# [Amended]
**AGENCY:**
Office of Foreign Assets Control, Treasury.
**ACTION:**
Final rule.
**SUMMARY:**
The Treasury Department's Office of Foreign Assets Control (OFAC) is revising its regulations to reflect amendments to the International Emergency Economic Powers Act (IEEPA) made by the Combating Terrorism Financing Act of 2005 (the “Act”).
**DATES:**
Effective May 22, 2006.
**FOR FURTHER INFORMATION CONTACT:**
Assistant Director, Compliance, Outreach & Implementation, tel.: 202/622-2490, Assistant Director, 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 ( *http://www.treas.gov/ofac* ) or via facsimile through a 24-hour fax-on demand service, tel.: (202) 622-0077.
**Background**
On March 9, 2006, the President signed the Act into law as Public Law 109-177. Section 402 of the Act amended section 206 of IEEPA (50 U.S.C. 1705) by raising the maximum civil penalty for a violation, or attempted violation, of any license, order, or regulation issued under IEEPA to $50,000. The Act also increased the maximum term of imprisonment for a willful violation of any such license, order, or regulation to 20 years.
Accordingly, OFAC is amending the current IEEPA-based sanctions programs regulations to reflect the revised penalties prescribed by the Act.
**Executive Order 12866, Administrative Procedure Act, Regulatory Flexibility Act, and Paperwork Reduction Act**
Because the regulations at issue involve a foreign affairs function, the provisions of Executive Order 12866 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. In addition, OFAC finds that, because the rule merely amends the penalties provisions of certain sanctions regulations to conform with the statutory changes provided in the Combating Terrorism Financing Act of 2005, good cause exists under 5 U.S.C. 553(b)(B) to waive the notice and public participation procedures, as well as under 5 U.S.C. 553(d)(3) to waive the delay in effective date. Because no notice of proposed rulemaking is required for this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply.
The Paperwork Reduction Act does not apply because this rule does not impose information collection requirements that would require the approval of the Office of Management and Budget under 44 U.S.C. 3501 *et seq.*
**List of Subjects**
Administrative practice and procedure, Banks, Banking, Currency, Foreign claims, Foreign investments in United States, Iran, Penalties, Reporting and recordkeeping requirements, Securities.
Administrative practice and procedure, Banks, Banking, Drug traffic control, Penalties, Reporting and recordkeeping requirements.
Administrative practice and procedure, Banks, Banking, Burma, Currency, Foreign investments in United States, Foreign trade, Penalties, Reporting and recordkeeping requirements, Securities.
Administrative practice and procedure, Banks, Banking, Currency, Foreign investments in United States, Foreign trade, Penalties, Reporting and recordkeeping requirements, Securities, Sudan.
Administrative practice and procedure, Arms and munitions, Imports, Penalties, Reporting and recordkeeping requirements.
Administrative practice and procedure, Nuclear materials, Penalties, Reporting and recordkeeping requirements, Russian Federation, Uranium.
Administrative practice and procedure, Banks, Banking, Blocking of assets, Penalties, Reporting and recordkeeping requirements, Securities, Services, Zimbabwe.
Administrative practice and procedure, Banks, Banking, Blocking of assets, Credit, Penalties, Reporting and recordkeeping requirements, Securities, Services, Syria.
Administrative practice and procedure, Exports, Humanitarian aid, Imports, Iran, Penalties, Reporting and recordkeeping requirements.
Administrative practice and procedure, Banks, Banking, Penalties, Reporting and recordkeeping requirements, Securities, Western Balkans.
Administrative practice and procedure, Banks, Banking, Penalties, Reporting and recordkeeping requirements, Terrorism.
Administrative practice and procedure, Banks, Banking, Currency, Foreign investments in United States, Penalties, Reporting and recordkeeping requirements, Securities, Terrorism.
**31 CFR Part 535**
For the reasons set forth in the preamble, 31 CFR chapter V is amended by amending the penalty provisions in 31 CFR parts 535, 536, 537, 538, 539, 540, 541, 542, 560, 588, 594, and 595.
**PART 535—IRANIAN ASSETS CONTROL REGULATIONS**
1. The authority citation for part 535 is revised to read as follows:
**Authority:**
18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 12170, 44 FR 65729; 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR 24099; 3 CFR, 1980 Comp., p. 248; E.O. 12211, 45 FR 26685; 3 CFR, 1980 Comp., p. 253; E.O. 12276, 46 FR 7913; 3 CFR 1981 Comp., p. 104; E.O. 12279, 46 FR 7919; 3 CFR, 1981 Comp., p. 109; E.O. 12280, 46 FR 7921; 3 CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923; 3 CFR, 1981 Comp., p. 110; E.O. 12282, 46 FR 7925; 3 CFR, 1981 Comp., p. 113; E.O. 12283, 46 FR 7927; 3 CFR, 1981 Comp., p. 114; and E.O. 12294, 46 FR 14111; 3 CFR, 1981 Comp., p. 139; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
**31 CFR Part 535**
§ 535.701
2. Amend § 535.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “ten years” and adding in its place “twenty years”.
**31 CFR Part 536**
**PART 536—NARCOTICS TRAFFICKING SANCTIONS REGULATIONS**
1. The authority citation for part 536 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1641, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 12978, 60 FR 54579; 3 CFR, 1995 Comp., p. 415; E.O. 13224, 66 FR 49079; 3 CFR, 2001 Comp., p. 786; E.O. 13286, 68 FR 10619, March 5, 2003; Pub. L. 109-177, 120 Stat. 192.
**31 CFR Part 536**
**Subpart G—Penalties**
§ 536.701
2. Amend § 536.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “ten years” and adding in its place “twenty years”.
**31 CFR Part 537**
**PART 537—BURMESE SANCTIONS REGULATIONS**
1. The authority citation for part 537 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C 1601-1651, 1701-1706; Sec. 570, Pub. L. 104-208, 110 Stat. 3009; Pub. L. 108-61, 117 Stat. 864; E.O. 13047, 62 FR 28301; 3 CFR 1997 Comp., p. 202; E.O. 13310, 68 FR 44853; 3 CFR 2004 Comp., p. 241; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
§ 537.701
**31 CFR Part 537**
2. Amend § 537.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “10 years” and adding in its place “twenty years”.
**31 CFR Part 538**
**PART 538—SUDANESE SANCTIONS REGULATIONS**
1. The authority citation for part 538 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2339B, 2332d; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 106-387, 114 Stat. 1549; E.O. 13067, 62 FR 59989; 3 CFR, 1997 Comp., p. 230; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
§ 538.701
**31 CFR Part 538**
2. Amend § 538.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “10 years” and adding in its place “twenty years”.
**31 CFR Part 539**
**PART 539—WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS**
1. The authority citation for part 539 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; E.O. 12938, 59 FR 59099; 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803; 3 CFR, 1998 Comp., p. 200; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
§ 539.701
**31 CFR Part 539**
2. Amend § 539.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “10 years” and adding in its place “twenty years”.
**31 CFR Part 540**
**PART 540—HIGHLY ENRICHED URANIUM (HEU) AGREEMENT ASSETS CONTROL REGULATIONS**
1. The authority citation for part 540 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 13159, 65 FR 39279; 3 CFR Comp., p. 277; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
§ 540.701
**31 CFR Part 540**
2. Amend § 540.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “10 years” and adding in its place “twenty years”.
**31 CFR Part 541**
**PART 541—ZIMBABWE SANCTIONS REGULATIONS**
1. The authority citation for part 541 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; E.O. 13288, 68 FR 11457; 3 CFR, 2003 Comp., p. 186; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
§ 541.701
**31 CFR Part 541**
2. Amend § 541.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “10 years” and adding in its place “twenty years”.
**31 CFR Part 542**
**PART 542—SYRIAN SANCTIONS REGULATIONS**
1. The authority citation for part 542 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; E.O. 13338, 69 FR 26751, May 13, 2004; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
§ 542.701
**31 CFR Part 542**
2. Amend § 542.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “10 years” and adding in its place “twenty years”.
**31 CFR Part 560**
**PART 560—IRANIAN TRANSACTIONS REGULATIONS**
1. The authority citation for part 560 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 2349aa-9; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 106-387, 114 Stat. 1549; E.O. 12613, 52 FR 41940; 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615; 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CRF, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531; 3 CFR, 1997 Comp., p. 217; Pub. L. 109-177, 120 Stat. 192.
**31 CFR Part 560**
**Subpart G—Penalties**
§ 560.701
2. Amend § 560.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “ten years” and adding in its place “twenty years”.
**PART 588—WESTERN BALKANS STABILIZATION REGULATIONS**
1. The authority citation for part 588 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; E.O. 13219, 66 FR 34777; 3 CFR, 2002 Comp., p. 778; E.O. 13304, 68 FR 32315, May 29, 2003; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
§ 588.701
**31 CFR Part 588**
2. Amend § 588.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “10 years” and adding in its place “twenty years”.
**31 CFR Part 594**
**PART 594—GLOBAL TERRORISM SANCTIONS REGULATIONS**
1. The authority citation for part 594 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 13224, 66 FR 49079, September 25, 2001; E.O. 13268, 67 FR 44751, July 3, 2002; 3 CFR, 2002 Comp., p. 240; E.O. 13284, 64 FR 4075, January 28, 2003; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
§ 594.701
**31 CFR Part 594**
2. Amend § 594.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “10 years” and adding in its place “twenty years”.
**31 CFR Part 595**
**PART 595—TERRORISM SANCTIONS REGULATIONS**
1. The authority citation for part 595 is revised to read as follows:
**Authority:**
3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 12947, 60 FR 5079; 3 CFR, 1995 Comp., p. 319; Pub. L. 109-177, 120 Stat. 192.
**Subpart G—Penalties**
§ 595.701
**31 CFR Part 595**
2. Amend § 595.701 in paragraph (a)(1) by removing “$11,000” and adding in its place “$50,000”, and in paragraph (a)(2) by removing “ten years” and adding in its place “twenty years”.
Dated: April 20, 2006.
Barbara C. Hammerle,
Acting Director, Office of Foreign Assets Control.