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Inactive Financial Institution Letters 


[Federal Register: December 9, 1997 (Volume 62, Number 236)]
[Rules and Regulations]
[Page 64720-64722]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09de97-7]

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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 500


Foreign Assets Control Regulations: Reporting of Claims of U.S.
Nationals Against the Government of North Korea

AGENCY: Office of Foreign Assets Control

ACTION: Final rule; amendment.

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SUMMARY: The Office of Foreign Assets Control is amending the Foreign
Assets Control Regulations to require the reporting, no later than
March 9, 1998, of all outstanding claims held by U.S. nationals against
the Government of North Korea or any North Korean government entity.
The reports are needed to obtain information, on a one-time basis, for
planning and administrative purposes in contemplation of future claims
settlement negotiations. The control number assigned by the Office of
Management and Budget to this information collection requirement is
also included.

EFFECTIVE DATE: December 9, 1997.

FOR FURTHER INFORMATION CONTACT: Loren L. Dohm, Chief, Blocked Assets
Division, tel.: 202/622-2440, or William B. Hoffman, Chief Counsel,
tel.: 202/622-2410, Office of Foreign Assets Control, Department of the
Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document is available as an electronic file on The Federal
Bulletin Board the day of publication in the Federal Register. By
modem, dial 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for
disk or paper copies. This file is available for downloading without
charge in WordPerfect 5.1, ASCII, and Adobe AcrobatTM
readable (*.PDF) formats. For Internet access, the address for use with
the World Wide Web (Home Page), Telnet, or FTP protocol is:
fedbbs.access.gpo.gov. The document can also be downloaded in ASCII
format without charge from Treasury's Electronic Library (``TEL'') in
the ``Business, Trade and Labor Mall'' of the FedWorld bulletin board.
By modem, dial 703/321-3339, and select

[[Page 64721]]

the appropriate self-expanding file in TEL. For Internet access, use
one of the following protocols: Telnet = fedworld.gov (192.239.93.3);
World Wide Web (Home Page) = http://www.fedworld.gov; FTP =
ftp.fedworld.gov (192.239.92.205). Additional information concerning
the programs of the Office of Foreign Assets Control (``OFAC'') is
available for downloading from the Office's Internet Home Page: http://
http://www.treas.gov/offices/enforcement/ofac/, or in fax form through
OFAC's 24-hour fax-on-demand service: call 202/622-0077 using a fax
machine, fax modem, or (within the United States) touch-tone telephone.

Background

    The Foreign Assets Control Regulations, 31 CFR part 500 (the
``Regulations''), are being amended to establish a mandatory, one-time
census with respect to all outstanding claims of U.S. nationals against
the Government of North Korea or any North Korean government entity.
    Section 500.602 is added to the Regulations to require all U.S.
nationals having such claims to report the claims by letter, including
the information required by paragraph (f) of that section, by March 9,
1998. The definition of the term ``U.S. national'' is contained in
Sec. 500.602(g). Observance of the filing deadline is extremely
important. The reports are needed to obtain information, on a one-time
basis, for planning and administrative purposes in contemplation of
future claims settlement negotiations.
    For naturalized U.S. citizens, only claims arising after becoming a
U.S. citizen should be reported. Similarly, an entity must have been
organized under the laws of a U.S. jurisdiction at the time of loss to
have a reportable claim.
    The submission of a report of a claim against the Government of
North Korea or a North Korean government entity does not constitute the
filing with the United States Government of a formal claim for
compensation. No formal claims adjudication program currently exists.
However, failure to file a complete report with respect to claims in a
timely fashion would constitute not only a failure to comply with the
Regulations, but would also prevent the inclusion of the information in
U.S. Government planning and may therefore be prejudicial to the
interests of the claimant and other U.S. claimants. Espousal of claims
of U.S. nationals against a foreign government is within the discretion
of the United States Government.
    Because the Regulations involve a foreign affairs function,
Executive Order 12866 and the provisions of the Administrative
Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking,
opportunity for public participation, and delay in effective date, are
inapplicable. Because no 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

    This final rule is being issued without prior notice and public
procedure pursuant to the Administrative Procedure Act. Pursuant to the
Paperwork Reduction Act of 1995 (44 U.S.C. 3507), the collection of
information contained in this final rule has been submitted to and
approved by the Office of Management and Budget (``OMB'') pending
public comment, and has been assigned control number 1505-0160. 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.
    The collection of information in the Regulations is contained in
new Sec. 500.602 of the Regulations. This information is needed by the
Office of Foreign Assets Control and the U.S. Department of State for
planning and administrative purposes in contemplation of future claims
settlement negotiations. The likely respondents and recordkeepers are
individuals and business organizations.
    New Sec. 500.602(e) provides that ``[r]eports submitted pursuant to
this section are regarded as privileged and confidential.'' It is the
policy of the Office of Foreign Assets Control to protect the
confidentiality of information in appropriate cases pursuant to the
exemptions from disclosure provided under the Freedom of Information
Act (5 U.S.C. 552) and the Privacy Act (5 U.S.C. 552a).
    Estimated total one-time reporting and/or recordkeeping burden: 100
hours.
    The estimated one-time burden per respondent/recordkeeper varies
from 1 hour to 3 hours, depending on individual circumstances, with an
estimated average of 2 hours.
    Estimated number of respondents and/or recordkeepers: 50.
    Estimated frequency of responses: 1.
     Comments are invited on: (a) whether this collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information has practical utility;
(b) the accuracy of the agency's estimate of the burden of the
collection of information; (c) ways to enhance the quality, utility,
and clarity of the information to be collected; (d) ways to minimize
the burden of the collection of information on respondents, including
through the use of automated collection techniques or other forms of
information technology; and (e) estimated capital or start-up costs and
costs of operation, maintenance, and purchase of services to provide
information.
    Comments concerning the above information, the accuracy of
estimated average burden, and suggestions for reducing this burden
should be directed to the Office of Management and Budget, Paperwork
Reduction Project, control number 1505-0160, Washington, DC 20503, with
a copy to the Office of Foreign Assets Control, U.S. Department of the
Treasury, 1500 Pennsylvania Ave., NW--Annex, Washington, DC 20220. Any
such comments should be submitted not later than February 9, 1998.
Comments on aspects of the Regulations other than those involving
collections of information should not be sent to the OMB.

List of Subjects in 31 CFR Part 500

    Administrative practice and procedure, Banks, banking, Blocking of
assets, Cambodia, Exports, Fines and penalties, Finance, Foreign
claims, Foreign investment in the United States, Foreign trade,
Imports, Information and informational materials, International
organizations, North Korea, Reporting and recordkeeping requirements,
Securities, Services, Specially designated nationals, Travel
restrictions, Trusts and estates, Vietnam.
    For the reasons set forth in the preamble, 31 CFR part 500 is
amended as follows:

PART 500--FOREIGN ASSETS CONTROL REGULATIONS

    1. The authority citation for part 500 continues to read as
follows:
    Authority: 18 U.S.C. 2332d; 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); 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.

Subpart F--Reports

    2. Section 500.602 is added to Subpart F to read as follows:

Sec. 500.602  Reporting of claims of U.S. nationals against North
Korea.

    (a) Requirement for reports. Reports are required to be filed on or
before March 9, 1998, in the manner prescribed in this section, with
respect to all

[[Page 64722]]

outstanding claims held by United States nationals against the
Government of North Korea or any North Korean government entity.
    (b) Who must report. A report must be submitted by each U.S.
national having a claim outstanding against the Government of North
Korea or any North Korean government entity. Reports should be
submitted only by persons who were U.S. citizens or entities organized
under the laws of a U.S. jurisdiction on the date of the loss.
    (c) How to register. U.S. nationals filing reports of claims must
submit a letter containing the information required by paragraph (f) of
this section. The letter must be sent to the Blocked Assets Division,
Office of Foreign Assets Control, Department of the Treasury, 1500
Pennsylvania Ave., NW--Annex, Washington, DC 20220, to arrive by March
9, 1998. A copy of the submission should be kept by the claimant.
    (d) Certification. Every report shall bear the signature of the
claimant or a person authorized by the claimant to sign the report. The
signature will certify that, to the best of the reporter's knowledge,
the statements set forth in the report, including any papers attached
to or filed with the report, are true and accurate, and that all
material facts in connection with the report have been set forth.
    (e) Confidentiality of reports. Reports submitted pursuant to this
section are regarded as privileged and confidential.
    (f) Contents of report. The report must contain the following
information (with responses numbered to correspond with the numbers
used below):
    (1) Identification of claimant.
    (i) Claimant's Legal Name.
    (ii) Claimant's Address.
    (iii) Telephone number of individual to contact regarding the
report.
    (iv) If claimant is a naturalized citizen of the United States,
state the place and date of naturalization.
    (v) If claimant is a corporation or business, state the place of
incorporation and principal place of business.
    (2) Information concerning claim.
    (i) Amount of loss in U.S. dollars (indicate exchange or interest
rates and relevant dates utilized for any currency translation or
interest calculation).
    (ii) Describe the circumstances of the loss. Include the date of
the loss and a description of the property, business, obligation,
injury or other damage which is the subject of the claim.
    (g) Definition of United States national. For purposes of this
section, the term United States national or U.S. national means:
    (1) An individual who is a citizen of the United States;
    (2) An individual who, though not a citizen of the United States,
owes permanent allegiance to the United States, and is not an alien; or
    (3) A partnership, corporation, or other juridical entity organized
under the laws of the United States or any jurisdiction within the
United States.
    (h) Definition of the Government of North Korea; North Korean
government entity. For purposes of this section:
    (1) The term Government of North Korea means the government of the
territory of Korea north of the 38th parallel of north latitude, as
well as any political subdivision, agency, or instrumentality thereof,
or any territory, dependency, colony, protectorate, mandate, dominion,
possession, or place subject to the jurisdiction thereof as of the
``effective date.''
    (2) The term North Korean government entity means any corporation,
partnership, or association, or other organization, wherever organized
or doing business, that is owned or controlled by the Government of
North Korea.

Subpart I--Miscellaneous Provisions

    3. Section 500.901 is amended by adding a sentence to the end
thereof to read as follows:

Sec. 500.901  Paperwork Reduction Act notice.

    * * * The information collection requirement in Sec. 500.602 has
been approved by the Office of Management and Budget and assigned
control number 1505-0160.

    Dated: November 10, 1997.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: November 19, 1997.
James E. Johnson,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 97-32094 Filed 12-3-97; 3:54 pm]
BILLING CODE 4810-25-F
Last Updated 07/17/1999 communications@fdic.gov