blocked in banks in the United States and American
banks' overseas branches. The prohibition on any transfer
of property or interest in the property of Libya includes
property that is now or in the future may come within the
possession or control of U.S. persons.
2) Imports—No goods or services of Libyan origin may be
imported directly into the U.S. or transshipped to the U.S.
through a third country. If any customer wishes to do so
insist on seeing the original of their specific license issued
by OFAC, verify the license by calling OFAC at 202/3760392, and, if authenticated, make a photocopy of the
license for your files. Specific licenses for imports from

August 1988

Department of
the Treasury

Libya are not being issued as of August 1988. If the cus­
tomer insists they have a "general license," have them fill
out an affidavit to that effect for your files and call OFAC
to verify the information before handling the transaction.
3) Exports—No goods, technology, or services (including
banking services for Libyan entities) may be exported to
Libya or transshipped to Libya through a third country.
No U.S. bank or foreign branch of a U.S. bank may
finance, or arrange offshore financing for, third country
trade transactions where Libya is known have an interest
in the trade as its ultimate beneficiary. OFAC takes the
view that arranging transactions which ultimately benefit
projects in Libya constitutes an exportation of brokerage
services to Libya in violation of the Regulations. The only
areas of trade finance that remain authorized for banks
with respect to Libya involve the sale of parts and compo­
nents to third countries, where the U.S. goods will be
"substantially transformed" into new and different articles
of commerce prior to shipment to Libya, or the sale of
goods which come to rest in the inventory of a thirdcountry distributor who sells less than 50% of his stock to
Libya. Even these exceptions are not available if the fin­
ished product of the third country is destined for use in the
Libyan petroleum or petrochemical industry. If any cus­
tomer wishes to export to Libya insist on seeing the origi­
nal of their specific license issued by OFAC, verify the
license by calling OFAC at 202/376-0392, and, if authen­
ticated, make a photocopy of the license for your files. No
specific licenses for exports to Libya are being issued at
this time.
4) Contracts—No U.S. person may perform any contract
(including sales and service agreements) in support of an
industrial or other commercial or governmental project in
Libya.
5) Subsidiary Transactions—Independent transactions
with Libya by U.S. owned foreign subsidiaries are permit­
ted if no U.S. person or permanent resident has a role.
While subsidiaries are exempted from these IEEPA based
regulations, it should be emphasized that the actions of a
U.S. parent and of U.S. citizens who manage or work for
the subsidiary are not exempted from the prohibitions of
the Regulations.

Libya...applies to payments and transfers of any kind
whatsoever, including payment of debt obligations, fees,
taxes, and royalties owed to the Government of Libya, and
also including payment or transfer of dividend checks,
interest payments, and other periodic payments." In any
international lending function where a U.S. bank acts as
paying bank for the debtor or agent/servicing bank for a
syndication and is called upon to disburse funds to Libya
other than into a blocked account, there is a requirement
for a specific OFAC license. The license usually requires
quarterly reports to be filed concerning dispursements to
libyan banks.
7) Standby Letters Of Credit—Special procedures have
been established with regard to the payment of drawings
under Standby Letters of Credit in favor of Libya. They
involve what are called "568 set-aside accounts." Banks
must "give prompt notice" of any drawing directly to the
account party of the credit who then has five days to apply
to OFAC for a specific license to prevent "payment" of
the Letter of Credit into a blocked account. A bank may
not make any payment even into a blocked account on
behalf of a Libyan beneficiary unless 10 business days
have elapsed following notification to the account party
customer and the customer has not produced an OFAC
specific license. If a license is issued, the account party of
the credit may establish a "set-aside" of funds on thenown corporate ledgers in favor of the Libyans in lieu of
the bank "paying" their Letter of Credit. The account party
must certify to OFAC that they have established such a
set-aside account on their corporate books, but no further
action is needed. The issuing bank must continue to main­
tain its contingent liability booking despite the establish­
ment of any corporate set-aside account and, in the event
the embargo is lifted, both the bank and the account party
must apply to OFAC for a license to unblock the set-aside
account and the L/C. Legal actions that customers may
have taken to prevent payment of Standby Letters of
Credit are preserved despite "568 Set-aside" accounts.
8) Wire Transfers—Banks should be wary of performing a
traditional direct "clearing" function for international wire
transfers destined for Libya that do not involve Eurodollar
cover accounts. Once funds are credited to a blocked Lib­
yan account, the funds are locked in the account and can
only be unblocked by a specific OFAC license.

6) Syndications— "the prohibition on transfers of property
or interests in property to the Government of

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A ugust 1988

9

9) Eurodollar Clearings—Eurodollar clearings only indi­
rectly involve Libyan accounts and are permitted. The
Regulations state "transfers are authorized by order of a
foreign bank which is not a Libyan entity from its account
in a domestic bank (directly or through a foreign branch or
a subsidiary of a domestic bank) to an account held by a
domestic bank (directly or through a foreign branch or
subsidiary) for a second foreign bank which is not a Lib­
yan entity and which in turn credits an account held by it
abroad for the Government of Libya."
10) Blocked Accounts—In regard to Libya, they may be,
but need not be interest bearing. Funds may be transferred
from a blocked DDA to a blocked interest-bearing
account, but it is up to the depositor to request the trans­
fer. No debits may be made to a blocked account to pay
obligations of U.S.or other persons, including payments
for goods, technology, or services exported prior to the
ban on exporting.
D— C u b a
Cuban Assets Control Regulations (31 CFR 515)
1) Imports—No goods or services of Cuban origin may be
imported directly into the United States or transshipped
through a third country (such as Canada) into the United
States) even if they are "substantially transformed" (e.g.,
nickel products); if any customer wishes to do so, insist on
seeing the original of their specific license issued by
OFAC, verify the license by calling OFAC at 202/3760392, and, if authenticated, make a photocopy of the
license for your files. If the customer insists they have a
"general license" to import, have them fill out an affidavit
to that effect for your files and call OFAC to verify the
information before handling the transaction.
2) Exports—No goods, technology, or services may be
exported to Cuba, directly or through another country.
This includes the exportation of U.S. origin goods and
technical data from third countries, the exportation of for­
eign-made goods produced from U.S. origin technical
data, and the brokering of Cuban commodities. Foreign
subsidiaries of U.S. firms may engage in two-way trade
with Cuba in nonstrategic goods, like grains, pursuant to
specific licenses issued by OFAC on a case-by-case basis,
but U.S. Dollar financing of such trade is prohibited. In
the event any customer wishes to export to Cuba, insist on

10




seeing the original of their specific OFAC license, verify
the license by calling OFAC at 202/376-0392, and if
authenticated, make a photocopy of the license for your
files.
3) Travel—Travel to Cuba is restricted to travel by imme­
diate family members, permanent employees of news
organizations, officials of the U.S. Government, and cer­
tain other limited categories, unless there is a specific
license from OFAC. Tourist and recreational travel are
prohibited.
4) Transportation And Shipping—Transactions incident to
transportation and shipping are prohibited except under
very limited circumstances. Banks are not permitted to
handle in any areas of their operations, including but not
limited to letter of credit document processing, documen­
tary collection handling, and commercial lending, bills of
lading of Cuban shipping companies-whether they be
nationals of Cuba or Specially Designated Nationals of
Cuba.
5) Blocked Accounts—There is a total freeze on Cuban
assets, both governmental and private, and on financial
dealings with Cuba; all property of Cuba, of Cuban
nationals, and of Specially Designated Nationals of Cuba
in the possession of persons subject to the jurisdiction of
the United States is blocked. Blocked Cuban accounts
must be interest bearing. Banks should be aware of their
responsibilities to appropriately label blocked accounts.
They should take reasonable care to ascertain that there is
no indication on suspected accounts of transactions refer­
encing or involving Cuba. When in doubt, flag the
account. The owner of a blocked account may transfer
blocked funds from one domestic bank to another as long
as the funds remain "blocked." Likewise, funds in one
type of interest-bearing account may be transferred to
another, for example, from a passbook savings account to
a certificate of deposit.
6) Commercial Loans—No financial transactions in which
Cuba has an interest are permitted. Banks that engage in
any commercial dealings that involve trade with Cuba
either directly or indirectly are at risk for substantial mon­
etary penalties and criminal prosecution. This ban
includes financing charter parties, common carriers, or
borrowers who handle trade with Cuba.

August 1988

Department of
the Treasury

7) Family Remittances—No transfer of funds to Cuba is
permitted except that Cuban-Americans may send up to
USD500.00 per quarter to the household of a "close rela­
tive" (meaning a "spouse, child, grandchild, parent,
grandparent, uncle, aunt, brother, sister, nephew, niece,
or spouse, widow, or widower of any of the foregoing").
An affidavit from your customer must be in your files
that they have not exceeded the per-quarter limitation
and the Bank must exercise "due diligence" in verifying
that funds in excess of the quota have not been transmit­
ted through it

2) Exports— No goods or services may be exported to or
transshipped through a third country to the controlled
countries from the United States; if any customer wishes
to do so, insist on seeing the original of their specific
license issued by OFAC, verify the license by calling
OFAC at 202/376-0392, and, if authenticated, make a
photocopy of the license for your files. Specific licenses
for exports to these countries are rarely, if ever, issued. If
the customer insists they have a "general license" have
them fill out an affidavit to that effect for your files and
call OFAC to verify the information before handling the
transaction.

8) Credit Cards—Charge card transactions involving
Cuba and the processing of such transactions are prohib­
ited.

3) Travel—Is permitted for individuals only; no tours are
allowed.

9) Blocked Estates—In situations of blocked estates, the
only proceeds that can be processed on an unblocked
basis are those of USD5,000 or less. No other payments
are authorized.

4) Transportation And Shipping—Transactions incident to
transportation and shipping are prohibited except under
very limited circumstances. Don't become involved with
"Specially Designated National" shipping companies.

10) Trust Departments—1
The sale of securities and other
holdings is permitted provided the proceeds of the sale
flow to the actual beneficiary into a blocked account in
the same name.

5) Blocked Accounts—There is a total freeze on North
Korean, Vietnamese, and Cambodian assets, both govern­
mental and private, and all financial dealings are prohib­
ited. All accounts of those countries or of nationals of
those countries are blocked. Banks should be aware of
their responsibilities to appropriately label blocked
accounts. They should take reasonable care to ascertain
that there is no indication on suspected accounts of trans­
actions referencing or involving the designated countries.
When in doubt, flag the account. Blocked accounts must
be interest bearing. Banks may take out normal service
charges, but there should be no additional debits.

11) Lock Boxes—Access to "blocked" safe deposit boxes
for inventory is granted under certain conditions, but the
actual contents of the boxes remain "blocked."
E— Vietnam, North Korea, Cambodia
Foreign Assets Control Regulations (31 CFR 500)
1) Imports—No goods or services may be imported
directly or transshipped through a third country to the
United States from the controlled countries, even if "sub­
stantially transformed" (e.g., coffee); if any customer
wishes to do so insist on seeing the original of their spe­
cific license, verify the license by calling OFAC at 202/
376-0392, and, if authenticated, make a photocopy of the
license for your files. Specific licenses for imports from
these countries are rarely, if ever, issued. If the customer
insists they have a "general license" have them fill out an
affidavit to that effect for your files and call OFAC to
verify the information before handling the transaction.

Department of
the Treasury




6) Family Remittances—Remittances to close relatives in
Vietnam, including Cambodian nationals, are permitted up
to USD300.00 per calendar quarter per household and up
to USD750.00 on a one-time basis to enable a close rela­
tive to emigrate from Vietnam. The term "close relative"
means a spouse, child, grandchild, parent, grandparent,
uncle, aunt, brother, sister, nephew, niece, or spouse,
widow, or widower of any of the foregoing." Banks must
obtain an affidavit from the remitter that he has not
exceeded the per-quarter limitation and the Bank must
exercise "due diligence" in verifying that funds in excess
of the quota have not been transmitted through them. No
other transfer of funds or financial transactions are permit­
ted.

A ugust 1988

11

7) Charge Cards—Charge card transactions involving
these countries and the processing thereof are prohibited.
8) Estates—In situations of "blocked estates," the only
proceeds that can be processed on an unblocked basis are
those of USD5,000.00 or less. No other payments are
authorized.

or otherwise participate in trade between Nicaragua and
third countries. A U.S. person may obtain services from
Nicaragua when they are to be rendered outside the U.S.,
including in Nicaragua.

G —Iran
Iranian Assets Control Regulations (31 CFR 535)

9) Lock Boxes—Access to "blocked" safe deposit boxes for
inventory is granted under certain conditions, but the
actual contents of the boxes remain "blocked."
10) Trust Services—The sale of "blocked" securities is per­
mitted provided the proceeds of the sale flow to the actual
beneficiary into a blocked account in the same name.
F—Nicaragua
Nicaraguan Trade Control Regulations (31 CFR 540)
1) Imports—No goods or services of Nicaraguan origin
may be imported into the United States directly from Nic­
aragua or transshipped through a third country; if any cus­
tomer wishes to do so insist on seeing the original of their
specific license issued by OF AC, verify the license by
calling OFAC at 202/376-0392, and, if authenticated,
make a photocopy of the license for your files.
2) Exports—No goods or technical data may be exported
from the United States to Nicaragua or transshipped to
Nicaragua through a third country; if any customer wishes
to do so insist on seeing the original of their specific
license issued by OFAC, verify the license by calling
OFAC at 202/376-0392, and, if authenticated, make a
photocopy of the license for your files. Commercial
exports of medicines and supplies intended strictly for
medical purposes are permitted under "general license"
and the financing of such exports is not prohibited, but be
sure to obtain an affidavit from your customer that the
material is, in fact, covered by a general license and call
OFAC to verify the statement Exports of services are permitted-banks may lend to Nicaragua or otherwise extend
credit or conduct a financial transaction provided it does
not relate to prohibited imports or exports.
3) Offshore Transactions—Foreign subsidiary and even
branch trade is permitted and U.S. companies may broker

12




1) Blocked Assets—All blocked assets other than tangible
property were transferred to the Hague effective January
1981 to set up a fund for the purpose of compensating
successful claimants before the Iran-U.S. Claims Tribunal.
Tangible property was left blocked in the United States.
2) Standby Letters Of Credit—Special procedures still
apply regarding drawings under standby letters of credit.
Banks were instructed by the original regulations to "give
prompt notice" of any drawing directly to the account
party of the credit who had five days to apply to OFAC
for a specific license to prevent "payment" of the letter of
credit. The bank could not make any payment even into a
blocked account on behalf of an Iranian beneficiary unless
10 business days had elapsed following their notification
to their customer and the customer had not produced an
OFAC license. If a license was issued, then the account
party of the credit was authorized to establish a "set aside"
of funds on their own corporate ledgers in favor of the Ira­
nians in lieu of the bank "paying" the letter of credit. The
bank had to continue to carry the letter of credit as a con­
tingent liability on its own books. Neither payments, nor
the settling up of accounts is allowed unless the accounts
and the letters of credit are unblocked. OF AC's Regula­
tions specifically state that the set-aside accounts "do not
affect the obligation of the various parties of the instru­
ments covered...if the interest and payment thereunder are
subsequently unblocked." Standby letters of credit for
which "set aside accounts" were established must be unblcocked by specific OFAC license when the underlying
issue involving their payment has been resolved before the
Iran-U.S. Claims Tribunal.
3) Exports— OFAC must specifically license exports of all
blocked tangible property remaining in the United States
when the export is awarded by or agreed to before the
Iran-U.S. Claims Tribunal.

A ugust 1988

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the Treasury

4) New Transactions—Property coming within the juris­
diction of the U.S. or of U.S. persons after January 19,
1981 is not blocked nor is property that Iran acquires an
interest in after January 19, 1981. However, new Regula­
tions regarding Iran have been promulgated in the form of
the...

standing U.S. claims and related issues. The restrictions
do not apply to any assets of the referenced controlled
countries which after 1946 came within the possession of
"persons subject to the jurisdiction of the United States"
nor do they affect current trade.

I
—Miscellany
Iranian Transactions Regulations (31 CFR 560)
Transaction Control Regulations (31 CFR 505)
1) Imports—The importation of goods or services from
Iran was prohibited effective 12:01 PM EST, 29 October
1987. Banks may not finance or otherwise service any
goods or services subject to this prohibition. If one of your
customers seeks financing or "servicing" of goods of Ira­
nian origin, insist on seeing the original of their specific
license issued by OFAC, verify the license by calling
OF AC at 202/376-0392, and, if authenticated, make a
photocopy of the license for your files. If customers insist
that they have authority to import under an exception or
under "general license," have them fill out an affidavit for
your files that the transaction is covered by a general
license or that the underlying trade occured prior to the
effective date of the Regulations. Call OFAC to verify that
such an authorization exists.

1) Offshore Trading In 'Strategic Good'— These Regula­
tions prohibit any person within the United States from
purchasing or selling, or arranging for the purchase or sale
of, strategic merchandise located outside of the United
States for ultimate delivery to the following countries:
Albania, Bulgaria, Czechoslovakia, Estonia, East Ger­
many, Hungary, Latvia, Lithuania, Mongolia, Poland and
Danzig, and the U.S.S.R.; the prohibition applies not only
to domestic American companies, but also to foreign
firms owned or controlled by persons within the United
States.
Soviet Gold Coin Regulations (31 CFR 555)
1) Dealing In Soviet Gold Coin—The importation of
Soviet gold coins, including gold coin jewelry, is prohib­
ited as of 12:01 AM EDT, 2 October 1986.

H—East Germany, Estonia, Latvia, Lithuania
Foreign Funds Control Regulations (31 CFR 520)
1) Blocked Accounts—Originally intended to combat
Nazis aggression during the Second World War, funds of
Estonia, Latvia, and Lithuania within the possession of
"persons subject to the jurisdiction of the United States"
from July 10, 1940 through December 7, 1945 were fro­
zen. Funds of the German Democratic Republic within the
possession of "persons subject to the jurisdiction of the
United States" from June 14, 1941 through December 31,
1946 were frozen. Banks should be aware that they may
still have a number of accounts from that period on their
books which remain blocked. The accounts must be inter­
est bearing. The basic reason limited controls remain in
effect with respect to the Baltic countries is that the U.S.
has not recognized as valid under international law the
1940 forced incorporation of those states into the Soviet
Union nor the Soviet claim to property owned by those
countries and their nationals. The limited East German
controls remain in effect pending the settlement of out­

Department of
the Treasury




This outline is designed to serve as a "handy reference"
on Foreign Assets Control Regulations for internal audi­
tors and bank operations officers on the date of its issu­
ance. It is not intended as a substitute for current sanc­
tions programs published in the Code o f Federal
Regulations.

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13

APPENDIX I

31 CFR Parts 535, 540, 545, and 550
Iran, Nicaragua, South Africa, and
Libya; Prepenaity and Penalty
Procedures
A G EN CY: Office of Foreign A ssets

Control, Department of the Treasury.
a c t i o n : Final rule.
The Office of Foreign A ssets
Control is amending the regulations
concerning Iran (31 CFR Part 535),
Nicaragua (31 CFR Part 540), South
Africa (31 CFR Part 545), and Libya (31
CFR Part 550) by the addition of
prepenalty and penalty procedures to
Subparts G of these regulations. The
amendments establish a procedure for
imposition o f civil monetary penalties
for violations as provided in section
206(a) of the International Emergency
Economic Powers Act, 50 U.S.C. 1705(a),
and section 603(b)(1) of the
Comprehensive Anti-Apartheid Act of
1986, 22 U.S.C. 5113(b)(1). These changes
do not alter any substantive obligations
imposed by the regulations, but set forth
an additional enforcem ent tool to secure
compliance with those obligations.
EFFECTIVE DATE: March 8,1988.
sum m ary:

FOR FURTHER INFORM ATION CO NTACT:

Thomas F. Baker, Enforcement Advisor,
Office of Foreign A ssets Control,
Department of the Treasury,
W ashington, DC 20220, 202/376-0970.
SU P P LE M E N T A R Y INFORMATION: The
Office of Foreign A ssets Control of the
Department of the Treasury (FAC) is
entrusted with the responsibility of
enforcing econom ic sanctions and
restrictions imposed pursuant to the
International Emergency Economic
Powers Act, 50 U.S.C. 1701 et seq., and
the Comprehensive Anti-Apartheid Act
of 1986, 22 U.S.C. 5001 et seq. Although
both statutes provide explicitly for civil
penalties, no procedural regulations
have previously been issued, and only
criminal prosecutions have been brought
against violators. Establishment of a
civil administrative procedure will
provide additional flexibility in
enforcement. The following regulations
establish a system of administrative
enforcement that w ill permit FAC
directly to a ssess civil monetary
penalties, with referral to the
Department of Justice for collection
w hen necessary.
Since the regulations involve a foreign
affairs function, the provisions of the
Administrative Procedure Act, 5 U.S.C.
553, requiring notice of proposed
rulemaking, opportunity for public
participation, and delay in effective
date, are inapplicable. Because no
notice of proposed rulemaking is
required for this rule, the Regulatory

14




Prepenalty and Penalty Procedures

Flexibility Act, 5 U.S.C. 601 et seq., does
not apply. Because the regulations are
issued with respect to a foreign affairs
function of the United States, they are
not subject to Executive Order 12291 of
February 17,1981, dealing with Federal
regulations.

List of Subjects in 31 CFR Part 535, 540,
545, and 550
Foreign assets, Foreign trade,
Penalties.
For the reasons set out in the
preamble, Title 31, Chapter V of the
Code of Federal Regulations, is
am ended as set forth below .
31 CFR Part 535 is am ended as
follows:
PART 535— IRANIAN ASSETS
CONTROL REGULATIONS
1. The authority citation for Part 535
continues to read as follows:
Authority: Secs. 201-207, 91 Stat. 1626; 50
U.S.C. 1701-1706; E .0 .12170, 44 FR 65729;
E .0 .12205, 45 FR 24099; E .0 .12211, 45 FR
26685.
2. Section 535.702 is added to read as
follows;
§ 535.702

P rep en alty no tice.

(a) When required. If the Director of
the Office of Foreign A ssets Control
(hereinafter "Director") has reasonable
cause to believe that there has occurred
a violation of any provision of this part
or a violation of the provisions of any
license, ruling, regulation, order,
direction or instruction issued by or
pursuant to the direction or
authorization of the Secretary of the
Treasury pursuant to this part or
otherw ise under the International
Emergency Economic Powers Act, and
the Director determines that further
proceedings are warranted, he shall
issue to the person concerned a notice of
his intent to impose a monetary penalty.
The prepenalty notice shall be issued
whether or not another agency has
taken any action with respect to this
matter.
(b) Contents—(1) Facts of violation.
The prepenalty notice shall: (i)
D escribe the violation.
(ii) Specify the law s and regulations
allegedly violated.
(iii) State the amount of the proposed
monetary penalty.
(2) Right to make presentations. The
prepenalty notice also shall inform the
person of his right to make a written
presentation within thirty (30) days of
mailing of the notice as to w hy a
monetary penalty should not be
imposed, or, if imposed, w hy it should
be in a lesser amount than proposed.

A ugust 1988

3. Section 535.703 iB added to read as
follows:
§ 535.703 P re se n ta tio n resp o n d in g to
p rep en a lty notice.

(a) Time within which to respond. The
named person shall have 30 days from
the date of mailing of the prepenalty
notice to make a written presentation to
the Director.
(b) Form and contents of written
presentation. The written presentation
need not be in any particular form, but
shall contain information sufficient to
indicate that it is in response to the
prepenalty notice. It should contain
responses to the allegations in the
prepenalty notice and set forth the
reasons why the person b elieves the
penalty should not be imposed or, if
imposed, w hy it should be in a lesser
amount than proposed.
4. Section 535.704 is added to read as
follows:
§ 535.704

P enalty no tice.

(a) No violation. If, after considering
any presentations made in response to
the prepenalty notice, the Director
determines that there w as no violation
by the person named in the prepenalty
notice, he promptly shall notify the
person in writing of that determination
and that no monetary penalty w ill be
imposed.
(b) Violation. If, after considering any
presentations made in response to the
prepenalty notice, the Director
determines that there w as a violation by
the person named in the prepenalty
notice, he promptly shall issue a written
notice of the imposition of the monetary
penalty to that person.
5. Section 535.705 is added to read as
follows:
§ 535.705 R eferral to U nited S ta te s
D ep artm en t of J u stic e .

In the event that the person named
does not pay the penalty imposed
pursuant to this subpart or make
paym ent arrangements acceptable to the
Director within thirty days of the
mailing of the written notice of the
imposition of the penalty, the matter
shall be referred to the United States
Department of Justice for appropriate
action to recover the penalty in a civil
suit in a Federal district court.
31 CFR Part 540 is am ended as
follows:
PART 540— NICARAGUAN TRADE
CONTROL REGULATIONS
1.
The authority citation for Part 540
continues to read as follows:
Authority: Secs. 201-207, 91 Stat. 1626; 50
U.S.C. 1701-1706; E .0 .12513.

Department of
the Treasury

2. Section 540.703 is added to read as
follows:
§ 540.703

P repenalty notice.

(a) When required. If the Director of
the Office of Foreign A ssets Control
(hereinafter "Director”) has reasonable
cause to believe that there has occurred
a violation of any provision of this part
or a violation of the provisions of any
license, ruling, regulation, order,
direction or instruction issued by or
pursuant to the direction or
authorization of the Secretary of the
Treasury pursuant to this part or
otherwise under the International
Emergency Economic Powers Act, and
the Director determines that further
proceedings are warranted, he shall
issue to the person concerned a notice of
his intent to impose a monetary penalty.
The prepenalty notice shall be issued
whether or not another agency has
taken any action with respect to this
matter.
(b) Contents—(1) Facts of violation.
The prepenalty notice shall: (i)
D escribe the violation.
(ii) Specify the law s and regulations
allegedly violated.
(iii) State the amount of the proposed
monetary penalty.
(2) Right to make presentations. The
prepenalty notice also shall inform the
person of his right to make a written
presentation within thirty (30) days of
mailing of the notice as to w hy a
monetary penalty should not be
imposed, or, if imposed, w hy it should
be in a lesser amount than proposed.
3. Section 540.704 is added to read as
follows:
§ 540.704 P re se n ta tio n resp o n d in g to
p rep en a lty notice.

(a) Time within which to respond. The
named person shall have 30 days from
the date of mailing of the prepenalty
notice to make a written presentation to
the Director.
(b) Form and contents of written
presentation. The written presentation
need not be in any particular form, but
shall contain information sufficient to
indicate that it is in response to the
prepenalty notice. It should contain
responses to the allegations in the
prepenalty notice and set forth the
reasons why the person believes the
penalty should not be im posed or, if
imposed, w hy it should be in a lesser
amount than proposed.
4. Section 540.705 is added to read as
follows:
§ 540.705

P enalty notice.

(a) No violation. If, after considering
any presentations made in response to
the prepenalty notice, the Director

Department of
the Treasury




determines that there w as no violation
by the person named in the prepenalty
notice, he promptly shall notify the
person in writing of that determination
and that no monetary penalty w ill be
imposed.
(b) Violation. If, after considering any
presentations made in response to the
prepenalty notice, the Director
determines that there w as a violation by
the person named in the prepenalty
notice, he promptly shall issue a written
notice of the imposition of the monetary
penalty to that person.
5.
Section 540.706 is added to read as
follows:

The prepenalty notice shall: (i)
D escribe the violation.
(ii) Specify the law s and regulations
allegedly violated.
(iii) State the amount of the proposed
monetary penalty.
(2) Right to make presentations. The
prepenalty notice also shall inform the
person of his right to make a written
presentation within thirty (30) days of
mailing of the notice as to w hy a
monetary penalty should not be
imposed, or, if imposed, w hy it should
be in a lesser amount than proposed.
3. Section 545.703 is added to read as
follows:

§ 540.706 R eferral to U nited S ta te s
D ep artm en t of Ju stice .

§ 545.703 P re se n ta tio n re sp o n d in g to
p rep en a lty no tice.

In the event that the person named
does not pay the penalty im posed
pursuant to this subpart or make
payment arrangements acceptable to the
Director within thirty days of the
mailing of the written notice of the
imposition of the penalty, the matter
shall be referred to the United States
Department of Justice, for appropriate
action to recover the penalty in a civil
suit in a Federal district court.
31 CFR Part 545 is amended as
follows:

(a) Time within which to respond. The
named person shall have 30 days from
the date of mailing of the prepenalty
notice to make a written presentation to
the Director.
(b) Form and contents of written
presentation. The written presentation
need not be in any particular form, but
shall contain information sufficient to
indicate that it is in response to the
prepenalty notice. It should contain
responses to the allegations in the
prepenalty notice and set forth the
reasons w hy the person b elieves the
penalty should not be imposed or, if
imposed, w hy it should be in a lesser
amount than proposed.
4. Section 545.704 is added to read as
follows:

PART 545— SOUTH AFRICAN
TRANSACTIONS REGULATIONS
1. The authority citation for Part 545
continues to read as follows:
Authority: 50 U.S.C. 1701 et seq.; E.O.
12532, 50 FR 36861, Sept. 10,1985; E.O. 12535,
50 FR 40325, October 3, 1985. Pub. L. 99-440,
100 Stat. 1086; Pub. L. 99-631,100 Stat. 3515;
E.O. 12571, 51 FR 39505, Oct. 29,1986.

2. Section 545.702 is added to read as
follows:
§ 545.702

P rep en alty notice.

(a) When required. If the Director of
the Office of Foreign A ssets Control
(hereinafter “Director”) has reasonable
cause to believe that there has occurred
a violation of any provision of this part
or a violation of the provisions of any
license, ruling, regulation, order,
direction or instruction issued by or
pursuant to the direction or
authorization of the Secretary of the
Treasury pursuant to this part or
otherw ise under the Comprehensive
Anti-Apartheid Act of 1986, and the
Director determines that further
proceedings are warranted, he shall
issue to the person concerned a notice of
his intent to impose a monetary penalty.
The prepenalty notice shall be issued
whether or not another agency has
taken any action with respect to this
matter.
(b) Contents—(1) Facts of violation.

A ugust 1988

§ 545.704

Penalty notice.

(a) No violation. If, after considering
any presentations made in response to
the prepenalty notice, the Director
determines that there w as no violation
by the person nam ed in the prepenalty
notice, he promptly shall notify the
person in writing of that determination
and that no monetary penalty w ill be
imposed.
(b) Violation. If, after considering any
presentations made in response to the
prepenalty notice, the Director
determines that there w as a violation by
the person named in the prepenalty
notice, he promptly shall issue a written
notice of the imposition of the monetary
penalty to that person.
5. Section 545.705 is added to read as
follows:
§ 545.705 R eferral to U nited S ta te s
D ep artm en t of J u stic e .

In the event that the person named
does not pay the penalty imposed
pursuant to this subpart or make
payment arrangements acceptable to the
Director within thirty days of the
mailing of the written notice of the
imposition of the penalty, the matter

15

shall be referred to the United States
Department of Justice for appropriate
action to recover the penalty in a civil
suit in a Federal district court.
31 CFR Part 550 is amended as
follows:
PART 550— LIBYAN SANCTIONS
REGULATIONS
1. The authority citation for Part 550
continues to read as follows:
Authority: 50 U.S.C. 1701 et seq:, E.O.
12543, 51 FR 875, January 9,1986; E.O. 12544,
51 FR 1235, Jan. 10,1986.

2. Section 550.703 is added to read as
follows:
§ 550.703

P rep en alty notice.

(a) When required. If the Director of
the Office of Foreign A ssets Control
(hereinafter "Director) has reasonable
cause to believe that there has occurred
a violation of any provision of this part
or a violation of the provisions of any
license, ruling, regulation, order,
direction or instruction issued by or
pursuant to the direction or
authorization of the Secretary of the
Treasury pursuant to this part or
otherwise under the International
Emergency Economic Powers Act, and
the Director determines that further
proceedings are warranted, he shall
issue to the person concerned a notice of
his intent to impose a monetary penalty.
The prepenalty notice shall be issued
whether or not another agency has
taken any action with respect to this
matter.
(b) Contents—(1) Facts of violation.

16




The prepenalty notice shall: (i)
D escribe the violation.
(ii) Specify the law s and regulations
allegedly violated.
(iii) State the amount of the proposed
monetary penalty.
(2) Right to make presentations. The
prepenalty notice also shall inform the
person of his right to make a written
presentation within thirty (30) days of
mailing of the notice as to w hy a
monetary penalty should not be
imposed, or, if imposed, w hy it should
be in a lesser amount than proposed.
3. Section 550.704 is added to read as
follows:
§ 550.704 P re se n ta tio n re sp o n d in g to
p rep en a lty no tice.

(a) Time within which to respond. The
named person shall have 30 days from
the date of mailing of the prepenalty
notice to make a written presentation to
the Director.
(b) Form and contents of written
presentation. The written presentation
need not be in any particular form, but
shall contain information sufficient to
indicate that it is in response to the
prepenalty notice. It should contain
responses to the allegations in the
prepenalty notice and set forth the
reasons w hy the person believes the
penalty should not be im posed or, if
imposed, w hy it should be in a lesser
amount than proposed.
4. Section 550.705 is added to read as
follows:
§ 550.705

P enalty notice.

(a) No violation. If, after considering
any presentations made in response to

A ugust 1988

the prepenalty notice, the Director
determines that there w as no violation
by the person named in the prepenalty
notice, he promptly shall notify the
person in writing of that determination
and that no monetary penalty w ill be
imposed.
(b) Violation. If, after considering any
presentations made in response to the
prepenalty notice, the Director
determ ines that there w as a violation by
the person named in the prepenalty
notice, he promptly shall issue a written
notice of the imposition of the monetary
penalty to that person.
5.
Section 550.706 is added to read as
follows:
§ 550.706 R eferral to U nited S ta te s
D ep artm en t of Ju stice .

In the event that the person named
does not pay the penalty imposed
pursuant to this subpart or make
paym ent arrangements acceptable to the
Director within thirty days of the
mailing of the written notice of the
imposition of the penalty, the matter
shall be referred to the United States
Department of Justice for appropriate
action to recover the penalty in a civil
suit in a Federal district court.
Dated: January 14,1988.
R. Richard Newcomb,

Director, Office o f Foreign Assets Control.
Approved:
John P. Simpson,

Acting Assistant Secretary (Enforcement).
January 26,1988.
[FR Doc. 88-5007 Filed 3-3-88; 2:51 pm]

Department of
the Treasury

Sample Bank Compliance Forms for
Handling Blocked Accounts

APPEN D IX II

TRAMS ACTION ^AUTHORIZATION REQUEST - U.S. TREASURY BLOCKED PROPERTY
t ranwelfuit lHitiataj]
this d ?JU. nt la to be sent to the Legal Department
to determine t l ^ aajp l i c a b illty of any
tha p
eed for a specific
If a specific
_gal'Departfcent wll
agal Department wll
applicatla
is requ
ES
the necessary l i c e n s e v A copy of
prlate author
' e client fecord and attached to
2iErlf;tS'beeaint
n
forward a copy of this request
opy 3i^the~I leans* when received.
th* Business Unit Plin a n c l a f c o n t r o l l e r 7

in*l of
or
2fi?c8ri? II revL
1 icenae

general

m
t

Name of Blocked Property Owneri.
Account Number:___________________
Address on P i l e ) __________________
Country of C l t i z e n s h i p / Incorporation:_____________________________________
T ype of transaction for w h i c h authorisation rsquested

(give details)!.

Naee/Address of parson initiating request and relationship to blocked
property owner: _______________________________________________________________
Person to contact for further deta i l s regarding this
r e q u e s t . jp r o v |d# naa* a n d telsphon* no.)
Prepared by

Date prepared:.

(Account Manager)
1.
3.

T r a n saction authorised by general license?
(V*s/No)------------------ 1 _ -------If t ransaction authorised under a general license, provide:
a)

legal r e f e r e n c e ! ----------------------

b) general licenae no:__________________
3.

If a specific license required to authorise the transaction:
a)

data application filed:_____________

b)

4.

a p p l ication filed w i t h : _____________

c)

date application a p p r o v e d / d e n i e d __________________
Circle appropriate response above and attach copy of license or
other correspondence received froa the U.S. Treasury Departaent

N o tification of approval/denial of authorization request returned to:
N aas of person notified: ______________________________________
Date: ----------------Date prepared:____________________

S i g n a t u r e ____________________________

:k e d p r o p e r t y t r a n s f e r r e d i n
CBtvlncrpropgrtrvr--------1.

Data of Transaction:

3.

Amount of T r a nsfar:-

3.

Account Party:----------------------

4.

Fora of Property previously held:

5.

R e ceived froa:______________________
a)

b
)
6.

If internal transfer, area previously
Banaging p r o p e r t y ----------------------aceived froa
y, naaa o f __
transfer-ln

D isg^si^ion of Property

Oats Prepared:.

Note:

D e p a r tm e n t o f
th e T re a su ry




Prepared By:
(Account Manager)

controlE * o? P&»*n B u a t n * s s * O n i F 1'* ,nd “,nd * copy to th*

August 1988

17

I U.S.
F
INTERNAL TRANSFER OF U.S TREASURY BLOCKED PROPERTY
by unit"transferring propartyT

1.
2.
3.
4.

5.

6.

7.
8.

Date of Transaction:__________
Amount of Transfer:----------Name of Blocked Property Owner:
TRANSFER FROM
a) Area from which
transferred:-------------- —
held:
b) Form in which Blocked Pro
(l.e. DDA, Savings, CD, e
TRANSFER TO;
a) Area to which transferred:--------b) From in which Blocked Property held:
c) Account Number:-------------------Person Requesting Transfer:.----------Reason for Transfer:------------------License under which transaction is authorized:---------- — r
(attach letter from legal department stating th$t transact! on is
authorized under general license or if a specific.license 1s
required, attach copy of license obtained as applicable.)

Date Prepared
Note:

Prepared By:----------------- (Account Manager)

Maintain a gopy in the client file and send a copy to tlje Business
Unit Financial Controller or both transferring ana receiving areas
and to the account manager of the receiving area.

NOTICE OF U.S. TREASURY BLOCKING ORDER
(To be~prepared~at~ttme of initial blocklncr~order)
1.
2.
3.
4.
5.
6.

Blocking Authority: Executive Blocking Order No.-----Date of Blocking:_______________________________________
Name of Blocked Property Owner:------------------------Address on Record:______________________________________
Country of Citizenship/Incorporation:___________________
Description of Block Property:__________________________

7.
8.

Location of Blocked Property:___________________________
Person/Organizational Unit Managing Blocked Property:---

9.

Value of Blocked Property
a. In Local currency
----------------------b. In U.S. Dollar equivalent ----------------------(if local currency not U.S. Dollar)
Date Prepared:--------------- Prepared by:-----------------Account Manager
Note:

18




a permanent copy of this notification myst be maintained in the
corresponding client's file and a copy is to be forwarded to the
Business Unit Financial Controller.

August 1988

D e p a r tm e n t o f
th e T reasu ry

DOCUMENTATION RETENTION REQUIREMENTS
Document Prepared
l- Bl“ k?faidip»?iodic

HaintltjtiggPg&lIgSL
Regulatory Reporting

Financial Controller

Account Manager

2. Tine of Initial
transfer of blocked

Financial Controller

Account Manager
Transferring area
Account Manager
Receiving area

Documents To Be Maintained
Maintain a Blocked Property
Listing, consolidated on a
cQrporate-wide basis fron all
Financial Controllers
Permanent file copy of the
CQnsplidated Blocked Property
Listing (Exhibit 1 appendix A)
for.the Business,Unit, compiled
during the identification phase
of an initial blocking order
Permanent file copy of "Notice
Treasury Blocking Order"
Exhibit.2, Appendix A) i t the
r
respective client file
Copies of internal transfer
documentation (Exhibit 4,
Appendix A) submitted by
Account Managers
Prepare and maintain a copy of
transfer documentation (Exhibit
4, Appendix A) in tpe
respective client file.
Prepare and maintain a copy

Retention Period
Effective period of

Effective period of
block

j££fective period of

Effective period of

|£fective period of

Infective period of

tation
x A)

Legal Departnent

Copies of specific licenses
and/or other memoranda re;
general license? authorizing
transaction(s) m question

Infective period of

Financial Controller

3. Tine,transaction
initiated/approved

Copies of specific licenses
received from the U.S.
Treasury and/or other
memoranda from Legal re: .
general licenses authorizing
transaction(s) in question
Maintain in the respective client
file CQpie? of the Transaction
Authorization Request (Exhibit 3,
Appendix A) sent to Legal
Department
Copies of specific licenses
r e c e i v e d or other ipe iPo r a n d a from
Legal re: applicability of
general licehse

JE£fective period of

Account Manager

4. Time of b^Q^ked
required by th2 U.S.
Treasury

D e p a r tm e n t o f
th e T re asu ry




Regulatory Reporting

Maintain in departmental
files copies of all regulatory
filings required by the U.S.
Treasury

August 1988

Effective period of

Effective period of

Mfective
ock

period of

19

Report Date:
Prepared by:
Reviewed by:

CONSOLIDATED U.S. TREASURY BLOCKED PROPERTY LISTING (INITIAL BLOCKING)

----------------------------------------c n w o t - pugin8«g-gn i t/» u w a ia r y i--------------COUNTRY: e.q. South Vletnae
Account Naee/Addreaa

Account Number

Type of Person
br Entity

Original Blocked Anount
foreign Cty U.S.S
Block Date

Location of Property

Area Managing Property

of Account Manager

TYPE OF BLOCKED PROPERTY: e.g. Demand Deposit
TOTAL DEMAND DEPOSITS - SOUTH VIETNAM
TYPE OP BLOCKED PROPERTY: e.g. Time Deposit
TOTAL TINE DEPOSITS - SOUTH VIETNAM
Ngte: The above summary of blocked property is to be prepared by the
Financial Controller of each Business Unit, and a permanent file copy
is to be maintained in the Financial Controller Blocked Property Control
Files.
Forward a copy to Corporate Controllar/Ragulatory Reporting.

20




August 1988

D e p a r tm e n t o f
th e T re a su ry

A PPENDIX III

Specifically Designated Nationals List

Federal Register

Vol. 51, No. 237
Wednesday, December 10, 1986

This section of the FED ER A L R E G ISTE R
contains regulatory docum ents having
general applicability and legal effect, most
of which are keyed to and codified in
the Code of Federal Regulations, which is
published under 50 titles pursuant to 44
U.S.C. 1510.
The Code of Federal Regulations is sold
by the Superintendent of Documents
Prices of new books are listed in the
first FED ER A L R E G ISTE R issue of each
week.

DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 500 and 515
List of Specially Designated Nationals
A G EN CY: Foreign A ssets Control Office,

Treasury.
ACTION: List of Specially Designated
Nationals.
SUM M ARY: This notice provides a partial
list of persons and firms who are
specially designated nationals under the
Treasury Department’s Foreign A ssets
Control Regulations (31 CFR Part 500),
or the Cuban A ssets Control Regulations
(31 CFR Part 515).
A D DRESS: Copies of the list of specially
designated nationals are available upon
request at the following location: Office
of Foreign A ssets Control, 1331 G Street,
NW„ Room 400, W ashington, DC 20220.
FOR FURTHER INFORM ATION CONTACT:

Richard Hollas, Chief, Enforcement
Section of the Office of Foreign A ssets
Control, telephone 202-376-0400.
SU P P LE M E N T A R Y INFORMATION: Under
the Cuban A ssets Control Regulations
and the Foreign A ssets Control
Regulations, persons subject to the
jurisdiction of the United States are
prohibited from engaging, directly or
indirectly, in transactions with any
nationals or specially designated
nationals of Cambodia, Cuba, North
Korea, or Vietman, except as authorized
by the Treasury Department's Office of
Foreign A ssets Control, by means of a
general or specific license.
Sections 500.302 and 515.302 of Part
500 and Part 515, respectively, define the
term "national,” in part, as (a) a subject
or citizen dom iciled in a particular
country, or (b) any partnership,
association, corporation, or other
organization ow ned or controlled by
nationals of that country, or that is

D e p a r tm e n t o f
th e T re asu ry




organized under the law s of, or that has
had its principal place of business in
that foreign country since the applicable
effective date, or (c) any person that has
directly or indirectly acted for the
benefit or on behalf of any designated
foreign country. Sections 500.305 and
515.305 define the term “designated
national” as any country or national
thereof designated pursuant to Parts 500
or 515, including any person w ho is a
specially designated national. Sections
500.306 and 515.306 define "specially
designated national,” as any person who
has been designated as such by the
Secretary of the Treasury; any person
who, on or since the applicable effective
date, has either acted for or on behalf of
the government of, or authorities
exercising control over, any designated
foreign country; or any partnership,
association, corporation or other
organization that, on or since the
applicable effective date, has been
ow ned or controlled directly or
indirectly by such government or
authorities, or by any specially
designated national. The following list
of specially designated nationals is a
partial one since the Department of the
Treasury may not be aware of all the
persons located outside Cambodia,
Cuba, North Korea, or Vietnam that
might be acting as agents or front
organizations for these countries, thus
qualifying as specially designated
nationals of these countries. Also,
nam es may have been omitted because
it seem ed unlikely that those persons
would engage in transactions with
persons subject to the jurisdiction of the
United States. Therefore, persons
engaging in transactions with foreign
nationals may not rely on the fact that
any particular foreign national is not on
the list as evidence that it is not a
specially designated national. The
Treasury Department regards it as
incumbent upon all U.S. persons
engaging in transactions with foreign
nationals to take reasonable steps to
ascertain for them selves whether such
foreign nationals are specially
designated nationals of Cambodia,
Cuba, North Korea, or Vietnam.
Please take notice that section 16 of
the Trading With the Enemy Act ("the
A ct”), as amended, provides in part that
w hoever willfully violates any provision
of the Act or any license, rule or
regulation issued thereunder:

August 1988

“Shall, upon conviction, be fined not more
than $50,000, or, if a natural person,
imprisoned for not more than ten years, or
both; and the officer, director, or agent of any
corporation who knowingly participates in
such violation shall be punished by a like
fine, imprisonment, or both, and any
property, funds, securities, papers, or other
articles or documents, or any vessel, together
with her tackle, apparel, furniture, and
equipment, concerned in such violation shall
be forfeited to the United States."
In addition, persons convicted of an
offense under the Act may be fined a
greater amount than set forth in the Act,
as provided in 18 U.S.C. 3623.
A uthority: 50 U.S.C . App. 5(b) and 18 U.S.C.

3623.

Specially Designated Nationals of Cuba
Abastecadora N aval Y Industrial, S.A.
(a /k /a A nainsa), Panama (address
unknown)
Abdelnur, Nury De Jesus, Panama
(address unknown)
Aerocaribbean Airlines (a /k /a AeroCaribbean), Cancun, M exico (address
unknown)
Aero Cozumel, Cozumel, M exico
(address unknown)
A erotaxi Ejecutivo, S.A., Managua,
Nicaragua
Agencia de Viajes Guama (a /k /a Viajes
Guama Tours, Guamatur, S.A. and
Guama Tour), Bar Harbour Shopping
Center, Via Italia, Panama City,
Panama
Alfonso, Carlos, (a /k /a Carlos Alfonso
Gonzalez), Panama (address
unknown)
Aloardi, Carlo Giovanni, Milan, Italy
(address unknown)
Alvarez, Manuel (Aguirre), Panama
(address unknown)
‘ American Air W ays Charters, Inc., 1840
W est 49th St., Hialeah, Florida
A nainsa (a /k /a Abastecadora N aval Y
Industrial, S.A.) Panama (address
unknown)
Angelini, Alejandro Abood, Panama
(address unknown)
Anglo-Caribbean Shipping Co., Ltd.
(trading as Avia Import), Ibex House,
the Minories, London EC 3N 1 DY,
England
Avalon, S.A., Colon Free Zone, Panama
(address unknown)
Azrak, S.A., Panama (address unknown)
Azrak, Victor, Panama (address
unknown)
Batista, Miguel, Panama (address
unknown)

21

Belmex Import Export Co., Ltd., 24
Comer Regent and Kings Streets,
Belize City, Belize
Bewell Corporation, Inc., Panama
(address unknown)
Boileau, Pierre— 1078 Rue Champigny,
Duvernay, Quebec, Canada
Boutique La Maison, 42 Via Brasil,
Panama City, Panama
Burgan International, Kuwait (address
unknown)
Caballero, Roger M ontanes (a /k /a
Roger M ontanes and Roger Edward
Dooley), Panama (address unknown)
Caribbean Happy Lines (a /k /a
Caribbean Happy Lines Shipping Co.)
Panama (address unknown)
Carisub, S.A., Panama (address
unknown)
Casa Del Respuesto, Panama City,
Panama (address unknown)
Castell, Osvaldo Antonio (Valdez)
Panama (address unknown)
Cecoex, S.A., Panama City, Panama
(address unknown)
Chamet Import S.A., Panama (address
unknown)
Cimeco, SRL, Milan, Italy (address
unknown)
Cimex, S.A. Panama (address unknown)
Cimex Iberica, Spain (address unknown)
Coll, Gabriel (Prado), Panama (address
unknown)
Colon, Eduardo, (Betancourt) Panama
(address unknown)
Colony Trading, S.A., Panama (address
unknown)
Comei, SPA (a /k /a Compagnia
Mercantile Intem azionale Milan Italy
(address unknown)
Comercial Cimex, S.A., Panama
(address unknown)
Comercial de Rodajes Y Maquinaria,
S.A., (a /k /a Crymsa) Jose Lazaro
Galdeano 6-6, 28016 Madrid, Spain
Comercial Murallq, S.A. (a /k /a Muralla,
S.A.) Panama City, Panama
Compagnia M ercantile Intemazionale
(a /k /a Comei SPA) Milan, Italy
(address unknown)
Compania Fenix Intemacional, S.A.,
Caracas, Venezuela (address
unknown)
Compania Pesquera Intemacional, S.A.,
Panama (address unknown)
Contex, S.A., Panama (address
unknown)
Contreras, Miria (a /k /a Miria Contreras
Repert), Paris, France (address
unknown)
Coprova (a /k /a Coprova Sari and
Comercialization De Productos
Varios), Paris, France (address
unknown)
Corporacion Cimex, S.A., Panama
(address unknown)
Cotei, Milan, Italy (address unknown)
Cruz, Antonio Pedro (Reyes), Milan,
Italy (address unknown)

22




Crymsa (a /k /a Comercial de Rodajes Y
Maquinaria, S.A.), Jose Lazaro
Galdeano 6-6, 28016 Madrid, Spain
Crymsa— Argentina, S.A., Buenos Aires,
Argentina, (address unknown)
Cuenca, Ramon Cesar, Panama (address
unknown)
CUFLET (a /k /a La Empresa Cubana de
Fletes (The Cuban Freight Enterprise):
Buenos Aires, Argentina; Varna,
Bulgaria; Montreal, Canada; Rostock,
German Democratic Republic; Genoa,
Italy; Pyongyang, Korea (Peoples
Democratic Republic); Rotterdam,
Netherlands; Syczecin, Poland;
M oscow, Soviet Union; Barcelona,
Spain
Cumexint, S.A., 1649 Adolfo Prieto,
Colonia del Valle, M exico City,
M exico
Delgado, Antonio (Aresnio) Panama
(address unknown)
D elvest Holding, S.A. (a /k /a D elvest
Holding Company), Case Postale 236,
10 Bis Rue Du V ieux College 12-11,
Geneva, Switzerland
Deprosa, S.A. (a /k /a Desarrollo De
Proyectos, S.A.) Panama City, Panama
(address unknown)
Desarrollo Industrial Cubano Espanol,
S.A. (a /k /a Dicesa), Paseo De La
Castellana 157, Madrid, Spain, and
Jose Lazaro Caldeano 6-6, 28016
Madrid, Spain
Desarrollo De Proyectos, S.A. (a /k /a
Deprosa, S.A.) Panama City, Panama
(address unknown)
Diaz, Rolando (Gonzalez), Frankfurt,
W est Germany (address unknown)
Dicesa (a /k /a Desarrollo Industrial
Cubano Espanol, S.A.) Paseo De La
Castellana 157, Madrid Spain and Jose
Lazaro Caldeano 6-6, 28016, Madrid
Spain
Dooley, Michael P., Panama, (address
unknown)
Dooley, Roger Edward, (a /k /a Roger
M ontanes Caballero and Roger
M ontanes), Panama (address
unknown)
Echeverri, German, Panama (address
unknown)
ETCO International Commodities Ltd.,
Devonshire House, 1 Devonshire St.,
London, England
ETCO International Company, Limited,
Kawabe Building, 1-5 Kanda NishikiCho, Chiyoda-Ku, Tokyo, Japan
Exportadora Del Caribe (Medira,
M exico, address unknown)
Fabro Investment, Inc., Panama (address
unknown)
Famesa International, S.A., Panama
(address unknown)
Fuentes, Fernando (Coba), Cozumel,
M exico (address unknown)
Galax Inc., (a /k /a Galax Trading Co.,
Ltd.), 5250 Ferrier St., Montreal,
Quebec

Garcia Santamarina de la Torre, Alfredo
Rafael. Panama (address unknown)
see also ‘‘Santamarina”
Gemex A ussenhandels GmbH, Hanauer
Landstr. 126-128, D-6000 Frankfurt,
Main 1
Gonzalez, Carlos Alfonso, (a /k /a Carlo
A lfonso), Panama, (address unknown)
Guama Tour (a /k /a Agencia de Viajes
Guama, Viajes Guama Tours and
Guamatur, S.A.), Bar Harbour
Shopping Center, Via Italia, Panama
City, Panama
Guamatur, S.A. (a /k /a Agencia de
Viajes Guama, Viajes Guama Tours
and Guama Tour), Bar Harbour
Shopping Center, Via Italia, Panama
City, Panama
’ Havanatur, S.A. Hialeah, Florida
Havanatur, S.A., Panama City, Panama
Havanatur, 54 Rue Richelieu, Paris
France
Havinpex, S.A. (a /k /a Transover, S.A.)
Panama City, Panama
Haya, Francisco, Panama (address
unknown)
Hernandez, A lexis Eneilo (Carballosa),
Milan, Italy (address unknown)
Imprisa, S.A., Panama, (address
unknown)
International Transport Corporation,
Colon Free Zone, Panama
Inversiones Lupamar, S.A., (a /k /a The
Lupamar Investment Company,
Panama (address unknown)
Jiminez, Gillermo (Soler) Panama
(address unknown)
Kol Investments, Inc., Miami, Florida
(address unknown)
Kyoei International Company, Limited,
Tokyo, Japan (address unknown)
La Empresa Cubana de Fletes a /k /a
CUFLET (The Cuban Freight
Enterprise): Buenos Aires, Argentina;
Varna, Bulgaria; Montreal, Canada;
Rostock, German Democratic
Republic; Geno, Italy; Pyongyang,
Korea (Peoples Democratic Republic);
Rotterdam, Netherlands; Syczecin,
Poland; M oscow, Soviet Union;
Barcelona, Spain
Leverage, S.A., San Martin 323, Piso 14,
Buenos Aires, Argentina
Leybda Corporation, S.A., Panama
(address unknown)
Louth Holdings, S.A., Panama (address
unknown)
Madan, Jorge (Rivas) Frankfurt, W est
Germany (address unknown)
Marisco (or M ariscos) de Farallon, S.A.
Panama (address unknown)
Marketing A ssociates Corporation, Calle
52 E, Campo Alegre Panama City,
Panama
Medina, Anita (a /k /a Ana Maria
Medina), Panama (address unknown)

D e p a r tm e n t o f
th e T re asu ry

August 1988

Mercurius Import/Export Company,
Panama, S.A., Calle C, Edificio 18, Box
4048, Colon Free Zone. Panama
Mitsukura Boeki-Kaisha, Ltd (a /k /a
Mitsukura Trading Company Limited),
4-1-13 Hachiman-dori, Chuo-Ku Kobe,
]apan
Mitsukura Corporation, 4-1-13
Hachiman-dori, Chuo-Ku Kobe, Japan
Mitsukura Trading Company, Limited,
(a /k /a Mitsukura Boeki-Kaisha, Ltd),
4-1-13 Hachiman-dori, Chuo-Ku Kobe,
Japan
Monet Trading Company, Panama
(address unknown)
Montanes, Roger, (a /k /a Roger
M ontanes Caballero and Roger
Edward Dooley), Panama (address
unknown)
Montanez, Michael, Panama (address
unknown)
M oonex International, S.A., Kingston,
Jamaica
M oonex International, S.A., Panama
(address unknown)
Muralla, S.A. (a /k /a Comercial Muralla,
S.A.) Panama City, Panama
Navarro, Samuel (Martinez), Frankfurt,
W est Germany (address unknown)
Nippon-Caribbean Shipping Co., Ltd.
Chuo-Ku, Akasaki-Chuo 1-1 Akasaki
Bldg., Tokyo
Nordstrand Ltd., Liechtenstein (address
unknown)
Nordstrand Maritime and Trading
Company, 33 Akti Maouli, 185-35
Pireas (Piraeus). Greece
October Holding Company, (a /k /a
Octubre Holding Societe Anonime)
Vaduz, Liechtenstein
Ors, Jose Antonio Rego, Tokyo, Japan
(address unknown)
Ortega, Dario, Panama (address
unknown)
Ortega, Dario (Pina) Edificio Saldivar,
Panama City, Panama
Padron, Amado (Trujillo), Panama
(address unknown)
Panamerican Import and Export
Commercial Corporation, Panama
(address unknown)
Panoamericana, Panama, (address
unknown)
Pena, Jose (Torres). Panama (address
unknown)
Pena, Victor. Panama (address
unknown)
Perez, Alfonso, Panama (address
unknown)
Perez, Manuel Martin, Panama (address
unknown)
Perez, O svaldo (Cruz), Panama (address
unknown)
Pescados Y M ariscos de Panama (a /k /a
Pesmar (or Pezmar) S.A., Panama
City, Panama (address unknown)
Pewsmar (or Pezmar) S.A. (a /k /a
Pescados y M ariscos de Panama),

D e p a r tm e n t o f
th e T re asu ry




Panama City, Panama (address
unknown)
Ponce de Leon, Lazaro (Gomez), Medira,
M exico (address unknown)
Prado, Julio (a /k /a Julio Lobato) Panama
(address unknown)
Presa, S.A. Panama (address unknown)
Presna Latina Canada Ltd., 1010 O Rue
Ste. Catherine, Montreal PQ H303 IGI,
Canada
Prima Export/Import, Jamaica (address
unknown)
Promotora Andina, S.A. Quito, Ecuador
Quiminter Ges.M.Bh, Vienna, Austria
Radio Service, S.A., Panama (address
unknown)
Reciclaje Industrial, S.A. Panama
(address unknown)
Rent-A-Car, S.A., Panama (address
unknown) Panama (address unknown)
Reyes, Guillermo (Vergara), Panama
City, Panama
Rocha, Antonio, Panama City, Panama
(address unknown)
Rodriguez, Jesus (Borges or Borjes)
Panama (address unknown)
Romeo, Charles (a /k /a Charles Henri
Robert Romeo), Panama (address
unknown)
Roque, Roberto (Perez), Panama
(address unknown)
Ruiz, Ramon Miguel (Poo), Panama
(address unknown)
Santamarina. de la Torre Rafael Garcia.
Panama, (address unknown)— see
also "Garcia"
Servimpex, S.A., Panama (address
unknown)
Servinaves, S.A., Panama (address
unknown)
Siboney Internacional, S.A. Edificio
Balmoral, 82 Via Argentina, Panama
City, Panama
Siboney Internacional, S.A., V enezuela
(address unknown)
Societa Commercia Minerali E Metalli,
SRL (a /k /a SOCOMET, SPA) Milan,
Italy (address unknown)
Socomet, SPA (a /k /a Societa
Commercia Minerali E Metalli, SRL
Milan, Italy (address unknown)
Stern, Alfred Kaufman (last known
address Prague, Czechoslovakia,
street address unknown)
Suplidora Latino Americana, S.A. (a /k /a
Suplilat, S.A.) Panama City, Panama
(address unknown)
Suplilat, S.A., (a /k /a Suplidora Latino
Americana S.A.) Panama City,
Panama (address unknown)
Taller De Reparaciones N avales S.A. (a/
k /a Tarena), Panama (address
unknown)
Tarena, S.A. (a /k /a Taller De
Repraciones N avales S.A.), Panama
(address unknown)
Technic Digemex Corp., Calle 34 No. 4 50, Office 301 Panama City, Panama

August 1988

Technic-Holding, Inc., Calle 34 No. 4-50,
Office 301 Panama City, Panama
Tosco, Arnaldo (Garcia), Panama
(address unknown)
Transover, S.A. (a /k /a Havinpex, S.A.)
Panama City, Panama
* Travel Services, Inc., Hialeah, Florida
Treviso Trading Corporation, Edificio
Banco de Boston, Panama City,
Panama
Trober, S.A. (a /k /a Trover, S.A.)
Edificio Saldivar Panama City,
Panama
Tropic Tours Gmbh (a /k /a Tropicana
Tours Gmbh) Lietzenburger Strasse
51, W est Berlin
Vasquez, Oscar D. (a /k /a Vazques,
Oscar D.) Panama (address unknown)
Viacon International, Inc. Apartment 7B
Torre Mar Building, Punta Paitilla
Area, Panama City, Panama, and
France Field, Colon Free Zone,
Panama
Viages Guama Tours (a /k /a Guamatur,
S.A., Guama Tour and Agencia de
Viajes Guama) Bar Harbour Shopping
Center, Via Italia, Panama City,
Panama
Vinales Tour, M exico City, Cancun,
Monterey, and Guadalajara, M exico
(Street addresses unknown)
Wittgreen, Carlos (a /k /a Carlos
Wittgreen Antinori, Carlos Antonio
Wittgreen A„ and Carlos Antonio
Wittgreen), Panama, (address
unknown)
Yam, Melvia Isabel Gallegos, Merida,
M exico (address unknown)
Yamaru Trading Co., Ltd., Tokyo, Japan
(address unknown)

Designated Nationals of Camodia
Ren Fung Co., Ltd., 242 Des Veoux Road,
Central 8/F, Hong Kong

Designated Nationals of North Korea
(None Listed.)

Designated Nationals of Vietnam
(None Listed.)
* Asterisk denotes that firm is no longer
operational in the United States.
Note: —The name of an individual, which
appears in parenthesis, is the matronymic
name and may be used by the individual as
the second part of a compound last name.
Dated: November 19,1986.
Cheryl A. Opacinch,
Acting Director, Office o f Foreign Assets
Control.
Approved: November 19,1986.
Francis A. Keating,

Assistant Secretary (Enforcement).
(FR Doc. 86-27830 Filed 12-8-86; 3:31 pm)

23

APPEN D IX IV

South African Parastatals List

DEPARTMENT OF STATE
[Public N otice 1007]

South African Parastatal Organizations
A G EN CY: Department of State.
a c t io n :

Notice.

SU M M A RY : A revised notice is given of

which corporations, partnerships, and
entities are deemed to be “parastatal
organizations” for purposes of the
Comprehensive Anti-Apartheid Act of
October 2,1986 (Pub. L. 99-140).
EFFECTIV E DATE: March 27,1987.
FOR FURTHER INFORM ATION CO NTACT:

Eric Benjaminson, Office of Southern
African Affairs (202) 647-8433, or Lynda
Clarizio, Office of the Legal Adviser
(202) 647-4110.
SU P P LE M E N T A R Y INFORMATION: Section
303(a) of the Comprehensive AntiApartheid Act of 1986 (Pub. L. 99—
140),
as amended, provides that no article
which is grown, produced, manufactured
by, marketed, or otherwise exported by
a parastatal organization of South
Africa may be imported into the United
States, with certain limited exceptions.
Section 314 of the Act prohibits U.S.
Government procurement from
parastatal organizations, except for
items necessary for diplomatic and
consular purposes.
Section 303(b) of the Act states that
the term “parastatal organization”
means a corporation, partnership, or
entity owned, controlled, or subsidized
by the Government of South Africa, but
does not mean a corporation,
partnership, or entity which previously
received start-up assistance from the
South African Industrial Development
Corporation but which is now privately
owned. Regulations have been
promulgated by the Department of the
Treasury to implement section 303
(South African Transactions
Regulations, 31 CFR Part 545, published
on November 19,1986, 51 FR 41906).
Executive Order No. 12571 of October
27,1986 provides that the Secretary of
State is responsible for determining
which corporations, partnerships, or
entities are parastatal organizations
within the meaning of the Act. Pursuant
to section 2 of the Executive Order, the
Department of State published on
November 19,1986 a public notice
identifying 167 firms as "parastatal
organizations" within the meaning of the
Act (Public N otice 983, 51 FR 41912).
A s the notice indicated, this list of
parastatal organizations w as not allinclusive. The list w as based on
information then available to the U.S.
Government. The Department of State
intends periodically to revise and

24




update the list. Before making a
commitment to import from South
Africa, importers may wish to seek
guidance from the Office of Southern
African Affairs (AF/S), Department of
State, W ashington, DC 20520 (202-6478433) to ascertain whether a
corporation, partnership, or entity has
been identified as a parastatal
organization.
This notice contains a revised list of
parastatal organizations for purposes of
the Act. Inaccuracies in the nam es of
firms identified in the November 19,
1986 notice have been corrected. In
addition, seventy-six firms that did not
appear on the November 19,1986 list
have now been identified as parastatal
organizations. These additions provide
information on the subsidiaries of
previously-listed parastatals and are
based on other information that has
becom e available to the Department of
State since the publication of the
original list.
Thirteen firms identified as parastatal
organizations in the November 19,1986
notice have been removed from the list.
One of these firms, the Fisheries
Developm ent Corp. of South Africa, has
been liquidated. Another, the South
African Dried Bean Board, has been
merged into the South African Potato
Board (now called the Potato, Dried
Bean & Grain Sorghum Board). The
remaining eleven firms have been
removed from the list on the basis of
information submitted in requests to
reconsider their classification as
parastatal organizations. Such requests
were made in accordance with the
procedures set forth in the November 19,
1986 notice, which provided that any
person believing that a firm should be
included or excluded from the list of
parastatal organizations could make a
request in writing that the Department
of State review the particular case.
Requests were submitted to the
Department to review the status of
seventeen firms identified as parastatal
organizations in the November 19, 1986
list. On December 23, 1986 (51 FR 45981)
and February 5,1987 (52 FR 3731), the
Department published two public
notices inviting interested persons to
submit any written comments relevant
to the Department's review of the status
of these firms. No comments were
received.
The Department determined that the
subm issions made on behalf of the
following six firms failed to establish
that these firms were not owned,
controlled, or subsidized by the South
African Government: Bophuthatswana
National Development Corp.; Council for
Scientific and Industrial Research: Putco
Ltd.; Rand Water Board; South Africa

August 1988

W ool Board; and South W est African
Broadcasting Corp. These firms continue
to be identified as parastatal
organizations.
Note.—Rand Water Board is included
under the heading of "Water Boards” on the
revised list.

The Department determined that the
subm issions made on behalf of the
following eleven firms established that
these firms were not owned, controlled,
or subsidized by the South African
Government and thus should not be
identified as parastatal organizations:
[KJAlein Karoo Landboukooperasie,
Ltd.; Andromeda Electronic Systems
(Pty) Ltd.; Computer Technology (Pty)
Ltd. (Comtec); Cooperative Wine
Growers (KWV); M ercedes Datakor
(Pty) Ltd.; Sasol Ltd. (and subsidiaries);
Siem ens Ltd.; South Africa Sugar
Association; Thames Wire and Cable
(Pty) Ltd.; Tecnetics (Pty) Ltd.; and
Transvaal Copper Rod Co. Ltd. These
firms have been removed from the list of
parastatal organizations. Sasol Ltd. is
rem oved from the list with the
understanding that information w ill be
provided to the Department of State
every six months on the firm’s behalf as
to whether Sasol Ltd. has received
during that period a fuel levy rebate
such as one certain Sasol Ltd.
subsidiaries received prior to January
1985 so that the Department could
determine whether any such payment
constitutes a subsidy under the Act.
Sasol Three (Pty) Ltd. remains on the
list.
The Department of State w ill continue
to accept requests to reconsider the
classification of particular firms as
parastatal organizations. Requests made
on behalf of those firms originally
identified on the November 19,1986 list
must be made within one month of the
date of publication of this notice.
Requests made on behalf of all other
firms identified on the list below must
be made within three months of this
date. The Department of State w ill
attempt to provide a response to all
requests at the end of this three-month
period.
All requests must be submitted in
writing. The Department of State may
invoke the authorities set forth in
section 603(a) of the Act in reviewing
submissions. Any submission should
contain detailed information as to the
stock ownership and composition of the
board of directors of the particular firm,
as w ell as the amount of any financial
assistance received by such firm on
preferential terms from the South
African Government. Any person who
willfully makes a false or misleading

D e p a r tm e n t o f
th e T re asu ry

statement in such a submission will be
subject to the civil and criminal
penalties set forth in section 603 (b) and
(c) of the Act and 18 U.S.C. 1001.
The Department of State w ishes to
make the following clarification
concerning the list of parastatal
organizations. Placement of a firm on
the list is based solely on an economic
judgment as to the degree of South
African Government ownership, control,
or subsidization of the firm. The list is
not intended to be used in any way
except to prohibit importation into the
U.S. of articles grown, produced,
manufactured by, marketed, or
otherwise exported by firms identified
on the list and to prohibit U.S.
Government procurement from such
firms.
The list of parastatal organizations
below contains the heading of
“Government of the Republic of South
Africa.” It is the intention of the
Department of State that this heading
include entities which are part of the
Government of South Africa. Such
entities are generally view ed as
parastatal organizations within the
meaning of the Act.
This notice involves a foreign affairs
function of the United States. It is
excluded from the procedures of 5 U.S.C.
553 and 554 and Executive Order 12291.
It implements a statutory requirement
that entered into force on October 2,
1986, and section 2 of Executive Order
12571.
In accordance with these authorities,
the following have been identified as
South African parastatal organizations:
Agricultural Control Boards
Banana Board
Canning Fruit Board
Chicory Board
Citrus Board
Cotton Board
Dairy Board
Deciduous Fruit Board
Dried Fruit Board
Egg Board
Lucerne Seed Board
Maize Board
Meat Board
Mohair Board
Oilseeds Board
Potato. Dried Bean & Grain Sorghum Board
Rooisbos Tea Board
South African Karakul Board
South West African Karakul Board
(Namibia)
Tobacco Board
Wheat Board
Wool Board
Agricultural Corp. of Venda
Agricultural Development Corp. of
Bophuthatswana
Altana (Pty) Ltd.
Aluminum Investment Co. (Pty) Ltd.
Aluminum Co. of South Africa (Pty) Ltd.
(Alusaf)

D e p a r tm e n t o f
th e T re asu ry




Alustang (Pty) Ltd.
Richigata (Pty) Ltd.
Alzira Financial (Pty) Ltd.
Armaments Corp. of South Africa (Pty) Ltd.
(Armscor)
Atlas Aircraft Ltd.
Eloptro (Pty) Ltd.
Emani Property (Pty) Ltd.
Infloplan Ltd.
Kentron (Pty) Ltd.
Konchem (Pty) Ltd.
Lyttleton Engineering Works Ltd.
Musgrove (Pty) Ltd.
Naschem (Pty) Ltd.
Pretoria Metal Pressings (Pty) Ltd.
Sonchem (Pty) Ltd.
Swartklip Products (Pty) Ltd.
Atlantis Diesel Engines (Pty) Ltd.
ADE Behuisings (Pty) Ltd.
Adepart (Pty) Ltd.
Atlantis Aluminum (Pty) Ltd.
Atlantis Foundries (Pty) Ltd.
Finasco (Pty) Ltd.
Atomic Energy Corp. of South Africa Ltd.
Bophuthatswana National Development
Corp.
Bophuthatswana Transport Holdings
Fish Hoek Hotel (Pty) Ltd.
Mankue Enterprises (Pty) Ltd.
Heystekrand Furniture Factory (Pty) Ltd.
T.A.B. Bophuthatswana
Central Energy Fund (Pty) Ltd.
Ciskei Agricultural Corp.
Tainton Pineapple Estate
Ciskei People's Development Bank
CTC Bus Company
Indwe Commercial Enterprises (Pty) Ltd.
Ciskei Small Business Corp.
Commission for Fresh Produce Markets
Community Development Fund
Corporation for Public Deposits
Council for Mineral Technology (MINTEK)
Council for Scientific and Industrial Research
South African Inventions Development
Corp.
Department of Posts and
Telecommunications
Deposit Fund for Housing
Development Bank of Southern Africa
Duntex Property (Pty) Ltd.
ESCOM (formerly Electricity Supply
Commission)
Export Finance Development Corp.
First National Development Corp. of South
West Africa
Melkor (Pty) Ltd.
Okatana Vulstasie (Pty) Ltd.
Windhoek Wild (Pty) Ltd.
Government Motor Transport and Trading
Account
Government of the Republic of South Africa
Government Printing Works
Guardians' Funds
Hooggenoeg Marketing (Pty) Ltd.
Human Sciences Research Council
Industrial Development Corp. of South Africa
Ltd. (IDC)
Industrial Selections
Konoil (Pty) Ltd.
National Selections
Industrial Minerals Development Co. (Pty)
Ltd.
International Karakul Secretariat
KaNgwane Economic Development Corp. Ltd.
Kindoc Investments (Pty) Ltd.
Konbel (Pty) Ltd.

August 1988

KwaNdebele Development Corp. Ltd.
KwaZulu Finance and Investment Corp. Ltd.
Bambisanani Nongoma (Pty) Ltd.
Intaba Motors Ltd.
Isithebe Malt Factory (Pty) Ltd.
KwaZulu Finance (Pty) Ltd.
KwaZulu Garment Industries Ltd.
KwaZulu Housing Company (Pty) Ltd.
KwaZulu News Agency Ltd.
KwaZulu Truck and Bus Ltd.
Zululand Furniture Factory (Pty) Ltd.
Land and Agricultural Bank of South Africa
(Landbank)
Land and Agricultural Bank of South West
Africa
Lebowa Development Corp. Ltd.
Dilokong Chrome Mine (Pty) Ltd.
Lebowa Transport Company
Light Metals Investment Co. (Pty) Ltd.
Marmain (Pty) Ltd.
Mavaco (Pty) Ltd.
Motor Vehicle Assurance Fund
Nabucco Investments (Pty) Ltd.
National Building and Investment Corp.
(South West Africa)
National Marketing Board
National Parks Board of Trustees
National Road Fund
National Supplies Procurement Fund
Navik (Pty) Ltd.
Oostra Inmakers (Pty) Ltd. (Eastern Packers)
Phosphate Development Corp. (Pty) Ltd.
(Foskor)
Foskem (Pty) Ltd.
Palafos (Pty) Ltd.
Post Office Savings Bank
Public Investment Commissioners
Putco Ltd.
African Body and Coach (Pty) Ltd.
Crown Body and Coach (Pty) Ltd.
Dubigeon Plastics SA (Pty) Ltd.
Voms (Pty) Ltd.
Voms Parts (Pty) Ltd.
QwaQwa Agricultural Co. Ltd.
QwaQwa Development Corp. Ltd.
Rehoboth Finance and Development Corp.
Ltd.
Reinsurance Fund for Export Credit and
Foreign Investment
Regional Water Service Corporations
Rosamond Properties (Pty) Ltd.
Rustenberg Industrial Finance (Pty) Ltd
Saldok (Pty) Ltd.
Sapekoe (Pty) Ltd.
Sapekoe Ngome Landgoed (Pty) Ltd.
Sapekoe Richmond Landgoed (Pty) Ltd.
Sapekoe Sales (Pty) Ltd.
Sasol Three (Pty) Ltd.
Satchem (Pty) Ltd.
Shangaan/Tsonga Development Corp. Ltd.
Fumani Gold Mining Co. (Pty) Ltd.
Small Business Development Corp.
South African Abattoir Corp.
South African Abattoir Commission
South African Banknote Co. (Pty) Ltd.
South African Broadcasting Corp. (SABC)
South African Bureau of Standards (SABS)
South African Development Trust
South African Development Trust Corp. Ltd.
South African Gas Distribution Corp. Ltd
South Africa Iron and Steel Industrial Corp.
(ISCOR)
Cape Town Iron and Steel Works (Pty) Ltd.
Coastal Coal (Pty) Ltd.
Dalestone (Pty) Ltd.

25

Donkerhoek Quartzite (Pty) Ltd.
Dunswart Iron and Steel Works Ltd.
The Durban Navigation Colleries (Pty) Ltd.
Grootageluk Coal Mine Construction Co.
(Pty) Ltd.
Heckett SA (Pty) Ltd.
Holbane Collery
1 Stores (Pty) Ltd.
ImcorTim (Pty) Ltd. (Namibia)
Imcor Zinc (Pty) Ltd. (Namibia)
lscor Berlin (Pty) Ltd.
Iscor Utility Stores (Pty) Ltd.
Minsa (Pty) Ltd.
Pietersburg Iron Co. (Pty) Ltd.
Steel Sales Co. of Africa
Suprachem (Pty) Ltd.
Tshikondeni Mining Co. (Pty) Ltd.
Vantin (Pty) Ltd.
Vryheid (Natal) Railway Coal and Iron Co.
Yskor Landgoed (Pty) Ltd.
Yskor Newcastle Grondesit Ltd.
South African Medical Research Council
South African Mint
Gold Reef City Mint
South African Reserve Bank
South African Tourism Board
South African Transport Services
South African Airways

South African Harbours
South African Pipeline
South African Railways
South African Road Motor Transport
Services
South Atlantic Cable Co. (Pty) Ltd.
Southern Oil Exploration Corp. (Pty) Ltd.
Southern Oil Exploration Corp. (South West
Africa) (Pty) Ltd.
South West African Broadcasting Corp.
South West African Water and Electricity
Corp. (Pty) Ltd.
State Alluvial Diggings
State Trust Board
Tollgate Holdings Ltd.
Atlantis Bus Services Ltd.
Boland Passenger Transport Ltd.
Cape Tramways (Pty) Ltd.
Golden Arrow Bus Service Ltd.
Springbok Atlas Safaris (Pty) Ltd.
Transkei Broadcasting Corp.
Transkei Development Corp. Ltd.
Albron Foundarv (Pty) Ltd.
Tribal Levies and Trust Account
Tusitala (Pty) Ltd.
Union Steel Corporation of South Africa Ltd.
(Usco)
Avon Wire (Pty) Ltd.

Hall and Pickles (Coastal) (Pty) Ltd.
National Materials Service Corp. (Pty)
Usco Aluminum Corp. (Pty) Ltd.
Usco Aluminum Systems (Pty) Ltd.
Usco Huiseienaars (Pty) Ltd.
Usco Kabelmaatskappy (Pty) Ltd.
Veldmaster (Pty) Ltd.
Veldmaster Incorporated (U.S.)
United Passenger Transport Investments
(Pty) Ltd.
Urban Transport Fund
Venda Development Corp. Ltd.
Aidec Venda (Pty) Ltd.
N.T.K. Venda (Pty) Ltd.
Thusani Stone Crushers (Pty) Ltd.
Venbor (Pty) Ltd.
Vhavenda Brickworks (Pty) Ltd.
Virema (Pty) Ltd.
Water Boards (all South African Water
Boards)
Water Research Commission
Dated: March 20.1987.
Chester A. Crocker,

Assistant Secretary for African Affairs.
[FR Doc. 87-6696 Filed 3-2fr-87; 8:45 am)

Department of
the Treasury

26




August 1988

APPENDIX V

A p p en d ix A to Part 565— P anam anian
G overn m en tal E ntities

Abbattoir N acional
Aeronautica Civil de Panama and/or
Direccion General de Aeronautica
Civil
Air Panama
Autoridad Portuaria Nacional (National
Port Authority)
Banco de Desarrollo Agropecuario
Banco Hipotecario N acional (National
Mortgage Bank)
Banco N acional de Panama (Panama
National Bank)
Caja de Ahorros (Savings Bank)
Caja de Seguro Social (Social Security)
Citricos de Chiriqui (Chiriqui Citric
Plant)
Colon Free Zone
Comite Nacional de Semillas
(CANASEM)
Consejo Nacional del Banano
Consejo N acional de Inversiones (CNI)
Consulado de Panama (Consulate of
Panama) 1
Consulado General de Panama
(Consulate General of Panama) 1
Consular y N aves and/or Direccion
General Consular y N aves
(SECNAVES)
Contadora Panama S.A.
Cooperativa Agroindustrial de Icacal
(CAICA)
Corporacion Agropecuaria de Rio Hato
(COAPRHA)
Corporacion Azucarera la Victoria
(Sugar Mill)
Corporacion Bananera del Atlantico
(COBANA)
Corporacion Bayano (Bayano Cement)
Corporacion Financiera Nacional
Corp. para el Desarrollo Integral del
Bayano
Corp. para el Desarrollo Integral de
Bocas del Toro
Direccion de Aeronautica Civil (Civil
A eronautics) (DAC)
1 Different restrictions may apply to various
consulates and consulates general. Questions
should be directed to the Office of Foreign Assets
Control.

D e p a r tm e n t o f
th e T re asu ry




Panamanian Governmental Entities

Direccion de Patrimonio Historico
(Historic Heritage)
Direccion General para el Desarrollo de
la Comunidad (Community
Developm ent Admin.) (DIGEDECOM)
Direccion General de A duanas (Customs
Services)
Direccion N acional de Acuicultura
(DINAAC)
Direccion Nacional de A suntos
Administrativos
Direccion Nacional de Agroindustrias
Direccion Nacional de Asuntos
Indigenas (DINAI)
Direccion Nacional de Desarrollo Social
Direccion Nacional de Informacion y
Divulgacion
Direccion N acional de Ingenieria
Direccion N acional de Planificacion
Sectorial
Direccion Nacional de Produccion
Agricola
Direccion N acional de Produccion
Pecuaria
Direccion Nacional de Reforma Agraria
Direccion M etropolitana de A seo
Directorio de Sanidad Vegetal
Electric Power Institute (IRHE)
Empresa Nacional de Maguinaria
Agricola (ENDEMA)
Empresa Nacional de Semillas
(ENASEM)
Explosivos Nacional, S.A. ( Property of
Panamanian Military Officers)
Floresta Panamena
Fomento Lechero
Fuerza A erea Panamena (Panamanian
Air Force)
Hipodromo Presidente Remon (Race
Tracks)
Instituto para la Formacion y
A provecham iento de Recursos
Humanos (IFARHU)
Instituto de Acueductos y
Alcantarillados N acionales
Instituto de Investigacion Agropecuaria
de Panama
Instituto de M ercadeo Agropecuario
(IMA)
Instituto de Recursos Hidraulicos y
Electrificacion
Instituto de Seguro Agropecuario (ISA)

A ugust 1988

Instituto Nacional de Agricultura. Divisa
(INA)
Instituto Nacional de Cultura (Culture)
(INAC)
Instituto N acional de Deporte (Sports)
(INDE)
Instituto N acional de Formacion
Professional (INAFORP)
Instituto N acional de Recursos
Naturales Renovables (INRENARE)
Instituto Panameno Autonomo
C ooperative (IPACOOP)
Instituto Panameno de Comercio
Exterior (IPCE)
Instituto Panameno de Habilitacion
Especial (IPHE)
Instituto N acional de
Telecom m unicaciones (National
Telecom m unications Institute)
(INTEL)
Instituto Panameno de Turismo
(Tourism ) (IPAT)
Laboratorio de Sanidad Animal
Marinexam, S.A.
M ision de Panama Ante las N aciones
Unidas (M ission of Panama to the
United Nations)
National Lottery
National Treasury of the Republic of
Panama and/or Ministerio de
Hacienda de la Republica de Panama
Organizacion Internacional Regional de
Sanidad Agropecuaria (OIRSA)
Palma Africana
Segumar
Transit, S.A. (Property of Panamanian
Military Officers)
U niversidad de Panama (University of
Panama)
U niversidad Technologica
W ater and Sew age Institute (IDAN)
Zona Libre de Colon.
D a te d : M ay 10, 1988.

R. Richard Newcomb,
Director, Office of Foreign Assets Control.
Approved:
Francis A. Keating, II,
Assistant Secretary (Enforcement).
(FR Doc. 88-12497 Filed 5-31-88; 2:40 pm]

27




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