OFAC Issues Final Rule on Blocking Property of WMD Proliferators

(In EO 13382, the President took additional steps with respect to the national emergency described and declared in Executive Order 12938 of November 14, 1994, regarding the proliferation of weapons of mass destruction and the means of delivering them.)

Final Rule Adds New 31 CFR Part 544

The final rule adds a new 31 CFR Part 544 entitled, "Weapons Of Mass Destruction Proliferators Sanctions Regulations" to conform OFAC's regulations to the purposes of EO 13382.

New 31 CFR 544.201 states, among other things, that except as authorized by regulations, orders, directives, rulings, instructions, licenses or otherwise, and notwithstanding any contracts entered into or any license or permit granted prior to the effective date, all property and interests in property that are in the U.S., that hereafter come within the U.S., or that are or hereafter come within the possession or control of U.S. persons, including their overseas branches, of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in:

(1) The persons listed in the Annex to EO 13382; and

(2) Any foreign person determined by the Secretary of State, in consultation with the Secretary of the Treasury, the Attorney General, and other relevant agencies:

(i) to have engaged, or attempted to engage, in activities or transactions that have materially contributed to, or pose a risk of materially contributing to, the proliferation of weapons of mass destruction or their means of delivery (including missiles capable of delivering such weapons), including any efforts to manufacture, acquire, possess, develop, transport, transfer or use such items, by any person or foreign country of proliferation concern;

(ii) to have provided, or attempted to provide, financial, material, technological or other support for, or goods or services in support of, any activity or transaction described above, or any person whose property and interests in property are blocked pursuant to this regulation; and

(iii) to be owned or controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this regulation.

(See final rule for additional details, including that the prohibitions outlined above include the making or receipt by a U.S. person or within the U.S. of any contribution or provision of funds, goods, or services from, by, to, or for such blocked persons, etc.)

(See ITT's Online Archives or 07/15/05 news, 05071599 5, for BP summary on EO 13382.)

OFAC final rule (FR Pub 04/13/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-8336.pdf