Rule2022-13969
Global Terrorism Sanctions Regulations
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
July 1, 2022
Effective
July 1, 2022
Issuing agencies
Treasury DepartmentForeign Assets Control Office
Abstract
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is adopting a final rule amending the Global Terrorism Sanctions Regulations to implement a September 9, 2019 counter- terrorism Executive order.
Full Text
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<title>Federal Register, Volume 87 Issue 126 (Friday, July 1, 2022)</title>
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[Federal Register Volume 87, Number 126 (Friday, July 1, 2022)]
[Rules and Regulations]
[Pages 39337-39339]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13969]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 594
Global Terrorism Sanctions Regulations
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 adopting a final rule amending the Global Terrorism
Sanctions Regulations to implement a September 9, 2019 counter-
terrorism Executive order.
DATES: This rule is effective July 1, 2022.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Sanctions Compliance &
Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: <a href="http://www.treas.gov/ofac">www.treas.gov/ofac</a>.
Background
On June 6, 2003, OFAC issued the Global Terrorism Sanctions
Regulations, 31 CFR part 594 (68 FR 34196, June 6, 2003) (``the
Regulations''), to implement Executive Order (E.O.) 13224 of September
23, 2001, ``Blocking Property and Prohibiting Transactions With Persons
Who Commit, Threaten To Commit, or Support Terrorism'' (66 FR 49079,
September 25, 2001). OFAC has amended the Regulations on several
occasions.
On September 9, 2019, the President, invoking the authority of,
inter alia, the International Emergency Economic Powers Act (50 U.S.C.
1701-1706) (IEEPA) and the United Nations Participation Act (22 U.S.C.
287c) (UNPA), issued E.O. 13886, ``Modernizing Sanctions To Combat
Terrorism'' (84 FR 48041, September 12, 2019), effective September 10,
2019. In E.O. 13886, the President, finding it necessary to consolidate
and enhance sanctions to combat acts of terrorism and threats of
terrorism by foreign terrorists, terminated the national emergency
declared in E.O. 12947 of January 23, 1995, ``Prohibiting Transactions
With Terrorists Who Threaten To Disrupt the Middle East Peace Process''
(60 FR 5079, January 25, 1995), and revoked E.O. 12947, as amended by
E.O. 13099 of August 20, 1998, ``Prohibiting Transactions With
Terrorists Who Threaten To Disrupt the Middle East Peace Process'' (63
FR 45167, August 25, 1998). In addition, the President amended E.O.
13224, in order to build upon initial steps taken in E.O. 12947, to
further strengthen and consolidate sanctions to combat the continuing
threat posed by international terrorism, and in order to take
additional steps to deal with the national emergency declared in E.O.
13224, with respect to the continuing and immediate threat of grave
acts of terrorism and threats of terrorism committed by foreign
terrorists, which include acts of terrorism that threaten the Middle
East peace process.
Section 1 of E.O. 13886 replaces in its entirety section 1 of E.O.
13224, which had been amended by a number of prior Executive orders
(E.O. 13224, as amended by all such authorities, is referred to herein
as ``amended E.O. 13224''), but does not amend the Annex to E.O. 13224,
which was previously amended by E.O. 13268 of July 2, 2002,
``Termination of Emergency With Respect to the Taliban and Amendment of
Executive Order 13224 of September 23, 2001'' (67 FR 44751, July 3,
2002) (``amended Annex to E.O. 13224''). New section 1(a) of amended
E.O. 13224 blocks 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: (i) the persons listed in the amended Annex to
E.O. 13224; (ii) foreign persons determined by the Secretary of State,
in consultation with the Secretary of the Treasury, the Attorney
General, and the Secretary of Homeland Security: (A) to have committed
or have attempted to commit, to pose a significant risk of committing,
or to have participated in training to commit acts of terrorism that
threaten the security of United States nationals or the national
security, foreign policy, or economy of the United States; or (B) to be
leader of an entity: (1) listed in the amended Annex to E.O. 13224; or
(2) whose property and interests in property are blocked pursuant to a
determination by the Secretary of State pursuant to amended E.O. 13224;
(iii) persons determined by the Secretary of the Treasury, in
consultation with the Secretary of State, the Secretary of Homeland
Security, and the Attorney General: (A) to be owned, controlled, or
directed by, or to have acted or purported to act for or on behalf
[[Page 39338]]
of, directly or indirectly, or any person whose property and interests
in property are blocked pursuant to amended E.O. 13224; (B) to own or
control, directly or indirectly, any person whose property and
interests in property are blocked pursuant to amended E.O. 13224; (C)
to have materially assisted, sponsored, or provided financial,
material, or technological support for, or goods or services to or in
support of, an act of terrorism as defined in section 3(d) of amended
E.O. 13224, or any person whose property and interests in property are
blocked pursuant to amended E.O. 13224; (D) to have participated in
training related to terrorism provided by any person whose property and
interests in property are blocked pursuant to amended E.O. 13224; (E)
to be a leader or official of an entity whose property and interests in
property are blocked pursuant to: (1) a determination by the Secretary
of the Treasury pursuant to amended E.O. 13224; or (2) section (a)(iv)
of section 1 of amended E.O. 13224; or (F) to have attempted or
conspired to engage in any of the activities described in sections
(a)(iii)(A) through (E) of section 1 of amended E.O. 13224; and (iv)
persons whose property and interests in property were blocked pursuant
to E.O. 12947, as amended, on or after January 23, 1995 and remained
blocked immediately prior to September 24, 2001 (the effective date of
amended E.O. 13224). The property and interests in property of the
persons described above may not be transferred, paid, exported,
withdrawn, or otherwise dealt in.
New section 1(b) of amended E.O. 13224 authorizes the Secretary of
the Treasury to prohibit the opening, and prohibit or impose strict
conditions on the maintaining, in the United States, of a correspondent
account or payable-through account of any foreign financial institution
that the Secretary of the Treasury, in consultation with the Secretary
of State, has determined, on or after September 24, 2001 (the effective
date of amended E.O. 13224), has knowingly conducted or facilitated any
significant transaction on behalf of any person whose property and
interests in property are blocked pursuant to amended E.O. 13224.
Section 2 of E.O. 13886 amends section 5 of E.O. 13224 by replacing
the reference to section 1(d) with a reference to section 1(a)(iii) to
make a conforming change to reference the similar, but expanded,
designation criteria in new section 1(a)(iii) of amended E.O. 13224.
Regulatory Amendments
OFAC is amending the Regulations to implement the provisions of
E.O. 13886 that amend sections 1(a) and 5 of E.O. 13224, as well as to
make other technical and conforming changes for this amendment.
Specifically, OFAC is amending the Regulations as follows: (i) amending
the authority citation to incorporate E.O. 13886 as a new authority and
the Hizballah International Financing Prevention Act of 2015 (Pub. L.
114-102, 129 Stat. 2205, 50 U.S.C. 1701 note), as amended; (ii)
amending Sec. 594.201 to reflect the new designation criteria
contained in section 1(a) of amended E.O. 13224; (iii) updating the
definition of the term effective date in Sec. 594.302 to account for
revisions to Sec. 594.201; (iv) adjusting or removing cross-references
in Sec. 594.301 and elsewhere in the Regulations to certain
subparagraphs of revised Sec. 594.201; and (v) updating Sec. 594.802
to add certain presidential delegations. OFAC anticipates implementing
section 1(b) of amended E.O. 13224 at a later date.
Public Participation
Because the amendment of the Regulations involves a foreign affairs
function, the provisions of E.O. 12866 of September 30, 1993,
``Regulatory Planning and Review'' (58 FR 51735, October 4, 1993), and
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. 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 15015-0164. 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 594
Administrative practice and procedure, Banks, banking, Blocking of
assets, Credit, Exports, Foreign Trade, Penalties, Reporting and
recordkeeping requirements, Sanctions, Security, Services, Terrorism.
For the reasons set forth in the preamble, OFAC amends 31 CFR part
594 as follows:
PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS
0
1. The authority citation for part 594 is revised to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890, as
amended (28 U.S.C. 2461 note); Pub. L. 114-102, 129 Stat. 2205, as
amended (50 U.S.C. 1701 note); Pub. L. 115-44, 131 Stat 886
(codified in scattered sections of 22 U.S.C.); Pub. L. 115-348, 132
Stat. 5055 (50 U.S.C. 1701 note); E.O. 13224, 66 FR 49079, 3 CFR,
2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR 2002 Comp., p.
240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 161; E.O. 13372,
70 FR 8499, 3 CFR, 2006 Comp., p. 159; E.O. 13886, 84 FR 48041, 3
CFR, 2019 Comp., p. 356.
Subpart B--Prohibitions
Sec. 594.201 [Amended]
0
2. Amend Sec. 594.201 by:
0
a. Revise paragraphs (a)(1), (2), (3), and (4);
0
b. In Note 1 to paragraph (a):
0
i. Remove the reference ``paragraph (a)(4)'' and add in its place
``paragraph (a)(3)'';
0
ii. Remove ``his'' and add in its place ``their'';
0
iii. Remove ``he'' and add in its place ``the Secretary of the
Treasury'';
0
iv. Add ``,'' after ``Secretary of Homeland Security'' wherever it
appears.
The revisions read as follows:
Sec. 594.201 Prohibited transactions involving blocked property.
(a) * * *
(1) Persons listed in the Annex to Executive Order (E.O.) 13224 of
September 23, 2001, as amended;
(2) Foreign persons determined by the Secretary of State, in
consultation with the Secretary of the Treasury, the Attorney General,
and the Secretary of Homeland Security:
(i) To have committed or have attempted to commit, to pose a
significant risk of committing, or to have participated in training to
commit acts of terrorism that threaten the security of U.S. nationals
or the national security, foreign policy, or economy of the United
States; or
(ii) To be a leader of an entity:
(A) Described in paragraph (a)(1) of this section; or
(B) Whose property and interests in property are blocked pursuant
to a determination by the Secretary of State pursuant to E.O. 13224, as
amended;
(3) Persons determined by the Secretary of the Treasury, in
[[Page 39339]]
consultation with the Secretary of State, the Secretary of Homeland
Security, and the Attorney General:
(i) To be owned, controlled, or directed 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)(1) through (a)(4) of this section;
(ii) To own or control, directly or indirectly, any person whose
property and interests in property are blocked pursuant to paragraphs
(a)(1) through (a)(4) of this section;
(iii) To have materially assisted, sponsored, or provided
financial, material, or technological support for, or goods or services
to or in support of, an act of terrorism as defined in Sec. 594.311,
or any person whose property and interest in property are blocked
pursuant to paragraphs (a)(1) through (a)(4) of this section;
(iv) To have participated in training related to terrorism provided
by any person whose property and interests in property are blocked
pursuant to paragraphs (a)(1) through (a)(4) of this section;
(v) To be a leader or official of an entity whose property and
interests in property are blocked pursuant to:
(A) A determination by the Secretary of the Treasury pursuant to
paragraph (a)(3) of this section; or
(B) Paragraph (a)(4) of this section; or
(vi) To have attempted or conspired to engage in any of the
activities described in paragraphs (a)(3)(i) through (a)(3)(v) of this
section;
(4) Persons whose property and interests in property were blocked
pursuant to E.O. 12947, as amended, on or after January 23, 1995, and
remained blocked immediately prior to 12:01 a.m. eastern daylight time
on September 24, 2001;
* * * * *
Subpart C--Definitions
0
3. Revise Sec. 594.302 to read as follows:
Sec. 594.302 Effective Date
The term effective date refers to the effective date of the
applicable prohibitions and directives contained in this part as
follows:
(a)(1) With respect to a person whose property and interests in
property are blocked pursuant to Sec. 594.201(a)(1) and who appeared
on the Annex to E.O. 13224 as issued on September 23, 2001, 12:01 a.m.
eastern daylight time, September 24, 2001;
(2) With respect to a person whose property and interests in
property are blocked pursuant to Sec. 594.201(a)(1) and who was added
to the Annex to E.O. 13224 after September 23, 2001, the date the
person was added to the Annex to E.O. 13224, as amended;
(b) With respect to a person whose property or interests in
property are blocked pursuant to Sec. 594.201(a)(2) through (a)(11),
the earlier of the date of actual or constructive notice that such
person's property and interests in property are blocked pursuant to one
or more of these sections.
(c) 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. 594.316 [Removed and Reserved]
0
4. Remove and reserve Sec. 594.316.
Sec. 594.317 [Amended]
0
5. Amend Sec. 594.317 by removing ``Sec. 594.201(a)(4)(i) of''.
Sec. 594.802 [Amended]
0
6. In Sec. 594.802, add '' Presidential Memorandum of January 15,
2019: Delegation of Functions and Authorities Under the Hizballah
International Financing Prevention Act of 2015, as Amended, and the
Hizballah International Financing Prevention Amendments Act of 2018,
and Presidential Memorandum of May 24, 2019: Delegation of Functions
and Authorities Under the Sanctioning the Use of Civilians as
Defenseless Shields Act,'' after ``(Pub. L. 115-44),''.
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
Brian E. Nelson,
Under Secretary, Office of Terrorism and Financial Intelligence,
Department of the Treasury.
[FR Doc. 2022-13969 Filed 6-30-22; 8:45 am]
BILLING CODE 4810-AL-P
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</html>Indexed from Federal Register on July 1, 2022.
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