Publication of Chinese Military-Industrial Complex Sanctions Regulations Web General Licenses 1, 1A, 1B, and 2
| Court | Foreign Assets Control Office |
| Citation | 88 FR 60889 |
| Published date | 06 September 2023 |
| Record Number | 2023-19133 |
| Section | Rules and Regulations |
Federal Register, Volume 88 Issue 171 (Wednesday, September 6, 2023)
[Federal Register Volume 88, Number 171 (Wednesday, September 6, 2023)]
[Rules and Regulations]
[Pages 60889-60890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19133]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 586
Publication of Chinese Military-Industrial Complex Sanctions
Regulations Web General Licenses 1, 1A, 1B, and 2
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Publication of web general licenses.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is publishing four general licenses (GLs) issued in the
Chinese Military Industrial Complex program: GLs 1, 1A, 1B, and 2, each
of which was previously made available on OFAC's website.
DATES: GL 1 was issued on January 8, 2021. See SUPPLEMENTARY
INFORMATION for additional relevant dates.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Compliance, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: https://ofac.treasury.gov.
Background
On January 8, 2021, OFAC issued GL 1 to authorize certain
transactions otherwise prohibited by Executive Order (E.O.) 13959 of
November 12, 2020, ``Addressing the Threat From Securities Investments
That Finance Communist Chinese Military Companies'' (85 FR 73185,
November 17, 2020). Subsequently, OFAC issued two further iterations of
GL 1, each of which authorized activities otherwise prohibited pursuant
to E.O. 13959 as amended by E.O. 13974 of January 13, 2021, ``Amending
Executive Order 13959--Addressing the Threat From Securities
Investments That Finance Communist Chinese Military Companies'' (86 FR
4875, January 19, 2021): on January 26, 2021, OFAC issued GL 1A, which
superseded GL 1; and on May 18, 2021, OFAC issued GL 1B, which
superseded GL 1A. Each of these GLs is now expired. On January 14,
2021, OFAC issued GL 2 to authorize certain transactions otherwise
prohibited by E.O. 13959, as amended. Each GL was made available on
OFAC's website (https://ofac.treasury.gov) when it was issued. The text
of these GLs is provided below.
OFFICE OF FOREIGN ASSETS CONTROL
Executive Order 13959 of November 12, 2020
Addressing the Threat From Securities Investments That Finance
Communist Chinese Military Companies
GENERAL LICENSE NO. 1
Authorizing Transactions Involving Securities of Certain Communist
Chinese Military Companies
(a) Except as provided in paragraph (b) of this general license,
all transactions and activities prohibited by section 1(a)(i) of
Executive Order (E.O.) 13959 involving publicly traded securities,
or any securities that are derivative of, or are designed to provide
investment exposure to such securities, of an entity whose name
closely matches the name of a Communist Chinese military company
identified in the Annex to E.O. 13959 but that has not been listed
on the Office of Foreign Assets Control's Non-SDN Communist Chinese
Military Companies List, are authorized through 9:30 a.m. eastern
standard time, January 28, 2021.
(b) This general license does not authorize any transactions or
activities otherwise prohibited by E.O. 13959, any other E.O. or
statute, or any part of 31 CFR chapter V.
Andrea Gacki,
Director, Office of Foreign Assets Control.
Dated: January 8, 2021.
[[Page 60890]]
OFFICE OF FOREIGN ASSETS CONTROL
Executive Order 13959 of November 12, 2020
Addressing the Threat From Securities Investments That Finance
Communist Chinese Military Companies, as Amended
GENERAL LICENSE NO. 1A
Authorizing Transactions Involving Securities of Certain Communist
Chinese Military Companies
(a) Except as provided in paragraph (b) of this general license,
all transactions and activities prohibited by section 1(a) of
Executive Order (E.O.) 13959, as amended by E.O. 13974 of January
13, 2021, involving publicly traded securities, or any securities
that are derivative of, or are designed to provide investment
exposure to such securities, of an entity whose name closely
matches, but does not exactly match, the name of a Communist Chinese
military company as defined by section 4(a) of E.O. 13959, as
amended, are authorized through 9:30 a.m. eastern daylight time, May
27, 2021.
(b) This general license does not authorize:
(1) Any transactions or activities involving publicly traded
securities, or any securities that are derivative of, or are
designed to provide investment exposure to such securities, of
entities identified in the Office of Foreign Assets Control's Non-
SDN Communist Chinese Military Companies List (NS-CCMC List)
pursuant to section 4(a)(iii) of E.O. 13959, as amended, as a
subsidiary of a person determined to be a Communist Chinese military
company, including entities added to the NS-CCMC List on January 8,
2021 (CNOOC Limited, China Mobile Limited, China Telecom Corporation
Limited, China Unicom (Hong Kong) Limited).
Note to paragraph (b)(1): Pursuant to section 1(a)(ii) of E.O.
13959, as amended, prohibitions relevant to entities identified in
the NS-CCMC List pursuant to section 4(a)(iii) of E.O. 13959, as
amended, including entities added to the NS-CCMC List on January 8,
2021 (CNOOC Limited, China Mobile Limited, China Telecom Corporation
Limited, China Unicom (Hong Kong) Limited), take effect beginning
9:30 a.m. eastern time on the date that is 60 days after such
listing.
(2) Any transactions or activities otherwise prohibited by E.O.
13959, as amended, any other E.O. or statute, or any part of 31 CFR
chapter V.
(c) Effective January 27, 2021, General License No. 1, dated
January 8, 2021, is replaced and superseded in its entirety by this
General License No. 1A.
Bradley T. Smith,
Acting Director, Office of Foreign Assets Control.
Dated: January 26, 2021.
OFFICE OF FOREIGN ASSETS CONTROL
Executive Order 13959 of November 12, 2020
Addressing the Threat From Securities Investments That Finance
Communist Chinese Military Companies, as Amended
GENERAL LICENSE NO. 1B
Authorizing Transactions Involving Securities of Certain Communist
Chinese Military Companies
(a) Except as provided in paragraph (b) of this general license,
all transactions and activities prohibited by section 1(a) of
Executive Order (E.O.) 13959, as amended by E.O. 13974 of January
13, 2021, involving publicly traded securities, or any securities
that are derivative of, or are designed to provide investment
exposure to such securities, of an entity whose name closely
matches, but does not exactly match, the name of a Communist Chinese
military company as defined by section 4(a) of E.O. 13959, as
amended, are authorized through 9:30 a.m. eastern daylight time,
June 11, 2021.
(b) This general license does not authorize:
(1) Any transactions or activities involving publicly traded
securities, or any securities that are derivative of, or are
designed to provide investment exposure to such securities, of
entities identified in the Office of Foreign Assets Control's Non-
SDN Communist Chinese Military Companies List (NS-CCMC List)
pursuant to section 4(a)(iii) of E.O. 13959, as amended, as a
subsidiary of a person determined to be a Communist Chinese military
company, including entities added to the NS-CCMC List on January 8,
2021 (CNOOC Limited, China Mobile Limited, China Telecom Corporation
Limited, China Unicom (Hong Kong) Limited).
Note to paragraph (b)(1): Pursuant to section 1(a)(ii) of E.O.
13959, as amended, prohibitions relevant to entities identified in
the NS-CCMC List pursuant to section 4(a)(iii) of E.O. 13959, as
amended, including entities added to the NS-CCMC List on January 8,
2021 (CNOOC Limited, China Mobile Limited, China Telecom Corporation
Limited, China Unicom (Hong Kong) Limited), take effect beginning
9:30 a.m. eastern time on the date that is 60 days after such
listing.
(2) Any transactions or activities otherwise prohibited by E.O.
13959, as amended, any other E.O. or statute, or any part of 31 CFR
chapter V.
(c) Effective May 18, 2021, General License No. 1A, dated
January 26, 2021, is replaced and superseded in its entirety by this
General License No. 1B.
Bradley T. Smith,
Acting Director, Office of Foreign Assets Control.
Dated: May 18, 2021.
OFFICE OF FOREIGN ASSETS CONTROL
Executive Order 13959 of November 12, 2020
Addressing the Threat From Securities Investments That Finance
Communist Chinese Military Companies, as Amended
GENERAL LICENSE NO. 2
Authorizing Securities Exchanges Operated by U.S. Persons To Engage in
Transactions involving Securities of Communist Chinese Military
Companies
(a) Except as provided in paragraph (b) of this general license,
all transactions and activities by securities exchanges operated by
U.S. persons prohibited by section 1(a)(ii) of Executive Order
(E.O.) 13959, as amended by the E.O. of January 13, 2021, involving
publicly traded securities, or any securities that are derivative
of, or are designed to provide investment exposure to such
securities, of any entity that is listed on the Office of Foreign
Assets Control's Non-SDN Communist Chinese Military Companies List
(NS-CCMC List) after 12:01 a.m. eastern standard time, January 14,
2021, are authorized through 12:01 a.m. eastern time on the date
that is 365 days after the date the entity is listed on the NS-CCMC
List.
(b) This general license does not authorize any transactions or
activities otherwise prohibited by E.O. 13959, as amended, any other
E.O. or statute, or any part of 31 CFR chapter V.
Andrea Gacki,
Director, Office of Foreign Assets Control.
Dated: January 14, 2021.
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2023-19133 Filed 9-5-23; 8:45 am]
BILLING CODE 4810-AL-P
