May 13, 2008
HP-975

Treasury, IRS Issue 2009 Indexed Amounts for Health Savings Accounts

Washington, DC--The Treasury Department and Internal Revenue Service today issued new guidance on the maximum contribution levels for Health Savings Accounts (HSAs) and out-of-pocket spending limits for High Deductible Health Plans (HDHPs) that must be used in conjunction with HSAs.  These amounts have been indexed for cost-of-living adjustments for 2009 and are included in Revenue Procedure 2008-29, which announces changes in several indexed amounts for purposes of the federal income tax.

The new levels are as follows:

New Annual Contribution Levels for HSAs:

• For 2009, the maximum annual HSA contribution for an eligible individual with self-only coverage is $3,000. 
• For family coverage, the maximum annual HSA contribution is $5,950.
• Catch up contribution for individual who are 55 or older is increased by statute to $1,000 for 2009 and all years going forward.
• Individuals who are eligible individuals on the first day of the last month of the taxable year (December for most taxpayers) are allowed the full annual contribution (plus catch up contribution, if 55 or older by year end), regardless of the number of months the individual was an eligible individual in the year.  For individuals who are no longer eligible individuals on that date, both the HSA contribution and catch up contribution apply pro rata based on the number of months of the year a taxpayer is an eligible individual.

New Amounts for Out-of-Pocket Spending on HSA-Compatible HDHPs:

• For 2009, the maximum annual out-of-pocket amounts for HDHP self-coverage increase to $5,800 and the maximum annual out-of-pocket amount for HDHP family coverage is twice that, $11,600.

Minimum Deductible Amounts for HSA-Compatible HDHPs:

• For 2009, the minimum deductible for HDHPs increases to $1,150 for self-only coverage and $2,300 for family coverage.

In addition, a fiscal year plan that satisfies the requirements for an HDHP on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year.

Revenue Procedure 2008-29 is attached. 

-30-

REPORTS

• Revenue Procedure 2008-29

Treasury Authorizes Unlimited Personal Remittances to Burma

Washington - The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), in consultation with the Department of State, has moved to ease the humanitarian crisis in Burma by removing the limit on funds that U.S. individuals are allowed to send to family and friends in Burma.

"The people of Burma need all the help we can provide during this crisis," said OFAC Director Adam J. Szubin. "This action will speed the flow of aid to the Burmese people by allowing Americans to send an unlimited amount of funds to their relatives and friends who are in need."

This action, made effective by the issuance of General License No. 15, authorizes U.S. financial institutions to process transfers of funds, unlimited in amount, for noncommercial, personal remittances to or from Burma, or for or on behalf of an individual ordinarily resident in Burma. Prior to the issuance of this general license, noncommercial, personal remittances to Burma were only permitted if the total remittances did not exceed $300 per Burmese household in any consecutive three-month period.

General License No. 15 does not allow transfers by, to, or through persons blocked under the Burma sanctions program. This license, however, does allow transfers to be made utilizing the services of blocked financial institutions in Burma, provided the transfers are made through third-country banks and that debits or credits are not made to any blocked account that is on the books of a U.S. financial institution.

In addition, OFAC has amended General License No. 14. The previously issued General License No. 14 authorized the transfer of funds in support of not-for-profit humanitarian or religious activities in Burma only if they involved U.S. or third-country nongovernmental organizations (NGOs). The Amended General License No. 14 expands that authorization, for a period of 120 days, to allow funding to any organization or individual engaged in not-for-profit humanitarian or religious activities in Burma, with the exception of the Government of Burma itself or any person blocked under the Burma sanctions program.

OFAC expects to re-issue the original General License No. 14, allowing transfers consistent with its terms to continue upon the expiration in 120 days of the Amended General License No. 14. U.S. persons also may continue to make charitable donations to NGOs in Burma that are authorized to operate pursuant to specific licenses that have been issued by OFAC.

Please visit the following link to access the new and amended general licenses:

http://www.treasury.gov/offices/enforcement/ofac/actions/20080509.shtml

OFAC also will send a corresponding regulatory amendment to the Federal Register for publication.

May 9, 2008
HP-973

Week 2 Wrap-Up: Treasury Sent 22.180 Million Stimulus Payments This Week

This week the Treasury Department sent out 22.180 million economic stimulus payments to American households totaling $20.138 billion.  So far, Treasury has sent out 29.888 million total economic stimulus payments totaling $27.230 billion.

 Week Two (May 5-May9)

Total Number of Payments: 22.180 million
Total Amount of Payments: $20.138 billion

Week One (April 28-May 2)

Total Number of Payments: 7.708 million
Total Amount of Payments: $7.091 billion

Cumulative Total

Total Number of Payments: 29.888 million
Total Amount of Payments: $27.230 billion

The Treasury Department will announce at the end of every week the total number of payments that have been sent to households, and the total amount of payments sent.  Payments began April 28th and will continue via direct deposit or paper check through mid-July.  For a single filer, the minimum payment is generally $300 and the maximum payment is $600.  For joint filers, the minimum is generally $600 and the maximum $1,200.  There is also an additional $300 payment for each qualifying child. 

For tax returns processed by the Internal Revenue Service by April 15, households will receive their payments according to the last two digits of the Social Security number on the tax form.  On a joint return, the first number listed will determine when a stimulus payment will be sent. 

REPORTS

• Direct Deposit Payments

May 7, 2008
HP-969

Treasury Issues General License to Speed the Flow of Aid to Burma

Washington - The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), in consultation with the Department of State, issued a general license to help facilitate the flow of funds for humanitarian assistance to the Burmese people in the wake of Cyclone Nargis.

"The American people continue to demonstrate their concern for the people of Burma, particularly as they reel from the devastation of Cyclone Nargis," said OFAC Director Adam J. Szubin. "This license will help to clear the way for additional humanitarian aid to make it to the Burmese people swiftly and efficiently."

This general license is particularly needed in the wake of Cyclone Nargis and the resulting devastation. The issuance of this general license will ease the work of U.S. and third-country nongovernmental organizations (NGOs), as most will no longer need to apply to OFAC for specific licenses or registration numbers in order to transfer funds to Burma to support their humanitarian activities. The general license authorizes the export and reexport of financial services, including the flow of humanitarian funds, to Burma in support of the not-for-profit humanitarian or religious activities in Burma of U.S. or third-country NGOs.

Prior to the issuance of the general license, sending funds to Burma, which is generally prohibited under the Burma sanctions program, would have required the issuance of a specific license by OFAC. NGOs may continue to rely upon outstanding specific licenses and may apply for specific licenses to engage in funds transfers in support of humanitarian activities beyond the scope of the general license.

Existing general licenses already authorize the exportation or reexportation of financial services ordinarily incident to the exportation of goods, technology, or services, other than financial services, to Burma. This action will allow U.S. individuals and entities to send, and U.S. financial institutions to transfer, funds to Burma to be used to support the humanitarian activities of U.S. or third-country NGOs in Burma. Third-country individuals and entities also will be able to transfer dollar-denominated funds through the United States to be used to provide humanitarian assistance by NGOs in Burma. This general license does not authorize the provision of financial services directly or indirectly to the Government of Burma or to persons blocked under the Burma sanctions and such services remain prohibited. 

All transfers authorized by this general license may be made utilizing the services of blocked financial institutions in Burma, provided the transfers are made through third-country banks (no debits or credits may be made to any blocked account on the books of a U.S. financial institution).

Please visit the following link to access the general license:
www.treasury.gov/offices/enforcement/ofac/programs/burma/gls/burmagl14.pdf

OFAC also will be sending a corresponding regulatory amendment to the Federal Register for publication.

-30-

Treasury, OECD Co-Host International Conference on Financial Education

Washington - The Treasury Department and the Organization for Economic Cooperation and Development (OECD) welcomed officials from more than 40 countries today at the International Conference on Financial Education. The two-day conference will allow government officials, researchers, and non-profit and business leaders to share best practices and educational tools in the growing field of financial education. Secretary Paulson will deliver closing remarks Thursday, May 8.

"When it comes to financial education efforts around the world, the tide is rising," said Dan Iannicola, Jr., Deputy Assistant Secretary for Financial Education. "Although our economies each have unique characteristics, there are a number of common problems that arise in part because our populations lack the financial skills they need. By working together, beyond our national borders, we can move quickly and more effectively to find common solutions to these shared problems."

"In a world where financial risks are increasingly transferred to households, financial education has become an essential policy tool," said André Laboul, head of OECD's Financial Affairs Division. "There is an urgent need to develop a new culture of financial responsibility and to help citizens to become financially educated."

The conference will be available for viewing via webcast at http://www.oas.org/OASpage/Live/OASlive.asp.

Treasury co-hosted the conference on behalf of the Financial Literacy and Education Commission, which published a National Strategy for Financial Education in 2006. One of the National Strategy's Calls to Action outlined the need for an international conference to share best practices and increase cooperation on financial education efforts. The National Strategy and other financial education resources are available at www.mymoney.gov.

Treasury Targets FARC Money Exchange House

Washington - The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today designated a Colombian money exchange house for acting on behalf of and materially assisting the narcotics trafficking activities of the Revolutionary Armed Forces of Colombia, a narco-terrorist group also known as the FARC. This is OFAC's fourth action against the FARC in the past six months.

"Today's action targets the FARC's drug trafficking and terror activities by undermining its financial network," said OFAC Director Adam J. Szubin. "This deals another blow to the FARC's ability to fund its operations by laundering criminal proceeds through the international financial system."

Today's designation targets Mercurio Internacional S.A., a Colombian money exchange house headquartered in Bogota, Colombia, with several branches throughout Colombia. The FARC used this Colombian money exchange house--or "casa de cambio" as they are commonly known in Colombia--to launder narcotics proceeds from its Eastern Bloc and, more specifically, the 27th Front. The FARC sells its illicit foreign currency to domestic money exchange businesses or profesionales del cambio. These profesionales del cambio then sell the foreign currency to casas de cambio that, like a bank, can export the foreign currency from Colombia.

Mercurio Internacional accepted foreign currency from the FARC via a number of profesionales del cambio. The FARC derived this foreign currency from drug sales. Mercurio Internacional would then convert the foreign currency back into pesos for the FARC to use in Colombia to fund its activities. For example, Cambios El Trebol, a professional del cambio that was designated by OFAC on April 22, 2008, is one customer of Mercurio Internacional that would sell the FARC's illicit foreign currency to Mercurio Internacional in return for Colombian pesos.

The Eastern Bloc is the strongest military faction of the FARC and uses murder, extortion, kidnapping, and drug trafficking to further the financial and political goals of the FARC. Luis Eduardo Lopez Mendez (alias "Efren Arboleda") leads the 27th Front and ultimately reports to FARC Secretariat Member Victor Julio Suarez Rojas (alias "Mono Jojoy"). Suarez Rojas is the FARC's Chief of Military Operations and formerly served as the commander of the Eastern Bloc. Victor Julio Suarez Rojas and Luis Eduardo Lopez Mendez were designated by OFAC in February 2004 and November 2007, respectively.

On May 29, 2003, President George W. Bush identified the FARC as a significant foreign narcotics trafficker pursuant to the Foreign Narcotics Kingpin Designation Act. Previously, in 2001, OFAC designated the FARC as a Specially Designated Global Terrorist pursuant to Executive Order 13224, and in 1997 the FARC was designated as a Foreign Terrorist Organization by the Secretary of State.

Today's action continues ongoing efforts under the Foreign Narcotics Kingpin Designation Act to apply financial measures against significant foreign narcotics traffickers worldwide. In addition to the 68 drug kingpins that have been designated by the President, 393 businesses and individuals have been designated pursuant to the Kingpin Act since June 2000. Today's designation would not have been possible without support from the Drug Enforcement Administration.

Today's action freezes any assets Mercurio Internacional may have under U.S. jurisdiction and prohibits U.S. persons from conducting financial or commercial transactions with this entity. Penalties for violations of the Kingpin Act range from civil penalties of up to $1,075,000 per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines of up to $5,000,000. Criminal fines for corporations may reach $10,000,000. Other individuals face up to 10 years in prison for criminal violations of the Kingpin Act and fines pursuant to Title 18 of the United States Code.

REPORTS

For a complete list of the individuals and entities designated today, please visit:
http://www.treasury.gov/offices/enforcement/ofac/actions/index.shtml

To view previous OFAC actions directed against the FARC, please visit:

• Treasury Action against the FARC on April 22, 2008.
• Treasury Action against the FARC on January 15, 2008.
• Treasury Action against the FARC on November 1, 2007.
• Treasury Action against the FARC on September 28, 2006.
• Treasury Action against the FARC on February 19, 2004.

Treasury Economic Update 5.2.08

"Today's employment report indicates that the U.S. economy continues to work through substantial challenges from the housing adjustment, high energy and food prices, and financial market conditions.  The Treasury Department sent out 7.7 million economic stimulus payments to American households this week, and the payments will continue through mid-July.  These payments, combined with the business investment incentives also included in the stimulus package, will provide significant support to household and business spending in the middle of the year."
Assistant Secretary Phillip Swagel, May 2, 2008

Employment Fell in April: 
Job Growth: Payroll employment fell by 20,000 in April, following a decrease of 81,000 in March. The United States has added 8.0 million jobs since August 2003.  Employment increased in 39 states and the District of Columbia over the year ending in March. (Last updated: May 2, 2008)
Low Unemployment: The unemployment rate was 5.0 percent in April, down from 5.1 percent in March.  (Last updated: May 2, 2008)
 
Signs of Economic Strength Include Exports and Low Inflation:
Exports: Strong global growth is boosting U.S. exports, which grew by 9.5 percent over the past 4 quarters. (Last updated: April 30, 2008)
Inflation: Core inflation remains contained.  The consumer price index excluding food and energy rose 2.4 percent over the 12 months ending in March. (Last updated: April 16, 2008)
 
The Economic Stimulus Package Will Provide a Temporary Boost to Our Economy:
The package will help our economy weather the housing correction and other challenges. The Economic Stimulus Act of 2008, signed into law by President Bush has two main elements--temporary individual tax relief so that working Americans have more money to spend and temporary tax incentives for businesses to invest and grow.  Together, the legislation will provide about $150 billion of tax relief for the economy in 2008, leading to the creation of over half a million additional jobs by the end of this year. (Last updated: February 29, 2008)
 
Pro-Growth Policies Will Enhance Long-Term U.S. Economic Strength:
We are on track to make significant further progress on the deficit. The FY07 budget deficit was down to 1.2 percent of GDP, from 1.9 percent in FY06.  Much of the improvement in the deficit reflects strong revenue growth, which in turn reflects strong economic growth.  Looking ahead, higher spending on entitlement programs dominates the future fiscal situation; we must squarely face up to the challenge of reforming these programs. 
www.treas.gov/economic-plan 

Week 1 Wrap-Up:
Treasury Sent 7.708 Million Stimulus Payments This Week

This week the Treasury Department sent out 7.708 million economic stimulus payments to American households totaling $7.091 billion. 

Week One (April 28-May 2)

• Total Number of Payments: 7.708 million
• Total Amount of Payments: $7.091 billion

The Treasury Department will announce at the end of every week the total number of payments that have been sent to households, and the total amount of payments sent.  Payments began April 28^th and will continue via direct deposit or paper check through mid-July.  For a single filer, the minimum payment is generally $300 and the maximum payment is $600.  For joint filers, the minimum is generally $600 and the maximum $1,200.  There is also an additional $300 payment for each qualifying child. 

For tax returns processed by the Internal Revenue Service by April 15 households will receive their payments according to the last two digits of the Social Security number on the tax form.  On a joint return, the first number listed will determine when a stimulus payment will be sent. 

Direct Deposit Payments

A small percent of tax returns will require additional time to process and to compute a stimulus payment amount.  For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was processed by April 15.  In these cases, the stimulus payment will be issued approximately 2 weeks after the tax return is ultimately processed.

-30-

U.S., New Zealand to Negotiate Protocol to Income Tax Treaty

Washington, DC--The United States and New Zealand announced today that they plan to begin negotiation of a protocol to amend the bilateral income tax treaty, which entered into force in 1983.  The first round of negotiations is expected to take place beginning June 16 in Washington, D.C. 

The Treasury Department welcomes written comments from the public regarding the upcoming negotiations.  Comments should be sent to John Harrington, International Tax Counsel, Room 3054 Main Treasury Building, 1500 Pennsylvania Ave., NW, Washington, DC 20220.  

Comments also may be sent by fax to (202) 622-0646, or by e-mail to John.Harrington@do.treas.gov.

-30-

President’s Council on Financial Literacy Supports Treasury Launch of Financial Access Pilot

Jacksonville, Fla. - The Treasury Department today launched a new initiative to increase financial education and bank and credit union accounts for Americans currently outside of the financial mainstream. The Community Financial Access Pilot will help selected U.S. communities provide low and moderate income people with needed access to financial services. The initiative was recommended by the President's Advisory Council on Financial Literacy.

"Through this pilot, Treasury will work with banks, credit unions, community leaders, and educational providers to target the nearly 10 percent of American households estimated to fall outside the financial mainstream," said Dan Iannicola, Jr., Deputy Assistant Secretary for Financial Education.

Iannicola announced the initiative in Jacksonville, Fla., one of eight communities participating in the new pilot program. The other participating communities include Brownsville, Texas; Cowlitz County, Wash.; Eastern Kentucky; Mississippi Delta, Miss.; Fresno, Calif.; Philadelphia, Pa.; and St. Louis, Mo.

"Having a bank account is a critical part of being able to participate in our vibrant economic system," said Charles Schwab, Chairman of the President's Advisory Council on Financial Literacy. "This pilot will target the low-income families who need access to basic financial services, so they can stop paying outrageous fees just to cash a check or pay a bill.  It will also give low-income families access to basic financial education so that they can begin to build a better future."

The number of families using alternative financial service providers is estimated to be as high as 50 million.

Jacksonville, Fla. Mayor John Peyton said, "We're honored to have Jacksonville chosen to participate in this worthwhile new initiative. Our existing efforts, under the leadership of FreshMinistries, recognized in 2005 by the U.S. Treasury for Excellence in Financial Literacy, and its partners RealSense Prosperity Campaign, Individual Development Accounts and Family Foundation will be able to reach more low-to-moderate income families and help them save for the future. Money management is an essential skill for everyone, and an important component of both individual and regional prosperity."

Reverend Dr. Robert V. Lee III, a member of the President's Advisory Council on Financial Literacy and the founder and chairman of FreshMinistries also attended the pilot's national launch in Jacksonville, Florida. Information on the Community Financial Access Pilot is available at www.treas.gov/financialeducation.

Treasury Officials to Visit Schools Across U.S. for Annual Teach Children to Save Day

The U.S. Treasury Department and the American Bankers Association Education Foundation once again are partnering today for the 12th annual Teach Children to Save Day. Fourteen Treasury department officials and staff members will volunteer their time to teach America's elementary and high school students the importance of saving.

This is Treasury's fifth year participating in Teach Children to Save Day, when bankers and Department officials connect with students in classrooms and after-school programs to share "real life" lessons about money. 

The following events are open to the media:

Anna Escobedo Cabral, U.S. Treasurer
Boys and Girls Club of Burlington
62 Oak Street
Burlington, Vt.
3:30 p.m.

Donna Gambrell, CDFI Director
View Park Preparatory Accelerated Charter Elementary School
3751 W. 54th Street
Los Angeles, Calif.
8:30 a.m., 9:30 a.m. & 10:30 a.m.

Dan Iannicola, Deputy Assistant Secretary for Financial Education
Longbranch Elementary
3723 Franklin Street
Jacksonville, Fla.
1:00 p.m.

Christine McDaniel, Deputy Assistant Secretary for Economic Policy
Chandler Middle School
201 E. Brookland Park Boulevard
Richmond, Va.
10:00 a.m. & 1:00 p.m.

Barry Wides, Deputy Comptroller for Community Affairs, Office of the Comptroller of the Currency
William Hallett School
36-36 10th Street,
Long Island City, N.Y.
10:00 a.m.

Stafford Via, Deputy Executive Secretary
Redbud Run Elementary
250 First Woods Drive
Winchester, Va.
9:30 a.m. & 10:15 a.m.

Stacy Carlson, Speechwriter to the Treasury Secretary
Wagner Jr. High School
1701 W. Chelten Avenue
Philadelphia, Pa.
9:00 a.m. & 10:15 a.m.

Ed Bodensiek, Outreach Office of Financial Education Office Director
Coeur d'Alene High School
5530 N. 4^th Street
Coeur d'Alene, Idaho
9:50 a.m.

Skyway Elementary School
6621 Courcelles Parkway
Coeur d'Alene, Idaho
10:50 a.m.

Tom Kurek, Office of Financial Education Program Coordinator
Weymouth High School
1 Wildcat Way
Weymouth, Mass.
11:00 a.m.

Mary Kertz, Special Advisor to Special Envoy for China and the SED
L'Anse Creuse Middle School North
46201 Fairchild
Macomb Township, Mich.
9:30 a.m.

L'Anse Creuse High School North
23700 Twenty-One Mile Road
Macomb, Mich.
11:00 a.m.

Jamie Davenport, Program & Financial Analyst and Erin McKevitt, Compliance Advisor
Running Brook Elementary School
5215 West Running Brook Road
Columbia, Md.
1:40 p.m. & 2:15 p.m.

Neal Carlton, Office of the Treasurer
Ocean Springs Middle School
3600 Hanshaw Road
Ocean Springs, Miss.
9:15 a.m.

Oak Park Elementary School
2230 Government Street
Ocean Springs, Miss.
10:15 a.m.

Lopez Elementary School
140 St. John Street
Biloxi, Miss.
2:00 p.m.

Alise DeLeon, Office of Financial Education Analyst
U.S. Bank, NA
425 Walnut Street
Cincinnati, Ohio
9:00 a.m.

April 28, 2008
hp-943

Treasury Announces Marketable Borrowing Estimates

Washington- Treasury announced its current estimates of marketable borrowing today for the April – June 2008 and July – September 2008 quarters:

• Over the April – June 2008 quarter, the Treasury expects to pay down $35 billion of marketable debt, assuming an end-of-June cash balance of $45 billion. This pay down estimate is $87 billion lower than announced in January 2008. The decrease in the amount of the pay down, and corresponding increase in borrowing, is primarily due to lower receipts, redemptions of portfolio holdings by the Federal Reserve System, and lower net issuances of State and Local Government Series securities.
• Over the July – September 2008 quarter, the Treasury expects to borrow $112 billion of marketable debt, assuming an end-of-September cash balance of $45 billion.

During the January – March 2008 quarter, Treasury borrowed $244 billion of marketable debt, finishing with a cash balance of $46 billion at the end of March. In January 2008, Treasury announced marketable borrowing of $156 billion, assuming an end-of-March cash balance of $25 billion. The increase in borrowing was primarily the result of lower receipts, redemptions of portfolio holdings by the Federal Reserve System and adjustments to cash balances.

In the past, Treasury has announced marketable borrowing as the total net issuance of marketable Treasury securities to all entities, including the Federal Reserve's System Open Market Account (SOMA). The Federal Reserve has redeemed SOMA holdings in excess of $130 billion since August 2007. In order to more accurately reflect borrowing from private market participants, net SOMA redemptions have not been included in Treasury's marketable borrowing estimates above. The table below details the impact of excluding net SOMA redemptions in the estimates for the current quarter and the actual results for the three previous quarters.

	Jul-Sep 07	Oct-Dec 07	Jan-Mar 08	Apr-Jun 08
Marketable Borrowing (Including SOMA)	105	87	191	-62
SOMA Redemptions	11	39	53	27
Marketable Borrowing (Excluding SOMA)	116	126	244	-35

Additional financing details relating to Treasury's Quarterly Refunding will be released at 9:00 a.m. on Wednesday, April 30.

-30-

REPORTS

• Sources and Uses Reconciliation Table

April 28, 2008
hp-949

Paulson Approves Stimulus Distribution Plan, Payments for American Samoa, Guam, U.S. Virgin Islands, Commonwealth of the Northern Mariana Islands

Washington, DC--Treasury Secretary Henry M. Paulson, Jr. today approved the stimulus distribution plan and payment amount for American Samoa, and payments amounts to Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands. 

As required by the Economic Stimulus Act of 2008, the Secretary of the Treasury had to approve distribution plans for "non-mirror code" territories (Puerto Rico and American Samoa), and payment amounts to territories with "mirror codes" (Guam, U.S. Virgin Islands, and the Commonwealth of the Northern Mariana  Islands).  Puerto Rico's distribution plan was approved on April 16, 2008.

Copies of the approval letter for the American Samoa plan, as well as payment amount approval letters for the remaining territories are attached.   

-30-

REPORTS

• Paulson Letter to American Samoa
• Paulson Letter to Guam
• Paulson Letter to U.S. Virgin Islands
• Paulson Letter to Commonwealth of Northern Mariana Islands

Secretary Paulson Recognizes Individuals for Dedication to Volunteer Service

Washington, D.C. – Secretary Henry M. Paulson, Jr. presented the President's Lifetime Volunteer Service Award to Clint Hogbin, Gwen Lee, Ethel S. Kennedy, and Rodney Stotts as part of the USA Freedom Corps Volunteer Service Recognition Program today. These individuals have answered the President's call to service by serving over 4,000 hours each to various volunteer activities over their lifetimes.

Clint Hogbin has been active in numerous recycling, solid waste and land preservation programs since 1992. In 2007, he alone worked 728 hours on these volunteer activities while working as an Information Technology Specialist at the IRS.

Gwen Lee has demonstrated the call to service by hosting information booths, stuffing information packages, and serving on committees promoting and encouraging good environmental practices. She recently rented a billboard on I-15 (in Utah) and posted pro-environmental messages, a different one each month for 12 months.

Ethel S. Kennedy, a founding and current board member of the Earth Conservation Corps, has used her considerable influence and passion to fight for the health of the Anacostia River by engaging the underserved young people of the Anacostia River communities. Kennedy negotiated with Pepco, the U. S. Department of Interior, and the District Government to help secure the Earth Conservation Corps' two environmental learning centers on the river, which to date has served over 50,000 youth and adults and 500 Earth Conservation Corps members.

In 1992, Rodney Stotts and eight other youth from Anacostia set the bar for environmental service by pulling 5,000 tires out of Lower Beaver Dam Creek. He also participated in re-introducing the bald eagle to the Anacostia Watershed after it had disappeared from the area for nearly 50 years. Stotts is now on staff at Earth Conservation Corps as Youth Program Coordinator and manages and coordinates the AmeriCorps program.

In his January 2002 State of the Union Address, President Bush called on all Americans to make a difference in their communities through volunteer service. He created USA Freedom Corps, an Office of the White House, to strengthen and expand volunteer service. Americans are responding to the President's Call to Service. Go to www.volunteer.gov or call 1-877-USA-CORPS to find an existing volunteer service opportunity in your area or to find more information about service programs, including national service programs such as the Peace Corps, AmeriCorps, Senior Corps, and Citizen Corps. USA Freedom Corps is also highlighting youth volunteer service. Visit www.volunteerkids.gov for games and ideas designed to show how America's youth are making a difference.

The President's Volunteer Service Award was created at the President's direction by the President's Council on Service and Civic Participation. The Award is available to youth ages 14 and under who have completed 50 or more hours of volunteer service; to individuals 15 and older who have completed 100 or more hours; and to families or groups who have completed 200 or more hours. For more information about the Award, please visit www.presidentialserviceawards.gov

-30-

April 22, 2008
hp-938

Treasury Targets FARC Financial Network in Colombia

Washington −The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today designated two entities and four individuals for acting on behalf of the Revolutionary Armed Forces of Colombia or FARC, a narco-terrorist group.

"Today's designation continues our targeted campaign to take down the FARC's financial networks, especially those utilized to launder their narcotics proceeds," said Barbara C. Hammerle, Deputy Director of OFAC. "This is OFAC's third action in the last five months against the FARC's deadly narco-terrorist organization. Our actions complement the efforts of the Colombian government against the FARC."

On May 29, 2003, President George W. Bush identified the FARC as a significant foreign narcotics trafficker pursuant to the Foreign Narcotics Kingpin Designation Act. In November 2001, the FARC was designated as a Specially Designated Global Terrorist pursuant to Executive Order 13224. In October 1997, the FARC was designated as a Foreign Terrorist Organization by the Secretary of State.

Today's designations focus on a FARC financial network that involves two Colombian money exchange business, Cambios El Trebol and Cambios Nasdaq Ltda. Both are based in Bogota, Colombia. The FARC used these Colombian money exchange businesses, or "profesionales del cambio" as they are commonly known in Colombia, to launder narcotics proceeds. Cambios El Trebol and Cambios Nasdaq Ltda. accepted foreign currency from the FARC that was derived from drug sales. In exchange, the two businesses provided pesos to the FARC that could fund its activities in Colombia. Myriam Rincon Molina and Jose Edilberto Camacho Bernal, two individuals who are tied to these money exchange businesses and who act on behalf of the FARC, were also designated today.

Today's OFAC action also targets Nilson Calderon Velandia (alias "Villa") and Carlos Olimpo Diaz Herrera, both major drug traffickers for the FARC. Nilson Calderon Velandia is responsible for the production and sale of cocaine for the FARC's 27th Front and also manages contacts with other drug traffickers who export the FARC's drugs from Colombia. Carlos Olimpo Diaz, in addition to being responsible for the production and sale of cocaine for the FARC's 27th Front, owns Cambios Nasdaq Ltda.

The FARC's 27th Front is led by Luis Eduardo Lopez Mendez (alias "Efren Arboleda"), who ultimately reports to FARC Secretariat Member Victor Julio Suarez Rojas (alias "Mono Jojoy"). Suarez Rojas is the FARC's Chief of Military Operations and has served as commander of the Eastern Bloc of the FARC. Victor Julio Suarez Rojas and Luis Eduardo Lopez Mendez were previously designated by OFAC on February 18, 2004, and November 1, 2007, respectively.

Today's action today continues ongoing efforts under the Foreign Narcotics Kingpin Designation Act to apply financial measures against significant foreign narcotics traffickers worldwide. In addition to the 68 drug kingpins that have been designated by the President, 392 businesses and individuals have been designated pursuant to the Kingpin Act since June 2000. Today's designation would not have been possible without support from the Drug Enforcement Administration.

Today's designation action freezes any assets the six designees may have under U.S. jurisdiction and prohibits U.S. persons from conducting financial or commercial transactions with these individuals and entities. Penalties for violations of the Kingpin Act range from civil penalties of up to $1,075,000 per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines of up to $5,000,000. Criminal fines for corporations may reach $10,000,000. Other individuals face up to 10 years in prison for criminal violations of the Kingpin Act and fines pursuant to Title 18 of the United States Code.

REPORTS

• 27th FARC Front Financial Flow
  

For a complete list of the individuals and entities designated today, please visit:
http://www.treasury.gov/offices/enforcement/ofac/actions/index.shtml

To view previous OFAC actions directed against the FARC, please visit:

• Treasury Action against the FARC on January 15, 2008
• Treasury Action against the FARC on November 1, 2007
• Treasury Action against the FARC on September 28, 2006
• Treasury Action against the FARC on February 19, 2004

-30-

April 15, 2008
HP-928

OFAC Again Targets Network of Colombian Drug Trafficker

Washington − The Department of the Treasury's Office of Foreign Assets Control (OFAC) today added nine individuals and fifteen companies to its list of Specially Designated Narcotics Traffickers. These OFAC designations target two long-time associates of Carlos Alberto Renteria Mantilla – Carlos Currea Correa (a.k.a. "Cucu") and Ramiro Rengifo Puentes (a.k.a. "William Torrijos"). Carlos Alberto Renteria Mantilla ("Beto Renteria") is the only remaining leader of Colombia's North Valle drug cartel, and the U.S. Department of State is offering up to $5 million for information leading to his capture.

"Yesterday, Ramiro Rengifo Puentes was masquerading as a seemingly legitimate businessman with an extensive financial network," said Adam J. Szubin, Director of OFAC. "OFAC's financial strike today exposes him for who he really is – a significant drug trafficker known in the underworld as William Torrijos."

The individuals designated today are two of Beto Renteria's closest drug trafficking associates. Ramiro Rengfio Puentes controls an extensive corporate network in Colombia and Spain that includes Miracana Inmobiliaria Quilichao S.A. & Cia. S.C.A., a sugar cane company in Cali, Colombia; Frontera Virtual S.A., a business services company in Bogota, Colombia; Red de Servicios Inmobiliario Profesionales S.A. (RIPSA), a real estate company in Bogota, Colombia; Ruiz de Alarcon 12 S.L., a real estate development company in Madrid, Spain; and several construction and real estate development companies located in Cali, Colombia - Constructora Umbria S.A., Agroganadera La Isabela S.A., Centro Comercial Guss S.A., Construcciones La Reserva S.A., Constructora Juanambu S.A., and Constructora Loma Linda S.A. Also designated today are seven other individuals who work for and on behalf of Ramiro Rengifo Puentes, including Edwin Amir Rengifo Ospina and Monica Moreno Fernandez.

Today's designation is OFAC's seventh action against the financial network of Beto Renteria since 2005. In March 2005, OFAC named Beto Renteria as a principal individual under the Specially Designated Narcotics Trafficker program pursuant to Executive Order 12978. Beto Renteria is the subject of two U.S. criminal indictments. He was indicted in the Southern District of Florida in 1994 on narcotics trafficking charges and in the District of Columbia in 2004 on Racketeer Influenced and Corrupt Organizations Act (RICO) charges, stemming from his role as a leader of Colombia's North Valle drug cartel.

This designation is part of the ongoing interagency effort by the Departments of the Treasury, Justice, State and Homeland Security and others to implement Executive Order 12978 of October 21, 1995, which applies economic sanctions against Colombia's drug cartels.  Today's designation action freezes any assets the designees may have that are subject to U.S. jurisdiction and prohibits all financial and commercial transactions by any U.S. person with the designated companies and individuals. 

A detailed look at the program against Colombian drug organizations is provided in OFAC's March 2007 Impact Report on Economic Sanctions Against Colombian Drug Cartels.

http://www.treasury.gov/offices/enforcement/ofac/reports/narco_impact_report_05042007.pdf

REPORTS

• Beto Renteria’s Drug Network