Iranian Financial Sanctions Regulations and Iranian Human Rights Abuses Sanctions Regulations
| Published date | 07 August 2019 |
| Citation | 84 FR 38545 |
| Record Number | 2019-16842 |
| Section | Rules and Regulations |
| Court | Foreign Assets Control Office |
Federal Register, Volume 84 Issue 152 (Wednesday, August 7, 2019)
[Federal Register Volume 84, Number 152 (Wednesday, August 7, 2019)]
[Rules and Regulations]
[Pages 38545-38551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16842]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 84, No. 152 / Wednesday, August 7, 2019 /
Rules and Regulations
[[Page 38545]]
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 561 and 562
Iranian Financial Sanctions Regulations and Iranian Human Rights
Abuses Sanctions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is amending the Iranian Financial Sanctions Regulations,
changing the heading of the Iranian Human Rights Abuses Sanctions
Regulations to the Iranian Sector and Human Rights Abuses Sanctions
Regulations, and amending the renamed Iranian Sector and Human Rights
Abuses Sanctions Regulations to implement Executive Order 13871 of May
8, 2019 (``Imposing Sanctions With Respect to the Iron, Steel, Aluminum
and Copper Sectors of Iran'').
DATES: Effective Date: August 7, 2019.
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 August 16, 2010, OFAC issued the Iranian Financial Sanctions
Regulations, 31 CFR part 561 (75 FR 49836, August 16, 2010) (IFSR) to
implement provisions of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (Pub. L. 111-195) (22 U.S.C.
8501-8551). Since then, OFAC has amended the IFSR several times.
On February 11, 2011, OFAC issued the Iranian Human Rights Abuses
Sanctions Regulations, 31 CFR part 562 (76 FR 7695, February 11, 2011)
(Iranian Human Rights Regulations) to implement Executive Order 13553
of September 28, 2010 (75 FR 60567, October 1, 2010) (E.O. 13553). The
Iranian Human Rights Regulations were published in abbreviated form for
the purpose of providing immediate guidance to the public. OFAC amended
the Iranian Human Rights Regulations on June 30, 2011 (76 FR 38534,
June 30, 2011).
On May 8, 2019, the President, invoking the authority of, inter
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706) (IEEPA), issued Executive Order 13871 (84 FR 20761, May 10, 2019)
(E.O. 13871). In E.O. 13871, the President found that it remains the
policy of the United States to deny Iran all paths to both a nuclear
weapon and intercontinental ballistic missiles, and to counter the
totality of Iran's malign influence in the Middle East. He also found
it is the policy of the United States to deny the Iranian government
revenue, including revenue derived from the export of products from
Iran's iron, steel, aluminum, and copper sectors, that may be used to
provide funding and support for the proliferation of weapons of mass
destruction, terrorist groups and networks, campaigns of regional
aggression, and military expansion. In light of these findings, the
President issued E.O. 13871 in order to take further steps with respect
to the national emergency declared with respect to the actions and
polices of the Government of Iran in Executive Order 12957 of March 15,
1995 (60 FR 14615, March 17, 1995), and to supplement the authorities
provided in the Iran Freedom and Counter-Proliferation Act of 2012
(subtitle D of title XII of Pub. L. 112-239).
Section 1(a) of E.O. 13871 blocks, with certain exceptions, all
property and interests in property that are in the United States, that
come within the United States, or that are or come within the
possession or control of any U.S. person of any person determined by
the Secretary of the Treasury, in consultation with the Secretary of
State: (i) To be operating in the iron, steel, aluminum, or copper
sector of Iran, or to be a person that owns, controls, or operates an
entity that is part of the iron, steel, aluminum, or copper sector of
Iran; (ii) to have knowingly engaged, on or after May 8, 2019, in a
significant transaction for the sale, supply, or transfer to Iran of
significant goods or services used in connection with the iron, steel,
aluminum, or copper sectors of Iran; (iii) to have knowingly engaged,
on or after May 8, 2019, in a significant transaction for the purchase,
acquisition, sale, transport, or marketing of iron, iron products,
aluminum, aluminum products, steel, steel products, copper, or copper
products from Iran; (iv) to have materially assisted, sponsored, or
provided financial, material, or technological support for, or goods or
services in support of, any person whose property and interests in
property are blocked pursuant to section 1 of E.O. 13871; or (v) 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 section 1 of E.O. 13871.
The property and interests in property of the persons described above
may not be transferred, paid, exported, withdrawn, or otherwise dealt
in.
Section 2(a) of E.O. 13871 authorizes the Secretary of the
Treasury, in consultation with the Secretary of State, to impose
certain sanctions on a foreign financial institution (FFI) upon
determining the FFI has, on or after May 8, 2019, knowingly conducted
or facilitated any significant financial transaction: (i) For the sale,
supply, or transfer to Iran of significant goods or services used in
connection with the iron, steel, aluminum, or copper sectors of Iran;
(ii) for the purchase, acquisition, sale, transport, or marketing of
iron, iron products, aluminum, aluminum products, steel, steel
products, copper, or copper products from Iran; or (iii) for or on
behalf of any person whose property and interests in property are
blocked pursuant to E.O. 13871. Section 2(b) of E.O. 13871 provides
that, with respect to any FFI determined to meet any of the criteria
section 2(a)(i) through (iii) of E.O. 13871, the Secretary of the
Treasury may prohibit the opening, and prohibit or impose strict
conditions on
[[Page 38546]]
the maintaining, in the United States of a correspondent account or
payable-through account by such FFI.
In Section 3 of E.O. 13871, the President determined that the
making of donations of certain articles, such as food, clothing, and
medicine, intended to be used to relieve human suffering, as 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 E.O. 13871 would seriously impair his ability to
deal with the national emergency declared in E.O. 12957. The President
therefore prohibited the donation of such items unless authorized by
OFAC.
Section 4 of E.O. 13871 provides that the prohibition on any
transaction or dealing in blocked property or interests in property
includes 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 E.O. 13871 and the
receipt of any contribution or provision of funds, goods, or services
from any such person.
Section 6 of E.O. 13871 prohibits any transaction that evades or
avoids, has the purpose of evading or avoiding, or attempts to violate
any of the prohibitions set forth in E.O. 13871, as well as any
conspiracy formed to violate such prohibitions.
Section 7 of E.O. 13871 exempts transactions for the conduct of the
official business of the Federal Government or the United Nations
(including its specialized agencies, programmes, funds, and related
organizations) by employees, grantees, or contractors thereof.
Section 10 of E.O. 13871 authorizes the Secretary of the Treasury,
in consultation with the Secretary of State, to take such actions,
including the promulgation of rules and regulations, and to employ all
powers granted to the President by IEEPA, as may be necessary to carry
out the purposes of E.O. 13871. Section 10 of E.O. 13871 also provides
that the Secretary of the Treasury may, consistent with applicable law,
redelegate any of these functions within the Department of the
Treasury.
Section 12 of E.O. 13871 states that the measures taken pursuant to
E.O. 13871 are in response to actions of the Government of Iran
occurring after the conclusion of the 1981 Algiers Accords, and are
intended solely as a response to those later actions.
As set forth in more detail below, OFAC is implementing the
correspondent or payable-through account sanctions set forth in section
2 of E.O. 13871 in the IFSR, 31 CFR part 561, and the blocking
sanctions set forth in section 1 of E.O. 13871 in the Iranian Human
Rights Regulations, 31 CFR part 562. Additionally, OFAC is renaming the
Iranian Human Rights Regulations, 31 CFR part 562, as the Iranian
Sector and Human Rights Abuses Sanctions Regulations (ISHR).
Amendments to the IFSR
OFAC is redesignating the existing Sec. 561.205 as Sec. 561.220
and adding a new Sec. 561.205 to subpart B of the IFSR to implement
the correspondent account or payable-through account sanctions in
section 2 of E.O. 13871. Additionally, in subpart C, which defines key
terms used throughout the IFSR, OFAC is adding new Sec. Sec. 561.331
through 561.339 to provide definitions of aluminum, aluminum products,
aluminum sector of Iran, copper, copper products, copper sector of
Iran, iron, iron products, steel, steel products, iron sector of Iran,
and steel sector of Iran. OFAC also is making conforming edits to Sec.
561.301, relating to the effective date of applicable prohibitions,
Sec. 561.403, relating to facilitation, Sec. 561.404, relating to
determinations of significance, Sec. 561.504, relating to an
authorization for transactions related to closing a correspondent or
payable-through account, and Sec. 561.802, relating to the delegation
of authority by the Secretary of the Treasury.
Changing the Heading of the Iranian Human Rights Regulations to the
Iranian Sector and Human Rights Abuses Sanctions Regulations and
Amending the Newly Renamed Regulations
OFAC is changing the heading of the Iranian Human Rights Abuses
Regulations, 31 CFR part 562, to the Iranian Sector and Human Rights
Abuses Sanctions Regulations (ISHR) and amending the renamed
regulations to implement section 1 of E.O. 13871.
OFAC is adding a new Sec. 562.204 to the ISHR to implement the
blocking sanctions in section 1 of E.O. 13871. In subpart C of the
ISHR, which defines key terms used throughout the ISHR, OFAC is adding
new Sec. Sec. 562.312 through 562.320 to provide definitions of
aluminum, aluminum products, aluminum sector of Iran, copper, copper
products, copper sector of Iran, iron, iron products, steel, steel
products, iron sector of Iran, and steel sector of Iran. The
definitions are the same as the corresponding definitions that are
being added to the IFSR. In subpart D of the ISHR, which contains
interpretive sections, OFAC is adding Sec. 562.407 setting forth the
types of factors that, as a general matter, the Secretary of the
Treasury will consider in determining, for purposes of section 1(a)(ii)
and 1(a)(iii) of Executive Order 13871, whether transactions are
significant. OFAC also is making conforming edits to Sec. 562.302,
relating to the effective dates of applicable prohibitions, and Sec.
562.802, relating to the delegation of authorities by the Secretary of
the Treasury. Finally, the text of E.O. 13871 is being added to part
562 as appendix B. OFAC intends to supplement part 562 with a more
comprehensive set of regulations, which may include additional
interpretative and definitional guidance and additional general
licenses and statements of licensing policy.
Public Participation
Because the amendment of the IFSR and the ISHR involves 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 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 Sec. 561.601 of the IFSR
and to the ISHR are contained in OFAC's Reporting, Procedures and
Penalties Regulations, 31 CFR part 501. 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
(OMB) under control number 1505-0164. The collection of information in
section 561.504 of the IFSR has been approved by OMB under control
number 1505-0243. 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
31 CFR Part 561
Administrative practice and procedure, Aluminum, Banks, banking,
Copper, correspondent account, Foreign Financial Institution, Iran,
Iron, Metals, Payable-through account, Sanctions, Steel.
[[Page 38547]]
31 CFR Part 562
Administrative practice and procedure, Aluminum, Banks, banking,
Blocking of assets, Copper, Iran, Iron, Metals, Sanctions, Steel.
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR chapter V as
follows:
PART 561--IRANIAN FINANCIAL SANCTIONS REGULATIONS
0
1. The authority citation for part 561 is revised to read as follows:
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);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-
195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat.
1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C.
8701-8795); E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O.
13553, 75 FR 60567, 3 CFR, 2010 Comp., p. 253; E.O. 13599, 77 FR
6659, 3 CFR, 2012 Comp., p. 215; E.O. 13846, 83 FR 38939; E.O.
13871, 84 FR 20761.
Subpart B--Prohibitions
Sec. 561.205 [Redesignated as Sec. 561.220]
0
2. Redesignate Sec. 561.205 as Sec. 561.220.
0
3. Add new Sec. 561.205 to read as follows:
Sec. 561.205 Metals-related sanctions on certain foreign financial
institutions.
(a) Imposition of sanctions. Subject to the exemptions set forth in
paragraph (d) of this section, upon a determination by the Secretary of
the Treasury, in consultation with the Secretary of State, that a
foreign financial institution has, on or after May 8, 2019, knowingly
engaged in one or more of the activities described in paragraph (b) of
this section, the Secretary of the Treasury may:
(1) Prohibit U.S. financial institutions from opening a
correspondent account or a payable-through account in the United States
for the foreign financial institution with respect to which the
determination has been made; and either
(2)(i) Prohibit U.S. financial institutions from maintaining a
correspondent account or a payable-through account in the United States
for the foreign financial institution with respect to which the
determination has been made; or
(ii) Impose one or more strict conditions on the maintaining of a
correspondent account or payable-through account in the United States
for the foreign financial institution with respect to which the
determination has been made.
Note 1 to paragraph (a): The name of any foreign financial
institution with respect to which a determination has been made
pursuant to this paragraph (a), along with the relevant sanctions to
be imposed (prohibition(s) and/or strict condition(s)), will be
added to the List of Foreign Financial Institutions Subject to
Correspondent Account or Payable-Through Account Sanctions (CAPTA
List), which is maintained on the Office of Foreign Assets Control's
website (www.treasury.gov/ofac), and published in the Federal
Register.
Note 2 to paragraph (a): See Sec. 561.203(b) for examples of
strict conditions that might be imposed, pursuant to paragraph
(a)(2)(ii) of this section, on the maintaining of a correspondent
account or payable-through account for a foreign financial
institution with respect to which the Secretary of the Treasury's
determination has been made.
(b) Sanctionable activity. A foreign financial institution has
engaged in an activity described in this paragraph if it knowingly
conducted or facilitated, on or after May 8, 2019, any significant
financial transaction:
(1) For the sale, supply, or transfer to Iran of significant goods
or services used in connection with the iron, steel, aluminum, or
copper sectors of Iran;
(2) For the purchase, acquisition, sale, transport, or marketing of
iron, iron products, aluminum, aluminum products, steel, steel
products, copper, or copper products from Iran; or
(3) For or on behalf of any person whose property and interests in
property are blocked pursuant to Executive Order 13871.
(c) Prohibitions. (1) A U.S. financial institution shall not open a
correspondent account or payable-through account in the United States
for a foreign financial institution for which the opening of such an
account is prohibited pursuant to paragraph (a)(1) of this section.
(2) A U.S. financial institution shall not maintain a correspondent
account or payable-through account in the United States for a foreign
financial institution for which the maintaining of such an account is
prohibited pursuant to paragraph (a)(2)(i) of this section.
(3) A U.S. financial institution shall not maintain a correspondent
account or payable-through account in the United States for a foreign
financial institution in a manner that is inconsistent with any strict
condition imposed and in effect pursuant to paragraph (a)(2)(ii) of
this section.
(4) The prohibitions in paragraphs (c)(1) through (c)(3) of this
section apply except to the extent provided by regulations, orders,
directives, or licenses that may be issued pursuant to this part, and
notwithstanding any contract entered into or any license or permit
granted prior to the effective date.
(d) Exempt activity. Nothing in this section shall apply to
transactions for the conduct of the official business of the Federal
Government or the United Nations (including its specialized agencies,
programmes, funds, and related organizations) by employees, grantees,
or contractors thereof.
Subpart C--General Definitions
0
4. In Sec. 561.301, revise paragraph (a) and add new paragraph (d) to
read as follows:
Sec. 561.301 Effective date.
(a) The effective date of a prohibition or condition imposed
pursuant to Sec. Sec. 561.201, 561.203, 561.204, or 561.205 on the
opening or maintaining of a correspondent account or a payable-through
account in the United States by a U.S. financial institution for a
particular foreign financial institution is the earlier of the date the
U.S. financial institution receives actual or constructive notice of
such prohibition or condition.
* * * * *
(d) For the purposes of this section, constructive notice is the
date that notice of the blocking of the relevant person's property and
interests in property is published in the Federal Register.
0
5. Add Sec. 561.331 through Sec. 561.337 to read as follows:
Sec.
* * * * *
561.331 Aluminum, Aluminum products.
561.332 Aluminum sector of Iran.
561.333 Copper, Copper products.
561.334 Copper sector of Iran.
561.335 Iron, Iron products, Steel, Steel products.
561.336 Iron sector of Iran.
561.337 Steel sector of Iran.
* * * * *
Sec. 561.331 Aluminum, Aluminum products.
The terms aluminum and aluminum products mean any raw, semi-
fabricated, fabricated, or finished form of aluminum or aluminum alloy
of all grades, sizes, and thicknesses, including in the following
forms: Ores and concentrates (e.g., bauxite and alumina); unwrought
aluminum including ingots, slabs, and billets; powders and flakes;
wrought aluminum including bars, rods, profiles, plates, sheets, strip,
foil, tubes, and pipes; tube or pipe fittings; reservoirs, tanks, vats,
and similar containers; wire, stranded wire, ropes, cables, and plaited
band; castings,
[[Page 38548]]
stampings, and forgings; waste and scrap, including slag, and any
aluminum and aluminum products produced from the melting or recycling
of aluminum scrap.
Sec. 561.332 Aluminum sector of Iran.
The term aluminum sector of Iran means the mining, refining,
processing, or manufacturing of aluminum or aluminum products in Iran.
Sec. 561.333 Copper, Copper products.
The terms copper and copper products mean any raw, semi-fabricated,
fabricated, or finished form of copper or copper alloy of all grades,
sizes, and thicknesses, including in the following forms: Ores and
concentrates; copper mattes, cement copper (precipitated copper);
refined, unrefined, wrought, or unwrought copper; billets; cathodes;
bars, rods, profiles, plates, sheets, strips, foil, tubes, and pipes;
tube and pipe fittings; powders and flakes; reservoirs, tanks, vats,
and similar containers; wire, stranded wire, ropes, cables, and plaited
band; castings, stampings, and forgings; and waste and scrap, including
slag.
Sec. 561.334 Copper sector of Iran.
The term copper sector of Iran means the mining, refining,
processing, or manufacturing of copper or copper products in Iran.
Sec. 561.335 Iron, Iron products, Steel, Steel products.
The terms iron, iron products, steel, and steel products mean any
raw, semi-fabricated, fabricated, or finished form of iron, iron alloy,
alloy steel, non-alloy steel, ferroalloys, pig iron, and spiegeleisen
of all grades, sizes, and thicknesses, whether or not clad, plated, or
coated, including in the following forms: Iron ores and concentrates
including roasted iron pyrites; pigs and blocks; ferrous products
obtained by direct reduction of iron ore and other spongy ferrous
products, in lumps or pellets; granules and powders; ingots, blooms
billets, slabs, and beam blanks; flat-rolled products (plates, sheets,
strips, and foils) either cut-to-length or in coils; bars, and rods;
structural profiles (beams, channels, angles, and other shapes); sheet
piling; railway or tramway track construction materials; tubes, pipes,
and hollow profiles; tube or pipe fittings; reservoirs, tanks, vats,
and similar containers; wire, stranded wire, ropes, cables, and plaited
band; castings, stampings, and forgings; and ferrous waste and scrap,
including slag.
Sec. 561.336 Iron sector of Iran.
The term iron sector of Iran means the mining, refining,
processing, or manufacturing of iron or iron products in Iran.
Sec. 561.337 Steel sector of Iran.
The term steel sector of Iran means the iron-ore smelting, ferrous-
scrap melting, refining, processing, or manufacturing of steel or steel
products in Iran.
Subpart D--Interpretations
0
6. Revise Sec. 561.403 to read as follows:
Sec. 561.403 Facilitation of certain efforts, activities, or
transactions by foreign financial institutions.
For purposes of Sec. Sec. 561.201, 561.203, 561.204, and 561.205,
the term facilitate or facilitated used with respect to certain
efforts, activities, or transactions refers to the provision of
assistance by a foreign financial institution for those efforts,
activities, or transactions, including the provision of currency,
financial instruments, securities, or any other transmission of value;
purchasing; selling; transporting; swapping; brokering; financing;
approving; guaranteeing; or the provision of other services of any
kind; or the provision of personnel; or the provision of software,
technology, or goods of any kind.
0
7. In Sec. 561.404, revise the introductory paragraph to read as
follows:
Sec. 561.404 Significant transaction or transactions; significant
financial services; significant financial transaction.
In determining, for purposes of paragraph (a)(5) of Sec. 561.201,
whether a transaction is significant, whether transactions are
significant, or whether financial services are significant, or, for
purposes of paragraph (a) of Sec. 561.203, paragraph (b) of Sec.
561.204, and paragraph (b) of Sec. 561.205 whether a financial
transaction is significant, the Secretary of the Treasury may consider
the totality of the facts and circumstances. As a general matter, the
Secretary may consider some or all of the following factors:
* * * * *
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
8. In Sec. 561.504, revise the introductory paragraph to read as
follows:
Sec. 561.504 Transactions related to closing a correspondent account
or payable-through account.
(a) During the 10-day period beginning on the effective date of the
prohibition in Sec. 561.201(c), Sec. 561.203(c)(2), Sec.
561.204(c)(2), Sec. 561.205(a), or Sec. 561.205(c) on the maintaining
of a correspondent account or a payable-through account for a foreign
financial institution whose name is added to the List of Foreign
Financial Institutions Subject to Correspondent Account or Payable-
Through Account Sanctions (CAPTA List), which is maintained on the
Office of Foreign Assets Control's website (www.treasury.gov/ofac),
U.S. financial institutions that maintain correspondent accounts or
payable-through accounts for the foreign financial institution are
authorized to:
* * * * *
Subpart H--Procedures
0
9. Revise Sec. 561.802 to read as follows:
Sec. 561.802 Delegation of certain authorities of the Secretary of
the Treasury.
Any action that the Secretary of the Treasury is authorized to take
pursuant to subsections 104(c), (d), (h), or (i), or section 104A of
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of
2010 (Pub. L. 111-195) (22 U.S.C. 8501-8551), as amended by the Iran
Threat Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-158)
(22 U.S.C. 8701-8795), pursuant to Executive Order 13553 of September
28, 2010 (75 FR 60567, October 1, 2010), Executive Order 13599 of
February 5, 2012 (77 FR 6659, February 8, 2012), Executive Order 13846
of August 6, 2018 (83 FR 38939, August 7, 2018), Executive Order 13871
of May 8, 2019 (84 FR 20761, May 10, 2019), or any further Executive
order relating to the national emergency declared in Executive Order
12957 of March 15, 1995, and any action of the Secretary of the
Treasury described in this part, may be taken by the Director of the
Office of Foreign Assets Control or by any other person to whom the
Secretary of the Treasury has delegated authority so to act.
PART 562--IRANIAN SECTOR AND HUMAN RIGHTS ABUSES SANCTIONS
REGULATIONS
0
10. Revise the heading of Part 562 to read as set forth above:
0
11. The authority citation for part 562 is revised to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 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); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705
note); Pub. L. 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); E.O.
12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 13553, 75 FR
60567, October 1, 2010; E.O. 13871, 84 FR 20761, May 10, 2019.
[[Page 38549]]
Subpart B-Prohibitions
0
12. Revise Sec. 562.201 to read as follows:
Sec. 562.201 Prohibited transactions.
(a) All transactions prohibited pursuant to Executive Order 13553
are also prohibited pursuant to this part.
(b) All transactions prohibited pursuant to sections 1 and 6 of
Executive Order 13871 are also prohibited pursuant to this part.
Note 1 to paragraph (b): Section 2 of Executive Order 13871 is
implemented in section 561.205 of the Iranian Financial Sanctions
Regulations, 31 CFR part 561.
Note 1 to Sec. 562.201: The names of persons listed in or
designated pursuant to Executive Order 13553, whose property and
interests in property therefore are blocked pursuant to this
section, are published in the Federal Register and incorporated into
the Office of Foreign Assets Control's Specially Designated
Nationals and Blocked Persons List (``SDN List'') with the
identifier ``[IRAN-HR].'' The names of persons designated pursuant
to section 1 of Executive Order 13871, whose property and interests
in property therefore are blocked pursuant to this section, are
published in the Federal Register and incorporated into the SDN List
with the identifier ``[IRAN-EO13871].'' The SDN List is accessible
through the following page on the Office of Foreign Assets Control's
website: http://www.treasury.gov/sdn. Additional information
pertaining to the SDN List can be found in appendix A to this
chapter. See Sec. 562.406 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 Sec. 562.201: 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 Executive Order 13553 also are published
in the Federal Register and incorporated into the SDN List with the
identifier ``[BPI-IRAN-HR].'' The names of persons whose property
and interests in property are blocked pending investigation pursuant
to Executive Order 13871 also are published in the Federal Register
and incorporated into the SDN List with the identifier ``[BPI-IRAN-
EO13871].''
Note 3 to Sec. 562.201: Sections 501.806 and 501.807 of this
chapter describe the 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.
Subpart C--General Definitions
0
13. Revise Sec. 562.302 to read as follows:
Sec. 562.302 Effective date.
(a) The term effective date refers to the effective date of the
applicable prohibitions and directives contained in this part as
follows:
(1) With respect to a person listed in the Annex to Executive Order
13553, 12:01 a.m. eastern daylight time, September 29, 2010;
(2) With respect to a person whose property and interests in
property are otherwise blocked pursuant to Executive Order 13553, the
earlier of the date of actual or constructive notice that such person's
property and interests in property are blocked; and
(3) With respect to a person whose property and interests in
property are blocked pursuant to Executive Order 13871, 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.
0
14. Add Sec. 562.312 through Sec. 562.318 to read as follows:
Sec.
* * * * *
562.312 Aluminum, Aluminum products.
562.313 Aluminum sector of Iran.
562.314 Copper, Copper products.
562.315 Copper sector of Iran.
562.316 Iron, Iron products, Steel, Steel products.
562.317 Iron sector of Iran.
562.318 Steel sector of Iran.
* * * * *
Sec. 562.312 Aluminum, Aluminum products.
The terms aluminum and aluminum products mean any raw, semi-
fabricated, fabricated, or finished form of aluminum or aluminum alloy
of all grades, sizes, and thicknesses, including in the following
forms: Ores and concentrates (e.g., bauxite and alumina); unwrought
aluminum including ingots, slabs, and billets; powders and flakes;
wrought aluminum including bars, rods, profiles, plates, sheets, strip,
foil, tubes, and pipes; tube or pipe fittings; reservoirs, tanks, vats,
and similar containers; wire, stranded wire, ropes, cables, and plaited
band; castings, stampings, and forgings; waste and scrap, including
slag, and any aluminum and aluminum products produced from the melting
or recycling of aluminum scrap.
Sec. 562.313 Aluminum sector of Iran.
The term aluminum sector of Iran means the mining, refining,
processing, or manufacturing of aluminum or aluminum products in Iran.
Sec. 562.314 Copper, Copper products.
The terms copper and copper products mean any raw, semi-fabricated,
fabricated, or finished form of copper or copper alloy of all grades,
sizes, and thicknesses, including in the following forms: Ores and
concentrates; copper mattes, cement copper (precipitated copper);
refined, unrefined, wrought, or unwrought copper; billets; cathodes;
bars, rods, profiles, plates, sheets, strips, foil, tubes, and pipes;
tube and pipe fittings; powders and flakes; reservoirs, tanks, vats,
and similar containers; wire, stranded wire, ropes, cables, and plaited
band; castings, stampings, and forgings; and waste and scrap, including
slag.
Sec. 562.315 Copper sector of Iran.
The term copper sector of Iran means the mining, refining,
processing, or manufacturing of copper or copper products in Iran.
Sec. 562.316 Iron, Iron products, Steel, Steel products.
The terms iron, iron products, steel, and steel products mean any
raw, semi-fabricated, fabricated, or finished form of iron, iron alloy,
alloy steel, non-alloy steel, ferroalloys, pig iron, and spiegeleisen
of all grades, sizes, and thicknesses, whether or not clad, plated, or
coated, including in the following forms: Iron ores and concentrates,
including roasted iron pyrites; pigs and blocks; ferrous products
obtained by direct reduction of iron ore and other spongy ferrous
products, in lumps or pellets; granules and powders; ingots, blooms
billets, slabs, and beam blanks; flat-rolled products (plates, sheets,
strips, and foils) either cut-to-length or in coils; bars and rods;
structural profiles (beams, channels, angles, and other shapes); sheet
piling; railway or tramway track construction materials; tubes, pipes,
and hollow profiles; tube or pipe fittings; reservoirs, tanks, vats,
and similar containers; wire, stranded wire, ropes, cables, and plaited
band; castings, stampings, and forgings; and ferrous waste and scrap,
including slag.
Sec. 562.317 Iron sector of Iran.
The term iron sector of Iran means the mining, refining,
processing, or manufacturing of iron or iron products in Iran.
Sec. 562.318 Steel sector of Iran.
The term steel sector of Iran means the iron-ore smelting, ferrous-
scrap melting, refining, processing, or
[[Page 38550]]
manufacturing of steel or steel products in Iran.
Subpart D--Interpretations
0
15. Add Sec. 562.407 to read as follows:
Sec. 562.407 Significant transaction or transactions.
In determining, for purposes of section 1(a)(ii) and 1(a)(iii) of
Executive Order 13871, whether a transaction is significant, the
Secretary of the Treasury may consider the totality of the facts and
circumstances. As a general matter, the Secretary may consider some or
all of the following factors:
(a) Size, number, and frequency. The size, number, and frequency of
transactions performed, over a period of time, including whether the
transactions are increasing or decreasing over time and the rate of
increase or decrease.
(b) Nature. The nature of the transaction(s), or the goods or
services for sale, supply, or transfer, including the type, complexity,
and commercial purpose of the transaction(s), or the goods or services
for sale, supply, or transfer.
(c) Level of Awareness; Pattern of Conduct. (1) Whether the
transaction(s) is performed with the involvement or approval of
management or only by clerical personnel; and
(2) Whether the transaction(s) is part of a pattern of conduct or
the result of a business development strategy.
(d) Nexus. The proximity between the person that engaged in the
transaction(s) and the activity described in sections 1(a)(ii) and
(iii) of Executive Order 113871.
(e) Impact. The impact of the transaction(s) on the objectives of
Executive Order 13871, including the economic or other benefit
conferred or attempted to be conferred on Iran or the iron, steel,
aluminum, and copper sectors of Iran.
(f) Deceptive practices. Whether the transaction(s) involves an
attempt to obscure or conceal the actual parties or true nature of the
transaction(s), or to evade sanctions.
(g) Other relevant factors. Such other factors that the Secretary
deems relevant on a case-by-case basis in determining the significance
of a transaction(s) or the sale, supply, or transfer of goods or
services.
Subpart H--Procedures
0
16. Revise Sec. 562.802 to read as follows:
Sec. 562.802 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 13553 of September 28, 2010 (75 FR 60567,
October 1, 2010), Executive Order 13871 of May 8, 2019 (84 FR 20761,
May 10, 2019) and any further Executive orders relating to the national
emergency declared in Executive Order 12957 of March 17, 1995, may be
taken by the Director of Office of Foreign Assets Control or by any
other person to whom the Secretary of the Treasury has delegated
authority so to act.
0
17. Add appendix B to part 562 to read as follows:
Appendix B to Part 562--Executive Order 13871 of May 8, 2019
Executive Order 13871 of May 8, 2019
Imposing Sanctions With Respect to the Iron, Steel, Aluminum, and
Copper Sectors of Iran
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.),
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: It remains the policy of the United States to deny Iran
all paths to both a nuclear weapon and intercontinental ballistic
missiles, and to counter the totality of Iran's malign influence in
the Middle East. It is also the policy of the United States to deny
the Iranian government revenue, including revenue derived from the
export of products from Iran's iron, steel, aluminum, and copper
sectors, that may be used to provide funding and support for the
proliferation of weapons of mass destruction, terrorist groups and
networks, campaigns of regional aggression, and military expansion.
In light of these findings and in order to take further steps
with respect to the national emergency declared in Executive Order
12957 of March 15, 1995, and to supplement the authorities provided
in the Iran Freedom and Counter-Proliferation Act of 2012 (subtitle
D of title XII of Public Law 112-239), I hereby 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 the following persons are blocked and
may not be transferred, paid, exported, withdrawn, or otherwise
dealt in: any person determined by the Secretary of the Treasury, in
consultation with the Secretary of State:
(i) To be operating in the iron, steel, aluminum, or copper
sector of Iran, or to be a person that owns, controls, or operates
an entity that is part of the iron, steel, aluminum, or copper
sector of Iran;
(ii) to have knowingly engaged, on or after the date of this
order, in a significant transaction for the sale, supply, or
transfer to Iran of significant goods or services used in connection
with the iron, steel, aluminum, or copper sectors of Iran;
(iii) to have knowingly engaged, on or after the date of this
order, in a significant transaction for the purchase, acquisition,
sale, transport, or marketing of iron, iron products, aluminum,
aluminum products, steel, steel products, copper, or copper products
from Iran;
(iv) to have materially assisted, sponsored, or provided
financial, material, or technological support for, or goods or
services in support of any person whose property and interests in
property are blocked pursuant to this section; or
(v) 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
section.
(b) The prohibitions in 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. (a) The Secretary of the Treasury, in consultation with
the Secretary of State, is hereby authorized to impose on a foreign
financial institution the sanctions described in subsection (b) of
this section upon determining that the foreign financial institution
has, on or after the date of this order, knowingly conducted or
facilitated any significant financial transaction:
(i) For the sale, supply, or transfer to Iran of significant
goods or services used in connection with the iron, steel, aluminum,
or copper sectors of Iran;
(ii) for the purchase, acquisition, sale, transport, or
marketing of iron, iron products, aluminum, aluminum products,
steel, steel products, copper, or copper products from Iran; or
(iii) for or on behalf of any person whose property and
interests in property are blocked pursuant to this order.
(b) With respect to any foreign financial institution determined
by the Secretary of the Treasury in accordance with this section to
meet any of the criteria set forth in subsection (a)(i) through
(a)(iii) of this section, the Secretary of the Treasury may prohibit
the opening, and prohibit or impose strict conditions on
maintaining, in the United States of a correspondent account or
payable-through account by such foreign financial institution.
(c) The prohibitions in subsection (b) 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. 3. 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 this order would
seriously impair my ability to deal with the national emergency
declared in Executive Order 12957, and I hereby prohibit such
donations as provided by this section.
Sec. 4. The prohibitions in section 1 of this order include:
[[Page 38551]]
(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 subsection (a) of
that section; and
(b) the receipt of any contribution or provision of funds,
goods, or services from any such person.
Sec. 5. The unrestricted immigrant and nonimmigrant entry into
the United States of aliens determined to meet one or more of the
criteria in subsection 1(a) of this order 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 therefore
hereby suspended. 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).
Sec. 6. (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. 7. Nothing in this order shall apply to transactions for
the conduct of the official business of the Federal Government or
the United Nations (including its specialized agencies, programmes,
funds, and related organizations) by employees, grantees, or
contractors thereof.
Sec. 8. For the purposes of this order:
(a) The term ``entity'' means a partnership, association, trust,
joint venture, corporation, group, subgroup, or other organization;
(b) the term ``foreign financial institution'' means any foreign
entity that is engaged in the business of accepting deposits,
making, granting, transferring, holding, or brokering loans or
credits, or purchasing or selling foreign exchange, securities,
commodity futures or options, or procuring purchasers and sellers
thereof, as principal or agent. It includes, but is not limited to,
depository institutions, banks, savings banks, money service
businesses, trust companies, securities brokers and dealers,
commodity futures and options brokers and dealers, forward contract
and foreign exchange merchants, securities and commodities
exchanges, clearing corporations, investment companies, employee
benefit plans, dealers in precious metals, stones, or jewels, and
holding companies, affiliates, or subsidiaries of any of the
foregoing. The term does not include the international financial
institutions identified in 22 U.S.C. 262r(c)(2), the International
Fund for Agricultural Development, the North American Development
Bank, or any other international financial institution so notified
by the Secretary of the Treasury;
(c) the term ``Government of Iran'' includes the Government of
Iran, any political subdivision, agency, or instrumentality thereof,
including the Central Bank of Iran, and any person owned or
controlled by, or acting for or on behalf of, the Government of
Iran;
(d) the term ``Iran'' means the Government of Iran and the
territory of Iran and any other territory or marine area, including
the exclusive economic zone and continental shelf, over which the
Government of Iran claims sovereignty, sovereign rights, or
jurisdiction, provided that the Government of Iran exercises partial
or total de facto control over the area or derives a benefit from
economic activity in the area pursuant to international
arrangements;
(e) the term ``knowingly,'' with respect to conduct, a
circumstance, or a result, means that a person has actual knowledge,
or should have known, of the conduct, the circumstance, or the
result;
(f) the term ``person'' means an individual or entity; and
(g) 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.
Sec. 9. 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 this
order would render those measures ineffectual. I therefore determine
that for these measures to be effective in addressing the national
emergency declared in Executive Order 12957, there need be no prior
notice of a listing or determination made pursuant to section 1 of
this order.
Sec. 10. 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 the President 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 agencies shall take all appropriate
measures within their authority to implement this order.
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.
Sec. 12. The measures taken pursuant to this order are in
response to actions of the Government of Iran occurring after the
conclusion of the 1981 Algiers Accords, and are intended solely as a
response to those later actions.
Donald J. Trump
THE WHITE HOUSE,
May 8, 2019.
Dated: August 1, 2019.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2019-16842 Filed 8-6-19; 8:45 am]
BILLING CODE 4810-AL-P
