83 FR 30541 - Global Magnitsky Sanctions Regulations
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control Federal Register Volume 83, Issue 126 (June 29, 2018)
Office of Foreign Assets Control
Federal Register Volume 83, Issue 126 (June 29, 2018)
| Page Range | 30541-30548 | |
| FR Document | 2018-14060 |
[Federal Register Volume 83, Number 126 (Friday, June 29, 2018)] [Rules and Regulations] [Pages 30541-30548] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-14060] ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Part 583 Global Magnitsky Sanctions Regulations AGENCY: Office of Foreign Assets Control, Treasury. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Department of the Treasury's Office of Foreign Assets Control (OFAC) is adding regulations to implement the Global Magnitsky Human Rights Accountability Act and Executive Order 13818 of December 20, 2017 (``Blocking the Property of Persons Involved in Serious Human Rights Abuse or Corruption''). 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: June 29, 2018. FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel.: 202-622-4855; Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the Department of the Treasury's Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410. SUPPLEMENTARY INFORMATION: Electronic Availability This document and additional information concerning OFAC are available from OFAC's website (www.treasury.gov/ofac). Background On December 23, 2016, the President signed the Global Magnitsky Human Rights Accountability Act (Pub. L. 114-328, Title XII, Subtitle F) (the ``Act'') into law. The Act authorized the President to impose targeted sanctions on any foreign person the President determines is, among other things, responsible for extrajudicial killings, torture, or other gross violations of internationally recognized human rights, or a government official, or a senior associate of such an official, responsible for, or complicit in, ordering, controlling, or otherwise directing, acts of significant corruption. On December 20, 2017, the President, invoking the authority of, inter alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) (IEEPA), issued Executive Order 13818 (82 FR 60839, December 26, 2017) (E.O. 13818), effective at 12:01 a.m. eastern standard time on December 21, 2017. In E.O. 13818, the President determined that serious human rights abuse and corruption around the world constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and declared a national emergency to deal with that threat. OFAC is issuing the Global Magnitsky Sanctions Regulations, 31 CFR part 583 (the ``Regulations''), to implement the Act and E.O. 13818, pursuant to authorities delegated to the Secretary of the Treasury in E.O. 13818. A copy of E.O. 13818 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 583 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 583 Administrative practice and procedure, Banks, Banking, Blocking of assets, Global Magnitsky, 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 583 to 31 CFR chapter V to read as follows: PART 583--GLOBAL MAGNITSKY SANCTIONS REGULATIONS Subpart A--Relation of This Part to Other Laws and Regulations Sec. 583.101 Relation of this part to other laws and regulations. Subpart B--Prohibitions 583.201 Prohibited transactions involving blocked property. 583.202 Effect of transfers violating the provisions of this part. 583.203 Holding of funds in interest-bearing accounts; investment and reinvestment. 583.204 Expenses of maintaining blocked physical property; liquidation of blocked property. 583.205 Exempt transactions. Subpart C--General Definitions 583.300 Applicability of definitions. 583.301 Blocked account; blocked property. 583.302 Effective date. 583.303 Entity. 583.304 Financial, material, or technological support. 583.305 Foreign person. 583.306 Information or informational materials. 583.307 Interest. 583.308 Licenses; general and specific. 583.309 OFAC. 583.310 Person. 583.311 Property; property interest. 583.312 Transfer. 583.313 United States. 583.314 United States person; U.S. person. 583.315 U.S. financial institution. Subpart D--Interpretations 583.401 [Reserved] 583.402 Effect of amendment. 583.403 Termination and acquisition of an interest in blocked property. 583.404 Transactions ordinarily incident to a licensed transaction. 583.405 Setoffs prohibited. 583.406 Entities owned by one or more persons whose property and interests in property are blocked. [[Page 30542]] Subpart E--Licenses, Authorizations, and Statements of Licensing Policy 583.501 General and specific licensing procedures. 583.502 [Reserved] 583.503 Exclusion from licenses. 583.504 Payments and transfers to blocked accounts in U.S. financial institutions. 583.505 Entries in certain accounts for normal service charges. 583.506 Provision of certain legal services. 583.507 Payments for legal services from funds originating outside the United States. 583.508 Emergency medical services. Subpart F--Reports 583.601 Records and reports. Subpart G--Penalties and Findings of Violation 583.701 Penalties and Findings of Violation. Subpart H--Procedures 583.801 Procedures. 583.802 Delegation of certain authorities of the Secretary of the Treasury. Subpart I--Paperwork Reduction Act 583.901 Paperwork Reduction Act notice. Appendix A to Part 583--Executive Order 13818 of December 20, 2017 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. 114- 328, Title XII, Subtitle F, 130 Stat. 2533 (22 U.S.C. 2656 note); E.O. 13818, 82 FR 60839, December 26, 2017. Subpart A--Relation of This Part to Other Laws and Regulations Sec. 583.101 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. 583.101: 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. 583.201 Prohibited transactions involving blocked property. All transactions prohibited pursuant to Executive Order 13818 of December 20, 2017 are also prohibited pursuant to this part. Note 1 to Sec. 583.201: The names of persons listed in or designated pursuant to Executive Order 13818, 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) with the identifier ``[GLOMAG].'' 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. 583.406 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. 583.201: 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 with the identifier ``[BPI-GLOMAG]''. Note 3 to Sec. 583.201: 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, and administrative reconsideration of their status as persons whose property and interests in property are blocked pursuant to this section. Sec. 583.202 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. 583.201, 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 interests 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 interests in property blocked pursuant to Sec. 583.201, unless the person who holds or maintains such property, prior to that date, had written notice of the transfer or by any written evidence had recognized such transfer. (c) Unless otherwise provided, a license or other authorization issued by OFAC before, during, or after a transfer shall validate such transfer or make it enforceable to the same extent that it would be valid or enforceable but for the provisions of this part and any regulation, order, directive, ruling, instruction, or license issued pursuant to this part. (d) Transfers of property that otherwise would be null and void or unenforceable by virtue of the provisions of this section shall not be deemed to be null and void or unenforceable as to any person with whom such property is or was held or maintained (and as to such person only) in cases in which such person is able to establish to the satisfaction of OFAC each of the following: (1) Such transfer did not represent a willful violation of the provisions of this part by the person with whom such property is or was held or maintained (and as to such person only); (2) The person with whom such property is or was held or maintained did not have reasonable cause to know or suspect, in view of all the facts and circumstances known or available to such person, that such transfer required a license or authorization issued pursuant to this part and was not so licensed or authorized, or, if a license or authorization did purport to cover the transfer, that such license or authorization had been obtained by misrepresentation of a third party or withholding of material facts or was otherwise fraudulently obtained; and (3) The person with whom such property is or was held or maintained filed with OFAC a report setting forth in full the circumstances relating to such transfer promptly upon discovery that: (i) Such transfer was in violation of the provisions of this part or any regulation, ruling, instruction, license, or other directive or authorization issued pursuant to this part; (ii) Such transfer was not licensed or authorized by OFAC; or (iii) If a license did purport to cover the transfer, such license had been obtained by misrepresentation of a third [[Page 30543]] 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 and interests in property blocked pursuant to Sec. 583.201. Sec. 583.203 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. 583.201 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. 583.201 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. 583.201 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. 583.201, nor may their holder cooperate in or facilitate the pledging or other attempted use as collateral of blocked funds or other assets. Sec. 583.204 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. 583.201 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. 583.201 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. 583.205 Exempt transactions. (a) Personal communications. The prohibitions contained in this part do not apply to any postal, telegraphic, telephonic, or other personal communication that does not involve the transfer of anything of value. (b) Information or informational materials. (1) 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. 583.306, whether commercial or otherwise, regardless of format or medium of transmission. (2) 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 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) 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. 583.201 are prohibited. (c) Travel. 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. 583.300 Applicability of definitions. The definitions in this subpart apply throughout the entire part. Sec. 583.301 Blocked account; blocked property. The terms blocked account and blocked property shall mean any account or property subject to the prohibitions in Sec. 583.201 held in the name of a person whose property and interests in property are blocked pursuant to Sec. 583.201, or in which such person has an interest, and with respect to which payments, transfers, [[Page 30544]] 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. 583.301: See Sec. 583.406 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. 583.201. Sec. 583.302 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 13818 of December 20, 2017, 12:01 a.m. eastern standard time on December 21, 2017; and (2) With respect to a person whose property and interests in property are otherwise blocked pursuant to Sec. 583.201, 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. 583.303 Entity. The term entity means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization. Sec. 583.304 Financial, material, or technological support. The term financial, material, or technological support, as used in Executive Order 13818 of December 20, 2017, 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. 583.305 Foreign person. The term foreign person means any citizen or national of a foreign state (including any such individual who is also a citizen or national of the United States), or any entity not organized solely under the laws of the United States or existing solely in the United States, but does not include a foreign state. Sec. 583.306 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. 583.307 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. 583.308 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. 583.308: See Sec. 501.801 of this chapter on licensing procedures. Sec. 583.309 OFAC. The term OFAC means the Department of the Treasury's Office of Foreign Assets Control. Sec. 583.310 Person. The term person means an individual or entity. Sec. 583.311 Property; property interest. The terms property and property interest include money, checks, drafts, bullion, bank deposits, savings accounts, debts, indebtedness, obligations, notes, guarantees, debentures, stocks, bonds, coupons, any other financial instruments, bankers acceptances, mortgages, pledges, liens or other rights in the nature of security, warehouse receipts, bills of lading, trust receipts, bills of sale, any other evidences of title, ownership, or indebtedness, letters of credit and any documents relating to any rights or obligations thereunder, powers of attorney, goods, wares, merchandise, chattels, stocks on hand, ships, goods on ships, real estate mortgages, deeds of trust, vendors' sales agreements, land contracts, leaseholds, ground rents, real estate and any other interest therein, options, negotiable instruments, trade acceptances, royalties, book accounts, accounts payable, judgments, patents, trademarks or copyrights, insurance policies, safe deposit boxes and their contents, annuities, pooling agreements, services of any nature whatsoever, contracts of any nature whatsoever, and any other property, real, personal, or mixed, tangible or intangible, or interest or interests therein, present, future, or contingent. Sec. 583.312 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 [[Page 30545]] 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. 583.313 United States. The term United States means the United States, its territories and possessions, and all areas under the jurisdiction or authority thereof. Sec. 583.314 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. 583.315 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. 583.401 [Reserved] Sec. 583.402 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. 583.403 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. 583.201, such property shall no longer be deemed to be property blocked pursuant to Sec. 583.201, unless there exists in the property another interest that is blocked pursuant to Sec. 583.201, 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. 583.201, such property shall be deemed to be property in which such person has an interest and therefore blocked. Sec. 583.404 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. 583.201; 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. 583.405 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. 583.201 if effected after the effective date. Sec. 583.406 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. 583.201 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. 583.201, regardless of whether the name of the entity is incorporated into OFAC's Specially Designated Nationals and Blocked Persons List (SDN List). Subpart E--Licenses, Authorizations, and Statements of Licensing Policy Sec. 583.501 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 Global Magnitsky sanctions page on OFAC's website: www.treasury.gov/ofac. Sec. 583.502 [Reserved] Sec. 583.503 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. 583.504 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. 583.201 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. 583.504: See Sec. 501.603 of this chapter for mandatory reporting requirements regarding financial transfers. See also Sec. 583.203 concerning the obligation to hold blocked funds in interest-bearing accounts. [[Page 30546]] Sec. 583.505 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. 583.506 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. 583.201 or any further Executive orders relating to the national emergency declared in Executive Order 13818 of December 20, 2017, is authorized, provided that receipt of payment of professional fees and reimbursement of incurred expenses must be authorized pursuant to Sec. 583.507, 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. 583.201 or any further Executive orders relating to the national emergency declared in Executive Order 13818 of December 20, 2017, 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. 583.404. (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. 583.201 or any further Executive orders relating to the national emergency declared in Executive Order 13818 of December 20, 2017 is prohibited unless licensed pursuant to this part. Note 1 to Sec. 583.506: 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. For more information, see OFAC's Guidance on the Release of Limited Amounts of Blocked Funds for Payment of Legal Fees and Costs Incurred in Challenging the Blocking of U.S. Persons in Administrative or Civil Proceedings, which is available on OFAC's website at: www.treasury.gov/ofac. Sec. 583.507 Payments for legal services from funds originating outside the United States. (a) Professional fees and incurred expenses. Receipt of payment of professional fees and reimbursement of incurred expenses for the provision of legal services authorized pursuant to Sec. 583.506(a) to or on behalf of any person whose property and interests in property are blocked pursuant to Sec. 583.201 or any further Executive orders relating to the national emergency declared in Executive Order 13818 of December 20, 2017 is authorized from funds originating outside the United States, provided that the funds do not originate from: (1) A source within the United States; (2) Any source, wherever located, within the possession or control of a U.S. person; or (3) Any individual or entity, other than the person on whose behalf the legal services authorized pursuant to Sec. 583.506(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. Note 1 to paragraph (a): Nothing in this paragraph authorizes payments for legal services using funds in which any other person whose property and interests in property are blocked pursuant to Sec. 583.201, 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 reports no later than 30 days following the end of the calendar year during which the payments were received providing information on the funds received. Such reports shall specify: (i) The individual or entity from whom the funds originated and the amount of funds received; and (ii) If applicable: (A) The names of any individuals or entities providing related services to the U.S. person receiving payment in connection with authorized legal services, such as private investigators or expert witnesses; (B) A general description of the services provided; and (C) The amount of funds paid in connection with such services. (2) The reports, which must reference this section, are to be submitted to OFAC using one of the following methods: (i) Email (preferred method): OFAC.Regulations.Reports@treasury.gov; or (ii) U.S. mail: OFAC Regulations Reports, Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, Freedman's Bank Building, Washington, DC 20220. Sec. 583.508 Emergency medical services. The provision and receipt of nonscheduled emergency medical services that are otherwise prohibited by this part or any further Executive orders relating to the national emergency declared in Executive Order 13818 of December 20, 2017 are authorized. [[Page 30547]] Subpart F--Reports Sec. 583.601 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. 583.701 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. 583.801 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. 583.802 Delegation of certain authorities by the Secretary of the Treasury. Any action that the Secretary of the Treasury is authorized to take pursuant to Executive Order 13818 of December 20, 2017 and any further Executive orders relating to the national emergency declared therein, 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. 583.901 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 583--Executive Order 13818 Executive Order 13818 of December 20, 2017 Blocking the Property of Persons Involved in Serious Human Rights Abuse or Corruption By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA), the Global Magnitsky Human Rights Accountability Act (Public Law 114-328) (the ``Act''), section 212(f) of the Immigration and Nationality Act of 1952 (8 U.S.C. 1182(f)) (INA), and section 301 of title 3, United States Code, I, DONALD J. TRUMP, President of the United States of America, find that the prevalence and severity of human rights abuse and corruption that have their source, in whole or in substantial part, outside the United States, such as those committed or directed by persons listed in the Annex to this order, have reached such scope and gravity that they threaten the stability of international political and economic systems. Human rights abuse and corruption undermine the values that form an essential foundation of stable, secure, and functioning societies; have devastating impacts on individuals; weaken democratic institutions; degrade the rule of law; perpetuate violent conflicts; facilitate the activities of dangerous persons; and undermine economic markets. The United States seeks to impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption, as well as to protect the financial system of the United States from abuse by these same persons. I therefore determine that serious human rights abuse and corruption around the world constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States, and I hereby declare a national emergency to deal with that threat. I hereby determine and order: Section 1. (a) All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: (i) The persons listed in the Annex to this order; (ii) any foreign person determined by the Secretary of the Treasury, in consultation with the Secretary of State and the Attorney General: (A) To be responsible for or complicit in, or to have directly or indirectly engaged in, serious human rights abuse; (B) to be a current or former government official, or a person acting for or on behalf of such an official, who is responsible for or complicit in, or has directly or indirectly engaged in: (1) Corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery; or (2) the transfer or the facilitation of the transfer of the proceeds of corruption; (C) to be or have been a leader or official of: (1) An entity, including any government entity, that has engaged in, or whose members have engaged in, any of the activities described in subsections (ii)(A), (ii)(B)(1), or (ii)(B)(2) of this section relating to the leader's or official's tenure; or (2) an entity whose property and interests in property are blocked pursuant to this order as a result of activities related to the leader's or official's tenure; or (D) to have attempted to engage in any of the activities described in subsections (ii)(A), (ii)(B)(1), or (ii)(B)(2) of this section; and (iii) any person determined by the Secretary of the Treasury, in consultation with the Secretary of State and the Attorney General: (A) To have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of: (1) Any activity described in subsections (ii)(A), (ii)(B)(1), or (ii)(B)(2) of this section that is conducted by a foreign person; (2) any person whose property and interests in property are blocked pursuant to this order; or (3) any entity, including any government entity, that has engaged in, or whose members have engaged in, any of the activities described in subsections (ii)(A), (ii)(B)(1), or (ii)(B)(2) of this section, where the activity is conducted by a foreign person; (B) 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; or [[Page 30548]] (C) to have attempted to engage in any of the activities described in subsections (iii)(A) or (B) of this section. (b) The prohibitions in subsection (a) of this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted before the effective 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. 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 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 include: (a) The making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to 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 this order. Sec. 8. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including adopting rules and regulations, and to employ all powers granted to me by IEEPA and the Act as may be necessary to implement this order and section 1263(a) of the Act with respect to the determinations provided for therein. The Secretary of the Treasury may, consistent with applicable law, redelegate any of these functions to other officers and agencies of the United States. All agencies shall take all appropriate measures within their authority to implement this order. Sec. 9. The Secretary of State is hereby authorized to take such actions, including adopting rules and regulations, and to employ all powers granted to me by IEEPA, the INA, and the Act as may be necessary to carry out section 2 of this order and, in consultation with the Secretary of the Treasury, the reporting requirement in section 1264(a) of the Act with respect to the reports provided for in section 1264(b)(2) of that Act. The Secretary of State may, consistent with applicable law, redelegate any of these functions to other officers and agencies of the United States consistent with applicable law. Sec. 10. The Secretary of the Treasury, in consultation with the Secretary of State and the Attorney General, is hereby authorized to determine that circumstances no longer warrant the blocking of the property and interests in property of a person listed in the Annex to this order, and to take necessary action to give effect to that determination. Sec. 11. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to submit recurring and final reports to the Congress on the national emergency declared in this order, consistent with section 401(c) of the NEA (50 U.S.C. 1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)). Sec. 12. This order is effective at 12:01 a.m., Eastern Standard Time, December 21, 2017. Sec. 13. 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, December 20, 2017. Annex 1. Mukhtar Hamid Shah; Date of Birth (DOB) August 11, 1939; alt. DOB November 8, 1939; nationality, Pakistan 2. Angel Rondon Rijo; DOB July 16, 1950; nationality, Dominican Republic 3. Dan Gertler; DOB December 23, 1973; nationality, Israel; alt. nationality, Democratic Republic of the Congo 4. Maung Maung Soe; DOB March 1964; nationality, Burma 5. Yahya Jammeh; DOB May 25, 1965; nationality, The Gambia 6. Sergey Kusiuk; DOB December 1, 1966; nationality, Ukraine; alt. nationality, Russia 7. Benjamin Bol Mel; DOB January 3, 1978; alt. DOB December 24, 1978; nationality, South Sudan; alt. nationality, Sudan 8. Julio Antonio Juarez Ramirez; DOB December 1, 1980; nationality, Guatemala 9. Goulnora Islamovna Karimova; DOB July 8, 1972; nationality, Uzbekistan 10. Slobodan Tesic; DOB December 21, 1958; nationality, Serbia 11. Artem Yuryevich Chayka; DOB September 25, 1975; nationality, Russia 12. Gao Yan; DOB April 1963; nationality, China 13. Roberto Jose Rivas Reyes; DOB July 6, 1954; nationality, Nicaragua Dated: June 26, 2018. Andrea Gacki, Acting Director, Office of Foreign Assets Control. Approved: Dated: June 26, 2018. Sigal P. Mandelker, Under Secretary, Office of Terrorism and Financial Intelligence, Department of the Treasury. [FR Doc. 2018-14060 Filed 6-28-18; 8:45 am] BILLING CODE 4810-AL-P
![Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations 30541
Security of the Department of Commerce and internationally recognized human 0164. An agency may not conduct or
the International Traffic in Arms Regulations rights, or a government official, or a sponsor, and a person is not required to
(22 CFR parts 120 through 130) administered senior associate of such an official, respond to, a collection of information
by the Department of State.
responsible for, or complicit in, unless the collection of information
ordering, controlling, or otherwise displays a valid control number.
Andrea Gacki,
directing, acts of significant corruption.
Acting Director, Office of Foreign Assets On December 20, 2017, the President, List of Subjects in 31 CFR Part 583
Control.
invoking the authority of, inter alia, the Administrative practice and
[FR Doc. 2018–14084 Filed 6–28–18; 8:45 am] International Emergency Economic
BILLING CODE 4810–AL–P
procedure, Banks, Banking, Blocking of
Powers Act (50 U.S.C. 1701–1706) assets, Global Magnitsky, Penalties,
(IEEPA), issued Executive Order 13818 Reporting and recordkeeping
(82 FR 60839, December 26, 2017) (E.O. requirements, Sanctions.
DEPARTMENT OF THE TREASURY 13818), effective at 12:01 a.m. eastern
Office of Foreign Assets Control standard time on December 21, 2017. ■ For the reasons set forth in the
In E.O. 13818, the President preamble, the Department of the
31 CFR Part 583 determined that serious human rights Treasury’s Office of Foreign Assets
abuse and corruption around the world Control adds part 583 to 31 CFR chapter
Global Magnitsky Sanctions constitute an unusual and extraordinary V to read as follows:
Regulations threat to the national security, foreign
policy, and economy of the United PART 583—GLOBAL MAGNITSKY
AGENCY: Office of Foreign Assets States and declared a national SANCTIONS REGULATIONS
Control, Treasury. emergency to deal with that threat.
ACTION: Final rule. OFAC is issuing the Global Magnitsky Subpart A—Relation of This Part to Other
Sanctions Regulations, 31 CFR part 583 Laws and Regulations
SUMMARY: The Department of the Sec.
(the ‘‘Regulations’’), to implement the
Treasury’s Office of Foreign Assets 583.101 Relation of this part to other laws
Act and E.O. 13818, pursuant to
Control (OFAC) is adding regulations to and regulations.
authorities delegated to the Secretary of
implement the Global Magnitsky
the Treasury in E.O. 13818. A copy of Subpart B—Prohibitions
Human Rights Accountability Act and
E.O. 13818 appears in appendix A to
Executive Order 13818 of December 20, 583.201 Prohibited transactions involving
this part. blocked property.
2017 (‘‘Blocking the Property of Persons The Regulations are being published
Involved in Serious Human Rights 583.202 Effect of transfers violating the
in abbreviated form at this time for the provisions of this part.
Abuse or Corruption’’). OFAC intends to purpose of providing immediate
supplement these regulations with a 583.203 Holding of funds in interest-
guidance to the public. OFAC intends to bearing accounts; investment and
more comprehensive set of regulations, supplement this part 583 with a more reinvestment.
which may include additional comprehensive set of regulations, which 583.204 Expenses of maintaining blocked
interpretive and definitional guidance, may include additional interpretive and physical property; liquidation of blocked
general licenses, and statements of definitional guidance, general licenses, property.
licensing policy. and statements of licensing policy. The 583.205 Exempt transactions.
DATES: Effective Date: June 29, 2018. appendix to the Regulations will be Subpart C—General Definitions
FOR FURTHER INFORMATION CONTACT: removed when OFAC supplements this
OFAC: Assistant Director for Licensing, part with a more comprehensive set of 583.300 Applicability of definitions.
tel.: 202–622–2480; Assistant Director 583.301 Blocked account; blocked property.
regulations.
for Regulatory Affairs, tel.: 202–622– 583.302 Effective date.
4855; Assistant Director for Sanctions Public Participation 583.303 Entity.
Because the Regulations involve a 583.304 Financial, material, or
Compliance & Evaluation, tel.: 202–622–
technological support.
2490; or the Department of the foreign affairs function, the provisions
583.305 Foreign person.
Treasury’s Office of the Chief Counsel of Executive Order 12866 and the 583.306 Information or informational
(Foreign Assets Control), Office of the Administrative Procedure Act (5 U.S.C. materials.
General Counsel, tel.: 202–622–2410. 553) requiring notice of proposed 583.307 Interest.
SUPPLEMENTARY INFORMATION: rulemaking, opportunity for public 583.308 Licenses; general and specific.
participation, and delay in effective 583.309 OFAC.
Electronic Availability date, as well as the provisions of 583.310 Person.
This document and additional Executive Order 13771, are 583.311 Property; property interest.
information concerning OFAC are inapplicable. Because no notice of 583.312 Transfer.
available from OFAC’s website proposed rulemaking is required for this 583.313 United States.
(www.treasury.gov/ofac). rule, the Regulatory Flexibility Act (5 583.314 United States person; U.S. person.
U.S.C. 601–612) does not apply. 583.315 U.S. financial institution.
Background
Paperwork Reduction Act Subpart D—Interpretations
On December 23, 2016, the President
signed the Global Magnitsky Human The collections of information related 583.401 [Reserved]
583.402 Effect of amendment.
Rights Accountability Act (Pub. L. 114– to the Regulations are contained in 31
583.403 Termination and acquisition of an
sradovich on DSK3GMQ082PROD with RULES
328, Title XII, Subtitle F) (the ‘‘Act’’) CFR part 501 (the ‘‘Reporting, interest in blocked property.
into law. The Act authorized the Procedures and Penalties Regulations’’). 583.404 Transactions ordinarily incident to
President to impose targeted sanctions Pursuant to the Paperwork Reduction a licensed transaction.
on any foreign person the President Act of 1995 (44 U.S.C. 3507), those 583.405 Setoffs prohibited.
determines is, among other things, collections of information have been 583.406 Entities owned by one or more
responsible for extrajudicial killings, approved by the Office of Management persons whose property and interests in
torture, or other gross violations of and Budget under control number 1505– property are blocked.
VerDate Sep<11>2014 16:30 Jun 28, 2018 Jkt 244001 PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 E:\FR\FM\29JNR1.SGM 29JNR1](https://thefederalregister.org/doc/83_FR_30667/page/1.svg)
![30542 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations
Subpart E—Licenses, Authorizations, and complying with any other applicable or privilege with respect to such
Statements of Licensing Policy laws or regulations. property or interests in property.
583.501 General and specific licensing Note 1 to § 583.101: This part has been (b) No transfer before the effective
procedures. published in abbreviated form for the date shall be the basis for the assertion
583.502 [Reserved] purpose of providing immediate guidance to or recognition of any right, remedy,
583.503 Exclusion from licenses. the public. OFAC intends to supplement this power, or privilege with respect to, or
583.504 Payments and transfers to blocked part with a more comprehensive set of any interest in, any property or interests
accounts in U.S. financial institutions. regulations, which may include additional in property blocked pursuant to
583.505 Entries in certain accounts for interpretive and definitional guidance, § 583.201, unless the person who holds
normal service charges. general licenses, and statements of licensing
583.506 Provision of certain legal services.
or maintains such property, prior to that
policy.
583.507 Payments for legal services from date, had written notice of the transfer
funds originating outside the United or by any written evidence had
States.
Subpart B—Prohibitions recognized such transfer.
583.508 Emergency medical services. § 583.201 Prohibited transactions
(c) Unless otherwise provided, a
involving blocked property. license or other authorization issued by
Subpart F—Reports
OFAC before, during, or after a transfer
583.601 Records and reports. All transactions prohibited pursuant
shall validate such transfer or make it
to Executive Order 13818 of December
Subpart G—Penalties and Findings of enforceable to the same extent that it
20, 2017 are also prohibited pursuant to
Violation would be valid or enforceable but for
this part.
583.701 Penalties and Findings of the provisions of this part and any
Note 1 to § 583.201: The names of persons regulation, order, directive, ruling,
Violation.
listed in or designated pursuant to Executive instruction, or license issued pursuant
Subpart H—Procedures Order 13818, whose property and interests in
property therefore are blocked pursuant to
to this part.
583.801 Procedures. (d) Transfers of property that
this section, are published in the Federal
583.802 Delegation of certain authorities of otherwise would be null and void or
Register and incorporated into OFAC’s
the Secretary of the Treasury. unenforceable by virtue of the
Specially Designated Nationals and Blocked
Subpart I—Paperwork Reduction Act Persons List (SDN List) with the identifier provisions of this section shall not be
583.901 Paperwork Reduction Act notice. ‘‘[GLOMAG].’’ The SDN List is accessible deemed to be null and void or
Appendix A to Part 583—Executive Order through the following page on OFAC’s unenforceable as to any person with
13818 of December 20, 2017 website: www.treasury.gov/sdn. Additional whom such property is or was held or
information pertaining to the SDN List can be maintained (and as to such person only)
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); found in appendix A to this chapter. See
50 U.S.C. 1601–1651, 1701–1706; Pub. L. § 583.406 concerning entities that may not be in cases in which such person is able to
101–410, 104 Stat. 890 (28 U.S.C. 2461 note); listed on the SDN List but whose property establish to the satisfaction of OFAC
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C. and interests in property are nevertheless each of the following:
1705 note); Pub. L. 114–328, Title XII, blocked pursuant to this section. (1) Such transfer did not represent a
Subtitle F, 130 Stat. 2533 (22 U.S.C. 2656 willful violation of the provisions of this
note); E.O. 13818, 82 FR 60839, December 26, Note 2 to § 583.201: The International part by the person with whom such
2017. Emergency Economic Powers Act (50 U.S.C. property is or was held or maintained
1701–1706), in section 203 (50 U.S.C. 1702), (and as to such person only);
Subpart A—Relation of This Part to authorizes the blocking of property and
(2) The person with whom such
Other Laws and Regulations interests in property of a person during the
pendency of an investigation. The names of property is or was held or maintained
§ 583.101 Relation of this part to other persons whose property and interests in did not have reasonable cause to know
laws and regulations. property are blocked pending investigation or suspect, in view of all the facts and
pursuant to this section also are published in circumstances known or available to
This part is separate from, and the Federal Register and incorporated into such person, that such transfer required
independent of, the other parts of this the SDN List with the identifier ‘‘[BPI– a license or authorization issued
chapter, with the exception of part 501 GLOMAG]’’. pursuant to this part and was not so
of this chapter, the recordkeeping and licensed or authorized, or, if a license or
reporting requirements and license Note 3 to § 583.201: Sections 501.806 and
501.807 of this chapter describe the authorization did purport to cover the
application and other procedures of transfer, that such license or
procedures to be followed by persons
which apply to this part. Actions taken authorization had been obtained by
seeking, respectively, the unblocking of
pursuant to part 501 of this chapter with funds that they believe were blocked due to misrepresentation of a third party or
respect to the prohibitions contained in mistaken identity, and administrative withholding of material facts or was
this part are considered actions taken reconsideration of their status as persons otherwise fraudulently obtained; and
pursuant to this part. Differing foreign whose property and interests in property are (3) The person with whom such
policy and national security blocked pursuant to this section. property is or was held or maintained
circumstances may result in differing filed with OFAC a report setting forth in
interpretations of similar language § 583.202 Effect of transfers violating the full the circumstances relating to such
among the parts of this chapter. No provisions of this part. transfer promptly upon discovery that:
license or authorization contained in or (a) Any transfer after the effective date (i) Such transfer was in violation of
issued pursuant to those other parts that is in violation of any provision of the provisions of this part or any
authorizes any transaction prohibited by this part or of any regulation, order, regulation, ruling, instruction, license,
sradovich on DSK3GMQ082PROD with RULES
this part. No license or authorization directive, ruling, instruction, or license or other directive or authorization
contained in or issued pursuant to any issued pursuant to this part, and that issued pursuant to this part;
other provision of law or regulation involves any property or interest in (ii) Such transfer was not licensed or
authorizes any transaction prohibited by property blocked pursuant to § 583.201, authorized by OFAC; or
this part. No license or authorization is null and void and shall not be the (iii) If a license did purport to cover
contained in or issued pursuant to this basis for the assertion or recognition of the transfer, such license had been
part relieves the involved parties from any interest in or right, remedy, power, obtained by misrepresentation of a third
VerDate Sep<11>2014 16:30 Jun 28, 2018 Jkt 244001 PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 E:\FR\FM\29JNR1.SGM 29JNR1](https://thefederalregister.org/doc/83_FR_30667/page/2.svg)
![Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations 30545
reason of a judgment or decree of any and liabilities under any such order, property of such an entity, therefore, are
foreign country; the fulfillment of any regulation, ruling, instruction, or license blocked, and such an entity is a person
condition; the exercise of any power of continue and may be enforced as if such whose property and interests in
appointment, power of attorney, or amendment, modification, or revocation property are blocked pursuant to
other power; or the acquisition, had not been made. § 583.201, regardless of whether the
disposition, transportation, importation, name of the entity is incorporated into
§ 583.403 Termination and acquisition of
exportation, or withdrawal of any OFAC’s Specially Designated Nationals
an interest in blocked property.
security. and Blocked Persons List (SDN List).
(a) Whenever a transaction licensed or
§ 583.313 United States. authorized by or pursuant to this part Subpart E—Licenses, Authorizations,
The term United States means the results in the transfer of property and Statements of Licensing Policy
United States, its territories and (including any property interest) away
possessions, and all areas under the from a person whose property and § 583.501 General and specific licensing
interests in property are blocked procedures.
jurisdiction or authority thereof.
pursuant to § 583.201, such property For provisions relating to licensing
§ 583.314 United States person; U.S. shall no longer be deemed to be
person.
procedures, see part 501, subpart E, of
property blocked pursuant to § 583.201, this chapter. Licensing actions taken
The term United States person or U.S. unless there exists in the property pursuant to part 501 of this chapter with
person means any United States citizen, another interest that is blocked pursuant respect to the prohibitions contained in
permanent resident alien, entity to § 583.201, the transfer of which has this part are considered actions taken
organized under the laws of the United not been effected pursuant to license or pursuant to this part. General licenses
States or any jurisdiction within the other authorization. and statements of licensing policy
United States (including foreign (b) Unless otherwise specifically relating to this part also may be
branches), or any person in the United provided in a license or authorization available through the Global Magnitsky
States. issued pursuant to this part, if property sanctions page on OFAC’s website:
§ 583.315 U.S. financial institution.
(including any property interest) is www.treasury.gov/ofac.
transferred or attempted to be
The term U.S. financial institution § 583.502 [Reserved]
transferred to a person whose property
means any U.S. entity (including its
and interests in property are blocked
foreign branches) that is engaged in the § 583.503 Exclusion from licenses.
pursuant to § 583.201, such property
business of accepting deposits, making, OFAC reserves the right to exclude
shall be deemed to be property in which
granting, transferring, holding, or any person, property, transaction, or
such person has an interest and
brokering loans or other extensions of class thereof from the operation of any
therefore blocked.
credit, or purchasing or selling foreign license or from the privileges conferred
exchange, securities, commodity futures § 583.404 Transactions ordinarily incident by any license. OFAC also reserves the
or options, or procuring purchasers and to a licensed transaction.
right to restrict the applicability of any
sellers thereof, as principal or agent. It Any transaction ordinarily incident to license to particular persons, property,
includes depository institutions, banks, a licensed transaction and necessary to transactions, or classes thereof. Such
savings banks, trust companies, give effect thereto is also authorized, actions are binding upon actual or
securities brokers and dealers, futures except: constructive notice of the exclusions or
and options brokers and dealers, (a) An ordinarily incident transaction, restrictions.
forward contract and foreign exchange not explicitly authorized within the
merchants, securities and commodities terms of the license, by or with a person § 583.504 Payments and transfers to
exchanges, clearing corporations, whose property and interests in blocked accounts in U.S. financial
investment companies, employee property are blocked pursuant to institutions.
benefit plans, and U.S. holding § 583.201; or Any payment of funds or transfer of
companies, U.S. affiliates, or U.S. (b) An ordinarily incident transaction, credit in which a person whose property
subsidiaries of any of the foregoing. This not explicitly authorized within the and interests in property are blocked
term includes those branches, offices, terms of the license, involving a debit to pursuant to § 583.201 has any interest
and agencies of foreign financial a blocked account or a transfer of that comes within the possession or
institutions that are located in the blocked property. control of a U.S. financial institution
United States, but not such institutions’ must be blocked in an account on the
§ 583.405 Setoffs prohibited.
foreign branches, offices, or agencies. books of that financial institution. A
A setoff against blocked property
(including a blocked account), whether transfer of funds or credit by a U.S.
Subpart D—Interpretations
by a U.S. bank or other U.S. person, is financial institution between blocked
§ 583.401 [Reserved] a prohibited transfer under § 583.201 if accounts in its branches or offices is
effected after the effective date. authorized, provided that no transfer is
§ 583.402 Effect of amendment. made from an account within the
Unless otherwise specifically § 583.406 Entities owned by one or more United States to an account held outside
provided, any amendment, persons whose property and interests in the United States, and further provided
modification, or revocation of any property are blocked. that a transfer from a blocked account
provision in or appendix to this part or Persons whose property and interests may be made only to another blocked
sradovich on DSK3GMQ082PROD with RULES
chapter or of any order, regulation, in property are blocked pursuant to account held in the same name.
ruling, instruction, or license issued by § 583.201 have an interest in all
Note 1 to § 583.504: See § 501.603 of this
OFAC does not affect any act done or property and interests in property of an chapter for mandatory reporting
omitted, or any civil or criminal entity in which such persons directly or requirements regarding financial transfers.
proceeding commenced or pending, indirectly own, whether individually or See also § 583.203 concerning the obligation
prior to such amendment, modification, in the aggregate, a 50 percent or greater to hold blocked funds in interest-bearing
or revocation. All penalties, forfeitures, interest. The property and interests in accounts.
VerDate Sep<11>2014 16:30 Jun 28, 2018 Jkt 244001 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:\FR\FM\29JNR1.SGM 29JNR1](https://thefederalregister.org/doc/83_FR_30667/page/5.svg)
![30548 Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Rules and Regulations
(C) to have attempted to engage in any of emergency declared in this order, there need 6. Sergey Kusiuk; DOB December 1, 1966;
the activities described in subsections (iii)(A) be no prior notice of a listing or nationality, Ukraine; alt. nationality,
or (B) of this section. determination made pursuant to this order. Russia
(b) The prohibitions in subsection (a) of SEC. 8. The Secretary of the Treasury, in 7. Benjamin Bol Mel; DOB January 3, 1978;
this section apply except to the extent consultation with the Secretary of State, is alt. DOB December 24, 1978; nationality,
provided by statutes, or in regulations, hereby authorized to take such actions, South Sudan; alt. nationality, Sudan
orders, directives, or licenses that may be including adopting rules and regulations, and 8. Julio Antonio Juarez Ramirez; DOB
issued pursuant to this order, and to employ all powers granted to me by IEEPA December 1, 1980; nationality,
notwithstanding any contract entered into or and the Act as may be necessary to Guatemala
any license or permit granted before the implement this order and section 1263(a) of 9. Goulnora Islamovna Karimova; DOB July
effective date of this order. the Act with respect to the determinations 8, 1972; nationality, Uzbekistan
SEC. 2. The unrestricted immigrant and provided for therein. The Secretary of the 10. Slobodan Tesic; DOB December 21, 1958;
nonimmigrant entry into the United States of Treasury may, consistent with applicable nationality, Serbia
aliens determined to meet one or more of the law, redelegate any of these functions to 11. Artem Yuryevich Chayka; DOB
criteria in section 1 of this order would be other officers and agencies of the United September 25, 1975; nationality, Russia
detrimental to the interests of the United States. All agencies shall take all appropriate 12. Gao Yan; DOB April 1963; nationality,
States, and the entry of such persons into the measures within their authority to implement China
United States, as immigrants or this order. 13. Roberto Jose Rivas Reyes; DOB July 6,
nonimmigrants, is hereby suspended. Such SEC. 9. The Secretary of State is hereby
1954; nationality, Nicaragua
persons shall be treated as persons covered authorized to take such actions, including
by section 1 of Proclamation 8693 of July 24, adopting rules and regulations, and to Dated: June 26, 2018.
2011 (Suspension of Entry of Aliens Subject employ all powers granted to me by IEEPA, Andrea Gacki,
to United Nations Security Council Travel the INA, and the Act as may be necessary to Acting Director, Office of Foreign Assets
Bans and International Emergency Economic carry out section 2 of this order and, in Control.
Powers Act Sanctions). consultation with the Secretary of the
Treasury, the reporting requirement in Approved:
SEC. 3. I hereby determine that the making
section 1264(a) of the Act with respect to the Dated: June 26, 2018.
of donations of the types of articles specified
in section 203(b)(2) of IEEPA (50 U.S.C. reports provided for in section 1264(b)(2) of Sigal P. Mandelker,
1702(b)(2)) by, to, or for the benefit of any that Act. The Secretary of State may, Under Secretary, Office of Terrorism and
person whose property and interests in consistent with applicable law, redelegate Financial Intelligence, Department of the
any of these functions to other officers and Treasury.
property are blocked pursuant to this order
agencies of the United States consistent with
would seriously impair my ability to deal [FR Doc. 2018–14060 Filed 6–28–18; 8:45 am]
applicable law.
with the national emergency declared in this
SEC. 10. The Secretary of the Treasury, in BILLING CODE 4810–AL–P
order, and I hereby prohibit such donations
consultation with the Secretary of State and
as provided by section 1 of this order. the Attorney General, is hereby authorized to
SEC. 4. The prohibitions in section 1
determine that circumstances no longer
include: DEPARTMENT OF HOMELAND
warrant the blocking of the property and
(a) The making of any contribution or interests in property of a person listed in the SECURITY
provision of funds, goods, or services by, to, Annex to this order, and to take necessary
or for the benefit of any person whose action to give effect to that determination. Coast Guard
property and interests in property are SEC. 11. The Secretary of the Treasury, in
blocked pursuant to this order; and consultation with the Secretary of State, is 33 CFR Part 100
(b) the receipt of any contribution or hereby authorized to submit recurring and
provision of funds, goods, or services from final reports to the Congress on the national [Docket Number USCG–2018–0340]
any such person. emergency declared in this order, consistent RIN 1625–AA08
SEC. 5. (a) Any transaction that evades or with section 401(c) of the NEA (50 U.S.C.
avoids, has the purpose of evading or 1641(c)) and section 204(c) of IEEPA (50 Special Local Regulation; Corpus
avoiding, causes a violation of, or attempts to U.S.C. 1703(c)).
violate any of the prohibitions set forth in
Christi Bay, Corpus Christi, TX
SEC. 12. This order is effective at 12:01
this order is prohibited. a.m., Eastern Standard Time, December 21, AGENCY: Coast Guard, DHS.
(b) Any conspiracy formed to violate any 2017. ACTION: Temporary final rule.
of the prohibitions set forth in this order is SEC. 13. This order is not intended to, and
prohibited. does not, create any right or benefit, SUMMARY: The Coast Guard is
SEC. 6. For the purposes of this order: substantive or procedural, enforceable at law establishing a temporary special local
(a) The term ‘‘person’’ means an individual or in equity by any party against the United
or entity; States, its departments, agencies, or entities,
regulation for certain navigable waters
(b) the term ‘‘entity’’ means a partnership, its officers, employees, or agents, or any other of Corpus Christi Bay. This action is
association, trust, joint venture, corporation, person. necessary to protect marine event
group, subgroup, or other organization; and Donald J. Trump participants, spectators and transiting
(c) the term ‘‘United States person’’ means THE WHITE HOUSE, vessels on these navigable waters during
any United States citizen, permanent resident
December 20, 2017.
the Youth World’s Championship
alien, entity organized under the laws of the regatta held at the Corpus Christi Yacht
United States or any jurisdiction within the Club. Entry of vessels or persons into
United States (including foreign branches), or Annex
this regulated area is prohibited unless
any person in the United States. 1. Mukhtar Hamid Shah; Date of Birth (DOB)
SEC. 7. For those persons whose property
authorized by the Captain of the Port
August 11, 1939; alt. DOB November 8,
and interests in property are blocked 1939; nationality, Pakistan
Sector Corpus Christi or designated
pursuant to this order who might have a 2. Angel Rondon Rijo; DOB July 16, 1950; representative.
sradovich on DSK3GMQ082PROD with RULES
constitutional presence in the United States, nationality, Dominican Republic DATES: This rule is effective from 6:15
I find that because of the ability to transfer 3. Dan Gertler; DOB December 23, 1973; a.m. on July 14, 2018 through 3 p.m. on
funds or other assets instantaneously, prior nationality, Israel; alt. nationality, July 21, 2018.
notice to such persons of measures to be Democratic Republic of the Congo
taken pursuant to this order would render 4. Maung Maung Soe; DOB March 1964; ADDRESSES: To view documents
those measures ineffectual. I therefore nationality, Burma mentioned in this preamble as being
determine that for these measures to be 5. Yahya Jammeh; DOB May 25, 1965; available in the docket, go to http://
effective in addressing the national nationality, The Gambia www.regulations.gov, type USCG–2018–
VerDate Sep<11>2014 16:30 Jun 28, 2018 Jkt 244001 PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 E:\FR\FM\29JNR1.SGM 29JNR1](https://thefederalregister.org/doc/83_FR_30667/page/8.svg)
Document Created: 2018-06-29 01:13:29
Document Modified: 2018-06-29 01:13:29
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective Date: June 29, 2018. | |
| Contact | OFAC: Assistant Director for Licensing, tel.: 202-622-2480; Assistant Director for Regulatory Affairs, tel.: 202-622-4855; Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the Department of the Treasury's Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410. | |
| FR Citation | 83 FR 30541 | |
| CFR Associated | Administrative Practice and Procedure; Banks; Banking; Blocking of Assets; Global Magnitsky; Penalties; Reporting and Recordkeeping Requirements and Sanctions |
2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR