[Federal Register: March 29, 2005 (Volume 70, Number 59)]
[Proposed Rules]
[Page 15783-15784]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29mr05-26]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
[[Page 15783]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 950
RIN 3206-AK71
Solicitation of Federal Civilian and Uniformed Service Personnel
for Contributions to Private Voluntary Organizations--Sanctions
Compliance Certification
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is issuing a proposed
regulation for the Combined Federal Campaign (CFC). This regulation
requires that each federation and unaffiliated organization applying to
participate in the CFC must, as a condition of participation, certify
that it is in compliance with all statutes, Executive orders, and
regulations restricting or prohibiting U.S. persons from engaging in
transactions and dealings with countries, entities, and individuals
subject to economic sanctions administered by the U.S. Department of
the Treasury's Office of Foreign Assets Control (OFAC).
DATES: We will consider comments received within 60 days from the date
of publication in the Federal Register.
ADDRESSES: You may submit comments, identified by RIN number, by any of
the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: cfc@opm.gov. Include ``RIN 3206-AK71'' in the
subject line of the message.
Fax: (202) 606-0902.
Mail: Mara T. Patermaster, Director for, U.S. Office of
Personnel Management, Office of CFC Operations, Room 5450, 1900 E
Street, NW., Washington, DC 20415.
Hand Delivery/Courier: Mara T. Patermaster, Director for,
U.S. Office of Personnel Management, Office of CFC Operations, Room
5450, 1900 E Street, NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Mark W. Lambert, Senior Compliance
Officer for the Office of CFC Operations, by telephone on (202) 606-
2564, by FAX on (202) 606-0902, or by e-mail at cfc@opm.gov.
SUPPLEMENTARY INFORMATION: OFAC is the office principally responsible
for administering and enforcing U.S. economic sanctions programs. These
programs further U.S. foreign policy and national security goals and
are primarily directed against foreign states and nationals, including
sponsors of global terrorism and foreign narcotics traffickers. OFAC
acts, pursuant to delegated authority, under Presidential wartime and
peacetime national emergency powers. The programs administered by OFAC
restrict or prohibit U.S. persons from engaging in transactions and
dealings with targeted countries, entities, and individuals. OFAC
publishes a list of Specially Designated Nationals and Blocked Persons
(SDN List) that are subject to economic sanctions. The SDN List and
additional information relating to the countries subject to sanctions
and the programs OFAC administers are available at http://
www.treas.gov/offices/enforcement/ofac/sanctions/. A link to this Web
site can be accessed through the CFC Web site (http://www.opm.gov/cfc).
OPM is issuing a proposed regulation governing the solicitation of
Federal civilian and uniformed services personnel at the workplace for
contributions to private non-profit organizations through the CFC under
the authority of Executive Order 12353 (March 23, 1982). OPM has
plenary authority under 5 CFR part 950 to administer the CFC in
compliance with legal standards.
A pattern of abuse of U.S. and foreign charities has become evident
in recent years. Between October 2001 and December 2004, the United
States has: (i) Imposed sanctions against five U.S.-based charities and
thirty-five non-U.S. charities for terrorist financing activity under
the authority of Executive Order 13224 (Sept. 23, 2001) and the
International Emergency Economic Powers Act, 50 U.S.C. 1701, et seq.;
(ii) convicted and sentenced the leader of a U.S.-based charity for
racketeering and fraud owing to terrorist-related support; (iii)
indicted another U.S.-based charity and its leadership under pending
terrorist financing charges, and (iv) investigated numerous other
charities operating in the U.S. and suspected of terrorist financing
activity. These cases demonstrate the vulnerability of the charitable
sector to abuse by terrorists and others and also underscore the
importance of due diligence within the charitable sector.
Accordingly, in order to further the purposes of the economic
sanctions imposed by the President, to ensure that CFC participants are
exercising appropriate diligence, and to help safeguard the integrity
of the CFC and the interests of Federal employees who contribute to the
Campaign, the proposed regulation requires that each federation and
unaffiliated organization applying to participate in the CFC must, as a
condition of participation, certify that it is in compliance with all
statutes, Executive orders, and regulations restricting or prohibiting
U.S. persons from engaging in transactions and dealings with countries,
entities, and individuals subject to economic sanctions administered by
OFAC. The certification proposed for comment for the 2006 and
subsequent Campaigns reads as follows:
I certify that the organization named in this application is in
compliance with all statutes, Executive orders, and regulations
restricting or prohibiting U.S. persons from engaging in
transactions and dealings with countries, entities, or individuals
subject to economic sanctions administered by the U.S. Department of
the Treasury's Office of Foreign Assets Control. The organization
named in this application is aware that a list of countries subject
to such sanctions, a list of Specially Designated Nationals and
Blocked Persons subject to such sanctions, and overviews and
guidelines for each such sanction program can be found at http://
www.treas.gov/offices/enforcement/ofac/sanctions/. If the
organization named in this application becomes noncompliant at any
time subsequent to completing this certification, it will notify the
OPM Office of CFC Operations immediately.
In an effort to develop a certification that both serves the public
interest and meets the needs of the stakeholder community, including
CFC charitable organization applicants and Federal donors, comment is
now being solicited for consideration prior to the 2006 CFC and
subsequent Campaigns.
Comment is invited on what issues, if any, are presented by the
approach
[[Page 15784]]
proposed by OPM for the 2006 and subsequent Campaigns in light of
certifications currently required by other agencies for different
programs. In particular, the U.S. Agency for International Development
requires grantees to make a certification (available under keyword
``Anti-Terrorism Certification'' at http://www.usaid.gov/
keywords.html). Comments from recipients of funding from USAID who also
participate in the Combined Federal Campaign are especially urged to
comment on the appropriateness of different certification requirements.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities. Organizations
applying to the CFC have an existing, independent obligation to comply
with U.S. sanctions laws. Requiring them to execute a certification
with respect to such compliance is not burdensome. OPM has taken steps
to minimize the economic impact on small entities by including in the
text of the certification the OFAC Web site address at which extensive
information on U.S. sanctions is available via the Internet free of
charge, including the text-searchable OFAC SDN List.
Executive Order 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
List of Subjects in 5 CFR Part 950
Administrative practice and procedures, Charitable contributions,
Government employees, Military personnel, Nonprofit organizations and
Reporting and recordkeeping requirements.
Office of Personnel Management.
Dan G. Blair,
Acting Director.
Accordingly, OPM is proposing to amend 5 CFR part 950 as follows:
PART 950--SOLICITATION OF FEDERAL CIVILIAN AND UNIFORMED SERVICE
PERSONNEL FOR CONTRIBUTIONS TO PRIVATE VOLUNTARY ORGANIZATIONS
1. The authority citation for part 950 continues to read as
follows:
Authority: E.O. 12353 (March 23, 1982), 47 FR 12785 (March 25,
1982). 3 CFR, 1982 Comp., p. 139. E.O. 12404 (February 10, 1983), 48
FR 6685 (February 15, 1983), Pub. L. 100-202, and Pub. L. 102-393 (5
U.S.C. 1101 Note).
Sec. 950.104 Local Federal Coordinating Committee Responsibilities.
2. In subpart A Sec. 950.104 add paragraph (b)(18) to read as
follows:
* * * * *
(b) * * *
(18) Determining whether each local organization that applies to
participate in the local campaign has completed the sanctions
compliance certification required pursuant to Sec. 950.605. The LFCC
must deny participation to any organization that has not completed the
sanctions compliance certification.
3. In subpart F, add new Sec. 950.605 to read as follows:
Sec. 950.605 Sanctions Compliance Certification.
Each federation and unaffiliated organization applying for
participation in the CFC must, as a condition of participation,
complete a certification that it is in compliance with all statutes,
Executive orders, and regulations restricting or prohibiting U.S.
persons from engaging in transactions and dealings with persons subject
to economic sanctions administered by the U.S. Department of the
Treasury's Office of Foreign Assets Control (OFAC). An organization
that is not in compliance at any time subsequent to completing this
certification must notify the OPM Office of CFC Operations immediately.
OPM will take such steps as it deems appropriate under the
circumstances, including, but not limited to, notifying OFAC and/or
other enforcement authorities of such noncompliance, suspending
disbursement of CFC funds not yet disbursed, retracting (to the extent
practicable) CFC funds already disbursed, and suspending or expelling
the organization from the CFC.
[FR Doc. 05-6023 Filed 3-28-05; 8:45 am]
BILLING CODE 6325-46-P