Mali Sanctions Regulations
| Published date | 07 February 2020 |
| Record Number | 2020-02441 |
| Section | Rules and Regulations |
| Court | Foreign Assets Control Office |
Federal Register, Volume 85 Issue 26 (Friday, February 7, 2020)
[Federal Register Volume 85, Number 26 (Friday, February 7, 2020)]
[Rules and Regulations]
[Pages 7223-7230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02441]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 555
Mali 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 adding regulations to implement Executive Order 13882
of July 26, 2019 (``Blocking Property and Suspending Entry of Certain
Persons Contributing to the Situation in Mali''). 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: Effective Date: February 7, 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 July 26, 2019, the President, invoking the authority of, inter
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706) (IEEPA) and the United Nations Participation Act (22 U.S.C. 287c)
(UNPA), issued Executive Order 13882 (84 FR 37055, July 30, 2019) (E.O.
13882).
In E.O. 13882, the President determined that the situation in Mali,
including repeated violations of ceasefire arrangements made pursuant
to the 2015 Agreement on Peace and Reconciliation in Mali; the
expansion of terrorist activities into southern and central Mali; the
intensification of drug trafficking and trafficking in persons, human
rights abuses, and hostage-taking; and the intensification of attacks
against civilians, the Malian defense and security forces, the United
Nations Multidimensional Integrated Stabilizations Mission in Mali
(MINUSMA), and international security presences, 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 Mali Sanctions Regulations, 31 CFR part 555
(the ``Regulations''), to implement E.O. 13882, pursuant to authorities
delegated to the Secretary of the Treasury in E.O. 13882. A copy of
E.O. 13882 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 555 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 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 555
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Mali, Penalties, Reporting and recordkeeping requirements,
Sanctions.
0
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control adds part 555 to 31 CFR
chapter V to read as follows:
PART 555--MALI SANCTIONS REGULATIONS
Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
555.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
555.201 Prohibited transactions.
555.202 Effect of transfers violating the provisions of this part.
555.203 Holding of funds in interest-bearing accounts; investment
and reinvestment.
555.204 Expenses of maintaining blocked physical property;
liquidation of blocked property.
555.205 Exempt transactions.
[[Page 7224]]
Subpart C--General Definitions
555.300 Applicability of definitions.
555.301 Blocked account; blocked property.
555.302 Effective date.
555.303 Entity.
555.304 Financial, material, or technological support.
555.305 Information or informational materials.
555.306 Interest.
555.307 Licenses; general and specific.
555.308 OFAC.
555.309 Person.
555.310 Property; property interest.
555.311 Transfer.
555.312 United States.
555.313 United States person; U.S. person.
555.314 U.S. financial institution.
Subpart D--Interpretations
555.401 [Reserved]
555.402 Effect of amendment.
555.403 Termination and acquisition of an interest in blocked
property.
555.404 Transactions ordinarily incident to a licensed transaction.
555.405 Setoffs prohibited.
555.406 Entities owned by one or more persons whose property and
interests in property are blocked.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
555.501 General and specific licensing procedures.
555.502 [Reserved]
555.503 Exclusion from licenses.
555.504 Payments and transfers to blocked accounts in U.S. financial
institutions.
555.505 Entries in certain accounts for normal service charges.
555.506 Provision of certain legal services.
555.507 Payments for legal services from funds originating outside
the United States.
555.508 Emergency medical services.
Subpart F--Reports
555.601 Records and reports.
Subpart G--Penalties and Findings of Violation
555.701 Penalties and Findings of Violation.
Subpart H--Procedures
555.801 Procedures.
555.802 Delegation of certain authorities of the Secretary of the
Treasury.
Subpart I--Paperwork Reduction Act
555.901 Paperwork Reduction Act notice.
Appendix A to Part 555--Executive Order 13882 of July 26, 2019
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); E.O. 13882, 84
FR 37055, July 30, 2019.
Subpart A--Relation of This Part to Other Laws and Regulations
Sec. 555.101 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 Sec. 555.101: 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
Sec. 555.201 Prohibited transactions.
All transactions prohibited pursuant to Executive Order 13882 of
July 26, 2019, or any further Executive orders issued pursuant to the
national emergency declared in Executive Order 13882, are prohibited
pursuant to this part.
Note 1 to Sec. 555.201: The names of persons designated
pursuant to Executive Order 13882, or pursuant to any further
Executive orders issued pursuant to the national emergency declared
in Executive Order 13882, 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 ``[MALI-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 Sec. 555.406
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. 555.201: 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-MALI-E.O.[E.O. number pursuant to
which the person's property and interests in property are blocked
pending investigation]].''
Note 3 to Sec. 555.201: 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.
Sec. 555.202 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 Sec.
555.201, 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 Sec. 555.201, 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
[[Page 7225]]
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 Sec. 555.201.
Sec. 555.203 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 Sec. 555.201 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 Sec. 555.201 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 Sec. 555.201 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 Sec. 555.201, nor may their holder cooperate in or
facilitate the pledging or other attempted use as collateral of blocked
funds or other assets.
Sec. 555.204 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 Sec. 555.201
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 Sec. 555.201 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.
Sec. 555.205 Exempt transactions.
(a) United Nations Participation Act. The exemptions described in
this section do not apply to transactions involving property or
interests in property of persons whose property and interests in
property are blocked pursuant to the authority of the United Nations
Participation Act, as amended (22 U.S.C. 287c(b)) (UNPA).
Note 1 to paragraph (a): Persons whose property and interests
in property are blocked pursuant to the authority of the UNPA
include those listed on both OFAC's Specially Designated Nationals
and Blocked Persons List (SDN List) and the Consolidated United
Nations Security Council Sanctions List (see https://www.un.org) as
well as persons listed on the SDN List for being owned or controlled
by, or acting for or on behalf of, such persons.
(b) Personal communications. Except as provided in paragraph (a),
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.
(c) Information or informational materials. (1) Except as provided
in paragraph (a), the prohibitions contained in this part do not apply
to the importation from any country and the exportation to any country
of any information or informational materials, as defined in Sec.
555.305, whether commercial or otherwise, regardless of format or
medium of transmission.
(2) Except as provided in paragraph (a) of this section, this
section does not exempt from regulation transactions related to
information or informational materials not fully created and in
existence at the date of the transactions, or to the substantive or
artistic alteration or enhancement of information or informational
materials, or to the provision of marketing and business consulting
services. Such prohibited transactions include payment of advances for
information or
[[Page 7226]]
informational materials not yet created and completed (with the
exception of prepaid subscriptions for widely circulated magazines and
other periodical publications); provision of services to market,
produce or co-produce, create, or assist in the creation of information
or informational materials; and payment of royalties with respect to
income received for enhancements or alterations made by U.S. persons to
such information or informational materials.
(3) Except as provided in paragraph (a) of this section, this
section does not exempt transactions incident to the exportation of
software subject to the Export Administration Regulations, 15 CFR parts
730 through 774, or to the exportation of goods (including software) or
technology for use in the transmission of any data, or to the
provision, sale, or leasing of capacity on telecommunications
transmission facilities (such as satellite or terrestrial network
connectivity) for use in the transmission of any data. The exportation
of such items or services and the provision, sale, or leasing of such
capacity or facilities to a person whose property and interests in
property are blocked pursuant to Sec. 555.201 are prohibited.
(d) Travel. Except as provided in paragraph (a) of this section,
the prohibitions contained in this part do not apply to transactions
ordinarily incident to travel to or from any country, including
importation or exportation of accompanied baggage for personal use,
maintenance within any country including payment of living expenses and
acquisition of goods or services for personal use, and arrangement or
facilitation of such travel including nonscheduled air, sea, or land
voyages.
Subpart C--General Definitions
Sec. 555.300 Applicability of definitions.
The definitions in this subpart apply throughout the entire part.
Sec. 555.301 Blocked account; blocked property.
The terms blocked account and blocked property shall mean any
account or property subject to the prohibitions in Sec. 555.201 held
in the name of a person whose property and interests in property are
blocked pursuant to Sec. 555.201, 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 Sec. 555.301: See Sec. 555.406 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 Sec. 555.201.
Sec. 555.302 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 Sec. 555.201, 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.
Sec. 555.303 Entity.
The term entity means a partnership, association, trust, joint
venture, corporation, group, subgroup, or other organization.
Sec. 555.304 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 definition 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.
Sec. 555.305 Information or informational materials.
(a)(1) The term information or informational materials includes
publications, films, posters, phonograph records, photographs,
microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and
news wire feeds.
(2) To be considered information or informational materials,
artworks must be classified under heading 9701, 9702, or 9703 of the
Harmonized Tariff Schedule of the United States.
(b) The term information or informational materials, with respect
to exports, does not include items:
(1) That were, as of April 30, 1994, or that thereafter become,
controlled for export pursuant to section 5 of the Export
Administration Act of 1979, 50 U.S.C. App. 2401-2420 (1979) (EAA), or
section 6 of the EAA to the extent that such controls promote the
nonproliferation or antiterrorism policies of the United States; or
(2) With respect to which acts are prohibited by 18 U.S.C. chapter
37.
Sec. 555.306 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.
Sec. 555.307 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 Sec. 555.307: See Sec. 501.801 of this chapter on
licensing procedures.
Sec. 555.308 OFAC.
The term OFAC means the Department of the Treasury's Office of
Foreign Assets Control.
Sec. 555.309 Person.
The term person means an individual or entity.
Sec. 555.310 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
[[Page 7227]]
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.
Sec. 555.311 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.
Sec. 555.312 United States.
The term United States means the United States, its territories and
possessions, and all areas under the jurisdiction or authority thereof.
Sec. 555.313 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.
Sec. 555.314 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
Sec. 555.401 [Reserved]
Sec. 555.402 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.
Sec. 555.403 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 Sec. 555.201, such property shall no longer be
deemed to be property blocked pursuant to Sec. 555.201, unless there
exists in the property another interest that is blocked pursuant to
Sec. 555.201, 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
Sec. 555.201, such property shall be deemed to be property in which
such person has an interest and therefore blocked.
Sec. 555.404 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 Sec. 555.201; 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.
Sec. 555.405 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 Sec. 555.201 if effected after the effective date.
Sec. 555.406 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 Sec. 555.201 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 Sec.
555.201, regardless of whether the name of the entity is incorporated
into OFAC's Specially Designated Nationals and Blocked Persons List
(SDN List).
[[Page 7228]]
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
Sec. 555.501 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 Mali sanctions page on OFAC's website:
www.treasury.gov/ofac.
Sec. 555.502 [Reserved]
Sec. 555.503 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.
Sec. 555.504 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 Sec.
555.201 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 Sec. 555.504: See Sec. 501.603 of this chapter for
mandatory reporting requirements regarding financial transfers. See
also Sec. 555.203 concerning the obligation to hold blocked funds
in interest-bearing accounts.
Sec. 555.505 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 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.
Sec. 555.506 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 Sec. 555.201 is authorized, provided that any receipt of
payment of professional fees and reimbursement of incurred expenses
must be authorized pursuant to Sec. 555.507, 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 Sec. 555.201, 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 Sec. 555.404.
(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 Sec. 555.201 is prohibited unless licensed
pursuant to this part.
Note 1 to Sec. 555.506: 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.
Sec. 555.507 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 Sec. 555.506(a) to
or on behalf of any person whose property and interests in property are
blocked pursuant to Sec. 555.201 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 Sec. 555.506(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 paragraph (a) authorizes payments for legal services
using funds in which any other person whose property and interests in
property are blocked pursuant to Sec. 555.201, any other part of this
chapter, or any Executive order has an interest.
(b) Reports. (1) U.S. persons who receive payments pursuant to
paragraph (a) of this section must submit annual
[[Page 7229]]
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):
[email protected]; 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.
Sec. 555.508 Emergency medical services.
The provision and receipt of nonscheduled emergency medical
services that are otherwise prohibited by this part are authorized.
Subpart F--Reports
Sec. 555.601 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
Sec. 555.701 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 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
Sec. 555.801 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.
Sec. 555.802 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 13882 of July 26, 2019, and any further
Executive orders issued pursuant to the national emergency declared in
Executive Order 13882 of July 26, 2019, 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
Sec. 555.901 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 Sec. 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 555--Executive Order 13882
Executive Order 13882 of July 26, 2019
Blocking Property and Suspending Entry of Certain Persons Contributing
to the Situation in Mali
By the authority vested in me as President by the Constitution
and the laws of the United States of America 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), the United Nations Participation Act of
1945 (22 U.S.C. 287c) (UNPA), 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, and in view of United Nations Security
Council Resolution (UNSCR) 2374 of September 5, 2017, and UNSCR 2432
of August 30, 2018,
I, DONALD J. TRUMP, President of the United States of America,
find that the situation in Mali, including repeated violations of
ceasefire arrangements made pursuant to the 2015 Agreement on Peace
and Reconciliation in Mali; the expansion of terrorist activities
into southern and central Mali; the intensification of drug
trafficking and trafficking in persons, human rights abuses, and
hostage-taking; and the intensification of attacks against
civilians, the Malian defense and security forces, the United
Nations Multidimensional Integrated Stabilizations Mission in Mali
(MINUSMA), and international security presences, 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 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 responsible for or complicit in, or to have directly
or indirectly engaged in, any of the following in or in relation to
Mali:
(A) Actions or policies that threaten the peace, security, or
stability of Mali;
(B) actions or policies that undermine democratic processes or
institutions in Mali;
(C) a hostile act in violation of, or an act that obstructs,
including by prolonged delay, or threatens the implementation of,
the 2015 Agreement on Peace and Reconciliation in Mali;
(D) planning, directing, sponsoring, or conducting attacks
against local, regional, or state institutions, the Malian defense
and security forces, any international security presences, MINUSMA
peacekeepers, other United Nations or associated personnel, or any
other peacekeeping operations;
(E) obstructing the delivery or distribution of, or access to,
humanitarian assistance;
(F) planning, directing, or committing an act that violates
international humanitarian law or that constitutes a serious human
rights
[[Page 7230]]
abuse or violation, including an act involving the targeting of
civilians through the commission of an act of violence, abduction or
enforced disappearance, forced displacement, or an attack on a
school, hospital, religious site, or location where civilians are
seeking refuge;
(G) the use or recruitment of children by armed groups or armed
forces in the context of the armed conflict in Mali;
(H) the illicit production or trafficking of narcotics or their
precursors originating or transiting through Mali;
(I) trafficking in persons, smuggling migrants, or trafficking
or smuggling arms or illicitly acquired cultural property; or
(J) any transaction or series of transactions involving bribery
or other corruption, such as the misappropriation of Malian public
assets or expropriation of private assets for personal gain or
political purposes;
(ii) 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 order; or
(iii) 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 prior to the date of this order.
Sec. 2. The unrestricted immigrant and nonimmigrant entry into
the United States of aliens determined to meet one or more of the
criteria in section 1 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 hereby
suspended, except where the Secretary of State determines that the
person's entry is in the national interest 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. 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. 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 section 1 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 of this order.
Sec. 4. The prohibitions in section 1 of this order include but
are not limited to:
(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 this order; and
(b) the receipt of any contribution or provision of funds,
goods, or services from any such person.
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. For the purposes of this order:
(a) The term ``person'' means an individual or entity;
(b) the term ``entity'' means a partnership, association, trust,
joint venture, corporation, group, subgroup, or other organization;
and
(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.
Sec. 7. 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 this order, there need be no prior notice of a
listing or determination made pursuant to section 1 of this order.
Sec. 8. The Secretary of the Treasury, in consultation with the
Secretary of State, is hereby authorized to take such actions,
including promulgating rules and regulations, and to employ all
powers granted to the President by IEEPA and the UNPA 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 of the
United States Government shall take all appropriate measures within
their authority to carry out the provisions of this order.
Sec. 9. The Secretary of the Treasury, in consultation with the
Secretary of State, is hereby authorized to submit the recurring and
final reports to the Congress on the national emergency declared in
this order, consistent with section 40l(c) of the NEA (50 U.S.C.
164l(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).
Sec. 10. (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,
July 26, 2019.
Dated: January 30, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
Approved:
Dated: February 3, 2020.
Justin G. Muzinich,
Deputy Secretary, Department of the Treasury.
[FR Doc. 2020-02441 2-6-20; 8:45 am]
BILLING CODE 4810-AL-P
