Removal of the Terrorism Sanctions Regulations
The Office of Foreign Assets Control (OFAC) is issuing a final rule to remove the Terrorism Sanctions Regulations, 31 CFR part 595, from the Code of Federal Regulations. OFAC is taking this action because the national emergency on which part 595 was based was terminated by the President on September 9, 2019. The rule is currently available for public inspection with the Federal Register and will take effect upon publication in the Federal Register on March 10, 2020.
From the Federal Register:
On January 23, 1995, the President issued Executive Order 12947, ‘‘Prohibiting Transactions With Terrorists Who Threaten To Disrupt the Middle East Peace Process’’ (E.O. 12947), declaring a national emergency with respect to ‘‘grave acts of violence committed by foreign terrorists that disrupt the Middle East peace process,’’ and invoking the authority, inter alia, of the International Emergency Economic Powers Act (50 U.S.C. 1701–1706). In
E.O. 12947, the President blocked all property and interests in property of (1) persons listed in the Annex to E.O. 12947; (2) foreign persons designated by the Secretary of State, in coordination with the Secretary of the Treasury and the Attorney General, because they are found (a) to have committed, or to pose a significant risk of committing, acts of violence that have the purpose or effect of disrupting the Middle East peace process, or (b) to assist in, sponsor, or provide financial, material, or technological support for, or services in support of, such acts of violence; and (3) persons determined by the Secretary of the Treasury, in coordination with the Secretary of State and the Attorney General, to be owned or controlled by, or to act for or on behalf of, any of the foregoing persons.
On February 2, 1996, OFAC issued the Terrorism Sanctions Regulations, 31 CFR part 595 (the ‘‘Regulations’’), as a final rule to implement E.O. 12947. The Regulations were amended on several occasions.
On August 20, 1998, the President issued Executive Order 13099, ‘‘Prohibiting Transactions With Terrorists Who Threaten To Disrupt the Middle East Peace Process’’ (E.O. 13099), amending the Annex to E.O. 12947 in order to take additional steps with respect to the national emergency declared in E.O. 12947. On February 16, 2005, the President issued Executive Order 13372, ‘‘Clarification of Certain Executive Orders Blocking Property and Prohibiting Certain Transactions,’’ further amending E.O. 12947 in order to clarify steps taken in E.O. 12947 as amended by E.O. 13099.
On September 9, 2019, the President issued Executive Order 13886, ‘‘Modernizing Sanctions To Combat Terrorism’’ (E.O. 13886). In E.O. 13886, the President found that it was necessary to consolidate and enhance sanctions to combat acts of terrorism and threats of terrorism by foreign terrorists. Accordingly, he terminated the national emergency declared in E.O. 12947, as amended, and revoked that order.
As a result, OFAC is removing the Regulations from the Code of Federal Regulations. Pursuant to section 202 of
the National Emergencies Act (50 U.S.C. 1622), termination of the national emergency declared in E.O. 12947, as amended, shall not affect any action taken or proceeding pending and not finally concluded or determined as of 12:01 a.m. eastern daylight time on September 10, 2019 (the effective date of E.O. 13886), any action or proceeding based on any act committed prior to the effective date, or any rights or duties that matured or penalties that were incurred prior to the effective date.
To be clear, however, OFAC’s counter terrorism sanctions program page lists 4 other sets fo regulations – Hizballah Financial Sanctions Regulations (Part 566), Global Terrorism Sanctions Regulations (Part 594), Terrorism List Governments Sanctions Regulations (Part 596) and Foreign Terrorist Organizations Sanctions Regulations (Part 597).