OFAC Authorizes All Transactions with the Palestinian Authority
The Office of Foreign Assets Control has issued a final rule, effective October 31, 2007, which revises its sanctions programs with respect to terrorists and terrorism to add a new general license authorizing all transactions with the Palestinian Authority, as defined in the general license, as of June 20, 2007.
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Foreign Policy Considerations Led to Revisions of Terrorism Sanctions
OFAC states that based on foreign policy considerations resulting from recent events in the West Bank and Gaza, including the appointment of Salam Fayyad as the new Prime Minister of the Palestinian Authority and of other ministers not affiliated with HAMAS, OFAC is revising the Terrorism Sanctions Regulations (31 CFR Part 595), the Global Terrorism Sanctions Regulations (31 CFR Part 594), and the Foreign Terrorist Organizations Sanctions Regulations (31 CFR Part 597) to authorize U.S. persons to engage in all transactions with the Palestinian Authority.
(In April 2006, OFAC issued six general licenses authorizing U.S. persons to engage in certain transactions in which the Palestinian Authority may have an interest. See ITT's Online Archives or 05/12/06 news, 06051299 2, for BP summary.)
General License Authorizes Transactions with Palestinian Authority
The final rule adds a general license under new 31 CFR 595.514, new 31 CFR 594.516, and new 31 CFR 597.512 which states:
(a) As of June 20, 2007, U.S. persons are authorized to engage in all transactions otherwise prohibited under this part with the Palestinian Authority.
(b) For purposes of this section only, the term Palestinian Authoritymeans the Palestinian Authority government of Prime Minister Salam Fayyad and President Mahmoud Abbas, including all branches, ministries, offices, and agencies (independent or otherwise) thereof.
(In the preamble, OFAC states that transactions with HAMAS, or in any property in which HAMAS has an interest, not covered by the general license remain prohibited.)
| Assistant Director for Compliance Outreach & Implementation | (202) 622-2490 |
| Assistant Director for Licensing | (202) 622-2480 |
| Assistant Director for Policy | (202) 622-4855 |
| Chief Counsel | (202) 622-2410 |
OFAC final rule (FR Pub 10/31/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-21357.pdf