Rule2022-01081
Amendment of Applicable Schedule Amount
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 21, 2022
Effective
January 21, 2022
Issuing agencies
Treasury DepartmentForeign Assets Control Office
Abstract
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing this final rule to make a technical amendment to the definition of the term "applicable schedule amount" in its regulations. In recent years, OFAC has adjusted its civil monetary penalties (CMPs) as required by the Federal Civil Penalties Inflation Adjustment Act, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. While OFAC's "applicable schedule amount" values are not civil monetary penalties that are required to be adjusted pursuant to such statute, OFAC is updating the definition of the term "applicable schedule amount" so that it will automatically rise with OFAC's CMPs, removing the necessity of updating the applicable schedule amount on an annual basis.
Full Text
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<title>Federal Register, Volume 87 Issue 14 (Friday, January 21, 2022)</title>
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[Federal Register Volume 87, Number 14 (Friday, January 21, 2022)]
[Rules and Regulations]
[Pages 3206-3207]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01081]
[[Page 3206]]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 501
Amendment of Applicable Schedule Amount
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is issuing this final rule to make a technical amendment
to the definition of the term ``applicable schedule amount'' in its
regulations. In recent years, OFAC has adjusted its civil monetary
penalties (CMPs) as required by the Federal Civil Penalties Inflation
Adjustment Act, as amended by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015. While OFAC's ``applicable
schedule amount'' values are not civil monetary penalties that are
required to be adjusted pursuant to such statute, OFAC is updating the
definition of the term ``applicable schedule amount'' so that it will
automatically rise with OFAC's CMPs, removing the necessity of updating
the applicable schedule amount on an annual basis.
DATES: This rule is effective January 21, 2022.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, tel.: 202-622-2480; Assistant Director for Regulatory
Affairs, tel.: 202-622-4855; or Assistant Director for Sanctions
Compliance & Evaluation, tel.: 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: <a href="http://www.treas.gov/ofac">www.treas.gov/ofac</a>.
Background
On September 8, 2008, OFAC issued as an interim final rule the
``Economic Sanctions Enforcement Guidelines'' (Enforcement Guidelines)
as appendix A to the Reporting, Procedures and Penalties Regulations at
31 CFR part 501 (73 FR 51933, September 8, 2008). On November 9, 2009,
OFAC re-issued as a final rule the Enforcement Guidelines (74 FR 57593,
November 9, 2009). OFAC's Enforcement Guidelines provide a general
framework for the enforcement of all economic sanctions programs
administered by OFAC. Section V.B.2.a.ii. of the Enforcement Guidelines
states that the base amount of a proposed civil penalty in a Pre-
Penalty Notice shall be the ``applicable schedule amount,'' subject to
certain caps noted in that section, where the case is deemed non-
egregious and the apparent violation has come to OFAC's attention by
means other than a voluntary self-disclosure. Section I.B. of the
Enforcement Guidelines provides a definition of ``applicable schedule
amount.''
Separately, as required by the Federal Civil Penalties Inflation
Adjustment Act (1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461
note), as amended by the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C.
2461 note) (the FCPIA Act), OFAC has adjusted its CMPs seven times
since the FCPIA Act went into effect on November 2, 2015: An initial
catch-up adjustment on August 1, 2016 (81 FR 43070, July 1, 2016); an
additional initial catch-up adjustment related to CMPs for failure to
comply with a requirement to furnish information, the late filing of a
required report, and failure to maintain records that were
inadvertently omitted from the August 1, 2016 initial catch-up
adjustment on October 5, 2020 (85 FR 54911, September 3, 2020); and
annual adjustments on February 10, 2017 (82 FR 10434, February 10,
2017); March 19, 2018 (83 FR 11876, March 19, 2018); June 14, 2019 (84
FR 27714, June 14, 2019); April 9, 2020 (85 FR 19884, April 9, 2020);
and March 17, 2021 (86 FR 14534, March 17, 2021).
OFAC's applicable schedule amount values in the Enforcement
Guidelines, while not required to be adjusted pursuant to the FCPIA
Act, correspond in certain ways with OFAC's CMPs. As a result, OFAC
issued final rules on August 11, 2020 (85 FR 48474, August 11, 2020)
and April 12, 2021 (86 FR 18895, April 12, 2021) amending the
definition of ``applicable schedule amount'' in section I.B. of
appendix A to 31 CFR part 501 to adjust applicable schedule amount
values for transactions valued at $200,000 or more to correspond with
recent CMP adjustments required by the FCPIA Act.
By a separate rule, OFAC will publish its annual adjustment of CMPs
pursuant to the FCPIA Act for 2022. Today, OFAC is amending the
definition of ``applicable schedule amount'' in section I.B. of
appendix A to 31 CFR part 501 to automatically adjust the applicable
schedule amount value for transactions valued at $200,000 or more as
new CMP adjustments are published. Specifically, OFAC is amending
section I.B.7. such that in the case of transactions valued at $200,000
or more, the applicable schedule amount is equivalent to the statutory
maximum civil penalty per violation of the International Emergency
Economic Powers Act (50 U.S.C. 1701-1706, at 1705) listed in section
V.B.2.a.v of appendix A to 31 CFR part 501. This change is not required
pursuant to the FCPIA Act; however, OFAC is making this change to
ensure the applicable schedule amount value continues to correspond
appropriately to OFAC's CMPs as the CMPs are adjusted annually pursuant
to the FCPIA Act. In addition, OFAC is making technical edits to the
authority citation to conform to Federal Register guidance.
Public Participation
Because this final rule imposes no obligations on any person, but
only amends OFAC's enforcement policy and procedures based on existing
substantive rules, provisions of the Administrative Procedure Act (5
U.S.C. 553) requiring notice of proposed rulemaking, opportunity for
public participation, and delay in effective date are inapplicable.
Further, this final rule is not a significant regulatory action for
purposes of Executive Order 12866 of September 30, 1993, ``Regulatory
Planning and Review'' (58 FR 51735, October 4, 1993). 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 Paperwork Reduction Act does not apply because this rule does
not impose information collection requirements that would require the
approval of the Office of Management and Budget under 44 U.S.C. 3501 et
seq.
List of Subjects in 31 CFR Part 501
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.
For the reasons set forth in the preamble, OFAC amends 31 CFR part
501 as follows:
PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS
0
1. The authority citation for part 501 is revised to read as follows:
Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C.
3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c, 2370(a), 6009, 6032,
7205, 8501-8551; 31 U.S.C. 321(b); 50 U.S.C. 1701-1706, 4301-4341;
Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note).
0
2. In appendix A to part 501, revise section I.B.7. to read as follows:
[[Page 3207]]
Appendix A to Part 501--Economic Sanctions Enforcement Guidelines.
* * * * *
1. Definitions
* * * * *
B. * * *
7. The statutory maximum civil penalty per violation of IEEPA
listed in section V.B.2.a.v. of this appendix with respect to a
transaction valued at $200,000 or more.
* * * * *
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-01081 Filed 1-20-22; 8:45 am]
BILLING CODE 4810-AL-P
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