Rule2022-27466
Illicit Drug Trade 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
December 20, 2022
Effective
December 20, 2022
Issuing agencies
Treasury DepartmentForeign Assets Control Office
Abstract
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is adding regulations to implement a December 15, 2021 illicit drug trade-related Executive order. OFAC intends to supplement these regulations with a more comprehensive set of regulations, which may include additional interpretive guidance and definitions, general licenses, and other regulatory provisions.
Full Text
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<title>Federal Register, Volume 87 Issue 243 (Tuesday, December 20, 2022)</title>
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[Federal Register Volume 87, Number 243 (Tuesday, December 20, 2022)]
[Rules and Regulations]
[Pages 77711-77720]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27466]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 599
Illicit Drug Trade 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 adding regulations to implement a December 15, 2021
illicit drug trade-related Executive order. OFAC intends to supplement
these regulations with a more comprehensive set of regulations, which
may include additional interpretive guidance and definitions, general
licenses, and other regulatory provisions.
DATES: This rule is effective December 20, 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 December 15, 2021, the President, invoking the authority of,
inter alia, the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.) (IEEPA) and the Fentanyl Sanctions Act (21 U.S.C. 2301 et
seq.), issued Executive Order (E.O.) 14059, ``Imposing Sanctions on
Foreign Persons Involved in the Global Illicit Drug Trade'' (86 FR
71549, December 17, 2021).
In E.O. 14059, the President found that the trafficking into the
United States of illicit drugs, including fentanyl and other synthetic
opioids, is causing the deaths of tens of thousands of Americans
annually, as well as countless more non-fatal overdoses with their own
tragic human toll. Drug cartels, transnational criminal organizations,
and their facilitators are the primary sources of illicit drugs and
precursor chemicals that fuel the current opioid epidemic, as well as
drug-related violence that harms communities. The President found that
international drug trafficking--including the illicit production,
global sale, and widespread distribution of illegal drugs; the rise of
extremely potent drugs such as fentanyl and other synthetic opioids; as
well as the growing role of internet-based drug sales--constitutes an
unusual and extraordinary threat to the national security, foreign
policy, and economy of the United States, which requires the United
States to modernize and update its response to drug trafficking, and
declared a national emergency to deal with that threat.
OFAC is issuing the Illicit Drug Trade Sanctions Regulations, 31
CFR part 599 (the ``Regulations''), to implement E.O. 14059, pursuant
to authorities delegated to the Secretary of the Treasury in E.O.
14059. A copy of E.O. 14059 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 599 with a more comprehensive set
of regulations, which may include additional interpretive guidance and
definitions, general licenses, and other regulatory provisions. 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 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 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 599
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Foreign trade, Illicit drugs, Penalties, Prohibitions on
certain credit, Investments, Loans, Purchases, or other transactions,
Reporting and recordkeeping requirements, Sanctions, Services.
[[Page 77712]]
0
For the reasons set forth in the preamble, OFAC adds part 599 to 31 CFR
chapter V to read as follows:
PART 599--ILLICIT DRUG TRADE SANCTIONS REGULATIONS
Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
599.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
599.201 Prohibited transactions.
599.202 Effect of transfers violating the provisions of this part.
599.203 Holding of funds in interest-bearing accounts; investment
and reinvestment.
599.204 Expenses of maintaining blocked tangible property;
liquidation of blocked property.
599.205 Exempt transactions.
Subpart C--General Definitions
599.300 Applicability of definitions.
599.301 Blocked account; blocked property.
599.302 Effective date.
599.303 Entity.
599.304 Financial, material, or technological support.
599.305 Financial institution.
599.306 Foreign person.
599.307 [Reserved]
599.308 Interest.
599.309 Knowingly; knows.
599.310 Licenses; general and specific.
599.311 Means of production.
599.312 OFAC.
599.313 Person.
599.314 Proliferation of illicit drugs.
599.315 Property; property interest.
599.316 Transfer.
599.317 United States.
599.318 United States person; U.S. person.
599.319 U.S. financial institution.
Subpart D--Interpretations
599.401 [Reserved]
599.402 Effect of amendment.
599.403 Termination and acquisition of an interest in blocked
property.
599.404 Transactions ordinarily incident to a licensed transaction.
599.405 Setoffs prohibited.
599.406 Entities owned by one or more persons whose property and
interests in property are blocked.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
599.501 General and specific licensing procedures.
599.502 Effect of license or other authorization.
599.503 Exclusion from licenses.
599.504 Payments and transfers to blocked accounts in U.S. financial
institutions.
599.505 Entries in certain accounts for normal service charges.
599.506 Provision of certain legal services.
599.507 Payments for legal services from funds originating outside
the United States.
599.508 Emergency medical services.
599.509 Official business of the United States Government.
599.510 Official business of certain international organizations and
entities.
599.511 Certain transactions for maintenance, employment, and
related banking services for blocked individuals physically located
in the United States.
Subpart F--Reports
599.601 Records and reports.
Subpart G--Penalties and Findings of Violation
599.701 Penalties and Findings of Violation.
Subpart H--Procedures
599.801 Procedures.
599.802 Delegation of certain authorities of the Secretary of the
Treasury.
Subpart I--Paperwork Reduction Act
599.901 Paperwork Reduction Act notice.
Appendix A to Part 599--Executive Order 14059 of December 15, 2021
Authority: 3 U.S.C. 301; 21 U.S.C. 2301 et seq.; 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); E.O. 14059, 86 FR 71549,
December 15, 2021.
Subpart A--Relation of This Part to Other Laws and Regulations
Sec. 599.101 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. 599.101. 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 guidance and definitions, general licenses, and other
regulatory provisions.
Subpart B--Prohibitions
Sec. 599.201 Prohibited transactions.
All transactions prohibited pursuant to E.O. 14059 of December 15,
2021, or any further Executive orders issued pursuant to the national
emergency declared in E.O. 14059 are prohibited pursuant to this part.
Note 1 to Sec. 599.201. The names of persons designated or
identified as blocked pursuant to this section are published in the
Federal Register and incorporated into OFAC's Specially Designated
Nationals and Blocked Persons List (SDN List) using the following
identifier formulation: ``[ILLICIT-DRUGS-E.O.]-E.O.[E.O. number
pursuant to which the person's property and interests in property
are blocked]].'' The SDN List is accessible through the following
page on OFAC's website: <a href="http://www.treas.gov/sdn">www.treas.gov/sdn</a>. Additional information
pertaining to the SDN List can be found in appendix A to this
chapter. See Sec. 599.406 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. 599.201. The International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.), in Section 203 (50 U.S.C.
1702), authorizes the blocking of property and interests in property
of a person during the pendency of an investigation. The names of
persons whose property and interests in property are blocked pending
investigation pursuant to this section also are published in the
Federal Register and incorporated into the SDN List using the
following identifier formulation: ``[BPI-[ILLICIT-DRUGS-E.O.]-
E.O.[E.O. number pursuant to which the person's property and
interests in property are blocked pending investigation]].''
Note 3 to Sec. 599.201. The names of persons on whom non-
blocking sanctions implemented by the Department of the Treasury are
imposed pursuant to this section will be incorporated into a data
file containing OFAC's Consolidated Non-SDN data and are provided in
a human readable format on OFAC's Non-SDN Menu-Based Sanctions List
(NS-MBS List) on the following page on OFAC's website:
<a href="http://www.treas.gov/consolidated-sanctions-list-non-sdn-lists">www.treas.gov/consolidated-sanctions-list-non-sdn-lists</a>. These
listings are published in the Federal Register and include specific
information on the non-blocking sanctions imposed on such persons.
However, for any persons on whom blocking and non-blocking sanctions
are imposed pursuant to this section, such persons' names are
instead incorporated into OFAC's SDN List using the identifier
``[ILLICIT-DRUGS-E.O.-E.O.[E.O. number pursuant to which the
person's property and interests in property are blocked]].''
Note 4 to Sec. 599.201. Section 501.806 of this chapter
describes the procedures to be followed by persons seeking the
unblocking of funds that they believe were blocked due to mistaken
identity. Section 501.807 of this chapter describes the procedures
to be followed by persons seeking administrative
[[Page 77713]]
reconsideration of their status as persons whose property and
interests in property are blocked, or their inclusion on the NS-MBS
List for the imposition of non-blocking sanctions, pursuant to this
section.
Sec. 599.202 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.
599.201, 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 interest 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 interest in
property blocked pursuant to Sec. 599.201, 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 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 or interest in
property blocked pursuant to Sec. 599.201.
Sec. 599.203 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, blocked pursuant to Sec. 599.201 shall hold or place such
funds in a blocked interest-bearing account located in the United
States.
(b)(1) For the 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 the 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 the 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 blocked pursuant to Sec. 599.201
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 blocked pursuant to Sec.
599.201 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 blocked pursuant to Sec. 599.201 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. 599.201, nor may their holder
cooperate in or facilitate the pledging or other attempted use as
collateral of blocked funds or other assets.
Sec. 599.204 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. 599.201
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. 599.201 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.
[[Page 77714]]
Sec. 599.205 Exempt transactions.
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.
Subpart C--General Definitions
Sec. 599.300 Applicability of definitions.
The definitions in this subpart apply throughout the entire part.
Sec. 599.301 Blocked account; blocked property.
The terms blocked account and blocked property mean any account or
property subject to the prohibitions in Sec. 599.201 held in the name
of a person whose property and interests in property are blocked
pursuant to Sec. 599.201, or in which such person has an interest, and
with respect to which payments, transfers, 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. 599.301. See Sec. 599.406 concerning the
status of property and interests in property of an entity that is
directly or indirectly owned, whether individually or in the
aggregate, by one or more persons whose property and interests in
property are blocked pursuant to Sec. 599.201.
Sec. 599.302 Effective date.
(a) The term effective date refers to the effective date of the
applicable prohibitions and directives contained in this part, and with
respect to a person whose property and interests in property are
blocked pursuant to Sec. 599.201 or on whom other sanctions are
imposed, the earlier of the date of actual or constructive notice that
such person's property and interests in property are blocked or that
other sanctions are imposed on such person.
(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 or imposition of other sanctions is published
in the Federal Register.
Sec. 599.303 Entity.
The term entity means a partnership, association, trust, joint
venture, corporation, group, subgroup, or other organization.
Sec. 599.304 Financial, material, or technological support.
The term financial, material, or technological support 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 section 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. 599.305 Financial institution.
The term financial institution includes a depository institution
(as defined in section 3(c)(l) of the Federal Deposit Insurance Act (12
U.S.C. 1813(c)(l))), including a branch or agency of a foreign bank (as
defined in section 1(b)(7) of the International Banking Act of 1978 (12
U.S.C. 3101(7))); a credit union; a securities firm, including a broker
or dealer; an insurance company, including an agency or underwriter;
and any other company that provides financial services.
Sec. 599.306 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, provided such individual does not reside in the
United States) or any entity not organized under the laws of the United
States.
Sec. 599.307 [Reserved]
Sec. 599.308 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. 599.309 Knowingly; knows.
The term knowingly or knows with respect to conduct, a
circumstance, or a result, means that a person has actual knowledge, or
should have known, of the conduct, the circumstance, or the result.
Sec. 599.310 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: <a href="http://www.treas.gov/ofac">www.treas.gov/ofac</a>.
(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: <a href="http://www.treas.gov/ofac">www.treas.gov/ofac</a>.
Note 1 to Sec. 599.310. See Sec. 501.801 of this chapter on
licensing procedures.
Sec. 599.311 Means of production.
The term means of production includes any activities or
transactions involving any equipment, chemical, product, or material
that may be used, directly or indirectly, in the manufacture of illicit
drugs or precursor chemicals.
Sec. 599.312 OFAC.
The term OFAC means the Department of the Treasury's Office of
Foreign Assets Control.
Sec. 599.313 Person.
The term person means an individual or entity.
Sec. 599.314 Proliferation of illicit drugs.
The term proliferation of illicit drugs means any illicit activity
to produce, manufacture, distribute, sell, or knowingly finance or
transport: narcotic drugs, controlled substances, listed chemicals, or
controlled substance analogues, as defined in section 102 of the
Controlled Substances Act (21 U.S.C. 802).
Sec. 599.315 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,
[[Page 77715]]
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. 599.316 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 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. 599.317 United States.
The term United States means the United States, its territories and
possessions, and all areas under the jurisdiction or authority thereof.
Sec. 599.318 United States person; U.S. person.
The term United States person or U.S. person means any United
States citizen, lawful permanent resident, 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. 599.319 United States financial institution.
The term United States 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 credits, or purchasing or selling foreign exchange,
securities, futures or options, or procuring purchasers and sellers
thereof, as principal or agent. It includes depository institutions,
banks, savings banks, money services businesses, operators of credit
card systems, trust companies, insurance 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,
dealers in precious metals, stones, or jewels, 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. 599.401 [Reserved]
Sec. 599.402 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. 599.403 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. 599.201, such property shall no longer be
deemed to be property blocked pursuant to Sec. 599.201, unless there
exists in the property another interest that is blocked pursuant to
Sec. 599.201, 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. 599.201, such property shall be deemed to be property in which
such person has an interest and therefore blocked.
Sec. 599.404 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. 599.201; 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. 599.405 Setoffs prohibited.
A setoff against blocked property (including a blocked account),
whether by a U.S. financial institution or other U.S. person, is a
prohibited transfer under Sec. 599.201 if effected after the effective
date.
Sec. 599.406 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. 599.201 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.
599.201, 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. 599.501 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 Counter Narcotics Trafficking sanctions
page on OFAC's website: <a href="http://www.treas.gov/ofac">www.treas.gov/ofac</a>.
[[Page 77716]]
Sec. 599.502 Effect of license or other authorization.
(a) No license or other authorization contained in this part, or
otherwise issued by OFAC, authorizes or validates any transaction
effected prior to the issuance of such license or other authorization,
unless specifically provided in such license or authorization.
(b) No regulation, ruling, instruction, or license authorizes any
transaction prohibited under this part unless the regulation, ruling,
instruction, or license is issued by OFAC and specifically refers to
this part. No regulation, ruling, instruction, or license referring to
this part shall be deemed to authorize any transaction prohibited by
any other part of this chapter unless the regulation, ruling,
instruction, or license specifically refers to such part.
(c) Any regulation, ruling, instruction, or license authorizing any
transaction prohibited under this part has the effect of removing a
prohibition contained in this part from the transaction, but only to
the extent specifically stated by its terms. Unless the regulation,
ruling, instruction, or license otherwise specifies, such an
authorization does not create any right, duty, obligation, claim, or
interest in, or with respect to, any property that would not otherwise
exist under ordinary principles of law.
(d) Nothing contained in this part shall be construed to supersede
the requirements established under any other provision of law or to
relieve a person from any requirement to obtain a license or other
authorization from another department or agency of the U.S. Government
in compliance with applicable laws and regulations subject to the
jurisdiction of that department or agency. For example, exports of
goods, services, or technical data that are not prohibited by this part
or that do not require a license by OFAC nevertheless may require
authorization by the U.S. Department of Commerce, the U.S. Department
of State, or other agencies of the U.S. Government.
(e) No license or other authorization contained in or issued
pursuant to this part authorizes transfers of or payments from blocked
property or debits to blocked accounts unless the license or other
authorization explicitly authorizes the transfer of or payment from
blocked property or the debit to a blocked account.
(f) Any payment relating to a transaction authorized in or pursuant
to this part that is routed through the U.S. financial system should
reference the relevant OFAC general or specific license authorizing the
payment to avoid the blocking or rejection of the transfer.
Sec. 599.503 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. 599.504 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.
599.201 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. 599.504. See Sec. 501.603 of this chapter for
mandatory reporting requirements regarding financial transfers. See
also Sec. 599.203 concerning the obligation to hold blocked funds
in interest-bearing accounts.
Sec. 599.505 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. 599.506 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. 599.201 is authorized, provided that any receipt of
payment of professional fees and reimbursement of incurred expenses
must be authorized pursuant to Sec. 599.507, 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. 599.201, 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. 599.404.
(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
[[Page 77717]]
purporting to transfer or otherwise alter or affect property or
interests in property blocked pursuant to Sec. 599.201 is prohibited
unless licensed pursuant to this part.
Note 1 to Sec. 599.506. 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.
Sec. 599.507 Payments for legal services from funds originating
outside the United States.
(a) Professional fees and incurred expenses. (1) Receipt of payment
of professional fees and reimbursement of incurred expenses for the
provision of legal services authorized pursuant to Sec. 599.506(a) to
or on behalf of any person whose property and interests in property are
blocked pursuant to Sec. 599.201 is authorized from funds originating
outside the United States, provided that the funds do not originate
from:
(i) A source within the United States;
(ii) Any source, wherever located, within the possession or control
of a U.S. person; or
(iii) Any individual or entity, other than the person on whose
behalf the legal services authorized pursuant to Sec. 599.506(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.
(2) Nothing in paragraph (a) of this section authorizes payments
for legal services using funds in which any other person whose property
and interests in property are blocked pursuant to Sec. 599.201, any
other part of this chapter, or any Executive order or statute 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): <a href="/cdn-cgi/l/email-protection#0b444d4a48596e7b64797f4b7f796e6a787e7972256c647d"><span class="__cf_email__" data-cfemail="226d6463617047524d505662565047435157505b0c454d54">[email protected]</span></a>; 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. 599.508 Emergency medical services.
The provision and receipt of nonscheduled emergency medical
services that are prohibited by this part are authorized.
Sec. 599.509 Official business of the United States Government.
All transactions prohibited by this part that are for the conduct
of the official business of the United States Government by employees,
grantees, or contractors thereof are authorized.
Sec. 599.510 Official business of certain international organizations
and entities.
(a) All transactions prohibited by this part that are for the
conduct of the official business of the following entities by
employees, grantees, or contractors thereof are authorized:
(1) The United Nations, including its Programmes, Funds, and Other
Entities and Bodies, as well as its Specialized Agencies and Related
Organizations;
(2) The International Centre for Settlement of Investment Disputes
(ICSID) and the Multilateral Investment Guarantee Agency (MIGA);
(3) The African Development Bank Group, the Asian Development Bank,
the European Bank for Reconstruction and Development, and the Inter-
American Development Bank Group (IDB Group), including any fund entity
administered or established by any of the foregoing; and
(4) The International Committee of the Red Cross and the
International Federation of Red Cross and Red Crescent Societies.
Sec. 599.511 Certain transactions for maintenance, employment, and
related banking services for blocked individuals physically located in
the United States.
(a) Individuals whose property and interests in property are
blocked pursuant to Sec. 599.201 who are in U.S. custody or
incarcerated in jails, prisons, or similar facilities in the United
States (``covered individuals''), are authorized to engage in the
following transactions within the United States:
(1) Purchasing, making payment for, and receiving goods and
services for their maintenance and the maintenance of their spouse or
persons who would ordinarily share a common dwelling as a family with
them, located in the United States, including food, clothing, housing,
medical care, education, transportation, insurance, and utilities;
(2) Obtaining or continuing employment and engaging in all
transactions ordinarily incident to such employment, including receipt
of salary and benefits;
(3) Establishing accounts with a U.S. financial institution, or a
commissary-type account with a prison, jail, or other similar facility,
located in the United States, for use in connection with the
transactions authorized in paragraphs (a)(1) and (a)(2) of this
section; and
(4) Receiving and making funds transfers in furtherance of the
authorized transactions set forth in paragraphs (a)(1) through (3) of
this section from unblocked funds originating within or outside the
United States, provided that any funds received may not originate from
any individual or entity whose property or interests in property are
blocked pursuant to any part of this chapter or any Executive order or
statute, other than the covered individual or his or her spouse or
persons who would ordinarily share a common dwelling as a family with
the covered individual.
(b) Any financial institution that has established any account
pursuant to paragraph (a)(3) of this section, excluding commissary-type
accounts with prisons, jails, or other similar facilities, must provide
the name and address of the financial institution, the name of the
account holder, and the account number to OFAC within 10 business days
of the establishment of the account.
(c) This general license does not authorize any funds transfers to
any location outside the United States.
Note 1 to paragraph (c). A covered individual has an interest
in any funds remaining in a commissary-type account with a prison,
jail, or other similar facility established pursuant to paragraph
(a)(3) of this section after the covered individual is released from
custody or incarceration.
Note 2 to paragraph (c). In the case of individuals who are in
custody or incarcerated, funds transfers must be authorized by and
consistent with the conditions, protocols, and other requirements
established by the jail, prison, or other facility.
Note 3 to Sec. 599.511. The authorization in this section only
applies to laws and regulations administered by OFAC and
[[Page 77718]]
should not be interpreted to excuse compliance with other applicable
laws or regulations, including the immigration laws of the United
States.
Subpart F--Reports
Sec. 599.601 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. 599.701 Penalties and Findings of Violation.
(a) The penalties available under section 206 of the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (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. 599.801 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. 599.802 Delegation of certain authorities of the Secretary of
the Treasury.
Any action that the Secretary of the Treasury is authorized to take
pursuant to E.O. 14059 of December 15, 2021, and any further Executive
orders issued pursuant 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. 599.901 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 599--Executive Order 14059 of December 15, 2021
Executive Order 14059 of December 15, 2021
Imposing Sanctions on Foreign Persons Involved in the Global Illicit
Drug Trade
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 Fentanyl Sanctions Act (21 U.S.C. 2301 et seq.) (FSA),
sections 212(f) and 215(a) of the Immigration and Nationality Act of
1952 (8 U.S.C. 1182(f) and 1185(a)), and section 301 of title 3,
United States Code,
I, JOSEPH R. BIDEN JR., President of the United States of
America, find that the trafficking into the United States of illicit
drugs, including fentanyl and other synthetic opioids, is causing
the deaths of tens of thousands of Americans annually, as well as
countless more non-fatal overdoses with their own tragic human toll.
Drug cartels, transnational criminal organizations, and their
facilitators are the primary sources of illicit drugs and precursor
chemicals that fuel the current opioid epidemic, as well as drug-
related violence that harms our communities. I find that
international drug trafficking--including the illicit production,
global sale, and widespread distribution of illegal drugs; the rise
of extremely potent drugs such as fentanyl and other synthetic
opioids; as well as the growing role of internet-based drug sales--
constitutes an unusual and extraordinary threat to the national
security, foreign policy, and economy of the United States. This
serious threat requires our country to modernize and update our
response to drug trafficking. I hereby declare a national emergency
to deal with that threat.
Accordingly, I hereby order:
Section 1. (a) The Secretary of the Treasury is authorized to
impose any of the sanctions described in section 2 of this order on
any foreign person determined by the Secretary of the Treasury, in
consultation with the Secretary of State, the Attorney General, and
the Secretary of Homeland Security:
(i) to have engaged in, or attempted to engage in, activities or
transactions that have materially contributed to, or pose a
significant risk of materially contributing to, the international
proliferation of illicit drugs or their means of production; or
(ii) to have knowingly received any property or interest in
property that the foreign person knows:
(A) constitutes or is derived from proceeds of activities or
transactions that have materially contributed to, or pose a
significant risk of materially contributing to, the international
proliferation of illicit drugs or their means of production; or
(B) was used or intended to be used to commit or to facilitate
activities or transactions that have materially contributed to, or
pose a significant risk of materially contributing to, the
international proliferation of illicit drugs or their means of
production.
(b) The Secretary of the Treasury is authorized to impose any of
the sanctions described in section 2 of this order on any foreign
person determined by the Secretary of the Treasury, in consultation
with the Secretary of State, the Attorney General, and the Secretary
of Homeland Security:
(i) to have provided, or attempted to provide, financial,
material, or technological support for, or goods or services in
support of:
(A) any activity or transaction described in subsection (a)(i)
of this section; or
(B) any sanctioned person;
(ii) to be or have been a leader or official of any sanctioned
person or of any foreign person that has engaged in any activity or
transaction described in subsection (a)(i) of this section; or
(iii) to be owned, controlled, or directed by, or to have acted
or purported to act for or on behalf of, directly or indirectly, any
sanctioned person.
(c) The Secretary of the Treasury is authorized to impose any of
the sanctions described in section 2 of this order consistent with
the requirements of section 7212 of the FSA (21 U.S.C. 2312) on any
foreign person determined by the President, or by the Secretary of
the Treasury pursuant to authority delegated by the President and in
accordance with the terms of such delegation, to be subject to
sanctions pursuant to section 7212 of the FSA.
Sec. 2. When the Secretary of the Treasury, in accordance with
the terms of section 1 of this order, has determined that a foreign
person meets any of the criteria in section 1(a)-(c) of this order,
the Secretary of the Treasury, in consultation with the Secretary of
State, the Attorney General, and the Secretary of Homeland Security,
is authorized to select one or more of the
[[Page 77719]]
sanctions set forth in subsections (a)(i)-(vi) of this section to
impose on that foreign person.
(a) The Secretary of the Treasury shall take the following
actions as necessary to implement the selected sanctions:
(i) block all property and interests in property of the
sanctioned person 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, and provide that
such property and interests in property may not be transferred,
paid, exported, withdrawn, or otherwise dealt in;
(ii) prohibit any transfers of credit or payments between
financial institutions, or by, through, or to any financial
institution, to the extent that such transfers or payments are
subject to the jurisdiction of the United States and involve any
interest of the sanctioned person;
(iii) prohibit any United States financial institution from
making loans or providing credit to the sanctioned person;
(iv) prohibit any transactions in foreign exchange that are
subject to the jurisdiction of the United States and in which the
sanctioned person has any interest;
(v) prohibit any United States person from investing in or
purchasing significant amounts of equity or debt instruments of the
sanctioned person; or
(vi) impose on the principal executive officer or officers of
the sanctioned person, or on persons performing similar functions
and with similar authorities as such officer or officers, any of the
sanctions described in subsections (a)(i)-(v) of this section that
are applicable.
(b) The heads of the relevant executive departments and
agencies, in consultation with the Secretary of the Treasury, shall
take the following actions as necessary and appropriate to implement
the sanctions selected by the Secretary of the Treasury:
(i) with respect to a sanctioned person that is a financial
institution:
(A) the Board of Governors of the Federal Reserve System and the
Federal Reserve Bank of New York shall not designate, and shall
rescind any prior designation of, the sanctioned person as a primary
dealer in United States Government debt instruments; and
(B) the sanctioned person shall not serve as an agent of the
United States Government or serve as a repository for United States
Government funds;
(ii) actions required to ensure that executive departments and
agencies shall not procure, or enter into a contract for the
procurement of, any goods or services from the sanctioned person;
(iii) actions required to suspend entry into the United States
of any noncitizen whom the Secretary of the Treasury, in
consultation with the Secretary of State, the Attorney General, and
the Secretary of Homeland Security, determines is a leader,
official, senior executive officer, or director of, or a shareholder
with a controlling interest in, the sanctioned person; or
(iv) actions required to impose on the principal executive
officer or officers of the sanctioned person, or on persons
performing similar functions and with similar authorities as such
officer or officers, any of the sanctions described in subsections
(b)(i)-(iii) of this section that are applicable.
Sec. 3. The prohibitions in section 2 of this order 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 prior to the date of this order.
Sec. 4. (a) The unrestricted immigrant and nonimmigrant entry
into the United States of noncitizens determined to meet any of the
criteria in section l(a)-(c) of this order, and for whom the
sanctions described in section 2(a)(i) or 2(b)(iii) of this order
have been selected, 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, except when the
Secretary of State or the Secretary of Homeland Security, as
appropriate, determines that the person's entry would not be
contrary to the interests of the United States, including when the
Secretary of State or the Secretary of Homeland Security, as
appropriate, so determines, based on a recommendation of the
Attorney General, that the person's entry would further important
United States law enforcement objectives.
(b) The Secretary of State shall implement this order as it
applies to visas pursuant to such procedures as the Secretary of
State, in consultation with the Secretary of Homeland Security, may
establish.
(c) The Secretary of Homeland Security shall implement this
order as it applies to the entry of noncitizens pursuant to such
procedures as the Secretary of Homeland Security, in consultation
with the Secretary of State, may establish.
(d) Such persons shall be treated by this section in the same
manner 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. 5. The prohibitions in section 2(a)(i) of this order
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. 6. (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. 7. 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 2(a) of this order.
Sec. 8. For the purpose of this order:
(a) the term ``entity'' means a partnership, association, trust,
joint venture, corporation, group, subgroup, or other organization;
(b) the term ``financial institution'' includes a depository
institution (as defined in section 3(c)(l) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(c)(l))), including a branch or agency
of a foreign bank (as defined in section 1(b)(7) of the
International Banking Act of 1978 (12 U.S.C. 3101(7))); a credit
union; a securities firm, including a broker or dealer; an insurance
company, including an agency or underwriter; and any other company
that provides financial services;
(c) 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, provided such individual does not
reside in the United States) or any entity not organized under the
laws of the United States;
(d) the term ``knowingly'' or ``knows'' with respect to conduct,
a circumstance, or a result, means that a person has actual
knowledge, or should have known, of the conduct, the circumstance,
or the result;
(e) the phrase ``means of production'' includes any activities
or transactions involving any equipment, chemical, product, or
material that may be used, directly or indirectly, in the
manufacture of illicit drugs or precursor chemicals;
(f) the term ``noncitizen'' means any person who is not a
citizen or noncitizen national of the United States;
(g) the term ``person'' means an individual or entity;
(h) the term ``proliferation of illicit drugs'' means any
illicit activity to produce, manufacture, distribute, sell, or
knowingly finance or transport: narcotic drugs, controlled
substances, listed chemicals, or controlled substance analogues, as
defined in section 102 of the Controlled Substances Act (21 U.S.C.
802);
(i) the term ``sanctioned person'' means any person sanctioned
pursuant to this order;
(j) the term ``United States financial institution'' means a
financial institution (including its foreign branches) organized
under the laws of the United States or of any jurisdiction within
the United States or located in the United States; and
(k) the term ``United States person'' means any United States
citizen, lawful permanent resident, 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. 9. 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 those 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. 10. The Secretary of the Treasury, in consultation with the
Secretary of State, the
[[Page 77720]]
Attorney General, and the Secretary of Homeland Security, is
authorized to take such actions, including promulgating rules and
regulations, and to employ all powers granted to the President by
the FSA or IEEPA as may be necessary to implement this order. The
Secretary of the Treasury may, consistent with applicable law,
redelegate any of these functions within the Department of the
Treasury. All executive departments and agencies shall take all
appropriate measures within their authority to implement the
provisions of this order.
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. (a) Nothing in this order shall be construed to impair
or otherwise affect:
(i) the authority granted by law to an executive department or
agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management
and Budget relating to budgetary, administrative, or legislative
proposals.
(b) This order shall be implemented consistent with applicable
law and subject to the availability of appropriations.
(c) 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.
JOSEPH R. BIDEN JR.
THE WHITE HOUSE,
December 15, 2021.
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-27466 Filed 12-19-22; 8:45 am]
BILLING CODE 4810-AL-P
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</html>Indexed from Federal Register on December 20, 2022.
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