83 FR 55269 - Iranian Transactions and Sanctions Regulations
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control Federal Register Volume 83, Issue 214 (November 5, 2018)
Office of Foreign Assets Control
Federal Register Volume 83, Issue 214 (November 5, 2018)
| Page Range | 55269-55271 | |
| FR Document | 2018-24058 |
[Federal Register Volume 83, Number 214 (Monday, November 5, 2018)] [Rules and Regulations] [Pages 55269-55271] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-24058] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Part 560 and Appendix A to Chapter V Iranian Transactions and 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 Iranian Transactions and Sanctions Regulations (ITSR) to implement further the President's May 8, 2018 decision to cease the United States' participation in the Joint Comprehensive Plan of Action (JCPOA) by making changes to reflect the re-imposition of sanctions pursuant to certain sections of Executive Order 13846 and changes to certain sanctions lists maintained by OFAC. OFAC is also amending an existing general license in the ITSR to authorize U.S. persons to sell personal property in Iran and transfer the proceeds to the United States. DATES: Effective: November 5, 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 on OFAC's website (www.treasury.gov/ofac). Background Implementing the President's May 8, 2018 Decision by Reinstating Certain Authorities in the ITSR and Making Certain Technical and Conforming Changes On May 8, 2018, the President issued National Security Presidential Memorandum-11 (NSPM-11), which set forth his decision to cease the United States' participation in the JCPOA. In NSPM-11, the President directed the Secretary of State and the Secretary of the Treasury to immediately begin taking steps to reimpose all U.S. sanctions lifted or waived in connection with the JCPOA as expeditiously as possible, and in no case later than 180 days from the date of NSPM-11. In accordance with his decision, on August 6, 2018, the President issued Executive Order 13846 (83 FR 38939, August 7, 2018) (E.O. 13846) to, among other things, re-impose relevant authorities from certain Executive Orders that had been revoked previously. Today, OFAC is amending the ITSR, 31 CFR part 560, and appendix A to 31 CFR chapter V to take additional regulatory steps to implement the President's May 8, 2018 decision. Previously revoked authorities. On January 16, 2016, the President issued Executive Order 13716 (81 FR 3693, January 21, 2016) (E.O. 13716), which, among other things, revoked Executive Order 13622 of July 30, 2012 (77 FR 45897, August 2, 2012) (E.O. 13622) in connection with the JCPOA. In light of this revocation, on January 21, 2016, OFAC amended the ITSR to, among other things, remove regulatory provisions that implemented sections 5 and 6 of E.O. 13622. (See 81 FR 3330). In that rule, OFAC also made certain technical and conforming changes to the ITSR and appendix A to 31 CFR chapter V related to (1) the removal of certain individuals and entities from OFAC's Specially Designated Nationals and Blocked Persons List (SDN List), the Foreign Sanctions Evaders List, and the Non-SDN Iran Sanctions Act List on January 16, 2016, and (2) the concurrent transfer of certain individuals and entities that OFAC had previously identified as blocked pursuant to E.O. 13599 of February 5, 2012, to a ``List of Persons Identified as Blocked Solely Pursuant to Executive Order 13599'' (E.O. 13599 List), which OFAC made available on its website on January 16, 2016. Reinstating certain authorities and removing E.O. 13599 List references. In furtherance of the President's May 8, 2018 decision and in light of the issuance of E.O. 13846, OFAC is now amending the ITSR and appendix A to 31 CFR chapter V by: (1) Reinstating the regulatory provisions implementing the authorities that were previously in sections 5 and 6 of E.O. 13622 and now are in sections 1 and 10 of E.O. 13846 by revising paragraph (c) of Sec. 560.211 of the ITSR; and (2) removing references to the E.O. 13599 List by revising notes in Sec. Sec. 560.211 and 560.304 of the ITSR, revising note 1 to Sec. 560.324 of the ITSR, and revising a note to appendix A to 31 CFR chapter V. Sections 1(a)(i) and 1(a)(ii) of E.O. 13846 authorize the Secretary of the Treasury to block all property and interests in property that are in the United States, that come within the United States, or that are or come within the possession or control of any U.S. person, including any foreign branch, of a person upon determining that: (i) On or after August 7, 2018, the person has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the purchase or acquisition of U.S. bank notes or precious metals by the Government of Iran, or (ii) on or after November 5, 2018, the person has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the National Iranian Oil Company (NIOC), the Naftiran Intertrade Company (NICO), or the Central Bank of Iran. Section 16 of E.O. 13846 defines the terms ``NIOC'' and ``NICO'' as including any entity owned or controlled by, or operating for or on behalf of, respectively, NIOC or NICO. Section 10 of E.O. 13846 provides that section 1(a) of the order, among other specified provisions, shall not apply to any person for conducting or facilitating a transaction involving a project described in subsection (a) of section 603 of the Iran Threat Reduction and Syria Human Rights Act of 2012 to which the exception under that section applies. Although it is not named in the section, section 10 of E.O. 13846 refers to the Shah Deniz natural gas field in Azerbaijan's sector of the Caspian Sea and related pipeline projects to bring the gas from Azerbaijan to Europe and Turkey. By separate action, effective November 5, 2018, OFAC is removing the E.O. 13599 List from its website and relisting on the SDN List, as [[Page 55270]] appropriate, individuals and entities that were previously listed on the E.O. 13599 List. Sale of Certain Personal Property and Transfer of Proceeds to the United States Separately, OFAC is amending an existing general license in the ITSR to authorize U.S. persons to sell certain personal property in Iran and transfer the proceeds to the United States. Section 560.543 of the ITSR authorizes U.S. persons to engage in transactions necessary and ordinarily incident to the sale of real property in Iran, and to transfer the proceeds to the United States, provided that such real property was either acquired before the individual became a U.S. person or inherited from persons in Iran. OFAC routinely receives and approves specific license applications related to the sale of personal property in Iran which, prior to today's rule, were outside the scope of Sec. 560.543. OFAC is therefore amending this general license to authorize U.S. persons to engage in transactions necessary and ordinarily incident to the sale of personal property in Iran, and to transfer the proceeds to the United States, provided that such personal property was either (1) acquired before the individual became a U.S. person or (2) inherited from persons in Iran. This authorization will complement Sec. 560.518, which authorizes certain transactions in Iranian-origin household and personal effects, as referenced in a new note OFAC is adding to Sec. 560.518. Public Participation Because the amendment of the ITSR involves a foreign affairs function, the provisions of Executive Order 12866 and the Administrative Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking, opportunity for public participation, and delay in effective date, as well as the provisions of Executive Order 13771, are inapplicable. Because no notice of proposed rulemaking is required for this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply. Paperwork Reduction Act The collections of information related to the ITSR 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 560 Administrative practice and procedure, Banks, banking, Iran. 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 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS 0 1. The authority citation for part 560 is revised to read as follows: Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601- 1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3 CFR, 2012 Comp., p. 215; E.O. 13846, 83 FR 38939. Subpart B--Prohibitions 0 2. Amend Sec. 560.211 by revising paragraph (c), adding a note to paragraph (c)(2), and revising notes 1 and 2 to paragraphs (a) through (c) to read as follows: Sec. 560.211 Prohibited transactions involving blocked property. * * * * * (c)(1) 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, including any foreign branch, of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: (i) Any person determined by the Secretary of the Treasury, in consultation with the Secretary of State, 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 paragraphs (a) through (c)(1)(i) of this section; or (ii) Any person determined by the Secretary of the Treasury, in consultation with the Secretary of State: (A) To have, on or after August 7, 2018, materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the purchase or acquisition of U.S. bank notes or precious metals by the Government of Iran; or (B) To have, on or after November 5, 2018, materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the National Iranian Oil Company (NIOC); the Naftiran Intertrade Company (NICO); any entity owned or controlled by, or operating for or on behalf of, NIOC or NICO; or the Central Bank of Iran. (2) Paragraph (c)(1)(ii) of this section shall not apply with respect to any person for conducting or facilitating a transaction involving a project-- (i) For the development of natural gas and the construction and operation of a pipeline to transport natural gas from Azerbaijan to Turkey and Europe; (ii) That provides to Turkey and countries in Europe energy security and energy independence from the Government of the Russian Federation and the Government of Iran; and (iii) That was initiated before August 10, 2012 pursuant to a production-sharing agreement, or an ancillary agreement necessary to further a production-sharing agreement, entered into with, or a license granted by, the government of a country other than Iran before August 10, 2012. Note to paragraph (c)(2) of Sec. 560.211: The natural gas development and pipeline project referred to in this paragraph is the project to develop the Shah Deniz natural gas field in Azerbaijan's sector of the Caspian Sea and related pipeline projects to bring the gas from Azerbaijan to Europe and Turkey. Note 1 to paragraphs (a) through (c) of Sec. 560.211: The names of persons that the Office of Foreign Assets Control (OFAC) has designated or identified pursuant to Executive Order 13599 (E.O. 13599) or sections 1(a)(i) or 1(a)(ii) of Executive Order 13846, 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 ``[IRAN].'' 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. 560.425 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. E.O. 13599 blocks the property and interests in property of the Government of Iran and Iranian financial institutions, as defined in Sec. 560.304 and Sec. 560.324, respectively. The property and [[Page 55271]] interests in property of persons who meet the definitions of the terms Government of Iran or Iranian financial institution are blocked pursuant to this section regardless of whether the names of such persons are published in the Federal Register or incorporated into the SDN List. Note 2 to paragraphs (a) through (c) of Sec. 560.211: 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-IRAN].'' * * * * * Subpart C--General Definitions 0 3. Revise Note 1 to Sec. 560.304 to read as follows: Sec. 560.304 Government of Iran. * * * * * Note 1 to Sec. 560.304: The names of persons that the Office of Foreign Assets Control (OFAC) has identified as meeting this definition are published in the Federal Register and incorporated into OFAC's Specially Designated Nationals and Blocked Persons List (SDN List) with the identifier ``[IRAN].'' The SDN List is accessible through the following page on OFAC's website: www.treasury.gov/sdn. However, the property and interests in property of any persons meeting the definition of the term Government of Iran are blocked pursuant to Sec. 560.211 regardless of whether the names of such persons are published in the Federal Register or incorporated into the SDN List. * * * * * 0 4. Revise Note 1 to Sec. 560.324 to read as follows: Sec. 560.324 Iranian financial institution. * * * * * Note 1 to Sec. 560.324: The names of persons that the Office of Foreign Assets Control (OFAC) has identified as meeting this definition are published in the Federal Register and incorporated into OFAC's Specially Designated Nationals and Blocked Persons List (SDN List) with the identifier ``[IRAN].'' The SDN List is accessible through the following page on OFAC's website: www.treasury.gov/sdn. However, the property and interests in property of any persons meeting the definition of the term Iranian financial institution are blocked pursuant to Sec. 560.211 regardless of whether the names of such persons are published in the Federal Register or incorporated into the SDN List. * * * * * Subpart E--Licenses, Authorizations, and Statements of Licensing Policy 0 5. Add a Note to Sec. 560.518 to read as follows: Sec. 560.518 Transactions in Iranian-origin and Iranian government property. * * * * * Note to Sec. 560.518: See Sec. 560.543 for an authorization to engage in all transactions necessary and ordinarily incident to the sale of certain real and personal property located in Iran. 0 6. Amend Sec. 560.543 by revising the section heading, paragraph (a), and paragraph (b)(2) to read as follows: Sec. 560.543 Sale of certain real and personal property in Iran and transfer of related funds to the United States. (a) Individuals who are U.S. persons are authorized to engage in transactions necessary and ordinarily incident to the sale of real and personal property in Iran and to transfer the proceeds to the United States, provided that such real and personal property was acquired before the individual became a U.S. person or inherited from persons in Iran. Authorized transactions include engaging the services of any persons in Iran necessary for the sale, such as an attorney, funds agent, or broker. (b) * * * (1) * * * (2) The re-investment in Iran of the proceeds from the real or personal property sales authorized in paragraph (a) of this section; or * * * * * Appendix A to Chapter V--[Amended] 0 7. Revise the authority citation for appendix A to chapter V to read as follows: Authority: 3 U.S.C. 301; 8 U.S.C. 1182, 1189; 18 U.S.C. 2339B; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. App. 1-44; Public Law 110-286, 122 Stat. 2632 (50 U.S.C. 1701 note); Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); Public Law 112-208, 126 Stat. 1502; Public Law 113-278, 128 Stat. 3011 (50 U.S.C. 1701 note); Public Law 114-102, 129 Stat. 2205; Public Law 114-122, 130 Stat. 93; Public Law 114-194, 130 Stat. 674 (50 U.S.C. 1701 note); Public Law 114-328, 130 Stat. 2000 (22 U.S.C. 2656 note); Public Law 115- 44, 131 Stat. 886. 0 8. Revise note 8 to appendix A to chapter V to read as follows: Appendix A to Chapter V--Information Pertaining to the Specially Designated Nationals and Blocked Persons List * * * * * Notes: * * * * * * * * 8. The SDN List includes the names of persons identified as the Government of Iran or an Iranian financial institution and other persons whose property and interests in property are blocked pursuant to Sec. 560.211 of the Iranian Transactions and Sanctions Regulations, 31 CFR part 560 (ITSR). The SDN List entries for such persons include the identifier ``[IRAN].'' U.S. persons are advised to review 31 CFR part 560 prior to engaging in transactions involving the persons included on the SDN List with the identifier ``[IRAN].'' U.S. persons are further cautioned that persons identified as the Government of Iran or an Iranian financial institution and any other person whose property and interests in property are blocked pursuant to 31 CFR 560.211 also may be designated or blocked pursuant to other sanctions programs administered by OFAC. The SDN List entry for such a person may include--in addition to the identifier ``[IRAN]''--identifier(s) for the other sanctions program(s) pursuant to which the person is listed on the SDN List. Moreover, the prohibitions set forth in the ITSR, and the compliance obligations, with respect to persons who meet the definition of the Government of Iran in Sec. 560.304 of the ITSR or the definition of Iranian financial institution in Sec. 560.324 of the ITSR apply regardless of whether such persons are identified on the SDN List. Dated: October 30, 2018. Andrea Gacki, Director, Office of Foreign Assets Control. [FR Doc. 2018-24058 Filed 11-2-18; 8:45 am] BILLING CODE 4810-AL-P
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■ 3. In § 23.140, revise paragraph (a) Electronic Availability available on its website on January 16,
introductory text to read as follows: 2016.
This document and additional Reinstating certain authorities and
§ 23.140 What information must States information concerning OFAC are removing E.O. 13599 List references. In
furnish to the Bureau of Indian Affairs? available on OFAC’s website furtherance of the President’s May 8,
(a) Any State court entering a final (www.treasury.gov/ofac). 2018 decision and in light of the
adoption decree or order in any Background issuance of E.O. 13846, OFAC is now
voluntary or involuntary Indian-child amending the ITSR and appendix A to
adoptive placement must furnish a copy Implementing the President’s May 8, 31 CFR chapter V by: (1) Reinstating the
of the decree or order within 30 days to 2018 Decision by Reinstating Certain regulatory provisions implementing the
the Bureau of Indian Affairs, Chief, Authorities in the ITSR and Making authorities that were previously in
Division of Human Services, 1849 C Certain Technical and Conforming sections 5 and 6 of E.O. 13622 and now
Street NW, Mail Stop 3645 MIB, Changes are in sections 1 and 10 of E.O. 13846
Washington, DC 20240, along with the On May 8, 2018, the President issued by revising paragraph (c) of § 560.211 of
following information, in an envelope National Security Presidential the ITSR; and (2) removing references to
marked ‘‘Confidential’’: Memorandum-11 (NSPM–11), which set the E.O. 13599 List by revising notes in
* * * * * forth his decision to cease the United §§ 560.211 and 560.304 of the ITSR,
Dated: August 16, 2018. States’ participation in the JCPOA. In revising note 1 to § 560.324 of the ITSR,
NSPM–11, the President directed the and revising a note to appendix A to 31
Tara Sweeney,
Secretary of State and the Secretary of CFR chapter V.
Assistant Secretary—Indian Affairs. Sections 1(a)(i) and 1(a)(ii) of E.O.
[FR Doc. 2018–24173 Filed 11–2–18; 8:45 am]
the Treasury to immediately begin
taking steps to reimpose all U.S. 13846 authorize the Secretary of the
BILLING CODE 4337–15–P
sanctions lifted or waived in connection Treasury to block all property and
with the JCPOA as expeditiously as interests in property that are in the
United States, that come within the
possible, and in no case later than 180
DEPARTMENT OF THE TREASURY United States, or that are or come within
days from the date of NSPM–11. In
the possession or control of any U.S.
Office of Foreign Assets Control accordance with his decision, on August
person, including any foreign branch, of
6, 2018, the President issued Executive
a person upon determining that: (i) On
31 CFR Part 560 and Appendix A to Order 13846 (83 FR 38939, August 7,
or after August 7, 2018, the person has
Chapter V 2018) (E.O. 13846) to, among other
materially assisted, sponsored, or
things, re-impose relevant authorities
provided financial, material, or
Iranian Transactions and Sanctions from certain Executive Orders that had
technological support for, or goods or
Regulations been revoked previously. Today, OFAC
services in support of, the purchase or
is amending the ITSR, 31 CFR part 560, acquisition of U.S. bank notes or
AGENCY: Office of Foreign Assets and appendix A to 31 CFR chapter V to
Control, Treasury. precious metals by the Government of
take additional regulatory steps to Iran, or (ii) on or after November 5,
ACTION: Final rule. implement the President’s May 8, 2018 2018, the person has materially assisted,
decision. sponsored, or provided financial,
SUMMARY: The Department of the
Treasury’s Office of Foreign Assets Previously revoked authorities. On material, or technological support for, or
Control (OFAC) is amending the Iranian January 16, 2016, the President issued goods or services in support of, the
Transactions and Sanctions Regulations Executive Order 13716 (81 FR 3693, National Iranian Oil Company (NIOC),
(ITSR) to implement further the January 21, 2016) (E.O. 13716), which, the Naftiran Intertrade Company
President’s May 8, 2018 decision to among other things, revoked Executive (NICO), or the Central Bank of Iran.
cease the United States’ participation in Order 13622 of July 30, 2012 (77 FR Section 16 of E.O. 13846 defines the
the Joint Comprehensive Plan of Action 45897, August 2, 2012) (E.O. 13622) in terms ‘‘NIOC’’ and ‘‘NICO’’ as including
(JCPOA) by making changes to reflect connection with the JCPOA. In light of any entity owned or controlled by, or
the re-imposition of sanctions pursuant this revocation, on January 21, 2016, operating for or on behalf of,
to certain sections of Executive Order OFAC amended the ITSR to, among respectively, NIOC or NICO. Section 10
13846 and changes to certain sanctions other things, remove regulatory of E.O. 13846 provides that section 1(a)
lists maintained by OFAC. OFAC is also provisions that implemented sections 5 of the order, among other specified
amending an existing general license in and 6 of E.O. 13622. (See 81 FR 3330). provisions, shall not apply to any
the ITSR to authorize U.S. persons to In that rule, OFAC also made certain person for conducting or facilitating a
sell personal property in Iran and technical and conforming changes to the transaction involving a project
transfer the proceeds to the United ITSR and appendix A to 31 CFR chapter described in subsection (a) of section
States. V related to (1) the removal of certain 603 of the Iran Threat Reduction and
individuals and entities from OFAC’s Syria Human Rights Act of 2012 to
DATES: Effective: November 5, 2018. Specially Designated Nationals and which the exception under that section
FOR FURTHER INFORMATION CONTACT: Blocked Persons List (SDN List), the applies. Although it is not named in the
OFAC: Assistant Director for Licensing, Foreign Sanctions Evaders List, and the section, section 10 of E.O. 13846 refers
tel.: 202–622–2480; Assistant Director Non-SDN Iran Sanctions Act List on to the Shah Deniz natural gas field in
for Regulatory Affairs, tel.: 202–622– January 16, 2016, and (2) the concurrent Azerbaijan’s sector of the Caspian Sea
4855; Assistant Director for Sanctions transfer of certain individuals and and related pipeline projects to bring
Compliance & Evaluation, tel.: 202–622– entities that OFAC had previously the gas from Azerbaijan to Europe and
2490; or the Department of the identified as blocked pursuant to E.O. Turkey.
Treasury’s Office of the Chief Counsel 13599 of February 5, 2012, to a ‘‘List of By separate action, effective
(Foreign Assets Control), Office of the Persons Identified as Blocked Solely November 5, 2018, OFAC is removing
General Counsel, tel.: 202–622–2410. Pursuant to Executive Order 13599’’ the E.O. 13599 List from its website and
SUPPLEMENTARY INFORMATION: (E.O. 13599 List), which OFAC made relisting on the SDN List, as
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appropriate, individuals and entities collection of information unless the (A) To have, on or after August 7,
that were previously listed on the E.O. collection of information displays a 2018, materially assisted, sponsored, or
13599 List. valid control number. provided financial, material, or
technological support for, or goods or
Sale of Certain Personal Property and List of Subjects in 31 CFR Part 560
services in support of, the purchase or
Transfer of Proceeds to the United
Administrative practice and acquisition of U.S. bank notes or
States
procedure, Banks, banking, Iran. precious metals by the Government of
Separately, OFAC is amending an Iran; or
existing general license in the ITSR to For the reasons set forth in the
preamble, the Department of the (B) To have, on or after November 5,
authorize U.S. persons to sell certain 2018, materially assisted, sponsored, or
personal property in Iran and transfer Treasury’s Office of Foreign Assets
Control amends 31 CFR chapter V as provided financial, material, or
the proceeds to the United States. technological support for, or goods or
Section 560.543 of the ITSR authorizes follows:
services in support of, the National
U.S. persons to engage in transactions PART 560—IRANIAN TRANSACTIONS Iranian Oil Company (NIOC); the
necessary and ordinarily incident to the AND SANCTIONS REGULATIONS Naftiran Intertrade Company (NICO);
sale of real property in Iran, and to any entity owned or controlled by, or
transfer the proceeds to the United ■ 1. The authority citation for part 560 operating for or on behalf of, NIOC or
States, provided that such real property is revised to read as follows: NICO; or the Central Bank of Iran.
was either acquired before the (2) Paragraph (c)(1)(ii) of this section
individual became a U.S. person or Authority: 3 U.S.C. 301; 18 U.S.C. 2339B,
2332d; 22 U.S.C. 2349aa–9; 22 U.S.C. 7201– shall not apply with respect to any
inherited from persons in Iran. OFAC person for conducting or facilitating a
7211; 31 U.S.C. 321(b); 50 U.S.C. 1601–1651,
routinely receives and approves specific 1701–1706; Pub. L. 101–410, 104 Stat. 890 transaction involving a project—
license applications related to the sale (28 U.S.C. 2461 note); Pub. L. 110–96, 121 (i) For the development of natural gas
of personal property in Iran which, prior Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111– and the construction and operation of a
to today’s rule, were outside the scope 195, 124 Stat. 1312 (22 U.S.C. 8501–8551); pipeline to transport natural gas from
of § 560.543. OFAC is therefore Pub. L. 112–81, 125 Stat. 1298 (22 U.S.C. Azerbaijan to Turkey and Europe;
amending this general license to 8513a); Pub. L. 112–158, 126 Stat. 1214 (22 (ii) That provides to Turkey and
authorize U.S. persons to engage in U.S.C. 8701–8795); E.O. 12613, 52 FR 41940, countries in Europe energy security and
transactions necessary and ordinarily 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 energy independence from the
FR 14615, 3 CFR, 1995 Comp., p. 332; E.O.
incident to the sale of personal property Government of the Russian Federation
12959, 60 FR 24757, 3 CFR, 1995 Comp., p.
in Iran, and to transfer the proceeds to 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 and the Government of Iran; and
the United States, provided that such Comp., p. 217; E.O. 13599, 77 FR 6659, 3 (iii) That was initiated before August
personal property was either (1) CFR, 2012 Comp., p. 215; E.O. 13846, 83 FR 10, 2012 pursuant to a production-
acquired before the individual became a 38939. sharing agreement, or an ancillary
U.S. person or (2) inherited from agreement necessary to further a
persons in Iran. This authorization will Subpart B—Prohibitions production-sharing agreement, entered
complement § 560.518, which into with, or a license granted by, the
authorizes certain transactions in ■ 2. Amend § 560.211 by revising government of a country other than Iran
Iranian-origin household and personal paragraph (c), adding a note to before August 10, 2012.
effects, as referenced in a new note paragraph (c)(2), and revising notes 1
Note to paragraph (c)(2) of § 560.211: The
OFAC is adding to § 560.518. and 2 to paragraphs (a) through (c) to natural gas development and pipeline project
read as follows: referred to in this paragraph is the project to
Public Participation develop the Shah Deniz natural gas field in
§ 560.211 Prohibited transactions
Because the amendment of the ITSR involving blocked property.
Azerbaijan’s sector of the Caspian Sea and
involves a foreign affairs function, the related pipeline projects to bring the gas from
provisions of Executive Order 12866 * * * * * Azerbaijan to Europe and Turkey.
and the Administrative Procedure Act (5 (c)(1) All property and interests in
property that are in the United States, Note 1 to paragraphs (a) through (c) of
U.S.C. 553) requiring notice of proposed § 560.211: The names of persons that the
rulemaking, opportunity for public that hereafter come within the United
Office of Foreign Assets Control (OFAC) has
participation, and delay in effective States, or that are or hereafter come designated or identified pursuant to
date, as well as the provisions of within the possession or control of any Executive Order 13599 (E.O. 13599) or
Executive Order 13771, are United States person, including any sections 1(a)(i) or 1(a)(ii) of Executive Order
inapplicable. Because no notice of foreign branch, of the following persons 13846, whose property and interests in
proposed rulemaking is required for this are blocked and may not be transferred, property therefore are blocked pursuant to
paid, exported, withdrawn, or otherwise this section, are published in the Federal
rule, the Regulatory Flexibility Act (5 Register and incorporated into OFAC’s
U.S.C. 601–612) does not apply. dealt in:
Specially Designated Nationals and Blocked
(i) Any person determined by the
Paperwork Reduction Act Persons List (SDN List) with the identifier
Secretary of the Treasury, in ‘‘[IRAN].’’ The SDN List is accessible through
The collections of information related consultation with the Secretary of State, the following page on OFAC’s website:
to the ITSR are contained in 31 CFR part to be owned or controlled by, or to have www.treasury.gov/sdn. Additional
501 (the ‘‘Reporting, Procedures and acted or purported to act for or on behalf information pertaining to the SDN List can be
Penalties Regulations’’). Pursuant to the of, directly or indirectly, any person found in appendix A to this chapter. See
Paperwork Reduction Act of 1995 (44 whose property and interests in § 560.425 concerning entities that may not be
U.S.C. 3507), those collections of property are blocked pursuant to listed on the SDN List but whose property
and interests in property are nevertheless
information have been approved by the paragraphs (a) through (c)(1)(i) of this
blocked pursuant to this section. E.O. 13599
Office of Management and Budget under section; or blocks the property and interests in property
control number 1505–0164. An agency (ii) Any person determined by the of the Government of Iran and Iranian
may not conduct or sponsor, and a Secretary of the Treasury, in financial institutions, as defined in § 560.304
person is not required to respond to, a consultation with the Secretary of State: and § 560.324, respectively. The property and
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![Federal Register / Vol. 83, No. 214 / Monday, November 5, 2018 / Rules and Regulations 55271
interests in property of persons who meet the Subpart E—Licenses, Authorizations, Notes: * * *
definitions of the terms Government of Iran and Statements of Licensing Policy * * * * *
or Iranian financial institution are blocked 8. The SDN List includes the names of
pursuant to this section regardless of whether ■ 5. Add a Note to § 560.518 to read as persons identified as the Government of Iran
the names of such persons are published in follows: or an Iranian financial institution and other
the Federal Register or incorporated into the persons whose property and interests in
SDN List. § 560.518 Transactions in Iranian-origin property are blocked pursuant to § 560.211 of
and Iranian government property. the Iranian Transactions and Sanctions
Note 2 to paragraphs (a) through (c) of * * * * * Regulations, 31 CFR part 560 (ITSR). The
§ 560.211: The International Emergency SDN List entries for such persons include the
Economic Powers Act (50 U.S.C. 1701–1706), Note to § 560.518: See § 560.543 for an
authorization to engage in all transactions identifier ‘‘[IRAN].’’ U.S. persons are advised
in section 203 (50 U.S.C. 1702), authorizes to review 31 CFR part 560 prior to engaging
the blocking of property and interests in necessary and ordinarily incident to the sale
of certain real and personal property located in transactions involving the persons
property of a person during the pendency of included on the SDN List with the identifier
in Iran.
an investigation. The names of persons ‘‘[IRAN].’’ U.S. persons are further cautioned
whose property and interests in property are ■ 6. Amend § 560.543 by revising the that persons identified as the Government of
blocked pending investigation pursuant to section heading, paragraph (a), and Iran or an Iranian financial institution and
this section also are published in the Federal paragraph (b)(2) to read as follows: any other person whose property and
Register and incorporated into the SDN List interests in property are blocked pursuant to
with the identifier ‘‘[BPI–IRAN].’’ § 560.543 Sale of certain real and personal 31 CFR 560.211 also may be designated or
property in Iran and transfer of related blocked pursuant to other sanctions programs
* * * * * funds to the United States. administered by OFAC. The SDN List entry
for such a person may include—in addition
Subpart C—General Definitions (a) Individuals who are U.S. persons to the identifier ‘‘[IRAN]’’—identifier(s) for
are authorized to engage in transactions the other sanctions program(s) pursuant to
necessary and ordinarily incident to the which the person is listed on the SDN List.
■ 3. Revise Note 1 to § 560.304 to read sale of real and personal property in Moreover, the prohibitions set forth in the
as follows: Iran and to transfer the proceeds to the ITSR, and the compliance obligations, with
§ 560.304 Government of Iran. United States, provided that such real respect to persons who meet the definition of
and personal property was acquired the Government of Iran in § 560.304 of the
* * * * * ITSR or the definition of Iranian financial
before the individual became a U.S.
Note 1 to § 560.304: The names of persons person or inherited from persons in institution in § 560.324 of the ITSR apply
that the Office of Foreign Assets Control regardless of whether such persons are
Iran. Authorized transactions include identified on the SDN List.
(OFAC) has identified as meeting this engaging the services of any persons in
definition are published in the Federal Dated: October 30, 2018.
Iran necessary for the sale, such as an
Register and incorporated into OFAC’s Andrea Gacki,
Specially Designated Nationals and Blocked
attorney, funds agent, or broker.
Persons List (SDN List) with the identifier (b) * * * Director, Office of Foreign Assets Control.
‘‘[IRAN].’’ The SDN List is accessible through (1) * * * [FR Doc. 2018–24058 Filed 11–2–18; 8:45 am]
the following page on OFAC’s website: (2) The re-investment in Iran of the BILLING CODE 4810–AL–P
www.treasury.gov/sdn. However, the proceeds from the real or personal
property and interests in property of any property sales authorized in paragraph
persons meeting the definition of the term (a) of this section; or DEPARTMENT OF HOMELAND
Government of Iran are blocked pursuant to * * * * * SECURITY
§ 560.211 regardless of whether the names of
such persons are published in the Federal Appendix A to Chapter V—[Amended] Coast Guard
Register or incorporated into the SDN List.
■ 7. Revise the authority citation for
* * * * * appendix A to chapter V to read as 33 CFR Part 100
follows: [Docket No. USCG–2018–0539]
■ 4. Revise Note 1 to § 560.324 to read
as follows: Authority: 3 U.S.C. 301; 8 U.S.C. 1182,
1189; 18 U.S.C. 2339B; 21 U.S.C. 1901–1908; Special Local Regulation: Fort
§ 560.324 Iranian financial institution. 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. Lauderdale Grand Prix of the Seas,
App. 1–44; Public Law 110–286, 122 Stat. Fort Lauderdale, FL
* * * * * 2632 (50 U.S.C. 1701 note); Public Law 111–
Note 1 to § 560.324: The names of persons 195, 124 Stat. 1312 (22 U.S.C. 8501–8551); AGENCY: Coast Guard, DHS.
that the Office of Foreign Assets Control Public Law 112–81, 125 Stat. 1298 (22 U.S.C. ACTION: Notice of enforcement of
(OFAC) has identified as meeting this 8513a); Public Law 112–158, 126 Stat. 1214 regulation.
definition are published in the Federal (22 U.S.C. 8701–8795); Public Law 112–208,
Register and incorporated into OFAC’s 126 Stat. 1502; Public Law 113–278, 128 Stat. SUMMARY: The Coast Guard will enforce
Specially Designated Nationals and Blocked 3011 (50 U.S.C. 1701 note); Public Law 114– a special local regulation daily from
Persons List (SDN List) with the identifier 102, 129 Stat. 2205; Public Law 114–122, 130 8:30 a.m. to 4:00 p.m. November 17
‘‘[IRAN].’’ The SDN List is accessible through Stat. 93; Public Law 114–194, 130 Stat. 674 through November 18, 2018 to provide
the following page on OFAC’s website: (50 U.S.C. 1701 note); Public Law 114–328, for the safety and security of navigable
www.treasury.gov/sdn. However, the 130 Stat. 2000 (22 U.S.C. 2656 note); Public waterways during the Fort Lauderdale
property and interests in property of any Law 115–44, 131 Stat. 886.
Grand Prix of the Seas. During the
persons meeting the definition of the term ■ 8. Revise note 8 to appendix A to enforcement periods, all non-participant
Iranian financial institution are blocked persons and vessels are prohibited from
chapter V to read as follows:
pursuant to § 560.211 regardless of whether
entering, transiting, anchoring in, or
the names of such persons are published in Appendix A to Chapter V—Information
the Federal Register or incorporated into the
remaining within the regulated area
Pertaining to the Specially Designated unless authorized by the Captain of the
SDN List. Nationals and Blocked Persons List Port Miami or a designated
* * * * * * * * * * representative. The operator of any
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Document Created: 2018-11-03 00:28:19
Document Modified: 2018-11-03 00:28:19
| 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: November 5, 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 55269 | |
| CFR Associated | Administrative Practice and Procedure; Banks; Banking and Iran |
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