Venezuela Sanctions Regulations

Published date22 November 2019
Citation84 FR 64415
Record Number2019-25343
SectionRules and Regulations
CourtForeign Assets Control Office
Federal Register, Volume 84 Issue 226 (Friday, November 22, 2019)
[Federal Register Volume 84, Number 226 (Friday, November 22, 2019)]
                [Rules and Regulations]
                [Pages 64415-64417]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-25343]
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                DEPARTMENT OF THE TREASURY
                Office of Foreign Assets Control
                31 CFR Part 591
                Venezuela Sanctions Regulations
                AGENCY: Office of Foreign Assets Control, Treasury.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: The Department of the Treasury's Office of Foreign Assets
                Control (OFAC) is amending the Venezuela Sanctions Regulations to
                incorporate additional Executive orders, add a general license
                authorizing U.S. Government activities, and add an interpretive
                provision.
                DATES: Effective Date: November 22, 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).
                [[Page 64416]]
                Background
                 On July 10, 2015, OFAC issued the Venezuela Sanctions Regulations,
                31 CFR part 591 (the ``Regulations'') (80 FR 39676, July 10, 2015) to
                implement the Venezuela Defense of Human Rights and Civil Society Act
                of 2014 (Pub. L. 113-278) and Executive Order 13692 of March 8, 2015
                (``Blocking Property and Suspending Entry of Certain Persons
                Contributing to the Situation in Venezuela'') (E.O. 13692). The
                Regulations were published in abbreviated form for the purpose of
                providing immediate guidance to the public. Since then, the President
                has issued six additional Executive orders pursuant to the national
                emergency declared in E.O. 13692: Executive Order 13808 of August 24,
                2017 (``Imposing Additional Sanctions With Respect to the Situation in
                Venezuela'') (82 FR 41155, August 29, 2017); Executive Order 13827 of
                March 19, 2018 (``Taking Additional Steps to Address the Situation in
                Venezuela'') (83 FR 12469, March 21, 2018); Executive Order 13835 of
                May 21, 2018 (``Prohibiting Certain Additional Transactions With
                Respect to Venezuela'') (83 FR 24001, May 24, 2018); Executive Order
                13850 of November 1, 2018 (``Blocking Property of Additional Persons
                Contributing to the Situation in Venezuela'') (83 FR 55243, November 2,
                2018); Executive Order 13857 of January 25, 2019 (``Taking Additional
                Steps To Address the National Emergency With Respect to Venezuela'')
                (84 FR 509, January 30, 2019); and Executive Order 13884 of August 5,
                2019 (``Blocking Property of the Government of Venezuela'') (84 FR
                38843, August 7, 2019).
                 In subpart B of the Regulations, OFAC is expanding existing Sec.
                591.201 to specify that the prohibitions in that section include all
                transactions prohibited pursuant to E.O. 13692 of March 8, 2015 or any
                further Executive order issued pursuant to the national emergency
                declared in E.O. 13692. In subpart C of the Regulations, OFAC is making
                a technical amendment to the definition of financial, material, or
                technological support at Sec. 591.304 to reflect the changes being
                made to Sec. 591.201.
                 OFAC also is incorporating a general license into subpart E that
                was previously posted only on OFAC's website. This general license,
                which is being added as new Sec. 591.509, authorizes the U.S.
                Government to engage in certain activities related to Venezuela. OFAC
                is adding a new interpretative provision at Sec. 591.407 regarding
                settlement agreements and the enforcement of liens, judgments, arbitral
                awards, decrees, or other orders through execution, garnishment, or
                other judicial process. This interpretive provision clarifies that,
                notwithstanding the existence of any general license issued under 31
                CFR part 591, or issued under any Executive order issued pursuant to
                the national emergency declared in E.O. 13692, the 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. 591.201 is
                prohibited unless authorized pursuant to a specific license issued by
                OFAC. Finally, OFAC is making certain technical and conforming edits.
                 OFAC intends to supplement part 591 with a more comprehensive set
                of regulations, which may include additional interpretive and
                definitional guidance and additional general licenses and statements of
                licensing policy.
                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 591
                 Administrative practice and procedure, Banks, Banking, Blocking of
                assets, Legal services, Penalties, Reporting and recordkeeping
                requirements, Sanctions.
                 For the reasons set forth in the preamble, the Department of the
                Treasury's Office of Foreign Assets Control amends 31 CFR chapter V as
                follows:
                PART 591--VENEZUELA SANCTIONS REGULATIONS
                0
                1. The authority citation for part 591 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. 113-
                278, 128 Stat. 3011 (50 U.S.C. 1701 note); E.O. 13692, 80 FR 12747,
                March 11, 2015, 3 CFR, 2015 Comp., p. 276; E.O. 13808, 82 FR 41155,
                August 29, 2017, 3 CFR, 2017 Comp., p. 377; E.O. 13827, 83 FR 12469,
                March 21, 2018, 3 CFR, 2018 Comp., p. 794; E.O. 13835, 83 FR 24001,
                May 24, 2018, 3 CFR, 2018 Comp., p. 817; E.O. 13850, 83 FR 55243,
                November 2, 2018, 3 CFR, 2018 Comp., p. 881; E.O. 13857, 84 FR 509,
                January 30, 2019; E.O. 13884, 84 FR 38843, August 7, 2019.
                Subpart B--Prohibitions
                0
                2. Revise Sec. 591.201 to read as follows:
                Sec. 591.201 Prohibited transactions.
                 All transactions prohibited pursuant to Executive Order 13692 of
                March 8, 2015, or any further Executive orders issued pursuant to the
                national emergency declared in Executive Order 13692, are prohibited
                pursuant to this part.
                 Note 1 to Sec. 591.201: The names of persons designated
                pursuant to Executive Order 13692, or pursuant to any further
                Executive orders issued pursuant to the national emergency declared
                in Executive Order 13692, 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 ``[VENEZEULA-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. 591.406
                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. 591.201: 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-VENEZEULA-E.O. [E.O. number pursuant
                to which the person's property and
                [[Page 64417]]
                interests in property are blocked pending investigation]].''
                 Note 3 to Sec. 591.201: 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
                Sec. 591.304 [Amended]
                0
                3. In Sec. 591.304, remove the text ``, as used in Executive Order
                13692 of March 8, 2015,''.
                Subpart D--Interpretations
                0
                4. Add Sec. 591.407 to read as follows:
                Sec. 591.407 Settlement agreements and enforcement of certain orders
                through judicial process.
                 Notwithstanding the existence of any general license issued under
                this part, or issued under any Executive order issued pursuant to the
                national emergency declared in E.O. 13692, the 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. 591.201, as
                referenced in Sec. 591.506(c), is prohibited unless authorized
                pursuant to a specific license issued by OFAC pursuant to this part.
                Subpart E--Licenses, Authorizations, and Statements of Licensing
                Policy
                Sec. 591.506 [Amended]
                0
                5. In Sec. 591.506(a), (b), and (c), remove the text ``or any further
                Executive orders relating to the national emergency declared in
                Executive Order 13692 of March 8, 2015.''
                Sec. 591.507 [Amended]
                0
                6. In Sec. 591.507(a) and the note to paragraph (a), remove the text
                ``or any further Executive orders relating to the national emergency
                declared in Executive Order 13692 of March 8, 2015.''
                Sec. 591.508 [Amended]
                0
                7. In Sec. 591.508, remove the text ``or any further Executive orders
                relating to the national emergency declared in Executive Order 13692 of
                March 8, 2015.''
                0
                8. Add Sec. 591.509 to read as follows:
                Sec. 591.509 Official business of the United States Government.
                 All transactions that are for the conduct of the official business
                of the United States Government by employees, grantees, or contractors
                thereof are authorized.
                 Note 1 to Sec. 591.509: For additional information regarding
                requirements relating to the 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. 591.201, see
                Sec. 591.407.
                Subpart H--Procedures
                0
                9. Revise Sec. 591.802 to read as follows:
                Sec. 591.802 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 13692 of March 8, 2015, Executive Order
                13808 of August 24, 2017, Executive Order 13827 of March 19, 2018,
                Executive Order 13835 of May 21, 2018, Executive Order 13850 of
                November 1, 2018, Executive Order 13857 of January 25, 2019, Executive
                Order 13884 of August 5, 2019, and any further Executive orders issued
                pursuant to the national emergency declared in Executive Order 13692 of
                March 8, 2015, 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.
                 Dated: November 18, 2019.
                Andrea Gacki,
                Director, Office of Foreign Assets Control.
                [FR Doc. 2019-25343 Filed 11-21-19; 8:45 am]
                 BILLING CODE 4810-AL-P
                

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