OFAC Issues Libya Sanctions Regulations Codifying EO 13566

More Comprehensive Regulations Coming, Rule Represents Immediate Guidance

OFAC states that the regulations are being published in abbreviated form at this time for the purpose of providing immediate guidance to the public. However, it intends to supplement 31 CFR Part 570 with a more comprehensive set of regulations, which may include additional interpretive and definitional guidance and additional general licenses and statements of licensing policy.

Adds EO 13566 Prohibitions, Refers to OFAC Licensing Procedures

The final rule adds 31 CFR 570.201 (on prohibited transactions) which states that all transactions prohibited pursuant to EO 13566 of February 25, 2011 are also prohibited pursuant to this part. (EO 13566 blocked property and interests in property of certain leaders of the Libyan Government, those associated with human rights abuses related to political repression in Libya, etc.)

It then states that the names of persons listed in or designated pursuant to EO 13566, whose property and interests in property therefore are blocked pursuant to this section, are published in the Federal Register and incorporated into OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List) with the identifier “[LIBYA2].” However, the property and interests in property of persons falling within the definition of the term “Government of Libya” are blocked pursuant to 31 CFR 570.201 regardless of whether the names of such persons are published in the Federal Register or incorporated into the SDN List.

The final rule also adds new 31 CFR 570.307 (on licenses; general and specific) and 31 CFR 570.501 (on general and specific licensing procedures) that refer to OFAC’s licensing procedures at 31 CFR Part 501 Subpart E and 31 CFR 501.801.

(See final rule for certain other abbreviated provisions on transfers of property, holding funds in interest-bearing accounts, etc.)

General Licenses 3 and 2 Incorporated Into Regulations Effective July 1, 2011

The final rule also incorporates General License numbers 3 and 2 into the Libyan Sanctions Regulations under 31 CFR 570.506 and 31 CFR 570.508, respectively. OFAC states that effective July 1, 2011, these sections replace and supersede General License numbers 3 and 2 which had been available on and are now being removed from, OFAC’s website:

• 31 CFR 570.506 on legal services - authorizes the provision of certain legal services to or on behalf of the Government of Libya or any other persons whose property and interests in property are blocked pursuant to 31 CFR 570.201 provided that all receipts of payment of professional fees and reimbursement of incurred expenses are specifically licensed.

• 31 CFR 570.508 on diplomatic missions - authorizes the provision of goods or services in the U.S. to the diplomatic missions of the Government of Libya to the U.S. and the United Nations, provided certain conditions are met.

General Licenses 1B, 4 and 5 Not Being Incorporated into Regs at This Time

OFAC states that General License Nos. 1B (Authorizing Transactions Related to Third-Country Libyan-Owned or Controlled Banks), 4 (with Respect to Investment Funds in Which There Is a Blocked Non-Controlling, Minority Interest of the Government of Libya), and 5 (Authorizing Transactions Related to Certain Oil, Gas, or Petroleum Products Exported from Libya), as well as certain statements of licensing policy, are not being incorporated into the regulations at this time and remain available here.

(Note that on May 24, 2011, the State Department issued a final rule amending the International Traffic in Arms Regulations (ITAR) to reflect the United Nations Security Council's adopted arms embargo by prohibiting certain defense exports and sales to Libya. The final rule announced a policy of denial for all requests for licenses or other approvals to export or otherwise transfer defense articles and services to Libya, except where not prohibited under UNSC embargo and determined to be in the interests of the national security and foreign policy of the U.S. See ITT’s Online Archives or 05/24/11 news, 11052417, for BP summary.)

(See ITT’s Online Archives or 02/28/11 news, 11022702, for BP summary of EO 13566.)

(FR Pub 07/01/11)