International Criminal Court-Related Sanctions Regulations

 
CONTENT
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section 3405(a) do not apply to periodic
payments that are eligible rollover
distributions (as defined in section
402(f)(2)(A)). See generally section
3405(c) and § 31.3405(c)–1 for Federal
income tax withholding rules applicable
to eligible rollover distributions. See
section 3405(e)(13) for additional rules
applicable to certain periodic payments
under section 3405(a) and nonperiodic
distributions under section 3405(b) that
are to be delivered outside the United
States and its possessions. For
additional guidance regarding periodic
payments, see §§ 35.3405–1 and
35.3405–1T of this chapter.
(b)(1) Q–1: How will Federal income
tax be withheld from a periodic
payment?
(2) A–1: In the case of a periodic
payment that is subject to withholding
under section 3405(a), amounts are
withheld as if the payment were a
payment of wages by an employer to the
employee for the appropriate payroll
period. If the payee has not furnished a
withholding certificate, the amount to
be withheld is determined in the
manner described in the applicable
forms, instructions, publications, and
other guidance prescribed by the
Commissioner. The rules for
withholding when the payee has not
furnished a withholding certificate
apply regardless of whether the payor is
aware of the payee’s actual marital
status or actual Federal income tax
filing status.
(c)(1) Q–2: Do rules similar to those
for wage withholding apply to the
furnishing of a withholding certificate
for periodic payments?
(2) A–2: Yes. Unless the rules of
section 3405 specifically conflict with
the rules of section 3402, the rules for
withholding on periodic payments that
are not eligible rollover distributions
will parallel the rules for wage
withholding. Thus, if a withholding
certificate is furnished by a payee, it
will generally take effect in accordance
with section 3402(f)(3) and as provided
in applicable forms, instructions,
publications, and other guidance
prescribed by the Commissioner. If no
withholding certificate is furnished, the
amount withheld must be determined in
the manner described in the applicable
forms, instructions, publications, and
other guidance prescribed by the
Commissioner for withholding on
periodic payments when no
withholding certificate is furnished.
(d)(1) Q–3: What is the applicability
date of this section?
(2) A–3: This section applies with
respect to periodic payments made after
December 31, 2020.
PART 35—EMPLOYMENT TAX AND
COLLECTION OF INCOME TAX AT
SOURCE REGULATIONS UNDER THE
TAX EQUITY AND FISCAL
RESPONSIBILITY ACT OF 1982
Par. 3. The authority citation for part
35 continues to read in part as follows:
Authority: 26 U.S.C. 6047(e), 7805; 68A
Stat. 917; 96 Stat. 625; Public Law 97–248 (96
Stat. 623) * * *
§ 35.3405–1T [Amended]
Par. 4. Section 35.3405–1T is
amended by removing and reserving
entry a–10 in section A and entries b–
3 and b–4 in section B.
Sunita Lough,
Deputy Commissioner for Services and
Enforcement.
Approved: September 25, 2020.
David J. Kautter,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2020–21777 Filed 9–30–20; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 520
International Criminal Court-Related
Sanctions Regulations
AGENCY
: Office of Foreign Assets
Control, Treasury.
ACTION
: Final rule.
SUMMARY
: The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is adding regulations to
implement Executive Order 13928 of
June 11, 2020 (‘‘Blocking Property of
Certain Persons Associated With the
International Criminal Court’’). OFAC
intends to supplement these regulations
with a more comprehensive set of
regulations, which may include
additional interpretive and definitional
guidance, general licenses, and
statements of licensing policy.
DATES
: This rule is effective October 1,
2020.
FOR FURTHER INFORMATION CONTACT
:
OFAC: Assistant Director for Licensing,
202–622–2480; Assistant Director for
Regulatory Affairs, 202–622–4855; or
Assistant Director for Sanctions
Compliance & Evaluation, 202–622–
2490.
SUPPLEMENTARY INFORMATION
:
Electronic Availability
This document and additional
information concerning OFAC are
available on OFAC’s website
(www.treasury.gov/ofac).
Background
On June 11, 2020, the President,
invoking the authority of, inter alia, the
International Emergency Economic
Powers Act (50 U.S.C. 1701–1706)
(IEEPA), issued Executive Order 13928
(85 FR 36139, June 15, 2020) (E.O.
13928).
In E.O. 13928, the President found
that the situation with respect to the
International Criminal Court (ICC) and
its illegitimate assertions of jurisdiction
over personnel of the United States and
certain of its allies, including the ICC
Prosecutor’s investigation into actions
allegedly committed by United States
military, intelligence, and other
personnel in or relating to Afghanistan,
threatens to subject current and former
United States Government and allied
officials to harassment, abuse, and
possible arrest. The President therefore
determined that any attempt by the ICC
to investigate, arrest, detain, or
prosecute any United States personnel
without the consent of the United
States, or of personnel of countries that
are United States allies and who are not
parties to the Rome Statute or have not
otherwise consented to ICC jurisdiction,
constitutes an unusual and
extraordinary threat to the national
security and foreign policy of the United
States and declared a national
emergency to deal with that threat.
OFAC is issuing the International
Criminal Court-Related Sanctions
Regulations, 31 CFR part 520 (the
‘‘Regulations’’), to implement E.O.
13928, pursuant to authorities delegated
to the Secretary of the Treasury in E.O.
13928. A copy of E.O. 13928 appears in
appendix A to this part.
The Regulations are being published
in abbreviated form at this time for the
purpose of providing immediate
guidance to the public. OFAC intends to
supplement this part 520 with a more
comprehensive set of regulations, which
may include additional interpretive and
definitional guidance, general licenses,
and statements of licensing policy. The
appendix to the Regulations will be
removed when OFAC supplements this
part with a more comprehensive set of
regulations.
Public Participation
Because the Regulations involve a
foreign affairs function, the provisions
of Executive Order 12866 and the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking, opportunity for public
participation, and delay in effective
date, as well as the provisions of
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Executive Order 13771, are
inapplicable. Because no notice of
proposed rulemaking is required for this
rule, the Regulatory Flexibility Act (5
U.S.C. 601–612) does not apply.
Paperwork Reduction Act
The collections of information related
to the Regulations are contained in 31
CFR part 501 (the ‘‘Reporting,
Procedures and Penalties Regulations’’).
Pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507), those
collections of information have been
approved by the Office of Management
and Budget under control number 1505–
0164. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid control number.
List of Subjects in 31 CFR Part 520
Administrative practice and
procedure, Banks, banking, Blocking of
assets, International Criminal Court,
Penalties, Reporting and recordkeeping
requirements, Sanctions.
For the reasons set forth in the
preamble, the Department of the
Treasury’s Office of Foreign Assets
Control adds part 520 to 31 CFR chapter
V to read as follows:
PART 520—INTERNATIONAL
CRIMINAL COURT-RELATED
SANCTIONS REGULATIONS
Subpart A—Relation of This Part to Other
Laws and Regulations
Sec.
520.101 Relation of this part to other laws
and regulations.
Subpart B—Prohibitions
520.201 Prohibited transactions.
520.202 Effect of transfers violating the
provisions of this part.
520.203 Holding of funds in interest-
bearing accounts; investment and
reinvestment.
520.204 Expenses of maintaining blocked
tangible property; liquidation of blocked
property.
520.205 Exempt transactions.
Subpart C—General Definitions
520.300 Applicability of definitions.
520.301 Blocked account; blocked property.
520.302 Effective date.
520.303 Entity.
520.304 Financial, material, or
technological support.
520.305 [Reserved]
520.306 Interest.
520.307 Licenses; general and specific.
520.308 OFAC.
520.309 Person.
520.310 Property; property interest.
520.311 Transfer.
520.312 United States.
520.313 United States person; U.S. person.
520.314 U.S. financial institution.
Subpart D—Interpretations
520.401 [Reserved]
520.402 Effect of amendment.
520.403 Termination and acquisition of an
interest in blocked property.
520.404 Transactions ordinarily incident to
a licensed transaction.
520.405 Setoffs prohibited.
520.406 Entities owned by one or more
persons whose property and interests in
property are blocked.
Subpart E—Licenses, Authorizations, and
Statements of Licensing Policy
520.501 General and specific licensing
procedures.
520.502 [Reserved]
520.503 Exclusion from licenses.
520.504 Payments and transfers to blocked
accounts in U.S. financial institutions.
520.505 Entries in certain accounts for
normal service charges.
520.506 Provision of certain legal services.
520.507 Payments for legal services from
funds originating outside the United
States.
520.508 Emergency medical services.
Subpart F—Reports
520.601 Records and reports.
Subpart G—Penalties and Findings of
Violation
520.701 Penalties and Findings of
Violation.
Subpart H—Procedures
520.801 Procedures.
520.802 Delegation of certain authorities of
the Secretary of the Treasury.
Subpart I—Paperwork Reduction Act
520.901 Paperwork Reduction Act notice.
Appendix A to Part 520—Executive Order
13928 of June 11, 2020
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; Pub. L.
101–410, 104 Stat. 890 (28 U.S.C. 2461 note);
E.O. 13928, 85 FR 36139, June 15, 2020.
Subpart A—Relation of This Part to
Other Laws and Regulations
§ 520.101 Relation of this part to other
laws and regulations.
This part is separate from, and
independent of, the other parts of this
chapter, with the exception of part 501
of this chapter, the recordkeeping and
reporting requirements and license
application and other procedures of
which apply to this part. Actions taken
pursuant to part 501 of this chapter with
respect to the prohibitions contained in
this part are considered actions taken
pursuant to this part. Differing foreign
policy and national security
circumstances may result in differing
interpretations of similar language
among the parts of this chapter. No
license or authorization contained in or
issued pursuant to those other parts
authorizes any transaction prohibited by
this part. No license or authorization
contained in or issued pursuant to any
other provision of law or regulation
authorizes any transaction prohibited by
this part. No license or authorization
contained in or issued pursuant to this
part relieves the involved parties from
complying with any other applicable
laws or regulations.
Note 1 to § 520.101: This part has been
published in abbreviated form for the
purpose of providing immediate guidance to
the public. OFAC intends to supplement this
part with a more comprehensive set of
regulations, which may include additional
interpretive and definitional guidance,
general licenses, and statements of licensing
policy.
Subpart B—Prohibitions
§ 520.201 Prohibited transactions.
All transactions prohibited pursuant
to Executive Order 13928 of June 11,
2020 (E.O. 13928), or any further
Executive orders issued pursuant to the
national emergency declared in E.O.
13928, are prohibited pursuant to this
part.
Note 1 to § 520.201: The names of persons
determined by the Secretary of State to meet
the criteria for the imposition of sanctions
and designated pursuant to E.O. 13928, or
listed in or designated or identified pursuant
to any further Executive orders issued
pursuant to the national emergency declared
in E.O. 13928, 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) using the identifier
formulation ‘‘[ICCP–E.O.[E.O. number
pursuant to which the person’s property and
interests in property are blocked]].’’ The SDN
List is accessible through the following page
on OFAC’s website: www.treasury.gov/sdn.
Additional information pertaining to the SDN
List can be found in appendix A to this
chapter. See § 520.406 concerning entities
that may not be listed on the SDN List but
whose property and interests in property are
nevertheless blocked pursuant to this section.
Note 2 to § 520.201: The International
Emergency Economic Powers Act (50 U.S.C.
1701–1706), in Section 203 (50 U.S.C. 1702),
authorizes the blocking of property and
interests in property of a person during the
pendency of an investigation. The names of
persons whose property and interests in
property are blocked pending investigation
pursuant to this section also are published in
the Federal Register and incorporated into
the SDN List using the identifier formulation
‘‘[BPI–ICCP–E.O.[E.O. number pursuant to
which the person’s property and interests in
property are blocked pending
investigation]].’’
Note 3 to § 520.201: Sections 501.806 and
501.807 of this chapter describe the
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procedures to be followed by persons
seeking, respectively, the unblocking of
funds that they believe were blocked due to
mistaken identity, or administrative
reconsideration of their status as persons
whose property and interests in property are
blocked pursuant to this section.
§ 520.202 Effect of transfers violating the
provisions of this part.
(a) Any transfer after the effective date
that is in violation of any provision of
this part or of any regulation, order,
directive, ruling, instruction, or license
issued pursuant to this part, and that
involves any property or interest in
property blocked pursuant to § 520.201,
is null and void and shall not be the
basis for the assertion or recognition of
any interest in or right, remedy, power,
or privilege with respect to such
property or interest in property.
(b) No transfer before the effective
date shall be the basis for the assertion
or recognition of any right, remedy,
power, or privilege with respect to, or
any interest in, any property or interest
in property blocked pursuant to
§ 520.201, unless the person who holds
or maintains such property, prior to that
date, had written notice of the transfer
or by any written evidence had
recognized such transfer.
(c) Unless otherwise provided, a
license or other authorization issued by
OFAC before, during, or after a transfer
shall validate such transfer or make it
enforceable to the same extent that it
would be valid or enforceable but for
the provisions of this part and any
regulation, order, directive, ruling,
instruction, or license issued pursuant
to this part.
(d) Transfers of property that
otherwise would be null and void or
unenforceable by virtue of the
provisions of this section shall not be
deemed to be null and void or
unenforceable as to any person with
whom such property is or was held or
maintained (and as to such person only)
in cases in which such person is able to
establish to the satisfaction of OFAC
each of the following:
(1) Such transfer did not represent a
willful violation of the provisions of this
part by the person with whom such
property is or was held or maintained
(and as to such person only);
(2) The person with whom such
property is or was held or maintained
did not have reasonable cause to know
or suspect, in view of all the facts and
circumstances known or available to
such person, that such transfer required
a license or authorization issued
pursuant to this part and was not so
licensed or authorized, or, if a license or
authorization did purport to cover the
transfer, that such license or
authorization had been obtained by
misrepresentation of a third party or
withholding of material facts or was
otherwise fraudulently obtained; and
(3) The person with whom such
property is or was held or maintained
filed with OFAC a report setting forth in
full the circumstances relating to such
transfer promptly upon discovery that:
(i) Such transfer was in violation of
the provisions of this part or any
regulation, ruling, instruction, license,
or other directive or authorization
issued pursuant to this part;
(ii) Such transfer was not licensed or
authorized by OFAC; or
(iii) If a license did purport to cover
the transfer, such license had been
obtained by misrepresentation of a third
party or withholding of material facts or
was otherwise fraudulently obtained.
(e) The filing of a report in accordance
with the provisions of paragraph (d)(3)
of this section shall not be deemed
evidence that the terms of paragraphs
(d)(1) and (2) of this section have been
satisfied.
(f) Unless licensed pursuant to this
part, any attachment, judgment, decree,
lien, execution, garnishment, or other
judicial process is null and void with
respect to any property or interest in
property blocked pursuant to § 520.201.
§ 520.203 Holding of funds in interest-
bearing accounts; investment and
reinvestment.
(a) Except as provided in paragraph
(e) or (f) of this section, or as otherwise
directed or authorized by OFAC, any
U.S. person holding funds, such as
currency, bank deposits, or liquidated
financial obligations, subject to
§ 520.201 shall hold or place such funds
in a blocked interest-bearing account
located in the United States.
(b)(1) For purposes of this section, the
term blocked interest-bearing account
means a blocked account:
(i) In a federally insured U.S. bank,
thrift institution, or credit union,
provided the funds are earning interest
at rates that are commercially
reasonable; or
(ii) With a broker or dealer registered
with the Securities and Exchange
Commission under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.), provided the funds are invested in
a money market fund or in U.S.
Treasury bills.
(2) Funds held or placed in a blocked
account pursuant to paragraph (a) of this
section may not be invested in
instruments the maturity of which
exceeds 180 days.
(c) For purposes of this section, a rate
is commercially reasonable if it is the
rate currently offered to other depositors
on deposits or instruments of
comparable size and maturity.
(d) For purposes of this section, if
interest is credited to a separate blocked
account or subaccount, the name of the
account party on each account must be
the same.
(e) Blocked funds held in instruments
the maturity of which exceeds 180 days
at the time the funds become subject to
§ 520.201 may continue to be held until
maturity in the original instrument,
provided any interest, earnings, or other
proceeds derived therefrom are paid
into a blocked interest-bearing account
in accordance with paragraph (a) or (f)
of this section.
(f) Blocked funds held in accounts or
instruments outside the United States at
the time the funds become subject to
§ 520.201 may continue to be held in the
same type of accounts or instruments,
provided the funds earn interest at rates
that are commercially reasonable.
(g) This section does not create an
affirmative obligation for the holder of
blocked tangible property, such as real
or personal property, or of other blocked
property, such as debt or equity
securities, to sell or liquidate such
property. However, OFAC may issue
licenses permitting or directing such
sales or liquidation in appropriate cases.
(h) Funds subject to this section may
not be held, invested, or reinvested in
a manner that provides financial or
economic benefit or access to any
person whose property and interests in
property are blocked pursuant to
§ 520.201, nor may their holder
cooperate in or facilitate the pledging or
other attempted use as collateral of
blocked funds or other assets.
§ 520.204 Expenses of maintaining
blocked tangible property; liquidation of
blocked property.
(a) Except as otherwise authorized,
and notwithstanding the existence of
any rights or obligations conferred or
imposed by any international agreement
or contract entered into or any license
or permit granted prior to the effective
date, all expenses incident to the
maintenance of tangible property
blocked pursuant to § 520.201 shall be
the responsibility of the owners or
operators of such property, which
expenses shall not be met from blocked
funds.
(b) Property blocked pursuant to
§ 520.201 may, in the discretion of
OFAC, be sold or liquidated and the net
proceeds placed in a blocked interest-
bearing account in the name of the
owner of the property.
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§ 520.205 Exempt transactions.
(a) Personal communications. The
prohibitions contained in this part do
not apply to any postal, telegraphic,
telephonic, or other personal
communication that does not involve
the transfer of anything of value.
(b) Official business. The prohibitions
contained in § 520.201 do not apply to
transactions for the conduct of the
official business of the United States
Government by employees, grantees, or
contractors thereof.
Subpart C—General Definitions
§ 520.300 Applicability of definitions.
The definitions in this subpart apply
throughout the entire part.
§ 520.301 Blocked account; blocked
property.
The terms blocked account and
blocked property shall mean any
account or property subject to the
prohibitions in § 520.201 held in the
name of a person whose property and
interests in property are blocked
pursuant to § 520.201, or in which such
person has an interest, and with respect
to which payments, transfers,
exportations, withdrawals, or other
dealings may not be made or effected
except pursuant to a license or other
authorization from OFAC expressly
authorizing such action.
Note 1 to § 520.301: See §520.406
concerning the blocked status of property
and interests in property of an entity that is
directly or indirectly owned, whether
individually or in the aggregate, 50 percent
or more by one or more persons whose
property and interests in property are
blocked pursuant to § 520.201.
§ 520.302 Effective date.
(a) The term effective date refers to
the effective date of the applicable
prohibitions and directives contained in
this part, and with respect to a person
whose property and interests in
property are blocked pursuant to
§ 520.201, the earlier of the date of
actual or constructive notice that such
person’s property and interests in
property are blocked.
(b) For the purposes of this section,
constructive notice is the date that a
notice of the blocking of the relevant
person’s property and interests in
property is published in the Federal
Register.
§ 520.303 Entity.
The term entity means a government
or instrumentality of such government,
partnership, association, trust, joint
venture, corporation, group, subgroup,
or other organization, including an
international organization.
§ 520.304 Financial, material, or
technological support.
The term financial, material, or
technological support means any
property, tangible or intangible,
including currency, financial
instruments, securities, or any other
transmission of value; weapons or
related materiel; chemical or biological
agents; explosives; false documentation
or identification; communications
equipment; computers; electronic or
other devices or equipment;
technologies; lodging; safe houses;
facilities; vehicles or other means of
transportation; or goods.
‘‘Technologies’’ as used in this section
means specific information necessary
for the development, production, or use
of a product, including related technical
data such as blueprints, plans, diagrams,
models, formulae, tables, engineering
designs and specifications, manuals, or
other recorded instructions.
§ 520.305 [Reserved]
§ 520.306 Interest.
Except as otherwise provided in this
part, the term interest, when used with
respect to property (e.g., ‘‘an interest in
property’’), means an interest of any
nature whatsoever, direct or indirect.
§ 520.307 Licenses; general and specific.
(a) Except as otherwise provided in
this part, the term license means any
license or authorization contained in or
issued pursuant to this part.
(b) The term general license means
any license or authorization the terms of
which are set forth in subpart E of this
part or made available on OFAC’s
website: www.treasury.gov/ofac.
(c) The term specific license means
any license or authorization issued
pursuant to this part but not set forth in
subpart E of this part or made available
on OFAC’s website: www.treasury.gov/
ofac.
Note 1 to § 520.307: See §501.801 of this
chapter on licensing procedures.
§ 520.308 OFAC.
The term OFAC means the
Department of the Treasury’s Office of
Foreign Assets Control.
§ 520.309 Person.
The term person means an individual
or entity.
§ 520.310 Property; property interest.
The terms property and property
interest include money, checks, drafts,
bullion, bank deposits, savings
accounts, debts, indebtedness,
obligations, notes, guarantees,
debentures, stocks, bonds, coupons, any
other financial instruments, bankers
acceptances, mortgages, pledges, liens
or other rights in the nature of security,
warehouse receipts, bills of lading, trust
receipts, bills of sale, any other
evidences of title, ownership, or
indebtedness, letters of credit and any
documents relating to any rights or
obligations thereunder, powers of
attorney, goods, wares, merchandise,
chattels, stocks on hand, ships, goods on
ships, real estate mortgages, deeds of
trust, vendors’ sales agreements, land
contracts, leaseholds, ground rents, real
estate and any other interest therein,
options, negotiable instruments, trade
acceptances, royalties, book accounts,
accounts payable, judgments, patents,
trademarks or copyrights, insurance
policies, safe deposit boxes and their
contents, annuities, pooling agreements,
services of any nature whatsoever,
contracts of any nature whatsoever, and
any other property, real, personal, or
mixed, tangible or intangible, or interest
or interests therein, present, future, or
contingent.
§ 520.311 Transfer.
The term transfer means any actual or
purported act or transaction, whether or
not evidenced by writing, and whether
or not done or performed within the
United States, the purpose, intent, or
effect of which is to create, surrender,
release, convey, transfer, or alter,
directly or indirectly, any right, remedy,
power, privilege, or interest with respect
to any property. Without limitation on
the foregoing, it shall include the
making, execution, or delivery of any
assignment, power, conveyance, check,
declaration, deed, deed of trust, power
of attorney, power of appointment, bill
of sale, mortgage, receipt, agreement,
contract, certificate, gift, sale, affidavit,
or statement; the making of any
payment; the setting off of any
obligation or credit; the appointment of
any agent, trustee, or fiduciary; the
creation or transfer of any lien; the
issuance, docketing, filing, or levy of or
under any judgment, decree,
attachment, injunction, execution, or
other judicial or administrative process
or order, or the service of any
garnishment; the acquisition of any
interest of any nature whatsoever by
reason of a judgment or decree of any
foreign country; the fulfillment of any
condition; the exercise of any power of
appointment, power of attorney, or
other power; or the acquisition,
disposition, transportation, importation,
exportation, or withdrawal of any
security.
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§ 520.312 United States.
The term United States means the
United States, its territories and
possessions, and all areas under the
jurisdiction or authority thereof.
§ 520.313 United States person; U.S.
person.
The term United States person or U.S.
person means any United States citizen,
permanent resident alien, entity
organized under the laws of the United
States or any jurisdiction within the
United States (including foreign
branches), or any person in the United
States.
§ 520.314 U.S. financial institution.
The term U.S. financial institution
means any U.S. entity (including its
foreign branches) that is engaged in the
business of accepting deposits, making,
granting, transferring, holding, or
brokering loans or other extensions of
credit, or purchasing or selling foreign
exchange, securities, commodity futures
or options, or procuring purchasers and
sellers thereof, as principal or agent. It
includes depository institutions, banks,
savings banks, trust companies,
securities brokers and dealers, futures
and options brokers and dealers,
forward contract and foreign exchange
merchants, securities and commodities
exchanges, clearing corporations,
investment companies, employee
benefit plans, and U.S. holding
companies, U.S. affiliates, or U.S.
subsidiaries of any of the foregoing. This
term includes those branches, offices,
and agencies of foreign financial
institutions that are located in the
United States, but not such institutions’
foreign branches, offices, or agencies.
Subpart D—Interpretations
§ 520.401 [Reserved]
§ 520.402 Effect of amendment.
Unless otherwise specifically
provided, any amendment,
modification, or revocation of any
provision in or appendix to this part or
chapter or of any order, regulation,
ruling, instruction, or license issued by
OFAC does not affect any act done or
omitted, or any civil or criminal
proceeding commenced or pending,
prior to such amendment, modification,
or revocation. All penalties, forfeitures,
and liabilities under any such order,
regulation, ruling, instruction, or license
continue and may be enforced as if such
amendment, modification, or revocation
had not been made.
§ 520.403 Termination and acquisition of
an interest in blocked property.
(a) Whenever a transaction licensed or
authorized by or pursuant to this part
results in the transfer of property
(including any property interest) away
from a person whose property and
interests in property are blocked
pursuant to § 520.201, such property
shall no longer be deemed to be
property blocked pursuant to § 520.201,
unless there exists in the property
another interest that is blocked pursuant
to § 520.201, the transfer of which has
not been effected pursuant to license or
other authorization.
(b) Unless otherwise specifically
provided in a license or authorization
issued pursuant to this part, if property
(including any property interest) is
transferred or attempted to be
transferred to a person whose property
and interests in property are blocked
pursuant to § 520.201, such property
shall be deemed to be property in which
such person has an interest and
therefore blocked.
§ 520.404 Transactions ordinarily incident
to a licensed transaction.
Any transaction ordinarily incident to
a licensed transaction and necessary to
give effect thereto is also authorized,
except:
(a) An ordinarily incident transaction,
not explicitly authorized within the
terms of the license, by or with a person
whose property and interests in
property are blocked pursuant to
§ 520.201; or
(b) An ordinarily incident transaction,
not explicitly authorized within the
terms of the license, involving a debit to
a blocked account or a transfer of
blocked property.
§ 520.405 Setoffs prohibited.
A setoff against blocked property
(including a blocked account), whether
by a U.S. bank or other U.S. person, is
a prohibited transfer under § 520.201 if
effected after the effective date.
§ 520.406 Entities owned by one or more
persons whose property and interests in
property are blocked.
Persons whose property and interests
in property are blocked pursuant to
§ 520.201 have an interest in all
property and interests in property of an
entity in which such persons directly or
indirectly own, whether individually or
in the aggregate, a 50 percent or greater
interest. The property and interests in
property of such an entity, therefore, are
blocked, and such an entity is a person
whose property and interests in
property are blocked pursuant to
§ 520.201, regardless of whether the
name of the entity is incorporated into
OFAC’s Specially Designated Nationals
and Blocked Persons List (SDN List).
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
§ 520.501 General and specific licensing
procedures.
For provisions relating to licensing
procedures, see part 501, subpart E, of
this chapter. Licensing actions taken
pursuant to part 501 of this chapter with
respect to the prohibitions contained in
this part are considered actions taken
pursuant to this part. General licenses
and statements of licensing policy
relating to this part also may be
available through the International
Criminal Court-Related Sanctions
Regulations page on OFAC’s website:
www.treasury.gov/ofac.
§ 520.502 [Reserved]
§ 520.503 Exclusion from licenses.
OFAC reserves the right to exclude
any person, property, transaction, or
class thereof from the operation of any
license or from the privileges conferred
by any license. OFAC also reserves the
right to restrict the applicability of any
license to particular persons, property,
transactions, or classes thereof. Such
actions are binding upon actual or
constructive notice of the exclusions or
restrictions.
§ 520.504 Payments and transfers to
blocked accounts in U.S. financial
institutions.
Any payment of funds or transfer of
credit in which a person whose property
and interests in property are blocked
pursuant to § 520.201 has any interest
that comes within the possession or
control of a U.S. financial institution
must be blocked in an account on the
books of that financial institution. A
transfer of funds or credit by a U.S.
financial institution between blocked
accounts in its branches or offices is
authorized, provided that no transfer is
made from an account within the
United States to an account held outside
the United States, and further provided
that a transfer from a blocked account
may be made only to another blocked
account held in the same name.
Note 1 to § 520.504: See §501.603 of this
chapter for mandatory reporting
requirements regarding financial transfers.
See also § 520.203 concerning the obligation
to hold blocked funds in interest-bearing
accounts.
§ 520.505 Entries in certain accounts for
normal service charges.
(a) A U.S. financial institution is
authorized to debit any blocked account
held at that financial institution in
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payment or reimbursement for normal
service charges owed it by the owner of
that blocked account.
(b) As used in this section, the term
normal service charges shall include
charges in payment or reimbursement
for interest due; cable, telegraph,
internet, or telephone charges; postage
costs; custody fees; small adjustment
charges to correct bookkeeping errors;
and, but not by way of limitation,
minimum balance charges, notary and
protest fees, and charges for reference
books, photocopies, credit reports,
transcripts of statements, registered
mail, insurance, stationery and supplies,
and other similar items.
§ 520.506 Provision of certain legal
services.
(a) The provision of the following
legal services to or on behalf of persons
whose property and interests in
property are blocked pursuant to
§ 520.201 is authorized, provided that
any receipt of payment of professional
fees and reimbursement of incurred
expenses must be authorized pursuant
to § 520.507, which authorizes certain
payments for legal services from funds
originating outside the United States;
via specific license; or otherwise
pursuant to this part:
(1) Provision of legal advice and
counseling on the requirements of and
compliance with the laws of the United
States or any jurisdiction within the
United States, provided that such advice
and counseling are not provided to
facilitate transactions in violation of this
part;
(2) Representation of persons named
as defendants in or otherwise made
parties to legal, arbitration, or
administrative proceedings before any
U.S. Federal, state, or local court or
agency;
(3) Initiation and conduct of legal,
arbitration, or administrative
proceedings before any U.S. Federal,
state, or local court or agency;
(4) Representation of persons before
any U.S. Federal, state, or local court or
agency with respect to the imposition,
administration, or enforcement of U.S.
sanctions against such persons; and
(5) Provision of legal services in any
other context in which prevailing U.S.
law requires access to legal counsel at
public expense.
(b) The provision of any other legal
services to or on behalf of persons
whose property and interests in
property are blocked pursuant to
§ 520.201, not otherwise authorized in
this part, requires the issuance of a
specific license.
(c) U.S. persons do not need to obtain
specific authorization to provide related
services, such as making filings and
providing other administrative services,
that are ordinarily incident to the
provision of services authorized by this
section. Additionally, U.S. persons who
provide services authorized by this
section do not need to obtain specific
authorization to contract for related
services that are ordinarily incident to
the provision of those legal services,
such as those provided by private
investigators or expert witnesses, or to
pay for such services. See § 520.404.
(d) Entry into a settlement agreement
or the enforcement of any lien,
judgment, arbitral award, decree, or
other order through execution,
garnishment, or other judicial process
purporting to transfer or otherwise alter
or affect property or interests in
property blocked pursuant to § 520.201
is prohibited unless licensed pursuant
to this part.
Note 1 to § 520.506: Pursuant to part 501,
subpart E, of this chapter, U.S. persons
seeking administrative reconsideration or
judicial review of their designation or the
blocking of their property and interests in
property may apply for a specific license
from OFAC to authorize the release of certain
blocked funds for the payment of
professional fees and reimbursement of
incurred expenses for the provision of such
legal services where alternative funding
sources are not available.
§ 520.507 Payments for legal services from
funds originating outside the United States.
(a) Professional fees and incurred
expenses. (1) Receipt of payment of
professional fees and reimbursement of
incurred expenses for the provision of
legal services authorized pursuant to
§ 520.506(a) to or on behalf of any
person whose property and interests in
property are blocked pursuant to
§ 520.201 is authorized from funds
originating outside the United States,
provided that the funds do not originate
from:
(i) A source within the United States;
(ii) Any source, wherever located,
within the possession or control of a
U.S. person; or
(iii) Any individual or entity, other
than the person on whose behalf the
legal services authorized pursuant to
§ 520.506(a) are to be provided, whose
property and interests in property are
blocked pursuant to any part of this
chapter or any Executive order or
statute.
(2) Nothing in this paragraph (a)
authorizes payments for legal services
using funds in which any other person
whose property and interests in
property are blocked pursuant to
§ 520.201, any other part of this chapter,
or any Executive order or statute has an
interest.
(b) Reports. (1) U.S. persons who
receive payments pursuant to paragraph
(a) of this section must submit annual
reports no later than 30 days following
the end of the calendar year during
which the payments were received
providing information on the funds
received. Such reports shall specify:
(i) The individual or entity from
whom the funds originated and the
amount of funds received; and
(ii) If applicable:
(A) The names of any individuals or
entities providing related services to the
U.S. person receiving payment in
connection with authorized legal
services, such as private investigators or
expert witnesses;
(B) A general description of the
services provided; and
(C) The amount of funds paid in
connection with such services.
(2) The reports, which must reference
this section, are to be submitted to
OFAC using one of the following
methods:
(i) Email (preferred method):
OFAC.Regulations.Reports@
treasury.gov; or
(ii) U.S. mail: OFAC Regulations
Reports, Office of Foreign Assets
Control, U.S. Department of the
Treasury, 1500 Pennsylvania Avenue,
NW, Freedman’s Bank Building,
Washington, DC 20220.
§ 520.508 Emergency medical services.
The provision and receipt of
nonscheduled emergency medical
services that are otherwise prohibited by
this part are authorized.
Subpart F—Reports
§ 520.601 Records and reports.
For provisions relating to required
records and reports, see part 501,
subpart C, of this chapter.
Recordkeeping and reporting
requirements imposed by part 501 of
this chapter with respect to the
prohibitions contained in this part are
considered requirements arising
pursuant to this part.
Subpart G—Penalties and Findings of
Violation
§ 520.701 Penalties and Findings of
Violation.
(a) The penalties available under
section 206 of the International
Emergency Economic Powers Act (50
U.S.C. 1701–1706) (IEEPA), as adjusted
annually pursuant to the Federal Civil
Penalties Inflation Adjustment Act of
1990 (Pub. L. 101–410, as amended, 28
U.S.C. 2461 note) or, in the case of
criminal violations, as adjusted
pursuant to 18 U.S.C. 3571, are
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applicable to violations of the
provisions of this part.
(b) OFAC has the authority, pursuant
to IEEPA, to issue Pre-Penalty Notices,
Penalty Notices, and Findings of
Violation; impose monetary penalties;
engage in settlement discussions and
enter into settlements; refer matters to
the United States Department of Justice
for administrative collection; and, in
appropriate circumstances, refer matters
to appropriate law enforcement agencies
for criminal investigation and/or
prosecution. For more information, see
appendix A to part 501 of this chapter,
which provides a general framework for
the enforcement of all economic
sanctions programs administered by
OFAC, including enforcement-related
definitions, types of responses to
apparent violations, general factors
affecting administrative actions, civil
penalties for failure to comply with a
requirement to furnish information or
keep records, and other general civil
penalties information.
Subpart H—Procedures
§ 520.801 Procedures.
For license application procedures
and procedures relating to amendments,
modifications, or revocations of
licenses; administrative decisions;
rulemaking; and requests for documents
pursuant to the Freedom of Information
and Privacy Acts (5 U.S.C. 552 and
552a), see part 501, subpart E, of this
chapter.
§ 520.802 Delegation of certain authorities
of the Secretary of the Treasury.
Any action that the Secretary of the
Treasury is authorized to take pursuant
to Executive Order 13928 of June 11,
2020 (E.O. 13928), and any further
Executive orders issued pursuant to the
national emergency declared in E.O.
13928, may be taken by the Director of
OFAC or by any other person to whom
the Secretary of the Treasury has
delegated authority so to act.
Subpart I—Paperwork Reduction Act
§ 520.901 Paperwork Reduction Act notice.
For approval by the Office of
Management and Budget (OMB) under
the Paperwork Reduction Act of 1995
(44 U.S.C. 3507) of information
collections relating to recordkeeping
and reporting requirements, licensing
procedures, and other procedures, see
§ 501.901 of this chapter. An agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless it
displays a valid control number
assigned by OMB.
Appendix A to Part 520—Executive
Order 13928 of June 11, 2020
Executive Order 13928 of June 11, 2020
Blocking Property of Certain Persons
Associated With the International Criminal
Court
By the authority vested in me as President
by the Constitution and the laws of the
United States of America, including the
International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.) (IEEPA), the
National Emergencies Act (50 U.S.C. 1601 et
seq.) (NEA), section 212(f) of the Immigration
and Nationality Act of 1952 (8 U.S.C.
1182(f)), and section 301 of title 3, United
States Code,
I, DONALD J. TRUMP, President of the
United States of America, find that the
situation with respect to the International
Criminal Court (ICC) and its illegitimate
assertions of jurisdiction over personnel of
the United States and certain of its allies,
including the ICC Prosecutor’s investigation
into actions allegedly committed by United
States military, intelligence, and other
personnel in or relating to Afghanistan,
threatens to subject current and former
United States Government and allied officials
to harassment, abuse, and possible arrest.
These actions on the part of the ICC, in turn,
threaten to infringe upon the sovereignty of
the United States and impede the critical
national security and foreign policy work of
United States Government and allied
officials, and thereby threaten the national
security and foreign policy of the United
States. The United States is not a party to the
Rome Statute, has never accepted ICC
jurisdiction over its personnel, and has
consistently rejected ICC assertions of
jurisdiction over United States personnel.
Furthermore, in 2002, the United States
Congress enacted the American Service-
Members’ Protection Act (22 U.S.C. 7421 et
seq.) which rejected the ICC’s overbroad,
non-consensual assertions of jurisdiction.
The United States remains committed to
accountability and to the peaceful cultivation
of international order, but the ICC and parties
to the Rome Statute must respect the
decisions of the United States and other
countries not to subject their personnel to the
ICC’s jurisdiction, consistent with their
respective sovereign prerogatives. The United
States seeks to impose tangible and
significant consequences on those
responsible for the ICC’s transgressions,
which may include the suspension of entry
into the United States of ICC officials,
employees, and agents, as well as their
immediate family members. The entry of
such aliens into the United States would be
detrimental to the interests of the United
States and denying them entry will further
demonstrate the resolve of the United States
in opposing the ICC’s overreach by seeking
to exercise jurisdiction over personnel of the
United States and our allies, as well as
personnel of countries that are not parties to
the Rome Statute or have not otherwise
consented to ICC jurisdiction.
I therefore determine that any attempt by
the ICC to investigate, arrest, detain, or
prosecute any United States personnel
without the consent of the United States, or
of personnel of countries that are United
States allies and who are not parties to the
Rome Statute or have not otherwise
consented to ICC jurisdiction, constitutes an
unusual and extraordinary threat to the
national security and foreign policy of the
United States, and I hereby declare a national
emergency to deal with that threat. I hereby
determine and order:
Section 1. (a) All property and interests in
property that are in the United States, that
hereafter come within the United States, or
that are or hereafter come within the
possession or control of any United States
person, of Start the following persons are
blocked and may not be transferred, paid,
exported, withdrawn, or otherwise dealt in:
(i) any foreign person determined by the
Secretary of State, in consultation with the
Secretary of the Treasury and the Attorney
General:
(A) to have directly engaged in any effort
by the ICC to investigate, arrest, detain, or
prosecute any United States personnel
without the consent of the United States;
(B) to have directly engaged in any effort
by the ICC to investigate, arrest, detain, or
prosecute any personnel of a country that is
an ally of the United States without the
consent of that country’s government;
(C) to have materially assisted, sponsored,
or provided financial, material, or
technological support for, or goods or
services to or in support of, any activity
described in subsection (a)(i)(A) or (a)(i)(B) of
this section or any person whose property
and interests in property are blocked
pursuant to this order; or
(D) to be owned or controlled by, or to have
acted or purported to act for or on behalf of,
directly or indirectly, any person whose
property and interests in property are
blocked pursuant to this order.
(b) The prohibitions in subsection (a) of
this section apply except to the extent
provided by statutes, or in regulations,
orders, directives, or licenses that may be
issued pursuant to this order, and
notwithstanding any contract entered into or
any license or permit granted before the date
of this order.
Sec. 2. I hereby determine that the making
of donations of the types of articles specified
in section 203(b)(2) of IEEPA (50 U.S.C.
1702(b)(2)) by, to, or for the benefit of any
person whose property and interests in
property are blocked pursuant to section 1(a)
of this order would seriously impair my
ability to deal with the national emergency
declared in this order, and I hereby prohibit
such donations as provided by section 1(a) of
this order.
Sec. 3. The prohibitions in section 1(a) of
this order include:
(a) the making of any contribution or
provision of funds, goods, or services by, to,
or for the benefit of any person whose
property and interests in property are
blocked pursuant to section 1(a) of this order;
and
(b) the receipt of any contribution or
provision of funds, goods, or services from
any such person.
Sec. 4. The unrestricted immigrant and
nonimmigrant entry into the United States of
aliens determined to meet one or more of the
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criteria in section 1(a) of this order, as well
as immediate family members of such aliens,
or aliens determined by the Secretary of State
to be employed by, or acting as an agent of,
the ICC, would be detrimental to the interests
of the United States, and the entry of such
persons into the United States, as immigrants
or nonimmigrants, is hereby suspended,
except where the Secretary of State
determines that the entry of the person into
the United States would not be contrary to
the interests of the United States, including
when the Secretary so determines, based on
a recommendation of the Attorney General,
that the person’s entry would further
important United States law enforcement
objectives. In exercising this responsibility,
the Secretary of State shall consult the
Secretary of Homeland Security on matters
related to admissibility or inadmissibility
within the authority of the Secretary of
Homeland Security. Such persons shall be
treated as persons covered by section 1 of
Proclamation 8693 of July 24, 2011
(Suspension of Entry of Aliens Subject to
United Nations Security Council Travel Bans
and International Emergency Economic
Powers Act Sanctions). The Secretary of State
shall have the responsibility for
implementing this section pursuant to such
conditions and procedures as the Secretary
has established or may establish pursuant to
Proclamation 8693.
Sec. 5. (a) Any transaction that evades or
avoids, has the purpose of evading or
avoiding, causes a violation of, or attempts to
violate any of the prohibitions set forth in
this order is prohibited.
(b) Any conspiracy formed to violate any
of the prohibitions set forth in this order is
prohibited.
Sec. 6. Nothing in this order shall prohibit
transactions for the conduct of the official
business of the Federal Government by
employees, grantees, or contractors thereof.
Sec. 7. For the purposes of this order:
(a) the term ‘‘person’’ means an individual
or entity;
(b) the term ‘‘entity’’ means a government
or instrumentality of such government,
partnership, association, trust, joint venture,
corporation, group, subgroup, or other
organization, including an international
organization;
(c) the term ‘‘United States person’’ means
any United States citizen, permanent resident
alien, entity organized under the laws of the
United States or any jurisdiction within the
United States (including foreign branches), or
any person in the United States;
(d) the term ‘‘United States personnel’’
means any current or former members of the
Armed Forces of the United States, any
current or former elected or appointed
official of the United States Government, and
any other person currently or formerly
employed by or working on behalf of the
United States Government;
(e) the term ‘‘personnel of a country that
is an ally of the United States’’ means any
current or former military personnel, current
or former elected or appointed official, or
other person currently or formerly employed
by or working on behalf of a government of
a North Atlantic Treaty Organization (NATO)
member country or a ‘‘major non-NATO
ally’’, as that term is defined by section
2013(7) of the American Service-Members’
Protection Act (22 U.S.C. 7432(7)); and
(f) the term ‘‘immediate family member’’
means spouses and children.
Sec. 8. For those persons whose property
and interests in property are blocked
pursuant to this order who might have a
constitutional presence in the United States,
I find that because of the ability to transfer
funds or other assets instantaneously, prior
notice to such persons of measures to be
taken pursuant to section 1 of this order
would render those measures ineffectual. I
therefore determine that for these measures
to be effective in addressing the national
emergency declared in this order, there need
be no prior notice of a listing or
determination made pursuant to section 1 of
this order.
Sec. 9. The Secretary of the Treasury, in
consultation with the Secretary of State, is
hereby authorized to take such actions,
including adopting rules and regulations, and
to employ all powers granted to me by IEEPA
as may be necessary to implement this order.
The Secretary of the Treasury may, consistent
with applicable law, redelegate any of these
functions within the Department of the
Treasury. All departments and agencies of
the United States shall take all appropriate
measures within their authority to implement
this order.
Sec. 10. The Secretary of the Treasury, in
consultation with the Secretary of State, is
hereby authorized to submit recurring and
final reports to the Congress on the national
emergency declared in this order, consistent
with section 401(c) of the NEA (50 U.S.C.
1641(c)) and section 204(c) of IEEPA (50
U.S.C. 1703(c)).
Sec. 11. (a) Nothing in this order shall be
construed to impair or otherwise affect:
(i) the authority granted by law to an
executive department or agency, or the head
thereof; or
(ii) the functions of the Director of the
Office of Management and Budget relating to
budgetary, administrative, or legislative
proposals.
(b) This order shall be implemented
consistent with applicable law and subject to
the availability of appropriations.
(c) This order is not intended to, and does
not, create any right or benefit, substantive or
procedural, enforceable at law or in equity by
any party against the United States, its
departments, agencies, or entities, its officers,
employees, or agents, or any other person.
DONALD J. TRUMP
THE WHITE HOUSE,
June 11, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020–21688 Filed 9–30–20; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 544 and 560
Weapons of Mass Destruction
Proliferators Sanctions Regulations
and Iranian Transactions and
Sanctions Regulations
AGENCY
: Office of Foreign Assets
Control, Treasury.
ACTION
: Final rule.
SUMMARY
: The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is amending the
Weapons of Mass Destruction
Proliferators Sanctions Regulations
(WMD Regulations) to update a note to
describe how persons designated
pursuant to the WMD Regulations for
North Korea-related activities are
identified on OFAC’s Specially
Designated Nationals and Blocked
Persons List (SDN List). Specifically,
OFAC is amending the note to explain
that SDN List entries for these
designated persons will include
additional information regarding certain
risks associated with dealings with such
persons. Separately, OFAC is amending
the Iranian Transactions and Sanctions
Regulations to refine the list of
organizations whose activities are
authorized under the general license for
the official business of certain
international organizations, and to make
a technical correction. OFAC is also
making technical edits to the authority
citations in both sets of regulations to
conform to Federal Register guidance.
DATES
: This rule is effective October 1,
2020.
FOR FURTHER INFORMATION CONTACT
:
OFAC: Assistant Director for Licensing,
tel.: 202–622–2480; Assistant Director
for Regulatory Affairs, tel.: 202–622–
4855; or Assistant Director for Sanctions
Compliance & Evaluation, tel.: 202–622–
2490.
SUPPLEMENTARY INFORMATION
:
Electronic Availability
This document and additional
information concerning OFAC are
available on OFAC’s website
(www.treasury.gov/ofac).
Background
Weapons of Mass Destruction
Proliferators Sanctions Regulations
On April 13, 2009, OFAC issued the
Weapons of Mass Destruction
Proliferators Sanctions Regulations, 31
CFR part 544 (74 FR 16771, April 13,
2009) (‘‘WMD Regulations’’), to
implement Executive Order 13382 of
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