Sanctions Program,Description,Important Advisories,Legal Framework,General Licenses,Interpretive Guidance,FAQs,Source PDF Text - Virtual Currency Guidance,Source PDF Text - Ransomware Advisory,Source PDF Text - DPRK Cyber Threat Advisory,Source PDF Text - Sanctions Brochures,Source PDF Text - Interpretive Guidance,Source PDF Text - Executive Order 13694,Source PDF Text - Executive Order 14067,Source PDF Text - General License 1C,Source PDF Text - Cyber Executive Order,Source PDF Text - Executive Order 2025,Source PDF Text - Federal Register 80 FR 81752,Source PDF Text - Federal Register 87 FR 54373,Source PDF Text - Federal Register 87 FR 78484,Source PDF Text - Federal Register 88 FR 34443,Source PDF Text - International Emergency Economic Powers Act (IEEPA),Source PDF Text - Legal Fees Guide,Source PDF Text - Licensing Guidance,Source PDF Text - National Emergencies Act (NEA)
Cyber-Related Sanctions,"This sanctions program targets individuals, entities, and activities involved in malicious cyber-enabled activities that pose threats to U.S. national security, foreign policy, and economic stability.","{'Sanctions Compliance Guidance for Virtual Currency Industry': 'October 15, 2021', 'Advisory on Potential Sanctions Risks for Ransomware Payments': 'September 21, 2021', 'North Korea Cyber Threat Advisory': 'April 15, 2020'}","{'Executive Orders': ['14067 - Ensuring Responsible Development of Digital Assets (March 09, 2022)', '13757 - Addressing Significant Malicious Cyber-Enabled Activities (December 28, 2016)', '13694 - Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities (April 01, 2015)'], 'Statutes': [""Countering America's Adversaries Through Sanctions Act"", 'International Emergency Economic Powers Act (IEEPA), 50 U.S.C. §§ 1701-1706', 'National Emergencies Act (NEA), 50 U.S.C. §§ 1601-1651'], 'Regulations': ['31 CFR Part 578 - Cyber-Related Sanctions Regulations']}","{'Cyber General License 1C': 'Authorizing Certain Transactions with the Federal Security Service (April 27, 2023)'}","{'Guidance on U.S. Sanctions Laws': 'January 12, 2017'}","{'FAQ 444': 'How will Treasury decide whom to sanction under this authority? Treasury’s Office of Foreign Assets Control (OFAC) works in coordination with other U.S. government agencies to identify individuals and entities whose conduct meets the criteria set forth in E.O. 13694, as amended.', 'FAQ 445': 'What are my compliance obligations with respect to E.O. 13694? U.S. persons must ensure they are not engaging in unauthorized transactions with persons named on OFAC’s SDN List pursuant to E.O. 13694, as amended.', 'FAQ 447': ""What will significant malicious 'cyber-enabled' activities mean under E.O. 13694? Activities include unauthorized access, bypassing firewalls, or compromising security of hardware or software."", 'FAQ 448': 'I conduct cyber-related activities for legitimate research or defense. Could I be sanctioned? No, the sanctions are not designed to interfere with legitimate research, cybersecurity, or academic activities.', 'FAQ 449': 'I administer a network for my employer and deny access to certain services. Could I be sanctioned? No, these sanctions do not interfere with legitimate network defense or maintenance activities.', 'FAQ 450': 'Will Treasury impose sanctions on persons whose personal computers were used in cyberattacks without their knowledge? No, the sanctions target malicious actors, not victims of cyberattacks.', 'FAQ 451': 'How do financial sanctions relate to existing legal authorities in this context? Financial sanctions complement diplomatic outreach and law enforcement to combat cyber threats.', 'FAQ 452': 'Are these sanctions consistent with international obligations? Yes, all sanctions administered by Treasury comply with domestic law and international obligations.', 'FAQ 489': ""What does 'misappropriation of information' mean in E.O. 13694? Misappropriation involves taking or obtaining information without consent for election interference."", 'FAQ 501': 'What does General License 1C (GL 1C) authorize? GL 1C allows transactions with the Federal Security Service for IT-related importation, distribution, and compliance.'}","CONTENTS Introduction ...........................................................................1 Sanctions Compliance Best Practices for the Virtual Currency Industry ........................................................10 What Is OFAC ........................................................................2 Management Commitment ................................................11 What Are OFAC Sanctions ......................................................3 Risk Assessment .................................................................12 The SDN List ......................................................................4 C ase Study: How Do You Block Virtual Currency ...................................5 Diagnosing Risky Relationships .....................................12 Case Study: Internal Controls.................................................................13 OFAC Sanctions Involving Virtual Currency ................................................................5 Case Study: Double-Duty Data .........................................................13 Who Must Comply with OFAC Sanctions ................................6 Sanctions Screening .....................................................16 Strict Liability Regulations ..................................................6 Remediating the Root Causes of Violations ...................17 OFAC Requirements and Procedures ......................................7 Risk Indicators ..............................................................17 Reporting Requirements ....................................................7 Testing and Auditing ..........................................................18 Recordkeeping Requirements ............................................8 Training .............................................................................19 License Procedures ............................................................8 OFAC Resources ......................................................................20 Consequences of Noncompliance ..........................................9 FAQs on Virtual Currency Topics ..........................................20 Enforcement Procedures....................................................9 Contact Information ............................................................21 Enforcement Guidelines ................................................9 Resource Sites ....................................................................22 Enforcement Actions ......................................................9 Voluntary Self-Disclosure ...............................................9 INTRODUCTION Virtual currencies are beginning to play an increasingly prominent role in the global economy. The growing prevalence of virtual currency as a payment method likewise brings greater exposure to sanctions riskslike the risk that a sanctioned person or a person in a jurisdiction subject to sanctions might be involved in a virtual currency transaction. Accordingly, the virtual currency industry, including technology companies, exchangers, administrators, miners, wallet providers, and users, plays an increasingly critical role in preventing sanctioned persons from exploiting virtual currencies to evade sanctions and undermine U.S. foreign policy and national security interests. The U.S. Department of the Treasurys Office of Foreign Assets Control (OFAC) is issuing this guidance to assist the virtual currency industry in mitigating these risks. OFAC sanctions compliance obligations apply equally to transactions involving virtual currencies and those involving traditional fiat currencies. Members of the virtual currency industry are responsible for ensuring that they do not engage, directly or indirectly, in transactions prohibited by OFAC sanctions, such as dealings with blocked persons or property, or engaging in prohibited trade- or investment-related transactions. This guidance will assist those in the virtual currency industry in: Evaluating sanctions-related risks in their lines of business Building a risk-based sanctions compliance program Protecting their business from sanctions violations and intentional misuse of virtual currencies by malicious actors Understanding OFACs recordkeeping, reporting, licensing, and enforcement processes OFAC is committed to engaging with the virtual currency industry to promote understanding of, and compliance with, sanctions requirements and due diligence best practices. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 1 What is OFAC The Office of Foreign Assets Control (OFAC) is the office within the U.S. Department of the Treasury that is responsible for administering and enforcing economic sanctions against targeted foreign countries, geographic regions, entities, and individuals to further U.S. foreign policy and national security goals. Economic sanctions are used by the U.S. government to prevent targets such as terrorists, international narcotics traffickers, weapons of mass destruction proliferators, and perpetrators of serious human rights abuse from accessing the U.S. financial system for purposes contrary to U.S. foreign policy and national security interests, and to change the behavior of such targets. In this way, among others, economic sanctions can be a powerful foreign policy tool, but the effectiveness of sanctions relies upon the active participation of everyone subject to U.S. jurisdiction, including those within the virtual currency industry. 2 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry What are OFAC Sanctions OFAC administers over 35 different sanctions programseach designed to respond to specific threats and to further U.S. foreign policy and national security goals. As a result, the types of sanctions employed in each program may differ. Generally, OFAC sanctions can be either comprehensive or targeted in nature and can require the blocking of assets or impose restrictions on financial or trade-related activities with a specific person, country, region, or government. The most comprehensive sanctions programs that OFAC administers typically include several or all of the following types of sanctions, while other sanctions programs may only employ some of these options: Broad trade-based Government or List-based Sectoral sanctions or regime sanctions sanctions sanctions embargoes prohibit dealings with an entire either (1) require the blocking target specific, listed individuals target individuals and entities country or geographic region, of all property and interests and entities and either (1) operating in specific sectors of unless exempt or authorized. in property of a particular require the blocking of all a foreign countrys economy This type of sanction usually foreign government or regime property and interests in or prohibit specific activities includes a prohibition on that are or come within the property of those listed persons associated with a sector of a importing or exporting goods or United States or the possession that are or come within the foreign countrys economy. services to or from the sanctioned or control of a U.S. person, United States or the possession jurisdiction. Such sanctioned or (2) prohibit specific types or control of a U.S. person, or jurisdictions currently include of transactions and activities (2) prohibit specific types of Cuba, Iran, North Korea, Syria, involving a particular foreign transactions and activities with and the Crimea region of Ukraine. government or regime. listed persons. In its administration of list-based sanctions, OFAC maintains several public lists of individuals and entities and their identified blocked property, such as aircraft and vessels, targeted by OFAC sanctions. The most prominent among these is the Specially Designated Nationals Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 3 and Blocked Persons List, known as the The SDN List SDN List. Both the SDN List and the Consolidated Sanctions List  a list OFACs Specially Designated Nationals and Blocked Persons List (the SDN List) is one of the that combines all other sanctions lists lists of sanctioned persons that OFAC publishes as part of its enforcement efforts. The SDN maintained by OFAC  are available for List includes certain individuals and entities sanctioned due to their nexus to a targeted country, public use in a number of different data geographic region, or regime. The SDN List also includes individuals, groups, and entities, formats and data schemas. To make it such as terrorists, narcotics traffickers, and human rights abusers designated under sanctions easier to screen and use OFACs sanctions programs that are not jurisdiction specific. Collectively, designated individuals and entities lists for compliance purposes, OFAC has a are called Specially Designated Nationals and blocked persons or SDNs. As of the date of free search tool, the Sanctions List Search, publication, OFACs SDN List contains over 9,000 names (or variations thereof) of designated which can conduct searches across all of individuals and entities located around the world, as well as identifications of certain property the sanctions lists administered by OFAC. blocked by sanctions such as vessels and aircraft. The SDN List is frequently updated, and you As explained in OFACs 50 Percent Rule, can sign up to receive email notifications whenever OFAC updates its SDN List. OFACs sanctions lists do not separately Additionally, pursuant to OFACs 50 Percent Rule, any entity owned, directly or indirectly, list the names of all entities owned 50 50 percent or more, individually or in the aggregate by one or more blocked persons, is also percent or more by blocked persons, or considered a blocked person even if that entity does not itself appear on the SDN Listand the the countries, regions, or governments same restrictions apply. (See Revised Guidance on Entities Owned by Persons Whose Property subject to more comprehensive sanctions. and Interests in Property Are Blocked, August 13, 2014.) OFACs sanctions programs are dynamic, so prior due diligence on the parties In general, unless exempt or authorized by OFAC, U.S. persons are prohibited from engaging in transactions and locations with which you plan to do with SDNs or blocked persons, directly or indirectly, and must block any property in their possession or control in business is essential. For more program- which an SDN or a blocked person has an interest. specific sanctions information, please visit T o learn more about other sanctions lists maintained by OFAC, visit OFACs OFACs Sanctions Programs and Country Other OFAC Sanctions Lists webpage. Information webpage. 4 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry How Do You Block Virtual Currency Once a U.S. person determines that they hold virtual currency that is required to be blocked pursuant to OFACs regulations, the U.S. person must deny all parties access to that virtual currency, ensure that they comply with OFAC regulations related to the holding and reporting of blocked assets, and implement controls that align with a risk-based approach. U.S. persons are not obligated to convert the blocked virtual currency into traditional fiat currency (e.g., U.S. dollars) and are not required to hold such blocked property in an interest-bearing account. Blocked virtual currency must be reported to OFAC within 10 business days, and thereafter on an annual basis, so long as the virtual currency remains blocked. (See OFAC Frequently Asked Question (FAQ) 646.) CASE STUDY OFAC Sanctions Involving Virtual Currency In recent years, OFAC sanctions have increasingly targeted individuals and entities that have used virtual currency in connection with malign activity. For example, on March 2, 2020, OFAC sanctioned two Chinese nationals involved in a North Korean state- sponsored money-laundering scheme. The individuals received approximately 100 million in virtual currency stolen from cyber intrusions against two virtual currency exchanges and began layering the funds in complex transactions to include purchasing over 1 million in digital music gift cards. More recently, on September 21, 2021, OFAC designated a Russian virtual currency exchange for facilitating financial transactions for ransomware actors. Based on analysis of known transactions, over 40 percent of the exchanges transaction history had been associated with illicit actors, involving the proceeds from at least eight ransomware variants. As sanctioned persons and countries become more desperate for access to the U.S. financial system, it is vital that the virtual currency industry prioritize cybersecurity and implement effective sanctions compliance controls to mitigate the risk of sanctioned persons and other actors exploiting virtual currencies to undermine U.S. foreign policy interests and national security. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 5 Who Must Comply with OFAC Sanctions All U.S. persons are required to comply with OFAC regulations. This includes all U.S. citizens and lawful permanent residents, wherever located; all individuals and entities within the United States; and all entities organized under the laws of the United States or any jurisdiction within the United States, including any foreign branches of those entities. Accordingly, anyone engaging in virtual currency activities in the United States, or that involve U.S. individuals or entities, should be aware of OFAC sanctions requirements and the circumstances in which they must comply with those requirements. Depending on the authorities governing each sanctions program, others may also be required to adhere to OFAC sanctions requirements. For example, OFACs Cuba, Iran, and North Korea sanctions programs extend sanctions prohibitions to certain foreign entities owned or controlled by U.S. persons or U.S. financial institutions. Certain activities by non-U.S. persons that involve the United States, U.S. persons, or goods or services exported from the United States may also be subject to OFAC sanctions regulations. Additionally, in most sanctions programs, any transaction that causes a violation  including a transaction by a non-U.S. person that causes a U.S. person to violate sanctions  is also prohibited. For certain sanctions programs, U.S. persons, wherever located, also are prohibited from facilitating actions on behalf of non-U.S. persons if the activity would be prohibited by sanctions regulations if directly performed by a U.S. person or within the United States. Strict Liability Regulations OFAC may impose civil penalties for sanctions violations generally based on a strict liability legal standard. This means that, in many cases, a U.S. person may be held civilly liable for sanctions violations even without having knowledge or reason to know it was engaging in such a violation. As a general matter, however, OFAC takes into consideration the totality of facts and circumstances surrounding an apparent violation to determine the appropriate enforcement response. For example, OFAC may consider as mitigating factors a virtual currency companys implementation of a risk-based OFAC compliance program and remedial measures taken in response to an apparent violation. For more information, see section III of the Enforcement Guidelines, General Factors Affecting Administrative Action. 6 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry OFAC Requirements and Procedures Several OFAC requirements and procedures, such as certain reporting and recordkeeping requirements and licensing procedures, uniformly apply across sanctions programs. For a more complete description of these requirements and procedures, refer to 31 C.F.R. Part 501, Reporting, Procedures and Penalties Regulation (RPPR), and OFACs answers to frequently asked questions (FAQs) on reporting requirements. Reporting Requirements I nitial Blocked Property Reports must be filed within 10 business days following the date that property is blocked. A nnual Blocked Property Reports on all blocked property held as of June 30 of the current year must be filed annually no later than September 30 of each year. R ejected Transaction Reports must be filed within 10 business days of the date the transaction was rejected due to sanctions requirements. O n Demand Reports of information related to transactions or property subject to OFACs regulations may be required by OFAC at any time, through an administrative subpoena. (See 31 C.F.R.  501.602 for more information.) OFAC strongly encourages filers to submit initial blocked property and rejected transaction reports through OFACs secure electronic reporting platform, the OFAC Reporting System (ORS). To register to submit such reports through ORS, or for ORS program information, please email ofacreporttreasury.gov. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 7 Recordkeeping Requirements W ho Every person engaging in transactions subject to OFACs regulations, and holders of blocked property, must keep records and make those records available for examination. W hat Full and accurate records are required for each transaction subject to OFACs regulations, including transactions processed pursuant to a license (whether a general license or a specific license), and of blocked property held. H ow long Required records must be maintained for five years after the date of the transaction or, with respect to blocked property, five years after property is unblocked. License Procedures OFAC may make exceptions to permit activity prohibited by sanctions or not otherwise exempt. These exceptions may take the form of general licenses, which are publicly issued, self-executing authorizations that permit performance of certain categories of transactions or activities by all U.S. persons, or by persons identified in the relevant sanctions authorities. Upon request, OFAC also may issue specific licenses, which are authorizations issued in response to a specific license application that allow the applicant to engage in specific transactions or activities that otherwise would be prohibited, or individualized interpretive guidance, if appropriate, to help clarify how regulatory requirements apply to a specific transaction. Each request for a specific license or interpretive guidance is reviewed by OFAC on a case-by-case basis and often requires coordination with other U.S. government agencies before OFAC can reach a determination. OFAC provides applicants a written response after reaching a determination on each request. Applicants are encouraged to file specific license applications and requests for interpretive guidance electronically, using OFACs License Application portal. 8 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry Consequences of Noncompliance Failing to adhere to OFAC sanctions requirements can cause considerable harm to the integrity and effectiveness of U.S. sanctions programs and their related policy objectives. Consequently, civil and criminal penalties for violations can be substantial. OFAC has authority to impose civil penalties for violations, which may vary by sanctions program. Enforcement Procedures Enforcement Guidelines OFACs sanctions enforcement V oluntary Self-Disclosure For those who believe they may process is governed by the procedures described in have violated OFAC-administered regulations, OFAC encourages OFACs Economic Sanctions Enforcement Guidelines (the disclosing the apparent violation to OFAC voluntarily. Voluntary Enforcement Guidelines). (See 31 C.F.R. Part 501, App. self-disclosure to OFAC may be considered a mitigating factor by A. for the guidelines and current penalty amounts.) OFAC OFAC in enforcement actions and, pursuant to the Enforcement encourages the virtual currency industry to review the Guidelines, may result in a 50 percent reduction in the base Enforcement Guidelines for more information on OFACs amount of any proposed civil penalty. Voluntary self-disclosures approach to sanctions enforcement. can be submitted electronically to OFACDisclosurestreasury.gov. Enforcement Actions OFAC may take a variety of actions Unless the disclosure is an initial disclosure that will be in response to apparent violations. These can include supplemented with additional information, a voluntary self- requesting additional information from involved parties; disclosure submission should contain sufficient detail to afford issuing either a No Action letter, Cautionary letter, OFAC a complete understanding of the circumstances surrounding Finding of Violation, or a civil monetary penalty to an apparent violation. OFACs Office of Compliance and resolve apparent violations; entering into a settlement Enforcement (OCE) Data Delivery Standards Guidance: Preferred with involved parties; or referring the matter to other Practices for Productions to OFAC details OFACs preferred technical government agencies, if appropriate, for a criminal standards for formatting electronic document productions for investigation. To see a complete list of OFACs public submission. (See FAQ 13.) enforcement actions, please visit our civil penalties and enforcement information webpage. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 9 Sanctions Compliance Best Practices for the Virtual Currency Industry As a general matter, U.S. persons, including members of the virtual currency industry, are responsible for ensuring they do not engage in unauthorized transactions or dealings with sanctioned persons or jurisdictions. OFAC strongly encourages a risk-based approach to sanctions compliance because there is no single compliance program or solution suitable to every circumstance or business. An adequate compliance solution for members of the virtual currency industry will depend on a variety of factors, including the type of business involved, its size and sophistication, products and services offered, customers and counterparties, and geographic locations served. OFACs A Framework for OFAC Compliance Commitments provides further detail on the five essential components of a sanctions compliance program: The Framework also includes an appendix that highlights several of the most common root causes of sanctions violations that OFAC has identified. All companies in the virtual currency industry, including technology companies, exchangers, administrators, miners, and wallet providers, as well as more traditional financial institutions that may have exposure to virtual currencies or their service providers, are encouraged to develop, implement, and routinely update, a tailored, risk-based sanctions compliance program. Such compliance programs generally should include sanctions list and geographic screening and other appropriate measures as determined by the companys unique risk profile. 10 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry Management Commitment Senior managements commitment to a companys sanctions compliance program is one of the most important factors in determining the programs success. Support from senior management is critical to ensure sanctions compliance efforts receive adequate resources and are fully integrated into the companys daily operations. The appropriate tone from the top also helps legitimize the program, empower the companys sanctions compliance personnel, and foster a culture of compliance throughout the company. The importance of managements commitment to a companys Senior management of companies in the virtual currency risk-based sanctions compliance program is the same in the virtual industry may consider taking the following steps to currency industry as it is in any other. In many cases, OFAC has demonstrate their support for sanctions compliance: observed that members of the virtual currency industry implement OFAC sanctions policies and procedures months, or even years, after Review and endorse sanctions compliance policies commencing operations. Delaying development and implementation and procedures of a sanctions compliance program can expose virtual currency Ensure adequate resources  including human companies to a wide variety of potential sanctions risks. It is never capital, expertise, information technology, and too soon to evaluate potential sanctions risks; this includes virtual other resources  support the compliance currency companies that are in the beta testing stage of their function operations. Such companies should consider sanctions compliance during the testing and review process so that sanctions compliance Delegate sufficient autonomy and authority to the can be accounted for as technologies are being developed and prior compliance unit to launching a new product. Appoint a dedicated sanctions compliance officer with the requisite technical expertise Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 11 Risk Assessment Sanctions risks are vulnerabilities that, if ignored or mishandled, can lead to violations of OFACs regulations and subsequent enforcement actions, harm to U.S. foreign policy and national security interests, and negative impacts on a companys reputation and business. OFAC recommends that companies in the virtual currency industry developing a sanctions compliance program conduct a routine and, if appropriate, ongoing risk assessment to identify potential sanctions issues the company is likely to encounter. While there is no one-size-fits-all risk assessment, the exercise should CASE STUDY: generally include a complete review of the company to assess its touchpoints to foreign jurisdictions or persons. This process allows the company to identify Diagnosing Risky Relationships potential areas in which it may, directly or indirectly, engage with OFAC- In 2021, OFAC entered into a settlement agreement with a U.S. sanctioned persons, countries, or regions. The results of a risk assessment virtual currency payment service provider for processing virtual are integral to developing effective sanctions compliance policies, procedures, currency transactions between the companys customers and internal controls, and training in order to mitigate exposure to sanctions risks. persons located in sanctioned jurisdictions. While the companys sanctions compliance controls included screening its direct OFAC encourages members of the virtual currency industry to evaluate customers  merchants in the United States and elsewhere  their exposure to OFAC sanctions and take steps to minimize their risks  for a potential nexus to sanctions, the company failed to screen including through development of an appropriate sanctions compliance available information about the individuals who used its payment program  prior to providing services or products to customers. A virtual processing platform to buy products from those merchants. currency companys risk assessment process should be tailored to the types Specifically, prior to effecting transactions, the company received of products and services offered and the locations in which such products information about some of the buyers, such as names, addresses, and services are offered. Appropriately customized risk assessments should telephone numbers, email addresses, and, at times, Internet reflect a companys customer or client base, products, services, supply chain, Protocol (IP) addresses. A comprehensive risk assessment that includes counterparties, transactions, and geographic locations, and may also include understanding who is accessing a companys platform or services may evaluating whether counterparties and partners have adequate help members of the virtual currency industry identify the appropriate compliance procedures. screening standards to set for each of its products and services. 12 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry Internal Controls An effective sanctions compliance program will include policies and procedures designed to address the risks identified in a companys risk assessment. These may include controls to identify, interdict, escalate, report (as appropriate), and maintain records for transactions or activities prohibited by OFAC-administered sanctions. An effective sanctions compliance program will enable a company to conduct sufficient due diligence on customers, business partners, and transactions and identify red flags. Red flags are indications that illicit activity or compliance breakdowns may be occurring that prompt a company to investigate and take appropriate action. Policies and procedures should CASE STUDY: be enforced, and weaknesses should be identified (including through root cause analysis of any compliance CASE STUDY: breaches) and remediated to prevent activity that might Double-Duty Data violate sanctions. One sanctions risk that members of the virtual currency industry face is from In the virtual currency industry, the internal controls users located in sanctioned jurisdictions who try to access virtual currency a company implements will depend on, among other products and services. Depending on the circumstances, this may result in a things, the products and services the company offers, sanctions violation. In 2020, a U.S. company that offers digital asset custody, where the company operates, the locations of its users, trading, and financing services internationally entered into a settlement and what sanctions-specific risks the company identifies agreement with OFAC for processing virtual currency transactions on behalf during its risk assessment process. Internal controls of individuals who appeared to be located in sanctioned jurisdictions. often involve the use of industry-specific tools, such as Although the company tracked its users IP addresses when users logged in screening, investigation, and transaction monitoring. for security purposes, the company did not use the IP address information it While OFAC does not require the virtual currency industry collected to screen for and prevent potential sanctions violations. As a result, to use any particular in-house or third-party software, the company failed to prevent use of its non-custodial secure digital wallet these can be helpful tools for an effective sanctions management service by individuals with IP addresses located in the Crimea compliance program. region of Ukraine, Cuba, Iran, Sudan, and Syriaall sanctioned jurisdictions at the time. Implementing internal controls to screen available data and block activity involving certain IP addresses can prevent sanctions violations. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 13 OFAC recommends the following best practices for virtual currency companies to strengthen internal controls as part of an effective sanctions compliance program: Geolocation Tools Incorporate geolocation tools and IP address blocking controls. Virtual currency companies with strong sanctions compliance programs should be able to use geolocation tools to identify and prevent IP addresses that originate in sanctioned jurisdictions from accessing a companys website and services for activity that is prohibited by OFACs regulations, and not authorized or exempt. Without these internal controls, virtual currency companies may fail to prevent persons who are located in comprehensively sanctioned jurisdictions from accessing their platforms or services to engage in prohibited activity. Analytic tools can identify IP misattribution, for example, by screening IP addresses against known virtual private network (VPN) IP addresses and identifying improbable logins (such as the same user logging in with an IP address in the United States, and then shortly after with an IP address in Japan). Additionally, virtual currency companies often obtain other information that can alert the company that a particular transaction involves a person located in a sanctioned jurisdiction. This data may come from address information provided by a customer or counterparty, information contained in email addresses, or invoice and other transactional information, among other sources. A company should consider incorporating the review of such information into its sanctions compliance program, even if it was obtained for a different reason  such as for business or security purposes  to ensure the company is utilizing all available information for sanctions compliance purposes. OFAC has taken enforcement actions against companies in the virtual currency industry that have engaged in prohibited activity because they failed to prevent users in sanctioned jurisdictions from accessing and using their platforms. This was due, in part, to a failure to use the geolocation information in their possession. (See OFACs Civil Penalties and Enforcement Information webpage for enforcement actions against virtual currency companies in 2020 and 2021.) Know Your Customer (KYC) Procedures Obtain information about customers during onboarding and throughout the lifecycle of the customer relationship and use such information to conduct due diligence sufficient to mitigate potential sanctions-related risk. This information can be utilized in the sanctions screening process to prevent violations. For example, information gathering may include the following elements at onboarding, during periodic reviews, and when processing customer transactions: Individuals: legal name, date of birth, physical and email address, nationality, IP addresses associated with transactions and logins, bank information, and government identification and residency documents 14 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry Entities: entity name (including trade and legal name), line of business, ownership information, physical and email address, location information, IP addresses associated with transactions and logins, information about where the entity does business, bank information, and any relevant government documents Higher-risk customers may warrant additional due diligence. This could include, for example, examining customer transaction history for connections to sanctioned jurisdictions or transactions with virtual currency addresses that have been linked to sanctioned actors. Additionally, information collected in adherence with existing anti-money laundering (AML) obligations, as applicable, may also be helpful in assessing and mitigating sanctions risks. (See FinCENs Advisory on Illicit Activity Involving Convertible Virtual Currency for more information regarding applicable AML obligations.) Transaction Monitoring and Investigation Transaction monitoring and investigation software can be used to identify transactions involving virtual currency addresses or other identifying information (e.g., originator, beneficiary, originating and beneficiary exchanges, and underlying transactional data) associated with sanctioned individuals and entities listed on the SDN List or other sanctions lists, or located in sanctioned jurisdictions. This internal control helps equip virtual currency companies with the ability to prevent transfers to addresses associated with sanctioned persons and avoid violations of U.S. sanctions. Those in the virtual currency industry may also employ transaction monitoring and investigation tools to continually review historical information for such addresses or other identifying information to better understand their exposure to sanctions risks and identify sanctions compliance program deficiencies. In 2018, OFAC began including certain known virtual currency addresses as identifying information for persons listed on the SDN List. These virtual currency addresses can be searched using the ID  field in OFACs Sanctions List Search tool. (See FAQs 562, 563, and 594.) As a best practice for risk-based compliance, companies operating in the virtual currency industry should employ tools sufficient to identify and block transactions associated with blocked persons, including transactions associated with those virtual currency addresses included on the SDN List. Moreover, OFACs inclusion of virtual currency addresses on the SDN List may assist the industry in identifying other virtual currency addresses that may be associated with blocked persons or otherwise pose sanctions risk, even if those other addresses are not explicitly listed on the SDN List. For example, unlisted virtual currency addresses that share a wallet with a listed virtual currency address may pose sanctions risk because the sharing of a wallet may indicate an association with a blocked person. Similarly, virtual currency companies may consider conducting a historic lookback of transactional activity after OFAC lists a virtual currency address on the SDN List to identify connections to the listed address. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 15 A lookback could also identify connections to unlisted addresses that have previously transacted with the listed address, as such unlisted addresses could also pose sanctions risk depending on the nature of those transactions. Companies in the virtual currency industry may consider deploying blockchain analytics tools that help identify and mitigate these sanctions risks. Implementing Remedial Measures Upon learning of a weakness in a companys sanctions compliance internal controls (including the discovery of an apparent sanctions violation), virtual currency companies are encouraged to take immediate and effective action, to the extent possible, to identify and implement compensating controls until the root cause of the weakness can be determined and remediated. Consistent with its Enforcement Guidelines, OFAC may consider as a mitigating factor in a potential enforcement action a virtual currency companys implementation of remedial measures taken in response to an apparent violation. Sanctions Screening: Screening can be an essential part of a virtual currency companys internal controls, and may include geolocation, customer identification, transaction screening, and more. Virtual currency companies should consider implementing the following screening-related best practices into their sanctions compliance programs:  Screening customer information against OFAC-administered sanctions lists, including the SDN List, at the time of onboarding  Screening transactions to identify addresses, including physical, digital wallet, and IP addresses, and other relevant information with potential links to sanctioned persons or jurisdictions  Utilizing screening tools fuzzy logic capabilities to account for common name variations and misspellings, for example:  Misspellings or alternative spellings related to sanctioned jurisdictions (e.g., Yalta, Krimea)  V ariations on capitalization, spacing, or punctuation for names of persons listed on OFAC sanctions lists (e.g., Krayinvestbank may appear on the SDN List, but Krajinvestbank or Kray Invest Bank may appear in the transaction information provided to a virtual currency company)  Ongoing sanctions screening and risk-based re-screening (for example, related to a historical lookback) to account for updated customer information, updates to OFAC sanctions lists, or changes in regulatory requirements 16 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry Remediating the Root Causes of Violations In response to OFAC enforcement actions, virtual currency companies have taken action to remediate the root causes of their apparent violations, to identify weaknesses in their internal controls, and to implement new controls to prevent future violations. Some of these remedial measures have included:  Implementing IP address blocking and email-related  Implementing an OFAC-related training program for restrictions for sanctioned jurisdictions employees  Creating a keywords list of a sanctioned jurisdictions cities  Conducting additional sanctions compliance training for and regions to be used when screening KYC information all relevant personnel  Reviewing and updating end-user agreements to include  Hiring additional compliance staff and a dedicated chief information about U.S. sanctions requirements or sanctions compliance officer  Conducting retroactive batch screening of all users Risk Indicators or Red Flags: In addition to screening transaction and other KYC identifying information, virtual currency companies should also consider monitoring transactions and users for risk indicators or red flags that may indicate a sanctions nexus. Examples of risk indicators may be individuals or entities who: Provide inaccurate or incomplete customer identification or KYC information when attempting to open an account Attempt to access a virtual currency exchange from an IP address or VPN connected to a sanctioned jurisdiction Are non-responsive or refuse to provide updated customer identification or KYC information A re non-responsive or refuse to provide additional transaction information in response to a virtual currency companys request Attempt to transact with a virtual currency address associated with a blocked person or sanctioned jurisdiction Additionally, as appropriate, red flags indicative of money laundering or other illicit financial activity may also be indicative of potential sanctions evasion. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 17 Testing and Auditing The best way to ensure a sanctions compliance program is working as well as intended is to test the effectiveness of the program. Companies that incorporate a comprehensive, independent, and objective testing or audit function within their sanctions compliance program are equipped to ensure that they are aware of how their programs are performing and what aspects need to be updated, enhanced, or recalibrated to account for a changing risk assessment or sanctions environment. The size and sophistication of a company may determine whether it conducts internal and external audits of its sanctions compliance program. Some best practices for testing and audit procedures in sanctions compliance programs for the virtual currency industry include: Sanctions List Screening Ensure screening of the SDN List and other sanctions lists is functioning effectively and is appropriately flagging transactions for further review Keyword Screening Ensure that screening tools are appropriately flagging geographic keywords in connection with KYC-related screening or other transaction screening IP Blocking Ensure IP address software is properly preventing users from sanctioned jurisdictions from accessing its products and services Investigation and Reporting Review procedures for investigating transactions identified through the screening process as having a potential sanctions nexus (e.g., transactions involving a blocked person or a keyword related to a sanctioned jurisdiction) and procedures for blocked property or rejected transaction reporting to OFAC 18 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry Training Finally, sanctions-specific training is critical to the success of any companys sanctions compliance program. The scope of a companys training will be informed by the size, sophistication, and risk profile of the company. OFAC training should be provided to all appropriate employees, including compliance, management, and customer service personnel, and should be conducted on a periodic basis, and, at a minimum, annually. A well-developed OFAC training program will provide job-specific knowledge based on need, communicate the sanctions compliance responsibilities for each employee, and hold employees accountable for meeting training requirements through the use of assessments. Effective OFAC training for the virtual currency industry should account for frequent changes and updates to sanctions programs, as well as new and emerging technologies in the virtual currency space. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 19 OFAC Resources For more information about OFAC sanctions, please visit OFACs website where you can find answers to frequently asked questions, including several specific to the virtual currency industry; information about recent designation actions and sanctions list updates; and publications of general licenses, advisories, or other guidance. OFAC issues frequent updates, so we encourage virtual currency companies to sign up for OFACs Recent Actions notifications to receive updates to existing guidance. Frequently Asked Questions on Virtual Currency Topics Virtual Currency FAQs Link The new FAQ is titled For purposes of OFAC sanctions programs, what do the terms digital currency, digital currency FAQ 559 wallet, digital currency address, and virtual currency mean Are my OFAC compliance obligations the same, regardless of whether a transaction is denominated in digital currency or FAQ 560 traditional fiat currency How will OFAC use its existing authorities to sanction those who use digital currencies for illicit purposes FAQ 561 How will OFAC identify digital currency-related information on the SDN List FAQ 562 What is the structure of a digital currency address on OFACs SDN List FAQ 563 Is it possible to query a digital currency address using OFACs Sanctions List Search tool FAQ 594 How do I block virtual currency FAQ 646 Should an institution tell its customer that it blocked access to their digital currency and, if so, how does the institution FAQ 647 explain it to the customer 20 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry Venezuela Virtual Currency FAQs Link For purposes of Executive Order (E.O.) 13827, Taking Additional Steps to Deal with the Situation in Venezuela, of March 19, FAQ 564 2018, are the petro and petro-gold considered a digital currency, digital coin, or digital token that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018 For purposes of E.O. 13827, Taking Additional Steps to Deal with the Situation in Venezuela, of March 19, 2018, is Venezuelas FAQ 565 traditional fiat currency, bolivar fuerte, considered a digital currency, digital coin, or digital token that was issued by, for, or on behalf of the Government of Venezuela on or after January 9, 2018 I participated in the pre-sale for a Government of Venezuela-issued digital currency, digital coin, or digital token before E.O. FAQ 566 13827, Taking Additional Steps to Deal with the Situation in Venezuela, of March 19, 2018, became effective. Am I allowed to sell, trade, use, or otherwise deal in such digital currency, digital coin, or digital token on or after the sanctions effective date Contact Information OFACs Compliance Hotline is a resource for the public to contact OFAC for guidance, including general information about OFAC, assistance using OFACs Sanctions List Search tool, specific guidance about how to comply with OFAC-administered sanctions programs, and tips for navigating OFACs website to find helpful guidance and other information published by OFAC, such as answers to frequently asked questions. We encourage the virtual currency industry to contact OFAC with any questions about this guidance or about complying with sanctions requirements. By telephone Electronically Toll Free OFAC Compliance Hotline 1-800-540-6322 E-mail Hotline OFACFeedbackTreasury.gov Local OFAC Compliance Hotline 1-202-622-2490 Voluntary Self-Disclosure Submission OFACDisclosuresTreasury.gov OFACs License Application Status Hotline 1-202-622-2480 Report Submission (if ORS is inaccessible) OFACReporttreasury.gov OFAC is committed to engaging with the virtual currency industry to promote understanding of, and compliance with, sanctions requirements. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 21 Resource Sites OFAC Homepage: www.treasury.govofac OFAC Contacts Webpage: https:home.treasury.govpolicy-issuesfinancial-sanctionscontact-ofac OFAC Reporting System: https:home.treasury.govpolicy-issuesfinancial-sanctionsofac-reporting-system OFAC Licensing Portal: https:home.treasury.govpolicy-issuesfinancial-sanctionsofac-license-application-page Sanctions List Search Tool: https:sanctionssearch.ofac.treas.gov SDN List: https:home.treasury.govpolicy-issuesfinancial-sanctionsspecially-designated-nationals-list-data-formats-data-schemas Consolidated Sanctions List (Non-SDN Lists): https:home.treasury.govpolicy-issuesfinancial-sanctionsconsolidated-sanctions-list-non-sdn-lists Other OFAC Sanctions Lists: https:home.treasury.govpolicy-issuesfinancial-sanctionsother-ofac-sanctions-lists OFAC-Administered Sanctions Programs and Country Information: https:home.treasury.govpolicy-issuesfinancial-sanctionssanctions-programs-and-country-information OFAC FAQs: https:home.treasury.govpolicy-issuesfinancial-sanctionsfaqs OFAC Recent Actions: https:home.treasury.govpolicy-issuesfinancial-sanctionsrecent-actions Economic Sanctions Enforcement Guidelines  Appendix A to Part 501: https:home.treasury.govsystemfiles126fr7457593.pdf A Framework for OFAC Compliance Commitments: https:home.treasury.govsystemfiles126frameworkofaccc.pdf Office of Compliance and Enforcement (OCE) Data Delivery Standards Guidance: Preferred Practices for Productions to OFAC: https:home.treasury.govpolicy-issuesfinancial-sanctionscivil-penalties-and-enforcement-information2019-enforcement- informationofac-office-of-compliance-and-enforcement-data-delivery-standards-guidance-preferred-practices-for-productions-to-ofac Civil Penalties and Enforcement Information: https:home.treasury.govpolicy-issuesfinancial-sanctionscivil-penalties-and-enforcement-information Guidance on the North Korean Cyber Threat: https:home.treasury.govsystemfiles126dprkcyberthreatadvisory20200415.pdf 22 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry This document is explanatory only and does not have the force of law. The guidance contained herein may be subject to frequent change and does not supplement or modify the statutes, regulations, executive orders, or other authorities that govern sanctions administered by OFAC. See Title 31, Chapter V of the Code of Federal Regulations and https:home.treasury.govpolicy-issuesfinancial-sanctionssanctions-programs-and-country-information for legally binding provisions governing OFAC-administered sanctions. Sanctions Compliance Guidance for the Virtual Currency Industry U.S. Department of the Treasury  OFAC 23 24 OFAC  U.S. Department of the Treasury Sanctions Compliance Guidance for the Virtual Currency Industry","DEPARTMENT OF THE TREASURY WASHINGTON, D.C. Updated Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments1 Date: September 21, 2021 The U.S. Department of the Treasurys Office of Foreign Assets Control (OFAC) is issuing this updated advisory to highlight the sanctions risks associated with ransomware payments in connection with malicious cyber-enabled activities and the proactive steps companies can take to mitigate such risks, including actions that OFAC would consider to be mitigating factors in any related enforcement action.2 Demand for ransomware payments has increased during the COVID-19 pandemic as cyber actors target online systems that U.S. persons rely on to continue conducting business. Companies that facilitate ransomware payments to cyber actors on behalf of victims, including financial institutions, cyber insurance firms, and companies involved in digital forensics and incident response, not only encourage future ransomware payment demands but also may risk violating OFAC regulations. The U.S. government strongly discourages all private companies and citizens from paying ransom or extortion demands and recommends focusing on strengthening defensive and resilience measures to prevent and protect against ransomware attacks. This advisory describes the potential sanctions risks associated with making and facilitating ransomware payments and provides information for contacting relevant U.S. government agencies, including OFAC if there is any reason to suspect the cyber actor demanding ransomware payment may be sanctioned or otherwise have a sanctions nexus.3 Background on Ransomware Attacks Ransomware is a form of malicious software (malware) designed to block access to a computer system or data, often by encrypting data or programs on information technology systems to extort ransom payments from victims in exchange for decrypting the information and restoring victims access to their systems or data. In some cases, in addition to the attack, cyber actors threaten to publicly disclose victims sensitive files. The cyber actors then demand a 1 This advisory is explanatory only and does not have the force of law. It does not modify statutory authorities, Executive Orders, or regulations. It is not intended to be, nor should it be interpreted as, comprehensive, or as imposing requirements under U.S. law, or otherwise addressing any requirements under applicable law. Please see the legally binding provisions cited for relevant legal authorities. 2 This advisory updates and supersedes OFACs Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments of October 1, 2020. 3 This advisory is limited to sanctions risks related to ransomware and is not intended to address issues related to information security practitioners cyber threat intelligence-gathering efforts more broadly. For guidance related to those activities, see guidance from the U.S. Department of Justice, Legal Considerations when Gathering Online Cyber Threat Intelligence and Purchasing Data from Illicit Sources (February 2020), available at https:www.justice.govcriminal-ccipspagefile1252341download. ransomware payment, usually through virtual currency, in exchange for a key to decrypt the files and restore victims access to systems or data. In recent years, ransomware attacks have become more focused, sophisticated, costly, and numerous. According to the Federal Bureau of Investigation (FBI), there was a nearly 21 percent increase in reported ransomware cases and a 225 percent increase in associated losses from 2019 to 2020.4 Ransomware attacks are carried out against private and governmental entities of all sizes and in all sectors, including organizations operating critical infrastructure, such as hospitals. Often attacks also take place against vulnerable entities such as school districts and smaller businesses, in part due to the attackers assumption that such victims may have fewer resources to invest in cyber protection and will make quick payment to restore services. OFAC Designations of Malicious Cyber Actors OFAC has designated numerous malicious cyber actors under its cyber-related sanctions program and other sanctions programs, including perpetrators of ransomware attacks and those who facilitate ransomware transactions. For example, starting in 2013, a ransomware variant known as Cryptolocker was used to infect more than 234,000 computers, approximately half of which were in the United States.5 OFAC designated the developer of Cryptolocker, Evgeniy Mikhailovich Bogachev, in December 2016.6 Starting in late 2015 and lasting approximately 34 months, SamSam ransomware was used to target mostly U.S. government institutions and companies, including the City of Atlanta, the Colorado Department of Transportation, and a large healthcare company. In November 2018, OFAC designated two Iranians for providing material support to a malicious cyber activity and identified two virtual currency addresses used to funnel SamSam ransomware proceeds.7 In May 2017, a ransomware known as WannaCry 2.0 infected approximately 300,000 computers in at least 150 countries. This attack was linked to the Lazarus Group, a cybercriminal organization sponsored by North Korea. OFAC designated the Lazarus Group and two sub- groups, Bluenoroff and Andariel, in September 2019.8 4 Compare Federal Bureau of Investigation, Internet Crime Complaint Center, 2019 Internet Crime Report, available at https:pdf.ic3.gov2019IC3Report.pdf, with Federal Bureau of Investigation, Internet Crime Complaint Center, 2020 Internet Crime Report, available at https:www.ic3.govMediaPDFAnnualReport2020IC3Report.pdf. 5 Press Release, U.S. Dept. of Justice, U.S. Leads Multi-National Action Against Gameover Zeus Botnet and Cryptolocker Ransomware, Charges Botnet Administrator (June 2, 2014), available at https:www.justice.govopaprus-leads-multi-national-action-against-gameover-zeus-botnet-and-cryptolocker- ransomware. 6 Press Release, U.S. Dept. of the Treasury, Treasury Sanctions Two Individuals for Malicious Cyber-Enabled Activities (Dec. 29, 2016), available at https:www.treasury.govpress-centerpress-releasesPagesjl0693.aspx. 7 Press Release, U.S. Dept. of the Treasury, Treasury Designates Iran-Based Financial Facilitators of Malicious Cyber Activity and for the First Time Identifies Associated Digital Currency Addresses (Nov. 28, 2018), available at https:home.treasury.govnewspress-releasessm556. 8 Press Release, U.S. Dept. of the Treasury, Treasury Sanctions North Korean State-Sponsored Malicious Cyber Groups (Sept. 13, 2019), available at https:home.treasury.govnewspress-releasessm774. -2- Beginning in 2015, Evil Corp, a Russia-based cybercriminal organization, used the Dridex malware to infect computers and harvest login credentials from hundreds of banks and financial institutions in over 40 countries, causing more than 100 million in theft. In December 2019, OFAC designated Evil Corp and its leader, Maksim Yakubets, for their development and distribution of the Dridex malware.9 In September 2021, OFAC designated SUEX OTC, S.R.O. (SUEX), a virtual currency exchange, for its part in facilitating financial transactions for ransomware actors, involving illicit proceeds from at least eight ransomware variants. Analysis of known SUEX transactions showed that over 40 of SUEXs known transaction history was associated with illicit actors.10 OFAC has imposed, and will continue to impose, sanctions on these actors and others who materially assist, sponsor, or provide financial, material, or technological support for these activities.11 Ransomware Payments with a Sanctions Nexus Threaten U.S. National Security Interests Facilitating a ransomware payment that is demanded as a result of malicious cyber activities may enable criminals and adversaries with a sanctions nexus to profit and advance their illicit aims. For example, ransomware payments made to sanctioned persons or to comprehensively sanctioned jurisdictions could be used to fund activities adverse to the national security and foreign policy objectives of the United States. Such payments not only encourage and enrich malicious actors, but also perpetuate and incentivize additional attacks. Moreover, there is no guarantee that companies will regain access to their data or be free from further attacks themselves. For these reasons, the U.S. government strongly discourages the payment of cyber ransom or extortion demands. Facilitating Ransomware Payments on Behalf of a Victim May Violate OFAC Regulations Under the authority of the International Emergency Economic Powers Act (IEEPA) or the Trading with the Enemy Act (TWEA),12 U.S. persons are generally prohibited from engaging in transactions, directly or indirectly, with individuals or entities (persons) on OFACs Specially Designated Nationals and Blocked Persons List (SDN List), other blocked persons, and those covered by comprehensive country or region embargoes (e.g., Cuba, the Crimea region of 9 Press Release, U.S. Dept. of the Treasury, Treasury Sanctions Evil Corp, the Russia-Based Cybercriminal Group Behind Dridex Malware (Dec. 5, 2019), available at https:home.treasury.govnewspress-releasessm845. 10 Press Release, U.S. Dept. of the Treasury, Treasury Takes Robust Actions to Counter Ransomware (Sept. 21, 2021), available at https:home.treasury.govnewspress-releasesjy0364. 11 Federal charges have also been brought in connection with each of the aforementioned ransomware schemes. See, e.g., Press Release, U.S. Dept. of Justice, Russian National Charged with Decade-Long Series of Hacking and Bank Fraud Offenses Resulting in Tens of Millions in Losses and Second Russian National Charged with Involvement in Deployment of Bugat Malware (Dec. 5, 2019), available at https:www.justice.govopaprrussian-national- charged-decade-long-series-hacking-and-bank-fraud-offenses-resulting-tens; and Press Release U.S. Dept. of Justice, Three North Korean Military Hackers Indicted in Wide-Ranging Scheme to Commit Cyberattacks and Financial Crimes Across the Globe (Feb. 17, 2021), available at https:www.justice.govopaprthree-north-korean- military-hackers-indicted-wide-ranging-scheme-commit-cyberattacks- and::textA20federal20indictment20unsealed20today,and20companies2C20to20create20. 12 50 U.S.C.  430141; 50 U.S.C.  170106. -3- Ukraine, Iran, North Korea, and Syria). Additionally, any transaction that causes a violation under IEEPA, including a transaction by a non-U.S. person that causes a U.S. person to violate any IEEPA-based sanctions prohibitions, is also prohibited. U.S. persons, wherever located, are also generally prohibited from facilitating actions of non-U.S. persons that could not be directly performed by U.S. persons due to U.S. sanctions regulations. OFAC may impose civil penalties for sanctions violations based on strict liability, meaning that a person subject to U.S. jurisdiction may be held civilly liable even if such person did not know or have reason to know that it was engaging in a transaction that was prohibited under sanctions laws and regulations administered by OFAC. OFACs Economic Sanctions Enforcement Guidelines (Enforcement Guidelines)13 provide more information regarding OFACs enforcement of U.S. economic sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation. Enforcement responses range from non-public responses, including issuing a No Action Letter or a Cautionary Letter, to public responses, such as civil monetary penalties. Sanctions Compliance Program and DefensiveResilience Measures Under OFACs Enforcement Guidelines, the existence, nature, and adequacy of a sanctions compliance program is a factor that OFAC may consider when determining an appropriate enforcement response to an apparent violation of U.S. sanctions laws or regulations. As a general matter, OFAC encourages financial institutions and other companies to implement a risk-based compliance program to mitigate exposure to sanctions-related violations.14 This also applies to companies that engage with victims of ransomware attacks, such as those involved in providing cyber insurance, digital forensics and incident response, and financial services that may involve processing ransom payments (including depository institutions and money services businesses). In particular, the sanctions compliance programs of these companies should account for the risk that a ransomware payment may involve an SDN or blocked person, or a comprehensively embargoed jurisdiction. Companies involved in facilitating ransomware payments on behalf of victims should also consider whether they have regulatory obligations under Financial Crimes Enforcement Network (FinCEN) regulations.15 Meaningful steps taken to reduce the risk of extortion by a sanctioned actor through adopting or improving cybersecurity practices, such as those highlighted in the Cybersecurity and Infrastructure Security Agencys (CISA) September 2020 Ransomware Guide,16 will be 13 31 C.F.R. part 501, appx. A. 14 To assist the public in developing an effective sanctions compliance program, in 2019, OFAC published A Framework for OFAC Compliance Commitments, intended to provide organizations with a framework for the five essential components of a risk-based sanctions compliance program. The Framework is available at https:home.treasury.govsystemfiles126frameworkofaccc.pdf. 15 See FinCEN Guidance, FIN-2020-A006, Advisory on Ransomware and the Use of the Financial System to Facilitate Ransom Payments, October 1, 2020, for applicable anti-money laundering obligations related to financial institutions in the ransomware context. 16 See Cybersecurity and Infrastructure Security Agency Guidance, Ransomware Guide, September 2020, https:www.cisa.govsitesdefaultfilespublicationsCISAMS-ISACRansomware20GuideS508C.pdf. -4- considered a significant mitigating factor in any OFAC enforcement response.17 Such steps could include maintaining offline backups of data, developing incident response plans, instituting cybersecurity training, regularly updating antivirus and anti-malware software, and employing authentication protocols, among others. Cooperation with OFAC and Law Enforcement Another factor that OFAC will consider under the Enforcement Guidelines is the reporting of ransomware attacks to appropriate U.S. government agencies and the nature and extent of a subject persons cooperation with OFAC, law enforcement, and other relevant agencies, including whether an apparent violation of U.S. sanctions is voluntarily self-disclosed. In the case of ransomware payments that may have a sanctions nexus, OFAC will consider a companys self-initiated and complete report of a ransomware attack to law enforcement or other relevant U.S. government agencies, such as CISA or the U.S. Department of the Treasurys Office of Cybersecurity and Critical Infrastructure Protection (OCCIP), made as soon as possible after discovery of an attack, to be a voluntary self-disclosure and a significant mitigating factor in determining an appropriate enforcement response. OFAC will also consider a companys full and ongoing cooperation with law enforcement both during and after a ransomware attack  e.g., providing all relevant information such as technical details, ransom payment demand, and ransom payment instructions as soon as possible  to be a significant mitigating factor. While the resolution of each potential enforcement matter depends on the specific facts and circumstances, OFAC would be more likely to resolve apparent violations involving ransomware attacks with a non-public response (i.e., a No Action Letter or a Cautionary Letter) when the affected party took the mitigating steps described above, particularly reporting the ransomware attack to law enforcement as soon as possible and providing ongoing cooperation. OFAC Licensing Policy Ransomware payments benefit illicit actors and can undermine the national security and foreign policy objectives of the United States. For this reason, license applications involving ransomware payments demanded as a result of malicious cyber-enabled activities will continue to be reviewed by OFAC on a case-by-case basis with a presumption of denial. Victims of Ransomware Attacks Should Contact Relevant Government Agencies OFAC strongly encourages all victims and those involved with addressing ransomware attacks to report the incident to CISA, their local FBI field office, the FBI Internet Crime Complaint Center, or their local U.S. Secret Service office as soon as possible. Victims should also report ransomware attacks and payments to Treasurys OCCIP and contact OFAC if there is any reason to suspect a potential sanctions nexus with regard to a ransomware payment. As noted, in doing so victims can receive significant mitigation from OFAC when determining an appropriate enforcement response in the event a sanctions nexus is found in connection with a ransomware payment. 17 See the U.S. government's website, https:www.cisa.govstopransomware, for additional guidance. -5- By reporting ransomware attacks as soon as possible, victims may also increase the likelihood of recovering access to their data through other means, such as alternative decryption tools, and in some circumstances may be able to recover some of the ransomware payment. Additionally, reporting ransomware attacks and payments provides critical information needed to track cyber actors, hold them accountable, and prevent or disrupt future attacks. Contact Information for U.S. Department of Treasury Agencies:  U.S. Department of the Treasurys Office of Foreign Assets Control o Sanctions Compliance and Evaluation Division: ofacfeedbacktreasury.gov; (202) 622-2490  (800) 540-6322 o Licensing Division: https:licensing.ofac.treas.gov; (202) 622-2480  U.S. Department of the Treasurys Office of Cybersecurity and Critical Infrastructure Protection (OCCIP) o OCCIP-Coordtreasury.gov; (202) 622-3000  U.S. Department of the Treasurys Financial Crimes Enforcement Network (FinCEN) o FinCEN Regulatory Support Section: frcfincen.gov Contact Information for Other Relevant U.S. Government Agencies:  Federal Bureau of Investigation Cyber Task Force o https:www.ic3.govdefault.aspx; www.fbi.govcontact-usfield  U.S. Secret Service Cyber Fraud Task Force o https:secretservice.govcontactfield-offices  Cybersecurity and Infrastructure Security Agency o https:us-cert.cisa.govformsreport  Homeland Security Investigations Field Office o https:www.ice.govcontacthsi Ransomware Prevention Resources:  U.S. Government StopRansomWare.gov Website o https:www.cisa.govstopransomware  CISA Ransomware Guide o https:www.cisa.govstopransomwareransomware-guide If you have any questions regarding the scope of any sanctions requirements described in this advisory, please contact OFACs Sanctions Compliance and Evaluation Division at (800) 540- 6322 or (202) 622-2490. -6-","DPRK Cyber Threat Advisory Issued: April 15, 2020 Title: Guidance on the North Korean Cyber Threat The U.S. Departments of State, the Treasury, and Homeland Security, and the Federal Bureau of Investigation are issuing this advisory as a comprehensive resource on the North Korean cyber threat for the international community, network defenders, and the public. The advisory highlights the cyber threat posed by North Korea  formally known as the Democratic Peoples Republic of Korea (DPRK)  and provides recommended steps to mitigate the threat. In particular, Annex 1 lists U.S. government resources related to DPRK cyber threats and Annex 2 includes a link to the UN 1718 Sanctions Committee (DPRK) Panel of Experts reports. The DPRKs malicious cyber activities threaten the United States and the broader international community and, in particular, pose a significant threat to the integrity and stability of the international financial system. Under the pressure of robust U.S. and UN sanctions, the DPRK has increasingly relied on illicit activities  including cybercrime  to generate revenue for its weapons of mass destruction and ballistic missile programs. In particular, the United States is deeply concerned about North Koreas malicious cyber activities, which the U.S. government refers to as HIDDEN COBRA. The DPRK has the capability to conduct disruptive or destructive cyber activities affecting U.S. critical infrastructure. The DPRK also uses cyber capabilities to steal from financial institutions, and has demonstrated a pattern of disruptive and harmful cyber activity that is wholly inconsistent with the growing international consensus on what constitutes responsible State behavior in cyberspace. The United States works closely with like-minded countries to focus attention on and condemn the DPRKs disruptive, destructive, or otherwise destabilizing behavior in cyberspace. For example, in December 2017, Australia, Canada, New Zealand, the United States, and the United Kingdom publicly attributed the WannaCry 2.0 ransomware attack to the DPRK and denounced the DPRKs harmful and irresponsible cyber activity. Denmark and Japan issued supporting statements for the joint denunciation of the destructive WannaCry 2.0 ransomware attack, which affected hundreds of thousands of computers around the world in May 2017. It is vital for the international community, network defenders, and the public to stay vigilant and to work together to mitigate the cyber threat posed by North Korea. 1 DPRKs Malicious Cyber Activities Targeting the Financial Sector Many DPRK cyber actors are subordinate to UN- and U.S.-designated entities, such as the Reconnaissance General Bureau. DPRK state-sponsored cyber actors primarily consist of hackers, cryptologists, and software developers who conduct espionage, cyber-enabled theft targeting financial institutions and digital currency exchanges, and politically-motivated operations against foreign media companies. They develop and deploy a wide range of malware tools around the world to enable these activities and have grown increasingly sophisticated. Common tactics to raise revenue illicitly by DPRK state-sponsored cyber actors include, but are not limited to: Cyber-Enabled Financial Theft and Money Laundering. The UN Security Council 1718 Committee Panel of Experts 2019 mid-term report (2019 POE mid-term report) states that the DPRK is increasingly able to generate revenue notwithstanding UN Security Council sanctions by using malicious cyber activities to steal from financial institutions through increasingly sophisticated tools and tactics. The 2019 POE mid-term report notes that, in some cases, these malicious cyber activities have also extended to laundering funds through multiple jurisdictions. The 2019 POE mid-term report mentions that it was investigating dozens of suspected DPRK cyber-enabled heists and that, as of late 2019, the DPRK has attempted to steal as much as 2 billion through these illicit cyber activities. Allegations in a March 2020 Department of Justice forfeiture complaint are consistent with portions of the POEs findings. Specifically, the forfeiture complaint alleged how North Korean cyber actors used North Korean infrastructure in furtherance of their conspiracy to hack digital currency exchanges, steal hundreds of millions of dollars in digital currency, and launder the funds. Extortion Campaigns. DPRK cyber actors have also conducted extortion campaigns against third-country entities by compromising an entitys network and threatening to shut it down unless the entity pays a ransom. In some instances, DPRK cyber actors have demanded payment from victims under the guise of long-term paid consulting arrangements in order to ensure that no such future malicious cyber activity takes place. DPRK cyber actors have also been paid to hack websites and extort targets for third-party clients. Cryptojacking. The 2019 POE mid-term report states that the POE is also investigating the DPRKs use of cryptojacking, a scheme to compromise a victim machine and steal its computing resources to mine digital currency. The POE has identified several incidents in which computers infected with cryptojacking malware sent the mined assets  much of it anonymity- enhanced digital currency (sometimes also referred to as privacy coins)  to servers located in the DPRK, including at Kim Il Sung University in Pyongyang. These activities highlight the DPRKs use of cyber-enabled means to generate revenue while mitigating the impact of sanctions and show that any country can be exposed to and exploited by the DPRK. According to the 2019 POE mid-term report, the POE is also investigating such activities as attempted violations of UN Security Council sanctions on the DPRK. 2 Cyber Operations Publicly Attributed to DPRK by U.S. Government The DPRK has repeatedly targeted U.S. and other government and military networks, as well as networks related to private entities and critical infrastructure, to steal data and conduct disruptive and destructive cyber activities. To date, the U.S. government has publicly attributed the following cyber incidents to DPRK state-sponsored cyber actors and co-conspirators:  Sony Pictures. In November 2014, DPRK state-sponsored cyber actors allegedly launched a cyber attack on Sony Pictures Entertainment (SPE) in retaliation for the 2014 film The Interview. DPRK cyber actors hacked into SPEs network to steal confidential data, threatened SPE executives and employees, and damaged thousands of computers. FBIs Update on Sony Investigation (Dec. 19, 2014) o https:www.fbi.govnewspressrelpress-releasesupdate-on-sony-investigation DOJs Criminal Complaint of a North Korean Regime-Backed Programmer (Sept. o 6, 2018) https:www.justice.govopaprnorth-korean-regime-backed- programmer-charged-conspiracy-conduct-multiple-cyber-attacks-and  Bangladesh Bank Heist. In February 2016, DPRK state-sponsored cyber actors allegedly attempted to steal at least 1 billion from financial institutions across the world and allegedly stole 81 million from the Bangladesh Bank through unauthorized transactions on the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. According to the complaint, DPRK cyber actors accessed the Bangladesh Banks computer terminals that interfaced with the SWIFT network after compromising the banks computer network via spear phishing emails targeting bank employees. DPRK cyber actors then sent fraudulently authenticated SWIFT messages directing the Federal Reserve Bank of New York to transfer funds out of the Bangladesh Banks Federal Reserve account to accounts controlled by the conspirators. DOJs Criminal Complaint of a North Korean Regime-Backed Programmer (Sept. o 6, 2018) https:www.justice.govopaprnorth-korean-regime-backed- programmer-charged-conspiracy-conduct-multiple-cyber-attacks-and  WannaCry 2.0. DPRK state-sponsored cyber actors developed the ransomware known as WannaCry 2.0, as well as two prior versions of the ransomware. In May 2017, WannaCry 2.0 ransomware infected hundreds of thousands of computers in hospitals, schools, businesses, and homes in over 150 countries. WannaCry 2.0 ransomware encrypts an infected computers data and allows the cyber actors to demand ransom payments in the Bitcoin digital currency. The Department of the Treasury designated one North Korean computer programmer for his part in the WannaCry 2.0 conspiracy, as well as his role in the Sony Pictures cyber attack and Bangladesh Bank heist, and additionally designated the organization he worked for. 3 CISAs Technical Alert: Indicators Associated with WannaCry Ransomware o (May 12, 2017) https:www.us-cert.govncasalertsTA17-132A White House Press Briefing on the Attribution of WannaCry Ransomware (Dec. o 19, 2017) https:www.whitehouse.govbriefings-statementspress-briefing-on- the-attribution-of-the-wannacry-malware-attack-to-north-korea-121917 DOJs Criminal Complaint of a North Korean Regime-Backed Programmer (Sept. o 6, 2018) https:www.justice.govopaprnorth-korean-regime-backed- programmer-charged-conspiracy-conduct-multiple-cyber-attacks-and Treasury Targets North Korea for Multiple Cyber-Attacks (Sept. 6, 2018) o https:home.treasury.govnewspress-releasessm473  FASTCash Campaign. Since late 2016, DPRK state-sponsored cyber actors have employed a fraudulent ATM cash withdrawal scheme known as FASTCash to steal tens of millions of dollars from ATMs in Asia and Africa. FASTCash schemes remotely compromise payment switch application servers within banks to facilitate fraudulent transactions. In one incident in 2017, DPRK cyber actors enabled the withdrawal of cash simultaneously from ATMs located in more than 30 different countries. In another incident in 2018, DPRK cyber actors enabled cash to be simultaneously withdrawn from ATMs in 23 different countries. CISAs Alert on FASTCash Campaign (Oct. 2, 2018) https:www.us- o cert.govncasalertsTA18-275A CISAs Malware Analysis Report: FASTCash-Related Malware (Oct. 2, 2018) o https:www.us-cert.govncasanalysis-reportsAR18-275A  Digital Currency Exchange Hack. As detailed in allegations set forth in a Department of Justice complaint for forfeiture in rem, in April 2018, DPRK state- sponsored cyber actors hacked into a digital currency exchange and stole nearly 250 million worth of digital currency. The complaint further described how the stolen assets were laundered through hundreds of automated digital currency transactions, to obfuscate the origins of the funds, in an attempt to prevent law enforcement from tracing the assets. Two Chinese nationals are alleged in the complaint to have subsequently laundered the assets on behalf of the North Korean group, receiving approximately 91 million from DPRK-controlled accounts, as well as an additional 9.5 million from a hack of another exchange. In March 2020, the Department of the Treasury designated the two individuals under cyber and DPRK sanctions authorities, concurrent with a Department of Justice announcement that the individuals had been previously indicted on money laundering and unlicensed money transmitting charges and that 113 digital currency accounts were subject to forfeiture. Treasurys Sanctions against Individuals Laundering Cryptocurrency for Lazarus o Group (March 2, 2020) https:home.treasury.govnewspress-releasessm924 DOJs Indictment of Two Chinese Nationals Charged with Laundering o Cryptocurrency from Exchange Hack and Civil Forfeiture Complaint (March 2, 2020) https:www.justice.govopaprtwo-chinese-nationals-charged-laundering- over-100-million-cryptocurrency-exchange-hack 4 Measures to Counter the DPRK Cyber Threat North Korea targets cyber-enabled infrastructure globally to generate revenue for its regime priorities, including its weapons of mass destruction programs. We strongly urge governments, industry, civil society, and individuals to take all relevant actions below to protect themselves from and counter the DPRK cyber threat:  Raise Awareness of the DPRK Cyber Threat. Highlighting the gravity, scope, and variety of malicious cyber activities carried out by the DPRK will raise general awareness across the public and private sectors of the threat and promote adoption and implementation of appropriate preventive and risk mitigation measures.  Share Technical Information of the DPRK Cyber Threat. Information sharing at both the national and international levels to detect and defend against the DPRK cyber threat will enable enhanced cybersecurity of networks and systems. Best practices should be shared with governments and the private sector. Under the provisions of the Cybersecurity Information Sharing Act of 2015 (6 U.S.C.  1501 1510), non-federal entities may share cyber threat indicators and defensive measures related to HIDDEN COBRA with federal and non-federal entities.  Implement and Promote Cybersecurity Best Practices. Adopting measures  both technical and behavioral  to enhance cybersecurity will make U.S. and global cyber infrastructure more secure and resilient. Financial institutions, including money services businesses, should take independent steps to protect against malicious DPRK cyber activities. Such steps may include, but are not limited to, sharing threat information through government andor industry channels, segmenting networks to minimize risks, maintaining regular backup copies of data, undertaking awareness training on common social engineering tactics, implementing policies governing information sharing and network access, and developing cyber incident response plans. The Department of Energys Cybersecurity Capability Maturity Model and the National Institute of Standards and Technologys Cybersecurity Framework provide guidance on developing and implementing robust cybersecurity practices. As shown in Annex I, the Cybersecurity and Infrastructure Security Agency (CISA) provides extensive resources, including technical alerts and malware analysis reports, to enable network defenders to identify and reduce exposure to malicious cyber activities.  Notify Law Enforcement. If an organization suspects that it has been the victim of malicious cyber activity, emanating from the DPRK or otherwise, it is critical to notify law enforcement in a timely fashion. This not only can expedite the investigation, but also, in the event of a financial crime, can increase the chances of recovering any stolen assets. U.S. law enforcement has seized millions of dollars worth of digital currency stolen by North Korean cyber actors. All types of financial institutions, including money services businesses, are encouraged to cooperate on the front end by complying with U.S. law enforcement requests for information regarding these cyber threats, and on 5 the back end by identifying forfeitable assets upon receipt of a request from U.S. law enforcement or U.S. court orders, and by cooperating with U.S. law enforcement to support the seizure of such assets.  Strengthen Anti-Money Laundering (AML)  Countering the Financing of Terrorism (CFT)  Counter-Proliferation Financing (CPF) Compliance. Countries should swiftly and effectively implement the Financial Action Task Force (FATF) standards on AMLCFTCPF. This includes ensuring financial institutions and other covered entities employ risk mitigation measures in line with the FATF standards and FATF public statements and guidance. Specifically, the FATF has called for all countries to apply countermeasures to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing risks emanating from the DPRK.1 This includes advising all financial institutions and other covered entities to give special attention to business relationships and transactions with the DPRK, including DPRK companies, financial institutions, and those acting on their behalf. In line with UN Security Council Resolution 2270 Operative Paragraph 33, Member States should close existing branches, subsidiaries, and representative offices of DPRK banks within their territories and terminate correspondent relationships with DPRK banks. Further, in June 2019, FATF amended its standards to require all countries regulate and supervise digital asset service providers, including digital currency exchanges, and mitigate against risks when engaging in digital currency transactions. Digital asset service providers should remain alert to changes in customers activities, as their business may be used to facilitate money laundering, terrorist financing, and proliferation financing. The United States is particularly concerned about platforms that provide anonymous payment and account service functionality without transaction monitoring, suspicious activity reporting, and customer due diligence, among other obligations. U.S. financial institutions, including foreign-located digital asset service providers doing business in whole or substantial part in the United States, and other covered businesses and persons should ensure that they comply with their regulatory obligations under the Bank Secrecy Act (as implemented through the Department of the Treasurys Financial Crimes Enforcement Network (FinCEN) regulations in 31 CFR Chapter X). For financial institutions, these obligations include developing and maintaining effective anti-money laundering programs that are reasonably designed to prevent the money services business from being used to facilitate money laundering and the financing of terrorist activities, as well as identifying and reporting suspicious transactions, including those conducted, affected, or facilitated by cyber events or illicit finance involving digital assets, in suspicious activity reporting to FinCEN. 1 The full FATF Call to Action on North Korea can be found here: https:wwwfatf- gafi.orgpublicationshigh-risk-and-other-monitored-jurisdictionsdocumentscall-for-action-february-2020.html. 6 International Cooperation. To counter the DPRKs malicious cyber activities, the United States regularly engages with countries around the world to raise awareness of the DPRK cyber threat by sharing information and evidence via diplomatic, military, law enforcement and judicial, network defense, and other channels. To hamper the DPRKs efforts to steal funds through cyber means and to defend against the DPRKs malicious cyber activities, the United States strongly urges countries to strengthen network defense, shutter DPRK joint ventures in third countries, and expel foreign-located North Korean information technology (IT) workers in a manner consistent with applicable international law. A 2017 UN Security Council resolution required all Member States to repatriate DPRK nationals earning income abroad, including IT workers, by December 22, 2019. The United States also seeks to enhance the capacity of foreign governments and the private sector to understand, identify, defend against, investigate, prosecute, and respond to DPRK cyber threats and participate in international efforts to help ensure the stability of cyberspace. Consequences of Engaging in Prohibited or Sanctionable Conduct Individuals and entities engaged in or supporting DPRK cyber-related activity, including processing related financial transactions, should be aware of the potential consequences of engaging in prohibited or sanctionable conduct. The Department of the Treasurys Office of Foreign Assets Control (OFAC) has the authority to impose sanctions on any person determined to have, among other things:  Engaged in significant activities undermining cybersecurity on behalf of the Government of North Korea or the Workers Party of Korea;  Operated in the information technology (IT) industry in North Korea;  Engaged in certain other malicious cyber-enabled activities; or  Engaged in at least one significant importation from or exportation to North Korea of any goods, services, or technology. Additionally, if the Secretary of the Treasury, in consultation with the Secretary of State, determines that a foreign financial institution has knowingly conducted or facilitated significant trade with North Korea, or knowingly conducted or facilitated a significant transaction on behalf of a person designated under a North Korea-related Executive Order, or under Executive Order 13382 (Weapons of Mass Destruction Proliferators and Their Supporters) for North Korea- related activity, that institution may, among other potential restrictions, lose the ability to maintain a correspondent or payable-through account in the United States. OFAC investigates apparent violations of its sanctions regulations and exercises enforcement authority, as outlined in the Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, appendix A. Persons who violate the North Korea Sanctions Regulations, 31 C.F.R. part 510, may face civil monetary penalties of up to the greater of the applicable statutory maximum penalty or twice the value of the underlying transaction. The 2019 POE mid-term report notes the DPRKs use, and attempted use, of cyber-enabled means to steal funds from banks and digital currency exchanges could violate multiple UN 7 Security Council resolutions (UNSCRs) (i.e., UNSCR 1718 operative paragraph (OP) 8(d); UNSCR 2094, OPs 8 and 11; and UNSCR 2270, OP 32). The DPRK-related UNSCRs also provide various mechanisms for encouraging compliance with DPRK-related sanctions imposed by the UN. For example, the UN Security Council 1718 Committee may impose targeted sanctions (i.e., an asset freeze and, for individuals, a travel ban) on any individual or entity who engages in a business transaction with UN-designated entities or sanctions evasion. The Department of Justice criminally prosecutes willful violations of applicable sanctions laws, such as the International Emergency Economic Powers Act, 50 U.S.C.  1701 et seq. Persons who willfully violate such laws may face up to 20 years of imprisonment, fines of up to 1 million or totaling twice the gross gain, whichever is greater, and forfeiture of all funds involved in such transactions. The Department of Justice also criminally prosecutes willful violations of the Bank Secrecy Act (BSA), 31 U.S.C.  5318 and 5322, which requires financial institutions to, among other things, maintain effective anti-money laundering programs and file certain reports with FinCEN. Persons violating the BSA may face up to 5 years imprisonment, a fine of up to 250,000, and potential forfeiture of property involved in the violations. Where appropriate, the Department of Justice will also criminally prosecute corporations and other entities that violate these statutes. The Department of Justice also works with foreign partners to share evidence in support of each others criminal investigations and prosecutions. Pursuant to 31 U.S. Code  5318(k), the Secretary of the Treasury or the Attorney General may subpoena a foreign financial institution that maintains a correspondent bank account in the United States for records stored overseas. Where the Secretary of the Treasury or Attorney General provides written notice to a U.S. financial institution that a foreign financial institutions has failed to comply with such a subpoena, the U.S. financial institution must terminate the correspondent banking relationship within ten business days. Failure to do so may subject the U.S. financial institutions to daily civil penalties. DPRK Rewards for Justice If you have information about illicit DPRK activities in cyberspace, including past or ongoing operations, providing such information through the Department of States Rewards for Justice program could make you eligible to receive an award of up to 5 million. For further details, please visit www.rewardsforjustice.net. 8 ANNEX I: USG Public Information on and Resources to Counter the DPRK Cyber Threat Office of the Director of National Intelligence Annual Worldwide Threat Assessments of the U.S. Intelligence Community. In 2019, the U.S. Intelligence Community assessed that the DPRK poses a significant cyber threat to financial institutions, remains a cyber espionage threat, and retains the ability to conduct disruptive cyber attacks. The DPRK continues to use cyber capabilities to steal from financial institutions to generate revenue. Pyongyangs cybercrime operations include attempts to steal more than 1.1 billion from financial institutions across the world  including a successful cyber heist of an estimated 81 million from Bangladesh Bank. The report can be found at https:www.dni.govfilesODNIdocuments2019-ATA-SFR--- SSCI.pdf. Cybersecurity and Infrastructure Security Agency (CISA) Technical Reports. The U.S. government refers to the malicious cyber activities by the DPRK as HIDDEN COBRA. HIDDEN COBRA reports provide technical details on the tools and infrastructure used by DPRK cyber actors. These reports enable network defenders to identify and reduce exposure to the DPRKs malicious cyber activities. CISAs website contains the latest updates on these persistent threats: https:www.us-cert.govnorthkorea. Additionally, CISA provides extensive cybersecurity and infrastructure security knowledge and practices to its stakeholders, shares that knowledge to enable better risk management, and puts it into practice to protect the nations critical functions. Below are the links to CISAs resources:  Protecting Critical Infrastructure: https:www.cisa.govprotecting-critical-infrastructure  Cyber Safety: https:www.cisa.govcyber-safety  Detection and Prevention: https:www.cisa.govdetection-and-prevention  Information Sharing: https:www.cisa.govinformation-sharing-and-awareness  CISA Insights: https:www.cisa.govinsights  Combating Cyber Crime: https:www.cisa.govcombating-cyber-crime  Cyber Essentials: https:www.cisa.govcyber-essentials  Tips: https:www.us-cert.govncastips  National Cyber Awareness System: https:www.us-cert.govncas  Industrial Control Systems Advisories: https:www.us-cert.govics  Report Incidents, Phishing, Malware, and Vulnerabilities: https:www.us-cert.govreport FBI PIN and FLASH Reports. FBI Private Industry Notifications (PIN) provide current information that will enhance the private sectors awareness of a potential cyber threat. FBI Liaison Alert System (FLASH) reports contain critical information collected by the FBI for use by specific private sector partners. They are intended to provide recipients with actionable intelligence that help cybersecurity professionals and system administrators to guard against the persistent malicious actions of cyber criminals. If you identify any suspicious activity within your enterprise or have related information, please contact FBI CYWATCH immediately. For DPRK-related cyber threat PIN or FLASH reports, contact cywatchfbi.gov.  FBI Cyber Division: https:www.fbi.govinvestigatecyber 9  FBI Legal Attach Program: The FBI Legal Attachs core mission is to establish and maintain liaison with principal law enforcement and security services in designated foreign countries. https:www.fbi.govcontact-uslegal-attache-offices U.S. Cyber Command Malware Information Release. The Department of Defenses cyber forces actively seek out DPRK malicious cyber activities, including DPRK malware that exploits financial institutions, conducts espionage, and enables malicious cyber activities against the U.S. and its partners. U.S. Cyber Command periodically releases malware information, identifying vulnerabilities for industry and government to defend their infrastructure and networks against DPRK illicit activities. Malware information to bolster cybersecurity can be found at the following Twitter accounts: USCYBERCOM and CNMFVirusAlert. U.S. Department of the Treasury Sanctions Information and Illicit Finance Advisories. The Office of Foreign Assets Controls (OFACs) online Resource Center provides a wealth of information regarding DPRK sanctions and sanctions with respect to malicious cyber-enabled activities, including sanctions advisories, relevant statutes, Executive Orders, rules, and regulations relating to DPRK and cyber-related sanctions. OFAC has also published several frequently asked questions (FAQs) relating to DPRK sanctions, cyber-related sanctions, and digital currency. For questions or concerns related to OFAC sanctions regulations and requirements, please contact OFACs Compliance Hotline at 1-800-540-6322 or OFACFeedbacktreasury.gov.  DPRK Sanctions https:www.treasury.govresource-centersanctionsProgramspagesnkorea.aspx o FAQs - https:www.treasury.govresource- o centerfaqsSanctionsPagesfaqother.aspxnk  Malicious Cyber Activities Sanctions https:www.treasury.govresource-centersanctionsProgramspagescyber.aspx o FAQs - https:www.treasury.govresource- o centerfaqsSanctionsPagesfaqother.aspxcyber FAQs on Virtual Currency - https:www.treasury.govresource- o centerfaqsSanctionsPagesfaq compliance.aspxvc faqs Financial Crimes Enforcement Network (FinCEN) has issued an advisory on North Koreas use of the international financial system (https:www.fincen.govresourcesadvisoriesfincen- advisory-fin-2017-a008). FinCEN also issued specific advisories to financial institutions with suspicious activity reporting obligations that provide guidance on when and how to report cybercrime andor digital currency-related criminal activity:  Cybercrime https:www.fincen.govresourcesadvisoriesfincen-advisory-fin-2016-a005 o  Illicit digital currency activity https:www.fincen.govresourcesadvisoriesfincen-advisory-fin-2019-a003 o  Businesses e-mail compromise https:www.fincen.govresourcesadvisoriesfincen-advisory-fin-2019-a005 o https:www.fincen.govresourcesadvisoriesfincen-advisory-fin-2016-a003 o 10 Federal Financial Institutions Examination Council (FFIEC) developed the Cybersecurity Assessment Tool to help financial institutions identify their risks and determine their cybersecurity preparedness. The assessment tool can be found at https:www.ffiec.govcyberassessmenttool.htm. 11 ANNEX II: UN Panel of Experts Reports on the DPRK Cyber Threat UN 1718 Sanctions Committee (DPRK) Panel of Experts Reports. The UN Security Council 1718 Sanctions Committee on the DPRK is supported by a Panel of Experts, who gather, examine, and analyze information from UN Member States, relevant UN bodies, and other parties on the implementation of the measures outlined in the UN Security Council Resolutions against North Korea. The Panel also makes recommendations on how to improve sanctions implementation by providing both a Midterm and a Final Report to the 1718 Committee. These reports can be found at https:www.un.orgsecuritycouncilsanctions1718panelexpertsreports. 12","CYBER-RELATED SANCTIONS PROGRAM This document is explanatory only and does not have the force of law. This document does not supplement or modify applicable Executive orders, laws, or regulations. Updated July 3, 2017 Type text Page 1 Contents I. INTRODUCTION ....................................................................... 3 II. OVERVIEW OF AUTHORITIES ............................................... 3 III. PROHIBITED TRANSACTIONS .............................................. 4 IV. AUTHORIZED TRANSACTIONS ............................................. 4 V. ENFORCEMENT  PENALTIES ............................................. 5 2 SANCTIONS AGAINST CERTAIN PERSONS ENGAGING IN SIGNIFICANT MALICIOUS CYBER-ENABLED ACTIVITIES I. INTRODUCTION The cyber-related sanctions program implemented by the Office of Foreign Assets Control (OFAC) began on April 1, 2015, when the President issued Executive Order (E.O.) 13694 and declared a national emergency to deal with the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States constituted by the increasing prevalence and severity of malicious cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States. This order authorizes, among other things, the imposition of sanctions against persons responsible for or complicit in, or to have engaged in, certain malicious cyber-enabled activities. On December 28, 2016, the President issued E.O. 13757, which amended E.O. 13694 by adding an Annex and authorizing sanctions related to interfering with or undermining election processes or institutions. II. OVERVIEW OF AUTHORITIES On April 1, 2015, the President issued E.O. 13694 pursuant to, inter alia, the International Emergency Economic Powers Act (50 U.S.C.  1701 et seq.) (IEEPA) and the National Emergencies Act (50 U.S.C.  1601 et seq.). On December 28, 2016, the President issued E.O. 13757, which amended E.O. 13694 to include an Annex of sanctioned persons and to expand the scope of cyber-enabled activities subject to sanctions. The cyber-related sanctions pursuant to E.O. 13694, as amended, block the property and interests in property of persons that are determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State:  To be responsible for or complicit in, or to have engaged in, directly or indirectly, cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States and that have the purpose or effect of: 1) harming, or otherwise significantly compromising the provision of services by, a computer or network of computers that support one or more entities in a critical infrastructure sector; 2) significantly compromising the provision of services by one or more entities in a critical infrastructure sector; 3) causing a significant disruption to the availability of a computer or network of computers; 4) causing a significant misappropriation of funds or economic resources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or private financial gain; or 5) tampering with, altering, or causing a misappropriation of information with the purpose or effect of interfering with or undermining election processes or institutions; and  To be responsible for or complicit in, or to have engaged in, the receipt or use for commercial or competitive advantage or private financial gain, or by a commercial entity, outside the United States of trade secrets misappropriated through cyber-enabled means, knowing they have been misappropriated, where the misappropriation of such trade secrets is reasonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economy of the United States; 3  To have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, certain activities described above or any person whose property and interests in property are blocked pursuant to E.O. 13694, as amended;  To be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to E.O. 13694, as amended; or  To have attempted to engage in any of the activities described in E.O. 13694, as amended. On December 31, 2015, OFAC issued an abbreviated set of regulations to implement E.O. 13694. See the Cyber- Related Sanctions Regulations, 31 C.F.R. part 578 (the Regulations), for details. OFAC intends to supplement the Regulations with a more comprehensive set of regulations, which may include additional interpretive and definitional guidance and additional general licenses and statements of licensing policy. The names of individuals and entities listed in the Annex to E.O. 13694, as amended, or designated pursuant to E.O. 13694, as amended, and whose property and interests in property are therefore blocked, are published in the Federal Register and incorporated into OFACs Specially Designated Nationals and Blocked Persons List (SDN List) with the identifier CYBER. The SDN List and Treasurys other sanctions lists are available on OFACs website at www.treasury.govsdn. This fact sheet is a broad summary of the sanctions as of the date of publication. For an updated list of authorities and sanctions please refer to the Cyber-related Sanctions page on OFACs website at: www.treasury.govresource-centersanctionsProgramspagescyber.aspx. III. PROHIBITED TRANSACTIONS Unless otherwise authorized or exempt, transactions by U.S. persons, or in or involving the United States, are prohibited if they involve transferring, paying, exporting, withdrawing, or otherwise dealing in the property or interests in property of an entity or individual listed on the SDN List. The property and interests in property of an entity that is 50 percent or more directly or indirectly owned, whether individually or in the aggregate, by one or more blocked persons are also blocked, regardless of whether the entity itself is listed or identified on the SDN List. For details please see: www.treasury.govresource-centersanctionsDocumentslicensingguidance.pdf. IV. AUTHORIZED TRANSACTIONS GENERAL LICENSES OFAC may authorize certain types or categories of activities and transactions that would otherwise be prohibited with respect to cyber-related sanctions by issuing a general license. General licenses may be published in the Regulations or on OFACs website. For example:  Section 578.506 of the Regulations authorizes the provision of certain legal services to or on behalf of persons whose property and interests in property are blocked pursuant to section 578.201 of the Regulations, provided that the receipt of payment of professional fees and reimbursement of incurred expenses must be specifically licensed, authorized pursuant to section 578.507 of the Regulations, which authorizes certain payments for legal services from funds originating outside the United States, or otherwise authorized.  On February 2, 2017, OFAC issued General License No. 1 authorizing certain transactions with Russias Federal Security Service (a.k.a. FSB) that are necessary and ordinarily incident to requesting, utilizing, paying for, or dealing in certain licenses and authorizations for the importation, distribution, or use of certain information technology products in the Russian Federation, subject to certain limitations described in the General License, as well as transactions necessary and ordinarily incident to compliance with rules and regulations administered by, and certain actions or investigations involving, the FSB. 4 For a current list of all general licenses relating to the cyber-related sanctions program, please see subpart E of the Regulations and visit: www.treasury.govresource-centersanctionsProgramsPagescyber.aspx. SPECIFIC LICENSES On a case-by-case basis, OFAC considers applications for specific licenses to authorize transactions that are neither exempt nor authorized by a general license. Requests for a specific license must be submitted to OFACs Licensing Division. Specific license requests may be submitted using either of the following methods:  Online: www.treasury.govresource-centersanctionsPageslicensing.aspx; or  Mail: Assistant Director for Licensing, Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, N.W., Freedmans Bank Building, Washington, DC 20220. V. ENFORCEMENT  PENALTIES OFAC uses the Economic Sanctions Enforcement Guidelines, 31 C.F.R. part 501, app. A (the Guidelines), in determining the appropriate enforcement response to apparent violations of U.S. economic sanctions programs that OFAC administers and enforces. For more information about OFACs enforcement process, please review the Guidelines here. Civil monetary penalties of up to the greater of 250,000 (289,238 as of January 15, 2017 for violations occurring after November 2, 2015) or twice the amount of the underlying transaction may be imposed administratively against any person who violates, attempts to violate, conspires to violate, or causes a violation of any license, order, regulation or prohibition issued under IEEPA. Upon conviction, criminal penalties of up to 1,000,000, imprisonment for up to 20 years, or both, may be imposed on any person who willfully commits, willfully attempts to commit, or willfully conspires to commit, or aids or abets in the commission of a violation of any license, order, regulation, or prohibition issued under IEEPA. This document is explanatory only and does not have the force of law. E.O. 13694, as amended and the Regulations contain the relevant legally binding provisions governing the sanctions. This document does not supplement or modify the Executive orders, the Regulations, or any other applicable laws. GENERAL SANCTIONS INFORMATION OFAC administers a number of U.S. economic sanctions programs. OFAC sanctions programs can range from being comprehensive in nature, such as a program that blocks the entire government of a country and includes broad geographically-based trade restrictions, to being fairly limited, such as a program that targets only specific individuals and entities. Some programs both target particular individuals and entities and prohibit types of transactions. It is therefore important to review the details of any given sanctions program to understand its scope. It is also important to note that although a program may be targeted, the prohibitions in such programs on dealings with individuals and entities whose property and interests in property are blocked are very broad, and they apply regardless of where the targeted person is located. The names of individuals and entities that are designated or identified as blocked by OFAC are incorporated into OFACs SDN List. Note, however, that the SDN List is not a comprehensive list of all entities and individuals whose property and interests in property are blocked. For example, the property and interests in property of an entity that is 50 percent or more directly or indirectly owned, whether individually or in the aggregate, by one or more blocked persons are also blocked, regardless of whether the entity itself is listed on the SDN List. Note also that, in certain programs, blocking of the property and interests in property of a Government extends to entities owned or controlled by that Government, whether or not they are identified on the SDN List. Please note that OFAC maintains other sanctions lists that may have different prohibitions associated with them. See the Sanctions Programs and Country Information page for information on specific programs and other Treasury sanctions lists at: www.treasury.govresource-centersanctionsSDN-ListPagesOther-OFAC-Sanctions-Lists.aspx Because OFACs programs are constantly changing, it is very important to check OFACs website on a regular basis. You may also wish to sign up for updates via OFACs Email Notification System to receive notifications regarding 5 changes to OFACs sanctions programs. For additional information about these programs or about sanctions involving cyber-related matters, please contact: OFFICE OF FOREIGN ASSETS CONTROL U.S. Department of the Treasury 1500 Pennsylvania Avenue, N.W. Freedmans Bank Building Washington, DC 20220 www.treasury.govofac (202) 622-2490 6","DEPARTMENT OF THE TREASURY WASHINGTON, D.C. 20220 January 12, 2017 GUIDANCE ON THE PROVISION OF CERTAIN SERVICES RELATING TO THE REQUIREMENTS OF U.S. SANCTIONS LAWS This guidance document (the ""Compliance Services Guidance"") responds to numerous inquiries received by the Department of the Treasury's Office of Foreign Assets Control (OFAC), many from foreign companies at outreach events, relating to whether U.S. persons, including U.S. attorneys and compliance personnel, may provide certain services to covered persons relating to the requirements of U.S. sanctions laws. For purposes of this Compliance Services Guidance, ""covered persons"" means U.S. persons and foreign persons other than any person (i) whose property and interests in property are blocked pursuant to any part of 31 C.F .R. chapter V, including persons listed on OFAC's List of Specially Designated Nationals and Blocked Persons, or (ii) to whom a U.S. person is prohibited from exporting services or from whom a U.S. person is prohibited from importing services pursuant to any part of 31 C.F.R. chapter V. This Compliance Services Guidance does not reflect a change in OF AC's policy with respect to the provision of these types of legal and compliance services. OF AC is issuing this Compliance Services Guidance to ensure that both U.S. and foreign individuals and entities understand that U.S. persons may provide services consistent with it. This Compliance Services Guidance applies to the provision of services to covered persons by U.S. persons regardless of whether the U.S. person is self-employed, employed by a U.S. entity, or employed by a non-U.S. entity, and regardless of whether the U.S. person is considered ""in house"" personnel or is an external attorney, consultant, or other person providing such services. U.S. persons have been able to provide, and may continue to provide, the services below relating to the requirements of U.S. sanctions laws to covered persons:  Providing information or guidance regarding the requirements of U.S. sanctions laws administered by OF AC, including statutes, regulations, and Executive orders. For example, a U.S. person may present on the topic of U.S. sanctions laws in a non sanctioned third country, and a U.S. person compliance officer working at a covered person entity may advise covered person employees and covered person business partners on the requirements of U.S. sanctions laws.  Opining on the legality of specific transactions under U.S. sanctions laws regardless of whether it would be prohibited for a U.S. person to engage in those transactions. U.S. persons may solicit information from covered persons and conduct research to make a determination as to the legality of transactions under U.S. sanctions laws provided there is no importation of services where the importation of services is prohibited by any part of 31 C .F .R. chapter V. This Compliance Services Guidance does not describe every allowable service relating to the requirements of U.S. sanctions laws. U.S. persons, wherever located, may not otherwise approve, finance, facilitate, or guarantee any transaction by a foreign person, including one that meets the definition of a covered person, as defined above, where the transaction by that foreign person would be prohibited by 31 C.F.R. chapter V if performed by a U.S. person or within the United States. In addition, U.S. persons, wherever located, may not otherwise engage in an exportation of services where such services are prohibited by any part of 31 C.F.R. chapter V.","Federal RegisterVol. 80, No. 63Thursday, April 2, 2015Presidential Documents 18077 Presidential Documents Executive Order 13694 of April 1, 2015 Blocking the Property of Certain Persons Engaging in Signifi- cant Malicious Cyber-Enabled Activities 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 Emer- gencies Act (50 U.S.C. 1601 et seq.) (NEA), section 212(f) of the Immigration and Nationality Act of 1952 (8 U.S.C. 1182(f)), and section 301 of title 3, United States Code, I, BARACK OBAMA, President of the United States of America, find that the increasing prevalence and severity of malicious cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States. I hereby declare a national emergency to deal with this threat. Accordingly, I hereby order: Section 1. (a) 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 the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: (i) any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, to be responsible for or complicit in, or to have engaged in, directly or indirectly, cyber- enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States and that have the purpose or effect of: (A) harming, or otherwise significantly compromising the provision of services by, a computer or network of computers that support one or more entities in a critical infrastructure sector; (B) significantly compromising the provision of services by one or more entities in a critical infrastructure sector; (C) causing a significant disruption to the availability of a computer or network of computers; or (D) causing a significant misappropriation of funds or economic re- sources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or private financial gain; or (ii) any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State: (A) to be responsible for or complicit in, or to have engaged in, the receipt or use for commercial or competitive advantage or private financial gain, or by a commercial entity, outside the United States of trade secrets misappropriated through cyber-enabled means, knowing they have been misappropriated, where the misappropriation of such trade secrets is rea- sonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economic health or finan- cial stability of the United States; VerDate Sep112014 21:25 Apr 01, 2015 Jkt 235001 PO 00000 Frm 00001 Fmt 4790 Sfmt 4790 E:FRFM02APE0.SGM 02APE0 0E htiw DORP1NVTPS3KSD no yellekt 18078 Federal RegisterVol. 80, No. 63Thursday, April 2, 2015Presidential Documents (B) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, any activity described in subsections (a)(i) or (a)(ii)(A) of this section or any person whose property and interests in property are blocked pursuant to this order; (C) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order; or (D) to have attempted to engage in any of the activities described in subsections (a)(i) and (a)(ii)(A)(C) of this section. (b) The prohibitions in subsection (a) of this section 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 effective date of this order. Sec. 2. I hereby determine that the making of donations of the type 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 section 1 of 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 1 of this order. Sec. 3. The prohibitions in section 1 of this order include but are not limited to: (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. 4. I hereby find that the unrestricted immigrant and nonimmigrant entry into the United States of aliens determined to meet one or more of the criteria in section 1(a) of this order would be detrimental to the interests of the United States, and I hereby suspend entry into the United States, as immigrants or nonimmigrants, of such persons. Such persons shall be treated 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. (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 prohibi- tions 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. 6. For the purposes of this order: (a) the term person means an individual or entity; (b) the term entity means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization; (c) the term United States person means any United States citizen, permanent resident alien, 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; (d) the term critical infrastructure sector means any of the designated critical infrastructure sectors identified in Presidential Policy Directive 21; and (e) the term misappropriation includes any taking or obtaining by im- proper means, without permission or consent, or under false pretenses. Sec. 7. For those persons whose property and interests in property are blocked pursuant to this order who might have a constitutional presence VerDate Sep112014 21:25 Apr 01, 2015 Jkt 235001 PO 00000 Frm 00002 Fmt 4790 Sfmt 4790 E:FRFM02APE0.SGM 02APE0 0E htiw DORP1NVTPS3KSD no yellekt Federal RegisterVol. 80, No. 63Thursday, April 2, 2015Presidential Documents 18079 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 these 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 section 1 of this order. Sec. 8. The Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA as may be necessary to carry out the purposes of this order. The Secretary of the Treasury may redelegate any of these functions to other officers and agencies of the United States Government consistent with applicable law. All agencies of the United States Government are hereby directed to take all appropriate measures within their authority to carry out the provisions of this order. Sec. 9. The Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, is hereby authorized to submit the recurring and final reports to the Congress on the national emergency de- clared 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. 10. 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. THE WHITE HOUSE, April 1, 2015. FR Doc. 201507788 Filed 4115; 11:15 am Billing code 3295F5 VerDate Sep112014 21:25 Apr 01, 2015 Jkt 235001 PO 00000 Frm 00003 Fmt 4790 Sfmt 4790 E:FRFM02APE0.SGM 02APE0 0E htiw DORP1NVTPS3KSD no yellekt HPGSPE.1BO","14143 Presidential Documents Federal Register Vol. 87, No. 49 Monday, March 14, 2022 Title 3 Executive Order 14067 of March 9, 2022 The President Ensuring Responsible Development of Digital Assets By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1. Policy. Advances in digital and distributed ledger technology for financial services have led to dramatic growth in markets for digital assets, with profound implications for the protection of consumers, investors, and businesses, including data privacy and security; financial stability and systemic risk; crime; national security; the ability to exercise human rights; financial inclusion and equity; and energy demand and climate change. In November 2021, nonstate issued digital assets reached a combined market capitalization of 3 trillion, up from approximately 14 billion in early November 2016. Monetary authorities globally are also exploring, and in some cases introducing, central bank digital currencies (CBDCs). While many activities involving digital assets are within the scope of existing domestic laws and regulations, an area where the United States has been a global leader, growing development and adoption of digital assets and related innovations, as well as inconsistent controls to defend against certain key risks, necessitate an evolution and alignment of the United States Govern- ment approach to digital assets. The United States has an interest in respon- sible financial innovation, expanding access to safe and affordable financial services, and reducing the cost of domestic and cross-border funds transfers and payments, including through the continued modernization of public payment systems. We must take strong steps to reduce the risks that digital assets could pose to consumers, investors, and business protections; financial stability and financial system integrity; combating and preventing crime and illicit finance; national security; the ability to exercise human rights; financial inclusion and equity; and climate change and pollution. Sec. 2. Objectives. The principal policy objectives of the United States with respect to digital assets are as follows: (a) We must protect consumers, investors, and businesses in the United States. The unique and varied features of digital assets can pose significant financial risks to consumers, investors, and businesses if appropriate protec- tions are not in place. In the absence of sufficient oversight and standards, firms providing digital asset services may provide inadequate protections for sensitive financial data, custodial and other arrangements relating to customer assets and funds, or disclosures of risks associated with investment. Cybersecurity and market failures at major digital asset exchanges and trading platforms have resulted in billions of dollars in losses. The United States should ensure that safeguards are in place and promote the responsible development of digital assets to protect consumers, investors, and businesses; maintain privacy; and shield against arbitrary or unlawful surveillance, which can contribute to human rights abuses. (b) We must protect United States and global financial stability and mitigate systemic risk. Some digital asset trading platforms and service providers have grown rapidly in size and complexity and may not be subject to or in compliance with appropriate regulations or supervision. Digital asset issuers, exchanges and trading platforms, and intermediaries whose activities may increase risks to financial stability, should, as appropriate, be subject to and in compliance with regulatory and supervisory standards that govern traditional market infrastructures and financial firms, in line with the general VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00001 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj 14144 Federal RegisterVol. 87, No. 49Monday, March 14, 2022Presidential Documents principle of same business, same risks, same rules. The new and unique uses and functions that digital assets can facilitate may create additional economic and financial risks requiring an evolution to a regulatory approach that adequately addresses those risks. (c) We must mitigate the illicit finance and national security risks posed by misuse of digital assets. Digital assets may pose significant illicit finance risks, including money laundering, cybercrime and ransomware, narcotics and human trafficking, and terrorism and proliferation financing. Digital assets may also be used as a tool to circumvent United States and foreign financial sanctions regimes and other tools and authorities. Further, while the United States has been a leader in setting international standards for the regulation and supervision of digital assets for antimoney laundering and countering the financing of terrorism (AMLCFT), poor or nonexistent implementation of those standards in some jurisdictions abroad can present significant illicit financing risks for the United States and global financial systems. Illicit actors, including the perpetrators of ransomware incidents and other cybercrime, often launder and cash out of their illicit proceeds using digital asset service providers in jurisdictions that have not yet effec- tively implemented the international standards set by the inter-governmental Financial Action Task Force (FATF). The continued availability of service providers in jurisdictions where international AMLCFT standards are not effectively implemented enables financial activity without illicit finance con- trols. Growth in decentralized financial ecosystems, peer-to-peer payment activity, and obscured blockchain ledgers without controls to mitigate illicit finance could also present additional market and national security risks in the future. The United States must ensure appropriate controls and ac- countability for current and future digital assets systems to promote high standards for transparency, privacy, and securityincluding through regu- latory, governance, and technological measuresthat counter illicit activities and preserve or enhance the efficacy of our national security tools. When digital assets are abused or used in illicit ways, or undermine national security, it is in the national interest to take actions to mitigate these illicit finance and national security risks through regulation, oversight, law enforce- ment action, or use of other United States Government authorities. (d) We must reinforce United States leadership in the global financial system and in technological and economic competitiveness, including through the responsible development of payment innovations and digital assets. The United States has an interest in ensuring that it remains at the forefront of responsible development and design of digital assets and the technology that underpins new forms of payments and capital flows in the international financial system, particularly in setting standards that promote: democratic values; the rule of law; privacy; the protection of con- sumers, investors, and businesses; and interoperability with digital platforms, legacy architecture, and international payment systems. The United States derives significant economic and national security benefits from the central role that the United States dollar and United States financial institutions and markets play in the global financial system. Continued United States leadership in the global financial system will sustain United States financial power and promote United States economic interests. (e) We must promote access to safe and affordable financial services. Many Americans are underbanked and the costs of cross-border money transfers and payments are high. The United States has a strong interest in promoting responsible innovation that expands equitable access to finan- cial services, particularly for those Americans underserved by the traditional banking system, including by making investments and domestic and cross- border funds transfers and payments cheaper, faster, and safer, and by pro- moting greater and more cost-efficient access to financial products and serv- ices. The United States also has an interest in ensuring that the benefits of financial innovation are enjoyed equitably by all Americans and that any disparate impacts of financial innovation are mitigated. VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00002 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 49Monday, March 14, 2022Presidential Documents 14145 (f) We must support technological advances that promote responsible devel- opment and use of digital assets. The technological architecture of different digital assets has substantial implications for privacy, national security, the operational security and resilience of financial systems, climate change, the ability to exercise human rights, and other national goals. The United States has an interest in ensuring that digital asset technologies and the digital payments ecosystem are developed, designed, and implemented in a responsible manner that includes privacy and security in their architecture, integrates features and controls that defend against illicit exploitation, and reduces negative climate impacts and environmental pollution, as may result from some cryptocurrency mining. Sec. 3. Coordination. The Assistant to the President for National Security Affairs (APNSA) and the Assistant to the President for Economic Policy (APEP) shall coordinate, through the interagency process described in Na- tional Security Memorandum 2 of February 4, 2021 (Renewing the National Security Council System), the executive branch actions necessary to imple- ment this order. The interagency process shall include, as appropriate: the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the Attorney General, the Secretary of Commerce, the Secretary of Labor, the Secretary of Energy, the Secretary of Homeland Security, the Adminis- trator of the Environmental Protection Agency, the Director of the Office of Management and Budget, the Director of National Intelligence, the Director of the Domestic Policy Council, the Chair of the Council of Economic Advis- ers, the Director of the Office of Science and Technology Policy, the Adminis- trator of the Office of Information and Regulatory Affairs, the Director of the National Science Foundation, and the Administrator of the United States Agency for International Development. Representatives of other executive departments and agencies (agencies) and other senior officials may be invited to attend interagency meetings as appropriate, including, with due respect for their regulatory independence, representatives of the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and other Federal regulatory agencies. Sec. 4. Policy and Actions Related to United States Central Bank Digital Currencies. (a) The policy of my Administration on a United States CBDC is as follows: (i) Sovereign money is at the core of a well-functioning financial system, macroeconomic stabilization policies, and economic growth. My Adminis- tration places the highest urgency on research and development efforts into the potential design and deployment options of a United States CBDC. These efforts should include assessments of possible benefits and risks for consumers, investors, and businesses; financial stability and systemic risk; payment systems; national security; the ability to exercise human rights; financial inclusion and equity; and the actions required to launch a United States CBDC if doing so is deemed to be in the national interest. (ii) My Administration sees merit in showcasing United States leadership and participation in international fora related to CBDCs and in multi- country conversations and pilot projects involving CBDCs. Any future dollar payment system should be designed in a way that is consistent with United States priorities (as outlined in section 4(a)(i) of this order) and democratic values, including privacy protections, and that ensures the global financial system has appropriate transparency, connectivity, and platform and architecture interoperability or transferability, as appro- priate. (iii) A United States CBDC may have the potential to support efficient and low-cost transactions, particularly for cross-border funds transfers and payments, and to foster greater access to the financial system, with fewer of the risks posed by private sector-administered digital assets. A United States CBDC that is interoperable with CBDCs issued by other monetary VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00003 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj 14146 Federal RegisterVol. 87, No. 49Monday, March 14, 2022Presidential Documents authorities could facilitate faster and lower-cost cross-border payments and potentially boost economic growth, support the continued centrality of the United States within the international financial system, and help to protect the unique role that the dollar plays in global finance. There are also, however, potential risks and downsides to consider. We should prioritize timely assessments of potential benefits and risks under various designs to ensure that the United States remains a leader in the inter- national financial system. (b) Within 180 days of the date of this order, the Secretary of the Treasury, in consultation with the Secretary of State, the Attorney General, the Sec- retary of Commerce, the Secretary of Homeland Security, the Director of the Office of Management and Budget, the Director of National Intelligence, and the heads of other relevant agencies, shall submit to the President a report on the future of money and payment systems, including the condi- tions that drive broad adoption of digital assets; the extent to which techno- logical innovation may influence these outcomes; and the implications for the United States financial system, the modernization of and changes to payment systems, economic growth, financial inclusion, and national secu- rity. This report shall be coordinated through the interagency process de- scribed in section 3 of this order. Based on the potential United States CBDC design options, this report shall include an analysis of: (i) the potential implications of a United States CBDC, based on the possible design choices, for national interests, including implications for economic growth and stability; (ii) the potential implications a United States CBDC might have on financial inclusion; (iii) the potential relationship between a CBDC and private sector-adminis- tered digital assets; (iv) the future of sovereign and privately produced money globally and implications for our financial system and democracy; (v) the extent to which foreign CBDCs could displace existing currencies and alter the payment system in ways that could undermine United States financial centrality; (vi) the potential implications for national security and financial crime, including an analysis of illicit financing risks, sanctions risks, other law enforcement and national security interests, and implications for human rights; and (vii) an assessment of the effects that the growth of foreign CBDCs may have on United States interests generally. (c) The Chairman of the Board of Governors of the Federal Reserve System (Chairman of the Federal Reserve) is encouraged to continue to research and report on the extent to which CBDCs could improve the efficiency and reduce the costs of existing and future payments systems, to continue to assess the optimal form of a United States CBDC, and to develop a strategic plan for Federal Reserve and broader United States Government action, as appropriate, that evaluates the necessary steps and requirements for the potential implementation and launch of a United States CBDC. The Chairman of the Federal Reserve is also encouraged to evaluate the extent to which a United States CBDC, based on the potential design options, could enhance or impede the ability of monetary policy to function effectively as a critical macroeconomic stabilization tool. (d) The Attorney General, in consultation with the Secretary of the Treasury and the Chairman of the Federal Reserve, shall: (i) within 180 days of the date of this order, provide to the President through the APNSA and APEP an assessment of whether legislative changes would be necessary to issue a United States CBDC, should it be deemed appropriate and in the national interest; and VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00004 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 49Monday, March 14, 2022Presidential Documents 14147 (ii) within 210 days of the date of this order, provide to the President through the APNSA and the APEP a corresponding legislative proposal, based on consideration of the report submitted by the Secretary of the Treasury under section 4(b) of this order and any materials developed by the Chairman of the Federal Reserve consistent with section 4(c) of this order. Sec. 5. Measures to Protect Consumers, Investors, and Businesses. (a) The increased use of digital assets and digital asset exchanges and trading plat- forms may increase the risks of crimes such as fraud and theft, other statutory and regulatory violations, privacy and data breaches, unfair and abusive acts or practices, and other cyber incidents faced by consumers, investors, and businesses. The rise in use of digital assets, and differences across communities, may also present disparate financial risk to less informed market participants or exacerbate inequities. It is critical to ensure that digital assets do not pose undue risks to consumers, investors, or businesses, and to put in place protections as a part of efforts to expand access to safe and affordable financial services. (b) Consistent with the goals stated in section 5(a) of this order: (i) Within 180 days of the date of this order, the Secretary of the Treasury, in consultation with the Secretary of Labor and the heads of other relevant agencies, including, as appropriate, the heads of independent regulatory agencies such as the FTC, the SEC, the CFTC, Federal banking agencies, and the CFPB, shall submit to the President a report, or section of the report required by section 4 of this order, on the implications of develop- ments and adoption of digital assets and changes in financial market and payment system infrastructures for United States consumers, investors, businesses, and for equitable economic growth. One section of the report shall address the conditions that would drive mass adoption of different types of digital assets and the risks and opportunities such growth might present to United States consumers, investors, and businesses, including a focus on how technological innovation may impact these efforts and with an eye toward those most vulnerable to disparate impacts. The report shall also include policy recommendations, including potential regulatory and legislative actions, as appropriate, to protect United States consumers, investors, and businesses, and support expanding access to safe and afford- able financial services. The report shall be coordinated through the inter- agency process described in section 3 of this order. (ii) Within 180 days of the date of this order, the Director of the Office of Science and Technology Policy and the Chief Technology Officer of the United States, in consultation with the Secretary of the Treasury, the Chairman of the Federal Reserve, and the heads of other relevant agencies, shall submit to the President a technical evaluation of the techno- logical infrastructure, capacity, and expertise that would be necessary at relevant agencies to facilitate and support the introduction of a CBDC system should one be proposed. The evaluation should specifically address the technical risks of the various designs, including with respect to emerg- ing and future technological developments, such as quantum computing. The evaluation should also include any reflections or recommendations on how the inclusion of digital assets in Federal processes may affect the work of the United States Government and the provision of Government services, including risks and benefits to cybersecurity, customer experience, and social-safety-net programs. The evaluation shall be coordinated through the interagency process described in section 3 of this order. (iii) Within 180 days of the date of this order, the Attorney General, in consultation with the Secretary of the Treasury and the Secretary of Homeland Security, shall submit to the President a report on the role of law enforcement agencies in detecting, investigating, and prosecuting criminal activity related to digital assets. The report shall include any recommendations on regulatory or legislative actions, as appropriate. VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00005 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj 14148 Federal RegisterVol. 87, No. 49Monday, March 14, 2022Presidential Documents (iv) The Attorney General, the Chair of the FTC, and the Director of the CFPB are each encouraged to consider what, if any, effects the growth of digital assets could have on competition policy. (v) The Chair of the FTC and the Director of the CFPB are each encouraged to consider the extent to which privacy or consumer protection measures within their respective jurisdictions may be used to protect users of digital assets and whether additional measures may be needed. (vi) The Chair of the SEC, the Chairman of the CFTC, the Chairman of the Federal Reserve, the Chairperson of the Board of Directors of the Federal Deposit Insurance Corporation, and the Comptroller of the Currency are each encouraged to consider the extent to which investor and market protection measures within their respective jurisdictions may be used to address the risks of digital assets and whether additional measures may be needed. (vii) Within 180 days of the date of this order, the Director of the Office of Science and Technology Policy, in consultation with the Secretary of the Treasury, the Secretary of Energy, the Administrator of the Environ- mental Protection Agency, the Chair of the Council of Economic Advisers, the Assistant to the President and National Climate Advisor, and the heads of other relevant agencies, shall submit a report to the President on the connections between distributed ledger technology and short-, me- dium-, and long-term economic and energy transitions; the potential for these technologies to impede or advance efforts to tackle climate change at home and abroad; and the impacts these technologies have on the environment. This report shall be coordinated through the interagency process described in section 3 of this order. The report should also address the effect of cryptocurrencies consensus mechanisms on energy usage, including research into potential mitigating measures and alternative mech- anisms of consensus and the design tradeoffs those may entail. The report should specifically address: (A) potential uses of blockchain that could support monitoring or miti- gating technologies to climate impacts, such as exchanging of liabilities for greenhouse gas emissions, water, and other natural or environmental assets; and (B) implications for energy policy, including as it relates to grid manage- ment and reliability, energy efficiency incentives and standards, and sources of energy supply. (viii) Within 1 year of submission of the report described in section 5(b)(vii) of this order, the Director of the Office of Science and Technology Policy, in consultation with the Secretary of the Treasury, the Secretary of Energy, the Administrator of the Environmental Protection Agency, the Chair of the Council of Economic Advisers, and the heads of other relevant agencies, shall update the report described in section 5(b)(vii) of this order, including to address any knowledge gaps identified in such report. Sec. 6. Actions to Promote Financial Stability, Mitigate Systemic Risk, and Strengthen Market Integrity. (a) Financial regulatorsincluding the SEC, the CFTC, and the CFPB and Federal banking agenciesplay critical roles in establishing and overseeing protections across the financial system that safeguard its integrity and promote its stability. Since 2017, the Secretary of the Treasury has convened the Financial Stability Oversight Council (FSOC) to assess the financial stability risks and regulatory gaps posed by the ongoing adoption of digital assets. The United States must assess and take steps to address risks that digital assets pose to financial stability and financial market integrity. (b) Within 210 days of the date of this order, the Secretary of the Treasury should convene the FSOC and produce a report outlining the specific finan- cial stability risks and regulatory gaps posed by various types of digital assets and providing recommendations to address such risks. As the Secretary VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00006 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 49Monday, March 14, 2022Presidential Documents 14149 of the Treasury and the FSOC deem appropriate, the report should consider the particular features of various types of digital assets and include rec- ommendations that address the identified financial stability risks posed by these digital assets, including any proposals for additional or adjusted regula- tion and supervision as well as for new legislation. The report should take account of the prior analyses and assessments of the FSOC, agencies, and the Presidents Working Group on Financial Markets, including the ongoing work of the Federal banking agencies, as appropriate. Sec. 7. Actions to Limit Illicit Finance and Associated National Security Risks. (a) Digital assets have facilitated sophisticated cybercrime-related finan- cial networks and activity, including through ransomware activity. The grow- ing use of digital assets in financial activity heightens risks of crimes such as money laundering, terrorist and proliferation financing, fraud and theft schemes, and corruption. These illicit activities highlight the need for ongoing scrutiny of the use of digital assets, the extent to which technological innova- tion may impact such activities, and exploration of opportunities to mitigate these risks through regulation, supervision, public-private engagement, over- sight, and law enforcement. (b) Within 90 days of submission to the Congress of the National Strategy for Combating Terrorist and Other Illicit Financing, the Secretary of the Treasury, the Secretary of State, the Attorney General, the Secretary of Commerce, the Secretary of Homeland Security, the Director of the Office of Management and Budget, the Director of National Intelligence, and the heads of other relevant agencies may each submit to the President supple- mental annexes, which may be classified or unclassified, to the Strategy offering additional views on illicit finance risks posed by digital assets, including cryptocurrencies, stablecoins, CBDCs, and trends in the use of digital assets by illicit actors. (c) Within 120 days of submission to the Congress of the National Strategy for Combating Terrorist and Other Illicit Financing, the Secretary of the Treasury, in consultation with the Secretary of State, the Attorney General, the Secretary of Commerce, the Secretary of Homeland Security, the Director of the Office of Management and Budget, the Director of National Intelligence, and the heads of other relevant agencies shall develop a coordinated action plan based on the Strategys conclusions for mitigating the digital-asset- related illicit finance and national security risks addressed in the updated strategy. This action plan shall be coordinated through the interagency proc- ess described in section 3 of this order. The action plan shall address the role of law enforcement and measures to increase financial services providers compliance with AMLCFT obligations related to digital asset activities. (d) Within 120 days following completion of all of the following reports the National Money Laundering Risk Assessment; the National Terrorist Financing Risk Assessment; the National Proliferation Financing Risk Assess- ment; and the updated National Strategy for Combating Terrorist and Other Illicit Financingthe Secretary of the Treasury shall notify the relevant agencies through the interagency process described in section 3 of this order on any pending, proposed, or prospective rulemakings to address digital asset illicit finance risks. The Secretary of the Treasury shall consult with and consider the perspectives of relevant agencies in evaluating opportu- nities to mitigate such risks through regulation. Sec. 8. Policy and Actions Related to Fostering International Cooperation and United States Competitiveness. (a) The policy of my Administration on fostering international cooperation and United States competitiveness with respect to digital assets and financial innovation is as follows: (i) Technology-driven financial innovation is frequently cross-border and therefore requires international cooperation among public authorities. This cooperation is critical to maintaining high regulatory standards and a level playing field. Uneven regulation, supervision, and compliance across jurisdictions creates opportunities for arbitrage and raises risks to financial VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00007 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj 14150 Federal RegisterVol. 87, No. 49Monday, March 14, 2022Presidential Documents stability and the protection of consumers, investors, businesses, and mar- kets. Inadequate AMLCFT regulation, supervision, and enforcement by other countries challenges the ability of the United States to investigate illicit digital asset transaction flows that frequently jump overseas, as is often the case in ransomware payments and other cybercrime-related money laundering. There must also be cooperation to reduce inefficiencies in international funds transfer and payment systems. (ii) The United States Government has been active in international fora and through bilateral partnerships on many of these issues and has a robust agenda to continue this work in the coming years. While the United States held the position of President of the FATF, the United States led the group in developing and adopting the first international standards on digital assets. The United States must continue to work with international partners on standards for the development and appro- priate interoperability of digital payment architectures and CBDCs to reduce payment inefficiencies and ensure that any new funds transfer and payment systems are consistent with United States values and legal requirements. (iii) While the United States held the position of President of the 2020 G7, the United States established the G7 Digital Payments Experts Group to discuss CBDCs, stablecoins, and other digital payment issues. The G7 report outlining a set of policy principles for CBDCs is an important contribution to establishing guidelines for jurisdictions for the exploration and potential development of CBDCs. While a CBDC would be issued by a countrys central bank, the supporting infrastructure could involve both public and private participants. The G7 report highlighted that any CBDC should be grounded in the G7s long-standing public commitments to transparency, the rule of law, and sound economic governance, as well as the promotion of competition and innovation. (iv) The United States continues to support the G20 roadmap for addressing challenges and frictions with cross-border funds transfers and payments for which work is underway, including work on improvements to existing systems for cross-border funds transfers and payments, the international dimensions of CBDC designs, and the potential of well-regulated stablecoin arrangements. The international Financial Stability Board (FSB), together with standard-setting bodies, is leading work on issues related to stablecoins, cross-border funds transfers and payments, and other inter- national dimensions of digital assets and payments, while FATF continues its leadership in setting AMLCFT standards for digital assets. Such inter- national work should continue to address the full spectrum of issues and challenges raised by digital assets, including financial stability, con- sumer, investor, and business risks, and money laundering, terrorist financ- ing, proliferation financing, sanctions evasion, and other illicit activities. (v) My Administration will elevate the importance of these topics and expand engagement with our critical international partners, including through fora such as the G7, G20, FATF, and FSB. My Administration will support the ongoing international work and, where appropriate, push for additional work to drive development and implementation of holistic standards, cooperation and coordination, and information sharing. With respect to digital assets, my Administration will seek to ensure that our core democratic values are respected; consumers, investors, and businesses are protected; appropriate global financial system connectivity and platform and architecture interoperability are preserved; and the safety and sound- ness of the global financial system and international monetary system are maintained. (b) In furtherance of the policy stated in section 8(a) of this order: (i) Within 120 days of the date of this order, the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, the Administrator of the United States Agency for International Develop- ment, and the heads of other relevant agencies, shall establish a framework for interagency international engagement with foreign counterparts and VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00008 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 49Monday, March 14, 2022Presidential Documents 14151 in international fora to, as appropriate, adapt, update, and enhance adop- tion of global principles and standards for how digital assets are used and transacted, and to promote development of digital asset and CBDC technologies consistent with our values and legal requirements. This frame- work shall be coordinated through the interagency process described in section 3 of this order. This framework shall include specific and prioritized lines of effort and coordinated messaging; interagency engage- ment and activities with foreign partners, such as foreign assistance and capacity-building efforts and coordination of global compliance; and whole- of-government efforts to promote international principles, standards, and best practices. This framework should reflect ongoing leadership by the Secretary of the Treasury and financial regulators in relevant international financial standards bodies, and should elevate United States engagement on digital assets issues in technical standards bodies and other international fora to promote development of digital asset and CBDC technologies con- sistent with our values. (ii) Within 1 year of the date of the establishment of the framework required by section 8(b)(i) of this order, the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, the Director of the Office of Management and Budget, the Administrator of the United States Agency for International Development, and the heads of other relevant agencies as appropriate, shall submit a report to the President on priority actions taken under the framework and its effective- ness. This report shall be coordinated through the interagency process described in section 3 of this order. (iii) Within 180 days of the date of this order, the Secretary of Commerce, in consultation with the Secretary of State, the Secretary of the Treasury, and the heads of other relevant agencies, shall establish a framework for enhancing United States economic competitiveness in, and leveraging of, digital asset technologies. This framework shall be coordinated through the interagency process described in section 3 of this order. (iv) Within 90 days of the date of this order, the Attorney General, in consultation with the Secretary of State, the Secretary of the Treasury, and the Secretary of Homeland Security, shall submit a report to the President on how to strengthen international law enforcement cooperation for detecting, investigating, and prosecuting criminal activity related to digital assets. Sec. 9. Definitions. For the purposes of this order: (a) The term blockchain refers to distributed ledger technologies where data is shared across a network that creates a digital ledger of verified transactions or information among network participants and the data are typically linked using cryptography to maintain the integrity of the ledger and execute other functions, including transfer of ownership or value. (b) The term central bank digital currency or CBDC refers to a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank. (c) The term cryptocurrencies refers to a digital asset, which may be a medium of exchange, for which generation or ownership records are sup- ported through a distributed ledger technology that relies on cryptography, such as a blockchain. (d) The term digital assets refers to all CBDCs, regardless of the tech- nology used, and to other representations of value, financial assets and instruments, or claims that are used to make payments or investments, or to transmit or exchange funds or the equivalent thereof, that are issued or represented in digital form through the use of distributed ledger tech- nology. For example, digital assets include cryptocurrencies, stablecoins, and CBDCs. Regardless of the label used, a digital asset may be, among other things, a security, a commodity, a derivative, or other financial product. VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00009 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj 14152 Federal RegisterVol. 87, No. 49Monday, March 14, 2022Presidential Documents Digital assets may be exchanged across digital asset trading platforms, includ- ing centralized and decentralized finance platforms, or through peer-to-peer technologies. (e) The term stablecoins refers to a category of cryptocurrencies with mechanisms that are aimed at maintaining a stable value, such as by pegging the value of the coin to a specific currency, asset, or pool of assets or by algorithmically controlling supply in response to changes in demand in order to stabilize value. Sec. 10. General Provisions. (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. THE WHITE HOUSE, March 9, 2022. FR Doc. 202205471 Filed 31122; 8:45 am Billing code 3395F2P VerDate Sep112014 15:38 Mar 11, 2022 Jkt 256001 PO 00000 Frm 00010 Fmt 4705 Sfmt 4790 E:FRFM14MRE0.SGM 14MRE0 COD ZERP htiw DORP32NT121KSD no sraepsj HPGSPE.NEDIB","DEPARTMENT OF THE TREASURY WASHINGTON, D.C. OFFICE OF FOREIGN ASSETS CONTROL Cyber-Related Sanctions Regulations 31 CFR part 578 Weapons of Mass Destruction Proliferators Sanctions Regulations 31 CFR part 544 Executive Order 14078 of July 19, 2022 Bolstering Efforts to Bring Hostages and Wrongfully Detained United States Nationals Home GENERAL LICENSE NO. 1C Authorizing Certain Transactions with the Federal Security Service (a)Except as provided in paragraph (b) of this general license, all transactions prohibited by the Cyber-Related Sanctions Regulations, 31 CFR part 578 (CRSR), the Weapons of Mass Destruction Proliferators Sanctions Regulations, 31 CFR part 544 (WMDPSR), or Executive Order (E.O.) 14078, involving the Federal Security Service (a.k.a. Federalnaya Sluzhba Bezopasnosti) (a.k.a. FSB) are authorized, provided that such transactions are ordinarily incident and necessary to: (1)Requesting, receiving, utilizing, paying for, or dealing in licenses, permits, certifications, or notifications issued or registered by the Federal Security Service for the importation, distribution, or use of information technology products in the Russian Federation, provided that (i) the exportation, reexportation, or provision of any goods or technology that are subject to the Export Administration Regulations, 15 CFR parts 730 through 774, is licensed or otherwise authorized by the Department of Commerce; and (ii) the payment of any fees to the Federal Security Service for such licenses, permits, certifications, or notifications does not exceed 5,000 in any calendar year; Note to paragraph (a)(1). Except for the limited purposes described in paragraph (a)(1), this paragraph does not authorize the exportation, reexportation, or provision of goods or technology to or on behalf of the Federal Security Service. (2)Complying with law enforcement or administrative actions or investigations involving the Federal Security Service; or (3)Complying with rules and regulations administered by the Federal Security Service. (b)This general license does not authorize: (1) The transfer of any property or debiting of any account blocked pursuant to any E.O., statute, or 31 CFR chapter V; or (2) Any transactions otherwise prohibited by the CRSR, the WMDPSR, or E.O. 14078, including transactions with any blocked person other than the blocked person described in paragraph (a) of this general license, unless separately authorized. (c) Effective April 27, 2023, General License No. 1B, dated February 17, 2021, is replaced and superseded in its entirety by this General License No. 1C. Note 1 to General License No. 1C. See Russia-related General License No. 42 for an authorization for certain transactions with the Federal Security Service prohibited by E.O. 14024. Note 2 to General License No. 1C. The exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of any goods, services, or technology to the so-called Donetsk Peoples Republic or Luhansk Peoples Republic (DNRLNR) regions of Ukraine, or such other regions of Ukraine as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State, pursuant to E.O. 14065, or to the Crimea region of Ukraine remains prohibited pursuant to authorities implemented by the Ukraine-Russia-Related Sanctions Regulations, 31 CFR part 589, among others.  Andrea M. Gacki Director Office of Foreign Assets Control Dated: April 27, 2023 .","1 Presidential Documents Federal Register Vol. 82, No. 1 Tuesday, January 3, 2017 Title 3 Executive Order 13757 of December 28, 2016 The President Taking Additional Steps to Address the National Emergency With Respect to Significant Malicious Cyber-Enabled Activi- ties 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 Emer- gencies Act (50 U.S.C. 1601 et seq.) (NEA), and section 301 of title 3, United States Code, I, BARACK OBAMA, President of the United States of America, in order to take additional steps to deal with the national emergency with respect to significant malicious cyber-enabled activities declared in Executive Order 13694 of April 1, 2015, and in view of the increasing use of such activities to undermine democratic processes or institutions, hereby order: Section 1. Section 1(a) of Executive Order 13694 is hereby amended to read as follows: Section 1. (a) 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 the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: (i) the persons listed in the Annex to this order; (ii) any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, to be responsible for or complicit in, or to have engaged in, directly or indirectly, cyber- enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States and that have the purpose or effect of: (A) harming, or otherwise significantly compromising the provision of services by, a computer or network of computers that support one or more entities in a critical infrastructure sector; (B) significantly compromising the provision of services by one or more entities in a critical infrastructure sector; (C) causing a significant disruption to the availability of a computer or network of computers; (D) causing a significant misappropriation of funds or economic re- sources, trade secrets, personal identifiers, or financial information for commercial or competitive advantage or private financial gain; or (E) tampering with, altering, or causing a misappropriation of information with the purpose or effect of interfering with or undermining election processes or institutions; and (iii) any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State: (A) to be responsible for or complicit in, or to have engaged in, the receipt or use for commercial or competitive advantage or private financial gain, or by a commercial entity, outside the United States of trade secrets VerDate Sep112014 22:08 Dec 30, 2016 Jkt 241001 PO 00000 Frm 00001 Fmt 4705 Sfmt 4790 E:FRFM03JAE0.SGM 03JAE0 SCOD SERP htiw DORP280QMG3KSD no hcivodars 2 Federal RegisterVol. 82, No. 1Tuesday, January 3, 2017Presidential Documents misappropriated through cyber-enabled means, knowing they have been misappropriated, where the misappropriation of such trade secrets is rea- sonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economy of the United States; (B) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any activity described in subsections (a)(ii) or (a)(iii)(A) of this section or any person whose property and interests in property are blocked pursu- ant to this order; (C) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order; or (D) to have attempted to engage in any of the activities described in subsections (a)(ii) and (a)(iii)(A)(C) of this section. Sec. 2. Executive Order 13694 is further amended by adding as an Annex to Executive Order 13694 the Annex to this order. Sec. 3. Executive Order 13694 is further amended by redesignating section 10 as section 11 and adding a new section 10 to read as follows: Sec. 10. The Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, is hereby authorized to determine that circumstances no longer warrant the blocking of the property and interests in property of a person listed in the Annex to this order, and to take necessary action to give effect to that determination. Sec. 4. 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. Sec. 5. This order is effective at 12:01 a.m. eastern standard time on December 29, 2016. THE WHITE HOUSE, December 28, 2016. Billing code 3295F7P VerDate Sep112014 22:08 Dec 30, 2016 Jkt 241001 PO 00000 Frm 00002 Fmt 4705 Sfmt 4790 E:FRFM03JAE0.SGM 03JAE0 SCOD SERP htiw DORP280QMG3KSD no hcivodars HPGSPE.1BO Federal RegisterVol. 82, No. 1Tuesday, January 3, 2017Presidential Documents 3 FR Doc. 201631922 Filed 123016; 8:45 am Billing code 481133C VerDate Sep112014 22:08 Dec 30, 2016 Jkt 241001 PO 00000 Frm 00003 Fmt 4705 Sfmt 4790 E:FRFM03JAE0.SGM 03JAE0 SCOD SERP htiw DORP280QMG3KSD no hcivodars HPG810.71AJ30DE Annex Entities 1. Main Intelligence Directorate (a.k.a. Glavnoe Razvedyvatel'noe Upravlenie) (a.k.a. GRU); Moscow, Russia 2. Federal Security Service (a.k.a. Federalnaya Sluzhba Bezopasnosti) (a.k.a FSB); Moscow, Russia 3. Special Technology Center (a.k.a. STLC, Ltd. Special Technology Center St. Petersburg); St. Petersburg, Russia 4. Zorsecurity (a.k.a. Esage Lab); Moscow, ..R ussia 5. Autonomous Noncommercial Organization ""Professional Association of Designers of Data Processing Systems"" (a.k.a. ANO PO KSI); Moscow, Russia Individuals 1. Igor Valentinovich Korobov; DOB Aug 3, 1956; nationality, Russian 2. Sergey Aleksandrovich Gizunov; DOB Oct 18, 1956; nationality, Russian 3. Igor Olegovich Kostyukov; DOB Feb 21, 1961; nationality, Russian 4. Vladimir Stepanovich Alexseyev; DOB Apr 24, 1961; nationality, Russian","Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents 6755 Presidential Documents Executive Order 14144 of January 16, 2025 Strengthening and Promoting Innovation in the Nations Cy- bersecurity 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.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 212(f) of the Immigration and Nationality Act of 1952 (8 U.S.C. 1182(f)), and section 301 of title 3, United States Code, it is hereby ordered as follows: Section 1. Policy. Adversarial countries and criminals continue to conduct cyber campaigns targeting the United States and Americans, with the Peoples Republic of China presenting the most active and persistent cyber threat to United States Government, private sector, and critical infrastructure net- works. These campaigns disrupt the delivery of critical services across the Nation, cost billions of dollars, and undermine Americans security and privacy. More must be done to improve the Nations cybersecurity against these threats. Building on the foundational steps I directed in Executive Order 14028 of May 12, 2021 (Improving the Nations Cybersecurity), and the initiatives detailed in the National Cybersecurity Strategy, I am ordering additional actions to improve our Nations cybersecurity, focusing on defending our digital infrastructure, securing the services and capabilities most vital to the digital domain, and building our capability to address key threats, includ- ing those from the Peoples Republic of China. Improving accountability for software and cloud service providers, strengthening the security of Federal communications and identity management systems, and promoting innova- tive developments and the use of emerging technologies for cybersecurity across executive departments and agencies (agencies) and with the private sector are especially critical to improvement of the Nations cybersecurity. Sec. 2. Operationalizing Transparency and Security in Third-Party Software Supply Chains. (a) The Federal Government and our Nations critical infra- structure rely on software providers. Yet insecure software remains a chal- lenge for both providers and users and makes Federal Government and critical infrastructure systems vulnerable to malicious cyber incidents. The Federal Government must continue to adopt secure software acquisition practices and take steps so that software providers use secure software development practices to reduce the number and severity of vulnerabilities in software they produce. (b) Executive Order 14028 directed actions to improve the security and integrity of software critical to the Federal Governments ability to function. Executive Order 14028 directed the development of guidance on secure software development practices and on generating and providing evidence in the form of artifactscomputer records or data that are generated manually or by automated meansthat demonstrate compliance with those practices. Additionally, it directed the Director of the Office of Management and Budget (OMB) to require agencies to use only software from providers that attest to using those secure software development practices. In some instances, providers of software to the Federal Government commit to following cyberse- curity practices, yet do not fix well-known exploitable vulnerabilities in their software, which puts the Government at risk of compromise. The VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00001 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK 6756 Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents Federal Government needs to adopt more rigorous third-party risk manage- ment practices and greater assurance that software providers that support critical Government services are following the practices to which they attest. (i) Within 30 days of the date of this order, the Director of OMB, in consultation with the Secretary of Commerce, acting through the Director of the National Institute of Standards and Technology (NIST), and the Secretary of Homeland Security, acting through the Director of the Cyberse- curity and Infrastructure Security Agency (CISA), shall recommend to the Federal Acquisition Regulatory Council (FAR Council) contract lan- guage requiring software providers to submit to CISA through CISAs Repository for Software Attestation and Artifacts (RSAA): (A) machine-readable secure software development attestations; (B) high-level artifacts to validate those attestations; and (C) a list of the providers Federal Civilian Executive Branch (FCEB) agency software customers. (ii) Within 120 days of the receipt of the recommendations described in subsection (b)(i) of this section, the FAR Council shall review the recommendations and, as appropriate and consistent with applicable law, the Secretary of Defense, the Administrator of General Services, and the Administrator of the National Aeronautics and Space Administration (the agency members of the FAR Council) shall jointly take steps to amend the Federal Acquisition Regulation (FAR) to implement those recommenda- tions. The agency members of the FAR Council are strongly encouraged to consider issuing an interim final rule, as appropriate and consistent with applicable law. (iii) Within 60 days of the date of the issuance of the recommendations described in subsection (b)(i) of this section, the Secretary of Homeland Security, acting through the Director of CISA, shall evaluate emerging methods of generating, receiving, and verifying machine-readable secure software development attestations and artifacts and, as appropriate, shall provide guidance for software providers on submitting them to CISAs RSAA website, including a common data schema and format. (iv) Within 30 days of the date of any amendments to the FAR described in subsection (b)(ii) of this section, the Secretary of Homeland Security, acting through the Director of CISA, shall develop a program to centrally verify the completeness of all attestation forms. CISA shall continuously validate a sample of the complete attestations using high-level artifacts in the RSAA. (v) If CISA finds that attestations are incomplete or artifacts are insufficient for validating the attestations, the Director of CISA shall notify the software provider and the contracting agency. The Director of CISA shall provide a process for the software provider to respond to CISAs initial determina- tion and shall duly consider the response. (vi) For attestations that undergo validation, the Director of CISA shall inform the National Cyber Director, who shall publicly post the results, identifying the software providers and software version. The National Cyber Director is encouraged to refer attestations that fail validation to the Attorney General for action as appropriate. (c) Secure software development practices are not sufficient to address the potential for cyber incidents from resourced and determined nation- state actors. To mitigate the risk of such incidents occurring, software pro- viders must also address how software is delivered and the security of the software itself. The Federal Government must identify a coordinated set of practical and effective security practices to require when it procures software. (i) Within 60 days of the date of this order, the Secretary of Commerce, acting through the Director of NIST, shall establish a consortium with industry at the National Cybersecurity Center of Excellence to develop VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00002 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents 6757 guidance, informed by the consortium as appropriate, that demonstrates the implementation of secure software development, security, and oper- ations practices based on NIST Special Publication 800218 (Secure Soft- ware Development Framework (SSDF)). (ii) Within 90 days of the date of this order, the Secretary of Commerce, acting through the Director of NIST, shall update NIST Special Publication 80053 (Security and Privacy Controls for Information Systems and Organi- zations) to provide guidance on how to securely and reliably deploy patches and updates. (iii) Within 180 days of the date of this order, the Secretary of Commerce, acting through the Director of NIST, in consultation with the heads of such agencies as the Director of NIST deems appropriate, shall develop and publish a preliminary update to the SSDF. This update shall include practices, procedures, controls, and implementation examples regarding the secure and reliable development and delivery of software as well as the security of the software itself. Within 120 days of publishing the preliminary update, the Secretary of Commerce, acting through the Director of NIST, shall publish a final version of the updated SSDF. (iv) Within 120 days of the final update to the SSDF described in subsection (c)(iii) of this section, the Director of OMB shall incorporate select practices for the secure development and delivery of software contained in NISTs updated SSDF into the requirements of OMB Memorandum M2218 (Enhancing the Security of the Software Supply Chain through Secure Software Development Practices) or related requirements. (v) Within 30 days of the issuance of OMBs updated requirements de- scribed in subsection (c)(iv) of this section, the Director of CISA shall prepare any revisions to CISAs common form for Secure Software Develop- ment Attestation to conform to OMBs requirements and shall initiate any process required to obtain clearance of the revised form under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. (d) As agencies have improved their cyber defenses, adversaries have targeted the weak links in agency supply chains and the products and services upon which the Federal Government relies. Agencies need to inte- grate cybersecurity supply chain risk management programs into enterprise- wide risk management activities. Within 90 days of the date of this order, the Director of OMB, in coordination with the Secretary of Commerce, acting through the Director of NIST, the Administrator of General Services, and the Federal Acquisition Security Council (FASC), shall take steps to require, as the Director deems appropriate, that agencies comply with the guidance in NIST Special Publication 800161 (Cybersecurity Supply Chain Risk Management Practices for Systems and Organizations (SP 800161 Revision 1)). OMB shall require agencies to provide annual updates to OMB as they complete implementation. Consistent with SP 800161 Revision 1, OMBs requirements shall address the integration of cybersecurity into the acquisition lifecycle through acquisition planning, source selection, re- sponsibility determination, security compliance evaluation, contract adminis- tration, and performance evaluation. (e) Open source software plays a critical role in Federal information sys- tems. To help the Federal Government continue to reap the innovation and cost benefits of open source software and contribute to the cybersecurity of the open source software ecosystem, agencies must better manage their use of open source software. Within 120 days of the date of this order, the Secretary of Homeland Security, acting through the Director of CISA, and the Director of OMB, in consultation with the Administrator of General Services and the heads of other agencies as appropriate, shall jointly issue recommendations to agencies on the use of security assessments and patching of open source software and best practices for contributing to open source software projects. Sec. 3. Improving the Cybersecurity of Federal Systems. (a) The Federal Government must adopt proven security practices from industryto include VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00003 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK 6758 Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents in identity and access managementin order to improve visibility of security threats across networks and strengthen cloud security. (b) To prioritize investments in the innovative identity technologies and processes of the future and phishing-resistant authentication options, FCEB agencies shall begin using, in pilot deployments or in larger deployments as appropriate, commercial phishing-resistant standards such as WebAuthn, building on the deployments that OMB and CISA have developed and estab- lished since the issuance of Executive Order 14028. These pilot deployments shall be used to inform future directions for Federal identity, credentialing, and access management strategies. (c) The Federal Government must maintain the ability to rapidly and effectively identify threats across the Federal enterprise. In Executive Order 14028, I directed the Secretary of Defense and the Secretary of Homeland Security to establish procedures to immediately share threat information to strengthen the collective defense of Department of Defense and civilian networks. To enable identification of threat activity, CISAs capability to hunt for and identify threats across FCEB agencies under 44 U.S.C. 3553(b)(7) must be strengthened. (i) The Secretary of Homeland Security, acting through the Director of CISA, in coordination with the Federal Chief Information Officer (CIO) Council and Federal Chief Information Security Officer (CISO) Council, shall develop the technical capability to gain timely access to required data from FCEB agency endpoint detection and response (EDR) solutions and from FCEB agency security operation centers to enable: (A) timely hunting and identification of novel cyber threats and vulnerabilities across the Federal civilian enterprise; (B) identification of coordinated cyber campaigns that simultaneously target multiple agencies and move laterally across the Federal enterprise; and (C) coordination of Government-wide efforts on information security policies and practices, including compilation and analysis of information about incidents that threaten information security. (ii) Within 180 days of the date of this order, the Secretary of Homeland Security, acting through the Director of CISA, in coordination with the Federal CIO and CISO Councils, shall develop and release a concept of operations that enables CISA to gain timely access to required data to achieve the objectives described in subsection (c)(i) of this section. The Director of OMB shall oversee the development of this concept of operations to account for agency perspectives and the objectives outlined in this section and shall approve the final concept of operations. This concept of operations shall include: (A) requirements for FCEB agencies to provide CISA with data of suffi- cient completeness and on the timeline required to enable CISA to achieve the objectives described in subsection (c)(i) of this section; (B) requirements for CISA to provide FCEB agencies with advanced notification when CISA directly accesses agency EDR solutions to obtain required telemetry; (C) specific use cases for which agencies may provide telemetry data subject to the requirements in subsection (c)(ii)(A) of this section as op- posed to direct access to EDR solutions by CISA; (D) high-level technical and policy control requirements to govern CISA access to agency EDR solutions that conform with widely accepted cyberse- curity principles, including role-based access controls, least privilege, and separation of duties; (E) specific protections for highly sensitive agency data that is subject to statutory, regulatory, or judicial restrictions to protect confidentiality or integrity; and VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00004 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents 6759 (F) an appendix to the concept of operations that identifies and addresses certain types of specific use cases under subsection (c)(ii)(C) of this section that apply to the Department of Justice, including certain categories of information described in subsections (c)(vi) and (c)(vii) of this section, and requires the Department of Justices concurrence on the terms of the appendix prior to implementation of the concept of operations on the Department of Justices or its subcomponents networks. (iii) In undertaking the activities described in subsection (c) of this section, the Secretary of Homeland Security, acting through the Director of CISA, shall only make a change to an agency network, system, or data when such change is required for threat hunting by CISA, including access to the EDR tools described in subsection (c)(ii) of this section, or in furtherance of its authority to conduct threat hunting as authorized under 44 U.S.C. 3553(b)(7), unless otherwise authorized by the agency. (iv) Within 30 days of the release of the concept of operations described in subsection (c)(ii) of this section, the Secretary of Homeland Security, acting through the Director of CISA, shall establish working groups, open to all agencies, to develop and release specific technical controls that achieve the objectives set forth in subsection (c)(ii) of this section and to work with EDR solution providers to implement those controls in FCEB agency deployments of EDR solutions. The Secretary of Homeland Security, acting through the Director of CISA, shall, at a minimum, establish a working group for each EDR solution authorized by CISA for use in the CISA Continuous Diagnostic and Mitigation Program. Each working group shall be open to all agencies and include at least one representative from an FCEB agency employing the designated EDR solution. (v) Within 180 days of the release of the technical controls described in subsection (c)(iv) of this section, the heads of FCEB agencies shall enroll endpoints using an EDR solution covered by those controls in the CISA Persistent Access Capability program. (vi) Within 90 days of the date of this order, and periodically thereafter as needed, the heads of FCEB agencies shall provide to CISA a list of systems, endpoints, and data sets that require additional controls or periods of non-disruption to ensure that CISAs threat-hunting activities do not disrupt mission-critical operations, along with an explanation of those operations. (vii) In cases in which agency data is subject to statutory, regulatory, or judicial access restrictions, the Director of CISA shall comply with agency processes and procedures required to access such data or work with the agency to develop an appropriate administrative accommodation consistent with any such restrictions so that the data is not subject to unauthorized access or use. (viii) Nothing in this order requires an agency to provide access to informa- tion that is protected from non-disclosure by court order or otherwise required to be kept confidential in connection with a judicial proceeding. (d) The security of Federal information systems relies on the security of the Governments cloud services. Within 90 days of the date of this order, the Administrator of General Services, acting through the Director of the Federal Risk and Authorization Management Program (FedRAMP), in coordination with the Secretary of Commerce, acting through the Director of NIST, and the Secretary of Homeland Security, acting through the Director of CISA, shall develop FedRAMP policies and practices to incentivize or require cloud service providers in the FedRAMP Marketplace to produce baselines with specifications and recommendations for agency configuration of agency cloud-based systems in order to secure Federal data based on agency requirements. (e) As cybersecurity threats to space systems increase, these systems and their supporting digital infrastructure must be designed to adapt to evolving cybersecurity threats and operate in contested environments. In light of VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00005 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK 6760 Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents the pivotal role space systems play in global critical infrastructure and communications resilience, and to further protect space systems and the supporting digital infrastructure vital to our national security, including our economic security, agencies shall take steps to continually verify that Federal space systems have the requisite cybersecurity capabilities through actions including continuous assessments, testing, exercises, and modeling and simulation. (i) Within 180 days of the date of this order, the Secretary of the Interior, acting through the Director of the United States Geological Survey; the Secretary of Commerce, acting through the Under Secretary of Commerce for Oceans and Atmosphere and the Administrator of the National Oceanic and Atmospheric Administration; and the Administrator of the National Aeronautics and Space Administration shall each review the civil space contract requirements in the FAR and recommend to the FAR Council and other appropriate agencies updates to civil space cybersecurity require- ments and relevant contract language. The recommended cybersecurity requirements and contract language shall use a risk-based, tiered approach for all new civil space systems. Such requirements shall be designed to apply at minimum to the civil space systems on-orbit segments and link segments. The requirements shall address the following elements for the highest-risk tier and, as appropriate, other tiers: (A) protection of command and control of the civil space system, includ- ing backup or failover systems, by: (1) encrypting commands to protect the confidentiality of communica- tions; (2) ensuring commands are not modified in transit; (3) ensuring an authorized party is the source of commands; and (4) rejecting unauthorized command and control attempts; (B) establishment of methods to detect, report, and recover from anoma- lous network or system activity; and (C) use of secure software and hardware development practices, con- sistent with the NIST SSDF or any successor documents. (ii) Within 180 days of receiving the recommended contract language described in subsection (e)(i) of this section, the FAR Council shall review the proposal and, as appropriate and consistent with applicable law, the agency members of the FAR Council shall jointly take steps to amend the FAR. (iii) Within 120 days of the date of this order, the National Cyber Director shall submit to OMB a study of space ground systems owned, managed, or operated by FCEB agencies. This study shall include: (A) an inventory of space ground systems; (B) whether each space ground system is classified as a major information system under 44 U.S.C. 3505(c), labeled Inventory of major information systems; and (C) recommendations to improve the cyber defenses and oversight of such space ground systems. (iv) Within 90 days of the submission of the study described in subsection (e)(iii) of this section, the Director of OMB shall take appropriate steps to help ensure that space ground systems owned, managed, or operated by FCEB agencies comply with relevant cybersecurity requirements issued by OMB. Sec. 4. Securing Federal Communications. (a) To improve the security of Federal Government communications against adversarial nations and crimi- nals, the Federal Government must implement, to the extent practicable and consistent with mission needs, strong identity authentication and encryption using modern, standardized, and commercially available algo- rithms and protocols. VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00006 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents 6761 (b) The security of internet traffic depends on data being correctly routed and delivered to the intended recipient network. Routing information origi- nated and propagated across the internet, utilizing the Border Gateway Pro- tocol (BGP), is vulnerable to attack and misconfiguration. (i) Within 90 days of the date of this order, FCEB agencies shall take steps to ensure that all of their assigned internet number resources (internet Protocol (IP) address blocks and Autonomous System Numbers) are covered by a Registration Services Agreement with the American Registry for inter- net Numbers or another appropriate regional internet registry. Thereafter, FCEB agencies shall annually review and update in their regional internet registry accounts organizational identifiers related to assigned number re- sources such as organization names, points of contact, and associated email addresses. (ii) Within 120 days of the date of this order, all FCEB agencies that hold IP address blocks shall create and publish Route Origin Authorizations in the public Resource Public Key Infrastructure repository hosted or delegated by the American Registry for internet Numbers or the appropriate regional internet registry for the IP address blocks they hold. (iii) Within 120 days of the date of this order, the National Cyber Director, in coordination with the heads of other agencies as appropriate, shall recommend contract language to the FAR Council to require contracted providers of internet services to agencies to adopt and deploy internet routing security technologies, including publishing Route Origin Authoriza- tions and performing Route Origin Validation filtering. The recommended language shall include requirements or exceptions, as appropriate, for agency contracts regarding overseas operations and overseas local service providers. Within 270 days of receiving these recommendations, the FAR Council shall review the recommended contract language and, as appro- priate and consistent with applicable law, the agency members of the FAR Council shall jointly take steps to amend the FAR. Pending any such amendments to the FAR, individual agencies are encouraged to in- clude such requirements in future contracts, consistent with applicable law. (iv) Within 180 days of the date of this order, the Secretary of Commerce, acting through the Director of NIST, shall publish updated guidance to agencies on deployment of current, operationally viable BGP security meth- ods for Federal Government networks and service providers. The Secretary of Commerce, acting through the Director of NIST, shall also provide updated guidance on other emerging technologies to improve internet routing security and resilience, such as route leak mitigation and source address validation. (c) Encrypting Domain Name System (DNS) traffic in transit is a critical step to protecting both the confidentiality of the information being trans- mitted to, and the integrity of the communication with, the DNS resolver. (i) Within 90 days of the date of this order, the Secretary of Homeland Security, acting through the Director of CISA, shall publish template con- tract language requiring that any product that acts as a DNS resolver (whether client or server) for the Federal Government support encrypted DNS and shall recommend that language to the FAR Council. Within 120 days of receiving the recommended language, the FAR Council shall review it, and, as appropriate and consistent with applicable law, the agency members of the FAR Council shall jointly take steps to amend the FAR. (ii) Within 180 days of the date of this order, FCEB agencies shall enable encrypted DNS protocols wherever their existing clients and servers sup- port those protocols. FCEB agencies shall also enable such protocols within 180 days of any additional clients and servers supporting such protocols. (d) The Federal Government must encrypt email messages in transport and, where practical, use end-to-end encryption in order to protect messages from compromise. VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00007 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK 6762 Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents (i) Within 120 days of the date of this order, each FCEB agency shall technically enforce encrypted and authenticated transport for all connec- tions between the agencys email clients and their associated email servers. (ii) Within 180 days of the date of this order, the Director of OMB shall establish a requirement for expanded use of authenticated transport-layer encryption between email servers used by FCEB agencies to send and receive email. (iii) Within 90 days of the establishment of the requirement described in subsection (d)(ii) of this section, the Secretary of Homeland Security, acting through the Director of CISA, shall take appropriate steps to assist agencies in meeting that requirement, including by issuing implementing directives, as well as technical guidance to address any identified capability gaps. (e) Modern communications such as voice and video conferencing and instant messaging are usually encrypted at the link level but often are not encrypted end-to-end. Within 180 days of the date of this order, to advance the security of internet-based voice and video conferencing and instant messaging, the Director of OMB, in coordination with the Secretary of Homeland Security, acting through the Director of CISA; the Secretary of Defense, acting through the Director of the National Security Agency (NSA); the Secretary of Commerce, acting through the Director of NIST; the Archivist of the United States, acting through the Chief Records Officer for the United States Government; and the Administrator of General Services shall take appropriate steps to require agencies to: (i) enable transport encryption by default; and (ii) where technically supported, use end-to-end encryption by default while maintaining logging and archival capabilities that allow agencies to fulfill records management and accountability requirements. (f) Alongside their benefits, quantum computers pose significant risk to the national security, including the economic security, of the United States. Most notably, a quantum computer of sufficient size and sophistication also known as a cryptanalytically relevant quantum computer (CRQC) will be capable of breaking much of the public-key cryptography used on digital systems across the United States and around the world. In National Security Memorandum 10 of May 4, 2022 (Promoting United States Leader- ship in Quantum Computing While Mitigating Risks to Vulnerable Cryp- tographic Systems), I directed the Federal Government to prepare for a transition to cryptographic algorithms that would not be vulnerable to a CRQC. (i) Within 180 days of the date of this order, the Secretary of Homeland Security, acting through the Director of CISA, shall release and thereafter regularly update a list of product categories in which products that support post-quantum cryptography (PQC) are widely available. (ii) Within 90 days of a product category being placed on the list described in subsection (f)(i) of this section, agencies shall take steps to include in any solicitations for products in that category a requirement that prod- ucts support PQC. (iii) Agencies shall implement PQC key establishment or hybrid key estab- lishment including a PQC algorithm as soon as practicable upon support being provided by network security products and services already deployed in their network architectures. (iv) Within 90 days of the date of this order, the Secretary of State and the Secretary of Commerce, acting through the Director of NIST and the Under Secretary for International Trade, shall identify and engage foreign governments and industry groups in key countries to encourage their transition to PQC algorithms standardized by NIST. (v) Within 180 days of the date of this order, to prepare for transition to PQC, the Secretary of Defense with respect to National Security Systems (NSS), and the Director of OMB with respect to non-NSS, shall each VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00008 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents 6763 issue requirements for agencies to support, as soon as practicable, but not later than January 2, 2030, Transport Layer Security protocol version 1.3 or a successor version. (g) The Federal Government should take advantage of commercial security technologies and architectures, such as hardware security modules, trusted execution environments, and other isolation technologies, to protect and audit access to cryptographic keys with extended lifecycles. (i) Within 270 days of the date of this order, the Secretary of Commerce, acting through the Director of NIST, in consultation with the Secretary of Homeland Security, acting through the Director of CISA, and the Admin- istrator of General Services shall develop guidelines for the secure manage- ment of access tokens and cryptographic keys used by cloud service pro- viders. (ii) Within 60 days of the publication of the guidelines described in subsection (g)(i) of this section, the Administrator of General Services, acting through the FedRAMP Director, in consultation with the Secretary of Commerce, acting through the Director of NIST, and the Secretary of Homeland Security, acting through the Director of CISA, shall develop updated FedRAMP requirements, incorporating the guidelines described in subsection (g)(i) of this section, as appropriate and consistent with guidance issued by the Director of OMB, concerning cryptographic key management security practices. (iii) Within 60 days of the publication of the guidelines described in subsection (g)(i) of this section, the Director of OMB, in consultation with the Secretary of Commerce, acting through the Director of NIST; the Secretary of Homeland Security, acting through the Director of CISA; and the Administrator of General Services shall take appropriate steps to require FCEB agencies to follow best practices concerning the protection and management of hardware security modules, trusted execution environ- ments, or other isolation technologies for access tokens and cryptographic keys used by cloud service providers in the provision of services to agencies. Sec. 5. Solutions to Combat Cybercrime and Fraud. (a) The use of stolen and synthetic identities by criminal syndicates to systemically defraud public benefits programs costs taxpayers and wastes Federal Government funds. To help address these crimes it is the policy of the executive branch to strongly encourage the acceptance of digital identity documents to access public benefits programs that require identity verification, so long as it is done in a manner that preserves broad program access for vulnerable populations and supports the principles of privacy, data minimization, and interoperability. (i) Within 90 days of the date of this order, agencies with grantmaking authority are encouraged to consider, in coordination with OMB and the National Security Council staff, whether Federal grant funding is available to assist States in developing and issuing mobile drivers licenses that achieve the policies and principles described in this section. (ii) Within 270 days of the date of this order, the Secretary of Commerce, acting through the Director of NIST, shall issue practical implementation guidance, in collaboration with relevant agencies and other stakeholders through the National Cybersecurity Center of Excellence, to support remote digital identity verification using digital identity documents that will help issuers and verifiers of digital identity documents advance the policies and principles described in this section. (iii) Agencies should consider accepting digital identity documents as digital identity verification evidence to access public benefits programs, but only if the use of these documents is consistent with the policies and principles described in this section. (iv) Agencies should, consistent with applicable law, seek to ensure that digital identity documents accepted as digital identity verification evidence to access public benefits programs: VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00009 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK 6764 Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents (A) are interoperable with relevant standards and trust frameworks, so that the public can use any standards-compliant hardware or software containing an official Government-issued digital identity document, regard- less of manufacturer or developer; (B) do not enable authorities that issue digital identity documents, device manufacturers, or any other third party to surveil or track presentation of the digital identity document, including user device location at the time of presentation; and (C) support user privacy and data minimization by ensuring only the minimum information required for a transactionoften a yes or no response to a question, such as whether an individual is older than a specific ageis requested from the holder of the digital identity document. (b) The use of YesNo validation services, also referred to as attribute validation services, can enable more privacy-preserving means to reduce identity fraud. These services allow programs to confirm, via a privacy- preserving yes or no response, that applicant-provided identity informa- tion is consistent with information already contained in official records, without needing to share the contents of those official records. To support the use of such services, the Commissioner of Social Security, and the head of any other agency designated by the Director of OMB, shall, as appropriate and consistent with applicable law, consider taking steps to develop or modify servicesincluding through, as appropriate, the initiation of a proposed rulemaking or the publication of a notice of a new or signifi- cantly modified routine use of recordsrelated to Government-operated iden- tity verification systems and public benefits programs, with consideration given to having such systems and programs submit applicant-provided iden- tity information to the agency providing the service and receive a yes or no response as to whether the applicant-provided identity information is consistent with the information on file with the agency providing the service. In doing so, the heads of these agencies shall specifically consider seeking to ensure, consistent with applicable law, that: (i) any applicant-provided identity information submitted to the services and any yes or no response provided by the services are used only to assist with identity verification, program administration, anti-fraud oper- ations, or investigation and prosecution of fraud related to the public benefits program for which the identity information was submitted; (ii) the services are made available, to the maximum extent permissible and as appropriate, to public benefits programs; Government-operated iden- tity verification systems, including shared-service providers; payment integ- rity programs; and United States-regulated financial institutions; and (iii) the agencies, public benefits programs, or institutions using the services provide reimbursement to appropriately cover costs and support the ongo- ing maintenance, improvement, and broad accessibility of the services. (c) The Secretary of the Treasury, in consultation with the Administrator of General Services, shall research, develop, and conduct a pilot program for technology that notifies individuals and entities when their identity information is used to request a payment from a public benefits program, gives individuals and entities the option to stop potentially fraudulent trans- actions before they occur, and reports fraudulent transactions to law enforce- ment entities. Sec. 6. Promoting Security with and in Artificial Intelligence. Artificial intel- ligence (AI) has the potential to transform cyber defense by rapidly identi- fying new vulnerabilities, increasing the scale of threat detection techniques, and automating cyber defense. The Federal Government must accelerate the development and deployment of AI, explore ways to improve the cyberse- curity of critical infrastructure using AI, and accelerate research at the inter- section of AI and cybersecurity. (a) Within 180 days of the date of the completion of the Defense Advanced Research Projects Agencys 2025 Artificial Intelligence Cyber Challenge, the Secretary of Energy, in coordination with the Secretary of Defense, acting VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00010 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents 6765 through the Director of the Defense Advanced Research Projects Agency, and the Secretary of Homeland Security, shall launch a pilot program, involv- ing collaboration with private sector critical infrastructure entities as appro- priate and consistent with applicable law, on the use of AI to enhance cyber defense of critical infrastructure in the energy sector, and conduct an assessment of the pilot program upon its completion. This pilot program, and accompanying assessment, may include vulnerability detection, auto- matic patch management, and the identification and categorization of anoma- lous and malicious activity across information technology (IT) or operational technology systems. (b) Within 270 days of the date of this order, the Secretary of Defense shall establish a program to use advanced AI models for cyber defense. (c) Within 150 days of the date of this order, the Secretary of Commerce, acting through the Director of NIST; the Secretary of Energy; the Secretary of Homeland Security, acting through the Under Secretary for Science and Technology; and the Director of the National Science Foundation (NSF) shall each prioritize funding for their respective programs that encourage the development of large-scale, labeled datasets needed to make progress on cyber defense research, and ensure that existing datasets for cyber defense research have been made accessible to the broader academic research commu- nity (either securely or publicly) to the maximum extent feasible, in consider- ation of business confidentiality and national security. (d) Within 150 days of the date of this order, the Secretary of Commerce, acting through the Director of NIST; the Secretary of Energy; the Secretary of Homeland Security, acting through the Under Secretary for Science and Technology; and the Director of the NSF shall prioritize research on the following topics: (i) human-AI interaction methods to assist defensive cyber analysis; (ii) security of AI coding assistance, including security of AI-generated code; (iii) methods for designing secure AI systems; and (iv) methods for prevention, response, remediation, and recovery of cyber incidents involving AI systems. (e) Within 150 days of the date of this order, the Secretary of Defense, the Secretary of Homeland Security, and the Director of National Intelligence, in coordination with the Director of OMB, shall incorporate management of AI software vulnerabilities and compromises into their respective agencies existing processes and interagency coordination mechanisms for vulnerability management, including through incident tracking, response, and reporting, and by sharing indicators of compromise for AI systems. Sec. 7. Aligning Policy to Practice. (a) IT infrastructure and networks that support agencies critical missions need to be modernized. Agencies policies must align investments and priorities to improve network visibility and security controls to reduce cyber risks. (i) Within 3 years of the date of this order, the Director of OMB shall issue guidance, including any necessary revision to OMB Circular A 130, to address critical risks and adapt modern practices and architectures across Federal information systems and networks. This guidance shall, at a minimum: (A) outline expectations for agency cybersecurity information sharing and exchange, enterprise visibility, and accountability for enterprise-wide cybersecurity programs by agency CISOs; (B) revise OMB Circular A130 to be less technically prescriptive in key areas, where appropriate, to more clearly promote the adoption of evolving cybersecurity best practices across Federal systems, and to include migration to zero trust architectures and implementation of critical ele- ments such as EDR capabilities, encryption, network segmentation, and phishing-resistant multi-factor authentication; and VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00011 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK 6766 Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents (C) address how agencies should identify, assess, respond to, and mitigate risks to mission essential functions presented by concentration of IT ven- dors and services. (ii) The Secretary of Commerce, acting through the Director of NIST; the Secretary of Homeland Security, acting through the Director of CISA; and the Director of OMB shall establish a pilot program of a rules-as- code approach for machine-readable versions of policy and guidance that OMB, NIST, and CISA publish and manage regarding cybersecurity. (b) Managing cybersecurity risks is now a part of everyday industry practice and should be expected for all types of businesses. Minimum cybersecurity requirements can make it costlier and harder for threat actors to compromise networks. Within 240 days of the date of this order, the Secretary of Com- merce, acting through the Director of NIST, shall evaluate common cybersecu- rity practices and security control outcomes that are commonly used or recommended across industry sectors, international standards bodies, and other risk management programs, and based on that evaluation issue guidance identifying minimum cybersecurity practices. In developing this guidance, the Secretary of Commerce, acting through the Director of NIST, shall solicit input from the Federal Government, the private sector, academia, and other appropriate actors. (c) Agencies face multiple cybersecurity risks when purchasing products and services. While agencies have already made significant advances to improve their supply chain risk management, additional actions are needed to keep pace with the evolving threat landscape. Within 180 days of the issuance of the guidance described in subsection (b) of this section, the FAR Council shall review the guidance and, as appropriate and consistent with applicable law, the agency members of the FAR Council shall jointly take steps to amend the FAR to: (i) require that contractors with the Federal Government follow applicable minimum cybersecurity practices identified in NISTs guidance pursuant to subsection (b) of this section with respect to work performed under agency contracts or when developing, maintaining, or supporting IT serv- ices or products that are provided to the Federal Government; and (ii) adopt requirements for agencies to, by January 4, 2027, require vendors to the Federal Government of consumer internet-of-Things products, as defined by 47 CFR 8.203(b), to carry United States Cyber Trust Mark labeling for those products. Sec. 8. National Security Systems and Debilitating Impact Systems. (a) Except as specifically provided for in section 4(f)(v) of this order, sections 1 through 7 of this order shall not apply to Federal information systems that are NSS or are otherwise identified by the Department of Defense or the Intel- ligence Community as debilitating impact systems. (b) Within 90 days of the date of this order, to help ensure that NSS and debilitating impact systems are protected with the most advanced secu- rity measures, the Secretary of Defense, acting through the Director of NSA as the National Manager for National Security Systems (National Manager), in coordination with the Director of National Intelligence and the Committee on National Security Systems (CNSS), and in consultation with the Director of OMB and the Assistant to the President for National Security Affairs (APNSA), shall develop requirements for NSS and debilitating impact systems that are consistent with the requirements set forth in this order, as appropriate and consistent with applicable law. The Secretary of Defense may grant exceptions to such requirements in circumstances necessitated by unique mission needs. Such requirements shall be incorporated into a proposed National Security Memorandum, to be submitted to the President through the APNSA. (c) To help protect space NSS with cybersecurity measures that keep pace with emerging threats, within 210 days of the date of this order, the CNSS shall review and update, as appropriate, relevant policies and guidance regarding space system cybersecurity. In addition to appropriate VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00012 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents 6767 updates, the CNSS shall identify and address appropriate requirements to implement cyber defenses on Federal Government-procured space NSS in the areas of intrusion detection, use of hardware roots of trust for secure booting, and development and deployment of security patches. (d) To enhance the effective governance and oversight of Federal informa- tion systems, within 90 days of the date of this order, the Director of OMB shall issue guidance as appropriate requiring agencies to inventory all major information systems and provide the inventory to CISA, the Depart- ment of Defense, or the National Manager, as applicable, which shall each maintain a registry of agency inventories within their purview. CISA, the Department of Defense CIO, and the National Manager will share their inventories as appropriate to identify gaps or overlaps in oversight coverage. This guidance shall not apply to elements of the Intelligence Community. (e) Nothing in this order alters the authorities and responsibilities granted in law or policy to the Director of National Intelligence, the Secretary of Defense, and the National Manager over applicable systems pursuant to the National Security Act of 1947 (Public Law 80253), the Federal Informa- tion Security Modernization Act of 2014 (Public Law 113283), National Security Directive 42 of July 5, 1990 (National Policy for the Security of National Security Telecommunications and Information Systems), or National Security Memorandum 8 of January 19, 2022 (Improving the Cybersecurity of National Security, Department of Defense, and Intelligence Community Systems). Sec. 9. Additional Steps to Combat Significant Malicious Cyber-Enabled Activities. Because I find that additional steps must be taken to deal with the national emergency with respect to significant malicious cyber-enabled activities declared in Executive Order 13694 of April 1, 2015 (Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber- Enabled Activities), as amended by Executive Order 13757 of December 28, 2016 (Taking Additional Steps to Address the National Emergency With Respect to Significant Malicious Cyber-Enabled Activities), and further amended by Executive Order 13984 of January 19, 2021 (Taking Additional Steps to Address the National Emergency With Respect to Significant Mali- cious Cyber-Enabled Activities), to protect against the growing and evolving threat of malicious cyber-enabled activities against the United States and United States allies and partners, including the increasing threats by foreign actors of unauthorized access to critical infrastructure, ransomware, and cyber-enabled intrusions and sanctions evasion, I hereby order that section 1(a) of Executive Order 13694 is further amended to read as follows: Section 1. (a) 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 the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in: (i) the persons listed in the Annex to this order; (ii) any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State, to be responsible for or complicit in, or to have engaged in, directly or indirectly, cyber- enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States that are reasonably likely to result in, or have materially contributed to, a threat to the national security, foreign policy, or economic health or financial stability of the United States, and that have the purpose of or involve: (A) harming, or otherwise compromising the provision of services by, a computer or network of computers that support one or more entities in a critical infrastructure sector; (B) compromising the provision of services by one or more entities in a critical infrastructure sector; VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00013 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK 6768 Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents (C) causing a disruption to the availability of a computer or network of computers or compromising the integrity of the information stored on a computer or network of computers; (D) causing a misappropriation of funds or economic resources, intellec- tual property, proprietary or business confidential information, personal identifiers, or financial information for commercial or competitive advan- tage or private financial gain; (E) tampering with, altering, or causing a misappropriation of information with the purpose of or that involves interfering with or undermining election processes or institutions; or (F) engaging in a ransomware attack, such as extortion through malicious use of code, encryption, or other activity to affect the confidentiality, integrity, or availability of data or a computer or network of computers, against a United States person, the United States, a United States ally or partner or a citizen, national, or entity organized under the laws thereof; or (iii) any person determined by the Secretary of the Treasury, in consultation with the Attorney General and the Secretary of State: (A) to be responsible for or complicit in, or to have engaged in, directly or indirectly, the receipt or use for commercial or competitive advantage or private financial gain, or by a commercial entity, outside the United States of funds or economic resources, intellectual property, proprietary or business confidential information, personal identifiers, or financial infor- mation misappropriated through cyber-enabled means, knowing they have been misappropriated, where the misappropriation of such funds or eco- nomic resources, intellectual property, proprietary or business confidential information, personal identifiers, or financial information is reasonably likely to result in, or has materially contributed to, a threat to the national security, foreign policy, or economic health or financial stability of the United States; (B) to be responsible for or complicit in, or to have engaged in, directly or indirectly, activities related to gaining or attempting to gain unauthorized access to a computer or network of computers of a United States person, the United States, a United States ally or partner or a citizen, national, or entity organized under the laws thereof, where such efforts originate from or are directed by persons located, in whole or substantial part, outside the United States and are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States; (C) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any activity described in subsections (a)(ii) or (a)(iii)(A) or (B) of this section or any person whose property and interests in property are blocked pursuant to this order; (D) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order or that has engaged in any activity described in subsections (a)(ii) or (a)(iii)(A)(C) of this section; (E) to have attempted to engage in any of the activities described in subsections (a)(ii) and (a)(iii)(A)(D) of this section; or (F) to be or have been a leader, official, senior executive officer, or member of the board of directors of any person whose property and interests in property are blocked pursuant to this order or that has engaged in any activity described in subsections (a)(ii) or (a)(iii)(A)  (E) of this section. Sec. 10. Definitions. For purposes of this order: VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00014 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents 6769 (a) The term agency has the meaning ascribed to it under 44 U.S.C. 3502(1), except for the independent regulatory agencies described in 44 U.S.C. 3502(5). (b) The term artifact means a record or data that is generated manually or by automated means and may be used to demonstrate compliance with defined practices, including for secure software development. (c) The term artificial intelligence or AI has the meaning set forth in 15 U.S.C. 9401(3). (d) The term AI system means any data system, software, hardware, application, tool, or utility that operates in whole or in part using AI. (e) The term authentication means the process of determining the validity of one or more authenticators, such as a password, used to claim a digital identity. (f) The term Border Gateway Protocol or BGP means the control protocol used to distribute and compute paths between the tens of thousands of autonomous networks that constitute the internet. (g) The term consumer internet-of-Things products means internet-of- Things products intended primarily for consumer use, rather than enterprise or industrial use. Consumer internet-of-Things products do not include med- ical devices regulated by the United States Food and Drug Administration or motor vehicles and motor vehicle equipment regulated by the National Highway Traffic Safety Administration. (h) The term cyber incident has the meaning given to the term incident under 44 U.S.C. 3552(b)(2). (i) The term debilitating impact systems means systems as described by 44 U.S.C. 3553(e)(2) and 3553(e)(3) for Department of Defense and Intel- ligence Community purposes, respectively. (j) The term digital identity document means an electronic, reusable, cryptographically verifiable identity credential issued by a Government source, such as a State-issued mobile drivers license or an electronic pass- port. (k) The term digital identity verification means identity verification that a user performs online. (l) The term endpoint means any device that can be connected to a computer network creating an entry or exit point for data communications. Examples of endpoints include desktop and laptop computers, smartphones, tablets, servers, workstations, virtual machines, and consumer internet-of- Things products. (m) The term endpoint detection and response means cybersecurity tools and capabilities that combine real-time continuous monitoring and collection of endpoint data (for example, networked computing device such as workstations, mobile phones, servers) with rules-based automated response and analysis capabilities. (n) The term Federal Civilian Executive Branch agencies or FCEB agencies includes all agencies except for the agencies and other components in the Department of Defense and agencies in the Intelligence Community. (o) The term Federal information system means an information system used or operated by an agency, a contractor of an agency, or another organiza- tion on behalf of an agency. (p) The term Government-operated identity verification system means a system owned and operated by a Federal, State, local, Tribal, or territorial Government entity that performs identity verification, including single-agency systems and shared services that provide service to multiple agencies. (q) The term hardware root of trust means an inherently trusted combina- tion of hardware and firmware that helps to maintain the integrity of informa- tion. VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00015 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK 6770 Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents (r) The term hybrid key establishment means a key establishment scheme that is a combination of two or more components that are themselves cryp- tographic key-establishment schemes. (s) The term identity verification means the process of collecting identity information or evidence, validating its legitimacy, and confirming that it is associated with the real person providing it. (t) The term Intelligence Community has the meaning given to it under 50 U.S.C. 3003(4). (u) The term key establishment means the process by which a cryp- tographic key is securely shared between two or more entities. (v) The term least privilege means the principle that a security architec- ture is designed so that each entity is granted the minimum system resources and authorizations that the entity needs to perform its function. (w) The term machine-readable means that the product output is in a structured format that can be consumed by another program using con- sistent processing logic. (x) The term national security systems or NSS has the meaning given to it under 44 U.S.C. 3552(b)(6). (y) The term patch means a software component that, when installed, directly modifies files or device settings related to a different software compo- nent without changing the version number or release details for the related software component. (z) The term rules-as-code approach means a coded version of rules (for example, those contained in legislation, regulation, or policy) that can be understood and used by a computer. (aa) The term secure booting means a security feature that prevents malicious software from running when a computer system starts up. The security feature performs a series of checks during the boot sequence that helps ensure only trusted software is loaded. (bb) The term security control outcome means the results of the perform- ance or non-performance of safeguards or countermeasures prescribed for an information system or an organization to protect the confidentiality, integrity, and availability of the system and its information. (cc) The term zero trust architecture has the meaning given to it in Executive Order 14028. Sec. 11. General Provisions. (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 in a manner consistent with applicable law and subject to the availability of appropriations. VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00016 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK Federal RegisterVol. 90, No. 11Friday, January 17, 2025Presidential Documents 6771 (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. THE WHITE HOUSE, January 16, 2025. FR Doc. 202501470 Filed 11625; 2:00 pm Billing code 3395F4P VerDate Sep112014 10:33 Jan 17, 2025 Jkt 265001 PO 00000 Frm 00017 Fmt 4790 Sfmt 4790 E:FRFM17JAE3.SGM 17JAE3 BCODSERP htiw DORP441S7W9KSD no DNOMMAHK HPGSPE.NEDIB","81752 Federal RegisterVol. 80, No. 251Thursday, December 31, 2015Rules and Regulations Shippers claim that oil pipeline index Furthermore, to the extent issues arise spurious data, we trim the data set to increases exceed the CPI does not on a particular pipeline, a shipper may those pipelines in the middle 50 percent support changes to the index because file complaints or protests against of cost changes. Fourth, as shown in Liquids Shippers have not demonstrated indexed rate increases97or complaints Attachment A (Exhibit 15) we calculate that historic, industry-wide oil pipeline against an oil pipelines underlying base three measures of the middle 50 cost changes have corresponded to the rates. In addition to being beyond the percents central tendency: The median, CPI.92 scope of the June 2015 NOI, Liquids the mean, and a weighted mean. Fifth, 49. Liquids Shippers arguments that Shippers have not substantiated their we calculate a composite by taking a the Commission should change its claims.98 simple average of those three measures regulations governing indexing are of central tendency, as shown in F. Suncors Proposals beyond the scope of this proceeding. Attachment A (Exhibit 1). Finally, this The June 2015 NOI sought comment 51. The Commission will not adopt composite is compared to the value of regarding two narrow issues, (a) the the various proposals advanced by the PPIFG index data over the same proposed index level and (b) possible Suncor. The Commissions adoption of period. The index level is then set at changes to the Kahn Methodology used page 700 data addresses several of these PPIFG plus (or minus) this differential. to calculate the index level.93Liquids proposals, which were advanced as Using these calculations, the Shippers comments regarding the alternatives should the Commission not Commission establishes an index level Commissions indexing policies, adopt page 700 data. In addition, the of PPIFG plus 1.23 percent (PPI committed shipper contracts,94and Commission also will not adopt FG1.23) for the five-year period other issues are beyond the scope of this Suncors proposed alternative commencing July 1, 2016. limited inquiry. methodology to trim the data set based 50. Further, Liquids Shippers upon anomalous years (as opposed to The Commission Orders comments have not persuaded us to trimming pipelines reporting anomalous Consistent with the discussion in this reexamine the Commission-approved data) because the justification for this order, the Commission determines that indexing methodology.95In general proposal, including the use of broader the appropriate oil pricing index for the terms, Liquids Shippers have not data set, was based upon the previously next five years, July 1, 2016 through substantiated their claims of unchecked used Form No. 6 accounting data, not June 30, 2021, is PPIFG1.23. oil pipeline over-recoveries. For the page 700 data. Moreover, AOPL has By the Commission. example, of the 20 pipelines (out of presented evidence that Suncors Liquids Shippers sample of 42) that Issued: December 17, 2015. proposal included significant Liquids Shippers allege are over- Nathaniel J. Davis, Sr., computational errors.99 recovering, evidence provided in this Deputy Secretary. proceeding indicates that 15 actually IV. 20162021 Oil Pipeline Index FR Doc. 201532701 Filed 123015; 8:45 am under-recovered their cost-of-service in 52. Based on the foregoing, the BILLING CODE 671701P one (and in many cases more) of the Commission calculates the five-year years between 2009 and 2014.96 review of the index level used to determine annual changes to oil DEPARTMENT OF THE TREASURY 92Similarly, Liquids Shippers comparison to pipeline rate ceilings for the five-year natural gas pipeline rate changes is misleading Office of Foreign Assets Control because Liquids Shippers data only includes a period commencing July 1, 2016 as portion of natural gas pipelines (not all natural gas follows. First, as shown in Attachment pipelines) and does not include all rate changes A (Exhibit 13, Exhibit 14) we remove 31 CFR Part 578 proposed by those pipelines. Shehadeh October those pipelines that did not provide 2015 Affidavit at 31. The underlying economic Cyber-Related Sanctions Regulations premise of this analysis is also flawed. First, as Dr. Form No. 6, page 700 data or provided Shehadeh explains, the analogy to natural gas incomplete data. Second, as shown in AGENCY: Office of Foreign Assets pipelines depends upon a misunderstanding of Attachment A (Exhibit 15) we look at Control, Treasury. pricesas price levels, not price growth, are determined by the level of competition in an the data on Form No. 6, page 700 to ACTION: Final rule. industry. Id. at 30. Second, Liquids Shippers do not calculate each pipelines cost change on establish that the same market forces determining a per barrel-mile basis over the prior SUMMARY: The Department of the natural gas pipeline prices apply to oil pipelines. five-year period (e.g. the years 2009 Treasurys Office of Foreign Assets Id. 2014 in this proceeding). Third, in order Control (OFAC) is issuing regulations to 93June 2015 NOI, 151 FERC  61,278 at P 1. 94This five-year review addresses the calculation to remove statistical outliers and implement Executive Order 13694 of of the industry-wide index-level. Negotiated April 1, 2015 (Blocking the Property of committed shipper contracts only incorporate an under-recovery of the aggregate page 700 cost- Certain Persons Engaging in Significant indexing when both the pipeline and the committed of-service. Moreover, as has been recognized from Malicious Cyber-Enabled Activities). shippers accept such terms. Any objections to these negotiated provisions (including the application of the inception of indexing, some pipelines costs will OFAC intends to supplement this part exceed the rate increases allowed by indexing indexing) may be raised during the applicable 578 with a more comprehensive set of whereas efficient pipelines may benefit from petition for declaratory order process. controlling their costs. Order No. 561, FERC Stats. regulations, which may include 95The Commissions indexing methodology was  Regs.  30,985 at 30,94849. additional interpretive and definitional affirmed on appeal following Order No. 561. AOPL I, 281 F.3d 239. The dissents and other materials 97Liquids Shippers argue that pipelines with guidance and additional general page 700 revenues exceeding page 700 cost of from that proceeding cited by Liquids Shippers licenses and statements of licensing w Lie qr ue i dp sa r St ho if p t ph ee r sre cc io terd a a Ct ot nh ga rt et sim sioe n. I an l la ed ttd ei rt i won h, i ch s ee xr tv ei nc te t hsh ao t u inld d en xo rt a r te ec fe ii lv ine g i sn od fe x p ai rn tc icre ua lase r s p. iT po e lt ih ne e s policy. was written before the indexing regulations were substantially exacerbate pre-existing over- DATES: Effective: December 31, 2015. finalized, and does not accurately portray how recoveries, current Commission policies allow those regulations have been implemented. For shippers to file complaints against those index FORFURTHERINFORMATIONCONTACT: The example, the letter implies that the index may only increases. BP West Coast Products, LLC v. SFPP, Department of the Treasurys Office of increase rates, when, in fact, under Commission L.P., 121 FERC  61,141 (2007). Foreign Assets Control: Assistant regulations the index may require rates to go down. 98Remaining issues regarding the Commissions Director for Licensing, tel.: 202622 See 18 CFR 342.3(e) (2015). regulatory policies may be raised in an adjudicatory 96See Shehadeh September 2015 Affidavit at 32. context or another, more appropriate forum. 2480, Assistant Director for Regulatory Further, the industry as a whole continues to show 99Shehadeh September 2015 Affidavit at 38. Affairs, tel.: 2026224855, Assistant VerDate Sep112014 16:05 Dec 30, 2015 Jkt 238001 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 E:FRFM31DER1.SGM 31DER1 SELUR htiw DORP1NVTPS3KSD no yellekt Federal RegisterVol. 80, No. 251Thursday, December 31, 2015Rules and Regulations 81753 Director for Sanctions Compliance  approved by the Office of Management 578.502 Reserved Evaluation, tel.: 2026222490; or the and Budget under control number 1505 578.503 Exclusion from licenses. Department of the Treasurys Office of 0164. An agency may not conduct or 578.504 Payments and transfers to blocked the Chief Counsel (Foreign Assets sponsor, and a person is not required to accounts in U.S. financial institutions. 578.505 Entries in certain accounts for Control), Office of the General Counsel, respond to, a collection of information normal service charges authorized. tel.: 2026222410. unless the collection of information 578.506 Provision of certain legal services SUPPLEMENTARYINFORMATION: displays a valid control number. authorized. Electronic and Facsimile Availability List of Subjects in 31 CFR Part 578 578.507 Payments for legal services from funds originating outside the United This document and additional Administrative practice and States authorized. information concerning OFAC are procedure, Banking, Banks, Blocking of 578.508 Authorization of emergency available from OFACs Web site assets, Brokers, Credit, Critical medical services. (www.treasury.govofac). Certain general infrastructure, Cyber, Cybersecurity, Subparts FGReserved information pertaining to OFACs Foreign trade, Investments, Loans, sanctions programs also is available via Securities, Services, Trade secrets. Subpart HProcedures facsimile through a 24-hour fax-on- For the reasons set forth in the 578.801 Reserved demand service, tel.: 2026220077. preamble, the Department of the 578.802 Delegation by the Secretary of the Treasurys Office of Foreign Assets Treasury. Background Control adds part 578 to 31 CFR chapter Subpart IPaperwork Reduction Act On April 1, 2015, the President issued V to read as follows: 578.901 Paperwork Reduction Act notice. Executive Order 13694 (80 FR 18077, Appendix A to Part 578Executive Order April 2, 2015) (E.O. 13694), invoking the PART 578CYBER-RELATED 13694 authority of, inter alia, the International SANCTIONS REGULATIONS Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); Emergency Economic Powers Act (50 Subpart ARelation of This Part to Other 50 U.S.C. 16011651, 17011706; Pub. L. U.S.C. 17011706). OFAC is issuing the Laws and Regulations 101410, 104 Stat. 890 (28 U.S.C. 2461 note); Cyber-Related Sanctions Regulations, 31 Pub. L. 11096, 121 Stat. 1011 (50 U.S.C. CFR part 578 (the Regulations), to Sec. 1705 note); E.O. 13694, 80 FR 18077, April 578.101 Relation of this part to other laws implement E.O. 13694, pursuant to 2, 2015. and regulations. authorities delegated to the Secretary of the Treasury in E.O. 13694. A copy of Subpart BProhibitions Subpart ARelation of This Part to E.O. 13694 appears in Appendix A to 578.201 Prohibited transactions. Other Laws and Regulations this part. 578.202 Effect of transfers violating the 578.101 Relation of this part to other The Regulations are being published provisions of this part. laws and regulations. in abbreviated form at this time for the 578.203 Holding of funds in interest- purpose of providing immediate bearing accounts; investment and This part is separate from, and reinvestment. guidance to the public. OFAC intends to independent of, the other parts of this 578.204 Expenses of maintaining blocked supplement this part 578 with a more chapter, with the exception of part 501 property; liquidation of blocked comprehensive set of regulations, which of this chapter, the recordkeeping and property. may include additional interpretive and reporting requirements and license definitional guidance, including Subpart CGeneral Definitions application and other procedures of regarding cyber-enabled activities, 578.300 Applicability of definitions. which apply to this part. Actions taken and additional general licenses and 578.301 Blocked account; blocked property. pursuant to part 501 of this chapter with statements of licensing policy. The 578.302 Effective date. respect to the prohibitions contained in 578.303 Entity. appendix to the Regulations will be this part are considered actions taken 578.304 Financial, material, or removed when OFAC supplements this pursuant to this part. Differing foreign technological support. part with a more comprehensive set of policy and national security 578.305 Interest. regulations. 578.306 Licenses; general and specific. circumstances may result in differing 578.307 OFAC. interpretations of similar language Public Participation 578.308 Person. among the parts of this chapter. No Because the Regulations involve a 578.309 Property; property interest. license or authorization contained in or foreign affairs function, the provisions 578.310 Transfer. issued pursuant to those other parts of Executive Order 12866 and the 578.311 United States. authorizes any transaction prohibited by Administrative Procedure Act (5 U.S.C. 578.312 United States person; U.S. person. this part. No license or authorization 553) requiring notice of proposed 578.313 U.S. financial institution. contained in or issued pursuant to any rulemaking, opportunity for public Subpart DInterpretations other provision of law or regulation participation, and delay in effective date 578.401 Reserved authorizes any transaction prohibited by are inapplicable. Because no notice of 578.402 Effect of amendment. this part. No license or authorization proposed rulemaking is required for this 578.403 Termination and acquisition of an contained in or issued pursuant to this rule, the Regulatory Flexibility Act (5 interest in blocked property. part relieves the involved parties from U.S.C. 601612) does not apply. 578.404 Transactions ordinarily incident to complying with any other applicable a licensed transaction. Paperwork Reduction Act 578.405 Setoffs prohibited. laws or regulations. The collections of information related 578.406 Entities owned by persons whose Note to 578.101: This part has been to the Regulations are contained in 31 property and interests in property are published in abbreviated form for the blocked. purpose of providing immediate guidance to CFR part 501 (the Reporting, the public. OFAC intends to supplement this Procedures and Penalties Regulations). Subpart ELicenses, Authorizations, and part with a more comprehensive set of Pursuant to the Paperwork Reduction Statements of Licensing Policy regulations, which may include additional Act of 1995 (44 U.S.C. 3507), those 578.501 General and specific licensing interpretive and definitional guidance, collections of information have been procedures. including regarding cyber-enabled VerDate Sep112014 16:05 Dec 30, 2015 Jkt 238001 PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 E:FRFM31DER1.SGM 31DER1 SELUR htiw DORP1NVTPS3KSD no yellekt 81754 Federal RegisterVol. 80, No. 251Thursday, December 31, 2015Rules and Regulations activities, and additional general licenses and date, had written notice of the transfer lien, execution, garnishment, or other statements of licensing policy. or by any written evidence had judicial process is null and void with recognized such transfer. respect to any property and interests in Subpart BProhibitions (c) Unless otherwise provided, a property blocked pursuant to 578.201. license or other authorization issued by 578.201 Prohibited transactions. OFAC before, during, or after a transfer 578.203 Holding of funds in interest- All transactions prohibited pursuant shall validate such transfer or make it bearing accounts; investment and to Executive Order 13694 of April 1, enforceable to the same extent that it reinvestment. 2015, are also prohibited pursuant to would be valid or enforceable but for (a) Except as provided in paragraphs this part. the provisions of this part and any (e) or (f) of this section, or as otherwise Note 1 to 578.201: The names of persons regulation, order, directive, ruling, directed by OFAC, any U.S. person designated pursuant to Executive Order instruction, or license issued pursuant holding funds, such as currency, bank 13694, whose property and interests in to this part. deposits, or liquidated financial property therefore are blocked pursuant to (d) Transfers of property that obligations, subject to 578.201 shall this section, are published in the Federal otherwise would be null and void or hold or place such funds in a blocked Register and incorporated into OFACs unenforceable by virtue of the interest-bearing account located in the Specially Designated Nationals and Blocked provisions of this section shall not be United States. Persons List (SDN List) with the identifier deemed to be null and void or (b)(1) For purposes of this section, the CYBER. The SDN List is accessible through the following page on OFACs Web unenforceable as to any person with term blocked interest-bearing account site: www.treasury.govsdn. Additional whom such property is or was held or means a blocked account: information pertaining to the SDN List can be maintained (and as to such person only) (i) In a federally-insured U.S. bank, found in Appendix A to this chapter. See in cases in which such person is able to thrift institution, or credit union, 578.406 concerning entities that may not be establish to the satisfaction of OFAC provided the funds are earning interest listed on the SDN List but whose property each of the following: at rates that are commercially and interests in property are nevertheless (1) Such transfer did not represent a reasonable; or blocked pursuant to this section. willful violation of the provisions of this (ii) With a broker or dealer registered Note 2 to 578.201: The International part by the person with whom such with the Securities and Exchange Emergency Economic Powers Act (50 U.S.C. property is or was held or maintained Commission under the Securities 17011706), in Section 203 (50 U.S.C. 1702), (and as to such person only); Exchange Act of 1934 (15 U.S.C. 78a et authorizes the blocking of property and (2) The person with whom such seq.), provided the funds are invested in interests in property of a person during the property is or was held or maintained a money market fund or in U.S. pendency of an investigation. The names of did not have reasonable cause to know Treasury bills. persons whose property and interests in or suspect, in view of all the facts and (2) Funds held or placed in a blocked property are blocked pending investigation circumstances known or available to account pursuant to paragraph (a) of this pursuant to this section also are published in the Federal Register and incorporated into such person, that such transfer required section may not be invested in the SDN List with the identifier BPI a license or authorization issued instruments the maturity of which CYBER. pursuant to this part and was not so exceeds 180 days. licensed or authorized, or, if a license or (c) For purposes of this section, a rate Note 3 to 578.201: Sections 501.806 and authorization did purport to cover the is commercially reasonable if it is the 501.807 of this chapter describe the transfer, that such license or rate currently offered to other depositors procedures to be followed by persons authorization had been obtained by on deposits or instruments of seeking, respectively, the unblocking of funds that they believe were blocked due to misrepresentation of a third party or comparable size and maturity. mistaken identity, or administrative withholding of material facts or was (d) For purposes of this section, if reconsideration of their status as persons otherwise fraudulently obtained; and interest is credited to a separate blocked whose property and interests in property are (3) The person with whom such account or subaccount, the name of the blocked pursuant to this section. property is or was held or maintained account party on each account must be filed with OFAC a report setting forth in the same. 578.202 Effect of transfers violating the full the circumstances relating to such (e) Blocked funds held in instruments provisions of this part. transfer promptly upon discovery that: the maturity of which exceeds 180 days (a) Any transfer after the effective date (i) Such transfer was in violation of at the time the funds become subject to that is in violation of any provision of the provisions of this part or any 578.201 may continue to be held until this part or of any regulation, order, regulation, ruling, instruction, license, maturity in the original instrument, directive, ruling, instruction, or license or other directive or authorization provided any interest, earnings, or other issued pursuant to this part, and that issued pursuant to this part; proceeds derived therefrom are paid involves any property or interest in (ii) Such transfer was not licensed or into a blocked interest-bearing account property blocked pursuant to 578.201, authorized by OFAC; or in accordance with paragraphs (a) or (f) is null and void and shall not be the (iii) If a license did purport to cover of this section. basis for the assertion or recognition of the transfer, such license had been (f) Blocked funds held in accounts or any interest in or right, remedy, power, obtained by misrepresentation of a third instruments outside the United States at or privilege with respect to such party or withholding of material facts or the time the funds become subject to property or property interest. was otherwise fraudulently obtained. 578.201 may continue to be held in the (b) No transfer before the effective same type of accounts or instruments, Note to paragraph (d): The filing of a date shall be the basis for the assertion report in accordance with the provisions of provided the funds earn interest at rates or recognition of any right, remedy, paragraph (d)(3) of this section shall not be that are commercially reasonable. power, or privilege with respect to, or deemed evidence that the terms of (g) This section does not create an any interest in, any property or interest paragraphs (d)(1) and (2) of this section have affirmative obligation for the holder of in property blocked pursuant to been satisfied. blocked tangible property, such as 578.201, unless the person who holds (e) Unless licensed pursuant to this chattels or real estate, or of other or maintains such property, prior to that part, any attachment, judgment, decree, blocked property, such as debt or equity VerDate Sep112014 16:05 Dec 30, 2015 Jkt 238001 PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 E:FRFM31DER1.SGM 31DER1 SELUR htiw DORP1NVTPS3KSD no yellekt Federal RegisterVol. 80, No. 251Thursday, December 31, 2015Rules and Regulations 81755 securities, to sell or liquidate such 578.302 Effective date. Note to 578.306: See 501.801 of this property. However, OFAC may issue The term effective date refers to the chapter on licensing procedures. licenses permitting or directing such effective date of the applicable sales or liquidation in appropriate cases. prohibitions and directives contained in 578.307 OFAC. (h) Funds subject to this section may this part, and, with respect to a person The term OFAC means the not be held, invested, or reinvested in whose property and interests in Department of the Treasurys Office of a manner that provides immediate property are blocked pursuant to Foreign Assets Control. financial or economic benefit or access 578.201, is the earlier of the date of 578.308 Person. to any person whose property and actual or constructive notice that such The term person means an individual interests in property are blocked persons property and interests in or entity. property are blocked. pursuant to 578.201, nor may their holder cooperate in or facilitate the 578.309 Property; property interest. 578.303 Entity. pledging or other attempted use as The terms property and property The term entity means a partnership, collateral of blocked funds or other interest include, but are not limited to, association, trust, joint venture, assets. money, checks, drafts, bullion, bank corporation, group, subgroup, or other deposits, savings accounts, debts, 578.204 Expenses of maintaining organization. indebtedness, obligations, notes, blocked property; liquidation of blocked 578.304 Financial, material, or guarantees, debentures, stocks, bonds, property. technological support. coupons, any other financial (a) Except as otherwise authorized, The term financial, material, or instruments, bankers acceptances, and notwithstanding the existence of technological support, as used in mortgages, pledges, liens or other rights any rights or obligations conferred or Executive Order 13694 of April 1, 2015, in the nature of security, warehouse imposed by any international agreement means any property, tangible or receipts, bills of lading, trust receipts, or contract entered into or any license intangible, including but not limited to bills of sale, any other evidences of title, or permit granted prior to the effective currency, financial instruments, ownership or indebtedness, letters of date, all expenses incident to the securities, or any other transmission of credit and any documents relating to maintenance of physical property value; weapons or related materiel; any rights or obligations thereunder, blocked pursuant to 578.201 shall be chemical or biological agents; powers of attorney, goods, wares, the responsibility of the owners or explosives; false documentation or merchandise, chattels, stocks on hand, operators of such property, which identification; communications ships, goods on ships, real estate expenses shall not be met from blocked equipment; computers; electronic or mortgages, deeds of trust, vendors sales funds. other devices or equipment; agreements, land contracts, leaseholds, (b) Property blocked pursuant to technologies; lodging; safe houses; ground rents, real estate and any other 578.201 may, in the discretion of facilities; vehicles or other means of interest therein, options, negotiable OFAC, be sold or liquidated and the net transportation; or goods. instruments, trade acceptances, proceeds placed in a blocked interest- Technologies as used in this royalties, book accounts, accounts bearing account in the name of the definition means specific information payable, judgments, patents, trademarks owner of the property. necessary for the development, or copyrights, insurance policies, safe production, or use of a product, deposit boxes and their contents, Subpart CGeneral Definitions including related technical data such as annuities, pooling agreements, services blueprints, plans, diagrams, models, of any nature whatsoever, contracts of 578.300 Applicability of definitions. formulae, tables, engineering designs any nature whatsoever, and any other The definitions in this subpart apply and specifications, manuals, or other property, real, personal, or mixed, throughout the entire part. recorded instructions. tangible or intangible, or interest or interests therein, present, future, or 578.301 Blocked account; blocked 578.305 Interest. contingent. property. Except as otherwise provided in this 578.310 Transfer. part, the term interest, when used with The terms blocked account and respect to property (e.g., an interest in The term transfer means any actual or blocked property shall mean any property), means an interest of any purported act or transaction, whether or account or property subject to the nature whatsoever, direct or indirect. not evidenced by writing, and whether prohibitions in 578.201 held in the or not done or performed within the name of a person whose property and 578.306 Licenses; general and specific. United States, the purpose, intent, or interests in property are blocked (a) Except as otherwise provided in effect of which is to create, surrender, pursuant to 578.201, or in which such this part, the term license means any release, convey, transfer, or alter, person has an interest, and with respect license or authorization contained in or directly or indirectly, any right, remedy, to which payments, transfers, issued pursuant to this part. power, privilege, or interest with respect exportations, withdrawals, or other (b) The term general license means to any property. Without limitation on dealings may not be made or effected any license or authorization the terms of the foregoing, it shall include the except pursuant to a license or other which are set forth in subpart E of this making, execution, or delivery of any authorization from OFAC expressly part or made available on OFACs Web assignment, power, conveyance, check, authorizing such action. site: www.treasury.govofac. declaration, deed, deed of trust, power Note to 578.301: See 578.406 (c) The term specific license means of attorney, power of appointment, bill concerning the blocked status of property any license or authorization issued of sale, mortgage, receipt, agreement, and interests in property of an entity that is pursuant to this part but not set forth in contract, certificate, gift, sale, affidavit, 50 percent or more owned by persons whose subpart E of this part or made available or statement; the making of any property and interests in property are on OFACs Web site: www.treasury.gov payment; the setting off of any blocked pursuant to 578.201. ofac. obligation or credit; the appointment of VerDate Sep112014 16:05 Dec 30, 2015 Jkt 238001 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 E:FRFM31DER1.SGM 31DER1 SELUR htiw DORP1NVTPS3KSD no yellekt 81756 Federal RegisterVol. 80, No. 251Thursday, December 31, 2015Rules and Regulations any agent, trustee, or fiduciary; the modification, or revocation of any 578.406 Entities owned by persons creation or transfer of any lien; the provision in or appendix to this part or whose property and interests in property issuance, docketing, or filing of, or levy chapter or of any order, regulation, are blocked. of or under, any judgment, decree, ruling, instruction, or license issued by Persons whose property and interests attachment, injunction, execution, or OFAC does not affect any act done or in property are blocked pursuant to other judicial or administrative process omitted, or any civil or criminal 578.201 have an interest in all or order, or the service of any proceeding commenced or pending, property and interests in property of an garnishment; the acquisition of any prior to such amendment, modification, entity in which such blocked persons interest of any nature whatsoever by or revocation. All penalties, forfeitures, own, whether individually or in the reason of a judgment or decree of any and liabilities under any such order, aggregate, directly or indirectly, a 50 foreign country; the fulfillment of any regulation, ruling, instruction, or license percent or greater interest. The property condition; the exercise of any power of continue and may be enforced as if such and interests in property of such an appointment, power of attorney, or amendment, modification, or revocation entity, therefore, are blocked, and such other power; or the acquisition, had not been made. an entity is a person whose property disposition, transportation, importation, and interests in property are blocked exportation, or withdrawal of any 578.403 Termination and acquisition of pursuant to 578.201, regardless of security. an interest in blocked property. whether the name of the entity is (a) Whenever a transaction licensed or incorporated into OFACs Specially 578.311 United States. authorized by or pursuant to this part Designated Nationals and Blocked The term United States means the results in the transfer of property Persons List (SDN List). United States, its territories and (including any property interest) away possessions, and all areas under the Subpart ELicenses, Authorizations, from a person whose property and jurisdiction or authority thereof. and Statements of Licensing Policy interests in property are blocked 578.312 United States person; U.S. pursuant to 578.201, such property 578.501 General and specific licensing person. shall no longer be deemed to be procedures. The term United States person or U.S. property blocked pursuant to 578.201, For provisions relating to licensing person means any United States citizen, unless there exists in the property procedures, see part 501, subpart E of permanent resident alien, entity another interest that is blocked pursuant this chapter. Licensing actions taken organized under the laws of the United to 578.201, the transfer of which has pursuant to part 501 of this chapter with States or any jurisdiction within the not been effected pursuant to license or respect to the prohibitions contained in United States (including foreign other authorization. this part are considered actions taken branches), or any person in the United (b) Unless otherwise specifically pursuant to this part. General licenses States. provided in a license or other and statements of licensing policy authorization issued pursuant to this relating to this part also may be 578.313 U.S. financial institution. part, if property (including any property available through the Cyber-Related The term U.S. financial institution interest) is transferred or attempted to sanctions page on OFACs Web site: means any U.S. entity (including its be transferred to a person whose www.treasury.govofac. foreign branches) that is engaged in the property and interests in property are business of accepting deposits, making, blocked pursuant to 578.201, such 578.502 Reserved granting, transferring, holding, or property shall be deemed to be property 578.503 Exclusion from licenses. brokering loans or credits, or purchasing in which such a person has an interest OFAC reserves the right to exclude or selling foreign exchange, securities, and therefore blocked. any person, property, transaction, or or commodity futures or options, or class thereof from the operation of any procuring purchasers and sellers 578.404 Transactions ordinarily incident thereof, as principal or agent. It includes to a licensed transaction. license or from the privileges conferred by any license. OFAC also reserves the depository institutions, banks, savings Any transaction ordinarily incident to right to restrict the applicability of any banks, trust companies, securities a licensed transaction and necessary to license to particular persons, property, brokers and dealers, commodity futures give effect thereto is also authorized, transactions, or classes thereof. Such and options brokers and dealers, except: actions are binding upon actual or forward contract and foreign exchange (a) An ordinarily incident transaction, constructive notice of the exclusions or merchants, securities and commodities not explicitly authorized within the restrictions. exchanges, clearing corporations, terms of the license, by or with a person investment companies, employee 578.504 Payments and transfers to whose property and interests in benefit plans, and U.S. holding blocked accounts in U.S. financial property are blocked pursuant to companies, U.S. affiliates, or U.S. institutions. 578.201; or subsidiaries of any of the foregoing. This Any payment of funds or transfer of term includes those branches, offices, (b) An ordinarily incident transaction, credit in which a person whose property and agencies of foreign financial not explicitly authorized within the and interests in property are blocked institutions that are located in the terms of the license, involving a debit to pursuant to 578.201 has any interest United States, but not such institutions a blocked account or a transfer of that comes within the possession or foreign branches, offices, or agencies. blocked property. control of a U.S. financial institution must be blocked in an account on the Subpart DInterpretations 578.405 Setoffs prohibited. books of that financial institution. A A setoff against blocked property transfer of funds or credit by a U.S. 578.401 Reserved (including a blocked account), whether financial institution between blocked 578.402 Effect of amendment. by a U.S. bank or other U.S. person, is accounts in its branches or offices is Unless otherwise specifically a prohibited transfer under 578.201 if authorized, provided that no transfer is provided, any amendment, effected after the effective date. made from an account within the VerDate Sep112014 16:05 Dec 30, 2015 Jkt 238001 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 E:FRFM31DER1.SGM 31DER1 SELUR htiw DORP1NVTPS3KSD no yellekt Federal RegisterVol. 80, No. 251Thursday, December 31, 2015Rules and Regulations 81757 United States to an account held outside (3) Initiation and conduct of legal, legal services authorized pursuant to the United States, and further provided arbitration, or administrative 578.506(a) do not originate from: that a transfer from a blocked account proceedings before any U.S. federal, (1) A source within the United States; may be made only to another blocked state, or local court or agency; (2) Any source, wherever located, account held in the same name. (4) Representation of persons before within the possession or control of a Note to 578.504: See 501.603 of this any U.S. federal, state, or local court or U.S. person; or chapter for mandatory reporting agency with respect to the imposition, (3) Any individual or entity, other requirements regarding financial transfers. administration, or enforcement of U.S. than the person on whose behalf the See also 578.203 concerning the obligation sanctions against such persons; and legal services authorized pursuant to to hold blocked funds in interest-bearing (5) Provision of legal services in any 578.506(a) are to be provided, whose accounts. other context in which prevailing U.S. property and interests in property are law requires access to legal counsel at blocked pursuant to any part of this 578.505 Entries in certain accounts for public expense. chapter or any Executive order. normal service charges authorized. (b) The provision of any other legal (a) A U.S. financial institution is services to persons whose property and Note to paragraph (a) of 578.507: This authorized to debit any blocked account interests in property are blocked paragraph authorizes the blocked person on whose behalf the legal services authorized held at that financial institution in pursuant to 578.201 or any further pursuant to 578.506(a) are to be provided to payment or reimbursement for normal Executive orders relating to the national make payments for authorized legal services service charges owed it by the owner of emergency declared in Executive Order using funds originating outside the United that blocked account. 13694 of April 1, 2015, not otherwise States that were not previously blocked. (b) As used in this section, the term authorized in this part, requires the Nothing in this paragraph authorizes issuance of a specific license. payments for legal services using funds in normal service charges shall include (c) Entry into a settlement agreement which any other person whose property and charges in payment or reimbursement or the enforcement of any lien, interests in property are blocked pursuant to for interest due; cable, telegraph, judgment, arbitral award, decree, or 578.201, any other part of this chapter, or internet, or telephone charges; postage other order through execution, any Executive order has an interest. costs; custody fees; small adjustment garnishment, or other judicial process (b) Reports. (1) U.S. persons who charges to correct bookkeeping errors; purporting to transfer or otherwise alter receive payments in connection with and, but not by way of limitation, or affect property or interests in legal services authorized pursuant to minimum balance charges, notary and property blocked pursuant to 578.201 578.506(a) must submit annual reports protest fees, and charges for reference or any further Executive orders relating no later than 30 days following the end books, photocopies, credit reports, to the national emergency declared in of the calendar year during which the transcripts of statements, registered Executive Order 13694 of April 1, 2015, payments were received providing mail, insurance, stationery and supplies, is prohibited unless licensed pursuant information on the funds received. Such and other similar items. to this part. reports shall specify: 578.506 Provision of certain legal Note to 578.506: U.S. persons seeking (i) The individual or entity from services authorized. administrative reconsideration or judicial whom the funds originated and the (a) The provision of the following review of their designation or the blocking of amount of funds received; and legal services to or on behalf of persons their property and interests in property may (ii) If applicable: apply for a specific license from OFAC to whose property and interests in (A) The names of any individuals or authorize the release of a limited amount of property are blocked pursuant to entities providing related services to the blocked funds for the payment of legal fees 578.201 or any further Executive where alternative funding sources are not U.S. person receiving payment in orders relating to the national available. For more information, see OFACs connection with authorized legal emergency declared in Executive Order Guidance on the Release of Limited Amounts services, such as private investigators or 13694 of April 1, 2015, is authorized, of Blocked Funds for Payment of Legal Fees expert witnesses; provided that receipt of payment of and Costs Incurred in Challenging the (B) A general description of the Blocking of U.S. Persons in Administrative or professional fees and reimbursement of services provided; and Civil Proceedings, which is available on incurred expenses must be specifically OFACs Web site: www.treasury.govofac. (C) The amount of funds paid in licensed, authorized pursuant to connection with such services. 578.507, which authorizes certain 578.507 Payments for legal services from (2) The reports, which must reference payments for legal services from funds funds originating outside the United States this section, are to be mailed to: originating outside the United States, or authorized. Licensing Division, Office of Foreign otherwise authorized pursuant to this (a) Receipts of payment of Assets Control, U.S. Department of the part: professional fees and reimbursement of Treasury, 1500 Pennsylvania Avenue (1) Provision of legal advice and incurred expenses for the provision of NW., Annex, Washington, DC 20220. counseling on the requirements of and legal services authorized pursuant to Note to 578.507: U.S. persons who compliance with the laws of the United 578.506(a) to or on behalf of any receive payments in connection with legal States or any jurisdiction within the person whose property and interests in services authorized pursuant to 578.506(a) United States, provided that such advice property are blocked pursuant to do not need to obtain specific authorization and counseling are not provided to 578.201 or any further Executive to contract for related services that are facilitate transactions in violation of this orders relating to the national ordinarily incident to the provision of those part; emergency declared in Executive Order legal services, such as those provided by private investigators or expert witnesses, or (2) Representation of persons named 13694, of April 1, 2015, are authorized to pay for such services. Additionally, U.S. as defendants in or otherwise made from funds originating outside the persons do not need to obtain specific parties to legal, arbitration, or United States, provided that the funds authorization to provide related services that administrative proceedings before any received by U.S. persons as payment of are ordinarily incident to the provision of U.S. federal, state, or local court or professional fees and reimbursement of legal services authorized pursuant to agency; incurred expenses for the provision of 578.506(a). VerDate Sep112014 16:05 Dec 30, 2015 Jkt 238001 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 E:FRFM31DER1.SGM 31DER1 SELUR htiw DORP1NVTPS3KSD no yellekt 81758 Federal RegisterVol. 80, No. 251Thursday, December 31, 2015Rules and Regulations 578.508 Authorization of emergency United States constitute an unusual and (b) The prohibitions in subsection (a) of medical services. extraordinary threat to the national security, this section apply except to the extent The provision of nonscheduled foreign policy, and economy of the United provided by statutes, or in regulations, emergency medical services in the States. I hereby declare a national emergency orders, directives, or licenses that may be to deal with this threat. issued pursuant to this order, and United States to persons whose property Accordingly, I hereby order: notwithstanding any contract entered into or and interests in property are blocked Section 1. (a) All property and interests in any license or permit granted prior to the pursuant to 578.201 or any further property that are in the United States, that effective date of this order. Executive orders relating to the national hereafter come within the United States, or Sec. 2. I hereby determine that the making emergency declared in Executive Order that are or hereafter come within the of donations of the type of articles specified 13694 of April 1, 2015 and all receipt possession or control of any United States in section 203(b)(2) of IEEPA (50 U.S.C. of payment for such services are person of the following persons are blocked 1702(b)(2)) by, to, or for the benefit of any authorized. and may not be transferred, paid, exported, person whose property and interests in withdrawn, or otherwise dealt in: property are blocked pursuant to section 1 of Subparts FGReserved (i) any person determined by the Secretary this order would seriously impair my ability of the Treasury, in consultation with the to deal with the national emergency declared Attorney General and the Secretary of State, in this order, and I hereby prohibit such Subpart HProcedures to be responsible for or complicit in, or to donations as provided by section 1 of this have engaged in, directly or indirectly, cyber- order. 578.801 Reserved enabled activities originating from, or Sec. 3. The prohibitions in section 1 of this 578.802 Delegation by the Secretary of directed by persons located, in whole or in order include but are not limited to: the Treasury. substantial part, outside the United States (a) the making of any contribution or Any action that the Secretary of the that are reasonably likely to result in, or have provision of funds, goods, or services by, to, materially contributed to, a significant threat or for the benefit of any person whose Treasury is authorized to take pursuant to the national security, foreign policy, or property and interests in property are to Executive Order 13694 of April 1, economic health or financial stability of the blocked pursuant to this order; and 2015, and any further Executive orders United States and that have the purpose or (b) the receipt of any contribution or relating to the national emergency effect of: provision of funds, goods, or services from declared therein, may be taken by the (A) harming, or otherwise significantly any such person. Director of OFAC or by any other person compromising the provision of services by, a Sec. 4. I hereby find that the unrestricted to whom the Secretary of the Treasury computer or network of computers that immigrant and nonimmigrant entry into the has delegated authority so to act. support one or more entities in a critical United States of aliens determined to meet infrastructure sector; one or more of the criteria in section 1(a) of Subpart IPaperwork Reduction Act (B) significantly compromising the this order would be detrimental to the provision of services by one or more entities interests of the United States, and I hereby 578.901 Paperwork Reduction Act notice. in a critical infrastructure sector; suspend entry into the United States, as For approval by the Office of (C) causing a significant disruption to the immigrants or nonimmigrants, of such Management and Budget (OMB) under availability of a computer or network of persons. Such persons shall be treated as computers; or persons covered by section 1 of Proclamation the Paperwork Reduction Act of 1995 (D) causing a significant misappropriation 8693 of July 24, 2011 (Suspension of Entry (44 U.S.C. 3507) of information of funds or economic resources, trade secrets, of Aliens Subject to United Nations Security collections relating to recordkeeping personal identifiers, or financial information Council Travel Bans and International and reporting requirements, licensing for commercial or competitive advantage or Emergency Economic Powers Act Sanctions). procedures (including those pursuant to private financial gain; or Sec. 5. (a) Any transaction that evades or statements of licensing policy), and (ii) any person determined by the Secretary avoids, has the purpose of evading or other procedures, see 501.901 of this of the Treasury, in consultation with the avoiding, causes a violation of, or attempts to chapter. An agency may not conduct or Attorney General and the Secretary of State: violate any of the prohibitions set forth in sponsor, and a person is not required to (A) to be responsible for or complicit in, or this order is prohibited. to have engaged in, the receipt or use for (b) Any conspiracy formed to violate any respond to, a collection of information commercial or competitive advantage or of the prohibitions set forth in this order is unless it displays a valid control private financial gain, or by a commercial prohibited. number assigned by OMB. entity, outside the United States of trade Sec. 6. For the purposes of this order: Appendix A to Part 578Executive secrets misappropriated through cyber- (a) the term person means an individual enabled means, knowing they have been or entity; Order 13694 misappropriated, where the misappropriation (b) the term entity means a partnership, Executive Order 13694 of April 1, 2015 of such trade secrets is reasonably likely to association, trust, joint venture, corporation, result in, or has materially contributed to, a group, subgroup, or other organization; Blocking the Property of Certain significant threat to the national security, (c) the term United States person means Persons Engaging in Significant foreign policy, or economic health or any United States citizen, permanent resident Malicious Cyber-Enabled Activities financial stability of the United States; alien, entity organized under the laws of the By the authority vested in me as President (B) to have materially assisted, sponsored, United States or any jurisdiction within the by the Constitution and the laws of the or provided financial, material, or United States (including foreign branches), or United States of America, including the technological support for, or goods or any person in the United States; International Emergency Economic Powers services in support of, any activity described (d) the term critical infrastructure sector Act (50 U.S.C. 1701 et seq.) (IEEPA), the in subsections (a)(i) or (a)(ii)(A) of this means any of the designated critical National Emergencies Act (50 U.S.C. 1601 et section or any person whose property and infrastructure sectors identified in seq.) (NEA), section 212(f) of the Immigration interests in property are blocked pursuant to Presidential Policy Directive 21; and and Nationality Act of 1952 (8 U.S.C. this order; (e) the term misappropriation includes 1182(f)), and section 301 of title 3, United (C) to be owned or controlled by, or to have any taking or obtaining by improper means, States Code, acted or purported to act for or on behalf of, without permission or consent, or under false I, BARACK OBAMA, President of the directly or indirectly, any person whose pretenses. United States of America, find that the property and interests in property are Sec. 7. For those persons whose property increasing prevalence and severity of blocked pursuant to this order; or and interests in property are blocked malicious cyber-enabled activities originating (D) to have attempted to engage in any of pursuant to this order who might have a from, or directed by persons located, in the activities described in subsections (a)(i) constitutional presence in the United States, whole or in substantial part, outside the and (a)(ii)(A)(C) of this section. I find that because of the ability to transfer VerDate Sep112014 16:05 Dec 30, 2015 Jkt 238001 PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 E:FRFM31DER1.SGM 31DER1 SELUR htiw DORP1NVTPS3KSD no yellekt Federal RegisterVol. 80, No. 251Thursday, December 31, 2015Rules and Regulations 81759 funds or other assets instantaneously, prior SUMMARY: This rule establishes policy, policies and procedures is vital to the notice to such persons of measures to be assigns responsibilities, and prescribes DoD meeting its mission to man an all- taken pursuant to this order would render procedures for DoD oversight of the volunteer force with qualified citizens. those measures ineffectual. I therefore Service academies (referred to in this b. Succinct statement of legal determine that for these measures to be rule as the academies). It implements authority for the regulatory action. effective in addressing the national emergency declared in this order, there need the United States Code for the Authority: 10 U.S.C. Chapters 403, 603, be no prior notice of a listing or establishment and operation of the and 903. determination made pursuant to section 1 of United States Military Academy, the II. Summary of the Major Provisions of this order. United States Naval Academy, and the Sec. 8. The Secretary of the Treasury, in United States Air Force Academy. the Regulatory Action c tho en s Su el ct ra et ti ao rn y w ofi t Sh t ath tee , A ist t ho er rn ee by y G ae un the ora rl i za en dd t o DATES: Effective Date: This rule is The academies annually provide newly commissioned officers to each take such actions, including the effective December 31, 2015. Service who have been immersed in the promulgation of rules and regulations, and to FORFURTHERINFORMATIONCONTACT: Lt. employ all powers granted to the President Col. Keithen Washington, 703 695 history, traditions, and professional by IEEPA as may be necessary to carry out values of the Military Services and 5529. the purposes of this order. The Secretary of developed to be leaders of character, the Treasury may redelegate any of these SUPPLEMENTARYINFORMATION: dedicated to a career of professional functions to other officers and agencies of the excellence in service to the Nation. The United States Government consistent with Executive Summary accession of these officers generates a applicable law. All agencies of the United I. Purpose of the Regulatory Action core group of innovative leaders capable States Government are hereby directed to of thinking critically who will exert take all appropriate measures within their a. Purpose. This rule provides authority to carry out the provisions of this required updates to DoD policy and positive peer influence to convey and order. procedures because some policy sustain these traditions, attitudes, Sec. 9. The Secretary of the Treasury, in values, and beliefs essential to the long- changes and court decisions have had a consultation with the Attorney General and term readiness and success of the great impact on the eligibility of the Secretary of State, is hereby authorized to Military Services. submit the recurring and final reports to the potential applicants entry into a Congress on the national emergency declared military academy. All language III. Costs and Benefits in this order, consistent with section 401(c) addressing homosexuality, homosexual Administrative costs are negligible of the NEA (50 U.S.C. 1641(c)) and section acts, homosexual statements and and the benefits would be clear, concise 204(c) of IEEPA (50 U.S.C. 1703(c)). homosexual marriage has been removed Sec. 10. This order is not intended to, and rules that enable the Secretary of in accordance with the December 22, does not, create any right or benefit, Defense to ensure that the Service 2010 repeal of Dont Ask, Dont Tell substantive or procedural, enforceable at law Academies operate efficiently and meet policy, which opened military service to or in equity by any party against the United the needs of the armed forces. States, its departments, agencies, or entities, homosexuals, and the subsequent its officers, employees, or agents, or any other United States v. Windsor decision (570 Retrospective Review person. U.S. 12, 133 S. Ct. 2675 (2013), 1 U.S.C. This rule is part of DoDs Barack Obama 7; 28 U.S.C. 1738c) which found section retrospective plan, completed in August THE WHITE HOUSE, 3 of the Defense of Marriage Act 2011, under Executive Order 13563, April 1, 2015 (DOMA) unconstitutional. By removing Improving Regulation and Regulatory Dated: December 11, 2015. all references to homosexual conduct, Review, DoDs full plan and updates John E. Smith, acts or marriage as grounds for can be accessed at: http: Acting Director, Office of Foreign Assets discharge, otherwise qualified www.regulations.govdocketDetail; Control. applicants are now free to apply and dctFRPRNOSR;rpp10;po Approved: enroll in a military academy without 0;DDOD-2011-OS-0036. Dated: December 16, 2015. prejudice or fear of reprisal regardless of their sexual orientation. This rule is Public Comment Adam J. Szubin, required immediately to remove any Notice and comment are not required Acting Under Secretary, Office of Terrorism and Financial Intelligence, Department of the legal and policy restrictions which for this rule under the Administrative Treasury. would prevent a potential applicant Procedure Act because, as the rule FR Doc. 201532881 Filed 123015; 8:45 am from entry into a military academy establishes policy, assigns based solely on their sexual orientation. responsibility, and prescribes BILLING CODE P Additionally, the academies must procedures for DoD oversight of the attract, recruit and retain high achieving academies, it directly relates to a DEPARTMENT OF DEFENSE citizens who are pursuing military function of the United States undergraduate degrees critical to the (See 5 U.S.C. 553(a)(1)). However, DoD Office of the Secretary DoDs national security mission. A previously published a proposed rule on highly qualified and diverse pool of October 18, 2007 (72 FR 5905359064), 32 CFR Part 217 citizens is needed to replenish and but that version was never finalized. fortify DoDs workforce. The academies One public comment was received that Docket ID: DOD2007OS0001 finance higher education and provide was provided as a means for RIN 0790AI19 opportunities to individuals who may improvement. not otherwise have the means nor the Comment: The comment received Service Academies opportunity to pursue. Furthermore, concerned the protocol requiring that all because the Military Services provide new cadets and midshipmen to undergo AGENCY: Office of the Under Secretary of critical national security, providing Human Immunodeficiency Virus (HIV), Defense for Personnel and Readiness, them with a skilled and talented drug, and alcohol testing within 72 DoD. workforce is vitally necessary to defend hours of reception, and the requirement ACTION: Final rule. the United States. Updating these that any appointment as a cadet or VerDate Sep112014 16:05 Dec 30, 2015 Jkt 238001 PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 E:FRFM31DER1.SGM 31DER1 SELUR htiw DORP1NVTPS3KSD no yellekt","Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations 54373 plan by a firm may give rise to accountant was engaged, whichever is available on OFACs website: circumstances indicating a lack of later. In the case of an auditor that www.treas.govofac. independence with respect to the performs a plans audit for two or more Background employee benefit plan (e.g., result in the years, in evaluating independence, the accountant or firm providing services Department would not view the period On December 31, 2015, OFAC issued that are subject to audit procedures as of professional engagement as ending the Cyber-Related Sanctions part of the plans audit), and, in with the issuance of each years audit Regulations, 31 CFR part 578 (80 FR accordance with paragraph (a) of this report and recommencing with the 81752, December 31, 2015) (the section, in determining whether an beginning of the following years audit Regulations) to implement Executive accountant or accounting firm is not, in engagement. Order (E.O.) 13694 of April 1, 2015, fact, independent with respect to a Blocking the Property of Certain Signed at Washington, DC, this 26th day of particular plan, the Department will Persons Engaging in Significant August, 2022. give appropriate consideration to all Malicious Cyber-Enabled Activities (80 Ali Khawar, relevant circumstances, including FR 18077, April 2, 2015), pursuant to evidence bearing on all relationships Acting Assistant Secretary, Employee Benefits authorities delegated to the Secretary of Security Administration, U.S. Department of between the accountant or accounting the Treasury in E.O. 13694. The Labor. firm and that of the plan sponsor or any Regulations were initially issued in affiliate thereof. FR Doc. 202218898 Filed 9222; 8:45 am abbreviated form for the purpose of (3) Rendering multiple services to a BILLING CODE 451029P providing immediate guidance to the plan by a firm also may involve public. OFAC is revising the prohibited transactions under ERISA Regulations to further implement E.O. and requirements to comply with DEPARTMENT OF THE TREASURY 13694, as amended by E.O. 13757 of conditions in prohibited transaction December 28, 2016, Taking Additional Office of Foreign Assets Control exemptions such as prohibited Steps to Address the National transaction exemption in ERISA section Emergency With Respect to Significant 31 CFR Part 578 408(b)(2) for ERISA section 406(a)(1)(C) Malicious Cyber-Enabled Activities (82 service provider transactions. FR 1, January 3, 2017), as well as certain Cyber-Related Sanctions Regulations (d) Definitions. For purposes of this provisions of title II of the Countering section: AGENCY: Office of Foreign Assets Americas Adversaries Through (1) Member means all partners or Control, Treasury. Sanctions Act (Pub. L. 11544, 131 Stat. shareholder employees in the firm and ACTION: Final rule. 886 (codified in scattered sections of 22 all professional employees participating U.S.C.)) (CAATSA). OFAC is amending in the audit or located in an office of the SUMMARY: The Department of the and reissuing the Regulations as a more firm participating in a significant Treasurys Office of Foreign Assets comprehensive set of regulations that portion of the audit; the firms employee Control (OFAC) is amending the Cyber- includes additional interpretive benefit plans; or an entity whose Related Sanctions Regulations and guidance and definitions, general operating, financial, or accounting reissuing them in their entirety to licenses, and other regulatory provisions policies can be controlled by any of the further implement an April 1, 2015 that will provide further guidance to the individuals or entities described in this cyber-related Executive order, as public. Due to the number of regulatory paragraph (d)(1) or by two or more such amended by a December 28, 2016 cyber- sections being updated or added, OFAC individuals or entities acting together. related Executive order, as well as is reissuing the Regulations in their (2) Office means a reasonably distinct certain provisions of the Countering entirety. subgroup within a firm, whether Americas Adversaries Through E.O. 13694, as Amended by E.O. 13757 constituted by formal organization or Sanctions Act. This final rule replaces informal practice, in which personnel the regulations that were published in On April 1, 2015, the President, who make up the subgroup generally abbreviated form on December 31, 2015, invoking the authority of, inter alia, the serve the same group of clients or work and includes additional interpretive International Emergency Economic on the same categories of matters guidance and definitions, general Powers Act (50 U.S.C. 1701 et seq.) regardless of the physical location of the licenses, and other regulatory provisions (IEEPA), issued E.O. 13694. In E.O. individuals who comprise such that will provide further guidance to the 13694, the President determined that subgroup. Substance should govern the public. Due to the number of regulatory the increasing prevalence and severity office classification, and the expected sections being updated or added, OFAC of malicious cyber-enabled activities regular personnel interactions and is reissuing the Cyber-Related Sanctions originating from, or directed by persons assigned reporting channels of an Regulations in their entirety. located, in whole or in substantial part, individual may well be more important outside the United States constitute an DATES: This rule is effective September than an individuals physical location. unusual and extraordinary threat to the 6, 2022. (3) Period of professional engagement national security, foreign policy, and means the period beginning when an FORFURTHERINFORMATIONCONTACT: economy of the United States, and accountant either signs an initial OFAC: Assistant Director for Licensing, declared a national emergency to deal engagement letter or other agreement to 2026222480; Assistant Director for with that threat. perform the audit or begins to perform Regulatory Affairs, 2026224855; or On December 28, 2016, the President any audit, review or attest procedures Assistant Director for Sanctions issued E.O. 13757 to take additional (including planning the audit of the Compliance  Evaluation, 202622 steps to deal with the national plans financial statements), whichever 2490. emergency with respect to significant is earlier, and ending with the formal SUPPLEMENTARYINFORMATION: malicious cyber-enabled activities notification, either by the member or declared in E.O. 13694. E.O. 13757 Electronic Availability client, of the termination of the added an Annex to E.O. 13694 and professional relationship or the issuance This document and additional amended section 1 of E.O. 13694 by of the audit report for which the information concerning OFAC are replacing section 1(a) in its entirety. VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00063 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj 54374 Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations New subsection 1(a) of E.O. 13694, as (1)(a)(ii) or (iii)(A) of amended E.O. Cyber-Related CAATSA Provisions amended by E.O. 13757 (amended E.O. 13694, or any person whose property CAATSA, which was signed into law 13694), blocks, with certain and interests in property are blocked on August 2, 2017, established new exceptions, all property and interests in pursuant to amended E.O. 13694; (C) to sanctions authorities and exceptions, in property that are in the United States, be owned or controlled by, or to have addition to amending, modifying, or that come within the United States, or acted or purported to act for or on behalf otherwise affecting certain Ukraine- that are or come within the possession of, directly or indirectly, any person Russia-related Executive orders and or control of any U.S. person of: (i) the whose property and interests in directives, the Ukraine Freedom persons listed in the Annex to amended property are blocked pursuant to Support Act of 2014 (22 U.S.C. 8921 E.O. 13694; (ii) any person determined amended E.O. 13694; or (D) to have 8930) (UFSA), and the Support for the by the Secretary of the Treasury, in attempted to engage in any of the Sovereignty, Integrity, Democracy, and consultation with the Attorney General activities described in subsections Economic Stability of Ukraine Act of and the Secretary of State, to be (1)(a)(ii) and (iii)(A)(C) of amended 2014 (22 U.S.C. 89018910) (SSIDES). responsible for or complicit in, or to E.O. 13694. Title II of CAATSA also required the have engaged in, directly or indirectly, In section 2 of amended E.O. 13694, imposition of sanctions with respect to, cyber-enabled activities originating among others, activities of the Russian the President determined that the from, or directed by persons located, in Federation that undermine making of donations of the type of whole or in substantial part, outside the cybersecurity and persons who articles specified in section 203(b)(2) of United States that are reasonably likely knowingly provide financial services in IEEPA (50 U.S.C. 1702(b)(2)) by, to, or to result in, or have materially support of activities that undermine for the benefit of any person whose contributed to, a significant threat to the cybersecurity. Section 224(a)(1) of property and interests in property are national security, foreign policy, or CAATSA requires the President, on or blocked pursuant to section 1 of economic health or financial stability of after 60 days after the enactment of amended E.O. 13694 would seriously the United States and that have the CAATSA, to block all property and impair the Presidents ability to deal purpose or effect of: (A) harming, or interests in property that are in the with the national emergency declared in otherwise significantly compromising United States, that come within the amended E.O. 13694. The President the provision of services by, a computer United States, or that are or come within therefore prohibited the donation of or network of computers that support the possession or control of any U.S. such items except to the extent provided one or more entities in a critical person of any person that the President by statutes, or in regulations, orders, infrastructure sector; (B) significantly determines: (A) knowingly engages in directives, or licenses that may be compromising the provision of services significant activities undermining issued pursuant to amended E.O. 13694. by one or more entities in a critical cybersecurity against any person, infrastructure sector; (C) causing a Section 3 of amended E.O. 13694 including a democratic institution, or significant disruption to the availability provides that the prohibition on any government on behalf of the of a computer or network of computers; transaction or dealing in blocked Government of the Russian Federation; (D) causing a significant property or interests in property or (B) is owned or controlled by, or acts misappropriation of funds or economic includes the making of any contribution or purports to act for or on behalf of, resources, trade secrets, personal or provision of funds, goods, or services directly or indirectly, such a person. identifiers, or financial information for by, to, or for the benefit of any person Section 224(a)(2) of CAATSA imposes commercial or competitive advantage or whose property and interests in menu-based sanctions described in private financial gain; or (E) tampering property are blocked pursuant to section 235 of CAATSA with respect to with, altering, or causing a amended E.O. 13694, and the receipt of any person that the President misappropriation of information with any contribution or provision of funds, determines knowingly materially the purpose or effect of interfering with goods, or services from any such person. assists, sponsors, or provides financial, or undermining election processes or material, or technological support for, or Section 5 of amended E.O. 13694 institutions; and (iii) any person goods or services (except financial prohibits any transaction that evades or determined by the Secretary of the services) in support of, significant avoids, has the purpose of evading or Treasury, in consultation with the activities undermining cybersecurity avoiding, causes a violation of, or Attorney General and the Secretary of against any person, including a attempts to violate any of the State: (A) to be responsible for or democratic institution, or government prohibitions set forth in amended E.O. complicit in, or to have engaged in, the on behalf of the Government of the 13694, as well as any conspiracy formed receipt or use for commercial or Russian Federation. Section 228 of to violate such prohibitions. competitive advantage or private CAATSA added section 10 to SSIDES, financial gain, or by a commercial Section 8 of amended E.O. 13694 which requires the imposition of entity, outside the United States of trade authorizes the Secretary of the Treasury, sanctions on, among others, foreign secrets misappropriated through cyber- in consultation with the Attorney persons that the President determines, enabled means, knowing they have been General and the Secretary of State, to on or after August 2, 2017, knowingly misappropriated, where the take such actions, including the materially violate, attempt to violate, misappropriation of such trade secrets is promulgation of rules and regulations, conspire to violate, or cause a violation reasonably likely to result in, or has and to employ all powers granted to the of any license, order, regulation, or materially contributed to, a significant President by IEEPA, as may be prohibition contained in or issued threat to the national security, foreign necessary to carry out the purposes of pursuant to E.O. 13694, relating to the policy, or economy of the United States; amended E.O. 13694. Section 8 of Russian Federation, or E.O. 13757, (B) to have materially assisted, amended E.O. 13694 also provides that relating to the Russian Federation. sponsored, or provided financial, the Secretary of the Treasury may OFAC is incorporating the material, or technological support for, or redelegate any of these functions to prohibitions in section 224(a)(1) of goods or services to or in support of, any other officers and agencies of the U.S. CAATSA, as well as the exceptions activity described in subsections Government. listed in section 236 of CAATSA, into VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00064 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations 54375 the Regulations. OFAC has already incident to the maintenance of blocked transactions. New 578.407, 578.408, implemented section 10 of SSIDES, as tangible property shall be the and 578.409 discuss payments from amended by section 228 of CAATSA, in responsibility of the owners and blocked accounts to satisfy obligations, 31 CFR part 589. OFAC anticipates operators of such property, and that charitable contributions, and credit incorporating the menu-based such expenses shall not be met from extended by financial institutions to a provisions of section 224(a)(2) of blocked funds, unless otherwise person whose property and interests in CAATSA into 31 CFR chapter V at a authorized. The section further provides property are blocked, respectively. later date. that blocked property may, in OFACs Transactions otherwise prohibited by discretion, be sold or liquidated and the the Regulations but found to be Current Regulatory Action net proceeds placed in a blocked consistent with U.S. policy may be In furtherance of the purposes of interest-bearing account in the name of authorized by one of the general amended E.O. 13694, E.O. 13757, and the owner of the property. licenses contained in subpart E of the the provisions of CAATSA described Section 578.205 of subpart B prohibits Regulations or by a specific license above, OFAC is reissuing the any transaction that evades or avoids, issued pursuant to the procedures Regulations. The Regulations implement has the purpose of evading or avoiding, described in subpart E of 31 CFR part targeted sanctions that are directed at causes a violation of, or attempts to 501. OFAC is redesignating the persons determined to meet the criteria violate any of the prohibitions set forth authorization for the provision of set forth in 578.201 of the Regulations, in 578.201 of the Regulations, and any certain legal services previously in as well as sanctions that may be set conspiracy formed to violate such 578.506 as 578.507, redesignating the forth in any future Executive orders prohibitions. Section 578.206 of subpart authorization for payments for legal issued pursuant to the national B details transactions that are exempt services from funds originating outside emergency declared in E.O. 13694. The from the prohibitions of the Regulations the United States previously in sanctions in amended E.O. 13694 and pursuant to section 203(b)(1) of IEEPA 578.507 as 578.508, and CAATSA apply where the transaction or (50 U.S.C. 1702(b)(1)), which relates to redesignating the authorization for service in question involves property or personal communications; section 236 emergency medical services previously interests in property that are blocked of CAATSA (22 U.S.C. 9530), which in 578.508 as 578.509. OFAC is pursuant to these sanctions. relates to U.S. intelligence activities; adding three new general licenses to the Subpart A of the Regulations clarifies and section 237 of CAATSA (22 U.S.C. Regulations: a general license the relation of this part to other laws 9531), which relates to activities of the authorizing the investment and and regulations. Subpart B of the National Aeronautics and Space reinvestment of certain funds in new Regulations implements the Administration. 578.506, a general license authorizing prohibitions contained in sections 1 and In subpart C of the Regulations, new the official business of the U.S. 2 of amended E.O. 13694, as well as the definitions are being added to other key government in 578.510, and a general prohibitions contained in any further terms used throughout the Regulations. license authorizing certain official Executive orders issued pursuant to the Because these new definitions were business of international entities and national emergency declared in E.O. inserted in alphabetical order, the organizations in 578.511. General 13694. See, e.g., 578.201 and 578.205. definitions that were in the prior licenses and statements of licensing Persons identified in the Annex to abbreviated set of regulations have been policy relating to this part also may be amended E.O. 13694, designated by or renumbered. Subpart D contains available through the Sanctions Related under the authority of the Secretary of interpretive sections regarding the to Significant Malicious Cyber-Enabled the Treasury pursuant to amended E.O. Regulations. OFAC is redesignating the Activities page on OFACs website: 13694, or otherwise subject to the interpretive on setoffs previously at www.treas.govofac. blocking provisions of amended E.O. 578.405 as 578.410. New 578.405 Subpart F of the Regulations refers to 13694, or the blocking provisions of explains that the prohibition on subpart C of part 501 for recordkeeping section 224 of CAATSA, as well as transactions with blocked persons in and reporting requirements. Subpart G persons who are blocked pursuant to 578.201 applies to services performed of the Regulations describes the civil any further Executive orders issued by U.S. persons on behalf of a person and criminal penalties applicable to pursuant to the national emergency whose property and interests in violations of the Regulations, as well as declared in E.O. 13694, are referred to property are blocked pursuant to the procedures governing the potential throughout the Regulations as persons 578.201, as well as to services received imposition of a civil monetary penalty whose property and interests in by U.S. persons where the service is or issuance of a Finding of Violation. property are blocked pursuant to performed by, or at the direction of, a Subpart G also refers to appendix A of 578.201. The names of such persons person whose property and interests in part 501 for a more complete are published on OFACs Specially property are blocked pursuant to description of these procedures. Designated Nationals and Blocked 578.201. OFAC is redesignating the Subpart H of the Regulations refers to Persons List (SDN List), which is section previously at 578.406, subpart E of part 501 for applicable accessible via OFACs website. Those regarding entities owned by persons provisions relating to administrative names also are published in the Federal whose property and interests in procedures and contains a delegation of Register as they are added to the SDN property are blocked, as 578.411. New certain authorities of the Secretary of List. 578.411 explains that the property and the Treasury. Subpart I of the Sections 578.202 and 578.203 of interests in property of an entity are Regulations sets forth a Paperwork subpart B detail the effect of transfers of blocked if the entity is directly or Reduction Act notice. blocked property in violation of the indirectly owned, whether individually Public Participation Regulations and set forth the or in the aggregate, 50 percent or more requirement to hold blocked funds, such by one or more persons whose property Because the Regulations involve a as currency, bank deposits, or liquidated and interests in property are blocked, foreign affairs function, the provisions financial obligations, in interest-bearing whether or not the entity itself is of E.O. 12866 of September 30, 1993, blocked accounts. Section 578.204 of incorporated into OFACs SDN List. Regulatory Planning and Review (58 subpart B provides that all expenses New 578.406 discusses offshore FR 51735, October 4, 1993), and the VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00065 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj 54376 Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations Administrative Procedure Act (5 U.S.C. 578.310 Licenses; general and specific. Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 553) requiring notice of proposed 578.311 Misappropriation. 50 U.S.C. 16011651, 17011706; Pub. L. rulemaking, opportunity for public 578.312 OFAC. 101410, 104 Stat. 890, as amended (28 participation, and delay in effective date 578.313 Person. U.S.C. 2461 note); Pub. L. 11544, 131 Stat. 578.314 Property; property interest. 886 (codified in scattered sections of 22 are inapplicable. Because no notice of 578.315 Significant activities undermining U.S.C.); E.O. 13694, 80 FR 18077, 3 CFR 2015 proposed rulemaking is required for this cybersecurity. Comp., p. 297; E.O. 13757, 82 FR 1, 3 CFR rule, the Regulatory Flexibility Act (5 578.316 Transfer. 2016 Comp., p. 659. U.S.C. 601612) does not apply. 578.317 United States. 578.318 United States person; U.S. person. Subpart ARelation of This Part to Paperwork Reduction Act 578.319 U.S. financial institution. Other Laws and Regulations The collections of information related to the Regulations are contained in 31 Subpart DInterpretations 578.101 Relation of this part to other CFR part 501 (the Reporting, 578.401 Reference to amended sections. laws and regulations. Procedures and Penalties Regulations). 578.402 Effect of amendment. This part is separate from, and Pursuant to the Paperwork Reduction 578.403 Termination and acquisition of an independent of, the other parts of this Act of 1995 (44 U.S.C. 3507), those interest in blocked property. chapter, with the exception of part 501 578.404 Transactions ordinarily incident to collections of information have been of this chapter, the recordkeeping and a licensed transaction. approved by the Office of Management reporting requirements and license 578.405 Provision and receipt of services. and Budget under control number 1505 578.406 Offshore transactions involving application and other procedures of 0164. An agency may not conduct or blocked property. which apply to this part. Actions taken sponsor, and a person is not required to 578.407 Payments from blocked accounts to pursuant to part 501 of this chapter with respond to, a collection of information satisfy obligations prohibited. respect to the prohibitions contained in unless the collection of information 578.408 Charitable contributions. this part are considered actions taken displays a valid control number. 578.409 Credit extended and cards issued pursuant to this part. Differing foreign by financial institutions to a person policy and national security List of Subjects in 31 CFR Part 578 whose property and interests in property circumstances may result in differing are blocked. Administrative practice and interpretations of similar language 578.410 Setoffs prohibited. procedure, Banks, Banking, Blocking of among the parts of this chapter. No 578.411 Entities owned by one or more assets, Critical infrastructure, Cyber, license or authorization contained in or persons whose property and interests in Cybersecurity, Credit, Foreign trade, property are blocked. issued pursuant to those other parts Penalties, Reporting and recordkeeping authorizes any transaction prohibited by Subpart ELicenses, Authorizations, and requirements, Sanctions, Securities, this part. No license or authorization Statements of Licensing Policy Services. contained in or issued pursuant to any  For the reasons set forth in the 578.501 General and specific licensing other provision of law or regulation preamble, OFAC revises 31 CFR part procedures. authorizes any transaction prohibited by 578.502 Effect of license or other 578 to read as follows: this part. No license or authorization authorization. contained in or issued pursuant to this 578.503 Exclusion from licenses. PART 578CYBER-RELATED part relieves the involved parties from 578.504 Payments and transfers to blocked SANCTIONS REGULATIONS accounts in U.S. financial institutions. complying with any other applicable 578.505 Entries in certain accounts for laws or regulations. Subpart ARelation of This Part to Other normal service charges. Laws and Regulations 578.506 Investment and reinvestment of Subpart BProhibitions Sec. certain funds. 578.101 Relation of this part to other laws 578.507 Provision of certain legal services. 578.201 Prohibited transactions. and regulations. 578.508 Payments for legal services from (a) All property and interests in Subpart BProhibitions funds originating outside the United property that are in the United States, States. that come within the United States, or 578.201 Prohibited transactions. 578.509 Emergency medical services. that are or come within the possession 578.202 Effect of transfers violating the 578.510 Official business of the United or control of any U.S. person of the provisions of this part. States Government. 578.203 Holding of funds in interest- 578.511 Official business of certain following persons are blocked and may bearing accounts; investment and international organizations and entities. not be transferred, paid, exported, reinvestment. withdrawn, or otherwise dealt in: 578.204 Expenses of maintaining blocked Subpart FReports (1) Annex to E.O. 13694, as amended tangible property; liquidation of blocked 578.601 Records and reports. by E.O. 13757 (amended E.O. 13694). property. The persons listed in the Annex to 578.205 Evasions; attempts; causing Subpart GPenalties and Findings of violations; conspiracies. Violation amended E.O. 13694; (2) Amended E.O. 13694. Any person 578.206 Exempt transactions. 578.701 Penalties. determined by the Secretary of the 578.702 Pre-Penalty Notice; settlement. Subpart CGeneral Definitions Treasury, in consultation with the 578.703 Penalty imposition. 578.300 Applicability of definitions. 578.704 Administrative collection; referral Attorney General and the Secretary of 578.301 Blocked account; blocked property. to United States Department of Justice. State: 578.302 Critical infrastructure sector. 578.705 Findings of Violation. (i) To be responsible for or complicit 578.303 Cyber-enabled activities. in, or to have engaged in, directly or 578.304 Effective date. Subpart HProcedures indirectly, cyber-enabled activities 578.305 Entity. 578.801 Procedures. originating from, or directed by persons 578.306 Financial, material, or 578.802 Delegation of certain authorities of located, in whole or in substantial part, technological support. the Secretary of the Treasury. 578.307 Foreign person. outside the United States that are 578.308 Reserved Subpart IPaperwork Reduction Act reasonably likely to result in, or have 578.309 Interest. 578.901 Paperwork Reduction Act notice. materially contributed to, a significant VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00066 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations 54377 threat to the national security, foreign consultation with the Secretary of State, to amended E.O. 13694, or any further policy, or economic health or financial determines: Executive orders issued pursuant to the stability of the United States and that (i) Knowingly engages in significant national emergency declared therein, whose have the purpose or effect of: activities undermining cybersecurity property and interests in property therefore (A) Harming, or otherwise against any person, including a are blocked pursuant to this section, are published in the Federal Register and significantly compromising the democratic institution, or government incorporated into OFACs Specially provision of services by, a computer or on behalf of the Government of the Designated Nationals and Blocked Persons network of computers that support one Russian Federation; or List (SDN List) using the following or more entities in a critical (ii) Is owned or controlled by, or acts identifiers: for amended E.O. 13694: infrastructure sector; or purports to act for or on behalf of, CYBER2; and for any further Executive (B) Significantly compromising the directly or indirectly, a person orders issued pursuant to the national provision of services by one or more described in paragraph (a)(3)(i) of this emergency declared in E.O. 13694: using the entities in a critical infrastructure section. identifier formulation CYBERE.O.E.O. (b) The prohibitions in paragraph (a) number pursuant to which the persons sector; of this section include prohibitions on property and interests in property are (C) Causing a significant disruption to the following transactions: blocked. Persons designated pursuant to the availability of a computer or (1) The making of any contribution or Section 224(a)(1) of CAATSA will have the network of computers; provision of funds, goods, or services identifier CAATSARUSSIA. Certain (D) Causing a significant transactions with persons blocked pursuant by, to, or for the benefit of any person misappropriation of funds or economic to paragraph (a) of this section relating to the whose property and interests in resources, trade secrets, personal Russian Federation may result in the property are blocked pursuant to identifiers, or financial information for imposition of secondary sanctions, and paragraph (a) of this section; and therefore such blocked persons entries on commercial or competitive advantage or (2) The receipt of any contribution or the SDN List will include the descriptive private financial gain; or provision of funds, goods, or services prefix text Secondary sanctions risk: (E) Tampering with, altering, or from any person whose property and followed by information about the applicable causing a misappropriation of interests in property are blocked secondary sanctions authority. The SDN List information with the purpose or effect pursuant to paragraph (a) of this section. is accessible through the following page on of interfering with or undermining (c) Unless authorized by this part or OFACs website: www.treas.govsdn. election processes or institutions; by a specific license expressly referring Additional information pertaining to the SDN (ii) To be responsible for or complicit to this part, any dealing in securities (or List can be found in appendix A to this in, or to have engaged in, the receipt or evidence thereof) held within the chapter. See 578.411 concerning entities that may not be listed on the SDN List but use for commercial or competitive possession or control of a U.S. person whose property and interests in property are advantage or private financial gain, or and either registered or inscribed in the nevertheless blocked pursuant to this section. by a commercial entity, outside the name of, or known to be held for the United States of trade secrets benefit of, or issued by, any person Note 2 to 578.201. The International misappropriated through cyber-enabled whose property and interests in Emergency Economic Powers Act (50 U.S.C. means, knowing they have been property are blocked pursuant to 1701 et seq.) in section 203 (50 U.S.C. 1702) misappropriated, where the paragraph (a) of this section is authorizes the blocking of property and misappropriation of such trade secrets is prohibited. This prohibition includes interests in property of a person during the pendency of an investigation. The names of reasonably likely to result in, or has the transfer (including the transfer on persons whose property and interests in materially contributed to, a significant the books of any issuer or agent thereof), property are blocked pending investigation threat to the national security, foreign disposition, transportation, importation, pursuant to this section also are published in policy, or economy of the United States; exportation, or withdrawal of, or the the Federal Register and incorporated into (iii) To have materially assisted, endorsement or guaranty of signatures the SDN List using the following identifiers: sponsored, or provided financial, on, any securities on or after the for amended E.O. 13694: BPICYBER2; material, or technological support for, or effective date. This prohibition applies for CAATSA: BPICAATSARUSSIA; goods or services to or in support of, any irrespective of the fact that at any time and for any further Executive orders issued activity described in paragraph (a)(2)(i) (whether prior to, on, or subsequent to pursuant to the national emergency declared in E.O. 13694: BPICYBERE.O.E.O. or (ii) of this section or any person the effective date) the registered or number pursuant to which the persons whose property and interests in inscribed owner of any such securities property and interests in property are property are blocked pursuant to may have or might appear to have blocked pending investigation. paragraph (a)(1) of this section or this assigned, transferred, or otherwise paragraph (a)(2); disposed of the securities. Note 3 to 578.201. Sections 501.806 and (iv) To be owned or controlled by, or (d) The prohibitions in paragraph (a) 501.807 of this chapter describe the to have acted or purported to act for or of this section apply except to the extent procedures to be followed by persons on behalf of, directly or indirectly, any provided by statutes, or in regulations, seeking, respectively, the unblocking of funds that they believe were blocked due to person whose property and interests in orders, directives, or licenses that may mistaken identity, or administrative property are blocked pursuant to be issued pursuant to this part, and reconsideration of their status as persons paragraph (a)(1) of this section or this notwithstanding any contract entered whose property and interests in property are paragraph (a)(2); or into or any license or permit granted blocked pursuant to this section. (v) To have attempted to engage in prior to the effective date. any of the activities described in (e) All transactions prohibited Note 4 to 578.201. Section 216 of paragraphs (a)(2)(i) through (iv) of this pursuant to any Executive order issued CAATSA (22 U.S.C. 9511) requires section; and after December 28, 2016, pursuant to the congressional review prior to the termination (3) Section 224(a)(1) of the Countering national emergency declared in E.O. of sanctions imposed pursuant to amended E.O. 13694. Section 222 of CAATSA (22 Americas Adversaries Through 13694 of April 1, 2015, are prohibited U.S.C. 9522) describes the congressional Sanctions Act (22 U.S.C. 9524) pursuant to this part. notification required prior to the termination (CAATSA). Any person that the Note 1 to 578.201. The names of persons of sanctions imposed pursuant to amended Secretary of the Treasury, in designated or identified as blocked pursuant E.O. 13694 and CAATSA section 224. VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00067 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj 54378 Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations 578.202 Effect of transfers violating the full the circumstances relating to such (e) Blocked funds held in instruments provisions of this part. transfer promptly upon discovery that: the maturity of which exceeds 180 days (a) Any transfer after the effective date (i) Such transfer was in violation of at the time the funds become subject to that is in violation of any provision of the provisions of this part or any 578.201 may continue to be held until this part or of any regulation, order, regulation, ruling, instruction, license, maturity in the original instrument, directive, ruling, instruction, or license or other directive or authorization provided any interest, earnings, or other issued pursuant to this part, and that issued pursuant to this part; proceeds derived therefrom are paid involves any property or interest in (ii) Such transfer was not licensed or into a blocked interest-bearing account property blocked pursuant to 578.201, authorized by OFAC; or in accordance with paragraph (a) or (f) is null and void and shall not be the (iii) If a license did purport to cover of this section. basis for the assertion or recognition of the transfer, such license had been (f) Blocked funds held in accounts or any interest in or right, remedy, power, obtained by misrepresentation of a third instruments outside the United States at or privilege with respect to such party or withholding of material facts or the time the funds become subject to property or interest in property. was otherwise fraudulently obtained. 578.201 may continue to be held in the (b) No transfer before the effective (e) The filing of a report in accordance same type of accounts or instruments, date shall be the basis for the assertion with the provisions of paragraph (d)(3) provided the funds earn interest at rates or recognition of any right, remedy, of this section shall not be deemed that are commercially reasonable. power, or privilege with respect to, or evidence that the terms of paragraphs (g) This section does not create an any interest in, any property or interest (d)(1) and (2) of this section have been affirmative obligation for the holder of in property blocked pursuant to satisfied. blocked tangible property, such as real 578.201, unless the person who holds (f) Unless licensed pursuant to this or personal property, or of other blocked or maintains such property, prior to that part, any attachment, judgment, decree, property, such as debt or equity date, had written notice of the transfer lien, execution, garnishment, or other securities, to sell or liquidate such or by any written evidence had judicial process is null and void with property. However, OFAC may issue recognized such transfer. respect to any property or interest in licenses permitting or directing such (c) Unless otherwise provided, a property blocked pursuant to 578.201. sales or liquidation in appropriate cases. license or other authorization issued by (h) Funds blocked pursuant to OFAC before, during, or after a transfer 578.203 Holding of funds in interest- 578.201 may not be held, invested, or shall validate such transfer or make it bearing accounts; investment and reinvested in a manner that provides enforceable to the same extent that it reinvestment. financial or economic benefit or access would be valid or enforceable but for (a) Except as provided in paragraph to any person whose property and the provisions of this part and any (e) or (f) of this section, or as otherwise interests in property are blocked regulation, order, directive, ruling, directed or authorized by OFAC, any pursuant to 578.201, nor may their instruction, or license issued pursuant U.S. person holding funds, such as holder cooperate in or facilitate the to this part. currency, bank deposits, or liquidated pledging or other attempted use as (d) Transfers of property that financial obligations, subject to collateral of blocked funds or other otherwise would be null and void or 578.201 shall hold or place such funds assets. unenforceable by virtue of the in a blocked interest-bearing account provisions of this section shall not be located in the United States. 578.204 Expenses of maintaining deemed to be null and void or (b)(1) For the purposes of this section, blocked tangible property; liquidation of unenforceable as to any person with the term blocked interest-bearing blocked property. whom such property is or was held or account means a blocked account: (a) Except as otherwise authorized, maintained (and as to such person only) (i) In a federally insured U.S. bank, and notwithstanding the existence of in cases in which such person is able to thrift institution, or credit union, any rights or obligations conferred or establish to the satisfaction of OFAC provided the funds are earning interest imposed by any international agreement each of the following: at rates that are commercially or contract entered into or any license (1) Such transfer did not represent a reasonable; or or permit granted prior to the effective willful violation of the provisions of this (ii) With a broker or dealer registered date, all expenses incident to the part by the person with whom such with the Securities and Exchange maintenance of tangible property property is or was held or maintained Commission under the Securities blocked pursuant to 578.201 shall be (and as to such person only); Exchange Act of 1934 (15 U.S.C. 78a et the responsibility of the owners or (2) The person with whom such seq.), provided the funds are invested in operators of such property, which property is or was held or maintained a money market fund or in U.S. expenses shall not be met from blocked did not have reasonable cause to know Treasury bills. funds. or suspect, in view of all the facts and (2) Funds held or placed in a blocked (b) Property blocked pursuant to circumstances known or available to account pursuant to paragraph (a) of this 578.201 may, in the discretion of such person, that such transfer required section may not be invested in OFAC, be sold or liquidated and the net a license or authorization issued instruments the maturity of which proceeds placed in a blocked interest- pursuant to this part and was not so exceeds 180 days. bearing account in the name of the licensed or authorized, or, if a license or (c) For the purposes of this section, a owner of the property. authorization did purport to cover the rate is commercially reasonable if it is transfer, that such license or the rate currently offered to other 578.205 Evasions; attempts; causing authorization had been obtained by depositors on deposits or instruments of violations; conspiracies. misrepresentation of a third party or comparable size and maturity. (a) Any transaction on or after the withholding of material facts or was (d) For the purposes of this section, if effective date that evades or avoids, has otherwise fraudulently obtained; and interest is credited to a separate blocked the purpose of evading or avoiding, (3) The person with whom such account or subaccount, the name of the causes a violation of, or attempts to property is or was held or maintained account party on each account must be violate any of the prohibitions set forth filed with OFAC a report setting forth in the same. in this part is prohibited. VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00068 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations 54379 (b) Any conspiracy formed to violate Presidential Policy Directive 21 of 578.308 Reserved the prohibitions set forth in this part is February 12, 2013. 578.309 Interest. prohibited. 578.303 Cyber-enabled activities. Except as otherwise provided in this 578.206 Exempt transactions. part, the term interest, when used with The term cyber-enabled activities (a) Personal communications. The respect to property (e.g., an interest in includes any act that is primarily prohibitions contained in this part do property), means an interest of any accomplished through or facilitated by not apply to any postal, telegraphic, nature whatsoever, direct or indirect. computers or other electronic devices. telephonic, or other personal 578.310 Licenses; general and specific. communication that does not involve 578.304 Effective date. the transfer of anything of value. (a) Except as otherwise provided in (b) U.S. intelligence activities. The (a) The term effective date refers to this part, the term license means any prohibitions contained in this part do the effective date of the applicable license or authorization contained in or not apply to activities subject to the prohibitions and directives contained in issued pursuant to this part. reporting requirements under title V of this part as follows: (b) The term general license means the National Security Act of 1947 (50 (1) With respect to a person listed in any license or authorization the terms of U.S.C. 3091 et seq.), or any authorized the Annex to E.O. 13694, as amended by which are set forth in subpart E of this intelligence activities of the United E.O. 13757, 12:01 eastern standard time, part or made available on OFACs States. December 29, 2016. website: www.treas.govofac. (c) Activities of the National (c) The term specific license means Aeronautics and Space Administration. (2) With respect to a person whose any license or authorization issued The prohibitions contained in this part property and interests in property are pursuant to this part but not set forth in do not apply to activities of the National otherwise blocked pursuant to subpart E of this part or made available Aeronautics and Space Administration 578.201, the earlier of the date of on OFACs website: www.treas.govofac. actual or constructive notice that such (NASA), including the supply by any Note 1 to 578.310. See 501.801 of this persons property and interests in entity of the Russian Federation of any chapter on licensing procedures. property are blocked. product or service, or the procurement of such product or service by any (b) For the purposes of this section, 578.311 Misappropriation. contractor or subcontractor of the constructive notice is the date that a The term misappropriation includes United States or any other entity, notice of the blocking of the relevant any taking or obtaining by improper relating to or in connection with any persons property and interests in means, without permission or consent, space launch conducted for NASA or property is published in the Federal or under false pretenses. any other non-Department of Defense Register. customer. 578.312 OFAC. 578.305 Entity. The term OFAC means the Subpart CGeneral Definitions The term entity means a partnership, Department of the Treasurys Office of 578.300 Applicability of definitions. association, trust, joint venture, Foreign Assets Control. The definitions in this subpart apply corporation, group, subgroup, or other 578.313 Person. throughout the entire part. organization. The term person means an individual 578.301 Blocked account; blocked 578.306 Financial, material, or or entity. property. technological support. 578.314 Property; property interest. The terms blocked account and The term financial, material, or The terms property and property blocked property mean any account or technological support, as used in this interest include money, checks, drafts, property subject to the prohibitions in part, means any property, tangible or bullion, bank deposits, savings 578.201 held in the name of a person intangible, including currency, financial accounts, debts, indebtedness, whose property and interests in instruments, securities, or any other obligations, notes, guarantees, property are blocked pursuant to transmission of value; weapons or debentures, stocks, bonds, coupons, any 578.201, or in which such person has related materiel; chemical or biological other financial instruments, bankers an interest, and with respect to which agents; explosives; false documentation acceptances, mortgages, pledges, liens payments, transfers, exportations, or identification; communications or other rights in the nature of security, withdrawals, or other dealings may not equipment; computers; electronic or warehouse receipts, bills of lading, trust be made or effected except pursuant to other devices or equipment; receipts, bills of sale, any other a license or other authorization from technologies; lodging; safe houses; evidences of title, ownership, or OFAC expressly authorizing such facilities; vehicles or other means of indebtedness, letters of credit and any action. transportation; or goods. Technologies documents relating to any rights or Note 1 to 578.301. See 578.411 as used in this section means specific obligations thereunder, powers of concerning the blocked status of property information necessary for the attorney, goods, wares, merchandise, and interests in property of an entity that is development, production, or use of a chattels, stocks on hand, ships, goods on directly or indirectly owned, whether individually or in the aggregate, 50 percent product, including related technical ships, real estate mortgages, deeds of or more by one or more persons whose data such as blueprints, plans, diagrams, trust, vendors sales agreements, land property and interests in property are models, formulae, tables, engineering contracts, leaseholds, ground rents, real blocked pursuant to 578.201. designs and specifications, manuals, or estate and any other interest therein, other recorded instructions. options, negotiable instruments, trade 578.302 Critical infrastructure sector. acceptances, royalties, book accounts, 578.307 Foreign person. The term critical infrastructure sector accounts payable, judgments, patents, means any of the designated critical The term foreign person means any trademarks or copyrights, insurance infrastructure sectors identified in person that is not a U.S. person. policies, safe deposit boxes and their VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00069 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj 54380 Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations contents, annuities, pooling agreements, 578.317 United States. omitted, or any civil or criminal services of any nature whatsoever, The term United States means the proceeding commenced or pending, contracts of any nature whatsoever, and United States, its territories and prior to such amendment, modification, any other property, real, personal, or possessions, and all areas under the or revocation. All penalties, forfeitures, mixed, tangible or intangible, or interest jurisdiction or authority thereof. and liabilities under any such order, or interests therein, present, future, or regulation, ruling, instruction, or license 578.318 United States person; U.S. contingent. continue and may be enforced as if such person. amendment, modification, or revocation 578.315 Significant activities The term United States person or U.S. had not been made. undermining cybersecurity. person means any United States citizen, permanent resident alien, entity 578.403 Termination and acquisition of The term significant activities organized under the laws of the United an interest in blocked property. undermining cybersecurity includes: States or any jurisdiction within the (a) Whenever a transaction licensed or significant efforts to deny access to or United States (including foreign authorized by or pursuant to this part degrade, disrupt, or destroy an branches), or any person in the United results in the transfer of property information and communications States. (including any property interest) away technology system or network; or to from a person whose property and exfiltrate, degrade, corrupt, destroy, or 578.319 U.S. financial institution. interests in property are blocked release information from such a system The term U.S. financial institution pursuant to 578.201, such property or network without authorization for means any U.S. entity (including its shall no longer be deemed to be purposes of conducting influence foreign branches) that is engaged in the property blocked pursuant to 578.201, operations; or causing a significant business of accepting deposits, making, unless there exists in the property misappropriation of funds, economic granting, transferring, holding, or another interest that is blocked pursuant resources, trade secrets, personal brokering loans or credits, or purchasing to 578.201, the transfer of which has identifications, or financial information or selling foreign exchange, securities, not been effected pursuant to license or for commercial or competitive futures or options, or procuring other authorization. advantage or private financial gain; purchasers and sellers thereof, as (b) Unless otherwise specifically significant destructive malware attacks; principal or agent. It includes provided in a license or authorization and significant denial of service depository institutions, banks, savings issued pursuant to this part, if property activities. banks, money services businesses, (including any property interest) is operators of credit card systems, trust 578.316 Transfer. transferred or attempted to be companies, insurance companies, transferred to a person whose property The term transfer means any actual or securities brokers and dealers, futures and interests in property are blocked purported act or transaction, whether or and options brokers and dealers, pursuant to 578.201, such property not evidenced by writing, and whether forward contract and foreign exchange shall be deemed to be property in which or not done or performed within the merchants, securities and commodities such person has an interest and United States, the purpose, intent, or exchanges, clearing corporations, therefore blocked. effect of which is to create, surrender, investment companies, employee release, convey, transfer, or alter, benefit plans, dealers in precious 578.404 Transactions ordinarily incident directly or indirectly, any right, remedy, metals, stones, or jewels, and U.S. to a licensed transaction. power, privilege, or interest with respect holding companies, U.S. affiliates, or (a) Any transaction ordinarily to any property. Without limitation on U.S. subsidiaries of any of the foregoing. incident to a licensed transaction and the foregoing, it shall include the This term includes those branches, necessary to give effect thereto is also making, execution, or delivery of any offices, and agencies of foreign financial authorized, except: assignment, power, conveyance, check, institutions that are located in the (1) An ordinarily incident transaction, declaration, deed, deed of trust, power United States, but not such institutions not explicitly authorized within the of attorney, power of appointment, bill foreign branches, offices, or agencies. terms of the license, by or with a person of sale, mortgage, receipt, agreement, whose property and interests in Subpart DInterpretations contract, certificate, gift, sale, affidavit, property are blocked pursuant to or statement; the making of any 578.401 Reference to amended sections. 578.201; or payment; the setting off of any (2) An ordinarily incident transaction, (a) Reference to any section in this obligation or credit; the appointment of not explicitly authorized within the part is a reference to the same as any agent, trustee, or fiduciary; the terms of the license, involving a debit to currently amended, unless the reference creation or transfer of any lien; the a blocked account or a transfer of includes a specific date. See 44 U.S.C. issuance, docketing, filing, or levy of or blocked property. 1510. under any judgment, decree, (b) For example, a license authorizing (b) Reference to any ruling, order, attachment, injunction, execution, or a person to complete a securities sale instruction, direction, or license issued other judicial or administrative process involving Company A, whose property pursuant to this part is a reference to the or order, or the service of any and interests in property are blocked same as currently amended unless garnishment; the acquisition of any pursuant to 578.201, also authorizes otherwise so specified. interest of any nature whatsoever by other persons to engage in activities that reason of a judgment or decree of any 578.402 Effect of amendment. are ordinarily incident and necessary to foreign country; the fulfillment of any Unless otherwise specifically complete the sale, including condition; the exercise of any power of provided, any amendment, transactions by the buyer, broker, appointment, power of attorney, or modification, or revocation of any transfer agents, and banks, provided that other power; or the acquisition, provision in or appendix to this part or such other persons are not themselves disposition, transportation, importation, chapter or of any order, regulation, persons whose property and interests in exportation, or withdrawal of any ruling, instruction, or license issued by property are blocked pursuant to security. OFAC does not affect any act done or 578.201. VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00070 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations 54381 578.405 Provision and receipt of services, or technology, including Subpart ELicenses, Authorizations, services. contributions to relieve human and Statements of Licensing Policy (a) The prohibitions contained in suffering, such as food, clothing, or 578.201 apply to services performed in medicine, may be made by, to, or for the 578.501 General and specific licensing procedures. the United States or by U.S. persons, benefit of, or received from, a person wherever located: whose property and interests in For provisions relating to licensing (1) On behalf of or for the benefit of property are blocked pursuant to procedures, see part 501, subpart E, of any person whose property and interests 578.201. For the purposes of this part, this chapter. Licensing actions taken in property are blocked pursuant to a contribution is made by, to, or for the pursuant to part 501 of this chapter with 578.201; or benefit of, or received from, a person respect to the prohibitions contained in (2) With respect to property interests this part are considered actions taken whose property and interests in of any person whose property and pursuant to this part. General licenses property are blocked pursuant to interests in property are blocked and statements of licensing policy 578.201 if made by, to, or in the name pursuant to 578.201. relating to this part also may be of, or received from or in the name of, (b) The prohibitions on transactions available through the Sanctions Related such a person; if made by, to, or in the contained in 578.201 apply to services to Significant Malicious Cyber-Enabled name of, or received from or in the received in the United States or by U.S. Activities page on OFACs website: name of, an entity or individual acting persons, wherever located, where the www.treas.govofac. for or on behalf of, or owned or service is performed by, or at the controlled by, such a person; or if made Note 1 to 578.501. Section 216 of the direction of, a person whose property Countering Americas Adversaries Through in an attempt to violate, to evade, or to and interests in property are blocked Sanctions Act (22 U.S.C. 9511) requires avoid the bar on the provision of pursuant to 578.201. congressional review prior to the issuance of (c) For example, U.S. persons may contributions by, to, or for the benefit of a license that significantly alters the United not, except as authorized by or pursuant such a person, or the receipt of States foreign policy with regard to the contributions from such a person. Russian Federation. to this part, provide legal, accounting, financial, brokering, freight forwarding, 578.409 Credit extended and cards 578.502 Effect of license or other transportation, public relations, or other issued by financial institutions to a person authorization. services to any person whose property whose property and interests in property (a) No license or other authorization and interests in property are blocked are blocked. contained in this part, or otherwise pursuant to 578.201, or negotiate with The prohibition in 578.201 on issued by OFAC, authorizes or validates or enter into contracts signed by a dealing in property subject to that any transaction effected prior to the person whose property and interests in section prohibits U.S. financial issuance of such license or other property are blocked pursuant to institutions from performing under any authorization, unless specifically 578.201. existing credit agreements, including provided in such license or Note 1 to 578.405. See 578.507 and charge cards, debit cards, or other credit authorization. 578.509 for general licenses authorizing the facilities issued by a financial (b) No regulation, ruling, instruction, provision of certain legal and emergency institution to a person whose property or license authorizes any transaction medical services. and interests in property are blocked prohibited under this part unless the 578.406 Offshore transactions involving pursuant to 578.201. regulation, ruling, instruction, or license is issued by OFAC and specifically blocked property. 578.410 Setoffs prohibited. refers to this part. No regulation, ruling, The prohibitions in 578.201 on instruction, or license referring to this transactions or dealings involving A setoff against blocked property part shall be deemed to authorize any blocked property, as defined in (including a blocked account), whether transaction prohibited by any other part 578.301, apply to transactions by any by a U.S. financial institution or other of this chapter unless the regulation, U.S. person in a location outside the U.S. person, is a prohibited transfer ruling, instruction, or license United States. under 578.201 if effected after the specifically refers to such part. effective date. 578.407 Payments from blocked (c) Any regulation, ruling, instruction, accounts to satisfy obligations prohibited. 578.411 Entities owned by one or more or license authorizing any transaction Pursuant to 578.201, no debits may persons whose property and interests in prohibited under this part has the effect be made to a blocked account to pay property are blocked. of removing a prohibition contained in obligations to U.S. persons or other this part from the transaction, but only Persons whose property and interests persons, except as authorized by or to the extent specifically stated by its in property are blocked pursuant to pursuant to this part. terms. Unless the regulation, ruling, 578.201 have an interest in all instruction, or license otherwise Note 1 to 578.407. See also 578.502(e), property and interests in property of an specifies, such an authorization does which provides that no license or other entity in which such persons directly or not create any right, duty, obligation, authorization contained in or issued indirectly own, whether individually or claim, or interest in, or with respect to, pursuant to this part authorizes transfers of or payments from blocked property or debits in the aggregate, a 50 percent or greater any property that would not otherwise to blocked accounts unless the license or interest. The property and interests in exist under ordinary principles of law. other authorization explicitly authorizes the property of such an entity, therefore, are (d) Nothing contained in this part transfer of or payment from blocked property blocked, and such an entity is a person shall be construed to supersede the or the debit to a blocked account. whose property and interests in requirements established under any property are blocked pursuant to other provision of law or to relieve a 578.408 Charitable contributions. 578.201, regardless of whether the person from any requirement to obtain Unless specifically authorized by name of the entity is incorporated into a license or other authorization from OFAC pursuant to this part, no OFACs Specially Designated Nationals another department or agency of the charitable contribution of funds, goods, and Blocked Persons List (SDN List). U.S. Government in compliance with VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00071 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj 54382 Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations applicable laws and regulations subject 578.505 Entries in certain accounts for compliance with the laws of the United to the jurisdiction of that department or normal service charges. States or any jurisdiction within the agency. For example, exports of goods, (a) A U.S. financial institution is United States, provided that such advice services, or technical data that are not authorized to debit any blocked account and counseling are not provided to prohibited by this part or that do not held at that financial institution in facilitate transactions in violation of this require a license by OFAC nevertheless payment or reimbursement for normal part; may require authorization by the U.S. service charges owed it by the owner of (2) Representation of persons named Department of Commerce, the U.S. that blocked account. as defendants in or otherwise made Department of State, or other agencies of (b) As used in this section, the term parties to legal, arbitration, or the U.S. Government. normal service charges shall include administrative proceedings before any (e) No license or other authorization charges in payment or reimbursement U.S. Federal, state, or local court or contained in or issued pursuant to this for interest due; cable, telegraph, agency; internet, or telephone charges; postage (3) Initiation and conduct of legal, part authorizes transfers of or payments costs; custody fees; small adjustment arbitration, or administrative from blocked property or debits to charges to correct bookkeeping errors; proceedings before any U.S. Federal, blocked accounts unless the license or and, but not by way of limitation, state, or local court or agency; other authorization explicitly authorizes minimum balance charges, notary and (4) Representation of persons before the transfer of or payment from blocked protest fees, and charges for reference any U.S. Federal, state, or local court or property or the debit to a blocked books, photocopies, credit reports, agency with respect to the imposition, account. transcripts of statements, registered administration, or enforcement of U.S. (f) Any payment relating to a mail, insurance, stationery and supplies, sanctions against such persons; and transaction authorized in or pursuant to and other similar items. (5) Provision of legal services in any this part that is routed through the U.S. other context in which prevailing U.S. financial system should reference the 578.506 Investment and reinvestment of certain funds. law requires access to legal counsel at relevant OFAC general or specific public expense. license authorizing the payment to Subject to the requirements of (b) The provision of any other legal avoid the blocking or rejection of the 578.203, U.S. financial institutions are services to or on behalf of persons transfer. authorized to invest and reinvest assets whose property and interests in blocked pursuant to 578.201, subject 578.503 Exclusion from licenses. to the following conditions: property are blocked pursuant to (a) The assets representing such 578.201, not otherwise authorized in OFAC reserves the right to exclude investments and reinvestments are this part, requires the issuance of a any person, property, transaction, or credited to a blocked account or specific license. class thereof from the operation of any subaccount that is held in the same (c) U.S. persons do not need to obtain license or from the privileges conferred name at the same U.S. financial specific authorization to provide related by any license. OFAC also reserves the institution, or within the possession or services, such as making filings and right to restrict the applicability of any control of a U.S. person, but funds shall providing other administrative services, license to particular persons, property, not be transferred outside the United that are ordinarily incident to the transactions, or classes thereof. Such States for this purpose; provision of services authorized by actions are binding upon actual or (b) The proceeds of such investments paragraph (a) of this section. constructive notice of the exclusions or and reinvestments shall not be credited Additionally, U.S. persons who provide restrictions. to a blocked account or subaccount services authorized by paragraph (a) of 578.504 Payments and transfers to under any name or designation that this section do not need to obtain blocked accounts in U.S. financial differs from the name or designation of specific authorization to contract for institutions. the specific blocked account or related services that are ordinarily subaccount in which such funds or incident to the provision of those legal Any payment of funds or transfer of securities were held; and services, such as those provided by credit in which a person whose property (c) No immediate financial or private investigators or expert and interests in property are blocked economic benefit accrues (e.g., through witnesses, or to pay for such services. pursuant to 578.201 has any interest pledging or other use) to a person whose See 578.404. that comes within the possession or property and interests in property are (d) Entry into a settlement agreement control of a U.S. financial institution blocked pursuant to 578.201. or the enforcement of any lien, must be blocked in an account on the judgment, arbitral award, decree, or books of that financial institution. A 578.507 Provision of certain legal other order through execution, transfer of funds or credit by a U.S. services. garnishment, or other judicial process financial institution between blocked (a) The provision of the following purporting to transfer or otherwise alter accounts in its branches or offices is legal services to or on behalf of persons or affect property or interests in authorized, provided that no transfer is whose property and interests in property blocked pursuant to 578.201 made from an account within the property are blocked pursuant to is prohibited unless licensed pursuant United States to an account held outside 578.201 is authorized, provided that to this part. the United States, and further provided any receipt of payment of professional that a transfer from a blocked account fees and reimbursement of incurred Note 1 to 578.507. Pursuant to part 501, may be made only to another blocked expenses must be authorized pursuant subpart E, of this chapter, U.S. persons seeking administrative reconsideration or account held in the same name. to 578.508, which authorizes certain judicial review of their designation or the payments for legal services from funds Note 1 to 578.504. See 501.603 of this blocking of their property and interests in originating outside the United States; chapter for mandatory reporting property may apply for a specific license requirements regarding financial transfers. via specific license; or otherwise from OFAC to authorize the release of certain See also 578.203 concerning the obligation pursuant to this part: blocked funds for the payment of to hold blocked funds in interest-bearing (1) Provision of legal advice and professional fees and reimbursement of accounts. counseling on the requirements of and incurred expenses for the provision of such VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00072 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations 54383 legal services where alternative funding NW, Freedmans Bank Building, Treasury pursuant to this part or sources are not available. Washington, DC 20220. otherwise under IEEPA. (1) A civil penalty not to exceed the 578.508 Payments for legal services from 578.509 Emergency medical services. amount set forth in section 206 of IEEPA funds originating outside the United States. The provision and receipt of may be imposed on any person who (a) Professional fees and incurred nonscheduled emergency medical violates, attempts to violate, conspires expenses. (1) Receipt of payment of services that are prohibited by this part to violate, or causes a violation of any professional fees and reimbursement of are authorized. license, order, regulation, or prohibition incurred expenses for the provision of issued under IEEPA. 578.510 Official business of the United legal services authorized pursuant to (2) IEEPA provides for a maximum States Government. 578.507(a) to or on behalf of any civil penalty not to exceed the greater of All transactions prohibited by this person whose property and interests in 311,562 or an amount that is twice the part that are for the conduct of the property are blocked pursuant to amount of the transaction that is the official business of the United States 578.201, is authorized from funds basis of the violation with respect to Government by employees, grantees, or originating outside the United States, which the penalty is imposed. contractors thereof are authorized. provided that the funds do not originate (3) A person who willfully commits, from: 578.511 Official business of certain willfully attempts to commit, willfully (i) A source within the United States; international organizations and entities. conspires to commit, or aids or abets in (ii) Any source, wherever located, the commission of a violation of any All transactions prohibited by this within the possession or control of a license, order, regulation, or prohibition part that are for the conduct of the U.S. person; or may, upon conviction, be fined not official business of the following entities (iii) Any individual or entity, other more than 1,000,000, or if a natural by employees, grantees, or contractors than the person on whose behalf the person, be imprisoned for not more than thereof are authorized: legal services authorized pursuant to 20 years, or both. (a) The United Nations, including its 578.506(a) are to be provided, whose (b)(1) The civil penalties provided in Programmes, Funds, and Other Entities property and interests in property are IEEPA are subject to adjustment and Bodies, as well as its Specialized blocked pursuant to any part of this pursuant to the Federal Civil Penalties Agencies and Related Organizations; chapter or any Executive order or Inflation Adjustment Act of 1990 (Pub. (b) The International Centre for statute. L. 101410, as amended, 28 U.S.C. 2461 Settlement of Investment Disputes (2) Nothing in this paragraph (a) note). (ICSID) and the Multilateral Investment authorizes payments for legal services (2) The criminal penalties provided in Guarantee Agency (MIGA); using funds in which any other person IEEPA are subject to adjustment (c) The African Development Bank whose property and interests in pursuant to 18 U.S.C. 3571. Group, the Asian Development Bank, property are blocked pursuant to (c) Pursuant to 18 U.S.C. 1001, the European Bank for Reconstruction 578.201, any other part of this chapter, whoever, in any matter within the and Development, and the Inter- or any Executive order or statute has an jurisdiction of the executive, legislative, American Development Bank Group interest. or judicial branch of the Government of (IDB Group), including any fund entity (b) Reports. (1) U.S. persons who the United States, knowingly and administered or established by any of receive payments pursuant to paragraph willfully falsifies, conceals, or covers up the foregoing; and (a) of this section must submit annual by any trick, scheme, or device a (d) The International Committee of reports no later than 30 days following material fact; or makes any materially the Red Cross and the International the end of the calendar year during false, fictitious, or fraudulent statement Federation of Red Cross and Red which the payments were received or representation; or makes or uses any Crescent Societies. providing information on the funds false writing or document knowing the received. Such reports shall specify: Subpart FReports same to contain any materially false, (i) The individual or entity from fictitious, or fraudulent statement or whom the funds originated and the 578.601 Records and reports. entry shall be fined under title 18, amount of funds received; and For provisions relating to required United States Code, imprisoned, or (ii) If applicable: records and reports, see part 501, both. (A) The names of any individuals or subpart C, of this chapter. (d) Violations of this part may also be entities providing related services to the Recordkeeping and reporting subject to other applicable laws. U.S. person receiving payment in requirements imposed by part 501 of 578.702 Pre-Penalty Notice; settlement. connection with authorized legal this chapter with respect to the services, such as private investigators or prohibitions contained in this part are (a) When required. If OFAC has expert witnesses; considered requirements arising reason to believe that there has occurred (B) A general description of the pursuant to this part. a violation of any provision of this part services provided; and or a violation of the provisions of any (C) The amount of funds paid in Subpart GPenalties and Findings of license, ruling, regulation, order, connection with such services. Violation directive, or instruction issued by or (2) The reports, which must reference pursuant to the direction or this section, are to be submitted to 578.701 Penalties. authorization of the Secretary of the OFAC using one of the following (a) Section 206 of the International Treasury pursuant to this part or methods: Emergency Economic Powers Act (50 otherwise under the International (i) Email (preferred method): U.S.C. 1705) (IEEPA) is applicable to Emergency Economic Powers Act (50 OFACReporttreasury.gov; or violations of the provisions of any U.S.C. 1701 et seq.) and determines that (ii) U.S. mail: OFAC Regulations license, ruling, regulation, order, a civil monetary penalty is warranted, Reports, Office of Foreign Assets directive, or instruction issued by or OFAC will issue a Pre-Penalty Notice Control, U.S. Department of the pursuant to the direction or informing the alleged violator of the Treasury, 1500 Pennsylvania Avenue authorization of the Secretary of the agencys intent to impose a monetary VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00073 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj 54384 Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations penalty. A Pre-Penalty Notice shall be in settlement, see appendix A to part 501 (iii) Based on the Guidelines writing. The Pre-Penalty Notice may be of this chapter. contained in appendix A to part 501 of issued whether or not another agency (d) Guidelines. Guidelines for the this chapter, concludes that an has taken any action with respect to the imposition or settlement of civil administrative response is warranted matter. For a description of the contents penalties by OFAC are contained in but that a civil monetary penalty is not of a Pre-Penalty Notice, see appendix A appendix A to part 501 of this chapter. the most appropriate response. to part 501 of this chapter. (e) Representation. A representative of (2) An initial Finding of Violation (b) Response(1) Right to respond. the alleged violator may act on behalf of shall be in writing and may be issued An alleged violator has the right to the alleged violator, but any oral whether or not another agency has taken respond to a Pre-Penalty Notice by communication with OFAC prior to a any action with respect to the matter. making a written presentation to OFAC. written submission regarding the For additional details concerning For a description of the information that specific allegations contained in the Pre- issuance of a Finding of Violation, see should be included in such a response, Penalty Notice must be preceded by a appendix A to part 501 of this chapter. see appendix A to part 501 of this written letter of representation, unless (b) Response(1) Right to respond. chapter. the Pre-Penalty Notice was served upon An alleged violator has the right to (2) Deadline for response. A response the alleged violator in care of the contest an initial Finding of Violation to a Pre-Penalty Notice must be made representative. by providing a written response to OFAC. within 30 days as set forth in paragraphs 578.703 Penalty imposition. (2) Deadline for response; default (b)(2)(i) and (ii) of this section. The failure to submit a response within 30 If, after considering any written determination. A response to an initial days shall be deemed to be a waiver of response to the Pre-Penalty Notice and Finding of Violation must be made the right to respond. any relevant facts, OFAC determines within 30 days as set forth in paragraphs that there was a violation by the alleged (b)(2)(i) and (ii) of this section. The (i) Computation of time for response. violator named in the Pre-Penalty failure to submit a response within 30 A response to a Pre-Penalty Notice must Notice and that a civil monetary penalty days shall be deemed to be a waiver of be postmarked or date-stamped by the is appropriate, OFAC may issue a the right to respond, and the initial U.S. Postal Service (or foreign postal Penalty Notice to the violator containing Finding of Violation will become final service, if mailed abroad) or courier a determination of the violation and the and will constitute final agency action. service provider (if transmitted to OFAC imposition of the monetary penalty. For The violator has the right to seek by courier), or dated if sent by email, on judicial review of that final agency additional details concerning issuance or before the 30th day after the postmark action in Federal district court. of a Penalty Notice, see appendix A to date on the envelope in which the Pre- (i) Computation of time for response. part 501 of this chapter. The issuance of Penalty Notice was mailed or date the A response to an initial Finding of the Penalty Notice shall constitute final Pre-Penalty Notice was emailed. If the Violation must be postmarked or date- agency action. The violator has the right Pre-Penalty Notice was personally stamped by the U.S. Postal Service (or to seek judicial review of that final delivered by a non-U.S. Postal Service foreign postal service, if mailed abroad) agency action in Federal district court. agent authorized by OFAC, a response or courier service provider (if must be postmarked or date-stamped on 578.704 Administrative collection; transmitted to OFAC by courier), or or before the 30th day after the date of referral to United States Department of dated if sent by email, on or before the delivery. Justice. 30th day after the postmark date on the (ii) Extensions of time for response. If In the event that the violator does not envelope in which the initial Finding of a due date falls on a Federal holiday or pay the penalty imposed pursuant to Violation was served or date the Finding weekend, that due date is extended to this part or make payment arrangements of Violation was sent by email. If the include the following business day. Any acceptable to OFAC, the matter may be initial Finding of Violation was other extensions of time will be granted, referred for administrative collection personally delivered by a non-U.S. at the discretion of OFAC, only upon measures by the Department of the Postal Service agent authorized by specific request to OFAC. Treasury or to the United States OFAC, a response must be postmarked (3) Form and method of response. A Department of Justice for appropriate or date-stamped on or before the 30th response to a Pre-Penalty Notice need action to recover the penalty in a civil day after the date of delivery. not be in any particular form, but it suit in a Federal district court. (ii) Extensions of time for response. If must be typewritten and signed by the a due date falls on a Federal holiday or alleged violator or a representative 578.705 Findings of Violation. weekend, that due date is extended to thereof (electronic signature is (a) When issued. (1) OFAC may issue include the following business day. Any acceptable), contain information an initial Finding of Violation that other extensions of time will be granted, sufficient to indicate that it is in identifies a violation if OFAC: at the discretion of OFAC, only upon response to the Pre-Penalty Notice, and (i) Determines that there has occurred specific request to OFAC. include the OFAC identification number a violation of any provision of this part, (3) Form and method of response. A listed on the Pre-Penalty Notice. The or a violation of the provisions of any response to an initial Finding of response must be sent to OFACs Office license, ruling, regulation, order, Violation need not be in any particular of Compliance and Enforcement by mail directive, or instruction issued by or form, but it must be typewritten and or courier or email and must be pursuant to the direction or signed by the alleged violator or a postmarked or date-stamped in authorization of the Secretary of the representative thereof (electronic accordance with paragraph (b)(2) of this Treasury pursuant to this part or signature is acceptable), contain section. otherwise under the International information sufficient to indicate that it (c) Settlement. Settlement discussion Emergency Economic Powers Act (50 is in response to the initial Finding of may be initiated by OFAC, the alleged U.S.C. 1701 et seq.); Violation, and include the OFAC violator, or the alleged violators (ii) Considers it important to identification number listed on the authorized representative. For a document the occurrence of a violation; initial Finding of Violation. The description of practices with respect to and response must be sent to OFACs Office VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00074 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj Federal RegisterVol. 87, No. 171Tuesday, September 6, 2022Rules and Regulations 54385 of Compliance and Enforcement by mail rulemaking; and requests for documents SUMMARY: The Coast Guard is issuing or courier or email and must be pursuant to the Freedom of Information this interim rule to remove an incorrect postmarked or date-stamped in and Privacy Acts (5 U.S.C. 552 and statement about field preemption of accordance with paragraph (b)(2) of this 552a), see part 501, subpart E, of this State or local regulations regarding section. chapter. inland navigation. The incorrect (4) Information that should be language was added in a 2014 578.802 Delegation of certain authorities included in response. Any response rulemaking, and the error was recently of the Secretary of the Treasury. should set forth in detail why the discovered. By removing the language, Any action that the Secretary of the alleged violator either believes that a this rule clarifies the ability of States to Treasury is authorized to take pursuant violation of the regulations did not regulate inland navigation as they have to E.O. 13694 of April 1, 2015, as occur andor why a Finding of Violation historically done. This rule does not amended by E.O. 13757 of December 28, is otherwise unwarranted under the require States to take any action. 2016, and any further Executive orders circumstances, with reference to the relating to the national emergency DATES: This interim rule is effective General Factors Affecting declared therein, and any action that the September 6, 2022. Comments and Administrative Action set forth in the Secretary of the Treasury is authorized related material must be received by the Guidelines contained in appendix A to to take pursuant to Presidential Coast Guard on or before December 5, part 501 of this chapter. The response Memorandum of September 29, 2017: 2022. should include all documentary or other evidence available to the alleged Delegation of Certain Functions and ADDRESSES: You may submit comments violator that supports the arguments set Authorities under the Countering identified by docket number USCG forth in the response. OFAC will Americas Adversaries Through 20220071 using the Federal Decision consider all relevant materials Sanctions Act of 2017, the Ukraine Making Portal at https: submitted in the response. Freedom Support Act of 2014, and the www.regulations.gov. See the Public (c) Determination(1) Determination Support for the Sovereignty, Integrity, Participation and Request for Democracy, and Economic Stability of that a Finding of Violation is warranted. Comments portion of the Ukraine Act of 2014, may be taken by If, after considering the response, OFAC SUPPLEMENTARYINFORMATIONsection for the Director of OFAC or by any other determines that a final Finding of further instructions on submitting person to whom the Secretary of the Violation should be issued, OFAC will comments. Treasury has delegated authority so to issue a final Finding of Violation that act. FORFURTHERINFORMATIONCONTACT: For will inform the violator of its decision. information about this document call or A final Finding of Violation shall Subpart IPaperwork Reduction Act email Jeffrey Decker, Coast Guard Office constitute final agency action. The of Auxiliary and Boating Safety (CG violator has the right to seek judicial 578.901 Paperwork Reduction Act notice. BSX); telephone 2023721507, email review of that final agency action in For approval by the Office of Jeffrey.E.Deckeruscg.mil. Federal district court. Management and Budget (OMB) under (2) Determination that a Finding of the Paperwork Reduction Act of 1995 SUPPLEMENTARYINFORMATION: Violation is not warranted. If, after (44 U.S.C. 3507) of information Table of Contents for Preamble considering the response, OFAC collections relating to recordkeeping I. Abbreviations determines a Finding of Violation is not and reporting requirements, licensing II. Basis and Purpose, and Regulatory History warranted, then OFAC will inform the procedures, and other procedures, see III. Background alleged violator of its decision not to 501.901 of this chapter. An agency IV. Discussion of the Rule issue a final Finding of Violation. may not conduct or sponsor, and a V. Regulatory Analyses Note 1 to paragraph (c)(2). A person is not required to respond to, a A. Regulatory Planning and Review determination by OFAC that a final Finding collection of information unless it B. Small Entities of Violation is not warranted does not displays a valid control number C. Assistance for Small Entities preclude OFAC from pursuing other assigned by OMB. D. Collection of Information enforcement actions consistent with the E. Federalism Guidelines contained in appendix A to part Andrea M. Gacki, F. Unfunded Mandates 501 of this chapter. Director, Office of Foreign Assets Control. G. Taking of Private Property H. Civil Justice Reform (d) Representation. A representative FR Doc. 202219138 Filed 9222; 8:45 am I. Protection of Children of the alleged violator may act on behalf BILLING CODE 4810ALP J. Indian Tribal Governments of the alleged violator, but any oral K. Energy Effects communication with OFAC prior to a L. Technical Standards written submission regarding the DEPARTMENT OF HOMELAND M. Environment specific alleged violations contained in SECURITY VI. Public Participation and Request for the initial Finding of Violation must be Comments Coast Guard preceded by a written letter of I. Abbreviations representation, unless the initial 33 CFR Part 83 APA Administrative Procedure Act Finding of Violation was served upon COLREGS International Regulations for the alleged violator in care of the Docket No. USCG20220071 Prevention of Collisions at Sea, 1972 representative. RIN 1625AC81 CFR Code of Federal Regulations DHS Department of Homeland Security Subpart HProcedures State Enforcement of Inland Navigation FR Federal Register 578.801 Procedures. Rules Inland Rules Inland Navigation Rules NAICS North American Industry For license application procedures AGENCY: Coast Guard, DHS. Classification System and procedures relating to amendments, ACTION: Interim rule and request for NPRM Notice of proposed rulemaking modifications, or revocations of OMB Office of Management and Budget comment. licenses; administrative decisions;  Section VerDate Sep112014 17:41 Sep 02, 2022 Jkt 256001 PO 00000 Frm 00075 Fmt 4700 Sfmt 4700 E:FRFM06SER1.SGM 06SER1 SELUR htiw DORP32NT121KSD no sraepsj","78484 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations DEPARTMENT OF THE TREASURY 549, 551, 552, 553, 555, 558, 562, 569, Banks, Banking, Blocking of assets, 570, 576, 578, 579, 582, 583, 584, 585, Credit, Foreign trade, Medicine, Medical Office of Foreign Assets Control 588, 590, 594, 597, 598, and 599. These devices, Penalties, Reporting and NGO general licenses exclude funds recordkeeping requirements, Sanctions, 31 CFR Parts 536, 539, 541, 544, 546, transfers initiated or processed with Securities, Services. 547, 548, 549, 551, 552, 553, 555, 558, knowledge or reason to know that the For the reasons set forth in the 562, 569, 570, 576, 578, 579, 582, 583, intended beneficiary of such transfers is preamble, OFAC amends 31 CFR 584, 585, 588, 590, 594, 597, 598, and a blocked person, unless certain criteria chapter V as follows: 599 are met. OFAC is also adding a general license PART 536NARCOTICS TRAFFICKING Addition of General Licenses to OFAC authorizing transactions related to the SANCTIONS REGULATIONS Sanctions Regulations for Certain provision of agricultural commodities, Transactions of Nongovernmental medicine, medical devices, replacement  1. The authority citation for part 536 Organizations and Related to parts and components, or software continues to read as follows: Agricultural Commodities, Medicine, updates to an individual whose Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); Medical Devices, Replacement Parts property and interests in property are 50 U.S.C. 16011651, 17011706; Pub. L. and Components, or Software Updates blocked, provided the items are in 101410, 104 Stat. 890, as amended (28 for Medical Devices quantities consistent with personal, U.S.C. 2461 note); E.O. 12978, 60 FR 54579, AGENCY: Office of Foreign Assets non-commercial use, to the following 3 CFR, 1995 Comp., p. 415; E.O. 13286, 68 Control, Treasury. parts of 31 CFR: 536, 539, 541, 544, 546, FR 10619, 3 CFR, 2003 Comp., p. 166. 547, 548, 549, 551, 552, 553, 555, 558, ACTION: Final rule. Subpart ELicenses, Authorizations, 562, 569, 570, 576, 578, 579, 582, 583, and Statements of Licensing Policy SUMMARY: The Department of the 584, 585, 588, 590, 594, 597, 598, and Treasurys Office of Foreign Assets 599.  2. Add 536.514 to subpart E read as Control (OFAC) is amending its Public Participation follows: regulations in multiple sanctions programs to add general licenses Because the regulations being 536.514 Authorizing Certain authorizing certain transactions of amended involve a foreign affairs Transactions in Support of nongovernmental organizations and function, the provisions of Executive Nongovernmental Organizations Activities. certain transactions related to the Order 12866 of September 30, 1993, (a) Except as provided in paragraph provision of agricultural commodities, Regulatory Planning and Review (58 (c) of this section, all transactions medicine, medical devices, replacement FR 51735, October 4, 1993), and the prohibited by this part that are parts and components, or software Administrative Procedure Act (5 U.S.C. ordinarily incident and necessary to the updates. 553) requiring notice of proposed activities described in paragraph (b) of rulemaking, opportunity for public this section by a nongovernmental DATES: This rule is effective December participation, and delay in effective organization are authorized, provided 21, 2022. date, are inapplicable. Because no that the nongovernmental organization FORFURTHERINFORMATIONCONTACT: notice of proposed rulemaking is is not a specially designated narcotics OFAC: Assistant Director for Licensing, required for this rule, the Regulatory trafficker. 2026222480; Assistant Director for Flexibility Act (5 U.S.C. 601612) does (b) The activities referenced in Regulatory Affairs, 2026224855; or not apply. paragraph (a) of this section are non- Assistant Director for Sanctions commercial activities designed to Compliance  Evaluation, 202622 Paperwork Reduction Act directly benefit the civilian population 2490. The collections of information related that fall into one of the following SUPPLEMENTARYINFORMATION: to 31 CFR parts 536, 539, 541, 544, 546, categories: 547, 548, 549, 551, 552, 553, 555, 558, (1) Activities to support humanitarian Electronic Availability 562, 569, 570, 576, 578, 579, 582, 583, projects to meet basic human needs, This document and additional 584, 585, 588, 590, 594, 597, 598, and including disaster, drought, or flood information concerning OFAC are 599 are contained in 31 CFR part 501 relief; food, nutrition, or medicine available on OFACs website (the Reporting, Procedures and distribution; the provision of health (www.treas.govofac). Penalties Regulations). Pursuant to the services; assistance for vulnerable or Paperwork Reduction Act of 1995 (44 displaced populations, including Background U.S.C. 3507), those collections of individuals with disabilities and the OFAC, in consultation with the information have been approved by the elderly; and environmental programs; Department of State, is amending Office of Management and Budget under (2) Activities to support democracy regulations in multiple OFAC- control number 15050164. An agency building, including activities to support administered sanctions programs to may not conduct or sponsor, and a rule of law, citizen participation, generally license certain transactions of person is not required to respond to, a government accountability and nongovernmental organizations (NGOs), collection of information unless the transparency, human rights and as well as certain transactions related to collection of information displays a fundamental freedoms, access to the exportation or reexportation of valid control number. information, and civil society agricultural commodities, medicine, development projects; List of Subjects in 31 CFR Parts 536, medical devices, replacement parts and (3) Activities to support education, 539, 541, 544, 546, 547, 548, 549, 551, components, or software updates for including combating illiteracy, 552, 553, 555, 558, 562, 569, 570, 576, medical devices. Specifically, OFAC is increasing access to education, 578, 579, 582, 583, 584, 585, 588, 590, amending regulations to add a general international exchanges, and assisting 594, 597, 598, and 599 license authorizing certain transactions education reform projects; of NGOs to the following parts of 31 Administrative practice and (4) Activities to support non- CFR: 536, 539, 541, 544, 546, 547, 548, procedure, Agricultural commodities, commercial development projects VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78485 directly benefiting civilians, including section 102 of the Agricultural Trade directly benefit the civilian population those related to health, food security, Act of 1978 (7 U.S.C. 5602); and that fall into one of the following and water and sanitation; (ii) That are intended for ultimate use categories: (5) Activities to support as: (1) Activities to support humanitarian environmental and natural resource (A) Food for humans (including raw, projects to meet basic human needs, protection, including the preservation processed, and packaged foods; live including disaster, drought, or flood and protection of threatened or animals; vitamins and minerals; food relief; food, nutrition, or medicine endangered species, responsible and additives or supplements; and bottled distribution; the provision of health transparent management of natural drinking water) or animals (including services; assistance for vulnerable or resources, and the remediation of animal feeds); displaced populations, including pollution or other environmental (B) Seeds for food crops; individuals with disabilities and the damage; and (C) Fertilizers or organic fertilizers; or elderly; and environmental programs; (6) Activities to support disarmament, (D) Reproductive materials (such as (2) Activities to support democracy demobilization, and reintegration (DDR) live animals, fertilized eggs, embryos, building, including activities to support programs and peacebuilding, conflict and semen) for the production of food rule of law, citizen participation, prevention, and conflict resolution animals. government accountability and programs. (2) Medicine. For the purposes of this transparency, human rights and (c) This section does not authorize section, medicine is an item that falls fundamental freedoms, access to funds transfers initiated or processed within the definition of the term drug information, and civil society with knowledge or reason to know that in section 201 of the Federal Food, development projects; the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). (3) Activities to support education, transfers is a specially designated (3) Medical devices. For the purposes including combating illiteracy, narcotics trafficker, other than for the of this section, a medical device is an increasing access to education, purpose of effecting the payment of item that falls within the definition of international exchanges, and assisting taxes, fees, or import duties, or the device in section 201 of the Federal education reform projects; purchase or receipt of permits, licenses, Food, Drug, and Cosmetic Act (21 U.S.C. (4) Activities to support non- or public utility services. 321). commercial development projects (d) Specific licenses may be issued on Note 1 to 536.515. This section does not directly benefiting civilians, including a case-by-case basis to authorize relieve any person authorized thereunder those related to health, food security, nongovernmental or other entities to from complying with any other applicable and water and sanitation; laws or regulations. (5) Activities to support engage in other activities designed to environmental and natural resource directly benefit the civilian population, PART 539WEAPONS OF MASS protection, including the preservation including support for the removal of DESTRUCTION TRADE CONTROL and protection of threatened or landmines and economic development REGULATIONS endangered species, responsible and projects to directly benefit the civilian transparent management of natural population.  4. The authority citation for part 539 resources, and the remediation of Note 1 to 536.514. This section does not continues to read as follows: pollution or other environmental relieve any person authorized thereunder Authority: 3 U.S.C. 301; 22 U.S.C. 2751 damage; and from complying with any other applicable 2799aa2; 31 U.S.C. 321(b); 50 U.S.C. 1601 (6) Activities to support disarmament, laws or regulations. 1651, 17011706; Pub. L. 101410, 104 Stat. demobilization, and reintegration (DDR)  3. Add 536.515 to subpart E to read 890, as amended (28 U.S.C. 2461 note); E.O. programs and peacebuilding, conflict as follows: 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. prevention, and conflict resolution 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 programs. 536.515 Transactions related to the Comp., p. 200; E.O. 13382, 70 FR 38567, 3 (c) This section does not authorize provision of agricultural commodities, CFR, 2005 Comp., p. 170. funds transfers initiated or processed medicine, medical devices, replacement parts and components, or software updates Subpart ELicenses, Authorizations, with knowledge or reason to know that for personal, non-commercial use. and Statements of Licensing Policy the intended beneficiary of such transfers is a person blocked pursuant to (a) All transactions prohibited by this  5. Add 539.506 to subpart E to read this part, other than for the purpose of part that are related to the provision, as follows: effecting the payment of taxes, fees, or directly or indirectly, of agricultural import duties, or the purchase or receipt commodities, medicine, medical 539.506 Authorizing Certain of permits, licenses, or public utility devices, replacement parts and Transactions in Support of services. components for medical devices, or Nongovernmental Organizations Activities. (d) Specific licenses may be issued on software updates for medical devices to (a) Except as provided in paragraph a case-by-case basis to authorize an individual who is a specially (c) of this section, all transactions nongovernmental or other entities to designated narcotics trafficker are prohibited by this part that are engage in other activities designed to authorized, provided the items are in ordinarily incident and necessary to the directly benefit the civilian population, quantities consistent with personal, activities described in paragraph (b) of including support for the removal of non-commercial use. this section by a nongovernmental landmines and economic development (b) For the purposes of this section, organization are authorized, provided projects directly benefiting the civilian agricultural commodities, medicine, and that the nongovernmental organization population. medical devices are defined as follows: is not a person whose property or (1) Agricultural commodities. For the interests in property are blocked Note 1 to 539.506. This section does not purposes of this section, agricultural pursuant to this part. relieve any person authorized thereunder from complying with any other applicable commodities are: (b) The activities referenced in laws or regulations. (i) Products that fall within the term paragraph (a) of this section are non- agricultural commodity as defined in commercial activities designed to  6. Add 539.507 to read as follows: VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78486 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 539.507 Transactions related to the 13469, 73 FR 43841, 3 CFR, 2008 Comp., p. (c) This section does not authorize provision of agricultural commodities, 1025. funds transfers initiated or processed medicine, medical devices, replacement with knowledge or reason to know that parts and components, or software updates Subpart ELicenses, Authorizations, the intended beneficiary of such for personal, non-commercial use. and Statements of Licensing Policy transfers is a person blocked pursuant to (a) All transactions prohibited by this  8. Add 541.512 to subpart E to read this part, other than for the purpose of part that are related to the provision, as follows: effecting the payment of taxes, fees, or directly or indirectly, of agricultural import duties, or the purchase or receipt commodities, medicine, medical 541.512 Authorizing Certain of permits, licenses, or public utility devices, replacement parts and Transactions in Support of services. components for medical devices, or Nongovernmental Organizations Activities. (d) Specific licenses may be issued on software updates for medical devices to (a) Except as provided in paragraph a case-by-case basis to authorize an individual whose property and (c) of this section, all transactions nongovernmental or other entities to interests in property are blocked prohibited by this part that are engage in other activities designed to pursuant to this part are authorized, ordinarily incident and necessary to the directly benefit the civilian population, provided the items are in quantities activities described in paragraph (b) of including support for the removal of consistent with personal, non- this section by a nongovernmental landmines and economic development commercial use. organization are authorized, provided projects directly benefiting the civilian (b) For the purposes of this section, that the nongovernmental organization population. agricultural commodities, medicine, and is not a person whose property or medical devices are defined as follows: interests in property are blocked Note 1 to 541.512. This section does not relieve any person authorized thereunder (1) Agricultural commodities. For the pursuant to this part. from complying with any other applicable purposes of this section, agricultural (b) The activities referenced in laws or regulations. commodities are: paragraph (a) of this section are non- (i) Products that fall within the term commercial activities designed to  9. Add 541.513 to subpart E to read agricultural commodity as defined in directly benefit the civilian population as follows: section 102 of the Agricultural Trade that fall into one of the following Act of 1978 (7 U.S.C. 5602); and categories: 541.513 Transactions related to the provision of agricultural commodities, (ii) That are intended for ultimate use (1) Activities to support humanitarian medicine, medical devices, replacement as: projects to meet basic human needs, parts and components, or software updates (A) Food for humans (including raw, including disaster, drought, or flood for personal, non-commercial use. processed, and packaged foods; live relief; food, nutrition, or medicine (a) All transactions prohibited by this animals; vitamins and minerals; food distribution; the provision of health part that are related to the provision, additives or supplements; and bottled services; assistance for vulnerable or directly or indirectly, of agricultural drinking water) or animals (including displaced populations, including commodities, medicine, medical animal feeds); individuals with disabilities and the devices, replacement parts and (B) Seeds for food crops; elderly; and environmental programs; components for medical devices, or (C) Fertilizers or organic fertilizers; or (2) Activities to support democracy software updates for medical devices to (D) Reproductive materials (such as building, including activities to support an individual whose property and live animals, fertilized eggs, embryos, rule of law, citizen participation, interests in property are blocked and semen) for the production of food government accountability and pursuant to this part are authorized, animals. transparency, human rights and provided the items are in quantities (2) Medicine. For the purposes of this fundamental freedoms, access to consistent with personal, non- section, medicine is an item that falls information, and civil society commercial use. within the definition of the term drug development projects; (b) For the purposes of this section, in section 201 of the Federal Food, (3) Activities to support education, agricultural commodities, medicine, and Drug, and Cosmetic Act (21 U.S.C. 321). including combating illiteracy, medical devices are defined as follows: (3) Medical devices. For the purposes increasing access to education, (1) Agricultural commodities. For the of this section, a medical device is an international exchanges, and assisting purposes of this section, agricultural item that falls within the definition of education reform projects; device in section 201 of the Federal (4) Activities to support non- commodities are: Food, Drug, and Cosmetic Act (21 U.S.C. commercial development projects (i) Products that fall within the term 321). directly benefiting civilians, including agricultural commodity as defined in those related to health, food security, section 102 of the Agricultural Trade Note 1 to 539.507. This section does not and water and sanitation; Act of 1978 (7 U.S.C. 5602); and relieve any person authorized thereunder (5) Activities to support (ii) That are intended for ultimate use from complying with any other applicable laws or regulations. environmental and natural resource as: protection, including the preservation (A) Food for humans (including raw, and protection of threatened or processed, and packaged foods; live PART 541ZIMBABWE SANCTIONS endangered species, responsible and animals; vitamins and minerals; food REGULATIONS transparent management of natural additives or supplements; and bottled  7. The authority citation for part 541 resources, and the remediation of drinking water) or animals (including continues to read as follows: pollution or other environmental animal feeds); damage; and (B) Seeds for food crops; Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); (6) Activities to support disarmament, (C) Fertilizers or organic fertilizers; or 50 U.S.C. 16011651, 17011706; Pub. L. demobilization, and reintegration (DDR) (D) Reproductive materials (such as 101410, 104 Stat. 890, as amended (28 U.S.C. 2461 note); E.O. 13288, 68 FR 11457, programs and peacebuilding, conflict live animals, fertilized eggs, embryos, 3 CFR, 2003 Comp., p. 186; E.O. 13391, 70 prevention, and conflict resolution and semen) for the production of food FR 71201, 3 CFR, 2005 Comp., p. 206; E.O. programs. animals. VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78487 (2) Medicine. For the purposes of this transparency, human rights and provided the items are in quantities section, medicine is an item that falls fundamental freedoms, access to consistent with personal, non- within the definition of the term drug information, and civil society commercial use. in section 201 of the Federal Food, development projects; (b) For the purposes of this section, Drug, and Cosmetic Act (21 U.S.C. 321). (3) Activities to support education, agricultural commodities, medicine, and (3) Medical devices. For the purposes including combating illiteracy, medical devices are defined as follows: of this section, a medical device is an increasing access to education, (1) Agricultural commodities. For the item that falls within the definition of international exchanges, and assisting purposes of this section, agricultural device in section 201 of the Federal education reform projects; commodities are: Food, Drug, and Cosmetic Act (21 U.S.C. (4) Activities to support non- (i) Products that fall within the term 321). commercial development projects agricultural commodity as defined in directly benefiting civilians, including section 102 of the Agricultural Trade Note 1 to 541.513. This section does not those related to health, food security, Act of 1978 (7 U.S.C. 5602); and relieve any person authorized thereunder from complying with any other applicable and water and sanitation; (ii) That are intended for ultimate use laws or regulations. (5) Activities to support as: environmental and natural resource (A) Food for humans (including raw, protection, including the preservation processed, and packaged foods; live PART 544WEAPONS OF MASS and protection of threatened or animals; vitamins and minerals; food DESTRUCTION PROLIFERATORS endangered species, responsible and additives or supplements; and bottled SANCTIONS REGULATIONS transparent management of natural drinking water) or animals (including  10. The authority citation for part 544 resources, and the remediation of animal feeds); continues to read as follows: pollution or other environmental (B) Seeds for food crops; damage; and (C) Fertilizers or organic fertilizers; or Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); (6) Activities to support disarmament, (D) Reproductive materials (such as 50 U.S.C. 16011651, 17011706; Pub. L. demobilization, and reintegration (DDR) live animals, fertilized eggs, embryos, 101410, 104 Stat. 890, as amended (28 U.S.C. 2461 note); E.O. 12938, 59 FR 59099, programs and peacebuilding, conflict and semen) for the production of food 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 prevention, and conflict resolution animals. FR 40803, 3 CFR, 1998 Comp., p. 200; E.O. programs. (2) Medicine. For the purposes of this 13382, 70 FR 38567, 3 CFR, 2005 Comp., p. (c) This section does not authorize section, medicine is an item that falls 170. funds transfers initiated or processed within the definition of the term drug with knowledge or reason to know that in section 201 of the Federal Food, Subpart ELicenses, Authorizations, the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). and Statements of Licensing Policy transfers is a person blocked pursuant to (3) Medical devices. For the purposes this part, other than for the purpose of of this section, a medical device is an  11. Add 544.512 to subpart E to read effecting the payment of taxes, fees, or item that falls within the definition of as follows: import duties, or the purchase or receipt device in section 201 of the Federal 544.512 Authorizing Certain of permits, licenses, or public utility Food, Drug, and Cosmetic Act (21 U.S.C. Transactions in Support of services. 321). Nongovernmental Organizations Activities. (d) Specific licenses may be issued on Note 1 to 544.513. This section does not (a) Except as provided in paragraph a case-by-case basis to authorize relieve any person authorized thereunder (c) of this section, all transactions nongovernmental or other entities to from complying with any other applicable prohibited by this part that are engage in other activities designed to laws or regulations. ordinarily incident and necessary to the directly benefit the civilian population, activities described in paragraph (b) of including support for the removal of PART 546DARFUR SANCTIONS this section by a nongovernmental landmines and economic development REGULATIONS organization are authorized, provided projects directly benefiting the civilian that the nongovernmental organization population.  13. The authority citation for part 546 is not a person whose property or continues to read as follows: Note 1 to 544.512. This section does not interests in property are blocked relieve any person authorized thereunder Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); pursuant to this part. from complying with any other applicable 50 U.S.C. 16011651, 17011706; 22 U.S.C. (b) The activities referenced in laws or regulations. 287c; Pub. L. 101410, 104 Stat. 890, as paragraph (a) of this section are non- amended (28 U.S.C. 2461 note); E.O. 13067,  12. Add 544.513 to subpart E to read commercial activities designed to 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. as follows: directly benefit the civilian population 13400, 71 FR 25483, 3 CFR, 2006 Comp., p. that fall into one of the following 544.513 Transactions related to the 220. categories: provision of agricultural commodities, Subpart ELicenses, Authorizations, (1) Activities to support humanitarian medicine, medical devices, replacement and Statements of Licensing Policy projects to meet basic human needs, parts and components, or software updates including disaster, drought, or flood for personal, non-commercial use.  14. Add 546.511 to subpart E to read relief; food, nutrition, or medicine (a) All transactions prohibited by this as follows: distribution; the provision of health part that are related to the provision, services; assistance for vulnerable or directly or indirectly, of agricultural 546.511 Authorizing Certain displaced populations, including commodities, medicine, medical Transactions in Support of individuals with disabilities and the devices, replacement parts and Nongovernmental Organizations Activities. elderly; and environmental programs; components for medical devices, or (a) Except as provided in paragraph (2) Activities to support democracy software updates for medical devices to (c) of this section, all transactions building, including activities to support an individual whose property and prohibited by this part that are rule of law, citizen participation, interests in property are blocked ordinarily incident and necessary to the government accountability and pursuant to this part are authorized, activities described in paragraph (b) of VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78488 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations this section by a nongovernmental landmines and economic development PART 547DEMOCRATIC REPUBLIC organization are authorized, provided projects directly benefiting the civilian OF THE CONGO SANCTIONS that the nongovernmental organization population. REGULATIONS is not a person whose property or Note 1 to 546.511. This section does not interests in property are blocked  16. The authority citation for part 547 relieve any person authorized thereunder pursuant to this part. from complying with any other applicable continues to read as follows: (b) The activities referenced in laws or regulations. Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); paragraph (a) of this section are non- 50 U.S.C. 16011651, 17011706; 22 U.S.C. commercial activities designed to  15. Add 546.512 to subpart E to read 287c; Pub. L. 101410, 104 Stat. 890, as directly benefit the civilian population as follows: amended (28 U.S.C. 2461 note); E.O. 13413, that fall into one of the following 71 FR 64105, 3 CFR, 2006 Comp., p. 247; E.O. 546.512 Transactions related to the categories: 13671, 79 FR 39949, 3 CFR, 2015 Comp., p. provision of agricultural commodities, (1) Activities to support humanitarian 280. medicine, medical devices, replacement projects to meet basic human needs, parts and components, or software updates Subpart ELicenses, Authorizations, including disaster, drought, or flood for personal, non-commercial use. and Statements of Licensing Policy relief; food, nutrition, or medicine (a) All transactions prohibited by this distribution; the provision of health part that are related to the provision,  17. Add 547.512 to subpart E to read services; assistance for vulnerable or directly or indirectly, of agricultural as follows: displaced populations, including commodities, medicine, medical individuals with disabilities and the 547.512 Authorizing Certain devices, replacement parts and elderly; and environmental programs; Transactions in Support of (2) Activities to support democracy components for medical devices, or Nongovernmental Organizations Activities. software updates for medical devices to building, including activities to support (a) Except as provided in paragraph an individual whose property and rule of law, citizen participation, (c) of this section, all transactions interests in property are blocked government accountability and prohibited by this part that are pursuant to this part are authorized, transparency, human rights and ordinarily incident and necessary to the provided the items are in quantities fundamental freedoms, access to activities described in paragraph (b) of consistent with personal, non- information, and civil society this section by a nongovernmental commercial use. development projects; organization are authorized, provided (3) Activities to support education, (b) For the purposes of this section, that the nongovernmental organization including combating illiteracy, agricultural commodities, medicine, and is not a person whose property or increasing access to education, medical devices are defined as follows: interests in property are blocked international exchanges, and assisting (1) Agricultural commodities. For the pursuant to this part. education reform projects; purposes of this section, agricultural (b) The activities referenced in (4) Activities to support non- commodities are: paragraph (a) of this section are non- commercial development projects (i) Products that fall within the term commercial activities designed to directly benefiting civilians, including agricultural commodity as defined in directly benefit the civilian population those related to health, food security, section 102 of the Agricultural Trade that fall into one of the following and water and sanitation; Act of 1978 (7 U.S.C. 5602); and categories: (5) Activities to support (ii) That are intended for ultimate use (1) Activities to support humanitarian environmental and natural resource as: projects to meet basic human needs, protection, including the preservation (A) Food for humans (including raw, including disaster, drought, or flood and protection of threatened or processed, and packaged foods; live relief; food, nutrition, or medicine endangered species, responsible and animals; vitamins and minerals; food distribution; the provision of health transparent management of natural additives or supplements; and bottled services; assistance for vulnerable or resources, and the remediation of drinking water) or animals (including displaced populations, including pollution or other environmental animal feeds); individuals with disabilities and the damage; and elderly; and environmental programs; (B) Seeds for food crops; (6) Activities to support disarmament, (2) Activities to support democracy (C) Fertilizers or organic fertilizers; or demobilization, and reintegration (DDR) building, including activities to support (D) Reproductive materials (such as programs and peacebuilding, conflict rule of law, citizen participation, live animals, fertilized eggs, embryos, prevention, and conflict resolution government accountability and and semen) for the production of food programs. transparency, human rights and (c) This section does not authorize animals. fundamental freedoms, access to funds transfers initiated or processed (2) Medicine. For the purposes of this information, and civil society with knowledge or reason to know that section, medicine is an item that falls development projects; the intended beneficiary of such within the definition of the term drug (3) Activities to support education, transfers is a person blocked pursuant to in section 201 of the Federal Food, including combating illiteracy, this part, other than for the purpose of Drug, and Cosmetic Act (21 U.S.C. 321). increasing access to education, effecting the payment of taxes, fees, or (3) Medical devices. For the purposes international exchanges, and assisting import duties, or the purchase or receipt of this section, a medical device is an education reform projects; of permits, licenses, or public utility item that falls within the definition of (4) Activities to support non- services. device in section 201 of the Federal commercial development projects (d) Specific licenses may be issued on Food, Drug, and Cosmetic Act (21 U.S.C. directly benefiting civilians, including a case-by-case basis to authorize 321). those related to health, food security, nongovernmental or other entities to and water and sanitation; Note 1 to 546.512. This section does not engage in other activities designed to relieve any person authorized thereunder (5) Activities to support directly benefit the civilian population, from complying with any other applicable environmental and natural resource including support for the removal of laws or regulations. protection, including the preservation VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78489 and protection of threatened or animals; vitamins and minerals; food individuals with disabilities and the endangered species, responsible and additives or supplements; and bottled elderly; and environmental programs; transparent management of natural drinking water) or animals (including (2) Activities to support democracy resources, and the remediation of animal feeds); building, including activities to support pollution or other environmental (B) Seeds for food crops; rule of law, citizen participation, damage; and (C) Fertilizers or organic fertilizers; or government accountability and (6) Activities to support disarmament, (D) Reproductive materials (such as transparency, human rights and demobilization, and reintegration (DDR) live animals, fertilized eggs, embryos, fundamental freedoms, access to programs and peacebuilding, conflict and semen) for the production of food information, and civil society prevention, and conflict resolution animals. development projects; programs. (2) Medicine. For the purposes of this (3) Activities to support education, (c) This section does not authorize section, medicine is an item that falls including combating illiteracy, funds transfers initiated or processed within the definition of the term drug increasing access to education, with knowledge or reason to know that in section 201 of the Federal Food, international exchanges, and assisting the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). education reform projects; transfers is a person blocked pursuant to (3) Medical devices. For the purposes (4) Activities to support non- this part, other than for the purpose of of this section, a medical device is an commercial development projects effecting the payment of taxes, fees, or item that falls within the definition of directly benefiting civilians, including import duties, or the purchase or receipt device in section 201 of the Federal those related to health, food security, of permits, licenses, or public utility Food, Drug, and Cosmetic Act (21 U.S.C. and water and sanitation; services. 321). (5) Activities to support (d) Specific licenses may be issued on Note 1 to 547.513. This section does not environmental and natural resource a case-by-case basis to authorize relieve any person authorized thereunder protection, including the preservation nongovernmental or other entities to from complying with any other applicable and protection of threatened or engage in other activities designed to laws or regulations. endangered species, responsible and directly benefit the civilian population, transparent management of natural including support for the removal of PART 548BELARUS SANCTIONS resources, and the remediation of landmines and economic development REGULATIONS pollution or other environmental projects directly benefiting the civilian damage; and population.  19. The authority citation for part 548 (6) Activities to support disarmament, continues to read as follows: demobilization, and reintegration (DDR) Note 1 to 547.512. This section does not relieve any person authorized thereunder Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); programs and peacebuilding, conflict from complying with any other applicable 50 U.S.C. 16011651, 17011706; Pub. L. prevention, and conflict resolution laws or regulations. 101410, 104 Stat. 890, as amended (28 programs. U.S.C. 2461 note); E.O. 13405, 71 FR 35485, (c) This section does not authorize  18. Add 547.513 to subpart E to read 3 CFR, 2006 Comp., p. 231. funds transfers initiated or processed as follows: with knowledge or reason to know that Subpart ELicenses, Authorizations, the intended beneficiary of such 547.513 Transactions related to the and Statements of Licensing Policy transfers is a person blocked pursuant to provision of agricultural commodities, medicine, medical devices, replacement  20. Add 548.511 to subpart E to read this part, other than for the purpose of parts and components, or software updates as follows: effecting the payment of taxes, fees, or for personal, non-commercial use. import duties, or the purchase or receipt (a) All transactions prohibited by this 548.511 Authorizing Certain of permits, licenses, or public utility part that are related to the provision, Transactions in Support of services. directly or indirectly, of agricultural Nongovernmental Organizations Activities. (d) Specific licenses may be issued on commodities, medicine, medical (a) Except as provided in paragraph a case-by-case basis to authorize devices, replacement parts and (c) of this section, all transactions nongovernmental or other entities to components for medical devices, or prohibited by this part that are engage in other activities designed to software updates for medical devices to ordinarily incident and necessary to the directly benefit the civilian population, an individual whose property and activities described in paragraph (b) of including support for the removal of interests in property are blocked this section by a nongovernmental landmines and economic development pursuant to this part are authorized, organization are authorized, provided projects directly benefiting the civilian provided the items are in quantities that the nongovernmental organization population. consistent with personal, non- is not a person whose property or Note 1 to 548.511. This section does not commercial use. interests in property are blocked relieve any person authorized thereunder (b) For the purposes of this section, pursuant to this part. from complying with any other applicable agricultural commodities, medicine, and (b) The activities referenced in laws or regulations. medical devices are defined as follows: paragraph (a) of this section are non-  21. Add 548.512 to subpart E to read (1) Agricultural commodities. For the commercial activities designed to as follows: purposes of this section, agricultural directly benefit the civilian population commodities are: that fall into one of the following 548.512 Transactions related to the (i) Products that fall within the term categories: provision of agricultural commodities, agricultural commodity as defined in (1) Activities to support humanitarian medicine, medical devices, replacement section 102 of the Agricultural Trade projects to meet basic human needs, parts and components, or software updates Act of 1978 (7 U.S.C. 5602); and including disaster, drought, or flood for personal, non-commercial use. (ii) That are intended for ultimate use relief; food, nutrition, or medicine (a) All transactions prohibited by this as: distribution; the provision of health part that are related to the provision, (A) Food for humans (including raw, services; assistance for vulnerable or directly or indirectly, of agricultural processed, and packaged foods; live displaced populations, including commodities, medicine, medical VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00007 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78490 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations devices, replacement parts and 549.511 Authorizing Certain of permits, licenses, or public utility components for medical devices, or Transactions in Support of services. software updates for medical devices to Nongovernmental Organizations Activities. (d) Specific licenses may be issued on an individual whose property and (a) Except as provided in paragraph a case-by-case basis to authorize interests in property are blocked (c) of this section, all transactions nongovernmental or other entities to pursuant to this part are authorized, prohibited by this part that are engage in other activities designed to provided the items are in quantities ordinarily incident and necessary to the directly benefit the civilian population, consistent with personal, non- activities described in paragraph (b) of including support for the removal of commercial use. this section by a nongovernmental landmines and economic development organization are authorized, provided projects directly benefiting the civilian (b) For the purposes of this section, that the nongovernmental organization population. agricultural commodities, medicine, and is not a person whose property or medical devices are defined as follows: Note 1 to 549.511. This section does not interests in property are blocked relieve any person authorized thereunder (1) Agricultural commodities. For the pursuant to this part. from complying with any other applicable purposes of this section, agricultural (b) The activities referenced in laws or regulations. commodities are: paragraph (a) of this section are non- (i) Products that fall within the term commercial activities designed to  24. Add 549.512 to subpart E to read agricultural commodity as defined in directly benefit the civilian population as follows: section 102 of the Agricultural Trade that fall into one of the following 549.512 Transactions related to the Act of 1978 (7 U.S.C. 5602); and categories: provision of agricultural commodities, (1) Activities to support humanitarian medicine, medical devices, replacement (ii) That are intended for ultimate use projects to meet basic human needs, parts and components, or software updates as: including disaster, drought, or flood for personal, non-commercial use. (A) Food for humans (including raw, relief; food, nutrition, or medicine (a) All transactions prohibited by this processed, and packaged foods; live distribution; the provision of health part that are related to the provision, animals; vitamins and minerals; food services; assistance for vulnerable or directly or indirectly, of agricultural additives or supplements; and bottled displaced populations, including commodities, medicine, medical drinking water) or animals (including individuals with disabilities and the devices, replacement parts and animal feeds); elderly; and environmental programs; components for medical devices, or (B) Seeds for food crops; (2) Activities to support democracy software updates for medical devices to building, including activities to support an individual whose property and (C) Fertilizers or organic fertilizers; or rule of law, citizen participation, interests in property are blocked (D) Reproductive materials (such as government accountability and pursuant to this part are authorized, live animals, fertilized eggs, embryos, transparency, human rights and provided the items are in quantities and semen) for the production of food fundamental freedoms, access to consistent with personal, non- animals. information, and civil society commercial use. (2) Medicine. For the purposes of this development projects; (b) For the purposes of this section, section, medicine is an item that falls (3) Activities to support education, agricultural commodities, medicine, and within the definition of the term drug including combating illiteracy, medical devices are defined as follows: in section 201 of the Federal Food, increasing access to education, (1) Agricultural commodities. For the Drug, and Cosmetic Act (21 U.S.C. 321). international exchanges, and assisting purposes of this section, agricultural education reform projects; commodities are: (3) Medical devices. For the purposes (4) Activities to support non- (i) Products that fall within the term of this section, a medical device is an commercial development projects agricultural commodity as defined in item that falls within the definition of directly benefiting civilians, including section 102 of the Agricultural Trade device in section 201 of the Federal those related to health, food security, Act of 1978 (7 U.S.C. 5602); and Food, Drug, and Cosmetic Act (21 U.S.C. and water and sanitation; (ii) That are intended for ultimate use 321). (5) Activities to support as: Note 1 to 548.512. This section does not environmental and natural resource (A) Food for humans (including raw, relieve any person authorized thereunder protection, including the preservation processed, and packaged foods; live from complying with any other applicable and protection of threatened or animals; vitamins and minerals; food laws or regulations. endangered species, responsible and additives or supplements; and bottled transparent management of natural drinking water) or animals (including PART 549LEBANON SANCTIONS resources, and the remediation of animal feeds); REGULATIONS pollution or other environmental (B) Seeds for food crops; damage; and (C) Fertilizers or organic fertilizers; or  22. The authority citation for part 549 (6) Activities to support disarmament, (D) Reproductive materials (such as continues to read as follows: demobilization, and reintegration (DDR) live animals, fertilized eggs, embryos, programs and peacebuilding, conflict and semen) for the production of food Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); prevention, and conflict resolution animals. 50 U.S.C. 16011651, 17011706; Pub. L. programs. (2) Medicine. For the purposes of this 101410, 104 Stat. 890, as amended (28 U.S.C. 2461 note); E.O. 13441, 72 FR 43499, (c) This section does not authorize section, medicine is an item that falls 3 CFR, 2008 Comp., p. 232. funds transfers initiated or processed within the definition of the term drug with knowledge or reason to know that in section 201 of the Federal Food, Subpart ELicenses, Authorizations, the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). and Statements of Licensing Policy transfers is a person blocked pursuant to (3) Medical devices. For the purposes this part, other than for the purpose of of this section, a medical device is an  23. Add 549.511 to subpart E to read effecting the payment of taxes, fees, or item that falls within the definition of as follows: import duties, or the purchase or receipt device in section 201 of the Federal VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78491 Food, Drug, and Cosmetic Act (21 U.S.C. directly benefiting civilians, including section 102 of the Agricultural Trade 321). those related to health, food security, Act of 1978 (7 U.S.C. 5602); and and water and sanitation; (ii) That are intended for ultimate use Note 1 to 549.512. This section does not relieve any person authorized thereunder (5) Activities to support as: from complying with any other applicable environmental and natural resource (A) Food for humans (including raw, laws or regulations. protection, including the preservation processed, and packaged foods; live and protection of threatened or animals; vitamins and minerals; food PART 551SOMALIA SANCTIONS endangered species, responsible and additives or supplements; and bottled REGULATIONS transparent management of natural drinking water) or animals (including resources, and the remediation of animal feeds);  25. The authority citation for part 551 pollution or other environmental (B) Seeds for food crops; continues to read as follows: damage; and (C) Fertilizers or organic fertilizers; or Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); (6) Activities to support disarmament, (D) Reproductive materials (such as 50 U.S.C. 16011651, 17011706; 22 U.S.C. demobilization, and reintegration (DDR) live animals, fertilized eggs, embryos, 287c; Pub. L. 101410, 104 Stat. 890, as programs and peacebuilding, conflict and semen) for the production of food amended (28 U.S.C. 2461 note); E.O. 13536, prevention, and conflict resolution animals. 75 FR 19869, 3 CFR, 2010 Comp., p. 203; E.O. programs. (2) Medicine. For the purposes of this 13620, 77 FR 43483, 3 CFR, 2012 Comp., p. (c) This section does not authorize section, medicine is an item that falls 281. funds transfers initiated or processed within the definition of the term drug with knowledge or reason to know that Subpart ELicenses, Authorizations, in section 201 of the Federal Food, the intended beneficiary of such and Statements of Licensing Policy Drug, and Cosmetic Act (21 U.S.C. 321). transfers is a person blocked pursuant to (3) Medical devices. For the purposes this part, other than for the purpose of  26. Add 551.512 to subpart E to read of this section, a medical device is an effecting the payment of taxes, fees, or as follows: item that falls within the definition of import duties, or the purchase or receipt device in section 201 of the Federal 551.512 Authorizing Certain of permits, licenses, or public utility Food, Drug, and Cosmetic Act (21 U.S.C. Transactions in Support of services. 321). Nongovernmental Organizations Activities. (d) Specific licenses may be issued on (a) Except as provided in paragraph a case-by-case basis to authorize Note 1 to 551.513. This section does not (c) of this section, all transactions nongovernmental or other entities to relieve any person authorized thereunder from complying with any other applicable prohibited by this part that are engage in other activities designed to laws or regulations. ordinarily incident and necessary to the directly benefit the civilian population, activities described in paragraph (b) of including support for the removal of PART 552YEMEN SANCTIONS this section by a nongovernmental landmines and economic development REGULATIONS organization are authorized, provided projects directly benefiting the civilian that the nongovernmental organization population.  28. The authority citation for part 552 is not a person whose property or Note 1 to 551.512. This section does not continues to read as follows: interests in property are blocked relieve any person authorized thereunder pursuant to this part. from complying with any other applicable Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); (b) The activities referenced in laws or regulations. 50 U.S.C. 16011651, 17011706; Pub. L. paragraph (a) of this section are non- 101410, 104 Stat. 890, as amended (28  27. Add 551.513 to subpart E to read U.S.C. 2461 note); E.O. 13611, 77 FR 29533, commercial activities designed to as follows: 3 CFR, 2012 Comp., p. 260. directly benefit the civilian population that fall into one of the following 551.513 Transactions related to the Subpart ELicenses, Authorizations, categories: provision of agricultural commodities, and Statements of Licensing Policy (1) Activities to support humanitarian medicine, medical devices, replacement projects to meet basic human needs, parts and components, or software updates  29. Add 552.512 to subpart E to read including disaster, drought, or flood for personal, non-commercial use. as follows: relief; food, nutrition, or medicine (a) All transactions prohibited by this distribution; the provision of health part that are related to the provision, 552.512 Authorizing Certain Transactions in Support of services; assistance for vulnerable or directly or indirectly, of agricultural Nongovernmental Organizations Activities. displaced populations, including commodities, medicine, medical individuals with disabilities and the devices, replacement parts and (a) Except as provided in paragraph elderly; and environmental programs; components for medical devices, or (c) of this section, all transactions (2) Activities to support democracy software updates for medical devices to prohibited by this part that are building, including activities to support an individual whose property and ordinarily incident and necessary to the rule of law, citizen participation, interests in property are blocked activities described in paragraph (b) of government accountability and pursuant to this part are authorized, this section by a nongovernmental transparency, human rights and provided the items are in quantities organization are authorized, provided fundamental freedoms, access to consistent with personal, non- that the nongovernmental organization information, and civil society commercial use. is not a person whose property or development projects; (b) For the purposes of this section, interests in property are blocked (3) Activities to support education, agricultural commodities, medicine, and pursuant to this part. including combating illiteracy, medical devices are defined as follows: (b) The activities referenced in increasing access to education, (1) Agricultural commodities. For the paragraph (a) of this section are non- international exchanges, and assisting purposes of this section, agricultural commercial activities designed to education reform projects; commodities are: directly benefit the civilian population (4) Activities to support non- (i) Products that fall within the term that fall into one of the following commercial development projects agricultural commodity as defined in categories: VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00009 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78492 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations (1) Activities to support humanitarian 552.513 Transactions related to the Subpart ELicenses, Authorizations, projects to meet basic human needs, provision of agricultural commodities, and Statements of Licensing Policy including disaster, drought, or flood medicine, medical devices, replacement relief; food, nutrition, or medicine parts and components, or software updates  32. Add 553.512 to subpart E to read for personal, non-commercial use. distribution; the provision of health as follows: (a) All transactions prohibited by this services; assistance for vulnerable or part that are related to the provision, 553.512 Authorizing Certain displaced populations, including directly or indirectly, of agricultural Transactions in Support of individuals with disabilities and the Nongovernmental Organizations Activities. commodities, medicine, medical elderly; and environmental programs; devices, replacement parts and (a) Except as provided in paragraph (2) Activities to support democracy components for medical devices, or (c) of this section, all transactions building, including activities to support software updates for medical devices to prohibited by this part that are rule of law, citizen participation, an individual whose property and ordinarily incident and necessary to the government accountability and interests in property are blocked activities described in paragraph (b) of transparency, human rights and pursuant to this part are authorized, this section by a nongovernmental fundamental freedoms, access to provided the items are in quantities organization are authorized, provided information, and civil society consistent with personal, non- that the nongovernmental organization development projects; commercial use. is not a person whose property or (3) Activities to support education, (b) For the purposes of this section, interests in property are blocked including combating illiteracy, agricultural commodities, medicine, and pursuant to this part. increasing access to education, medical devices are defined as follows: (b) The activities referenced in international exchanges, and assisting (1) Agricultural commodities. For the paragraph (a) of this section are non- education reform projects; purposes of this section, agricultural commercial activities designed to (4) Activities to support non- commodities are: directly benefit the civilian population commercial development projects (i) Products that fall within the term that fall into one of the following directly benefiting civilians, including agricultural commodity as defined in categories: those related to health, food security, section 102 of the Agricultural Trade (1) Activities to support humanitarian and water and sanitation; Act of 1978 (7 U.S.C. 5602); and projects to meet basic human needs, (5) Activities to support (ii) That are intended for ultimate use including disaster, drought, or flood environmental and natural resource as: relief; food, nutrition, or medicine (A) Food for humans (including raw, distribution; the provision of health protection, including the preservation processed, and packaged foods; live services; assistance for vulnerable or and protection of threatened or animals; vitamins and minerals; food displaced populations, including endangered species, responsible and additives or supplements; and bottled individuals with disabilities and the transparent management of natural drinking water) or animals (including elderly; and environmental programs; resources, and the remediation of animal feeds); (2) Activities to support democracy pollution or other environmental (B) Seeds for food crops; building, including activities to support damage; and (C) Fertilizers or organic fertilizers; or rule of law, citizen participation, (6) Activities to support disarmament, (D) Reproductive materials (such as government accountability and demobilization, and reintegration (DDR) live animals, fertilized eggs, embryos, transparency, human rights and programs and peacebuilding, conflict and semen) for the production of food fundamental freedoms, access to prevention, and conflict resolution animals. information, and civil society programs. (2) Medicine. For the purposes of this development projects; (c) This section does not authorize section, medicine is an item that falls (3) Activities to support education, funds transfers initiated or processed within the definition of the term drug including combating illiteracy, with knowledge or reason to know that in section 201 of the Federal Food, increasing access to education, the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). international exchanges, and assisting transfers is a person blocked pursuant to (3) Medical devices. For the purposes education reform projects; this part, other than for the purpose of of this section, a medical device is an (4) Activities to support non- effecting the payment of taxes, fees, or item that falls within the definition of commercial development projects import duties, or the purchase or receipt device in section 201 of the Federal directly benefiting civilians, including of permits, licenses, or public utility Food, Drug, and Cosmetic Act (21 U.S.C. those related to health, food security, services. 321). and water and sanitation; (d) Specific licenses may be issued on (5) Activities to support Note 1 to 552.513. This section does not a case-by-case basis to authorize relieve any person authorized thereunder environmental and natural resource nongovernmental or other entities to from complying with any other applicable protection, including the preservation engage in other activities designed to laws or regulations. and protection of threatened or directly benefit the civilian population, endangered species, responsible and including support for the removal of PART 553CENTRAL AFRICAN transparent management of natural landmines and economic development REPUBLIC SANCTIONS resources, and the remediation of projects directly benefiting the civilian REGULATIONS pollution or other environmental population. damage; and  31. The authority citation for part 553 (6) Activities to support disarmament, Note 1 to 552.512. This section does not continues to read as follows: demobilization, and reintegration (DDR) relieve any person authorized thereunder programs and peacebuilding, conflict from complying with any other applicable Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); laws or regulations. 50 U.S.C. 16011651, 17011706; 22 U.S.C. prevention, and conflict resolution 287c; Pub. L. 101410, 104 Stat. 890, as programs.  30. Add 552.513 to subpart E to read amended (28 U.S.C. 2461 note); E.O. 13667, (c) This section does not authorize as follows: 79 FR 28387, 3 CFR, 2014 Comp., p. 243. funds transfers initiated or processed VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78493 with knowledge or reason to know that in section 201 of the Federal Food, international exchanges, and assisting the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). education reform projects; transfers is a person blocked pursuant to (3) Medical devices. For the purposes (4) Activities to support non- this part, other than for the purpose of of this section, a medical device is an commercial development projects effecting the payment of taxes, fees, or item that falls within the definition of directly benefiting civilians, including import duties, or the purchase or receipt device in section 201 of the Federal those related to health, food security, of permits, licenses, or public utility Food, Drug, and Cosmetic Act (21 U.S.C. and water and sanitation; services. 321). (5) Activities to support (d) Specific licenses may be issued on environmental and natural resource Note 1 to 553.513. This section does not a case-by-case basis to authorize relieve any person authorized thereunder protection, including the preservation nongovernmental or other entities to from complying with any other applicable and protection of threatened or engage in other activities designed to laws or regulations. endangered species, responsible and directly benefit the civilian population, transparent management of natural including support for the removal of PART 555MALI SANCTIONS resources, and the remediation of landmines and economic development REGULATIONS pollution or other environmental projects directly benefiting the civilian damage; and population.  34. The authority citation for part 555 (6) Activities to support disarmament, Note 1 to 553.512. This section does not continues to read as follows: demobilization, and reintegration (DDR) relieve any person authorized thereunder Authority: 25 U.S.C. 396 et seq., 396a et programs and peacebuilding, conflict from complying with any other applicable seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 prevention, and conflict resolution laws or regulations. et seq., 1001 et seq., 1701 et seq.; 43 U.S.C. programs. 1301 et seq., 1331 et seq., 1801 et seq. (c) This section does not authorize  33. Add 553.513 to subpart E to read funds transfers initiated or processed as follows: Subpart ELicenses, Authorizations, with knowledge or reason to know that and Statements of Licensing Policy 553.513 Transactions related to the the intended beneficiary of such provision of agricultural commodities, transfers is a person blocked pursuant to medicine, medical devices, replacement  35. Add 555.511 to subpart E to read this part, other than for the purpose of parts and components, or software updates as follows: effecting the payment of taxes, fees, or for personal, non-commercial use. 555.511 Authorizing Certain import duties, or the purchase or receipt (a) All transactions prohibited by this Transactions in Support of of permits, licenses, or public utility part that are related to the provision, Nongovernmental Organizations Activities. services. directly or indirectly, of agricultural (a) Except as provided in paragraph (d) Specific licenses may be issued on commodities, medicine, medical (c) of this section, all transactions a case-by-case basis to authorize devices, replacement parts and prohibited by this part that are nongovernmental or other entities to components for medical devices, or ordinarily incident and necessary to the engage in other activities designed to software updates for medical devices to activities described in paragraph (b) of directly benefit the civilian population, an individual whose property and this section by a nongovernmental including support for the removal of interests in property are blocked organization are authorized, provided landmines and economic development pursuant to this part are authorized, that the nongovernmental organization projects directly benefiting the civilian provided the items are in quantities is not a person whose property or population. consistent with personal, non- interests in property are blocked commercial use. Note 1 to 555.511. This section does not pursuant to this part. relieve any person authorized thereunder (b) For the purposes of this section, (b) The activities referenced in from complying with any other applicable agricultural commodities, medicine, and paragraph (a) of this section are non- laws or regulations. medical devices are defined as follows: commercial activities designed to (1) Agricultural commodities. For the  36. Add 555.512 to subpart E read as directly benefit the civilian population purposes of this section, agricultural follows: that fall into one of the following commodities are: (i) Products that fall within the term categories: 555.512 Transactions related to the agricultural commodity as defined in (1) Activities to support humanitarian provision of agricultural commodities, projects to meet basic human needs, medicine, medical devices, replacement section 102 of the Agricultural Trade including disaster, drought, or flood parts and components, or software updates Act of 1978 (7 U.S.C. 5602); and relief; food, nutrition, or medicine for personal, non-commercial use. (ii) That are intended for ultimate use distribution; the provision of health (a) All transactions prohibited by this as: (A) Food for humans (including raw, services; assistance for vulnerable or part that are related to the provision, processed, and packaged foods; live displaced populations, including directly or indirectly, of agricultural animals; vitamins and minerals; food individuals with disabilities and the commodities, medicine, medical additives or supplements; and bottled elderly; and environmental programs; devices, replacement parts and drinking water) or animals (including (2) Activities to support democracy components for medical devices, or animal feeds); building, including activities to support software updates for medical devices to (B) Seeds for food crops; rule of law, citizen participation, an individual whose property and (C) Fertilizers or organic fertilizers; or government accountability and interests in property are blocked (D) Reproductive materials (such as transparency, human rights and pursuant to this part are authorized, live animals, fertilized eggs, embryos, fundamental freedoms, access to provided the items are in quantities and semen) for the production of food information, and civil society consistent with personal, non- animals. development projects; commercial use. (2) Medicine. For the purposes of this (3) Activities to support education, (b) For the purposes of this section, section, medicine is an item that falls including combating illiteracy, agricultural commodities, medicine, and within the definition of the term drug increasing access to education, medical devices are defined as follows: VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00011 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78494 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations (1) Agricultural commodities. For the (b) The activities referenced in from complying with any other applicable purposes of this section, agricultural paragraph (a) of this section are non- laws or regulations. commodities are: commercial activities designed to  39. Add 558.512 to subpart E to read (i) Products that fall within the term directly benefit the civilian population as follows: agricultural commodity as defined in that fall into one of the following section 102 of the Agricultural Trade categories: 558.512 Transactions related to the Act of 1978 (7 U.S.C. 5602); and (1) Activities to support humanitarian provision of agricultural commodities, (ii) That are intended for ultimate use projects to meet basic human needs, medicine, medical devices, replacement parts and components, or software updates as: including disaster, drought, or flood for personal, non-commercial use. (A) Food for humans (including raw, relief; food, nutrition, or medicine processed, and packaged foods; live distribution; the provision of health (a) All transactions prohibited by this animals; vitamins and minerals; food services; assistance for vulnerable or part that are related to the provision, additives or supplements; and bottled displaced populations, including directly or indirectly, of agricultural drinking water) or animals (including individuals with disabilities and the commodities, medicine, medical animal feeds); elderly; and environmental programs; devices, replacement parts and (B) Seeds for food crops; (2) Activities to support democracy components for medical devices, or (C) Fertilizers or organic fertilizers; or building, including activities to support software updates for medical devices to (D) Reproductive materials (such as rule of law, citizen participation, an individual whose property and live animals, fertilized eggs, embryos, government accountability and interests in property are blocked and semen) for the production of food transparency, human rights and pursuant to this part are authorized, animals. fundamental freedoms, access to provided the items are in quantities (2) Medicine. For the purposes of this information, and civil society consistent with personal, non- section, medicine is an item that falls development projects; commercial use. (b) For the purposes of this section, within the definition of the term drug (3) Activities to support education, agricultural commodities, medicine, and in section 201 of the Federal Food, including combating illiteracy, medical devices are defined as follows: Drug, and Cosmetic Act (21 U.S.C. 321). increasing access to education, (1) Agricultural commodities. For the (3) Medical devices. For the purposes international exchanges, and assisting purposes of this section, agricultural of this section, a medical device is an education reform projects; commodities are: item that falls within the definition of (4) Activities to support non- (i) Products that fall within the term device in section 201 of the Federal commercial development projects agricultural commodity as defined in Food, Drug, and Cosmetic Act (21 U.S.C. directly benefiting civilians, including section 102 of the Agricultural Trade 321). those related to health, food security, Act of 1978 (7 U.S.C. 5602); and and water and sanitation; Note 1 to 555.512. This section does not (ii) That are intended for ultimate use (5) Activities to support relieve any person authorized thereunder as: environmental and natural resource from complying with any other applicable (A) Food for humans (including raw, laws or regulations. protection, including the preservation processed, and packaged foods; live and protection of threatened or animals; vitamins and minerals; food endangered species, responsible and PART 558SOUTH SUDAN additives or supplements; and bottled transparent management of natural SANCTIONS REGULATIONS drinking water) or animals (including resources, and the remediation of animal feeds);  37. The authority citation for part 558 pollution or other environmental (B) Seeds for food crops; continues to read as follows: damage; and (C) Fertilizers or organic fertilizers; or (6) Activities to support disarmament, Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); (D) Reproductive materials (such as demobilization, and reintegration (DDR) 50 U.S.C. 16011651, 17011706; Pub. L. live animals, fertilized eggs, embryos, programs and peacebuilding, conflict 101410, 104 Stat. 890 (28 U.S.C. 2461 note); and semen) for the production of food Pub. L. 11096, 121 Stat. 1011 (50 U.S.C. prevention, and conflict resolution animals. 1705 note); E.O. 13664, 79 FR 19283, April programs. (2) Medicine. For the purposes of this 7, 2014. (c) This section does not authorize section, medicine is an item that falls funds transfers initiated or processed within the definition of the term drug Subpart ELicenses, Authorizations, with knowledge or reason to know that in section 201 of the Federal Food, and Statements of Licensing Policy the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). transfers is a person blocked pursuant to (3) Medical devices. For the purposes  38. Add 558.511 to subpart E to read this part, other than for the purpose of of this section, a medical device is an as follows: effecting the payment of taxes, fees, or item that falls within the definition of 558.511 Authorizing Certain import duties, or the purchase or receipt device in section 201 of the Federal Transactions in Support of of permits, licenses, or public utility Food, Drug, and Cosmetic Act (21 U.S.C. Nongovernmental Organizations Activities. services. 321). (a) Except as provided in paragraph (d) Specific licenses may be issued on Note 1 to 558.512. This section does not (c) of this section, all transactions a case-by-case basis to authorize relieve any person authorized thereunder prohibited by this part that are nongovernmental or other entities to from complying with any other applicable ordinarily incident and necessary to the engage in other activities designed to laws or regulations. activities described in paragraph (b) of directly benefit the civilian population, this section by a nongovernmental including support for the removal of PART 562IRANIAN SECTOR AND organization are authorized, provided landmines and economic development HUMAN RIGHTS ABUSES SANCTIONS that the nongovernmental organization projects directly benefiting the civilian REGULATIONS is not a person whose property or population. interests in property are blocked Note 1 to 558.511. This section does not  40. The authority citation for part 562 pursuant to this part. relieve any person authorized thereunder continues to read as follows: VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00012 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78495 Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; resources, and the remediation of drinking water) or animals (including 31 U.S.C. 321(b); 50 U.S.C. 16011651, 1701 pollution or other environmental animal feeds); 1706; Pub. L. 101410, 104 Stat. 890 (28 damage; and (B) Seeds for food crops; U.S.C. 2461 note); Pub. L. 11096, 121 Stat. (6) Activities to support disarmament, (C) Fertilizers or organic fertilizers; or 1011 (50 U.S.C. 1705 note); Pub. L. 111195, demobilization, and reintegration (DDR) (D) Reproductive materials (such as 124 Stat. 1312 (22 U.S.C. 85018551); E.O. programs and peacebuilding, conflict live animals, fertilized eggs, embryos, 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 13553, 75 FR 60567, October 1, prevention, and conflict resolution and semen) for the production of food 2010; E.O. 13871, 84 FR 20761, May 10, programs. animals. 2019. (c) This section does not authorize (2) Medicine. For the purposes of this funds transfers initiated or processed section, medicine is an item that falls Subpart ELicenses, Authorizations, with knowledge or reason to know that within the definition of the term drug and Statements of Licensing Policy the intended beneficiary of such in section 201 of the Federal Food, transfers is a person blocked pursuant to Drug, and Cosmetic Act (21 U.S.C. 321).  41. Add 562.510 to subpart E to read this part, other than for the purpose of (3) Medical devices. For the purposes as follows: effecting the payment of taxes, fees, or of this section, a medical device is an 562.510 Authorizing Certain import duties, or the purchase or receipt item that falls within the definition of Transactions in Support of of permits, licenses, or public utility device in section 201 of the Federal Nongovernmental Organizations Activities. services. Food, Drug, and Cosmetic Act (21 U.S.C. (a) Except as provided in paragraph (d) Specific licenses may be issued on 321). (c) of this section, all transactions a case-by-case basis to authorize Note 1 to 562.511. This section does not prohibited by this part that are nongovernmental or other entities to relieve any person authorized thereunder ordinarily incident and necessary to the engage in other activities designed to from complying with any other applicable activities described in paragraph (b) of directly benefit the civilian population, laws or regulations. this section by a nongovernmental including support for the removal of organization are authorized, provided landmines and economic development PART 569SYRIARELATED that the nongovernmental organization projects directly benefiting the civilian SANCTIONS REGULATIONS is not a person whose property or population. interests in property are blocked Note 1 to 562.510. This section does not  43. The authority citation for part 569 pursuant to this part. relieve any person authorized thereunder continues to read as follows: (b) The activities referenced in from complying with any other applicable Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); paragraph (a) of this section are non- laws or regulations. 50 U.S.C. 16011651, 17011706; 28 U.S.C. commercial activities designed to 2461 note; 50 U.S.C. 1705 note; E.O. 13894,  42. Add 562.511 to subpart E to read directly benefit the civilian population 84 FR 55851, October 17, 2019. as follows: that fall into one of the following Subpart ELicenses, Authorizations, categories: 562.511 Transactions related to the and Statements of Licensing Policy (1) Activities to support humanitarian provision of agricultural commodities, projects to meet basic human needs, medicine, medical devices, replacement  44. Add 569.511 to subpart E to read including disaster, drought, or flood parts and components, or software updates as follows: relief; food, nutrition, or medicine for personal, non-commercial use. distribution; the provision of health (a) All transactions prohibited by this 569.511 Authorizing Certain services; assistance for vulnerable or part that are related to the provision, Transactions in Support of displaced populations, including directly or indirectly, of agricultural Nongovernmental Organizations Activities. individuals with disabilities and the commodities, medicine, medical (a) Except as provided in paragraph elderly; and environmental programs; devices, replacement parts and (c) of this section, all transactions (2) Activities to support democracy components for medical devices, or prohibited by this part that are building, including activities to support software updates for medical devices to ordinarily incident and necessary to the rule of law, citizen participation, an individual whose property and activities described in paragraph (b) of government accountability and interests in property are blocked this section by a nongovernmental transparency, human rights and pursuant to this part are authorized, organization are authorized, provided fundamental freedoms, access to provided the items are in quantities that the nongovernmental organization information, and civil society consistent with personal, non- is not a person whose property or development projects; commercial use. interests in property are blocked (3) Activities to support education, (b) For the purposes of this section, pursuant to this part. including combating illiteracy, agricultural commodities, medicine, and (b) The activities referenced in increasing access to education, medical devices are defined as follows: paragraph (a) of this section are non- international exchanges, and assisting (1) Agricultural commodities. For the commercial activities designed to education reform projects; purposes of this section, agricultural directly benefit the civilian population (4) Activities to support non- commodities are: that fall into one of the following commercial development projects (i) Products that fall within the term categories: directly benefiting civilians, including agricultural commodity as defined in (1) Activities to support humanitarian those related to health, food security, section 102 of the Agricultural Trade projects to meet basic human needs, and water and sanitation; Act of 1978 (7 U.S.C. 5602); and including disaster, drought, or flood (5) Activities to support (ii) That are intended for ultimate use relief; food, nutrition, or medicine environmental and natural resource as: distribution; the provision of health protection, including the preservation (A) Food for humans (including raw, services; assistance for vulnerable or and protection of threatened or processed, and packaged foods; live displaced populations, including endangered species, responsible and animals; vitamins and minerals; food individuals with disabilities and the transparent management of natural additives or supplements; and bottled elderly; and environmental programs; VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00013 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78496 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations (2) Activities to support democracy software updates for medical devices to prohibited by this part that are building, including activities to support an individual whose property and ordinarily incident and necessary to the rule of law, citizen participation, interests in property are blocked activities described in paragraph (b) of government accountability and pursuant to this part are authorized, this section by a nongovernmental transparency, human rights and provided the items are in quantities organization are authorized, provided fundamental freedoms, access to consistent with personal, non- that the nongovernmental organization information, and civil society commercial use. is not a person whose property or development projects; (b) For the purposes of this section, interests in property are blocked (3) Activities to support education, agricultural commodities, medicine, and pursuant to this part. including combating illiteracy, medical devices are defined as follows: (b) The activities referenced in increasing access to education, (1) Agricultural commodities. For the paragraph (a) of this section are non- international exchanges, and assisting purposes of this section, agricultural commercial activities designed to education reform projects; commodities are: directly benefit the civilian population (4) Activities to support non- (i) Products that fall within the term that fall into one of the following commercial development projects agricultural commodity as defined in categories: directly benefiting civilians, including section 102 of the Agricultural Trade (1) Activities to support humanitarian those related to health, food security, Act of 1978 (7 U.S.C. 5602); and projects to meet basic human needs, and water and sanitation; (ii) That are intended for ultimate use including disaster, drought, or flood (5) Activities to support as: relief; food, nutrition, or medicine environmental and natural resource (A) Food for humans (including raw, distribution; the provision of health protection, including the preservation processed, and packaged foods; live services; assistance for vulnerable or and protection of threatened or animals; vitamins and minerals; food displaced populations, including endangered species, responsible and additives or supplements; and bottled individuals with disabilities and the transparent management of natural drinking water) or animals (including elderly; and environmental programs; resources, and the remediation of animal feeds); (2) Activities to support democracy (B) Seeds for food crops; pollution or other environmental building, including activities to support (C) Fertilizers or organic fertilizers; or damage; and rule of law, citizen participation, (D) Reproductive materials (such as (6) Activities to support disarmament, government accountability and live animals, fertilized eggs, embryos, demobilization, and reintegration (DDR) transparency, human rights and and semen) for the production of food programs and peacebuilding, conflict fundamental freedoms, access to animals. prevention, and conflict resolution information, and civil society (2) Medicine. For the purposes of this programs. development projects; section, medicine is an item that falls (c) This section does not authorize (3) Activities to support education, within the definition of the term drug funds transfers initiated or processed including combating illiteracy, in section 201 of the Federal Food, with knowledge or reason to know that increasing access to education, Drug, and Cosmetic Act (21 U.S.C. 321). the intended beneficiary of such international exchanges, and assisting (3) Medical devices. For the purposes transfers is a person blocked pursuant to education reform projects; of this section, a medical device is an this part, other than for the purpose of (4) Activities to support non- item that falls within the definition of effecting the payment of taxes, fees, or commercial development projects device in section 201 of the Federal import duties, or the purchase or receipt directly benefiting civilians, including Food, Drug, and Cosmetic Act (21 U.S.C. of permits, licenses, or public utility those related to health, food security, 321). services. and water and sanitation; (d) Specific licenses may be issued on Note 1 to 569.512. This section does not (5) Activities to support relieve any person authorized thereunder a case-by-case basis to authorize environmental and natural resource from complying with any other applicable nongovernmental or other entities to protection, including the preservation laws or regulations. engage in other activities designed to and protection of threatened or directly benefit the civilian population, endangered species, responsible and PART 570LIBYAN SANCTIONS including support for the removal of transparent management of natural REGULATIONS landmines and economic development resources, and the remediation of projects directly benefiting the civilian  46. The authority citation for part 570 pollution or other environmental population. continues to read as follows: damage; and (6) Activities to support disarmament, Note 1 to 569.511. This section does not Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); demobilization, and reintegration (DDR) relieve any person authorized thereunder 50 U.S.C. 16011651, 17011706; 22 U.S.C. from complying with any other applicable 287c; Pub. L. 101410, 104 Stat. 890, as programs and peacebuilding, conflict laws or regulations. amended (28 U.S.C. 2461 note); E.O. 13566, prevention, and conflict resolution 76 FR 11315, 3 CFR, 2011 Comp., p. 222; E.O. programs.  45. Add 569.512 to subpart E to read 13726, 81 FR 23559, 3 CFR, 2016 Comp., p. (c) This section does not authorize as follows: 454. funds transfers initiated or processed 569.512 Transactions related to the with knowledge or reason to know that provision of agricultural commodities, Subpart ELicenses, Authorizations, the intended beneficiary of such medicine, medical devices, replacement and Statements of Licensing Policy transfers is a person blocked pursuant to parts and components, or software updates this part, other than for the purpose of  47. Add 570.517 to subpart E to read for personal, non-commercial use. effecting the payment of taxes, fees, or as follows: (a) All transactions prohibited by this import duties, or the purchase or receipt part that are related to the provision, 570.517 Authorizing Certain of permits, licenses, or public utility directly or indirectly, of agricultural Transactions in Support of services. commodities, medicine, medical Nongovernmental Organizations Activities. (d) Specific licenses may be issued on devices, replacement parts and (a) Except as provided in paragraph a case-by-case basis to authorize components for medical devices, or (c) of this section, all transactions nongovernmental or other entities to VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00014 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78497 engage in other activities designed to from complying with any other applicable (4) Activities to support non- directly benefit the civilian population, laws or regulations. commercial development projects including support for the removal of directly benefiting civilians, including landmines and economic development PART 576IRAQ STABILIZATION AND those related to health, food security, projects directly benefiting the civilian INSURGENCY SANCTIONS and water and sanitation; population. REGULATIONS (5) Activities to support environmental and natural resource Note 1 to 570.517. This section does not 49. The authority citation for part 576 protection, including the preservation relieve any person authorized thereunder continues to read as follows: and protection of threatened or from complying with any other applicable laws or regulations. Authority: 3 U.S.C. 301; 22 U.S.C. 287c; endangered species, responsible and 31 U.S.C. 321(b); 50 U.S.C. 16011651, 1701 transparent management of natural  48. Add 570.518 to subpart E to read 1706; Pub. L. 101410, 104 Stat. 890, as resources, and the remediation of as follows: amended (28 U.S.C. 2461 note); E.O. 13303, pollution or other environmental 68 FR 31931, 3 CFR, 2003 Comp., p. 227; E.O. damage; and 570.518 Transactions related to the 13315, 68 FR 52315, 3 CFR, 2003 Comp., p. (6) Activities to support disarmament, provision of agricultural commodities, 252; E.O. 13350, 69 FR 46055, 3 CFR, 2004 medicine, medical devices, replacement Comp., p. 196; E.O. 13364, 69 FR 70177, 3 demobilization, and reintegration (DDR) parts and components, or software updates CFR, 2004 Comp., p. 236; E.O. 13438, 72 FR programs and peacebuilding, conflict for personal, non-commercial use. 39719, 3 CFR, 2007 Comp., p. 224; E.O. prevention, and conflict resolution (a) All transactions prohibited by this 13668, 79 FR 31019, 3 CFR, 2014 Comp., p. programs. part that are related to the provision, 248. (c) This section does not authorize funds transfers initiated or processed directly or indirectly, of agricultural Subpart ELicenses, Authorizations, with knowledge or reason to know that commodities, medicine, medical and Statements of Licensing Policy the intended beneficiary of such devices, replacement parts and transfers is a person blocked pursuant to components for medical devices, or  50. Add 576.515 to subpart E to read this part, other than for the purpose of software updates for medical devices to as follows: effecting the payment of taxes, fees, or an individual whose property and import duties, or the purchase or receipt interests in property are blocked 576.515 Authorizing Certain of permits, licenses, or public utility pursuant to this part are authorized, Transactions in Support of provided the items are in quantities Nongovernmental Organizations Activities. services. (d) Specific licenses may be issued on consistent with personal, non- (a) Except as provided in paragraph a case-by-case basis to authorize commercial use. (c) of this section, all transactions nongovernmental or other entities to (b) For the purposes of this section, prohibited by this part that are engage in other activities designed to agricultural commodities, medicine, and ordinarily incident and necessary to the directly benefit the civilian population, medical devices are defined as follows: activities described in paragraph (b) of including support for the removal of (1) Agricultural commodities. For the this section by a nongovernmental landmines and economic development purposes of this section, agricultural organization are authorized, provided projects directly benefiting the civilian commodities are: that the nongovernmental organization population. (i) Products that fall within the term is not a person whose property or agricultural commodity as defined in interests in property are blocked Note 1 to 576.515. This section does not section 102 of the Agricultural Trade pursuant to this part. relieve any person authorized thereunder Act of 1978 (7 U.S.C. 5602); and (b) The activities referenced in from complying with any other applicable laws or regulations. (ii) That are intended for ultimate use paragraph (a) of this section are non- as: commercial activities designed to  51. Add 576.516 to subpart E to read (A) Food for humans (including raw, directly benefit the civilian population as follows: processed, and packaged foods; live that fall into one of the following 576.516 Transactions related to the animals; vitamins and minerals; food categories: provision of agricultural commodities, additives or supplements; and bottled (1) Activities to support humanitarian medicine, medical devices, replacement drinking water) or animals (including projects to meet basic human needs, parts and components, or software updates animal feeds); including disaster, drought, or flood for personal, non-commercial use. (B) Seeds for food crops; relief; food, nutrition, or medicine (a) All transactions prohibited by this (C) Fertilizers or organic fertilizers; or distribution; the provision of health part that are related to the provision, (D) Reproductive materials (such as services; assistance for vulnerable or directly or indirectly, of agricultural live animals, fertilized eggs, embryos, displaced populations, including commodities, medicine, medical and semen) for the production of food individuals with disabilities and the devices, replacement parts and animals. elderly; and environmental programs; components for medical devices, or (2) Medicine. For the purposes of this (2) Activities to support democracy software updates for medical devices to section, medicine is an item that falls building, including activities to support an individual whose property and within the definition of the term drug rule of law, citizen participation, interests in property are blocked in section 201 of the Federal Food, government accountability and pursuant to this part are authorized, Drug, and Cosmetic Act (21 U.S.C. 321). transparency, human rights and provided the items are in quantities (3) Medical devices. For the purposes fundamental freedoms, access to consistent with personal, non- of this section, a medical device is an information, and civil society commercial use. item that falls within the definition of development projects; (b) For the purposes of this section, device in section 201 of the Federal (3) Activities to support education, agricultural commodities, medicine, and Food, Drug, and Cosmetic Act (21 U.S.C. including combating illiteracy, medical devices are defined as follows: 321). increasing access to education, (1) Agricultural commodities. For the Note 1 to 570.518. This section does not international exchanges, and assisting purposes of this section, agricultural relieve any person authorized thereunder education reform projects; commodities are: VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00015 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78498 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations (i) Products that fall within the term commercial activities designed to  54. Add 578.513 to subpart E to read agricultural commodity as defined in directly benefit the civilian population as follows: section 102 of the Agricultural Trade that fall into one of the following 578.513 Transactions related to the Act of 1978 (7 U.S.C. 5602); and categories: provision of agricultural commodities, (ii) That are intended for ultimate use (1) Activities to support humanitarian medicine, medical devices, replacement as: projects to meet basic human needs, parts and components, or software updates (A) Food for humans (including raw, including disaster, drought, or flood for personal, non-commercial use. processed, and packaged foods; live relief; food, nutrition, or medicine (a) All transactions prohibited by this animals; vitamins and minerals; food distribution; the provision of health part that are related to the provision, additives or supplements; and bottled services; assistance for vulnerable or directly or indirectly, of agricultural drinking water) or animals (including displaced populations, including commodities, medicine, medical animal feeds); individuals with disabilities and the devices, replacement parts and (B) Seeds for food crops; elderly; and environmental programs; components for medical devices, or (C) Fertilizers or organic fertilizers; or (2) Activities to support democracy software updates for medical devices to (D) Reproductive materials (such as building, including activities to support an individual whose property and live animals, fertilized eggs, embryos, rule of law, citizen participation, interests in property are blocked and semen) for the production of food government accountability and pursuant to this part are authorized, animals. transparency, human rights and (2) Medicine. For the purposes of this provided the items are in quantities fundamental freedoms, access to section, medicine is an item that falls consistent with personal, non- information, and civil society within the definition of the term drug commercial use. development projects; (b) For the purposes of this section, in section 201 of the Federal Food, (3) Activities to support education, agricultural commodities, medicine, and Drug, and Cosmetic Act (21 U.S.C. 321). (3) Medical devices. For the purposes including combating illiteracy, medical devices are defined as follows: increasing access to education, (1) Agricultural commodities. For the of this section, a medical device is an international exchanges, and assisting purposes of this section, agricultural item that falls within the definition of education reform projects; commodities are: device in section 201 of the Federal (4) Activities to support non- (i) Products that fall within the term Food, Drug, and Cosmetic Act (21 U.S.C. commercial development projects agricultural commodity as defined in 321). directly benefiting civilians, including section 102 of the Agricultural Trade Note 1 to 576.516. This section does not those related to health, food security, Act of 1978 (7 U.S.C. 5602); and relieve any person authorized thereunder and water and sanitation; (ii) That are intended for ultimate use from complying with any other applicable (5) Activities to support as: laws or regulations. environmental and natural resource (A) Food for humans (including raw, protection, including the preservation processed, and packaged foods; live PART 578CYBERRELATED and protection of threatened or animals; vitamins and minerals; food SANCTIONS REGULATIONS endangered species, responsible and additives or supplements; and bottled transparent management of natural drinking water) or animals (including  52. The authority citation for part 578 resources, and the remediation of animal feeds); continues to read as follows: pollution or other environmental (B) Seeds for food crops; Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); damage; and (C) Fertilizers or organic fertilizers; or 50 U.S.C. 16011651, 17011706; Pub. L. (6) Activities to support disarmament, (D) Reproductive materials (such as 101410, 104 Stat. 890, as amended (28 demobilization, and reintegration (DDR) live animals, fertilized eggs, embryos, U.S.C. 2461 note); Pub. L. 11544, 131 Stat. programs and peacebuilding, conflict and semen) for the production of food 886 (codified in scattered sections of 22 U.S.C.); E.O. 13694, 80 FR 18077, 3 CFR 2015 prevention, and conflict resolution animals. Comp., p. 297; E.O. 13757, 82 FR 1, 3 CFR programs. (2) Medicine. For the purposes of this 2016 Comp., p. 659. (c) This section does not authorize section, medicine is an item that falls funds transfers initiated or processed within the definition of the term drug Subpart ELicenses, Authorizations, with knowledge or reason to know that in section 201 of the Federal Food, and Statements of Licensing Policy the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). transfers is a person blocked pursuant to (3) Medical devices. For the purposes  53. Add 578.512 to subpart E to read this part, other than for the purpose of of this section, a medical device is an as follows: effecting the payment of taxes, fees, or item that falls within the definition of 578.512 Authorizing Certain import duties, or the purchase or receipt device in section 201 of the Federal Transactions in Support of of permits, licenses, or public utility Food, Drug, and Cosmetic Act (21 U.S.C. Nongovernmental Organizations Activities. services. 321). (a) Except as provided in paragraph (d) Specific licenses may be issued on Note 1 to 578.513. This section does not (c) of this section, all transactions a case-by-case basis to authorize relieve any person authorized thereunder prohibited by this part that are nongovernmental or other entities to from complying with any other applicable ordinarily incident and necessary to the engage in other activities designed to laws or regulations. activities described in paragraph (b) of directly benefit the civilian population, this section by a nongovernmental including support for the removal of PART 579FOREIGN INTERFERENCE organization are authorized, provided landmines and economic development IN U.S. ELECTIONS SANCTIONS that the nongovernmental organization projects directly benefiting the civilian REGULATIONS is not a person whose property or population. interests in property are blocked  55. The authority citation for part 579 Note 1 to 578.512. This section does not pursuant to this part. relieve any person authorized thereunder continues to read as follows: (b) The activities referenced in from complying with any other applicable Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); paragraph (a) of this section are non- laws or regulations. 50 U.S.C. 16011651, 17011706; Pub. L. VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00016 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78499 101410, 104 Stat. 890 (28 U.S.C. 2461 note); prevention, and conflict resolution and semen) for the production of food Pub. L. 11096, 121 Stat. 1011 (50 U.S.C. programs. animals. 1705 note); E.O. 13848, 83 FR 46843, (c) This section does not authorize (2) Medicine. For the purposes of this September 12, 2018. funds transfers initiated or processed section, medicine is an item that falls with knowledge or reason to know that within the definition of the term drug Subpart ELicenses, Authorizations, the intended beneficiary of such in section 201 of the Federal Food, and Statements of Licensing Policy transfers is a person blocked pursuant to Drug, and Cosmetic Act (21 U.S.C. 321).  56. Add 579.511 to subpart E to read this part, other than for the purpose of (3) Medical devices. For the purposes as follows: effecting the payment of taxes, fees, or of this section, a medical device is an import duties, or the purchase or receipt item that falls within the definition of 579.511 Authorizing Certain of permits, licenses, or public utility device in section 201 of the Federal Transactions in Support of services. Food, Drug, and Cosmetic Act (21 U.S.C. Nongovernmental Organizations Activities. (d) Specific licenses may be issued on 321). (a) Except as provided in paragraph a case-by-case basis to authorize Note 1 to 579.512. This section does not (c) of this section, all transactions nongovernmental or other entities to relieve any person authorized thereunder prohibited by this part that are engage in other activities designed to from complying with any other applicable ordinarily incident and necessary to the directly benefit the civilian population, laws or regulations. activities described in paragraph (b) of including support for the removal of this section by a nongovernmental landmines and economic development PART 582NICARAGUA SANCTIONS organization are authorized, provided projects directly benefiting the civilian REGULATIONS that the nongovernmental organization population. is not a person whose property or  58. The authority citation for part 582 interests in property are blocked Note 1 to 579.511. This section does not continues to read as follows: relieve any person authorized thereunder pursuant to this part. from complying with any other applicable Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); (b) The activities referenced in laws or regulations. 50 U.S.C. 16011651, 17011706; 28 U.S.C. paragraph (a) of this section are non- 2461 note; 50 U.S.C. 1705 note; 50 U.S.C. commercial activities designed to  57. Add 579.512 to subpart E to read 1701 note; E.O. 13851, 83 FR 61505, 3 CFR, directly benefit the civilian population as follows: 2018 Comp., p. 884. that fall into one of the following categories: 579.512 Transactions related to the Subpart ELicenses, Authorizations, provision of agricultural commodities, and Statements of Licensing Policy (1) Activities to support humanitarian medicine, medical devices, replacement projects to meet basic human needs, parts and components, or software updates  59. Add 582.511 to subpart E to read including disaster, drought, or flood for personal, non-commercial use. as follows: relief; food, nutrition, or medicine (a) All transactions prohibited by this distribution; the provision of health 582.511 Authorizing Certain part that are related to the provision, services; assistance for vulnerable or Transactions in Support of displaced populations, including directly or indirectly, of agricultural Nongovernmental Organizations Activities. commodities, medicine, medical individuals with disabilities and the (a) Except as provided in paragraph devices, replacement parts and elderly; and environmental programs; (c) of this section, all transactions components for medical devices, or (2) Activities to support democracy prohibited by this part that are software updates for medical devices to building, including activities to support ordinarily incident and necessary to the an individual whose property and rule of law, citizen participation, activities described in paragraph (b) of interests in property are blocked government accountability and this section by a nongovernmental pursuant to this part are authorized, transparency, human rights and organization are authorized, provided provided the items are in quantities fundamental freedoms, access to that the nongovernmental organization consistent with personal, non- information, and civil society is not a person whose property or commercial use. development projects; interests in property are blocked (3) Activities to support education, (b) For the purposes of this section, pursuant to this part. including combating illiteracy, agricultural commodities, medicine, and (b) The activities referenced in increasing access to education, medical devices are defined as follows: paragraph (a) of this section are non- international exchanges, and assisting (1) Agricultural commodities. For the commercial activities designed to education reform projects; purposes of this section, agricultural directly benefit the civilian population (4) Activities to support non- commodities are: that fall into one of the following commercial development projects (i) Products that fall within the term categories: directly benefiting civilians, including agricultural commodity as defined in (1) Activities to support humanitarian those related to health, food security, section 102 of the Agricultural Trade projects to meet basic human needs, and water and sanitation; Act of 1978 (7 U.S.C. 5602); and including disaster, drought, or flood (5) Activities to support (ii) That are intended for ultimate use relief; food, nutrition, or medicine environmental and natural resource as: distribution; the provision of health protection, including the preservation (A) Food for humans (including raw, services; assistance for vulnerable or and protection of threatened or processed, and packaged foods; live displaced populations, including endangered species, responsible and animals; vitamins and minerals; food individuals with disabilities and the transparent management of natural additives or supplements; and bottled elderly; and environmental programs; resources, and the remediation of drinking water) or animals (including (2) Activities to support democracy pollution or other environmental animal feeds); building, including activities to support damage; and (B) Seeds for food crops; rule of law, citizen participation, (6) Activities to support disarmament, (C) Fertilizers or organic fertilizers; or government accountability and demobilization, and reintegration (DDR) (D) Reproductive materials (such as transparency, human rights and programs and peacebuilding, conflict live animals, fertilized eggs, embryos, fundamental freedoms, access to VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00017 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78500 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations information, and civil society consistent with personal, non- organization are authorized, provided development projects; commercial use. that the nongovernmental organization (3) Activities to support education, (b) For the purposes of this section, is not a person whose property or including combating illiteracy, agricultural commodities, medicine, and interests in property are blocked increasing access to education, medical devices are defined as follows: pursuant to this part. international exchanges, and assisting (1) Agricultural commodities. For the (b) The activities referenced in education reform projects; purposes of this section, agricultural paragraph (a) of this section are non- (4) Activities to support non- commodities are: commercial activities designed to commercial development projects (i) Products that fall within the term directly benefit the civilian population directly benefiting civilians, including agricultural commodity as defined in that fall into one of the following those related to health, food security, section 102 of the Agricultural Trade categories: and water and sanitation; Act of 1978 (7 U.S.C. 5602); and (1) Activities to support humanitarian (ii) That are intended for ultimate use projects to meet basic human needs, (5) Activities to support as: including disaster, drought, or flood environmental and natural resource (A) Food for humans (including raw, relief; food, nutrition, or medicine protection, including the preservation processed, and packaged foods; live distribution; the provision of health and protection of threatened or animals; vitamins and minerals; food services; assistance for vulnerable or endangered species, responsible and additives or supplements; and bottled displaced populations, including transparent management of natural drinking water) or animals (including individuals with disabilities and the resources, and the remediation of animal feeds); elderly; and environmental programs; pollution or other environmental (B) Seeds for food crops; (2) Activities to support democracy damage; and (C) Fertilizers or organic fertilizers; or building, including activities to support (6) Activities to support disarmament, (D) Reproductive materials (such as rule of law, citizen participation, demobilization, and reintegration (DDR) live animals, fertilized eggs, embryos, government accountability and programs and peacebuilding, conflict and semen) for the production of food transparency, human rights and prevention, and conflict resolution animals. fundamental freedoms, access to programs. (2) Medicine. For the purposes of this information, and civil society (c) This section does not authorize section, medicine is an item that falls development projects; funds transfers initiated or processed within the definition of the term drug (3) Activities to support education, with knowledge or reason to know that in section 201 of the Federal Food, including combating illiteracy, the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). increasing access to education, transfers is a person blocked pursuant to (3) Medical devices. For the purposes international exchanges, and assisting this part, other than for the purpose of of this section, a medical device is an education reform projects; effecting the payment of taxes, fees, or item that falls within the definition of (4) Activities to support non- import duties, or the purchase or receipt device in section 201 of the Federal commercial development projects of permits, licenses, or public utility Food, Drug, and Cosmetic Act (21 U.S.C. directly benefiting civilians, including services. 321). those related to health, food security, (d) Specific licenses may be issued on and water and sanitation; Note 1 to 582.512. This section does not a case-by-case basis to authorize relieve any person authorized thereunder (5) Activities to support nongovernmental or other entities to from complying with any other applicable environmental and natural resource engage in other activities designed to laws or regulations. protection, including the preservation directly benefit the civilian population, and protection of threatened or including support for the removal of PART 583GLOBAL MAGNITSKY endangered species, responsible and landmines and economic development SANCTIONS REGULATIONS transparent management of natural projects directly benefiting the civilian resources, and the remediation of population.  61. The authority citation for part 583 pollution or other environmental Note 1 to 582.511. This section does not continues to read as follows: damage; and relieve any person authorized thereunder (6) Activities to support disarmament, Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); from complying with any other applicable demobilization, and reintegration (DDR) 50 U.S.C. 16011651, 17011706; Pub. L. laws or regulations. 101410, 104 Stat. 890, as amended (28 programs and peacebuilding, conflict  60. Add 582.512 to subpart E to read U.S.C. 2461 note); Pub. L. 114328, Div. A, prevention, and conflict resolution Title XII, Subt. F, 130 Stat. 2533 (22 U.S.C. programs. as follows: 2656 note); E.O. 13818, 82 FR 60839, 3 CFR, (c) This section does not authorize 582.512 Transactions related to the 2017 Comp., p. 399. funds transfers initiated or processed provision of agricultural commodities, with knowledge or reason to know that Subpart ELicenses, Authorizations, medicine, medical devices, replacement the intended beneficiary of such parts and components, or software updates and Statements of Licensing Policy transfers is a person blocked pursuant to for personal, non-commercial use. this part, other than for the purpose of  62. Add 583.511 to subpart E to read (a) All transactions prohibited by this effecting the payment of taxes, fees, or as follows: part that are related to the provision, import duties, or the purchase or receipt directly or indirectly, of agricultural 583.511 Authorizing Certain of permits, licenses, or public utility commodities, medicine, medical Transactions in Support of services. devices, replacement parts and Nongovernmental Organizations Activities. (d) Specific licenses may be issued on components for medical devices, or (a) Except as provided in paragraph a case-by-case basis to authorize software updates for medical devices to (c) of this section, all transactions nongovernmental or other entities to an individual whose property and prohibited by this part that are engage in other activities designed to interests in property are blocked ordinarily incident and necessary to the directly benefit the civilian population, pursuant to this part are authorized, activities described in paragraph (b) of including support for the removal of provided the items are in quantities this section by a nongovernmental landmines and economic development VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00018 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78501 projects directly benefiting the civilian PART 584MAGNITSKY ACT resources, and the remediation of population. SANCTIONS REGULATIONS pollution or other environmental damage; and Note 1 to 583.511. This section does not relieve any person authorized thereunder  64. The authority citation for part 584 (6) Activities to support disarmament, from complying with any other applicable continues to read as follows: demobilization, and reintegration (DDR) laws or regulations. Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); programs and peacebuilding, conflict 50 U.S.C. 16011651, 17011706; Pub. L. prevention, and conflict resolution  63. Add 583.512 to subpart E to read 101410, 104 Stat. 890, as amended (28 programs. as follows: U.S.C. 2461 note); Pub. L. 112208, Title IV, (c) This section does not authorize 126 Stat. 1502 (22 U.S.C. 5811 note). funds transfers initiated or processed 583.512 Transactions related to the provision of agricultural commodities, Subpart ELicenses, Authorizations, with knowledge or reason to know that medicine, medical devices, replacement and Statements of Licensing Policy the intended beneficiary of such parts and components, or software updates transfers is a person blocked pursuant to for personal, non-commercial use.  65. Add 584.512 to subpart E to read this part, other than for the purpose of (a) All transactions prohibited by this as follows: effecting the payment of taxes, fees, or import duties, or the purchase or receipt part that are related to the provision, 584.512 Authorizing Certain of permits, licenses, or public utility directly or indirectly, of agricultural Transactions in Support of services. commodities, medicine, medical Nongovernmental Organizations Activities. (d) Specific licenses may be issued on devices, replacement parts and (a) Except as provided in paragraph a case-by-case basis to authorize components for medical devices, or (c) of this section, all transactions nongovernmental or other entities to software updates for medical devices to prohibited by this part that are engage in other activities designed to an individual whose property and ordinarily incident and necessary to the directly benefit the civilian population, interests in property are blocked activities described in paragraph (b) of including support for the removal of pursuant to this part are authorized, this section by a nongovernmental landmines and economic development provided the items are in quantities organization are authorized, provided projects directly benefiting the civilian consistent with personal, non- that the nongovernmental organization population. commercial use. is not a person whose property or (b) For the purposes of this section, interests in property are blocked Note 1 to 584.512. This section does not agricultural commodities, medicine, and pursuant to this part. relieve any person authorized thereunder from complying with any other applicable medical devices are defined as follows: (b) The activities referenced in laws or regulations. (1) Agricultural commodities. For the paragraph (a) of this section are non- purposes of this section, agricultural commercial activities designed to  66. Add 584.513 to subpart E to read commodities are: directly benefit the civilian population as follows: that fall into one of the following (i) Products that fall within the term categories: 584.513 Transactions related to the agricultural commodity as defined in (1) Activities to support humanitarian provision of agricultural commodities, section 102 of the Agricultural Trade medicine, medical devices, replacement projects to meet basic human needs, Act of 1978 (7 U.S.C. 5602); and parts and components, or software updates including disaster, drought, or flood (ii) That are intended for ultimate use for personal, non-commercial use. relief; food, nutrition, or medicine as: (a) All transactions prohibited by this distribution; the provision of health (A) Food for humans (including raw, services; assistance for vulnerable or part that are related to the provision, processed, and packaged foods; live displaced populations, including directly or indirectly, of agricultural animals; vitamins and minerals; food individuals with disabilities and the commodities, medicine, medical additives or supplements; and bottled elderly; and environmental programs; devices, replacement parts and drinking water) or animals (including (2) Activities to support democracy components for medical devices, or animal feeds); building, including activities to support software updates for medical devices to an individual whose property and (B) Seeds for food crops; rule of law, citizen participation, interests in property are blocked (C) Fertilizers or organic fertilizers; or government accountability and pursuant to this part are authorized, transparency, human rights and (D) Reproductive materials (such as provided the items are in quantities fundamental freedoms, access to live animals, fertilized eggs, embryos, consistent with personal, non- information, and civil society and semen) for the production of food commercial use. development projects; animals. (3) Activities to support education, (b) For the purposes of this section, (2) Medicine. For the purposes of this including combating illiteracy, agricultural commodities, medicine, and section, medicine is an item that falls increasing access to education, medical devices are defined as follows: within the definition of the term drug international exchanges, and assisting (1) Agricultural commodities. For the in section 201 of the Federal Food, education reform projects; purposes of this section, agricultural Drug, and Cosmetic Act (21 U.S.C. 321). (4) Activities to support non- commodities are: (3) Medical devices. For the purposes commercial development projects (i) Products that fall within the term of this section, a medical device is an directly benefiting civilians, including agricultural commodity as defined in item that falls within the definition of those related to health, food security, section 102 of the Agricultural Trade device in section 201 of the Federal and water and sanitation; Act of 1978 (7 U.S.C. 5602); and Food, Drug, and Cosmetic Act (21 U.S.C. (5) Activities to support (ii) That are intended for ultimate use 321). environmental and natural resource as: protection, including the preservation (A) Food for humans (including raw, Note 1 to 583.512. This section does not relieve any person authorized thereunder and protection of threatened or processed, and packaged foods; live from complying with any other applicable endangered species, responsible and animals; vitamins and minerals; food laws or regulations. transparent management of natural additives or supplements; and bottled VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00019 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78502 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations drinking water) or animals (including (2) Activities to support democracy software updates for medical devices to animal feeds); building, including activities to support an individual whose property and (B) Seeds for food crops; rule of law, citizen participation, interests in property are blocked (C) Fertilizers or organic fertilizers; or government accountability and pursuant to this part are authorized, (D) Reproductive materials (such as transparency, human rights and provided the items are in quantities live animals, fertilized eggs, embryos, fundamental freedoms, access to consistent with personal, non- and semen) for the production of food information, and civil society commercial use. animals. development projects; (b) For the purposes of this section, (2) Medicine. For the purposes of this (3) Activities to support education, agricultural commodities, medicine, and section, medicine is an item that falls including combating illiteracy, medical devices are defined as follows: within the definition of the term drug increasing access to education, (1) Agricultural commodities. For the in section 201 of the Federal Food, international exchanges, and assisting purposes of this section, agricultural Drug, and Cosmetic Act (21 U.S.C. 321). education reform projects; commodities are: (3) Medical devices. For the purposes (4) Activities to support non- (i) Products that fall within the term of this section, a medical device is an commercial development projects agricultural commodity as defined in item that falls within the definition of directly benefiting civilians, including section 102 of the Agricultural Trade device in section 201 of the Federal those related to health, food security, Act of 1978 (7 U.S.C. 5602); and Food, Drug, and Cosmetic Act (21 U.S.C. and water and sanitation; (ii) That are intended for ultimate use (5) Activities to support as: 321). environmental and natural resource (A) Food for humans (including raw, Note 1 to 584.513. This section does not protection, including the preservation processed, and packaged foods; live relieve any person authorized thereunder and protection of threatened or animals; vitamins and minerals; food from complying with any other applicable endangered species, responsible and additives or supplements; and bottled laws or regulations. transparent management of natural drinking water) or animals (including resources, and the remediation of animal feeds); PART 585HONG KONGRELATED (B) Seeds for food crops; pollution or other environmental SANCTIONS REGULATIONS (C) Fertilizers or organic fertilizers; or damage; and (D) Reproductive materials (such as (6) Activities to support disarmament,  67. The authority citation for part 585 live animals, fertilized eggs, embryos, demobilization, and reintegration (DDR) continues to read as follows: and semen) for the production of food programs and peacebuilding, conflict Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); prevention, and conflict resolution animals. 50 U.S.C. 16011651, 17011706; Pub. L. (2) Medicine. For the purposes of this programs. 101410, 104 Stat. 890 (28 U.S.C. 2461 note); section, medicine is an item that falls (c) This section does not authorize E.O. 13936, 85 FR 43413, July 17, 2020. within the definition of the term drug funds transfers initiated or processed in section 201 of the Federal Food, Subpart ELicenses, Authorizations, with knowledge or reason to know that Drug, and Cosmetic Act (21 U.S.C. 321). and Statements of Licensing Policy the intended beneficiary of such (3) Medical devices. For the purposes transfers is a person blocked pursuant to of this section, a medical device is an  68. Add 585.511 to subpart E to read this part, other than for the purpose of item that falls within the definition of as follows: effecting the payment of taxes, fees, or device in section 201 of the Federal import duties, or the purchase or receipt Food, Drug, and Cosmetic Act (21 U.S.C. 585.511 Authorizing Certain of permits, licenses, or public utility Transactions in Support of 321). services. Nongovernmental Organizations Activities. (d) Specific licenses may be issued on Note 1 to 585.512. This section does not (a) Except as provided in paragraph a case-by-case basis to authorize relieve any person authorized thereunder (c) of this section, all transactions nongovernmental or other entities to from complying with any other applicable laws or regulations. prohibited by this part that are engage in other activities designed to ordinarily incident and necessary to the directly benefit the civilian population, activities described in paragraph (b) of including support for the removal of PART 588WESTERN BALKANS this section by a nongovernmental landmines and economic development STABILIZATION REGULATIONS organization are authorized, provided projects directly benefiting the civilian  70. The authority citation for part 588 that the nongovernmental organization population. continues to read as follows: is not a person whose property or interests in property are blocked Note 1 to 585.511. This section does not Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); pursuant to this part. relieve any person authorized thereunder 50 U.S.C. 16011651, 17011706; Pub. L. from complying with any other applicable 101410, 104 Stat. 890, as amended (28 (b) The activities referenced in laws or regulations. U.S.C. 2461 note); E.O. 13219, 66 FR 34777, paragraph (a) of this section are non- 3 CFR, 2001 Comp., p. 778; E.O. 13304, 68 commercial activities designed to  69. Add 585.512 to subpart E to read FR 32315, 3 CFR, 2004 Comp. p. 229; E.O. directly benefit the civilian population as follows: 14033, 86 FR 43905. that fall into one of the following 585.512 Transactions related to the categories: provision of agricultural commodities, Subpart ELicenses, Authorizations, (1) Activities to support humanitarian medicine, medical devices, replacement and Statements of Licensing Policy projects to meet basic human needs, parts and components, or software updates  71. Add 588.511 to subpart E to read including disaster, drought, or flood for personal, non-commercial use. as follows: relief; food, nutrition, or medicine (a) All transactions prohibited by this distribution; the provision of health part that are related to the provision, 588.511 Authorizing Certain services; assistance for vulnerable or directly or indirectly, of agricultural Transactions in Support of displaced populations, including commodities, medicine, medical Nongovernmental Organizations Activities. individuals with disabilities and the devices, replacement parts and (a) Except as provided in paragraph elderly; and environmental programs; components for medical devices, or (c) of this section, all transactions VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00020 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78503 prohibited by this part that are engage in other activities designed to from complying with any other applicable ordinarily incident and necessary to the directly benefit the civilian population, laws or regulations. activities described in paragraph (b) of including support for the removal of this section by a nongovernmental landmines and economic development PART 590TRANSNATIONAL organization are authorized, provided projects directly benefiting the civilian CRIMINAL ORGANIZATIONS that the nongovernmental organization population. SANCTIONS REGULATIONS is not a person whose property or Note 1 to 588.511. This section does not interests in property are blocked  73. The authority citation for part 590 relieve any person authorized thereunder pursuant to this part. from complying with any other applicable continues to read as follows: (b) The activities referenced in laws or regulations. Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); paragraph (a) of this section are non- 50 U.S.C. 16011651, 17011706; Pub. L. commercial activities designed to  72. Add 588.512 to subpart E to read 101410, 104 Stat. 890, as amended (28 directly benefit the civilian population as follows: U.S.C. 2461 note); E.O. 13581, 76 FR 44757, that fall into one of the following 3 CFR, 2011 Comp., p. 260; E.O. 13863, 84 588.512 Transactions related to the categories: provision of agricultural commodities, FR 10255, 3 CFR, 2019 Comp., p. 267. (1) Activities to support humanitarian medicine, medical devices, replacement Subpart ELicenses, Authorizations, projects to meet basic human needs, parts and components, or software updates and Statements of Licensing Policy including disaster, drought, or flood for personal, non-commercial use. relief; food, nutrition, or medicine (a) All transactions prohibited by this  74. Add 590.512 to subpart E to read distribution; the provision of health part that are related to the provision, as follows: services; assistance for vulnerable or directly or indirectly, of agricultural displaced populations, including commodities, medicine, medical 590.512 Authorizing Certain individuals with disabilities and the devices, replacement parts and Transactions in Support of elderly; and environmental programs; components for medical devices, or Nongovernmental Organizations Activities. (2) Activities to support democracy software updates for medical devices to (a) Except as provided in paragraph building, including activities to support an individual whose property and (c) of this section, all transactions rule of law, citizen participation, interests in property are blocked prohibited by this part that are government accountability and pursuant to this part are authorized, ordinarily incident and necessary to the transparency, human rights and provided the items are in quantities activities described in paragraph (b) of fundamental freedoms, access to consistent with personal, non- this section by a nongovernmental information, and civil society commercial use. organization are authorized, provided development projects; (b) For the purposes of this section, that the nongovernmental organization (3) Activities to support education, agricultural commodities, medicine, and is not a person whose property or including combating illiteracy, medical devices are defined as follows: interests in property are blocked increasing access to education, (1) Agricultural commodities. For the pursuant to this part. international exchanges, and assisting purposes of this section, agricultural (b) The activities referenced in education reform projects; commodities are: paragraph (a) of this section are non- (4) Activities to support non- (i) Products that fall within the term commercial activities designed to commercial development projects agricultural commodity as defined in directly benefit the civilian population directly benefiting civilians, including section 102 of the Agricultural Trade that fall into one of the following those related to health, food security, Act of 1978 (7 U.S.C. 5602); and categories: and water and sanitation; (ii) That are intended for ultimate use (1) Activities to support humanitarian (5) Activities to support as: projects to meet basic human needs, environmental and natural resource (A) Food for humans (including raw, including disaster, drought, or flood protection, including the preservation processed, and packaged foods; live relief; food, nutrition, or medicine and protection of threatened or animals; vitamins and minerals; food distribution; the provision of health endangered species, responsible and additives or supplements; and bottled services; assistance for vulnerable or transparent management of natural drinking water) or animals (including displaced populations, including resources, and the remediation of animal feeds); individuals with disabilities and the pollution or other environmental (B) Seeds for food crops; elderly; and environmental programs; damage; and (6) Activities to support disarmament, (C) Fertilizers or organic fertilizers; or (2) Activities to support democracy demobilization, and reintegration (DDR) (D) Reproductive materials (such as building, including activities to support programs and peacebuilding, conflict live animals, fertilized eggs, embryos, rule of law, citizen participation, prevention, and conflict resolution and semen) for the production of food government accountability and programs. animals. transparency, human rights and (c) This section does not authorize (2) Medicine. For the purposes of this fundamental freedoms, access to funds transfers initiated or processed section, medicine is an item that falls information, and civil society with knowledge or reason to know that within the definition of the term drug development projects; the intended beneficiary of such in section 201 of the Federal Food, (3) Activities to support education, transfers is a person blocked pursuant to Drug, and Cosmetic Act (21 U.S.C. 321). including combating illiteracy, this part, other than for the purpose of (3) Medical devices. For the purposes increasing access to education, effecting the payment of taxes, fees, or of this section, a medical device is an international exchanges, and assisting import duties, or the purchase or receipt item that falls within the definition of education reform projects; of permits, licenses, or public utility device in section 201 of the Federal (4) Activities to support non- services. Food, Drug, and Cosmetic Act (21 U.S.C. commercial development projects (d) Specific licenses may be issued on 321). directly benefiting civilians, including a case-by-case basis to authorize Note 1 to 588.512. This section does not those related to health, food security, nongovernmental or other entities to relieve any person authorized thereunder and water and sanitation; VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00021 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78504 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations (5) Activities to support (ii) That are intended for ultimate use (b) The activities referenced in environmental and natural resource as: paragraph (a) of this section are non- protection, including the preservation (A) Food for humans (including raw, commercial activities designed to and protection of threatened or processed, and packaged foods; live directly benefit the civilian population endangered species, responsible and animals; vitamins and minerals; food that fall into one of the following transparent management of natural additives or supplements; and bottled categories: resources, and the remediation of drinking water) or animals (including (1) Activities to support humanitarian pollution or other environmental animal feeds); projects to meet basic human needs, damage; and (B) Seeds for food crops; including disaster, drought, or flood (6) Activities to support disarmament, (C) Fertilizers or organic fertilizers; or relief; food, nutrition, or medicine (D) Reproductive materials (such as demobilization, and reintegration (DDR) distribution; the provision of health live animals, fertilized eggs, embryos, programs and peacebuilding, conflict services; assistance for vulnerable or and semen) for the production of food prevention, and conflict resolution displaced populations, including animals. programs. individuals with disabilities and the (2) Medicine. For the purposes of this (c) This section does not authorize elderly; and environmental programs; section, medicine is an item that falls funds transfers initiated or processed (2) Activities to support democracy within the definition of the term drug with knowledge or reason to know that building, including activities to support in section 201 of the Federal Food, the intended beneficiary of such rule of law, citizen participation, Drug, and Cosmetic Act (21 U.S.C. 321). transfers is a person blocked pursuant to government accountability and (3) Medical devices. For the purposes this part, other than for the purpose of transparency, human rights and of this section, a medical device is an effecting the payment of taxes, fees, or fundamental freedoms, access to item that falls within the definition of import duties, or the purchase or receipt information, and civil society device in section 201 of the Federal of permits, licenses, or public utility development projects; Food, Drug, and Cosmetic Act (21 U.S.C. services. (3) Activities to support education, 321). (d) Specific licenses may be issued on including combating illiteracy, a case-by-case basis to authorize Note 1 to 590.513. This section does not increasing access to education, nongovernmental or other entities to relieve any person authorized thereunder international exchanges, and assisting from complying with any other applicable engage in other activities designed to education reform projects; laws or regulations. directly benefit the civilian population, (4) Activities to support non- including support for the removal of commercial development projects PART 594GLOBAL TERRORISM landmines and economic development directly benefiting civilians, including SANCTIONS REGULATIONS projects directly benefiting the civilian those related to health, food security, population.  76. The authority citation for part 594 and water and sanitation; (5) Activities to support Note 1 to 590.512. This section does not continues to read as follows: environmental and natural resource relieve any person authorized thereunder from complying with any other applicable Authority: 3 U.S.C. 301; 22 U.S.C. 287c; protection, including the preservation 31 U.S.C. 321(b); 50 U.S.C. 16011651, 1701 laws or regulations. and protection of threatened or 1706; Pub. L. 101410, 104 Stat. 890, as endangered species, responsible and  75. Add 590.513 to subpart E to read amended (28 U.S.C. 2461 note); Pub. L. 114 transparent management of natural 102, 129 Stat. 2205, as amended (50 U.S.C. as follows: 1701 note); Pub. L. 11544, 131 Stat 886 resources, and the remediation of 590.513 Transactions related to the (codified in scattered sections of 22 U.S.C.); pollution or other environmental provision of agricultural commodities, Pub. L. 115348, 132 Stat. 5055 (50 U.S.C. damage; and medicine, medical devices, replacement 1701 note); E.O. 13224, 66 FR 49079, 3 CFR, (6) Activities to support disarmament, parts and components, or software updates 2001 Comp., p. 786; E.O. 13268, 67 FR 44751, demobilization, and reintegration (DDR) 3 CFR 2002 Comp., p. 240; E.O. 13284, 68 FR for personal, non-commercial use. programs and peacebuilding, conflict 4075, 3 CFR, 2003 Comp., p. 161; E.O. 13372, (a) All transactions prohibited by this 70 FR 8499, 3 CFR, 2006 Comp., p. 159; E.O. prevention, and conflict resolution part that are related to the provision, 13886, 84 FR 48041, 3 CFR, 2019 Comp., p. programs. directly or indirectly, of agricultural 356. (c) This section does not authorize commodities, medicine, medical funds transfers initiated or processed devices, replacement parts and Subpart ELicenses, Authorizations, with knowledge or reason to know that components for medical devices, or and Statements of Licensing Policy the intended beneficiary of such software updates for medical devices to transfers is a person blocked pursuant to  77. Add 594.520 to subpart E to read an individual whose property and this part, other than for the purpose of as follows: interests in property are blocked effecting the payment of taxes, fees, or pursuant to this part are authorized, 594.520 Authorizing Certain import duties, or the purchase or receipt provided the items are in quantities Transactions in Support of of permits, licenses, or public utility consistent with personal, non- Nongovernmental Organizations Activities. services. commercial use. (a) Except as provided in paragraph (d) Specific licenses may be issued on (b) For the purposes of this section, (c) of this section, all transactions a case-by-case basis to authorize agricultural commodities, medicine, and prohibited by this part that are nongovernmental or other entities to medical devices are defined as follows: ordinarily incident and necessary to the engage in other activities designed to (1) Agricultural commodities. For the activities described in paragraph (b) of directly benefit the civilian population, purposes of this section, agricultural this section by a nongovernmental including support for the removal of commodities are: organization are authorized, provided landmines and economic development (i) Products that fall within the term that the nongovernmental organization projects directly benefiting the civilian agricultural commodity as defined in is not a person whose property or population. section 102 of the Agricultural Trade interests in property are blocked Note 1 to 594.520. This section does not Act of 1978 (7 U.S.C. 5602); and pursuant to this part. relieve any person authorized thereunder VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00022 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78505 from complying with any other applicable Authority: 8 U.S.C. 1189; 18 U.S.C. 2339B; prevention, and conflict resolution laws or regulations. 31 U.S.C. 321(b); Pub. L. 101410, 104 Stat. programs. 890, as amended (28 U.S.C. 2461 note). (c) This section does not authorize  78. Add 590.521 to subpart E to read funds transfers initiated or processed as follows: Subpart ELicenses, Authorizations, with knowledge or reason to know that and Statements of Licensing Policy 594.521 Transactions related to the the intended beneficiary of such provision of agricultural commodities, transfers is a person blocked pursuant to  80. Add 597.516 to subpart E to read medicine, medical devices, replacement this part, other than for the purpose of as follows: parts and components, or software updates effecting the payment of taxes, fees, or for personal, non-commercial use. 597.516 Authorizing Certain import duties, or the purchase or receipt (a) All transactions prohibited by this Transactions in Support of of permits, licenses, or public utility part that are related to the provision, Nongovernmental Organizations Activities. services. directly or indirectly, of agricultural (a) Except as provided in paragraph (d) Specific licenses may be issued on commodities, medicine, medical (c) of this section, all transactions a case-by-case basis to authorize devices, replacement parts and prohibited by this part that are nongovernmental or other entities to components for medical devices, or ordinarily incident and necessary to the engage in other activities designed to software updates for medical devices to activities described in paragraph (b) of directly benefit the civilian population, an individual whose property and this section by a nongovernmental including support for the removal of interests in property are blocked organization are authorized, provided landmines and economic development pursuant to this part are authorized, that the nongovernmental organization projects directly benefiting the civilian provided the items are in quantities is not a person whose property or population. consistent with personal, non- interests in property are blocked commercial use. pursuant to this part. Note 1 to 597.516. This section does not relieve any person authorized thereunder (b) For the purposes of this section, (b) The activities referenced in from complying with any other applicable agricultural commodities, medicine, and paragraph (a) of this section are non- laws or regulations. medical devices are defined as follows: commercial activities designed to (1) Agricultural commodities. For the  81. Add 597.517 to subpart E to read directly benefit the civilian population purposes of this section, agricultural as follows: that fall into one of the following commodities are: (i) Products that fall within the term categories: 597.517 Transactions related to the (1) Activities to support humanitarian provision of agricultural commodities, agricultural commodity as defined in projects to meet basic human needs, medicine, medical devices, replacement section 102 of the Agricultural Trade including disaster, drought, or flood parts and components, or software updates Act of 1978 (7 U.S.C. 5602); and relief; food, nutrition, or medicine for personal, non-commercial use. (ii) That are intended for ultimate use distribution; the provision of health (a) All transactions prohibited by this as: services; assistance for vulnerable or part that are related to the provision, (A) Food for humans (including raw, displaced populations, including directly or indirectly, of agricultural processed, and packaged foods; live individuals with disabilities and the commodities, medicine, medical animals; vitamins and minerals; food elderly; and environmental programs; devices, replacement parts and additives or supplements; and bottled (2) Activities to support democracy components for medical devices, or drinking water) or animals (including building, including activities to support software updates for medical devices to animal feeds); rule of law, citizen participation, an individual whose property and (B) Seeds for food crops; (C) Fertilizers or organic fertilizers; or government accountability and interests in property are blocked (D) Reproductive materials (such as transparency, human rights and pursuant to this part are authorized, live animals, fertilized eggs, embryos, fundamental freedoms, access to provided the items are in quantities and semen) for the production of food information, and civil society consistent with personal, non- animals. development projects; commercial use. (2) Medicine. For the purposes of this (3) Activities to support education, (b) For the purposes of this section, section, medicine is an item that falls including combating illiteracy, agricultural commodities, medicine, and within the definition of the term drug increasing access to education, medical devices are defined as follows: in section 201 of the Federal Food, international exchanges, and assisting (1) Agricultural commodities. For the Drug, and Cosmetic Act (21 U.S.C. 321). education reform projects; purposes of this section, agricultural (3) Medical devices. For the purposes (4) Activities to support non- commodities are: of this section, a medical device is an commercial development projects (i) Products that fall within the term item that falls within the definition of directly benefiting civilians, including agricultural commodity as defined in device in section 201 of the Federal those related to health, food security, section 102 of the Agricultural Trade Food, Drug, and Cosmetic Act (21 U.S.C. and water and sanitation; Act of 1978 (7 U.S.C. 5602); and 321). (5) Activities to support (ii) That are intended for ultimate use environmental and natural resource as: Note 1 to 594.521. This section does not protection, including the preservation (A) Food for humans (including raw, relieve any person authorized thereunder from complying with any other applicable and protection of threatened or processed, and packaged foods; live laws or regulations. endangered species, responsible and animals; vitamins and minerals; food transparent management of natural additives or supplements; and bottled PART 597FOREIGN TERRORIST resources, and the remediation of drinking water) or animals (including ORGANIZATIONS SANCTIONS pollution or other environmental animal feeds); REGULATIONS damage; and (B) Seeds for food crops; (6) Activities to support disarmament, (C) Fertilizers or organic fertilizers; or  79. The authority citation for part 597 demobilization, and reintegration (DDR) (D) Reproductive materials (such as continues to read as follows: programs and peacebuilding, conflict live animals, fertilized eggs, embryos, VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00023 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol 78506 Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations and semen) for the production of food (3) Activities to support education, (b) For the purposes of this section, animals. including combating illiteracy, agricultural commodities, medicine, and (2) Medicine. For the purposes of this increasing access to education, medical devices are defined as follows: section, medicine is an item that falls international exchanges, and assisting (1) Agricultural commodities. For the within the definition of the term drug education reform projects; purposes of this section, agricultural in section 201 of the Federal Food, (4) Activities to support non- commodities are: Drug, and Cosmetic Act (21 U.S.C. 321). commercial development projects (i) Products that fall within the term (3) Medical devices. For the purposes directly benefiting civilians, including agricultural commodity as defined in of this section, a medical device is an those related to health, food security, section 102 of the Agricultural Trade item that falls within the definition of and water and sanitation; Act of 1978 (7 U.S.C. 5602); and device in section 201 of the Federal (ii) That are intended for ultimate use (5) Activities to support Food, Drug, and Cosmetic Act (21 U.S.C. as: environmental and natural resource 321). (A) Food for humans (including raw, protection, including the preservation Note 1 to 597.517. This section does not and protection of threatened or processed, and packaged foods; live relieve any person authorized thereunder endangered species, responsible and animals; vitamins and minerals; food from complying with any other applicable transparent management of natural additives or supplements; and bottled laws or regulations. drinking water) or animals (including resources, and the remediation of animal feeds); pollution or other environmental PART 598FOREIGN NARCOTICS damage; and (B) Seeds for food crops; KINGPIN SANCTIONS REGULATIONS (C) Fertilizers or organic fertilizers; or (6) Activities to support disarmament, (D) Reproductive materials (such as demobilization, and reintegration (DDR)  82. The authority citation for part 598 live animals, fertilized eggs, embryos, programs and peacebuilding, conflict continues to read as follows: and semen) for the production of food prevention, and conflict resolution Authority: 3 U.S.C. 301; 21 U.S.C. 1901 programs. animals. 1908; 31 U.S.C. 321(b); Pub. L. 101410, 104 (2) Medicine. For the purposes of this (c) This section does not authorize Stat. 890, as amended (28 U.S.C. 2461 note). section, medicine is an item that falls funds transfers initiated or processed within the definition of the term drug Subpart ELicenses, Authorizations, with knowledge or reason to know that in section 201 of the Federal Food, and Statements of Licensing Policy the intended beneficiary of such Drug, and Cosmetic Act (21 U.S.C. 321). transfers is a specially designated (3) Medical devices. For the purposes  83. Add 598.515 to subpart E to read narcotics trafficker, other than for the of this section, a medical device is an as follows: purpose of effecting the payment of item that falls within the definition of taxes, fees, or import duties, or the 598.515 Authorizing Certain device in section 201 of the Federal purchase or receipt of permits, licenses, Transactions in Support of Food, Drug, and Cosmetic Act (21 U.S.C. or public utility services. Nongovernmental Organizations Activities. 321). (d) Specific licenses may be issued on (a) Except as provided in paragraph Note 1 to 598.516. This section does not a case-by-case basis to authorize (c) of this section, all transactions relieve any person authorized thereunder nongovernmental or other entities to prohibited by this part that are from complying with any other applicable engage in other activities designed to ordinarily incident and necessary to the laws or regulations. directly benefit the civilian population, activities described in paragraph (b) of including support for the removal of this section by a nongovernmental PART 599ILLICIT DRUG TRADE landmines and economic development organization are authorized, provided SANCTIONS REGULATIONS projects directly benefiting the civilian that the nongovernmental organization is not a specially designated narcotics population.  85. The authority citation for part 599 trafficker. Note 1 to 598.515. This section does not continues to read as follows: (b) The activities referenced in relieve any person authorized thereunder Authority: 3 U.S.C. 301; 21 U.S.C. 2301 et paragraph (a) of this section are non- from complying with any other applicable seq.; 31 U.S.C. 321(b); 50 U.S.C. 16011651, commercial activities designed to laws or regulations. 17011706; Pub. L. 101410, 104 Stat. 890, directly benefit the civilian population as amended (28 U.S.C. 2461 note); E.O.  84. Add 598.516 to subpart E to read that fall into one of the following 14059, 86 FR 71549, December 15, 2021. as follows: categories: Subpart ELicenses, Authorizations, (1) Activities to support humanitarian 598.516 Transactions related to the and Statements of Licensing Policy projects to meet basic human needs, provision of agricultural commodities, including disaster, drought, or flood medicine, medical devices, replacement  86. Add 599.512 to subpart E to read relief; food, nutrition, or medicine parts and components, or software updates for personal, non-commercial use. as follows: distribution; the provision of health services; assistance for vulnerable or (a) All transactions prohibited by this 599.512 Authorizing Certain displaced populations, including part that are related to the provision, Transactions in Support of individuals with disabilities and the directly or indirectly, of agricultural Nongovernmental Organizations Activities. elderly; and environmental programs; commodities, medicine, medical (a) Except as provided in paragraph (2) Activities to support democracy devices, replacement parts and (c) of this section, all transactions building, including activities to support components for medical devices, or prohibited by this part that are rule of law, citizen participation, software updates for medical devices to ordinarily incident and necessary to the government accountability and an individual who is a specially activities described in paragraph (b) of transparency, human rights and designated narcotics trafficker are this section by a nongovernmental fundamental freedoms, access to authorized, provided the items are in organization are authorized, provided information, and civil society quantities consistent with personal, that the nongovernmental organization development projects; non-commercial use. is not a person whose property or VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00024 Fmt 4701 Sfmt 4700 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol Federal RegisterVol. 87, No. 244Wednesday, December 21, 2022Rules and Regulations 78507 interests in property are blocked prevention, and conflict resolution (b) For the purposes of this section, pursuant to this part. programs. agricultural commodities, medicine, and (b) The activities referenced in (c) This section does not authorize medical devices are defined as follows: paragraph (a) of this section are non- funds transfers initiated or processed (1) Agricultural commodities. For the commercial activities designed to with knowledge or reason to know that purposes of this section, agricultural directly benefit the civilian population the intended beneficiary of such commodities are: that fall into one of the following transfers is a person blocked pursuant to (i) Products that fall within the term categories: this part, other than for the purpose of agricultural commodity as defined in (1) Activities to support humanitarian effecting the payment of taxes, fees, or section 102 of the Agricultural Trade projects to meet basic human needs, import duties, or the purchase or receipt Act of 1978 (7 U.S.C. 5602); and including disaster, drought, or flood of permits, licenses, or public utility relief; food, nutrition, or medicine services. (ii) That are intended for ultimate use distribution; the provision of health (d) Specific licenses may be issued on as: services; assistance for vulnerable or a case-by-case basis to authorize (A) Food for humans (including raw, displaced populations, including nongovernmental or other entities to processed, and packaged foods; live individuals with disabilities and the engage in other activities designed to animals; vitamins and minerals; food elderly; and environmental programs; directly benefit the civilian population, additives or supplements; and bottled (2) Activities to support democracy including support for the removal of drinking water) or animals (including building, including activities to support landmines and economic development animal feeds); rule of law, citizen participation, projects directly benefiting the civilian (B) Seeds for food crops; government accountability and population. (C) Fertilizers or organic fertilizers; or transparency, human rights and fundamental freedoms, access to Note 1 to 599.512. This section does not (D) Reproductive materials (such as information, and civil society relieve any person authorized thereunder live animals, fertilized eggs, embryos, development projects; from complying with any other applicable and semen) for the production of food laws or regulations. (3) Activities to support education, animals. including combating illiteracy,  87. Add 599.513 to subpart E to read (2) Medicine. For the purposes of this increasing access to education, as follows: section, medicine is an item that falls international exchanges, and assisting within the definition of the term drug education reform projects; 599.513 Transactions related to the in section 201 of the Federal Food, (4) Activities to support non- provision of agricultural commodities, Drug, and Cosmetic Act (21 U.S.C. 321). commercial development projects medicine, medical devices, replacement parts and components, or software updates (3) Medical devices. For the purposes directly benefiting civilians, including for personal, non-commercial use. of this section, a medical device is an those related to health, food security, and water and sanitation; (a) All transactions prohibited by this item that falls within the definition of (5) Activities to support part that are related to the provision, device in section 201 of the Federal environmental and natural resource directly or indirectly, of agricultural Food, Drug, and Cosmetic Act (21 U.S.C. protection, including the preservation commodities, medicine, medical 321). and protection of threatened or devices, replacement parts and Note 1 to 599.513. This section does not endangered species, responsible and components for medical devices, or relieve any person authorized thereunder transparent management of natural software updates for medical devices to from complying with any other applicable resources, and the remediation of an individual whose property and laws or regulations. pollution or other environmental interests in property are blocked damage; and pursuant to this part are authorized, Andrea M. Gacki, (6) Activities to support disarmament, provided the items are in quantities Director, Office of Foreign Assets Control. demobilization, and reintegration (DDR) consistent with personal, non- FR Doc. 202227639 Filed 122022; 8:45 am programs and peacebuilding, conflict commercial use. BILLING CODE 4810ALP VerDate Sep112014 22:11 Dec 20, 2022 Jkt 259001 PO 00000 Frm 00025 Fmt 4701 Sfmt 9990 E:FRFM21DER3.SGM 21DER3 3SELUR htiw DORP32NQX11KSD no rettol","Federal RegisterVol. 88, No. 103Tuesday, May 30, 2023Rules and Regulations 34443 47531, 47534, Pub. L. 114190, 130 Stat. 615 121.135 Manual contents. PART 135OPERATING (49 U.S.C. 44703 note); articles 12 and 29 of REQUIREMENTS: COMMUTER AND (a) Each manual accessed in paper the Convention on International Civil ON DEMAND OPERATIONS AND Aviation (61 Stat. 1180), (126 Stat. 11). format must display the date of last RULES GOVERNING PERSONS ON revision on each page. Each manual  2. Amend 91.1023 by: BOARD SUCH AIRCRAFT accessed in electronic format must  a. Revising paragraphs (f) and (g);  b. Removing paragraph (h); and display the date of last revision in a  10. The authority citation for part 135  c. Redesignating paragraph (i) as manner in which a person can continues to read as follows: immediately ascertain it. Each manual paragraph (h). Authority: 49 U.S.C. 106(f), 106(g), 40113, required by 121.133 must: The revisions read as follows: 41706, 4470144702, 44705, 44709, 44711      44713, 4471544717, 44722, 44730, 45101 91.1023 Program operating manual 45105; Pub. L. 11295, 126 Stat. 58 (49 U.S.C. requirements.  6. Revise 121.139 to read as follows: 44730).       11. Amend 135.21 by: 121.139 Manual accessibility: (f) The program manager must ensure Supplemental operations.  a. Revising paragraphs (f) and (g); and the appropriate parts of the manual are  b. Removing paragraph (h). accessible to flight, ground, and Each certificate holder conducting The revisions read as follows: supplemental operations must ensure maintenance personnel at all times 135.21 Manual requirements. when such personnel are performing the appropriate parts of the manual are their assigned duties. accessible to flight, ground, and      (g) The information and instructions maintenance personnel at all times (f) The certificate holder must ensure the appropriate parts of the manual are contained in the manual must be when such personnel are performing accessible to flight, ground, and displayed clearly and be retrievable in their assigned duties. The information maintenance personnel at all times the English language. and instructions contained in the when such personnel are performing manual must be displayed clearly and      their assigned duties. be retrievable in the English language.  3. Amend 91.1025 by revising the (g) The information and instructions introductory text to read as follows: PART 125CERTIFICATION AND contained in the manual must be displayed clearly and be retrievable in OPERATIONS: AIRPLANES HAVING A 91.1025 Program operating manual the English language. contents. SEATING CAPACITY OF 20 OR MORE  12. Amend 135.23 by revising the PASSENGERS OR A MAXIMUM Each program operating manual introductory text to read as follows: PAYLOAD CAPACITY OF 6,000 accessed in paper format must display the date of last revision on each page. POUNDS OR MORE; AND RULES 135.23 Manual contents. Each program operating manual GOVERNING PERSONS ON BOARD Each manual accessed in paper format accessed in electronic format must SUCH AIRCRAFT must display the date of last revision on display the date of last revision in a each page. Each manual accessed in manner in which a person can  7. The authority citation for part 125 electronic format must display the date immediately ascertain it. Unless continues to read as follows: of last revision in a manner in which a otherwise authorized by the person can immediately ascertain it. Authority: 49 U.S.C. 106(f), 106(g), 40113, Administrator, the manual must include The manual must include: 4470144702, 44705, 4471044711, 44713, the following: 4471644717, 44722.            8. Amend 125.71 by revising Issued under authority provided by 49 U.S.C. 106(f), 106(g), and 44701(a)(5), in PART 121OPERATING paragraph (f) to read as follows: Washington, DC on or about May 22, 2023. REQUIREMENTS: DOMESTIC, FLAG, 125.71 Preparation. Billy Nolen, AND SUPPLEMENTAL OPERATIONS      Acting Administrator.  4. The authority citation for part 121 FR Doc. 202311246 Filed 52623; 8:45 am (f) The information and instructions continues to read as follows: contained in the manual must be BILLING CODE 491013P Authority: 49 U.S.C. 106(f), 106(g), 40103, displayed clearly and be retrievable in 40113, 40119, 41706, 42301 preceding note the English language. added by Pub. L. 11295, sec. 412, 126 Stat. DEPARTMENT OF THE TREASURY      89, 44101, 4470144702, 44705, 44709 44711, 44713, 4471644717, 44722, 44729,  9. Amend 125.73 by revising the Office of Foreign Assets Control 44732; 46105; Pub. L. 111216, 124 Stat. introductory text to read as follows: 2348 (49 U.S.C. 44701 note); Pub. L. 11295, 31 CFR Parts 544 and 578 126 Stat. 62 (49 U.S.C. 44732 note); Pub. L. 125.73 Contents. 115254, 132 Stat. 3186 (49 U.S.C. 44701 Publication of Cyber-Related note). Each manual accessed in paper format Sanctions Regulations Web General  5. Amend 121.135 by: must display the date of last revision on License 1 and Subsequent Iterations  a. Revising paragraph (a) introductory each page. Each manual accessed in AGENCY: Office of Foreign Assets text; electronic format must display the date Control, Treasury.  b. Adding the word and at the end of last revision in a manner in which a of paragraph (a)(2); person can immediately ascertain it. ACTION: Publication of web general licenses.  c. Removing paragraph (a)(3); and The manual must include:  d. Redesignating paragraph (a)(4) as      SUMMARY: The Department of the paragraph (a)(3). Treasurys Office of Foreign Assets The revision reads as follows: Control (OFAC) is publishing four VerDate Sep112014 16:30 May 26, 2023 Jkt 259001 PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 E:FRFM30MYR1.SGM 30MYR1 1SELUR htiw DORP32NR021KSD no rellehmurdd 34444 Federal RegisterVol. 88, No. 103Tuesday, May 30, 2023Rules and Regulations general licenses (GLs) issued pursuant issued. The text of these GLs is provided CFR chapter V, or any transactions or to the Cyber-Related, Non-Proliferation, below. dealings otherwise prohibited by any and Hostages and Wrongfully Detained E.O. other than E.O. 13694 as amended OFFICE OF FOREIGN ASSETS U.S. Nationals sanctions programs: GLs by E.O. 13757, or any other part of 31 CONTROL 1, 1A, 1B, and 1C, each of which was CFR chapter V. previously made available on OFACs Executive Order 13694 of April 1, 2015 Andrea Gacki website. Acting Director Blocking the Property of Certain Office of Foreign Assets Control DATES: GL 1 was issued on February 2, Persons Engaging in Significant Dated: February 2, 2017 2017. See SUPPLEMENTARYINFORMATION Malicious Cyber-Enabled Activities for additional relevant dates. OFFICE OF FOREIGN ASSETS GENERAL LICENSE NO. 1 FORFURTHERINFORMATIONCONTACT: CONTROL OFAC: Assistant Director for Licensing, Authorizing Certain Transactions With Executive Order 13694 of April 1, 2015 2026222480; Assistant Director for the Federal Security Service Regulatory Affairs, 2026224855; or (a) Except as provided in paragraph Blocking the Property of Certain Assistant Director for Sanctions (b), all transactions and activities Persons Engaging in Significant Compliance  Evaluation, 202622 otherwise prohibited pursuant to Malicious Cyber-Enabled Activities 2490. Executive Order (E.O.) 13694 of April 1, Countering Americas Adversaries SUPPLEMENTARYINFORMATION: 2015 (Blocking the Property of Certain Through Sanctions Act Persons Engaging in Significant Public Law 11544, Aug. 2, 2017, 131 Electronic Availability Malicious Cyber-Enabled Activities), as Stat. 886 (22 U.S.C. 9401 et seq.) This document and additional amended by E.O. 13757 of December 28, information concerning OFAC are 2016 (Taking Additional Steps to GENERAL LICENSE NO. 1A available on OFACs website: Address the National Emergency With Authorizing Certain Transactions With www.treas.govofac. Respect to Significant Malicious Cyber- the Federal Security Service Enabled Activities), are authorized that Background (a) Except as provided in paragraph are necessary and ordinarily incident to: (b), all transactions and activities On February 2, 2017, OFAC issued GL (1) Requesting, receiving, utilizing, otherwise prohibited pursuant to 1 to authorize certain transactions paying for, or dealing in licenses, Executive Order (E.O.) 13694 of April 1, otherwise prohibited by E.O. 13694 of permits, certifications, or notifications 2015 (Blocking the Property of Certain April 1, 2015, (Blocking the Property of issued or registered by the Federal Persons Engaging in Significant Certain Persons Engaging in Significant Security Service (a.k.a. Federalnaya Malicious Cyber-Enabled Activities), as Malicious Cyber-Enabled Activities, 80 Sluzhba Bezopasnosti) (a.k.a. FSB) for amended by E.O. 13757 of December 28, FR 18077) as amended by E.O. 13757 of the importation, distribution, or use of 2016 (Taking Additional Steps to December 28, 2016 (Taking Additional information technology products in the Address the National Emergency With Steps to Address the National Russian Federation, provided that (i) the Respect to Significant Malicious Cyber- Emergency With Respect to Significant exportation, reexportation, or provision Enabled Activities), or Section 224 of Malicious Cyber-Enabled Activities, 82 of any goods or technology that are the Countering Americas Adversaries FR 1). Subsequently, OFAC issued three subject to the Export Administration Through Sanctions Act, Public Law further iterations of GL 1: On March 15, Regulations, 15 CFR parts 730 through 11544, Aug. 2, 2017, 131 Stat. 886 (22 2018, OFAC issued GL 1A, which 774, is licensed or otherwise authorized U.S.C. 9401 et seq.) (CAATSA), are superseded GL 1, to authorize certain by the Department of Commerce and (ii) authorized that are necessary and transactions otherwise prohibited by the payment of any fees to the Federal ordinarily incident to: E.O. 13694 and by Section 224 of the Security Service for such licenses, (1) Requesting, receiving, utilizing, Countering Americas Adversaries permits, certifications, or notifications paying for, or dealing in licenses, Through Sanctions Act (CAATSA, 22 does not exceed 5,000 in any calendar permits, certifications, or notifications U.S.C. 9524); on February 17, 2021, year; issued or registered by the Federal OFAC issued GL 1B, which superseded Note to paragraph (a)(l): Except for the Security Service (a.k.a. Federalnaya GL 1A, to authorize certain transactions limited purposes described in paragraph Sluzhba Bezopasnosti) (a.k.a. FSB) for otherwise prohibited by E.O. 13694, (a)(l), this paragraph does not authorize the the importation, distribution, or use of Section 224 of CAATSA, and the exportation, reexportation, or provision of information technology products in the Weapons of Mass Destruction goods or technology to or on behalf of the Russian Federation, provided that (i) the Proliferators Sanctions Regulations, 31 Federal Security Service. exportation, reexportation, or provision CFR part 544 (the WMDPSR); and on (2) Complying with law enforcement of any goods or technology that are April 27, 2023, OFAC issued GL 1C, or administrative actions or subject to the Export Administration which superseded GL 1B, to authorize investigations involving the Federal Regulations, 15 CFR parts 730 through certain transactions otherwise Security Service; and 774, is licensed or otherwise authorized prohibited by the Cyber-Related (3) Complying with rules and by the Department of Commerce and (ii) Sanctions Regulations, 31 CFR part 578 regulations administered by the Federal the payment of any fees to the Federal (the CRSR), the WMDPSR, and E.O. Security Service. Security Service for such licenses, 14078 of July 19, 2022 (Bolstering (b) This general license does not permits, certifications, or notifications Efforts to Bring Hostages and authorize: does not exceed 5,000 in any calendar Wrongfully Detained United States (1) The exportation, reexportation, or year; Nationals Home, 87 FR 43389). OFAC provision of any goods, technology, or Note to paragraph (a)(1): Except for the incorporated E.O. 13694, E.O. 13757, services to the Crimea region of Ukraine; limited purposes described in paragraph and portions of CAATSA into the CRSR or (a)(l), this paragraph does not authorize the on September 6, 2022. Each GL was (2) The transfer of any property or exportation, reexportation, or provision of made available on OFACs website debiting of any account blocked goods or technology to or on behalf of the (www.treas.govofac) when it was pursuant to any E.O. or statute, or 31 Federal Security Service. VerDate Sep112014 16:30 May 26, 2023 Jkt 259001 PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 E:FRFM30MYR1.SGM 30MYR1 1SELUR htiw DORP32NR021KSD no rellehmurdd Federal RegisterVol. 88, No. 103Tuesday, May 30, 2023Rules and Regulations 34445 (2) Complying with law enforcement Sluzhba Bezopasnosti) (a.k.a. FSB) are OFFICE OF FOREIGN ASSETS or administrative actions or authorized, provided that such CONTROL investigations involving the Federal transactions and activities are necessary Cyber-Related Sanctions Regulations Security Service; and and ordinarily incident to: (3) Complying with rules and 31 CFR Part 578 (1) Requesting, receiving, utilizing, regulations administered by the Federal paying for, or dealing in licenses, Weapons of Mass Destruction Security Service. permits, certifications, or notifications Proliferators Sanctions Regulations (b) This general license does not issued or registered by the Federal authorize: 31 CFR Part 544 Security Service for the importation, (1) The exportation, reexportation, or distribution, or use of information Executive Order 14078 of July 19, 2022 provision of any goods, technology, or technology products in the Russian services to the Crimea region of Ukraine; Bolstering Efforts To Bring Hostages Federation, provided that (i) the or and Wrongfully Detained United States exportation, reexportation, or provision (2) The transfer of any property or Nationals Home of any goods or technology that are debiting of any account blocked subject to the Export Administration GENERAL LICENSE NO. 1C pursuant to any E.O. or statute, or 31 CFR chapter V, or any transactions or Regulations, 15 CFR parts 730 through Authorizing Certain Transactions With dealings otherwise prohibited by any 774, is licensed or otherwise authorized the Federal Security Service by the Department of Commerce; and E.O. other than E.O. 13694 as amended (a) Except as provided in paragraph (ii) the payment of any fees to the by E.O. 13757, any section of CAATSA (b) of this general license, all Federal Security Service for such other than Section 224, or any other part transactions prohibited by the Cyber- licenses, permits, certifications, or of 31 CFR chapter V. Related Sanctions Regulations, 31 CFR (c) Effective March 15, 2018, General notifications does not exceed 5,000 in part 578 (CRSR), the Weapons of Mass License No. 1, dated February 2, 2017, any calendar year; Destruction Proliferators Sanctions is replaced and superseded in its Note to paragraph (a)(1): Except for the Regulations, 31 CFR part 544 entirety by this General License No. 1A. limited purposes described in paragraph (WMDPSR), or Executive Order (E.O.) John E. Smith (a)(1), this paragraph does not authorize the 14078, involving the Federal Security Director exportation, reexportation, or provision of Service (a.k.a. Federalnaya Sluzhba Office of Foreign Assets Control goods or technology to or on behalf of the Bezopasnosti) (a.k.a. FSB) are Dated: March 15, 2018 Federal Security Service. authorized, provided that such transactions are ordinarily incident and OFFICE OF FOREIGN ASSETS (2) Complying with law enforcement necessary to: CONTROL or administrative actions or (1) Requesting, receiving, utilizing, Executive Order 13694 of April 1, 2015 investigations involving the Federal paying for, or dealing in licenses, Security Service; and Blocking the Property of Certain permits, certifications, or notifications Persons Engaging in Significant (3) Complying with rules and issued or registered by the Federal Malicious Cyber-Enabled Activities, as regulations administered by the Federal Security Service for the importation, Amended Security Service. distribution, or use of information (b) This general license does not technology products in the Russian Cyber-Related Sanctions Regulations authorize: Federation, provided that (i) the 31 CFR Part 578 exportation, reexportation, or provision (1) The exportation, reexportation, or of any goods or technology that are Weapons of Mass Destruction provision of any goods, technology, or subject to the Export Administration Proliferators Sanctions Regulations services to the Crimea region of Ukraine; Regulations, 15 CFR parts 730 through 31 CFR Part 544 (2) The transfer of any property or 774, is licensed or otherwise authorized debiting of any account blocked by the Department of Commerce; and Section 224 of the Countering pursuant to any E.O., statute, or 31 CFR (ii) the payment of any fees to the Americas Adversaries Through chapter V; or Federal Security Service for such Sanctions Act (3) Any transactions or activities licenses, permits, certifications, or 22 U.S.C. 9524 otherwise prohibited by the CRSR, the notifications does not exceed 5,000 in any calendar year; GENERAL LICENSE NO. 1B WMDPSR, or any other part of 31 CFR chapter V; any E.O. other than E.O. Note to paragraph (a)(1). Except for the Authorizing Certain Transactions With 13694, as amended by E.O. 13757; any limited purposes described in paragraph the Federal Security Service statute other than Section 224 of (a)(1), this paragraph does not authorize the (a) Except as provided in paragraph CAATSA; or any transactions or exportation, reexportation, or provision of (b) of this general license, all activities with any blocked person other goods or technology to or on behalf of the Federal Security Service. transactions and activities prohibited by than the blocked person described in Executive Order (E.O.) 13694, as paragraph (a) of this general license. (2) Complying with law enforcement amended by E.O. 13757 of December 28, or administrative actions or (c) Effective March 2, 2021, General 2016, the Cyber-Related Sanctions investigations involving the Federal License No. 1A, dated March 15, 2018, Regulations, 31 CFR part 578 (CRSR), Security Service; or is replaced and superseded in its the Weapons of Mass Destruction (3) Complying with rules and entirety by this General License No. 1B. Proliferators Sanctions Regulations, 31 regulations administered by the Federal CFR part 544 (WMDPSR), or Section 224 Bradley T. Smith Security Service. of the Countering Americas Adversaries (b) This general license does not Acting Director Through Sanctions Act (CAATSA) (22 authorize: Office of Foreign Assets Control U.S.C. 9524) involving the Federal (1) The transfer of any property or Security Service (a.k.a. Federalnaya Dated: March 2, 2021 debiting of any account blocked VerDate Sep112014 16:30 May 26, 2023 Jkt 259001 PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 E:FRFM30MYR1.SGM 30MYR1 1SELUR htiw DORP32NR021KSD no rellehmurdd 34446 Federal RegisterVol. 88, No. 103Tuesday, May 30, 2023Rules and Regulations pursuant to any E.O., statute, or 31 CFR of vessels or persons into this zone is Christi (COTP) has determined that chapter V; or prohibited unless specifically potential hazards associated with the (2) Any transactions otherwise authorized by the Captain of the Port fireworks display from 9:30 p.m. prohibited by the CRSR, the WMDPSR, Sector Corpus Christi or a designated through 11:59 p.m. on May 28, 2023, or E.O. 14078, including transactions representative. will be a safety concern for anyone with any blocked person other than the within the waters of the Laguna Madre DATES: This rule is effective from 9:30 blocked person described in paragraph area with a 700 yard radius from the p.m. through 11:59 p.m. on May 28, (a) of this general license, unless following point; 26602.1 N, separately authorized. 2023. 971017.7 W. The purpose of this rule (c) Effective April 27, 2023, General FORFURTHERINFORMATIONCONTACT: If is to ensure safety of vessels and License No. 1B, dated February 17, you have questions on this rule, call or persons on these navigable waters in the 2021, is replaced and superseded in its email Lieutenant Commander Anthony safety zone while the display of the entirety by this General License No. 1C. Garofalo, Sector Corpus Christi fireworks takes place in the Laguna Waterways Management Division, U.S. Madre. Note 1 to General License No. 1C. See Coast Guard; telephone 3619395130, Russia-related General License No. 42 for an IV. Discussion of the Rule email CCWaterwaysuscg.mil. authorization for certain transactions with the Federal Security Service prohibited by SUPPLEMENTARYINFORMATION: This rule establishes a temporary E.O. 14024. safety zone from 9:30 p.m. through I. Table of Abbreviations 11:59 p.m. on May 28, 2023. The safety Note 2 to General License No. 1C. The CFR Code of Federal Regulations zone will encompass certain navigable exportation, reexportation, sale, or supply, DHS Department of Homeland Security waters of the Laguna Madre and is directly or indirectly, from the United States, FR Federal Register defined by a 700-yard radius around the or by a United States person, wherever NPRM Notice of proposed rulemaking launching platform. The regulated area located, of any goods, services, or technology  Section encompasses a 700-yard radius from the to the so-called Donetsk Peoples Republic U.S.C. United States Code following point; 26602.1 N, or Luhansk Peoples Republic (DNRLNR) regions of Ukraine, or such other regions of II. Background Information and 971017.7 W. The fireworks display Ukraine as may be determined by the Regulatory History will take place in waters of the Laguna Secretary of the Treasury, in consultation Madre. No vessel or person is permitted The Coast Guard is issuing this with the Secretary of State, pursuant to E.O. to enter the temporary safety zone 14065, or to the Crimea region of Ukraine temporary rule without prior notice and during the effective period without remains prohibited pursuant to authorities opportunity to comment pursuant to obtaining permission from the COTP or implemented by the Ukraine-Russia-Related authority under section 4(a) of the a designated representative, who may be Sanctions Regulations, 31 CFR part 589, Administrative Procedure Act (APA) (5 contacted on Channel 16 VHFFM among others. U.S.C. 553(b)). This provision (156.8 MHz) or by telephone at 361 Andrea M. Gacki authorizes an agency to issue a rule 9390450. The Coast Guard will issue Director without prior notice and opportunity to Broadcast Notices to Mariners, Local Office of Foreign Assets Control comment when the agency for good Notices to Mariners, andor Safety cause finds that those procedures are Dated: April 27, 2023. Marine Information Broadcasts, as impracticable, unnecessary, or contrary Andrea M. Gacki, appropriate. to the public interest. Under 5 U.S.C. Director, Office of Foreign Assets Control. 553(b)(B), the Coast Guard finds that V. Regulatory Analyses FR Doc. 202311488 Filed 52623; 8:45 am good cause exists for not publishing a We developed this rule after BILLING CODE 4810ALP notice of proposed rulemaking (NPRM) considering numerous statutes and with respect to this rule because it is Executive orders related to rulemaking. impracticable. We must establish this Below we summarize our analyses DEPARTMENT OF HOMELAND safety zone immediately to protect based on a number of these statutes and SECURITY personnel, vessels, and the marine Executive orders, and we discuss First environment from potential hazards Amendment rights of protestors. Coast Guard created by the fireworks display and A. Regulatory Planning and Review lack sufficient time to provide a 33 CFR Part 165 reasonable comment period and then to Executive Orders 12866 and 13563 Docket Number USCG20230431 consider those comments before issuing direct agencies to assess the costs and the rule. benefits of available regulatory RIN 1625AA00 Under 5 U.S.C. 553(d)(3), the Coast alternatives and, if regulation is Guard finds that good cause exists for necessary, to select regulatory Safety Zone; Laguna Madre, South making this rule effective less than 30 approaches that maximize net benefits. Padre Island, TX days after publication in the Federal This rule has not been designated a AGENCY: Coast Guard, DHS. Register. Delaying the effective date of significant regulatory action, under ACTION: Temporary final rule. this rule would be contrary to the public Executive Order 12866. Accordingly, interest because immediate action is this rule has not been reviewed by the SUMMARY: The Coast Guard is needed to respond to the potential Office of Management and Budget establishing a temporary safety zone for safety hazards associated with fireworks (OMB). certain navigable waters in the Laguna launched from a barge in the waters of This regulatory action determination Madre. The safety zone is needed to the Laguna Madre. is based on the size, location, and protect personnel, vessels, and the duration of the safety zone. The III. Legal Authority and Need for Rule marine environment from potential temporary safety zone will be enforced hazards created by a firework display The Coast Guard is issuing this rule for a short period of 2.5 hours. The zone launched from a barge in the Laguna under authority in 46 U.S.C. 70034. The is limited to a 700-yard radius from the Madre, South Padre Island, Texas. Entry Captain of the Port Sector Corpus launching position of in the navigable VerDate Sep112014 16:30 May 26, 2023 Jkt 259001 PO 00000 Frm 00036 Fmt 4700 Sfmt 4700 E:FRFM30MYR1.SGM 30MYR1 1SELUR htiw DORP32NR021KSD no rellehmurdd","United States Code Annotated Title 50. War and National Defense Chapter 35. International Emergency Economic Powers  1701. Unusual and extraordinary threat; declaration of national emergency; exercise of Presidential authorities (a) Any authority granted to the President by section 1702 of this title may be exercised to deal with any unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, or economy of the United States, if the President declares a national emergency with respect to such threat. (b) The authorities granted to the President by section 1702 of this title may only be exercised to deal with an unusual and extraordinary threat with respect to which a national emergency has been declared for purposes of this chapter and may not be exercised for any other purpose. Any exercise of such authorities to deal with any new threat shall be based on a new declaration of national emergency which must be with respect to such threat.  1702. Presidential authorities (a)(1) At the times and to the extent specified in section 1701 of this title, the President may, under such regulations as he may prescribe, by means of instructions, licenses, or otherwise-- (A) investigate, regulate, or prohibit-- (i) any transactions in foreign exchange, (ii) transfers of credit or payments between, by, through, or to any banking institution, to the extent that such transfers or payments involve any interest of any foreign country or a national thereof, (iii) the importing or exporting of currency or securities, by any person, or with respect to any property, subject to the jurisdiction of the United States; (B) investigate, block during the pendency of an investigation, regulate, direct and compel, nullify, void, prevent or prohibit, any acquisition, holding, withholding, use, transfer, withdrawal, transportation, importation or exportation of, or dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property in which any foreign country or a national thereof has any interest by any person, or with respect to any property, subject to the jurisdiction of the United States; and (C) when the United States is engaged in armed hostilities or has been attacked by a foreign country or foreign nationals, confiscate any property, subject to the jurisdiction of the United States, of any foreign person, foreign organization, or foreign country that he determines has planned, authorized, aided, or engaged in such hostilities or attacks against the United States; and all right, title, and interest in any property so confiscated shall vest, when, as, and upon the terms directed by the President, in such agency or person as the President may designate from time to time, and upon such terms and conditions as the President may prescribe, such interest or property shall be held, used, administered, liquidated, sold, or otherwise dealt with in the interest of and for the benefit of the United States, and such designated agency or person may perform any and all acts incident to the accomplishment or furtherance of these purposes. (2) In exercising the authorities granted by paragraph (1), the President may require any person to keep a full record of, and to furnish under oath, in the form of reports or otherwise, complete information relative to any act or transaction referred to in paragraph (1) either before, during, or after the completion thereof, or relative to any interest in foreign property, or relative to any property in which any foreign country or any national thereof has or has had any interest, or as may be otherwise necessary to enforce the provisions of such paragraph. In any case in which a report by a person could be required under this paragraph, the President may require the production of any books of account, records, contracts, letters, memoranda, or other papers, in the custody or control of such person. (3) Compliance with any regulation, instruction, or direction issued under this chapter shall to the extent thereof be a full acquittance and discharge for all purposes of the obligation of the person making the same. No person shall be held liable in any court for or with respect to anything done or omitted in good faith in connection with the administration of, or pursuant to and in reliance on, this chapter, or any regulation, instruction, or direction issued under this chapter. (b) The authority granted to the President by this section does not include the authority to regulate or prohibit, directly or indirectly-- (1) any postal, telegraphic, telephonic, or other personal communication, which does not involve a transfer of anything of value; (2) donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, except to the extent that the President determines that such donations (A) would seriously impair his ability to deal with any national emergency declared under section 1701 of this title, (B) are in response to coercion against the proposed recipient or donor, or (C) would endanger Armed Forces of the United States which are engaged in hostilities or are in a situation where imminent involvement in hostilities is clearly indicated by the circumstances; or (3) the importation from any country, or the exportation to any country, whether commercial or otherwise, regardless of format or medium of transmission, of any information or informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. The exports exempted from regulation or prohibition by this paragraph do not include those which are otherwise controlled for export under section 2404 of the Appendix to this title, or under section 2405 of the Appendix to this title to the extent that such controls promote the nonproliferation or antiterrorism policies of the United States, or with respect to which acts are prohibited by chapter 37 of Title 18; (4) any transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use, maintenance within any country including payment of living expenses and acquisition of goods or services for personal use, and arrangement or facilitation of such travel including nonscheduled air, sea, or land voyages. (c) Classified information.--In any judicial review of a determination made under this section, if the determination was based on classified information (as defined in section 1(a) of the Classified Information Procedures Act) such information may be submitted to the reviewing court ex parte and in camera. This subsection does not confer or imply any right to judicial review.  1703. Consultation and reports (a) Consultation with Congress The President, in every possible instance, shall consult with the Congress before exercising any of the authorities granted by this chapter and shall consult regularly with the Congress so long as such authorities are exercised. (b) Report to Congress upon exercise of Presidential authorities Whenever the President exercises any of the authorities granted by this chapter, he shall immediately transmit to the Congress a report specifying-- (1) the circumstances which necessitate such exercise of authority; (2) why the President believes those circumstances constitute an unusual and extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, or economy of the United States; (3) the authorities to be exercised and the actions to be taken in the exercise of those authorities to deal with those circumstances; (4) why the President believes such actions are necessary to deal with those circumstances; and (5) any foreign countries with respect to which such actions are to be taken and why such actions are to be taken with respect to those countries. (c) Periodic follow-up reports At least once during each succeeding six-month period after transmitting a report pursuant to subsection (b) of this section with respect to an exercise of authorities under this chapter, the President shall report to the Congress with respect to the actions taken, since the last such report, in the exercise of such authorities, and with respect to any changes which have occurred concerning any information previously furnished pursuant to paragraphs (1) through (5) of subsection (b) of this section. (d) Supplemental requirements The requirements of this section are supplemental to those contained in title IV of the National Emergencies Act 50 U.S.C.A.  1641.  1704. Authority to issue regulations The President may issue such regulations, including regulations prescribing definitions, as may be necessary for the exercise of the authorities granted by this chapter.  1705. Penalties (a) Unlawful acts It shall be unlawful for a person to violate, attempt to violate, conspire to violate, or cause a violation of any license, order, regulation, or prohibition issued under this chapter. (b) Civil penalty A civil penalty may be imposed on any person who commits an unlawful act described in subsection (a) of this section in an amount not to exceed the greater of-- (1) 250,000; or (2) an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed. (c) Criminal penalty A person who willfully commits, willfully attempts to commit, or willfully conspires to commit, or aids or abets in the commission of, an unlawful act described in subsection (a) of this section shall, upon conviction, be fined not more than 1,000,000, or if a natural person, may be imprisoned for not more than 20 years, or both.  1706. Savings provisions (a) Termination of national emergencies pursuant to National Emergencies Act (1) Except as provided in subsection (b) of this section, notwithstanding the termination pursuant to the National Emergencies Act 50 U.S.C.A.  1601 et seq. of a national emergency declared for purposes of this chapter, any authorities granted by this chapter, which are exercised on the date of such termination on the basis of such national emergency to prohibit transactions involving property in which a foreign country or national thereof has any interest, may continue to be so exercised to prohibit transactions involving that property if the President determines that the continuation of such prohibition with respect to that property is necessary on account of claims involving such country or its nationals. (2) Notwithstanding the termination of the authorities described in section 101(b) of this Act, any such authorities, which are exercised with respect to a country on the date of such termination to prohibit transactions involving any property in which such country or any national thereof has any interest, may continue to be exercised to prohibit transactions involving that property if the President determines that the continuation of such prohibition with respect to that property is necessary on account of claims involving such country or its nationals. (b) Congressional termination of national emergencies by concurrent resolution The authorities described in subsection (a)(1) of this section may not continue to be exercised under this section if the national emergency is terminated by the Congress by concurrent resolution pursuant to section 202 of the National Emergencies Act 50 U.S.C.A  1622 and if the Congress specifies in such concurrent resolution that such authorities may not continue to be exercised under this section. (c) Supplemental savings provisions; supersedure of inconsistent provisions (1) The provisions of this section are supplemental to the savings provisions of paragraphs (1), (2), and (3) of section 101(a) 50 U.S.C.A.  1601(a)(1), (2), (3) and of paragraphs (A), (B), and (C) of section 202(a) 50 U.S.C.A.  1622(a)(A), (B), and (C) of the National Emergencies Act. (2) The provisions of this section supersede the termination provisions of section 101(a) 50 U.S.C.A.  1601(a) and of title II 50 U.S.C.A.  1621 et seq. of the National Emergencies Act to the extent that the provisions of this section are inconsistent with these provisions. (d) Periodic reports to Congress If the President uses the authority of this section to continue prohibitions on transactions involving foreign property interests, he shall report to the Congress every six months on the use of such authority.  1707. Multinational economic embargoes against governments in armed conflict with the United States (a) Policy on the establishment of embargoes It is the policy of the United States, that upon the use of the Armed Forces of the United States to engage in hostilities against any foreign country, the President shall, as appropriate-- (1) seek the establishment of a multinational economic embargo against such country; and (2) seek the seizure of its foreign financial assets. (b) Reports to Congress Not later than 20 days after the first day of the engagement of the United States in hostilities described in subsection (a) of this section, the President shall, if the armed conflict has continued for 14 days, submit to Congress a report setting forth-- (1) the specific steps the United States has taken and will continue to take to establish a multinational economic embargo and to initiate financial asset seizure pursuant to subsection (a) of this section; and (2) any foreign sources of trade or revenue that directly or indirectly support the ability of the adversarial government to sustain a military conflict against the United States.","DEPARTMENT OF THE TREASURY WASHINGTON, D.C. 20220 OFFICE OF FOREIGN ASSETS CONTROL GUIDANCE ON THE RELEASE OF LIMITED AMOUNTS OF BLOCKED FUNDS FOR PAYMENT OF LEGAL FEES AND COSTS INCURRED IN CHALLENGING THE BLOCKING OF U.S. PERSONS IN ADMINISTRATIVE OR CIVIL PROCEEDINGS This policy provides for the issuance ofspecific licenses, on a case-by-case basis, to authorize the release of a limited amount of blocked funds for the payment of legal fees and costs incurred in seeking administrative reconsideration or judicial review ofthe designation ofa U.S. person or the u.s. blocking ofthe property and interests in property ofa person under the authority ofExecutive orders and regulations administered by OFAC (any such U.S. person hereinafter referred to as a ""Blocked Party""), where alternative funding sources are not available. Pursuant to this policy, the blocked funds from which payment is sought must be legally and beneficially owned by the Blocked Party. This policy is aimed at enhancing the ability of a Blocked Party that lacks alternative access to funds to acquire legal representation in connection with its designation or the blocking of its property and interests in property. This policy is not intended to ensure complete compensation to counsel. Limitations on the amount offunds released to a Blocked Party are necessary to preserve the President's authority and leverage in the conduct offoreign policy. This policy is separate from, but complementary to, OFAC's policies allowing for the issuance ofspecific licenses providing for a Blocked Party to receive fresh funds from unblocked sources outside the United States and to raise funds in the United States through an authorized legal defense fund. Part I: Designated or Blocked Party Requirements The new policy includes a number ofparameters. To be considered for a specific license, a Blocked Party must satisfy the following requirements:  a Blocked Party must be designated, or its property and interests in property blocked or blocked pending investigation, under the authority of Executive orders and regulations administered by OFAC;  a Blocked Party must be a U.S. person, as defined in the relevant Executive orders and regulations administered by OFAC;  a Blocked Party must be the legal and beneficial owner of the blocked funds from which payment is sought to be made; and July23, 2010  the legal fees and costs for which reimbursement is sought must have been incurred in seeking administrative reconsideration orjudicial review ofthe Blocked Party's designation, blocking, or blocking pending investigation. A specific license applicant will not be eligible for a license for payment of legal fees and costs from blocked funds under this policy ifany ofthese requirements is not met. Part II: Licensing Requirements To enable OFAC to make a licensing determination, a Blocked Party and its counsel must provide the following:  evidence or a certification that the Blocked Party is a U.S. person as defined in the relevant OFAC regulations and the Executive orders under which the Blocked Party was designated or blocked;  an itemized statement of the amounts already paid for legal representation and associated costs to date, including the source(s) of payment (e.g., a legal defense fund or a source outside the United States), whether paid by or on behalfofthe Blocked Party;  a letter from the Blocked Party requesting that the legal fees and costs for a particular attorney or attorneys be paid from the Blocked Party's blocked funds, identifying the specific blocked funds from which payment is requested to be made, and providing the name and address of the bank holding the funds, the account number(s), and the name and telephone number ofa contact person at the bank;  a certification, signed by the Blocked Party and its counsel under penalty ofpeljury, that: o the Blocked Party is the legal and beneficial owner ofthe blocked funds; o no other person has a property interest in the blocked funds and the funds do not serve as security for other obligations ofthe Blocked Party; o the Blocked Party has no assets, property, or economic resources ofany type outside the United States; and o the Blocked Party has fully reported or caused to be reported, pursuant to 31 C.F.R.  501.603, any of its property or interests in property blocked pursuant to 31 C.F.R. Chapter V;  an itemized statement of the hourly rate and number of hours billed per attorney for legal services directly related to the request for administrative reconsideration or judicial review of the designation or blocking, divided by each phase of the case (administrative proceedings before OFAC, district court, and appellate court); and  an itemized statement and description of costs incurred in seeking administrative reconsideration or judicial review of the designation or blocking, divided by each phase of the case. OFAC may request that the Blocked Party and its counsel furnish additional information as necessary. 2 An application requesting a specific license authorizing the release of blocked funds under this policy may be submitted at each stage ofthe administrative proceedings or litigation, either (i) when the licensable fees and costs incurred for that stage ofthe proceedings or litigation have reached the applicable cap; or (ii) at the end ofthat stage ofthe proceedings or litigation. Any licenses issued pursuant to this policy will authorize payment from blocked funds directly to the attorney or attorneys representing the Blocked Party. Part III: Monetary Limitations The monetary limitations of this policy are modeled generally on the attorney compensation provisions of the Criminal Justice Act (CJA) and the Equal Access to Justice Act (EAJA). Specifically, in a manner similar to the EAJA, the payment oflegal fees from blocked funds may be licensed at a rate not to exceed 125 per hour, up to a cap set for each stage of the administrative proceedings or litigation. OFAC anticipates tracking the EAJA hourly rate if it changes in the future. With respect to applications submitted by a designated Blocked Party, the policy incorporates fee caps per proceeding, as does the CJA, and limits the amount of licensable fees to 14,000 for administrative proceedings; 14,000 for district court litigation; and 10,000 for appellate court litigation.I In extraordinary cases, such as cases involving lengthy or complex proceedings (e.g., may include cases lasting more than a year or with multiple patties whose designation or blocking resulted from a substantially similar administrative record or set of facts), the maximum fees allowed could be doubled for each stage. Thus, in these cases, counsel might be licensed up to a total of28,000 for administrative proceedings; 28,000 for district court litigation; and 20,000 for appellate court litigation. These overall monetary caps are calculated based on two attorneys per case, but a Blocked Party may choose to apportion the maximum allotments between a greater or smaller number oflegal representatives. In addition to legal fees, certain legal costs ofa designated Blocked Party may be licensed for payment from blocked funds, up to a cap of15,000; this cap applies to costs incurred by all attorneys during the course of administrative proceedings and litigation The overall fee capsare based on the calculations of7,000 perattorney, for up to two attorneys, for administrative proceedings; 7,000 perattorney, for up to two attorneys, for district court litigation; and 5,000 per attorney, for up to two attorneys, for appellate court litigation. 2 As ofJuly 23, 2010, the policy's overall fee and costcaps described in Pat111I do not apply to applications submitted byaBlocked Party who has not been designated but whose property and interests in property have been ""blocked pending investigation."" This revision to the policyappliesonly to pendingand future licensingapplications submitted pursuant to this policyand will not be applied retroactively to persons whose propertyand interests in property previously were blocked pending investigation but who are no longer in that status. The hourly fee cap of 125 will continue to be applied to such applications. The basis for this revision to the policy is twofold. First, the decision to block aparty pending investigation is preliminary, because when OFAC blocks the propertyofadesignation target duringthe pendencyofan investigation, OFAC is in the process ofdetermining whetheraparty meetscertain designation criteria set forth in an Executiveorder for posingaspecific threat to U.S. interests. Second, ablocking pending investigation by OFAC is typicallyofashorter duration than adesignation. Though the length oftime that aparty may be blocked pending investigation will depend on the amount oftime needed to completethe investigation, blocked assets are less likely to bedepleted given the frequently shorterduration. 3 As a prerequisite for receiving a specific license, a Blocked Party or its counsel must provide an itemized statement ofthe amounts already paid for legal representation and costs to date, including the source(s) of payment, whether paid by or on behalfofthe Blocked Party, as set forth in Part II above. In processing applications for specific licenses authorizing the release of blocked funds, OFAC will reduce the applicable caps on legal fees and costs payable from blocked funds by any amounts previously received from either fresh funds or a legal defense fund. Should additional fresh funds or legal defense funds be received after blocked funds are licensed and used for payment oflegal fees andor costs, then such additional funds must first be deposited into a blocked account until the amount previously unblocked is restored. Any remaining funds may then be applied to legal fees andor costs. 4","DEPARTMENT OF THE TREASURY WASHINGTON, D.C. 20220 August 13,2014 REVISED GUIDANCE ON ENTITIES OWNED BY PERSONS WHOSE PROPERTY AND INTERESTS IN PROPERTY ARE BLOCKED This guidance responds to inquiries received by the Department of the Treasury's Office of Foreign Assets Control (OFAC) relating to the status of entities owned by individuals or entities designated under Executive orders and regulations administered by OF AC. This document sets forth new guidance with respect to entities owned 50 percent or more in the aggregate by more than one blocked person. Property blocked pursuant to an Executive order or regulations administered by OF AC is broadly defined to include any property or interest in property, tangible or intangible, including present, future or contingent interests. A property interest subject to blocking includes interests of any nature whatsoever, direct or indirect. Persons whose property and interests in property are blocked pursuant to an Executive order or regulations administered by OFAC (blocked persons) are considered to have an interest in all property and interests in property of an entity in which such blocked persons own, whether individually or in the aggregate, directly or indirectly, a 50 percent or greater interest. Consequently, any entity owned in the aggregate, directly or indirectly, 50 percent or more by one or more blocked persons is itself considered to be a blocked person. The property and interests in property of such an entity are blocked regardless of whether the entity itself is listed in the annex to an Executive order or otherwise placed on OFAC's list of Specially Designated Nationals (""SDNs""). Accordingly, a U.S. person generally may not engage in any transactions with such an entity, unless authorized by OF AC. In certain OF AC sanctions programs (e.g., Cuba and Sudan), there is a broader category of entities whose property and interests in property are blocked based on, for example, ownership or control. U.S. persons are advised to act with caution when considering a transaction with a non-blocked entity in which one or more blocked persons has a significant ownership interest that is less than 50 percent or which one or more blocked persons may control by means other than a majority ownership interest. Such entities may be the subject of future designation or enforcement action by OFAC. Furthermore, a U.S. person may not procure goods, services, or technology from, or engage in transactions with, a blocked person directly or indirectly (including through a third party intermediary). OFAC will incorporate this guidance as it issues regulations implementing new sanctions programs. In addition, OF AC expects to amend regulations implementing existing sanctions programs to reflect this guidance.","Page 279 TITLE 50WAR AND NATIONAL DEFENSE 1601 States Armed Forces engaged in hostilities out- forces to command, coordinate, participate in side the territory of the United States, its pos- the movement of, or accompany the regular or sessions and territories, without a declaration of irregular military forces of any foreign country war or specific statutory authorization shall be or government when such military forces are en- considered in accordance with the procedures of gaged, or there exists an imminent threat that section 601(b) of the International Security As- such forces will become engaged, in hostilities. sistance and Arms Export Control Act of 1976, (d) Constitutional authorities or existing treaties except that any such resolution or bill shall be unaffected; construction against grant of amendable. If such a joint resolution or bill Presidential authority respecting use of should be vetoed by the President, the time for United States Armed Forces debate in consideration of the veto message on such measure shall be limited to twenty hours Nothing in this chapter in the Senate and in the House shall be deter- (1) is intended to alter the constitutional au- mined in accordance with the Rules of the thority of the Congress or of the President, or House. the provisions of existing treaties; or (2) shall be construed as granting any au- (Pub. L. 98164, title X, 1013, Nov. 22, 1983, 97 thority to the President with respect to the Stat. 1062.) introduction of United States Armed Forces REFERENCES IN TEXT into hostilities or into situations wherein in- volvement in hostilities is clearly indicated by Section 601(b) of the International Security Assist- the circumstances which authority he would ance and Arms Export Control Act of 1976, referred to not have had in the absence of this chapter. in text, is section 601(b) of Pub. L. 94329, title VI, June 30, 1976, 90 Stat. 765, which was not classified to the (Pub. L. 93148, 8, Nov. 7, 1973, 87 Stat. 558.) Code. CODIFICATION 1548. Separability Section was enacted as part of the Department of If any provision of this chapter or the applica- State Authorization Act, Fiscal Years 1984 and 1985, tion thereof to any person or circumstance is and not as part of the War Powers Resolution which held invalid, the remainder of the chapter and comprises this chapter. the application of such provision to any other person or circumstance shall not be affected 1547. Interpretation of joint resolution thereby. (a) Inferences from any law or treaty (Pub. L. 93148, 9, Nov. 7, 1973, 87 Stat. 559.) Authority to introduce United States Armed Forces into hostilities or into situations where- CHAPTER 34NATIONAL EMERGENCIES in involvement in hostilities is clearly indicated by the circumstances shall not be inferred SUBCHAPTER ITERMINATING EXISTING (1) from any provision of law (whether or not DECLARED EMERGENCIES in effect before November 7, 1973), including Sec. any provision contained in any appropriation 1601. Termination of existing declared emer- Act, unless such provision specifically author- gencies. izes the introduction of United States Armed SUBCHAPTER IIDECLARATIONS OF FUTURE Forces into hostilities or into such situations NATIONAL EMERGENCIES and states that it is intended to constitute 1621. Declaration of national emergency by Presi- specific statutory authorization within the dent; publication in Federal Register; effect meaning of this chapter; or on other laws; superseding legislation. (2) from any treaty heretofore or hereafter 1622. National emergencies. ratified unless such treaty is implemented by SUBCHAPTER IIIEXERCISE OF EMERGENCY legislation specifically authorizing the intro- POWERS AND AUTHORITIES duction of United States Armed Forces into 1631. Declaration of national emergency by Execu- hostilities or into such situations and stating tive order; authority; publication in Fed- that it is intended to constitute specific statu- eral Register; transmittal to Congress. tory authorization within the meaning of this chapter. SUBCHAPTER IVACCOUNTABILITY AND REPORTING REQUIREMENTS OF PRESIDENT (b) Joint headquarters operations of high-level military commands 1641. Accountability and reporting requirements of President. Nothing in this chapter shall be construed to SUBCHAPTER VAPPLICATION TO POWERS AND require any further specific statutory authoriza- AUTHORITIES OF OTHER PROVISIONS OF LAW tion to permit members of United States Armed AND ACTIONS TAKEN THEREUNDER Forces to participate jointly with members of the armed forces of one or more foreign coun- 1651. Other laws, powers and authorities conferred thereby, and actions taken thereunder; Con- tries in the headquarters operations of high- gressional studies. level military commands which were established prior to November 7, 1973, and pursuant to the SUBCHAPTER ITERMINATING EXISTING United Nations Charter or any treaty ratified by DECLARED EMERGENCIES the United States prior to such date. (c) Introduction of United States Armed Forces 1601. Termination of existing declared emer- gencies For purposes of this chapter, the term intro- duction of United States Armed Forces in- (a) All powers and authorities possessed by the cludes the assignment of members of such armed President, any other officer or employee of the 1621 TITLE 50WAR AND NATIONAL DEFENSE Page 280 Federal Government, or any executive agency, (Pub. L. 94412, title II, 201, Sept. 14, 1976, 90 as defined in section 105 of title 5, as a result of Stat. 1255.) the existence of any declaration of national PROC. NO. 7463. DECLARATIONOFNATIONALEMERGENCY emergency in effect on September 14, 1976, are BYREASONOFCERTAINTERRORISTATTACKS terminated two years from September 14, 1976. Proc. No. 7463, Sept. 14, 2001, 66 F.R. 48199, provided: Such termination shall not affect A national emergency exists by reason of the terror- (1) any action taken or proceeding pending ist attacks at the World Trade Center, New York, New not finally concluded or determined on such York, and the Pentagon, and the continuing and imme- date; diate threat of further attacks on the United States. (2) any action or proceeding based on any act NOW, THEREFORE, I, GEORGE W. BUSH, President committed prior to such date; or of the United States of America, by virtue of the au- (3) any rights or duties that matured or pen- thority vested in me as President by the Constitution alties that were incurred prior to such date. and the laws of the United States, I hereby declare that the national emergency has existed since September 11, (b) For the purpose of this section, the words 2001, and, pursuant to the National Emergencies Act (50 any national emergency in effect means a U.S.C. 1601 et seq.), I intend to utilize the following general declaration of emergency made by the statutes: sections 123, 123a, 527, 2201(c), 12006, and 12302 President. of title 10, United States Code, and sections 331, 359, and 367 of title 14, United States Code. (Pub. L. 94412, title I, 101, Sept. 14, 1976, 90 This proclamation immediately shall be published in Stat. 1255.) the Federal Register or disseminated through the Emergency Federal Register, and transmitted to the SHORT TITLE Congress. Section 1 of Pub. L. 94412 provided: That this Act This proclamation is not intended to create any right enacting this chapter, amending section 1481 of Title 8, or benefit, substantive or procedural, enforceable at Aliens and Nationality, and section 2667 of Title 10, law by a party against the United States, its agencies, Armed Forces, repealing section 249 of Title 12, Banks its officers, or any person. and Banking, section 831d of Title 16, Conservation, sec- IN WITNESS WHEREOF, I have hereunto set my tion 1383 of Title 18, Crimes and Criminal Procedure, hand this fourteenth day of September, in the year of section 211b of Title 42, The Public Health and Welfare, our Lord two thousand one, and of the Independence of and section 1742 of the Appendix to this title, and en- the United States of America the two hundred and acting provisions set out below may be cited as the twenty-sixth. National Emergencies Act. GEORGEW. BUSH. SAVINGS PROVISION CONTINUATIONOFNATIONALEMERGENCYDECLAREDBY PROC. NO. 7463 Section 501(h) of Pub. L. 94412 provided that: This section amending section 1481 of Title 8, Aliens and Notice of President of the United States, dated Sept. Nationality and section 2667 of Title 10, Armed Forces, 5, 2006, 71 F.R. 52733, provided: and repealing section 249 of Title 12, Banks and Bank- Consistent with section 202(d) of the National Emer- ing, section 831d of Title 16, Conservation, section 1383 gencies Act (50 U.S.C. 1622(d)), I am continuing for 1 of Title 18, Crimes and Criminal Procedure, and section year the national emergency I declared on September 211b of Title 42, The Public Health and Welfare shall 14, 2001, in Proclamation 7463 set out above, with re- not affect spect to the terrorist attacks at the World Trade Cen- (1) any action taken or proceeding pending not fi- ter, New York, New York, the Pentagon, and aboard nally concluded or determined at the time of repeal; United Airlines flight 93, and the continuing and imme- (2) any action or proceeding based on any act com- diate threat of further attacks on the United States. mittee prior to repeal; or Because the terrorist threat continues, the national (3) any rights or duties that matured or penalties emergency declared on September 14, 2001, and the that were incurred prior to repeal. measures adopted to deal with that emergency must continue in effect beyond September 14, 2006. Therefore, SUBCHAPTER IIDECLARATIONS OF I am continuing in effect for an additional year the na- FUTURE NATIONAL EMERGENCIES tional emergency I declared on September 14, 2001, with respect to the terrorist threat. 1621. Declaration of national emergency by This notice shall be published in the Federal Register President; publication in Federal Register; and transmitted to the Congress. effect on other laws; superseding legislation GEORGEW. BUSH. (a) With respect to Acts of Congress authoriz- Prior continuations of national emergency declared ing the exercise, during the period of a national by Proc. No. 7463 were contained in the following: emergency, of any special or extraordinary Notice of President of the United States, dated Sept. 8, 2005, 70 F.R. 54229. power, the President is authorized to declare Notice of President of the United States, dated Sept. such national emergency. Such proclamation 10, 2004, 69 F.R. 55313. shall immediately be transmitted to the Con- Notice of President of the United States, dated Sept. gress and published in the Federal Register. 10, 2003, 68 F.R. 53665. (b) Any provisions of law conferring powers Notice of President of the United States, dated Sept. and authorities to be exercised during a national 12, 2002, 67 F.R. 58317. emergency shall be effective and remain in ef- 1622. National emergencies fect (1) only when the President (in accordance with subsection (a) of this section), specifically (a) Termination methods declares a national emergency, and (2) only in Any national emergency declared by the accordance with this chapter. No law enacted President in accordance with this subchapter after September 14, 1976, shall supersede this shall terminate if subchapter unless it does so in specific terms, (1) there is enacted into law a joint resolu- referring to this subchapter, and declaring that tion terminating the emergency; or the new law supersedes the provisions of this (2) the President issues a proclamation ter- subchapter. minating the emergency. Page 281 TITLE 50WAR AND NATIONAL DEFENSE 1631 Any national emergency declared by the Presi- have been appointed. Notwithstanding any rule dent shall be terminated on the date specified in in either House concerning the printing of con- any joint resolution referred to in clause (1) or ference reports or concerning any delay in the on the date specified in a proclamation by the consideration of such reports, such report shall President terminating the emergency as pro- be acted on by both Houses not later than six vided in clause (2) of this subsection, whichever calendar days after the conference report is filed date is earlier, and any powers or authorities ex- in the House in which such report is filed first. ercised by reason of said emergency shall cease In the event the conferees are unable to agree to be exercised after such specified date, except within forty-eight hours, they shall report back that such termination shall not affect to their respective Houses in disagreement. (A) any action taken or proceeding pending (5) Paragraphs (1)(4) of this subsection, sub- not finally concluded or determined on such section (b) of this section, and section 1651(b) of date; this title are enacted by Congress (B) any action or proceeding based on any (A) as an exercise of the rulemaking power act committed prior to such date; or of the Senate and the House of Representa- (C) any rights or duties that matured or pen- tives, respectively, and as such they are alties that were incurred prior to such date. deemed a part of the rules of each House, re- spectively, but applicable only with respect to (b) Termination review of national emergencies the procedure to be followed in the House in by Congress the case of resolutions described by this sub- Not later than six months after a national section; and they supersede other rules only to emergency is declared, and not later than the the extent that they are inconsistent there- end of each six-month period thereafter that with; and such emergency continues, each House of Con- (B) with full recognition of the constitu- gress shall meet to consider a vote on a joint tional right of either House to change the resolution to determine whether that emergency rules (so far as relating to the procedure of shall be terminated. that House) at any time, in the same manner, (c) Joint resolution; referral to Congressional and to the same extent as in the case of any committees; conference committee in event other rule of that House. of disagreement; filing of report; termination (d) Automatic termination of national emer- procedure deemed part of rules of House and gency; continuation notice from President to Senate Congress; publication in Federal Register (1) A joint resolution to terminate a national Any national emergency declared by the emergency declared by the President shall be re- President in accordance with this subchapter, ferred to the appropriate committee of the and not otherwise previously terminated, shall House of Representatives or the Senate, as the terminate on the anniversary of the declaration case may be. One such joint resolution shall be of that emergency if, within the ninety-day pe- reported out by such committee together with riod prior to each anniversary date, the Presi- its recommendations within fifteen calendar dent does not publish in the Federal Register days after the day on which such resolution is and transmit to the Congress a notice stating referred to such committee, unless such House that such emergency is to continue in effect shall otherwise determine by the yeas and nays. after such anniversary. (2) Any joint resolution so reported shall be- (Pub. L. 94412, title II, 202, Sept. 14, 1976, 90 come the pending business of the House in ques- Stat. 1255; Pub. L. 9993, title VIII, 801, Aug. 16, tion (in the case of the Senate the time for de- 1985, 99 Stat. 448.) bate shall be equally divided between the pro- ponents and the opponents) and shall be voted AMENDMENTS on within three calendar days after the day on 1985Subsecs. (a) to (c). Pub. L. 9993 substituted which such resolution is reported, unless such there is enacted into law a joint resolution terminat- House shall otherwise determine by yeas and ing the emergency for Congress terminates the emer- nays. gency by concurrent resolution in par. (1) of subsec. (3) Such a joint resolution passed by one House (a), and substituted joint resolution for concurrent resolution wherever appearing in second sentence of shall be referred to the appropriate committee subsec. (a), subsec. (b), and pars. (1) to (4) of subsec. (c). of the other House and shall be reported out by such committee together with its recommenda- SUBCHAPTER IIIEXERCISE OF tions within fifteen calendar days after the day EMERGENCY POWERS AND AUTHORITIES on which such resolution is referred to such 1631. Declaration of national emergency by Ex- committee and shall thereupon become the ecutive order; authority; publication in Fed- pending business of such House and shall be eral Register; transmittal to Congress voted upon within three calendar days after the day on which such resolution is reported, unless When the President declares a national emer- such House shall otherwise determine by yeas gency, no powers or authorities made available and nays. by statute for use in the event of an emergency (4) In the case of any disagreement between shall be exercised unless and until the President the two Houses of Congress with respect to a specifies the provisions of law under which he joint resolution passed by both Houses, con- proposes that he, or other officers will act. Such ferees shall be promptly appointed and the com- specification may be made either in the declara- mittee of conference shall make and file a re- tion of a national emergency, or by one or more port with respect to such joint resolution within contemporaneous or subsequent Executive or- six calendar days after the day on which man- ders published in the Federal Register and agers on the part of the Senate and the House transmitted to the Congress. 1641 TITLE 50WAR AND NATIONAL DEFENSE Page 282 (Pub. L. 94412, title III, 301, Sept. 14, 1976, 90 SUBCHAPTER VAPPLICATION TO POWERS Stat. 1257.) AND AUTHORITIES OF OTHER PROVI- SIONS OF LAW AND ACTIONS TAKEN THEREUNDER RELEASE OF AMERICAN HOSTAGES IN IRAN For provisions relating to the release of the Amer- 1651. Other laws, powers and authorities con- ican hostages in Iran, see Ex. Ord. Nos. 12276 to 12285, ferred thereby, and actions taken there- Jan. 19, 1981, 46 F.R. 7913 to 7932, listed in a table under section 1701 of this title. under; Congressional studies (a) The provisions of this chapter shall not SUBCHAPTER IVACCOUNTABILITY AND apply to the following provisions of law, the REPORTING REQUIREMENTS OF PRESI- powers and authorities conferred thereby, and DENT actions taken thereunder: (1) Act of June 30, 1949 (41 U.S.C. 252); (2) Section 3727(a)(e)(1) of title 31; 1641. Accountability and reporting require- (3) Section 3737 of the Revised Statutes, as ments of President amended (41 U.S.C. 15); (4) Public Law 85804 (Act of Aug. 28, 1958, 72 (a) Maintenance of file and index of Presidential Stat. 972; 50 U.S.C. 1431 et seq.); orders, rules and regulations during national (5) Section 2304(a)(1)1of title 10;2 emergency (b) Each committee of the House of Represent- When the President declares a national emer- atives and the Senate having jurisdiction with gency, or Congress declares war, the President respect to any provision of law referred to in shall be responsible for maintaining a file and subsection (a) of this section shall make a com- index of all significant orders of the President, plete study and investigation concerning that including Executive orders and proclamations, provision of law and make a report, including and each Executive agency shall maintain a file any recommendations and proposed revisions and index of all rules and regulations, issued such committee may have, to its respective during such emergency or war issued pursuant House of Congress within two hundred and sev- to such declarations. enty days after September 14, 1976. (Pub. L. 94412, title V, 502, Sept. 14, 1976, 90 (b) Presidential orders, rules and regulations; Stat. 1258; Pub. L. 95223, title I, 101(d), Dec. 28, transmittal to Congress 1977, 91 Stat. 1625; Pub. L. 96513, title V, 507(b), All such significant orders of the President, Dec. 12, 1980, 94 Stat. 2919; Pub. L. 105362, title including Executive orders, and such rules and IX, 901(r)(2), Nov. 10, 1998, 112 Stat. 3291; Pub. L. regulations shall be transmitted to the Congress 107314, div. A, title X, 1062(o)(1), Dec. 2, 2002, promptly under means to assure confidentiality 116 Stat. 2652.) where appropriate. REFERENCES IN TEXT (c) Expenditures during national emergency; Act of June 30, 1949 (41 U.S.C. 252), referred to in sub- Presidential reports to Congress sec. (a)(1), is act June 30, 1949, ch. 288, 63 Stat. 377, as When the President declares a national emer- amended, known as the Federal Property and Adminis- trative Services Act of 1949. Except for title III of the gency or Congress declares war, the President Act, which is classified generally to subchapter IV (251 shall transmit to Congress, within ninety days et seq.) of chapter 4 of Title 41, Public Contracts, the after the end of each six-month period after such Act was repealed and reenacted by Pub. L. 107217, 1, declaration, a report on the total expenditures 6(b), Aug. 21, 2002, 116 Stat. 1062, 1304, as chapters 1 to incurred by the United States Government dur- 11 of Title 40, Public Buildings, Property, and Works. ing such six-month period which are directly at- Section 302 of the Act is classified to section 252 of tributable to the exercise of powers and authori- Title 41, Public Contracts. ties conferred by such declaration. Not later Public Law 85804, referred to in subsec. (a)(4), is Pub. L. 85804, Aug. 28, 1958, 72 Stat. 972, as amended, which than ninety days after the termination of each is classified generally to chapter 29 (1431 et seq.) of such emergency or war, the President shall this title. For complete classification of this Act to the transmit a final report on all such expenditures. Code, see Tables. Section 2304(a)(1) of title 10, referred to in subsec. (Pub. L. 94412, title IV, 401, Sept. 14, 1976, 90 (a)(5), originally authorized purchases or contracts Stat. 1257.) without formal advertising when necessary in the pub- lic interest during a national emergency declared by DELEGATIONOFFUNCTIONS Congress or the President, and as amended generally by Pub. L. 98369 now sets forth the competition require- Delegation of congressional reporting functions of ments for procurement of property or services. President under subsec. (c) of this section were con- tained in the following: CODIFICATION Ex. Ord. No. 13396, 6, Feb. 7, 2006, 71 F.R. 7391, listed in a table under section 1701 of this title. In subsec. (a)(2), Section 3727(a)(e)(1) of title 31 substituted for Section 3477 of the Revised Statutes, Ex. Ord. No. 13348, 7, July 22, 2004, 69 F.R. 44887, list- as amended (31 U.S.C. 203) on authority of Pub. L. ed in a table under section 1701 of this title. 97258, 4(b), Sept. 13, 1982, 96 Stat. 1067, the first sec- Ex. Ord. No. 13338, 12, May 11, 2004, 69 F.R. 26754, list- tion of which enacted Title 31, Money and Finance. ed in a table under section 1701 of this title. Ex. Ord. No. 13313, 1, July 31, 2003, 68 F.R. 46073, set out in a note under section 301 of Title 3, The Presi- 1See References in Text note below. dent. 2So in original. The semicolon probably should be a period. Page 283 TITLE 50WAR AND NATIONAL DEFENSE 1701 AMENDMENTS note under this section and amending provisions set out as notes under this section and section 2797b of 2002Subsec. (a). Pub. L. 107314 struck out par. (2), Title 22, Foreign Relations and Intercourse may be which read Act of April 28, 1942 (40 U.S.C. 278b);, and cited as the Iran Nonproliferation Amendments Act of redesignated pars. (3) to (7) as (1) to (5), respectively. 2005. 1998Subsec. (a)(6). Pub. L. 105362 substituted 1431 et seq. for 14311435. SHORT TITLE OF 2001 AMENDMENT 1980Subsec. (a)(8). Pub. L. 96513 struck out par. (8) which made reference to sections 3313, 6386(c), and 8313 Pub. L. 10724, 1, Aug. 3, 2001, 115 Stat. 199, provided of title 10. that: This Act enacting and amending provisions set 1977Subsec. (a)(1). Pub. L. 95223 struck out par. (1) out as notes below may be cited as the ILSA Exten- which read as follows: Section 5(b) of the Act of Octo- sion Act of 2001. ber 6, 1917, as amended (12 U.S.C. 95a; 50 U.S.C. App. SHORT TITLE 5(b));. Section 201 of title II of Pub. L. 95223 provided that: EFFECTIVE DATE OF 1980 AMENDMENT This title enacting this chapter may be cited as the Amendment by Pub. L. 96513 effective Sept. 15, 1981, International Emergency Economic Powers Act. see section 701 of Pub. L. 96513, set out as a note under SEPARABILITY section 101 of Title 10, Armed Forces. Section 208 of Pub. L. 95223 provided that: If any CHAPTER 35INTERNATIONAL EMERGENCY provision of this Act enacting this chapter is held in- ECONOMIC POWERS valid, the remainder of the Act shall not be affected thereby. Sec. 1701. Unusual and extraordinary threat; declara- DARFUR PEACE AND ACCOUNTABILITY tion of national emergency; exercise of Pub. L. 109344, Oct. 13, 2006, 120 Stat. 1869, provided Presidential authorities. that: 1702. Presidential authorities. 1703. Consultation and reports. SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1704. Authority to issue regulations. (a) SHORT TITLE.This Act may be cited as the 1705. Penalties. Darfur Peace and Accountability Act of 2006. 1706. Savings provisions. (b) TABLEOFCONTENTS.Omitted. 1707. Multinational economic embargoes against SEC. 2. DEFINITIONS. governments in armed conflict with the In this Act: United States. (1) AMIS.The term AMIS means the African 1701. Unusual and extraordinary threat; dec- Union Mission in Sudan. laration of national emergency; exercise of (2) APPROPRIATECONGRESSIONALCOMMITTEES.The term appropriate congressional committees means Presidential authorities the Committee on Foreign Relations of the Senate (a) Any authority granted to the President by and the Committee on International Relations of the House of Representatives. section 1702 of this title may be exercised to deal (3) COMPREHENSIVEPEACEAGREEMENTFORSUDAN. with any unusual and extraordinary threat, The term Comprehensive Peace Agreement for which has its source in whole or substantial part Sudan means the peace agreement signed by the outside the United States, to the national secu- Government of Sudan and the SPLMA in Nairobi, rity, foreign policy, or economy of the United Kenya, on January 9, 2005. States, if the President declares a national (4) DARFUR PEACE AGREEMENT.The term Darfur emergency with respect to such threat. Peace Agreement means the peace agreement signed (b) The authorities granted to the President by the Government of Sudan and by Minni Minnawi, leader of the Sudan Liberation MovementArmy Fac- by section 1702 of this title may only be exer- tion, in Abuja, Nigeria, on May 5, 2006. cised to deal with an unusual and extraordinary (5) GOVERNMENT OF SUDAN.The term Govern- threat with respect to which a national emer- ment of Sudan gency has been declared for purposes of this (A) means chapter and may not be exercised for any other (i) the government in Khartoum, Sudan, which purpose. Any exercise of such authorities to deal is led by the National Congress Party (formerly with any new threat shall be based on a new dec- known as the National Islamic Front); or laration of national emergency which must be (ii) any successor government formed on or after the date of the enactment of this Act Oct. with respect to such threat. 13, 2006 (including the coalition National Unity (Pub. L. 95223, title II, 202, Dec. 28, 1977, 91 Government agreed upon in the Comprehensive Stat. 1626.) Peace Agreement for Sudan); and (B) does not include the regional government of SHORT TITLE OF 2006 AMENDMENT Southern Sudan. Pub. L. 109353, 1, Oct. 13, 2006, 120 Stat. 2015, pro- (6) OFFICIALS OF THE GOVERNMENT OF SUDAN.The term official of the Government of Sudan does not vided that: This Act amending provisions set out as include any individual a note below may be cited as the North Korea Non- (A) who was not a member of such government proliferation Act of 2006. before July 1, 2005; or Pub. L. 109293, 1, Sept. 30, 2006, 120 Stat. 1344, pro- (B) who is a member of the regional government vided that: This Act amending section 5318A of Title of Southern Sudan. 31, Money and Finance, enacting provisions set out as (7) SPLMA.The term SPLMA means the notes under this section and section 2151 of Title 22, Sudan Peoples Liberation MovementArmy. Foreign Relations and Intercourse, and amending pro- visions set out as a note under this section may be SEC. 3. FINDINGS. cited as the Iran Freedom Support Act. Congress makes the following findings: (1) On July 23, 2004, Congress declared, the atroc- SHORT TITLE OF 2005 AMENDMENT ities unfolding in Darfur, Sudan, are genocide. Pub. L. 109112, 1, Nov. 22, 2005, 119 Stat. 2366, pro- (2) On September 9, 2004, Secretary of State Colin vided that: This Act enacting provisions set out as a L. Powell stated before the Committee on Foreign"