Rule2024-20674
Reporting, Procedures and Penalties
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
September 13, 2024
Effective
March 12, 2025
Issuing agencies
Treasury DepartmentForeign Assets Control Office
Abstract
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing this interim final rule to amend the Reporting, Procedures and Penalties Regulations (the "Regulations"), extending recordkeeping requirements for certain transactions from five to 10 years, consistent with the statute of limitations for violations of certain sanctions administered by the Office of Foreign Assets Control (OFAC).
Full Text
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<title>Federal Register, Volume 89 Issue 178 (Friday, September 13, 2024)</title>
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[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Rules and Regulations]
[Pages 74832-74834]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-20674]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 501
Reporting, Procedures and Penalties
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Interim final rule; request for comments.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is issuing this interim final rule to amend the
Reporting, Procedures and Penalties Regulations (the ``Regulations''),
extending recordkeeping requirements for certain transactions from five
to 10 years, consistent with the statute of limitations
[[Page 74833]]
for violations of certain sanctions administered by the Office of
Foreign Assets Control (OFAC).
DATES:
Effective date: This interim final rule is effective March 12,
2025.
Comments due date: Written comments may be submitted on or before
October 15, 2024.
ADDRESSES: You may submit comments via the following methods,
electronic is preferred:
Federal eRulemaking Portal: <a href="http://www.regulations.gov">www.regulations.gov</a>. Follow the
instructions on the website for submitting comments. Refer to Docket
Number OFAC-2024-0004.
Mail: Office of Foreign Assets Control, U.S. Department of the
Treasury, Treasury Annex/Freedman's Bank Building, 1500 Pennsylvania
Avenue NW, Washington, DC 20220. Refer to Docket Number OFAC-2024-0004.
Instructions: All submissions received must include the agency name
and the Federal Register Doc. number that appears at the end of this
document. All comments, including attachments and other supporting
materials, will become part of the public record and subject to public
disclosure. Sensitive personal information, such as account numbers or
Social Security numbers, should not be included. Comments generally
will not be edited to remove any identifying or contact information.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Licensing, 202-
622-2480; Assistant Director for Regulatory Affairs, 202-622-4855;
Assistant Director for Compliance, 202-622-2490 or <a href="https://ofac.treasury.gov/contact-ofac">https://ofac.treasury.gov/contact-ofac</a>.
SUPPLEMENTARY INFORMATION:
Background
On April 24, 2024, the President signed into law the 21st Century
Peace through Strength Act, Public Law 118-50, div. D (the ``Act'').
Section 3111 of the Act extended from five years to 10 years the
statute of limitations for civil and criminal violations of the
International Emergency Economic Powers Act, 50 U.S.C. 1701 et seq.
(IEEPA), and the Trading with the Enemy Act, 50 U.S.C. 4301 et seq.
(TWEA). Prior to the Act's enactment, civil enforcement actions brought
by OFAC under IEEPA or TWEA were subject to the five-year statute of
limitations set forth in 28 U.S.C. 2462. The new 10-year statute of
limitations--codified at 50 U.S.C. 1705(d) and 4315(d)--became
effective upon the President's signature of the Act on April 24, 2024.
This new 10-year statute of limitations applies to any violation that
was not time-barred at the time of its enactment. Consequently, OFAC
may now commence an enforcement action for civil violations of IEEPA-
or TWEA-based sanctions prohibitions within 10 years of the latest date
of the violation if such date was after April 24, 2019. As set forth in
the Act, the commencement of a civil enforcement action includes the
issuance of a pre-penalty notice or a finding of violation.
To match the new statute of limitations period, OFAC is publishing
this interim final rule extending from five years to 10 years the
recordkeeping requirements codified at 31 CFR 501.601, paragraph IV.B
of appendix A to part 501, and 515.572. OFAC is soliciting public
comments for 30 days on this interim final rule.
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: <a href="https://ofac.treasury.gov">https://ofac.treasury.gov</a>.
Public Participation
Because the amendment of the Regulations is a rule of agency
procedure and involves a foreign affairs function, the provisions of
Executive Order 12866 of September 30, 1993, ``Regulatory Planning and
Review'' (58 FR 51735, October 4, 1993), as amended, 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
Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3507),
the collections of information related to 31 CFR 501.601, paragraph
IV.B of appendix A to part 501, and 515.572 have been previously
approved by the Office of Management and Budget (OMB) under control
number 1505-0164. This final rule modifies the requirements for
recordkeeping under these sections by increasing the period for
recordkeeping to 10 years from five years to align with a statutory
amendment. This modification to this collection of information, as well
as an unrelated consolidation of certain OFAC information collections,
will be submitted to OMB for review under control number 1505-0164.
Written comments and recommendations for the modified collection can be
submitted by visiting <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>. Find
this document by selecting ``Currently Under Review--Open for Public
Comments'' or by using the search function. Comments are welcome and
must be received by November 13, 2024.
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. The likely filers and
record-keepers affected by these collections of information contained
in 31 CFR part 501 are financial institutions, business organizations,
nonprofit organizations, individuals, households, non-governmental
organizations, and legal representatives.
The burden of the recordkeeping requirement imposed by this rule is
minimal because the records required to be maintained are likely
maintained under standard business practice. The recent increase in the
recordkeeping period to 10 years from five years could impose a
temporary incremental burden on recordkeepers while they update their
recordkeeping practices and adjust storage requirements to maintain
records for a longer period of time. Accordingly, the total burden for
this collection is estimated to be:
Estimated Number of Respondents: 2,505,086.
Frequency of Response: When requested by OFAC.
Estimated Total Number of Annual Responses: 2,505,086.
Estimated Time per Response: No additional time to retain records
for additional time.
Comments are invited on: (a) Whether the collection of information
is necessary for the proper performance of the functions of the agency,
including whether the information has practical utility; (b) the
accuracy of the agency's estimate of the burden of the collection of
information; (c) ways to enhance the quality, utility, and clarity of
the information to be collected; (d) ways to minimize the burden of the
collection of information on respondents, including through the use of
automated collection techniques or other forms of information
technology; and (e) estimates of capital or start-up costs and costs of
operation, maintenance, and purchase of services required to provide
information.
List of Subjects in 31 CFR Part 501
Administrative practice and procedure, Banks, Banking, Exports,
Foreign trade, Licensing and registration, Penalties, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, OFAC amends 31 CFR parts
501 and 515 as follows:
[[Page 74834]]
PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS
0
1. The authority citation for part 501 continues 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 et seq., 4301-
4341; Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461
note).
Subpart C--Reports
0
2. Revise and republish Sec. 501.601 to read as follows:
Sec. 501.601 Records and recordkeeping requirements.
Except as otherwise provided, every person engaging in any
transaction subject to the provisions of this chapter shall keep a full
and accurate record of each such transaction engaged in, regardless of
whether such transaction is effected pursuant to license or otherwise,
and such record shall be available for examination for at least 10
years after the date of such transaction. Except as otherwise provided,
every person holding property blocked pursuant to the provisions of
this chapter or funds transfers retained pursuant to Sec. 596.504(b)
of this chapter shall keep a full and accurate record of such property,
and such record shall be available for examination for the period of
time that such property is blocked and for at least 10 years after the
date such property is unblocked.
0
3. Revise paragraph IV.B of appendix A to part 501 to read as follows:
Appendix A to Part 501--Economic Sanctions Enforcement Guidelines
* * * * *
IV. * * *
B. The late filing of a required report, whether set forth in
regulations or in a specific license, may result in a civil monetary
penalty in an amount up to $3,550, if filed within the first 30 days
after the report is due, and a penalty in an amount up to $7,104 if
filed more than 30 days after the report is due. If the report
relates to blocked assets, the penalty may include an additional
$1,422 for every 30 days that the report is overdue, up to 10 years.
* * * * *
PART 515--CUBAN ASSETS CONTROL REGULATIONS
0
4. The authority citation for part 515 continues to read as follows:
Authority: 22 U.S.C. 2370(a), 6001-6010, 7201-7211; 31 U.S.C.
321(b); 50 U.S.C. 4301 et seq.; Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); 22 U.S.C. 6021-6091; Pub. L. 105-277, 112 Stat.
2681; Pub. L. 111-8, 123 Stat. 524; Pub. L. 111-117, 123 Stat. 3034;
E.O. 9989, 13 FR 4891, 3 CFR, 1943-1948 Comp., p. 748; Proc. 3447,
27 FR 1085, 3 CFR, 1959-1963 Comp., p. 157; E.O. 12854, 58 FR 36587,
3 CFR, 1993 Comp., p. 614.
0
5. Revise and republish paragraph (b)(1) of Sec. 515.572 as follows:
Sec. 515.572 Provision of travel, carrier, other transportation-
related, and remittance forwarding services.
* * * * *
(b) * * *
(1) Persons subject to U.S. jurisdiction providing services
authorized pursuant to paragraphs (a)(1) through (4) of this section
must retain for at least 10 years from the date of the transaction a
certification from each customer indicating the section of this part
that authorizes the person to travel or send remittances to Cuba. In
the case of a customer traveling under a specific license, the specific
license number or a copy of the license must be maintained on file with
the person subject to U.S. jurisdiction providing services authorized
pursuant to this section.
* * * * *
Lisa M. Palluconi,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2024-20674 Filed 9-11-24; 8:45 am]
BILLING CODE 4810-AL-P
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</html>Indexed from Federal Register on September 13, 2024.
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