The Department of the Treasury's
Office of Foreign Assets Control (OFAC) is adding the Hizballah
Financial Sanctions Regulations to 31 C.F.R. chapter V, in order to
implement the Hizballah International Financing Prevention Act of
2015, Public Law 114-102 (HIFPA).
The Office of Foreign
Assets Control (OFAC) is submitting an emergency request for OMB
approval for the following reasons. On December 18, 2015, the
President signed the Hizballah International Financing Prevention
Act of 2015, Public Law 114-102 (HIFPA) into law. Section 102
(a)(1) of HIFPA requires that no later than 120 days after the date
of the enactment the President shall prescribe regulations to
prohibit or impose strict conditions on the opening or maintaining
in the United States of a correspondent account or a
payable-through account by a foreign financial institution that the
President determines engages in one or more of the following
activities: (1) knowingly facilitating a significant transaction
for Hizballah; (2) knowingly facilitating a significant transaction
or transactions of a person identified on the List of Specially
Designated Nationals and Blocked Persons (SDN List) maintained by
OFAC, the property and interests in property of which are blocked
pursuant to the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.) for acting on behalf of or at the direction
of, or being owned or controlled by, Hizballah; (3) knowingly
engaging in money laundering to carry out an activity described in
(1) or (2); or (4) knowingly facilitating a significant transaction
or transactions or providing significant financial services to
carry out an activity described in (1), (2), or (3). On March 18,
2016 the President delegated to the Secretary of the Treasury in
consultation with the Secretary of State the functions and
authorities vested in the President by sections 102(a), 102(c),
204, and 302 of HIFPA. To implement Treasury’s delegated
responsibilities under these provisions of HIFPA, OFAC intends to
publish on or before April 15, 2016 in the Federal Register a final
rule issuing the Hizballah Financial Sanctions Regulations (the
“Regulations”) as a new Part 566 to 31 C.F.R. Chapter V. Section
566.504(b) of the regulations will require a U.S. financial
institution that maintained a correspondent account or a
payable-through account for a foreign financial institution for
which the maintaining of such an account has been prohibited to
file a report with OFAC that provides full details on the closing
of each such account within 30 days of the closure of the account.
This collection of information is essential to OFAC’s mission
because it is required by OFAC to monitor compliance with
regulatory requirements regarding the closure of correspondent
accounts and payable-through accounts maintained by a U.S.
financial institution for a foreign financial institution when the
maintaining of such accounts for a foreign financial institution
has been prohibited pursuant to the Regulations, and it is needed
prior to the expiration of time periods established under 5 C.F.R.
Part 1320 because the publication of the Regulations is subject to
a statutory deadline that will occur prior to the expiration of
those time periods. OFAC cannot reasonably comply with the normal
clearance procedures because the normal clearance procedures would
cause the statutory deadline for publication of regulations
implementing HIFPA to be missed. OFAC is in the process of
publishing a 60 day Federal Register Notice for public comment on
the information collection and reporting requirements, after which
OFAC plans to resubmit for OMB authorization for continued
collection. Update: On April 15, 2016 the Hizballah Regulations 31
CFR part 566 were published in the Federal Register, (81 FR
22185)copy supplied as an other document.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Hizballah Regulations 041516.pdf
PRA Supporting Statement - Hizballah 31 CFR 566 041516 (2).docx
Report on Closure by U.S. Financial Institutions of Correspondent Accounts and Payable-Through Accounts