Filetype PDF | Posted on 19 Sep 2022 | 3 years ago
Authentication
digital resources
150x Filetype PDF File size 0.30 MB Source: home.treasury.gov
Federal Register/Vol. 86, No. 103/Tuesday, June 1, 2021/Rules and Regulations 29197
guidance; and taking a responding to DEPARTMENT OF THE TREASURY OFAC is issuing the Burma Sanctions
petitions about guidance. Regulations, 31 CFR part 525 (the
On January 20, 2021, President Biden Office of Foreign Assets Control ‘‘Regulations’’), to implement E.O.
issued the ‘‘Executive Order on 14014, pursuant to authorities delegated
Revocation of Certain Executive Orders 31 CFR Part 525 to the Secretary of the Treasury in E.O.
Concerning Federal Regulation’’ which, Burma Sanctions Regulations 14014. A copy of E.O. 14014 appears in
among other things, revoked E.O. 13891 appendix A to this part.
and directed agencies to promptly take AGENCY: Office of Foreign Assets The Regulations are being published
steps to rescind any orders, rules, Control, Treasury. in abbreviated form at this time for the
regulations, guidelines, or policies, or ACTION: Final rule. purpose of providing immediate
guidance to the public. OFAC intends to
portions thereof, implementing or SUMMARY: The Department of the supplement this part 525 with a more
enforcing the Executive Orders. In Treasury’s Office of Foreign Assets comprehensive set of regulations, which
accordance with E.O. 13992, FMCS is Control (OFAC) is adding regulations to may include additional interpretive and
issuing this final rule, which rescinds implement a February 10, 2021 Burma- definitional guidance, general licenses,
the rule on procedures for FMCS related Executive order. OFAC intends and other regulatory provisions. The
guidance documents published April to supplement these regulations with a appendix to the Regulations will be
20, 2020. more comprehensive set of regulations, removed when OFAC supplements this
II. Final Rule which may include additional part with a more comprehensive set of
interpretive and definitional guidance, regulations.
FMCS has determined that this rule is general licenses, and other regulatory Public Participation
suitable for final rulemaking. The provisions. Because the Regulations involve a
revisions to FMCS’ policies and DATES: This rule is effective June 1, foreign affairs function, the provisions
requirements surrounding 2021. of E.O. 12866 of September 30, 1993,
administrative guidance are purely FORFURTHERINFORMATIONCONTACT: ‘‘Regulatory Planning and Review’’ (58
internal matters of agency management, OFAC: Assistant Director for Licensing, FR 51735, October 4, 1993), and the
as well as the agency’s organization, 202–622–2480; Assistant Director for Administrative Procedure Act (5 U.S.C.
procedure, and practice. Accordingly, as Regulatory Affairs, 202–622–4855; or 553) requiring notice of proposed
with the April 20, 2020, final rule, Assistant Director for Sanctions rulemaking, opportunity for public
FMCS is not required to engage in a Compliance & Evaluation, 202–622– participation, and delay in effective date
notice and comment process to issue 2490. are inapplicable. Because no notice of
this rule under the Administrative SUPPLEMENTARYINFORMATION: proposed rulemaking is required for this
Procedures Act, See U.S.C. 553(a)(2), Electronic Availability rule, the Regulatory Flexibility Act (5
553(b)(A). Furthermore, because this U.S.C. 601–612) does not apply.
rule is procedural rather than This document and additional Paperwork Reduction Act
substantive, the normal requirement of information concerning OFAC are The collections of information related
5 U.S.C. 553(d) that a rule not be available on OFAC’s website: to the Regulations are contained in 31
effective until at least 30 days after www.treasury.gov/ofac. CFR part 501 (the ‘‘Reporting,
publication in the Federal Register is Background Procedures and Penalties Regulations’’).
inapplicable. FMCS also finds good On February 10, 2021, the President, Pursuant to the Paperwork Reduction
cause to provide an immediate effective invoking the authority of, inter alia, the Act of 1995 (44 U.S.C. 3507), those
date for this rule because it imposes no International Emergency Economic collections of information have been
obligations on parties outside the Powers Act (50 U.S.C. 1701–1706) approved by the Office of Management
federal government and therefore no (IEEPA), issued Executive Order (E.O.) and Budget under control number 1505–
advance notice is required to enable 14014 of February 10, 2021, ‘‘Blocking 0164. An agency may not conduct or
employers or other private parties to Property With Respect to the Situation sponsor, and a person is not required to
come into compliance. in Burma’’ (86 FR 9429, February 12, respond to, a collection of information
List of Subjects in 29 CFR Part 1473 2021). unless the collection of information
In E.O. 14014, the President displays a valid control number.
Administrative practice and determined that the situation in and in List of Subjects in 31 CFR Part 525
procedure, Guidance documents. relation to Burma, and in particular the Administrative practice and
February 1, 2021 coup, in which the procedure, Banks, banking, Blocking of
PART 1473—[REMOVED] military overthrew the democratically assets, Burma, Foreign trade, Penalties,
elected civilian government of Burma Reporting and recordkeeping
■ For the reasons discussed in the and unjustly arrested and detained requirements, Sanctions, Services.
preamble, and under the authority 29 government leaders, politicians, human ■ For the reasons set forth in the
U.S.C. 172 of Taft Harley Act of 1947 rights defenders, journalists, and preamble, OFAC adds part 525 to 31
and E.O. 13992, FMCS amends 29 CFR religious leaders, thereby rejecting the CFR chapter V to read as follows:
chapter XII by removing part 1473. will of the people of Burma as expressed
in elections held in November 2020 and PART 525—BURMA SANCTIONS
Issued in Washington, DC undermining the country’s democratic REGULATIONS
Sarah Cudahy, transition and rule of law, constitutes an
General Counsel. unusual and extraordinary threat to the Subpart A—Relation of This Part to Other
[FR Doc. 2021–11204 Filed 5–28–21; 8:45 am] national security and foreign policy of Laws and Regulations
the United States and declared a Sec.
BILLING CODE P national emergency to deal with that 525.101 Relation of this part to other laws
threat. and regulations.
jbell on DSKJLSW7X2PROD with RULESVerDate Sep<11>2014 16:41 May 28, 2021Jkt 253001PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\01JNR1.SGM 01JNR1
29198 Federal Register/Vol. 86, No. 103/Tuesday, June 1, 2021/Rules and Regulations
Subpart B—Prohibitions Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); pursuant to which the person’s property and
525.201 Prohibited transactions. 50 U.S.C. 1601–1651, 1701–1706; Pub. L. interests in property are blocked]].’’ The SDN
525.202 Effect of transfers violating the 101–410, 104 Stat. 890, as amended (28 List is accessible through the following page
provisions of this part. U.S.C. 2461 note); E.O. 14014, 86 FR 9429, on OFAC’s website: www.treasury.gov/sdn.
525.203 Holding of funds in interest- February 12, 2021. Additional information pertaining to the SDN
bearing accounts; investment and List can be found in appendix A to this
reinvestment. Subpart A—Relation of This Part to chapter. See §525.406 concerning entities
525.204 Expenses of maintaining blocked Other Laws and Regulations that may not be listed on the SDN List but
tangible property; liquidation of blocked whose property and interests in property are
property. §525.101 Relation of this part to other nevertheless blocked pursuant to this section.
525.205 Exempt transactions. laws and regulations.
This part is separate from, and Note 2 to §525.201. The International
Subpart C—General Definitions independent of, the other parts of this Emergency Economic Powers Act (50 U.S.C.
525.300 Applicability of definitions. chapter, with the exception of part 501 1701–1706), in Section 203 (50 U.S.C. 1702),
525.301 Blocked account; blocked property. of this chapter, the recordkeeping and authorizes the blocking of property and
525.302 Effective date. reporting requirements and license interests in property of a person during the
525.303 Entity. application and other procedures of pendency of an investigation. The names of
525.304 Financial, material, or which apply to this part. Actions taken persons whose property and interests in
technological support. property are blocked pending investigation
525.305 [Reserved] pursuant to part 501 of this chapter with pursuant to this section also are published in
525.306 Interest. respect to the prohibitions contained in the Federal Register and incorporated into
525.307 Licenses; general and specific. this part are considered actions taken the SDN List using the following identifier
525.308 OFAC. pursuant to this part. Differing foreign formulation: ‘‘[BPI–BURMA–EO[EO number
525.309 Person. policy and national security pursuant to which the person’s property and
525.310 Property; property interest. circumstances may result in differing interests in property are blocked pending
525.311 Transfer. interpretations of similar language investigation]].’’
525.312 United States. among the parts of this chapter. No
525.313 United States person; U.S. person. Note 3 to §525.201. Sections 501.806 and
525.314 U.S. financial institution. license or authorization contained in or 501.807 of this chapter describe the
Subpart D—Interpretations issued pursuant to those other parts procedures to be followed by persons
authorizes any transaction prohibited by seeking, respectively, the unblocking of
525.401 [Reserved] this part. No license or authorization funds that they believe were blocked due to
525.402 Effect of amendment. contained in or issued pursuant to any mistaken identity, or administrative
525.403 Termination and acquisition of an other provision of law or regulation reconsideration of their status as persons
interest in blocked property. authorizes any transaction prohibited by whose property and interests in property are
525.404 Transactions ordinarily incident to this part. No license or authorization blocked pursuant to this section.
a licensed transaction.
525.405 Setoffs prohibited. contained in or issued pursuant to this §525.202 Effect of transfers violating the
525.406 Entities owned by one or more part relieves the involved parties from provisions of this part.
persons whose property and interests in complying with any other applicable (a) Any transfer after the effective date
property are blocked. laws or regulations. that is in violation of any provision of
Subpart E—Licenses, Authorizations, and Note 1 to §525.101. This part has been this part or of any regulation, order,
Statements of Licensing Policy published in abbreviated form for the directive, ruling, instruction, or license
525.501 General and specific licensing purpose of providing immediate guidance to issued pursuant to this part, and that
procedures. the public. OFAC intends to supplement this involves any property or interest in
525.502 [Reserved] part with a more comprehensive set of property blocked pursuant to §525.201,
525.503 Exclusion from licenses. regulations, which may include additional is null and void and shall not be the
525.504 Payments and transfers to blocked interpretive and definitional guidance, basis for the assertion or recognition of
accounts in U.S. financial institutions. general licenses, and other regulatory
525.505 Entries in certain accounts for provisions. any interest in or right, remedy, power,
normal service charges. or privilege with respect to such
525.506 Provision of certain legal services. Subpart B—Prohibitions property or interest in property.
525.507 Payments for legal services from (b) No transfer before the effective
funds originating outside the United §525.201 Prohibited transactions. date shall be the basis for the assertion
States. All transactions prohibited pursuant or recognition of any right, remedy,
525.508 Emergency medical services. to Executive Order (E.O.) 14014 of power, or privilege with respect to, or
525.509 Official business of the United February 10, 2021, or any further any interest in, any property or interest
States Government. Executive orders issued pursuant to the in property blocked pursuant to
Subpart F—Reports national emergency declared in E.O. §525.201, unless the person who holds
525.601 Records and reports. 14014, are prohibited pursuant to this or maintains such property, prior to that
Subpart G—Penalties and Findings of part. date, had written notice of the transfer
Violation Note 1 to §525.201. The names of persons or by any written evidence had
525.701 Penalties and Findings of designated or identified as blocked pursuant recognized such transfer.
Violation. to E.O. 14014, or listed in, or designated or (c) Unless otherwise provided, a
Subpart H—Procedures identified as blocked pursuant to, any further license or other authorization issued by
Executive orders issued pursuant to the OFAC before, during, or after a transfer
525.801 Procedures. national emergency declared therein, whose shall validate such transfer or make it
525.802 Delegation of certain authorities of property and interests in property therefore enforceable to the same extent that it
the Secretary of the Treasury. are blocked pursuant to this section, are would be valid or enforceable but for
Subpart I—Paperwork Reduction Act published in the Federal Register and the provisions of this part and any
incorporated into OFAC’s Specially regulation, order, directive, ruling,
525.901 Paperwork Reduction Act notice. Designated Nationals and Blocked Persons instruction, or license issued pursuant
Appendix A to Part 525—Executive Order List (SDN List) using the following identifier
14014 of February 10, 2021 formulation: ‘‘[BURMA–EO[EO number to this part.
jbell on DSKJLSW7X2PROD with RULESVerDate Sep<11>2014 16:41 May 28, 2021Jkt 253001PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\01JNR1.SGM 01JNR1
Federal Register/Vol. 86, No. 103/Tuesday, June 1, 2021/Rules and Regulations 29199
(d) Transfers of property that financial obligations, subject to other attempted use as collateral of
otherwise would be null and void or §525.201 shall hold or place such funds blocked funds or other assets.
unenforceable by virtue of the in a blocked interest-bearing account §525.204 Expenses of maintaining
provisions of this section shall not be located in the United States. blocked tangible property; liquidation of
deemed to be null and void or (b)(1) For the purposes of this section, blocked property.
unenforceable as to any person with the term blocked interest-bearing (a) Except as otherwise authorized,
whom such property is or was held or account means a blocked account: and notwithstanding the existence of
maintained (and as to such person only) (i) In a federally insured U.S. bank, any rights or obligations conferred or
in cases in which such person is able to thrift institution, or credit union, imposed by any international agreement
establish to the satisfaction of OFAC provided the funds are earning interest or contract entered into or any license
each of the following: at rates that are commercially or permit granted prior to the effective
(1) Such transfer did not represent a reasonable; or date, all expenses incident to the
willful violation of the provisions of this (ii) With a broker or dealer registered maintenance of tangible property
part by the person with whom such with the Securities and Exchange blocked pursuant to §525.201 shall be
property is or was held or maintained Commission under the Securities the responsibility of the owners or
(and as to such person only); Exchange Act of 1934 (15 U.S.C. 78a et operators of such property, which
(2) The person with whom such seq.), provided the funds are invested in expenses shall not be met from blocked
property is or was held or maintained a money market fund or in U.S. funds.
did not have reasonable cause to know Treasury bills. (b) Property blocked pursuant to
or suspect, in view of all the facts and (2) Funds held or placed in a blocked §525.201 may, in the discretion of
circumstances known or available to account pursuant to paragraph (a) of this OFAC, be sold or liquidated and the net
such person, that such transfer required section may not be invested in proceeds placed in a blocked interest-
a license or authorization issued instruments the maturity of which bearing account in the name of the
pursuant to this part and was not so exceeds 180 days. owner of the property.
licensed or authorized, or, if a license or (c) For the purposes of this section, a
authorization did purport to cover the rate is commercially reasonable if it is §525.205 Exempt transactions.
transfer, that such license or the rate currently offered to other The prohibitions contained in this
authorization had been obtained by depositors on deposits or instruments of part do not apply to any postal,
misrepresentation of a third party or comparable size and maturity. telegraphic, telephonic, or other
withholding of material facts or was (d) For the purposes of this section, if personal communication that does not
otherwise fraudulently obtained; and interest is credited to a separate blocked involve the transfer of anything of value.
(3) The person with whom such account or subaccount, the name of the
property is or was held or maintained account party on each account must be Subpart C—General Definitions
filed with OFAC a report setting forth in the same.
full the circumstances relating to such (e) Blocked funds held in instruments §525.300 Applicability of definitions.
transfer promptly upon discovery that: the maturity of which exceeds 180 days The definitions in this subpart apply
(i) Such transfer was in violation of at the time the funds become subject to throughout the entire part.
the provisions of this part or any §525.201 may continue to be held until §525.301 Blocked account; blocked
regulation, ruling, instruction, license, maturity in the original instrument, property.
or other directive or authorization provided any interest, earnings, or other The terms blocked account and
issued pursuant to this part; proceeds derived therefrom are paid blocked property mean any account or
(ii) Such transfer was not licensed or into a blocked interest-bearing account property subject to the prohibitions in
authorized by OFAC; or in accordance with paragraph (a) or (f) §525.201 held in the name of a person
(iii) If a license did purport to cover of this section. whose property and interests in
the transfer, such license had been (f) Blocked funds held in accounts or property are blocked pursuant to
obtained by misrepresentation of a third instruments outside the United States at §525.201, or in which such person has
party or withholding of material facts or the time the funds become subject to an interest, and with respect to which
was otherwise fraudulently obtained. §525.201 may continue to be held in the payments, transfers, exportations,
(e) The filing of a report in accordance same type of accounts or instruments, withdrawals, or other dealings may not
with the provisions of paragraph (d)(3) provided the funds earn interest at rates be made or effected except pursuant to
of this section shall not be deemed that are commercially reasonable. a license or other authorization from
evidence that the terms of paragraphs (g) This section does not create an OFAC expressly authorizing such
(d)(1) and (2) of this section have been affirmative obligation for the holder of action.
satisfied. blocked tangible property, such as real
(f) Unless licensed pursuant to this or personal property, or of other blocked Note 1 to §525.301. See §525.406
part, any attachment, judgment, decree, property, such as debt or equity concerning the blocked status of property
lien, execution, garnishment, or other securities, to sell or liquidate such and interests in property of an entity that is
judicial process is null and void with property. However, OFAC may issue directly or indirectly owned, whether
respect to any property or interest in individually or in the aggregate, 50 percent
property blocked pursuant to §525.201. licenses permitting or directing such or more by one or more persons whose
sales or liquidation in appropriate cases. property and interests in property are
§525.203 Holding of funds in interest- (h) Funds subject to this section may blocked pursuant to §525.201.
bearing accounts; investment and not be held, invested, or reinvested in
reinvestment. a manner that provides financial or §525.302 Effective date.
(a) Except as provided in paragraph economic benefit or access to any (a) The term effective date refers to
(e) or (f) of this section, or as otherwise person whose property and interests in the effective date of the applicable
directed or authorized by OFAC, any property are blocked pursuant to prohibitions and directives contained in
U.S. person holding funds, such as §525.201, nor may their holder this part, and with respect to a person
currency, bank deposits, or liquidated cooperate in or facilitate the pledging or whose property and interests in
jbell on DSKJLSW7X2PROD with RULESVerDate Sep<11>2014 16:41 May 28, 2021Jkt 253001PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 E:\FR\FM\01JNR1.SGM 01JNR1
29200 Federal Register/Vol. 86, No. 103/Tuesday, June 1, 2021/Rules and Regulations
property are blocked pursuant to §525.308 OFAC. attachment, injunction, execution, or
§525.201, the earlier of the date of The term OFAC means the other judicial or administrative process
actual or constructive notice that such Department of the Treasury’s Office of or order, or the service of any
person’s property and interests in Foreign Assets Control. garnishment; the acquisition of any
property are blocked. §525.309 Person. interest of any nature whatsoever by
(b) For the purposes of this section, reason of a judgment or decree of any
constructive notice is the date that a The term person means an individual foreign country; the fulfillment of any
notice of the blocking of the relevant or entity. condition; the exercise of any power of
person’s property and interests in §525.310 Property; property interest. appointment, power of attorney, or
property is published in the Federal The terms property and property other power; or the acquisition,
Register. interest include money, checks, drafts, disposition, transportation, importation,
§525.303 Entity. bullion, bank deposits, savings exportation, or withdrawal of any
The term entity means a partnership, accounts, debts, indebtedness, security.
association, trust, joint venture, obligations, notes, guarantees, §525.312 United States.
corporation, group, subgroup, or other debentures, stocks, bonds, coupons, any The term United States means the
organization. other financial instruments, bankers United States, its territories and
acceptances, mortgages, pledges, liens possessions, and all areas under the
§525.304 Financial, material, or or other rights in the nature of security, jurisdiction or authority thereof.
technological support. warehouse receipts, bills of lading, trust
The term financial, material, or receipts, bills of sale, any other §525.313 United States person; U.S.
technological support means any evidences of title, ownership, or person.
property, tangible or intangible, indebtedness, letters of credit and any The term United States person or U.S.
including currency, financial documents relating to any rights or person means any United States citizen,
instruments, securities, or any other obligations thereunder, powers of permanent resident alien, entity
transmission of value; weapons or attorney, goods, wares, merchandise, organized under the laws of the United
related materiel; chemical or biological chattels, stocks on hand, ships, goods on States or any jurisdiction within the
agents; explosives; false documentation ships, real estate mortgages, deeds of United States (including foreign
or identification; communications trust, vendors’ sales agreements, land branches), or any person in the United
equipment; computers; electronic or contracts, leaseholds, ground rents, real States.
other devices or equipment; estate and any other interest therein, §525.314 U.S. financial institution.
technologies; lodging; safe houses; options, negotiable instruments, trade
facilities; vehicles or other means of acceptances, royalties, book accounts, The term U.S. financial institution
transportation; or goods. accounts payable, judgments, patents, means any U.S. entity (including its
‘‘Technologies’’ as used in this section trademarks or copyrights, insurance foreign branches) that is engaged in the
means specific information necessary policies, safe deposit boxes and their business of accepting deposits, making,
for the development, production, or use contents, annuities, pooling agreements, granting, transferring, holding, or
of a product, including related technical services of any nature whatsoever, brokering loans or other extensions of
data such as blueprints, plans, diagrams, contracts of any nature whatsoever, and credit, or purchasing or selling foreign
models, formulae, tables, engineering any other property, real, personal, or exchange, securities, commodity futures
designs and specifications, manuals, or mixed, tangible or intangible, or interest or options, or procuring purchasers and
other recorded instructions. or interests therein, present, future, or sellers thereof, as principal or agent. It
contingent. includes depository institutions, banks,
§525.305 [Reserved] savings banks, trust companies,
§525.306 Interest. §525.311 Transfer. securities brokers and dealers, futures
Except as otherwise provided in this The term transfer means any actual or and options brokers and dealers,
part, the term interest, when used with purported act or transaction, whether or forward contract and foreign exchange
respect to property (e.g., ‘‘an interest in not evidenced by writing, and whether merchants, securities and commodities
property’’), means an interest of any or not done or performed within the exchanges, clearing corporations,
nature whatsoever, direct or indirect. United States, the purpose, intent, or investment companies, employee
effect of which is to create, surrender, benefit plans, and U.S. holding
§525.307 Licenses; general and specific. release, convey, transfer, or alter, companies, U.S. affiliates, or U.S.
(a) Except as otherwise provided in directly or indirectly, any right, remedy, subsidiaries of any of the foregoing. This
this part, the term license means any power, privilege, or interest with respect term includes those branches, offices,
license or authorization contained in or to any property. Without limitation on and agencies of foreign financial
issued pursuant to this part. the foregoing, it shall include the institutions that are located in the
(b) The term general license means making, execution, or delivery of any United States, but not such institutions’
any license or authorization the terms of assignment, power, conveyance, check, foreign branches, offices, or agencies.
which are set forth in subpart E of this declaration, deed, deed of trust, power Subpart D—Interpretations
part or made available on OFAC’s of attorney, power of appointment, bill
website: www.treasury.gov/ofac. of sale, mortgage, receipt, agreement, §525.401 [Reserved]
(c) The term specific license means contract, certificate, gift, sale, affidavit,
any license or authorization issued or statement; the making of any §525.402 Effect of amendment.
pursuant to this part but not set forth in payment; the setting off of any Unless otherwise specifically
subpart E of this part or made available obligation or credit; the appointment of provided, any amendment,
on OFAC’s website: www.treasury.gov/ any agent, trustee, or fiduciary; the modification, or revocation of any
ofac. creation or transfer of any lien; the provision in or appendix to this part or
Note 1 to §525.307. See §501.801 of this issuance, docketing, filing, or levy of or chapter or of any order, regulation,
chapter on licensing procedures. under any judgment, decree, ruling, instruction, or license issued by
jbell on DSKJLSW7X2PROD with RULESVerDate Sep<11>2014 16:41 May 28, 2021Jkt 253001PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 E:\FR\FM\01JNR1.SGM 01JNR1
no reviews yet
Please Login to review.
