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[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://

https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information, 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