Cuban Assets Control Regulations

Cuban Assets Control Regulations

6:12am (ET) 12/03/2012 Federal Register



SUMMARY: The Department of the Treasury's Office of Foreign Assets

Control ("OFAC") is amending the Cuban Assets Control Regulations to

authorize the processing of funds transfers for the operating expenses

or other official business of third-country diplomatic or consular

missions in Cuba. OFAC also is amending the Cuban Assets Control

Regulations to authorize certain payments for services rendered by Cuba

to United States aircraft that currently require the issuance of a

specific license.



EFFECTIVE DATE: Effective Date: December 3, 2012.



FOR FURTHER INFORMATION CONTACT: Assistant Director for Sanctions

Compliance & Evaluation, tel.: 202/622-2490, Assistant Director for

Licensing, tel.: 202/622-2480, Assistant Director for Policy, tel.:

202/622-4855, Office of Foreign Assets Control, or Chief Counsel

(Foreign Assets Control), tel.: 202/622-2410, Office of the General

Counsel, Department of the Treasury (not toll free numbers).



SUPPLEMENTARY INFORMATION:



Electronic and Facsimile Availability



This document and additional information concerning OFAC are available

from OFAC's Web site (www.treasury.gov/ofac). Certain general

information pertaining to OFAC's sanctions programs also is available

via facsimile through a 24-hour fax-on-demand service, tel.: 202/622-0077.



Background



The U.S. Government issued the Cuban Assets Control Regulations, 31 CFR

part 515 (the "CACR"), on July 8, 1963, under the Trading With the Enemy

Act (50 U.S.C. App. 5 et seq.). Section 515.201 of the CACR prohibits,

inter alia, all transfers of credit and all payments in which Cuba or a

Cuban national has any interest of any nature whatsoever, direct or

indirect, between, by, through, or to any banking institution

wheresoever located, with respect to any property subject to the

jurisdiction of the United States or by any person subject to the

jurisdiction of the United States.



OFAC is amending the CACR to authorize the processing of funds transfers

for the operating expenses or other official business of third-country

diplomatic or consular missions in Cuba. OFAC also is amending the CACR

to authorize certain payments for services rendered by Cuba to United

States aircraft.



Third-country diplomatic and consular funds transfers. To ensure that

the prohibitions in the CACR do not impede third-country diplomatic or

consular activities in Cuba, OFAC is adding new section 515.579 to the

CACR. This new section authorizes the processing of funds transfers

otherwise prohibited by the CACR for the operating expenses or other

official business of third- country diplomatic or consular missions in Cuba.



Services rendered by Cuba to United States aircraft. OFAC is amending

section 515.548 of the CACR to add a general license authorizing

payments in connection with overflights of Cuba or emergency landings in

Cuba by United States aircraft. Prior to this amendment, such payments

required the issuance of a specific license.



Public Participation



Because the amendment of the CACR involves a foreign affairs function,

the provisions of Executive Order 12866 of September 30, 1993, and 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 Flexibility Act (5 U.S.C.

601-612) does not apply.



Paperwork Reduction Act



The collections of information related to the CACR are contained in 31

CFR part 501 (the "Reporting, Procedures and Penalties Regulations").

Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those

collections of information have been approved by the Office of

Management and Budget under control number 1505-0164. An agency may not

conduct or sponsor, and a person is not required to respond to, a

collection of information unless the collection of information displays

a valid control number.



List of Subjects in 31 CFR Part 515



Aircraft, Banks, Banking, Cuba, Currency, Diplomatic and consular

missions, Emergency landings, Overflights.



For the reasons set forth in the preamble, the Department of the

Treasury's Office of Foreign Assets Control amends 31 CFR part 515 as

set forth below:



PART 515--CUBAN ASSETS CONTROL REGULATIONS



1. The authority citation for part 515 continues to read as follows:



Authority: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010, 7201-7211; 31

U.S.C. 321(b); 50 U.S.C. App 1-44; Pub. L. 101-410, 104 Stat. 890 (28

U.S.C. 2461 note); Pub. L. 104-114, 110 Stat. 785 (22 U.S.C. 6021-6091);

Pub. L. 105- 277, 112 Stat. 2681; Pub. L. 111-8, 123 Stat. 524; Pub. L.

111-117, 123 Stat. 3034; E.O. 9193, 7 FR 5205, 3 CFR, 1938-1943 Comp.,

p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943-1948 Comp., p. 748; Proc.

3447, 27 FR 1085, 3 CFR, 1959-1963 Comp., p. 157; E.O. 12854, 58 FR

36587, 3 CFR, 1993 Comp., p. 614.



Subpart E--Licenses, Authorizations, and Statements of Licensing Policy



2. Revise [Section] 515.548 to read as follows:



[Section] 515.548 Services rendered by Cuba to United States aircraft.



Payment to Cuba of charges for services rendered by Cuba in connection

with overflights of Cuba or emergency landings in Cuba by aircraft

registered in the United States or owned or controlled by, or chartered

to, persons



[Page Number 71531]



subject to U.S. jurisdiction is authorized.



3. Add new [Section] 515.579 to subpart E to read as follows:



[Section] 515.579 Third-country diplomatic and consular funds transfers.



Depository institutions, as defined in [Section] 515.333, are authorized

to process funds transfers for the operating expenses or other official

business of third-country diplomatic or consular missions in Cuba.



Dated: November 26, 2012.



Adam J. Szubin,



Director, Office of Foreign Assets Control.



[FR Doc. 2012-29100 Filed 11-30-12; 8:45 am]



BILLING CODE 4810-AL-P



Vol. 77, No. 232



31 CFR Part 515



Rules and Regulations



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