Iranian Financial Sanctions Regulations, 11724-11735 [2012-4472]

Agencies

• DEPARTMENT OF THE TREASURY

[Federal Register Volume 77, Number 38 (Monday, February 27, 2012)]
[Rules and Regulations]
[Pages 11724-11735]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4472]



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Vol. 77

Monday,

No. 38

February 27, 2012

Part IV





Department of the Treasury





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Office of Foreign Assets Control





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31 CFR Part 561





Iranian Financial Sanctions Regulations; Final Rule

Federal Register / Vol. 77 , No. 38 / Monday, February 27, 2012 / 
Rules and Regulations

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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 561


Iranian Financial Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (``OFAC'') is amending the Iranian Financial Sanctions 
Regulations and reissuing them in their entirety, in order to implement 
section 1245(d) of the National Defense Authorization Act for Fiscal 
Year 2012, which provides for the imposition of sanctions with respect 
to the Central Bank of Iran and designated Iranian financial 
institutions.

DATES: Effective Date: February 27, 2012.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Sanctions 
Compliance & Evaluation, tel.: 202/622-2490, Assistant Director for 
Licensing, tel.: 202/622-2480, Assistant Director for Policy, tel.: 
202/622-4855, Office of Foreign Assets Control, or Chief Counsel 
(Foreign Assets Control), tel.: 202/622-2410, Office of the General 
Counsel, Department of the Treasury (not toll free numbers).

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treas.gov/ofac). Certain general 
information pertaining to OFAC's sanctions programs also is available 
via facsimile through a 24-hour fax-on-demand service, tel.: 202/622-
0077.

Background

    On July 1, 2010, the President signed into law the Comprehensive 
Iran Sanctions, Accountability, and Divestment Act of 2010 (Pub. L. 
111-195) (22 U.S.C. 8501-8551) (``CISADA''). Subsection 104(c) of 
CISADA required the Secretary of the Treasury, not later than 90 days 
after the date of CISADA's enactment, to prescribe regulations to 
prohibit, or impose strict conditions on, the opening or maintaining in 
the United States of a correspondent account or a payable-through 
account for a foreign financial institution that the Secretary finds 
knowingly engages in specified sanctionable activities, subject to 
certain waiver authorities provided to the Secretary in subsection 
104(f) of CISADA. Subsection 104(d) of CISADA required the Secretary of 
the Treasury, not later than 90 days after the date of CISADA's 
enactment, to prescribe regulations to prohibit any person owned or 
controlled by a U.S. financial institution from knowingly engaging in 
transactions with or benefitting Iran's Islamic Revolutionary Guard 
Corps (``IRGC'') or any of its agents or affiliates whose property and 
interests in property are blocked pursuant to the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (``IEEPA''). On 
August 16, 2010, the Department of the Treasury's Office of Foreign 
Assets Control (``OFAC'') published the Iranian Financial Sanctions 
Regulations, 31 CFR Part 561 (the ``IFSR''), to implement subsections 
104(c) and (d) and other related provisions of CISADA (75 FR 49836).
    On September 28, 2010, the President issued Executive Order 13553 
(75 FR 60567, October 1, 2010) (``E.O. 13553''), invoking the authority 
of, inter alia, IEEPA and CISADA, and in order to take additional steps 
with respect to the national emergency declared in Executive Order 
12957 of March 15, 1995, with respect to Iran.
    Section 8 of E.O. 13553 authorizes the Secretary of the Treasury, 
in consultation with the Secretary of State, 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 section 104 of CISADA. In addition, section 8 of E.O. 13553 
authorizes the Secretary of the Treasury to redelegate these functions 
to other officers and agencies of the United States Government 
consistent with applicable law. E.O. 13553 thereby provided IEEPA 
authority for the IFSR.
    On December 31, 2011, the President signed into law the National 
Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81) 
(``NDAA''). Section 1245(d)(1) of the NDAA requires the President to 
prohibit the opening, and prohibit or impose strict conditions on the 
maintaining, in the United States of a correspondent account or a 
payable-through account by a foreign financial institution that the 
President determines has knowingly conducted or facilitated any 
significant financial transaction with the Central Bank of Iran or 
another Iranian financial institution designated by the Secretary of 
the Treasury pursuant to IEEPA. Pursuant to section 1245(d)(2), a 
foreign financial institution conducting or facilitating a transaction 
for the sale of food, medicine, or medical devices to Iran will not be 
subject to sanctions under the NDAA for such transactions.
    For a private foreign financial institution, section 1245(d)(1) of 
the NDAA calls for sanctions beginning 60 days after the date of 
enactment of the NDAA for transactions other than those for the 
purchase of petroleum or petroleum products from Iran. For transactions 
by a private foreign financial institution for the purchase of 
petroleum or petroleum products from Iran, section 1245(d)(4)(C) calls 
for sanctions pursuant to section 1245(d)(1) beginning 180 days after 
the date of enactment of the NDAA (or later, as further described 
below). For a foreign financial institution owned or controlled by the 
government of a foreign country, including the central bank of a 
foreign country, section 1245(d)(3) calls for sanctions pursuant to 
section 1245(d)(1) beginning 180 days after the date of enactment of 
the NDAA (or later, as further described below) and only for 
transactions for the sale or purchase of petroleum or petroleum 
products to or from Iran.
    For all foreign financial institutions, section 1245(d)(4)(C) of 
the NDAA provides that the sanctions in section 1245(d)(1) shall apply 
for transactions for the purchase of petroleum or petroleum products 
from Iran only if the President makes required periodic determinations 
that there is sufficient supply of petroleum and petroleum products 
from countries other than Iran to permit a significant reduction in the 
volume of petroleum and petroleum products purchased from Iran by or 
through foreign financial institutions.
    Section 1245(d)(4)(D) of the NDAA provides for an exception to the 
imposition of sanctions on any foreign financial institution if the 
President determines and periodically reports to Congress that the 
country with primary jurisdiction over that foreign financial 
institution has significantly reduced its volume of crude oil purchases 
from Iran during a specified period of time preceding the report.
    Pursuant to section 1245(d)(5) of the NDAA, the President may waive 
the imposition of sanctions in section 1245(d)(1) for a period of not 
more than 120 days, and may renew that waiver for additional periods of 
not more than 120 days, provided the President determines that such a 
waiver is in the national security interest of the United States and 
submits a report to Congress providing justification for the waiver and 
that includes any concrete cooperation that the President has received 
or expects to receive as a result of the waiver.
    Finally, section 1245(g) of the NDAA provides that the President 
may exercise all authorities under sections 203 and

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205 of IEEPA and may impose the penalties provided in section 206(b) 
and (c) of IEEPA to implement and enforce section 1245 of the NDAA.
    Section 1245(d) of the NDAA does not repeal or amend section 104(c) 
of CISADA. Though section 1245(d) of the NDAA imposes sanctions on 
foreign financial institutions similar to the financial sanctions under 
CISADA and the IFSR prior to this regulatory amendment (i.e., 
prohibiting and/or imposing strict conditions on opening or maintaining 
correspondent accounts or payable-through accounts in the United 
States), there are differences in the underlying financial transactions 
that serve as the trigger for the imposition of sanctions. Therefore, 
section 1245(d) of the NDAA and section 104(c) of CISADA, as 
implemented, respectively, by new Sec.  561.203 and by Sec.  561.201 of 
the IFSR, are separate from, and independent of, each other.
    On February 5, 2012, the President, invoking the authority of, 
inter alia, IEEPA and section 1245 of the NDAA, issued Executive Order 
13599 (``Blocking Property of the Government of Iran and Iranian 
Financial Institutions'') (``E.O. 13599''), in order to take additional 
steps with respect to the national emergency declared in Executive 
Order 12957 of March 15, 1995, with respect to Iran, particularly in 
light of the deceptive practices of the Central Bank of Iran and other 
Iranian banks to conceal transactions of sanctioned parties, the 
deficiencies in Iran's anti-money laundering regime and the weaknesses 
in its implementation, and the continuing and unacceptable risk posed 
to the international financial system by Iran's activities.
    Section 1 of E.O. 13599 blocks all property and interests in 
property that are in the United States, that come within the United 
States, or that are or come within the possession or control of any 
United States person, including any overseas branch, of the Government 
of Iran (including the Central Bank of Iran), any Iranian financial 
institution, and any person determined by the Secretary of the 
Treasury, in consultation with the Secretary of State, 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. 13599. The property and interests 
in property of the persons described above may not be transferred, 
paid, exported, withdrawn, or otherwise dealt in.
    In addition, Section 10 of E.O. 13599 delegates to the Secretary of 
the Treasury, in consultation with the Secretary of State, the 
authority to exercise the relevant functions and authorities conferred 
upon the President by sections 1245(d)(1)(A) and (g)(1) of the NDAA.
    Today, OFAC is amending the IFSR to accomplish several purposes. 
First, OFAC is amending the IFSR to implement section 1245(d) and other 
related provisions of section 1245 of the NDAA. Section 561.203 of the 
IFSR adds the prohibitions and exceptions set forth in section 1245(d) 
of the NDAA. Sections 561.318 through 561.327 of the IFSR define new 
key terms used in Sec.  561.203 of the IFSR, and Sec. Sec.  561.406 and 
561.407 of the IFSR contain new interpretive provisions regarding Sec.  
561.203 of the IFSR. In particular, Sec. Sec.  561.318 and 561.319 of 
the IFSR define the terms petroleum and petroleum products, and Sec.  
561.327 of the IFSR defines the term food, medicine, and medical 
devices. Section 561.406 of the IFSR provides an interpretation of the 
phrase country with primary jurisdiction over the foreign financial 
institution for purposes of Sec.  561.203 of the IFSR. An amended Sec.  
561.404 of the IFSR sets forth the types of factors that, as a general 
matter, the Secretary of the Treasury will consider in determining 
whether a transaction is significant, for purposes of both Sec. Sec.  
561.201 and 561.203 of the IFSR.
    Second, to implement section 8 of E.O. 13553, OFAC is adding IEEPA 
to the authority citation for the IFSR. As a related change, OFAC is 
amending Sec.  561.802 of the IFSR to add a delegation of IEEPA 
authorities to the Director of OFAC or any other person to whom the 
Secretary of the Treasury has delegated authority to act. With the 
amendments to the authority citation and Sec.  561.802 of the IFSR, 
OFAC is clarifying that it may exercise the same IEEPA authorities that 
are used in OFAC's other IEEPA-based sanctions programs--in addition to 
authorities under section 104 of CISADA--to investigate, regulate, or 
prohibit transactions under the IFSR.
    Third, OFAC is amending Sec.  561.201 of the IFSR to remove 
references to Appendix A to Part 561 throughout the section. Section 
561.201 provided that if, upon a finding by the Secretary of the 
Treasury that a foreign financial institution knowingly engaged in one 
or more of the sanctionable activities set forth in paragraph (a) of 
Sec.  561.201, the Secretary decided to prohibit a U.S. financial 
institution from opening or maintaining a correspondent account or a 
payable-through account in the United States for that foreign financial 
institution, the name of that foreign financial institution would be 
added to Appendix A to Part 561. Today's amendment removes the 
references to Appendix A throughout Sec.  561.201 and instead provides 
that the names of the foreign financial institutions sanctioned under 
either Sec.  561.201 or Sec.  561.203 will be added to the List of 
Foreign Financial Institutions Subject to Part 561 (the ``Part 561 
List''), which is a new list to be maintained on the Office of Foreign 
Assets Control's Web site (www.treasury.gov/ofac) on its Iran Sanctions 
page, and published in the Federal Register. This list also will state 
the prohibition or strict condition(s) that apply with respect to each 
sanctioned foreign financial institution. In addition, OFAC is making 
conforming amendments to Sec.  561.504 of the IFSR to remove references 
to Appendix A throughout the section and substitute therefor references 
to the Part 561 List on OFAC's Web site, as described below. In a final 
related amendment, OFAC is removing Appendix A to Part 561, which had 
been reserved.
    Fourth, OFAC is amending the IFSR to add a reporting requirement to 
the general license in Sec.  561.504, which authorizes transactions 
related to closing a correspondent account or a payable-through account 
for a foreign financial institution. OFAC is also amending Sec.  
561.504 to make the general license and reporting requirement 
applicable when correspondent accounts or payable-through accounts for 
a foreign financial institution are required to be closed pursuant to 
new Sec.  561.203, as well as Sec.  561.201. As set forth in amended 
Sec.  561.201 and new Sec.  561.203 of the IFSR, if the Secretary of 
the Treasury decides to prohibit the opening or maintaining of 
correspondent accounts or payable-through accounts in the United States 
for a foreign financial institution, the name of the foreign financial 
institution will be added to the Part 561 List. Amended paragraph (a) 
of Sec.  561.504 authorizes transactions related to closing a 
correspondent account or a payable-through account for a foreign 
financial institution whose name is added to the Part 561 List during 
the 10-day period beginning on the effective date of the prohibition in 
Sec.  561.201(c) or Sec.  561.203(c). Under new paragraph (b) of Sec.  
561.504, a U.S. financial institution that maintained a correspondent 
account or a payable-through account for a foreign financial 
institution whose name is added to the Part 561 List on OFAC's Web site 
must file a report with OFAC that provides full details on the closing 
of each such account within 30 days of the closure of the account. The

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report must include complete information on all transactions processed 
or executed in winding down and closing the account. Former paragraphs 
(b) and (c) of Sec.  561.504 are being redesignated as paragraphs (c) 
and (d), respectively.
    In connection with the new reporting requirement in Sec.  
561.504(b), OFAC also is amending Sec.  561.901 of the IFSR to add a 
statement that the information collection in Sec.  561.504(b) has been 
approved by the Office of Management and Budget (``OMB'') and assigned 
control number 1505-0243 (see discussion under Paperwork Reduction Act, 
below).
    Finally, OFAC is amending Sec. Sec.  561.702(b)(3) and 561.802 of 
the IFSR to make technical changes or corrections.

Public Participation and Paperwork Reduction Act

    Because the IFSR involve a foreign affairs function, the provisions 
of Executive Order 12866 and the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, opportunity for public 
participation, and delay in effective date are inapplicable. Because no 
notice of proposed rulemaking is required for this rule, the Regulatory 
Flexibility Act (5 U.S.C. 601-612) does not apply.
    With respect to section 2 (44 U.S.C. 3507) of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the collection of 
information in Sec.  561.601 of the IFSR is made pursuant to OFAC's 
Reporting, Procedures and Penalties Regulations, 31 CFR part 501, and 
has been approved by OMB under control number 1505-0164. See 31 CFR 
501.901. The collection of information in Sec.  561.504(b) of the IFSR 
has been submitted to and approved by OMB pending public comment and 
has been assigned OMB control number 1505-0243. Section 561.504(b) 
specifies that a U.S. financial institution that maintained a 
correspondent account or payable-through account for a foreign 
financial institution listed on the Part 561 List on OFAC's Web site 
(www.treasury.gov/ofac) must file a report with OFAC that provides full 
details on the closing of each such account within 30 days of the 
closure of the account. This collection of information assists in 
verifying that U.S. financial institutions are complying with 
prohibitions on maintaining correspondent accounts or payable-through 
accounts for foreign financial institutions listed on the Part 561 
List, and the information collected will be used to further OFAC's 
compliance and enforcement functions.
    With respect to all of the foregoing collections of information, an 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information, unless the collection of 
information displays a valid control number.
    The likely respondents and recordkeepers affected by the new 
collection of information in Sec.  561.504(b) are U.S. financial 
institutions operating correspondent accounts or payable-through 
accounts for foreign financial institutions. Because this is a new 
collection of information, OFAC cannot predict the response rate for 
the Sec.  561.504(b) reporting requirement at this time. For future 
submissions, OFAC will report retrospectively on the response rate 
during the previous reporting period.
    The estimated average reporting/recordkeeping burden is 2 hours per 
response.
    Comments are invited on: (a) Whether this collection of information 
is necessary for the proper performance of the functions of the agency, 
including whether the information has practical utility; (b) the 
accuracy of the agency's estimate of the burden of the collection of 
information; (c) ways to enhance the quality, utility, and clarity of 
the information to be collected; (d) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques and other forms of information 
technology; and (e) the estimated capital or start-up costs of the 
operation, maintenance, and/or purchase of services to provide 
information.
    Comments concerning the above information and the accuracy of these 
burden estimates, and suggestions for reducing this burden, should be 
directed to OMB, Attention: Desk Officer for the Department of the 
Treasury, Office of Information and Regulatory Affairs, Washington, DC 
20503, with a copy to Chief of Records, Attention: Request for 
Comments, Office of Foreign Assets Control, Department of the Treasury, 
1500 Pennsylvania Avenue NW., Washington, DC 20220. Any such comments 
should be submitted not later than April 27, 2012. All comments on the 
collection of information in Sec.  561.504(b) will be a matter of 
public record.

List of Subjects in 31 CFR Part 561

    Administrative practice and procedure, Banks, Banking, Brokers, 
Foreign trade, Investments, Loans, Securities, Iran.
    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control is revising part 561 of 31 
CFR chapter V to read as follows:

PART 561--IRANIAN FINANCIAL SANCTIONS REGULATIONS

Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
561.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
561.201 CISADA-based sanctions on certain foreign financial 
institutions.
561.202 Prohibitions on persons owned or controlled by U.S. 
financial institutions.
561.203 NDAA-based sanctions on certain foreign financial 
institutions.
Subpart C--General Definitions
561.301 Effective date.
561.302 UNSC Resolution 1737.
561.303 UNSC Resolution 1747.
561.304 UNSC Resolution 1803.
561.305 UNSC Resolution 1929.
561.306 Correspondent account.
561.307 Payable-through account.
561.308 Foreign financial institution.
561.309 U.S. financial institution.
561.310 Money laundering.
561.311 Agent.
561.312 Act of international terrorism.
561.313 Financial services.
561.314 Knowingly.
561.315 Person.
561.316 Entity.
561.317 Money service businesses.
561.318 Petroleum.
561.319 Petroleum products.
561.320 Iranian financial institution.
561.321 Government of Iran.
561.322 Entity owned or controlled by the Government of Iran.
561.323 Foreign financial institution owned or controlled by the 
government of a foreign country.
561.324 Designated Iranian financial institution.
561.325 Financial transaction.
561.326 Privately owned foreign financial institution.
561.327 Food, medicine, and medical devices.
Subpart D--Interpretations
561.401 Reference to amended sections.
561.402 Effect of amendment.
561.403 Facilitation of certain efforts, activities, or transactions 
by foreign financial institutions.
561.404 Significant transaction or transactions; significant 
financial services; significant financial transaction.
561.405 Entities owned by a person whose property and interests in 
property are blocked.
561.406 Country with primary jurisdiction over the foreign financial 
institution.
561.407 Conducting or facilitating a financial transaction with the 
Central Bank of Iran or a designated Iranian financial institution.

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Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
561.501 General and specific licensing procedures.
561.502 Effect of license or authorization.
561.503 Exclusion from licenses.
561.504 Transactions related to closing a correspondent account or 
payable-through account.
Subpart F--Reports
561.601 Records and reports.
Subpart G--Penalties
561.701 Penalties.
561.702 Pre-Penalty Notice; settlement.
561.703 Penalty imposition.
561.704 Administrative collection; referral to United States 
Department of Justice.
Subpart H--Procedures
561.801 Procedures.
561.802 Delegation by the Secretary of the Treasury.
561.803 Consultations.
Subpart I--Paperwork Reduction Act
561.901 Paperwork Reduction Act notice.

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-
195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 
1298; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 
13553, 75 FR 60567, 3 CFR, 2010 Comp., p. 253; E.O. 13599, 77 FR 
6659, February 8, 2012.

Subpart A--Relation of This Part to Other Laws and Regulations


Sec.  561.101  Relation of this part to other laws and regulations.

    This part is separate from, and independent of, the other parts of 
this chapter, with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. Actions taken pursuant to 
part 501 of this chapter with respect to the prohibitions contained in 
this part or the conditions imposed pursuant to this part are 
considered actions taken pursuant to this part. Differing foreign 
policy and national security circumstances may result in differing 
interpretations of similar language among the parts of this chapter. No 
license or authorization contained in or issued pursuant to those other 
parts authorizes any transaction prohibited by this part. No license or 
authorization contained in or issued pursuant to any other provision of 
law or regulation authorizes any transaction prohibited by this part. 
No license or authorization contained in or issued pursuant to this 
part relieves the involved parties from complying with any other 
applicable laws or regulations.

Subpart B--Prohibitions


Sec.  561.201  CISADA-based sanctions on certain foreign financial 
institutions.

    Upon a finding by the Secretary of the Treasury that a foreign 
financial institution knowingly engages in one or more of the 
activities described in paragraphs (a)(1) through (5) of this section, 
consistent with the Secretary of the Treasury's authorities under the 
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010 (Pub. L. 111-195) (22 U.S.C. 8501-8551) (``CISADA''), either the 
Secretary of the Treasury will impose one or more strict conditions, as 
set forth in paragraph (b) of this section, on the opening or 
maintaining of a correspondent account or a payable-through account in 
the United States for that foreign financial institution, or, as set 
forth in paragraph (c) of this section, the Secretary of the Treasury 
will prohibit a U.S. financial institution from opening or maintaining 
a correspondent account or a payable-through account in the United 
States for that foreign financial institution. The name of the foreign 
financial institution and the relevant prohibition or strict 
condition(s) will be added to the List of Foreign Financial 
Institutions Subject to Part 561 (the ``Part 561 List'') on the Office 
of Foreign Assets Control's Web site (www.treasury.gov/ofac) on the 
Iran Sanctions page and published in the Federal Register.
    (a) A foreign financial institution engages in an activity 
described in this paragraph if, in any location or currency, the 
foreign financial institution knowingly:
    (1) Facilitates the efforts of the Government of Iran (including 
efforts of Iran's Islamic Revolutionary Guard Corps or any of its 
agents or affiliates)--
    (i) To acquire or develop weapons of mass destruction or delivery 
systems for weapons of mass destruction; or
    (ii) To provide support for organizations designated as foreign 
terrorist organizations under section 219(a) of the Immigration and 
Nationality Act (8 U.S.C. 1189(a)) or support for acts of international 
terrorism, as defined in Sec.  561.312 of this part;
    (2) Facilitates the activities of a person subject to financial 
sanctions pursuant to United Nations Security Council Resolutions 1737, 
1747, 1803, or 1929, or any other resolution adopted by the Security 
Council that imposes sanctions with respect to Iran;

    Note to paragraph (a)(2) of Sec.  561.201:  Persons subject to 
financial sanctions pursuant to the United Nations Security Council 
resolutions listed in Sec.  561.201(a)(2) include individuals and 
entities listed in the Annex to UNSC Resolution 1737, Annex I of 
UNSC Resolution 1747, Annexes I and III of UNSC Resolution 1803, and 
Annexes I, II, and III of UNSC Resolution 1929; and individuals and 
entities designated by the Security Council or by the Committee 
established pursuant to UNSC Resolution 1737 (the ``Committee'') as 
being engaged in, directly associated with or providing support for 
Iran's proliferation sensitive nuclear activities, or the 
development of nuclear weapon delivery systems; and individuals and 
entities acting on behalf of or at the direction of those so listed 
or designated; and entities owned or controlled by those so listed 
or designated; and individuals and entities determined by the 
Security Council or the Committee to have assisted listed or 
designated individuals or entities in evading sanctions of, or in 
violating the provisions of, UNSC Resolutions 1737, 1747, 1803, or 
1929.

    (3) Engages in money laundering to carry out an activity described 
in paragraphs (a)(1) or (2) of this section;
    (4) Facilitates efforts by the Central Bank of Iran or any other 
Iranian financial institution to carry out an activity described in 
paragraphs (a)(1) or (2) of this section; or
    (5) Facilitates a significant transaction or transactions or 
provides significant financial services for--
    (i) Iran's Islamic Revolutionary Guard Corps or any of its agents 
or affiliates whose property and interests in property are blocked 
pursuant to the International Emergency Economic Powers Act (50 U.S.C. 
1701 et seq.) (``IEEPA''); or
    (ii) A financial institution whose property and interests in 
property are blocked pursuant to parts 544 or 594 of this chapter in 
connection with Iran's proliferation of weapons of mass destruction or 
delivery systems for weapons of mass destruction or Iran's support for 
international terrorism.

    Note to paragraph (a)(5) of Sec.  561.201:  The names of persons 
whose property and interests in property are blocked pursuant to 
IEEPA are published in the Federal Register and incorporated into 
the Office of Foreign Assets Control's Specially Designated 
Nationals and Blocked Persons List (the ``SDN List''). The SDN List 
is accessible through the following page on the Office of Foreign 
Assets Control's Web site: www.treasury.gov/sdn. Additional 
information pertaining to the SDN List can be found in appendix A to 
this chapter. Agents or affiliates of Iran's Islamic Revolutionary 
Guard Corps (``IRGC'') whose property and interests in property are 
blocked pursuant to IEEPA are identified by a special reference to 
the ``IRGC'' at the end of their entries on the SDN List, in 
addition to the reference to the regulatory part of this chapter 
pursuant to which their property and interests in property are 
blocked. For example, an affiliate of the IRGC whose property and 
interests in property are blocked pursuant to

[[Page 11728]]

the Weapons of Mass Destruction Proliferators Sanctions Regulations, 
31 CFR part 544, will have the tag ``[NPWMD] [IRGC]'' at the end of 
its entry on the SDN List. Financial institutions whose property and 
interests in property are blocked pursuant to parts 544 or 594 of 
this chapter in connection with Iran's proliferation of weapons of 
mass destruction or delivery systems for weapons of mass destruction 
or Iran's support for international terrorism also are identified by 
the tag ``[IFSR]'' in addition to the tag referencing part 544 or 
part 594, as the case may be, located at the end of their entries on 
the SDN List (e.g., [NPWMD] [IFSR] or [SDGT] [IFSR]). In addition, 
see Sec.  561.405 concerning entities that may not be listed on the 
SDN List but whose property and interests in property are 
nevertheless blocked.

    (b) The Secretary of the Treasury may impose one or more strict 
conditions on the opening or maintaining by a U.S. financial 
institution of a correspondent account or a payable-through account in 
the United States for a foreign financial institution that the 
Secretary finds engages in one or more of the activities described in 
paragraph (a) of this section. Except as otherwise authorized pursuant 
to this part, a U.S. financial institution shall not open or maintain a 
correspondent account or payable-through account in the United States 
in a manner that is inconsistent with any strict condition imposed and 
in effect pursuant to this paragraph. Such conditions may include, but 
are not limited to, the following:
    (1) Prohibiting or restricting any provision of trade finance 
through the correspondent account or payable-through account of the 
foreign financial institution;
    (2) Restricting the transactions that may be processed through the 
correspondent account or payable-through account of the foreign 
financial institution to certain types of transactions, such as 
personal remittances;
    (3) Placing monetary limits on, or limiting the volume of, the 
transactions that may be processed through the correspondent account or 
payable-through account of the foreign financial institution;
    (4) Requiring pre-approval from the U.S. financial institution for 
all transactions processed through the correspondent account or 
payable-through account of the foreign financial institution; or
    (5) Prohibiting or restricting the processing of foreign exchange 
transactions through the correspondent account or payable-through 
account of the foreign financial institution.

    Note to paragraph (b) of Sec.  561.201:  The name of the foreign 
financial institution, together with the actual strict condition or 
conditions to be imposed, will be added to the Part 561 List on the 
Office of Foreign Assets Control's Web site (www.treasury.gov/ofac) 
on the Iran Sanctions page, and published in the Federal Register.

    (c) If the Secretary of the Treasury does not impose one or more 
strict conditions, pursuant to paragraph (b) of this section, on the 
opening or maintaining of a correspondent account or a payable-through 
account in the United States for a foreign financial institution that 
the Secretary finds engages in one or more of the activities described 
in paragraph (a) of this section, the Secretary, consistent with 
CISADA, will prohibit the opening or maintaining by a U.S. financial 
institution of a correspondent account or a payable-through account in 
the United States for that foreign financial institution. Except as 
otherwise authorized pursuant to this part, a U.S. financial 
institution shall not open or maintain a correspondent account or a 
payable-through account in the United States for a foreign financial 
institution for which the opening or maintaining of such an account is 
prohibited pursuant to this paragraph.

    Note to paragraph (c) of Sec.  561.201:  The names of foreign 
financial institutions for which the opening or maintaining of a 
correspondent account or a payable-through account in the United 
States is prohibited will be listed on the Part 561 List on the 
Office of Foreign Assets Control's Web site (www.treasury.gov/ofac) 
on the Iran Sanctions page, and published in the Federal Register.


    Note to Sec.  561.201: The Part 561 List will specify whether 
U.S. financial institutions are required to:
    (1) Impose strict conditions on the opening or maintaining of a 
correspondent account or a payable-through account for a particular 
foreign financial institution pursuant to paragraph (b) of this 
section;
    (2) Prohibit the opening or maintaining of a correspondent 
account or a payable-through account for a particular foreign 
financial institution pursuant to paragraph (c) of this section;
    (3) Prohibit the opening or maintaining of a correspondent 
account or a payable-through account for a particular foreign 
financial institution pursuant to Sec.  561.203(a)(1) and (a)(2)(i); 
or
    (4) Prohibit the opening of a correspondent account or a 
payable-through account and impose strict conditions on maintaining 
a preexisting correspondent account or a payable-through account for 
a particular foreign financial institution pursuant to Sec.  
561.203(a)(1) and (a)(2)(ii). Where applicable, the Part 561 List 
also will specify the strict condition or conditions to be imposed 
on the correspondent account or the payable-through account.

Sec.  561.202  Prohibitions on persons owned or controlled by U.S. 
financial institutions.

    Except as otherwise authorized pursuant to this part, any person 
that is owned or controlled by a U.S. financial institution is 
prohibited from knowingly engaging in any transaction with or 
benefitting Iran's Islamic Revolutionary Guard Corps or any of its 
agents or affiliates whose property and interests in property are 
blocked pursuant to the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) (``IEEPA'').

    Note 1 to Sec.  561.202:  The names of persons whose property 
and interests in property are blocked pursuant to IEEPA are 
published in the Federal Register and incorporated into the Office 
of Foreign Assets Control's Specially Designated Nationals and 
Blocked Persons List (the ``SDN List''). The SDN List is accessible 
through the following page on the Office of Foreign Assets Control's 
Web site: www.treasury.gov/sdn. Additional information pertaining to 
the SDN List can be found in appendix A to this chapter. Agents or 
affiliates of Iran's Islamic Revolutionary Guard Corps (``IRGC'') 
whose property and interests in property are blocked pursuant to 
IEEPA are identified by a special reference to the ``IRGC'' at the 
end of their entries on the SDN List, in addition to the reference 
to the regulatory part of this chapter pursuant to which their 
property and interests in property are blocked. For example, an 
affiliate of the IRGC whose property and interests in property are 
blocked pursuant to the Weapons of Mass Destruction Proliferators 
Sanctions Regulations, 31 CFR part 544, will have the tag ``[NPWMD] 
[IRGC]'' at the end of its entry on the SDN List. In addition, see 
Sec.  561.405 concerning entities that may not be listed on the SDN 
List but whose property and interests in property are nevertheless 
blocked.



    Note 2 to Sec.  561.202:  A U.S. financial institution is 
subject to the civil penalties provided for in section 206(b) of 
IEEPA if any person that it owns or controls violates the 
prohibition set forth in this section and the U.S. financial 
institution knew or should have known of such violation. See Sec.  
561.701(a)(2).

Sec.  561.203  NDAA-based sanctions on certain foreign financial 
institutions.

    (a) Imposition of sanctions. Subject to the limitations, 
exceptions, and conditions set forth in paragraphs (d) through (h) of 
this section, upon a determination by the Secretary of the Treasury 
that a foreign financial institution has knowingly conducted or 
facilitated any significant financial transaction with the Central Bank 
of Iran or a designated Iranian financial institution, consistent with 
section 1245 of the National Defense Authorization Act for Fiscal Year 
2012 (Pub. L. 112-81), the Secretary of the Treasury:

[[Page 11729]]

    (1) Will prohibit U.S. financial institutions from opening a 
correspondent account or a payable-through account in the United States 
for the foreign financial institution with respect to which the 
determination has been made; and either
    (2)(i) Will prohibit U.S. financial institutions from maintaining a 
correspondent account or a payable-through account in the United States 
for the foreign financial institution with respect to which the 
determination has been made; or
    (ii) Will impose one or more strict conditions on the maintaining 
of any correspondent account or payable-through account that had been 
opened in the United States for the foreign financial institution prior 
to the Secretary of the Treasury's determination with respect to the 
foreign financial institution.

    Note 1 to paragraph (a) of Sec.  561.203: The names of 
designated Iranian financial institutions are identified on the 
Specially Designated Nationals and Blocked Persons List (the ``SDN 
List'') on the Office of Foreign Assets Control's Web site with the 
tag ``[NDAA]'' at the end of their entries, in addition to the 
reference to the regulatory part of this chapter pursuant to which 
their property and interests in property are blocked. The SDN List 
is accessible through the following page on the Office of Foreign 
Assets Control's Web site: www.treasury.gov/sdn.


    Note 2 to paragraph (a) of Sec.  561.203: The name of any 
foreign financial institution with respect to which a determination 
has been made pursuant to this paragraph (a), along with the 
relevant sanctions to be imposed (prohibition(s) and/or strict 
condition(s)), will be added to the List of Foreign Financial 
Institutions Subject to Part 561 (the ``Part 561 List''), which is 
maintained on the Office of Foreign Assets Control's Web site 
(www.treasury.gov/ofac) on the Iran Sanctions page, and published in 
the Federal Register.

    (b) Strict conditions. The strict conditions that might be imposed 
on the maintaining of a pre-existing correspondent account or payable-
through account for a foreign financial institution pursuant to 
paragraph (a)(2)(ii) of this section include, but are not limited to, 
the following:
    (1) Prohibiting or restricting any provision of trade finance 
through the correspondent account or payable-through account of the 
foreign financial institution;
    (2) Restricting the transactions that may be processed through the 
correspondent account or payable-through account of the foreign 
financial institution to certain types of transactions, such as 
personal remittances;
    (3) Placing monetary limits on, or limiting the volume of, the 
transactions that may be processed through the correspondent account or 
payable-through account of the foreign financial institution;
    (4) Requiring pre-approval from the U.S. financial institution for 
all transactions processed through the correspondent account or 
payable-through account of the foreign financial institution; or
    (5) Prohibiting or restricting the processing of foreign exchange 
transactions through the correspondent account or payable-through 
account of the foreign financial institution.
    (c) Prohibitions. (1) Except as otherwise authorized pursuant to 
this part, a U.S. financial institution shall not open a correspondent 
account or payable-through account in the United States for a foreign 
financial institution for which the opening of such an account is 
prohibited pursuant to paragraph (a)(1) of this section.
    (2) Except as otherwise authorized pursuant to this part, a U.S. 
financial institution shall not maintain a correspondent account or 
payable-through account in the United States for a foreign financial 
institution for which the maintaining of such an account is prohibited 
pursuant to paragraph (a)(2)(i) of this section.
    (3) Except as otherwise authorized pursuant to this part, a U.S. 
financial institution shall not maintain a correspondent account or 
payable-through account in the United States for a foreign financial 
institution in a manner that is inconsistent with any strict condition 
imposed and in effect pursuant to paragraph (a)(2)(ii) of this section.
    (d) Privately owned foreign financial institutions. (1) Subject to 
the exceptions set forth in paragraphs (f) and (h) of this section, 
sanctions may be imposed pursuant to paragraph (a) of this section 
beginning on February 29, 2012, with respect to any significant 
financial transaction conducted or facilitated by a privately owned 
foreign financial institution that is not for the purchase of petroleum 
or petroleum products from Iran.
    (2) Subject to the exceptions and conditions set forth in 
paragraphs (g) and (h) of this section, sanctions may be imposed 
pursuant to paragraph (a) of this section with respect to any 
significant financial transaction conducted or facilitated by a 
privately owned foreign financial institution on or after June 28, 
2012, for the purchase of petroleum or petroleum products from Iran.
    (e) Government-owned or -controlled foreign financial institutions, 
including foreign central banks. Subject to the exceptions and 
conditions set forth in paragraphs (g) and (h) of this section, 
sanctions may be imposed pursuant to paragraph (a) of this section on a 
foreign financial institution owned or controlled by the government of 
a foreign country, including a central bank of a foreign country, only 
insofar as it engages in a significant financial transaction on or 
after June 28, 2012, for the sale or purchase of petroleum or petroleum 
products to or from Iran.
    (f) Sanctions will not be imposed under paragraph (a) of this 
section with respect to any foreign financial institution for 
conducting or facilitating a transaction for the sale of food, 
medicine, or medical devices to Iran.
    (g) The Secretary of the Treasury may impose sanctions pursuant to 
paragraph (a) of this section with respect to any significant financial 
transaction conducted or facilitated by a foreign financial institution 
on or after June 28, 2012, for the purchase of petroleum or petroleum 
products from Iran only if the President determines, not later than 
March 30, 2012, and every 180 days thereafter, that there is a 
sufficient supply of petroleum and petroleum products from countries 
other than Iran to permit a significant reduction in the volume of 
petroleum and petroleum products purchased from Iran by or through 
foreign financial institutions. Such successive sufficiency 
determinations by the President shall render subject to sanctions under 
paragraph (a) of this section those financial transactions conducted or 
facilitated by a foreign financial institution for the purchase of 
petroleum or petroleum products from Iran during each successive 180-
day period beginning 90 days after the President's determination.

    Note to paragraph (g) of Sec.  561.203:  Under Section 
1245(d)(4)(B) of the NDAA, the President is to make a determination, 
not later than March 30, 2012, and every 180 days thereafter, of 
whether the price and supply of petroleum and petroleum products 
produced in countries other than Iran is sufficient to permit 
purchasers of petroleum and petroleum products from Iran to reduce 
significantly in volume their purchases from Iran. This 
determination is to be based on reports on the availability and 
price of petroleum and petroleum products produced in countries 
other than Iran that, pursuant to section 1245(d)(4)(A) of the NDAA, 
the Administrator of the Energy Information Administration, in 
consultation with the Secretary of the Treasury, the Secretary of 
State, and the Director of National

[[Page 11730]]

Intelligence, is to submit to Congress beginning not later than 
February 29, 2012, and every 60 days thereafter.

    (h) Sanctions will not be imposed under paragraph (a) of this 
section on a foreign financial institution if the Secretary of State 
determines and reports to Congress not later than 90 days after the 
date on which the President makes the initial determination referenced 
in paragraph (g) of this section, and every 180 days thereafter, that 
the country with primary jurisdiction over the foreign financial 
institution has significantly reduced its volume of crude oil purchases 
from Iran during the period prior to the initial determination, and 
during successive 180-day periods.

    Note to Sec.  561.203:  The sanctions regime described in Sec.  
561.203 is separate from the sanctions regime described in Sec.  
561.201 and applies in addition to, and independently of, the 
sanctions regime imposed under Sec.  561.201.

Subpart C--General Definitions


Sec.  561.301  Effective date.

    (a) The effective date of a prohibition or condition imposed 
pursuant to Sec.  561.201 or Sec.  561.203 on the opening or 
maintaining of a correspondent account or a payable-through account in 
the United States by a U.S. financial institution for a particular 
foreign financial institution is the earlier of the date the U.S. 
financial institution receives actual or constructive notice of such 
prohibition or condition.
    (b) The effective date of the prohibition contained in Sec.  
561.202 with respect to Iran's Islamic Revolutionary Guard Corps and 
any of its agents or affiliates whose property and interests in 
property are blocked as of August 16, 2010, is August 16, 2010.
    (c) The effective date of the prohibition contained in Sec.  
561.202 with respect to an agent or affiliate of Iran's Islamic 
Revolutionary Guard Corps whose property and interests in property 
become blocked after August 16, 2010, is the earlier of the date of 
actual or constructive notice that such person's property and interests 
in property are blocked.


Sec.  561.302  UNSC Resolution 1737.

    The term UNSC Resolution 1737 means United Nations Security Council 
Resolution 1737, adopted December 23, 2006.


Sec.  561.303  UNSC Resolution 1747.

    The term UNSC Resolution 1747 means United Nations Security Council 
Resolution 1747, adopted March 24, 2007.


Sec.  561.304  UNSC Resolution 1803.

    The term UNSC Resolution 1803 means United Nations Security Council 
Resolution 1803, adopted March 3, 2008.


Sec.  561.305  UNSC Resolution 1929.

    The term UNSC Resolution 1929 means United Nations Security Council 
Resolution 1929, adopted June 9, 2010.


Sec.  561.306  Correspondent account.

    The term correspondent account means an account established by a 
U.S. financial institution for a foreign financial institution to 
receive deposits from, or to make payments on behalf of, the foreign 
financial institution, or to handle other financial transactions 
related to such foreign financial institution.


Sec.  561.307  Payable-through account.

    The term payable-through account means a correspondent account 
maintained by a U.S. financial institution for a foreign financial 
institution by means of which the foreign financial institution permits 
its customers to engage, either directly or through a subaccount, in 
banking activities usual in connection with the business of banking in 
the United States.


Sec.  561.308  Foreign financial institution.

    The term foreign financial institution means any foreign entity 
that is engaged in the business of accepting deposits, making, 
granting, transferring, holding, or brokering loans or credits, or 
purchasing or selling foreign exchange, securities, commodity futures 
or options, or procuring purchasers and sellers thereof, as principal 
or agent. It includes but is not limited to depository institutions, 
banks, savings banks, money service businesses, trust companies, 
securities brokers and dealers, commodity futures and options brokers 
and dealers, forward contract and foreign exchange merchants, 
securities and commodities exchanges, clearing corporations, investment 
companies, employee benefit plans, and holding companies, affiliates, 
or subsidiaries of any of the foregoing. The term does not include the 
international financial institutions identified in 22 U.S.C. 
262r(c)(2), the International Fund for Agricultural Development, the 
North American Development Bank, or any other international financial 
institution so notified by the Office of Foreign Assets Control.


Sec.  561.309  U.S. financial institution.

    The term U.S. financial institution means any U.S. entity that is 
engaged in the business of accepting deposits, making, granting, 
transferring, holding, or brokering loans or credits, or purchasing or 
selling foreign exchange, securities, commodity futures or options, or 
procuring purchasers and sellers thereof, as principal or agent. It 
includes but is not limited to depository institutions, banks, savings 
banks, money service businesses, trust companies, insurance companies, 
securities brokers and dealers, commodity futures and options brokers 
and dealers, forward contract and foreign exchange merchants, 
securities and commodities exchanges, clearing corporations, investment 
companies, employee benefit plans, and U.S. holding companies, U.S. 
affiliates, or U.S. subsidiaries of any of the foregoing. This term 
includes those branches, offices, and agencies of foreign financial 
institutions that are located in the United States, but not such 
institutions' foreign branches, offices, or agencies.


Sec.  561.310  Money laundering.

    The term money laundering means engaging in deceptive practices to 
obscure the nature of transactions involving the movement of illicit 
cash or illicit cash equivalent proceeds into, out of, or through a 
country, or into, out of, or through a financial institution, such that 
the transactions are made to appear legitimate.


Sec.  561.311  Agent.

    The term agent includes an entity established by a person for 
purposes of conducting transactions on behalf of the person in order to 
conceal the identity of the person.


Sec.  561.312  Act of international terrorism.

    The term act of international terrorism has the same definition as 
that provided under section 14 of the Iran Sanctions Act of 1996 (50 
U.S.C. 1701 note). As of February 27, 2012, the term act of 
international terrorism means an act which is violent or dangerous to 
human life and that is a violation of the criminal laws of the United 
States or of any state or that would be a criminal violation if 
committed within the jurisdiction of the United States or any state and 
which appears to be intended to intimidate or coerce a civilian 
population; to influence the policy of a government by intimidation or 
coercion; or to affect the conduct of a government by assassination or 
kidnapping.


Sec.  561.313  Financial services.

    The term financial services includes loans, transfers, accounts, 
insurance, investments, securities, guarantees, foreign exchange, 
letters of credit, and commodity futures or options.

[[Page 11731]]

Sec.  561.314  Knowingly.

    The term knowingly, with respect to conduct, a circumstance, or a 
result, means that a person has actual knowledge, or should have known, 
of the conduct, the circumstance, or the result.


Sec.  561.315  Person.

    The term person means an individual or entity.


Sec.  561.316  Entity.

    The term entity means a partnership, association, trust, joint 
venture, corporation, or other organization.


Sec.  561.317  Money service businesses.

    The term money service businesses means any agent, agency, branch, 
or office of any person doing business, whether or not on a regular 
basis or as an organized business concern, in one or more of the 
capacities listed in 31 CFR 103.11(uu)(1) through (5). The term does 
not include a bank or a person registered with, and regulated or 
examined by, the Securities and Exchange Commission or the Commodity 
Futures Trading Commission.


Sec.  561.318  Petroleum.

    A mixture of hydrocarbons that exists in liquid phase in natural 
underground reservoirs and remains liquid at atmospheric pressure after 
passing through surface separating facilities. Also known as crude oil.


Sec.  561.319  Petroleum products.

    The term petroleum products includes unfinished oils, liquefied 
petroleum gases, pentanes plus, aviation gasoline, motor gasoline, 
naphtha-type jet fuel, kerosene-type jet fuel, kerosene, distillate 
fuel oil, residual fuel oil, petrochemical feedstocks, special 
naphthas, lubricants, waxes, petroleum coke, asphalt, road oil, still 
gas, and miscellaneous products obtained from the processing of crude 
oil (including lease condensate), natural gas, and other hydrocarbon 
compounds. The term does not include natural gas, liquefied natural 
gas, biofuels, methanol, and other non-petroleum fuels.


Sec.  561.320  Iranian financial institution.

    The term Iranian financial institution means any entity (including 
foreign branches), wherever located, organized under the laws of Iran 
or any jurisdiction within Iran, or owned or controlled by the 
Government of Iran, or in Iran, or owned or controlled by any of the 
foregoing, that is engaged in the business of accepting deposits, 
making, granting, transferring, holding, or brokering loans or credits, 
or purchasing or selling foreign exchange, securities, commodity 
futures or options, or procuring purchasers and sellers thereof, as 
principal or agent. It includes but is not limited to depository 
institutions, banks, savings banks, money service businesses, trust 
companies, insurance companies, securities brokers and dealers, 
commodity futures and options brokers and dealers, forward contract and 
foreign exchange merchants, securities and commodities exchanges, 
clearing corporations, investment companies, employee benefit plans, 
and holding companies, affiliates, or subsidiaries of any of the 
foregoing.


Sec.  561.321  Government of Iran.

    The term Government of Iran includes:
    (a) The state and the Government of Iran, as well as any political 
subdivision, agency, or instrumentality thereof;
    (b) Any entity owned or controlled directly or indirectly by the 
foregoing;
    (c) Any person to the extent that such person is, or has been, or 
to the extent that there is reasonable cause to believe that such 
person is, or has been, acting or purporting to act directly or 
indirectly on behalf of any of the foregoing; and
    (d) Any person or entity identified by the Secretary of the 
Treasury to be the Government of Iran under 31 CFR part 560.


Sec.  561.322  Entity owned or controlled by the Government of Iran.

    The phrase entity owned or controlled by the Government of Iran 
means any entity, including a financial institution, in which the 
Government of Iran owns a 50 percent or greater interest or a 
controlling interest, and any entity, including a financial 
institution, which is otherwise controlled by that government.


Sec.  561.323  Foreign financial institution owned or controlled by the 
government of a foreign country.

    The phrase foreign financial institution owned or controlled by the 
government of a foreign country means any foreign financial 
institution, including a central bank of a foreign country, in which a 
government of a foreign country owns a 50 percent or greater interest 
and any foreign financial institution which is otherwise controlled by 
a government of a foreign country.


Sec.  561.324  Designated Iranian financial institution.

    The term designated Iranian financial institution means any Iranian 
financial institution whose property and interests in property are 
blocked by the Department of the Treasury pursuant to any part of this 
chapter or any Executive order issued pursuant to the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) and whose name 
is listed on the Specially Designated Nationals and Blocked Persons 
List on the Office of Foreign Assets Control's Web site, except for any 
Iranian financial institution whose property and interests in property 
are blocked solely pursuant to Executive Order 13599 of February 5, 
2012.

    Note to Sec.  561.324:  Facilitating significant transactions or 
providing significant financial services for a financial institution 
whose property and interests in property are blocked pursuant to 
parts 544 or 594 of this chapter in connection with Iran's 
proliferation of weapons of mass destruction or delivery systems for 
weapons of mass destruction or Iran's support for international 
terrorism has, since the enactment of CISADA on July 1, 2010, 
constituted an activity that could subject a foreign financial 
institution to prohibitions or strict conditions on correspondent 
accounts or payable-through accounts in the United States. See Sec.  
561.201.

Sec.  561.325  Financial transaction.

    The term financial transaction means any transfer of value 
involving a financial institution.


Sec.  561.326  Privately owned foreign financial institution.

    The phrase privately owned foreign financial institution means any 
foreign financial institution that is not owned or controlled by the 
government of a foreign country.


Sec.  561.327  Food, medicine, and medical devices.

    (a) The term food means items that are intended to be consumed by 
and provide nutrition to humans or animals in Iran, including vitamins 
and minerals, food additives and supplements, and bottled drinking 
water, and seeds that germinate into items that are intended to be 
consumed by and provide nutrition to humans or animals in Iran. For 
purposes of this definition, the term food does not include:
    (1) Alcoholic beverages, cigarettes, gum, or fertilizer; and
    (2) The following excluded food items: castor beans, castor bean 
seeds, raw eggs, fertilized eggs (other than fish and shrimp roe), 
dried egg albumin, live animals, Rosary/Jequirity peas, non-food-grade 
gelatin powder, and peptones and their derivatives.
    (b) The term medicine has the same meaning given the term ``drug'' 
in

[[Page 11732]]

section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321) 
but does not include any item listed on the Commerce Control List in 
the Export Administration Regulations, 15 CFR part 774, supplement no. 
1 (excluding items classified as EAR 99).
    (c) The term medical devices has the meaning given the term 
``device'' in section 201 of the Federal Food, Drug, and Cosmetic Act 
(21 U.S.C. 321) but does not include any item listed on the Commerce 
Control List in the Export Administration Regulations, 15 CFR part 774, 
supplement no. 1 (excluding items classified as EAR 99).

Subpart D--Interpretations


Sec.  561.401  Reference to amended sections.

    Except as otherwise specified, reference to any provision in or 
appendix to this part or chapter or to any regulation, ruling, order, 
instruction, directive, or license issued pursuant to this part refers 
to the same as currently amended.


Sec.  561.402  Effect of amendment.

    Unless otherwise specifically provided, any amendment, 
modification, or revocation of any provision in or appendix to this 
part or chapter or of any order, regulation, ruling, instruction, or 
license issued by the Office of Foreign Assets Control does not affect 
any act done or omitted, or any civil or criminal proceeding commenced 
or pending, prior to such amendment, modification, or revocation. All 
penalties, forfeitures, and liabilities under any such order, 
regulation, ruling, instruction, or license continue and may be 
enforced as if such amendment, modification, or revocation had not been 
made.


Sec.  561.403  Facilitation of certain efforts, activities, or 
transactions by foreign financial institutions.

    For purposes of Sec. Sec.  561.201 and 561.203 of this part, the 
term facilitate or facilitated used with respect to certain efforts, 
activities, or transactions refers to the provision of assistance by a 
foreign financial institution for those efforts, activities, or 
transactions, including, but not limited to, the provision of currency, 
financial instruments, securities, or any other transmission of value; 
purchasing; selling; transporting; swapping; brokering; financing; 
approving; guaranteeing; or the provision of other services of any 
kind; or the provision of personnel; or the provision of software, 
technology, or goods of any kind.


Sec.  561.404  Significant transaction or transactions; significant 
financial services; significant financial transaction.

    In determining, for purposes of Sec.  561.201(a)(5), whether a 
transaction is significant, whether transactions are significant, or 
whether financial services are significant, or, for purposes Sec.  
561.203(a), whether a financial transaction is significant, the 
Secretary of the Treasury may consider the totality of the facts and 
circumstances. As a general matter, the Secretary may consider some or 
all of the following factors:
    (a) Size, number, and frequency: The size, number, and frequency of 
transactions, financial services, or financial transactions performed 
over a period of time, including whether the transactions, financial 
services, or financial transactions are increasing or decreasing over 
time and the rate of increase or decrease.
    (b) Nature: The nature of the transaction(s), financial services, 
or financial transaction, including the type, complexity, and 
commercial purpose of the transaction(s), financial services, or 
financial transaction.
    (c) Level of Awareness; Pattern of Conduct: (1) Whether the 
transaction(s), financial services, or financial transaction is 
performed with the involvement or approval of management or only by 
clerical personnel; and (2) Whether the transaction(s), financial 
services, or financial transaction is part of a pattern of conduct or 
the result of a business development strategy.
    (d) Nexus: The proximity between the foreign financial institution 
engaging in the transaction(s) or providing the financial services and 
a blocked person described in Sec.  561.201(a)(5), or between the 
foreign financial institution conducting or facilitating the financial 
transaction described in Sec.  561.203 and the Central Bank of Iran or 
a designated Iranian financial institution, as defined in Sec.  
561.324. For example, a transaction or financial service in which a 
foreign financial institution provides brokerage or clearing services 
to, or maintains an account or makes payments for a blocked person 
described in paragraph (a)(5) of Sec.  561.201, the Central Bank of 
Iran, or a designated Iranian financial institution in a direct 
customer relationship generally would be of greater significance than a 
transaction or financial service a foreign financial institution 
conducts for or provides to a blocked person described in Sec.  
561.201(a)(5), the Central Bank of Iran, or a designated Iranian 
financial institution indirectly or in a tertiary relationship.
    (e) Impact: The impact of the transaction(s) or financial services 
on the objectives of the Comprehensive Iran Sanctions, Accountability, 
and Divestment Act of 2010, or of the financial transaction on the 
objectives of the National Defense Authorization Act for Fiscal Year 
2012, including:
    (1) The economic or other benefit conferred or attempted to be 
conferred on a blocked person described in Sec.  561.201(a)(5), or on 
the Central Bank of Iran or designated Iranian financial institution, 
as described or defined in Sec. Sec.  561.203 and 561.324;
    (2) Whether and how the transaction(s), financial services, or 
financial transaction contributes to the proliferation of weapons of 
mass destruction or delivery systems for such weapons, to support for 
international terrorism, to the suppression of human rights, to an 
increase in Iran's crude oil revenues, or to connecting the Central 
Bank of Iran or a designated Iranian financial institution to the 
international financial system; and
    (3) Whether the transaction(s), financial services, or financial 
transaction supports humanitarian activity or involves the payment of 
basic expenses as specified in and authorized pursuant to UNSC 
Resolution 1737 or the payment of extraordinary expenses that have been 
authorized by the Sanctions Committee established pursuant to UNSC 
Resolution 1737, or the payment for the sale of food, medicine, or 
medical devices to Iran.
    (f) Deceptive practices: Whether the transaction(s), financial 
services, or financial transaction involves an attempt to obscure or 
conceal the actual parties or true nature of the transaction(s), 
financial services, or financial transaction or to evade sanctions; for 
example, whether the transaction enabled the Central Bank of Iran to 
facilitate the evasion of sanctions by a blocked person described in 
Sec.  561.201(a)(5) or a designated Iranian financial institution, as 
defined in Sec.  561.324.
    (g) Central Bank of Iran Reserves, Settlement Services, Foreign 
Currency Exchanges, and Official Development Assistance Repayment: 
Other factors involved in making a determination of whether a 
transaction(s), financial service, or financial transaction is 
significant are whether the transaction solely involves the passive 
holding of Central Bank of Iran reserves by a foreign financial 
institution; whether the Central Bank of Iran's role is limited to 
providing settlement services or foreign currency exchanges in 
transactions between a non-designated Iranian financial institution and 
a

[[Page 11733]]

foreign financial institution; and whether the transaction involves 
only the repayment of official development assistance by the Central 
Bank of Iran or the transfer of funds required as a condition of Iran's 
membership in an international financial institution.
    (h) Other relevant factors: Such other factors that the Secretary 
deems relevant on a case-by-case basis in determining the significance 
of a transaction(s), financial services, or financial transaction.


Sec.  561.405  Entities owned by a person whose property and interests 
in property are blocked.

    A person whose property and interests in property are blocked 
pursuant to the International Emergency Economic Powers Act (50 U.S.C. 
1701 et seq.) has an interest in all property and interests in property 
of an entity in which it owns, directly or indirectly, a 50 percent or 
greater interest. The property and interests in property of such an 
entity, therefore, are blocked, and such an entity is a person whose 
property and interests in property are blocked pursuant to the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), 
regardless of whether the entity itself is listed on the Office of 
Foreign Assets Control's Specially Designated Nationals and Blocked 
Persons List.


Sec.  561.406  Country with primary jurisdiction over the foreign 
financial institution.

    For purposes of Sec.  561.203(h), a country includes any 
jurisdiction that has its own central bank or contains a separate 
financial sector authority, and a foreign financial institution 
(including its foreign branches outside of the United States) is under 
a country's primary jurisdiction if the foreign financial institution 
is organized under the laws of the country or any jurisdiction within 
that country.


Sec.  561.407  Conducting or facilitating a financial transaction with 
the Central Bank of Iran or a designated Iranian financial institution.

    A foreign financial institution conducts or facilitates a financial 
transaction with the Central Bank of Iran or a designated Iranian 
financial institution if it maintains an account for such entities or 
engages in a financial transaction directly or indirectly with such 
entities.

    Note to Sec.  561.407:  See Sec.  561.404 for factors that may 
be considered in determining whether a financial transaction is 
significant, as required for the imposition of certain sanctions 
pursuant to this part.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  561.501  General and specific licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E of this chapter. Licensing actions taken pursuant to part 501 
of this chapter with respect to the prohibitions contained in this part 
or conditions imposed pursuant to this part are considered actions 
taken pursuant to this part.


Sec.  561.502  Effect of license or authorization.

    (a) No license or other authorization contained in this part, or 
otherwise issued by the Office of Foreign Assets Control, authorizes or 
validates any transaction effected prior to the issuance of such 
license or other authorization, unless specifically provided in such 
license or authorization.
    (b) No regulation, ruling, instruction, or license authorizes any 
transaction prohibited under this part unless the regulation, ruling, 
instruction, or license is issued by the Office of Foreign Assets 
Control and specifically refers to this part. No regulation, ruling, 
instruction, or license referring to this part shall be deemed to 
authorize any transaction prohibited by any other part of this chapter 
unless the regulation, ruling, instruction, or license specifically 
refers to such part.
    (c) Any regulation, ruling, instruction, or license authorizing any 
transaction otherwise prohibited under this part has the effect of 
removing a prohibition contained in this part from the transaction, but 
only to the extent specifically stated by its terms. Unless the 
regulation, ruling, instruction, or license otherwise specifies, such 
an authorization does not create any right, duty, obligation, claim, or 
interest in, or with respect to, any property which would not otherwise 
exist under ordinary principles of law.


Sec.  561.503  Exclusion from licenses.

    The Office of Foreign Assets Control reserves the right to exclude 
any person, property, or transaction from the operation of any license 
or from the privileges conferred by any license. The Office of Foreign 
Assets Control also reserves the right to restrict the applicability of 
any license to particular persons, property, transactions, or classes 
thereof. Such actions are binding upon actual or constructive notice of 
the exclusions or restrictions.


Sec.  561.504  Transactions related to closing a correspondent account 
or payable-through account.

    (a) During the 10-day period beginning on the effective date of the 
prohibition in Sec.  561.201(c) or Sec.  561.203(c)(2) on the 
maintaining of a correspondent account or a payable-through account for 
a foreign financial institution whose name is added to the Part 561 
List, maintained on the Office of Foreign Assets Control's Web site 
(www.treasury.gov/ofac) on the Iran Sanctions page, U.S. financial 
institutions that maintain correspondent accounts or payable-through 
accounts for the foreign financial institution are authorized to:
    (1) Process only those transactions through the account, or permit 
the foreign financial institution to execute only those transactions 
through the account, that are for the purpose of, and necessary for, 
closing the account; and
    (2) Transfer the funds remaining in the correspondent account or 
the payable-through account to an account of the foreign financial 
institution located outside of the United States and close the 
correspondent account or the payable-through account.
    (b) A report must be filed with the Office of Foreign Assets 
Control within 30 days of the closure of an account, providing full 
details on the closing of each correspondent account or payable-through 
account maintained by a U.S. financial institution for a foreign 
financial institution whose name is added to the Part 561 List, 
maintained on the Office of Foreign Assets Control's Web site 
(www.treasury.gov/ofac) on the Iran Sanctions page. Such report must 
include complete information on the closing of the account and on all 
transactions processed or executed through the account pursuant to this 
section, including the account outside of the United States to which 
funds remaining in the account were transferred. Reports should be 
addressed to the attention of the Sanctions, Compliance & Evaluations 
Division, Office of Foreign Assets Control, U.S. Department of the 
Treasury, 1500 Pennsylvania Avenue NW., Washington, DC 20220.
    (c) Specific licenses may be issued on a case-by-case basis to 
authorize transactions by a U.S. financial institution with respect to 
a correspondent account or a payable-through account maintained by the 
U.S. financial institution for a foreign financial institution whose 
name is added to the Part 561 List, that are outside the scope of the 
transactions authorized in paragraph (a) of this section and/or that 
occur beyond the 10-

[[Page 11734]]

day period authorized in that paragraph. License applications should be 
filed in conformance with Sec.  501.801 of the Reporting, Procedures 
and Penalties Regulations, 31 CFR part 501.
    (d) Nothing in this section authorizes the opening of a 
correspondent account or a payable-through account for a foreign 
financial institution whose name appears on the Part 561 List.

    Note to Sec.  561.504:  This section does not authorize a U.S. 
financial institution to unblock property or interests in property, 
or to engage in any transaction or dealing in property or interests 
in property, blocked pursuant to any other part of this chapter, in 
the process of closing a correspondent account or a payable-through 
account for a foreign financial institution whose name has been 
added to the Part 561 List, maintained on the Office of Foreign 
Assets Control's Web site (www.treasury.gov/ofac) on the Iran 
Sanctions page. See Sec.  561.101.

Subpart F--Reports


Sec.  561.601  Records and reports.

    For provisions relating to required records and reports, see part 
501, subpart C, of this chapter.

Subpart G--Penalties


Sec.  561.701  Penalties.

    (a) Civil Penalties. (1) As set forth in section 104(c) of the 
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010 (Pub. L. 111-195) (``CISADA'') and section 1245(g)(2) of the 
National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-
81) (``NDAA''), a civil penalty not to exceed the amount set forth in 
section 206(b) of the International Emergency Economic Powers Act 
(``IEEPA'') (50 U.S.C. 1705(b)) may be imposed on any person who 
violates, attempts to violate, conspires to violate, or causes a 
violation of any prohibition contained in Sec.  561.201 or Sec.  
561.203 or of any license set forth in or issued pursuant to this part.
    (2) As set forth in section 104(d) of CISADA, a civil penalty not 
to exceed the amount set forth in section 206(b) of IEEPA may be 
imposed on a U.S. financial institution if:
    (i) A person owned or controlled by the U.S. financial institution 
violates, attempts to violate, conspires to violate, or causes a 
violation of the prohibition in Sec.  561.202 or of any order, 
regulation, or license set forth in or issued pursuant to this part 
concerning such prohibition; and
    (ii) The U.S. financial institution knew or should have known that 
the person violated, attempted to violate, conspired to violate, or 
caused a violation of such prohibition.

    Note to paragraph (a) of Sec.  561.701:  As of February 27, 
2012, IEEPA provides for a maximum civil penalty not to exceed the 
greater of $250,000 or 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.

    (b) Criminal Penalty. As set forth in section 104(c) of CISADA and 
section 1245(g)(2) of the NDAA, a 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 prohibition contained 
in Sec. Sec.  561.201 or 561.203 shall, upon conviction, be fined not 
more than $1,000,000, or if a natural person, be imprisoned for not 
more than 20 years, or both.
    (c) Adjustments to penalty amounts. (1) The civil penalties 
provided in IEEPA are subject to adjustment pursuant to the Federal 
Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as 
amended, 28 U.S.C. 2461 note).
    (2) The criminal penalties provided in IEEPA are subject to 
adjustment pursuant to 18 U.S.C. 3571.
    (d) Attention is also directed to 18 U.S.C. 1001, which provides 
that ``whoever, in any matter within the jurisdiction of the executive, 
legislative, or judicial branch of the Government of the United States, 
knowingly and willfully falsifies, conceals, or covers up by any trick, 
scheme, or device a material fact; makes any materially false, 
fictitious, or fraudulent statement or representation; or makes or uses 
any false writing or document knowing the same to contain any 
materially false, fictitious, or fraudulent statement or entry'' shall 
be fined under title 18, United States Code, imprisoned, or both.
    (e) Violations of this part may also be subject to relevant 
provisions of other applicable laws.


Sec.  561.702  Pre-Penalty Notice; settlement.

    (a) When required. If the Office of Foreign Assets Control has 
reason to believe that there has occurred a violation of any provision 
of this part or a violation of the provisions of any license, ruling, 
regulation, order, direction, or instruction issued by or pursuant to 
the direction or authorization of the Secretary of the Treasury 
pursuant to this part or otherwise under IEEPA and determines that a 
civil monetary penalty may be warranted, the Office of Foreign Assets 
Control may issue a Pre-Penalty Notice informing the alleged violator 
of the agency's intent to impose a monetary penalty. A Pre-Penalty 
Notice shall be in writing. The Pre-Penalty Notice may be issued 
whether or not another agency has taken any action with respect to the 
matter. For a description of the contents of a Pre-Penalty Notice, see 
Appendix A to part 501 of this chapter.
    (b)(1) Right to respond. An alleged violator has the right to 
respond to a Pre-Penalty Notice by making a written presentation to the 
Office of Foreign Assets Control. For a description of the information 
that should be included in such a response, see Appendix A to part 501 
of this chapter.
    (2) Deadline for response. A response to a Pre-Penalty Notice must 
be made within 30 days of the date of service of the Pre-Penalty 
Notice. The failure to submit a response within the applicable time 
period set forth in this paragraph shall be deemed to be a waiver of 
the right to respond.
    (i) Computation of time for response. A response to a Pre-Penalty 
Notice must be postmarked or date-stamped by the U.S. Postal Service 
(or foreign postal service, if mailed abroad) or courier service 
provider (if transmitted to the Office of Foreign Assets Control by 
courier) on or before the 30th day after the postmark date on the 
envelope in which the Pre-Penalty Notice was mailed. If the Pre-Penalty 
Notice was personally delivered by a non-U.S. Postal Service agent 
authorized by the Office of Foreign Assets Control, a response must be 
postmarked or date-stamped on or before the 30th day after the date of 
delivery.
    (ii) Extensions of time for response. If a due date falls on a 
federal holiday or weekend, that due date is extended to include the 
following business day. Any other extensions of time will be granted, 
at the discretion of the Office of Foreign Assets Control, only upon 
specific request to the Office of Foreign Assets Control.
    (3) Form and method of response. A response to a Pre-Penalty Notice 
need not be in any particular form, but it must be typewritten and 
signed by the alleged violator or a representative thereof, must 
contain information sufficient to indicate that it is in response to 
the Pre-Penalty Notice, and must include the Office of Foreign Assets 
Control identification number listed on the Pre-Penalty Notice. A copy 
of the written response may be sent by facsimile, but the original also 
must be sent to the Office of Foreign Assets Control Enforcement 
Division by mail or courier and must be postmarked or date-stamped in 
accordance with paragraph (b)(2) of this section.
    (c) Settlement. Settlement discussion may be initiated by the 
Office of Foreign Assets Control, the alleged violator, or the alleged 
violator's authorized

[[Page 11735]]

representative. For a description of practices with respect to 
settlement, see Appendix A to part 501 of this chapter.
    (d) Guidelines. Guidelines for the imposition or settlement of 
civil penalties by the Office of Foreign Assets Control are contained 
in Appendix A to part 501 of this chapter.
    (e) Representation. A representative of the alleged violator may 
act on behalf of the alleged violator, but any oral communication with 
the Office of Foreign Assets Control prior to a written submission 
regarding the specific allegations contained in the Pre-Penalty Notice 
must be preceded by a written letter of representation, unless the Pre-
Penalty Notice was served upon the alleged violator in care of the 
representative.


Sec.  561.703  Penalty imposition.

    If, after considering any timely written response to the Pre-
Penalty Notice and any relevant facts, the Office of Foreign Assets 
Control determines that there was a violation by the alleged violator 
named in the Pre-Penalty Notice and that a civil monetary penalty is 
appropriate, the Office of Foreign Assets Control may issue a Penalty 
Notice to the violator containing a determination of the violation and 
the imposition of the monetary penalty. For additional details 
concerning issuance of a Penalty Notice, see Appendix A to part 501 of 
this chapter. The issuance of the Penalty Notice shall constitute final 
agency action. The violator has the right to seek judicial review of 
that final agency action in federal district court.


Sec.  561.704  Administrative collection; referral to United States 
Department of Justice.

    In the event that the violator does not pay the penalty imposed 
pursuant to this part, the matter may be referred for administrative 
collection measures by the Department of the Treasury or to the United 
States Department of Justice for appropriate action to recover the 
penalty in a civil suit in a federal district court.

Subpart H-Procedures


Sec.  561.801  Procedures.

    For license application procedures and procedures relating to 
amendments, modifications, or revocations of licenses; administrative 
decisions; rulemaking; and requests for documents pursuant to the 
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see 
part 501, subpart E, of this chapter.


Sec.  561.802  Delegation by the Secretary of the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to subsections 104(c), (d), (h), or (i) of the Comprehensive 
Iran Sanctions, Accountability, and Divestment Act of 2010 (Pub. L. 
111-195) (22 U.S.C. 8501-8551), pursuant to section 8 of Executive 
Order 13553 of September 28, 2010 (3 CFR, 2010 Comp., p. 253), or 
pursuant to section 10 of Executive Order 13599 of February 5, 2012, 
and any action of the Secretary of the Treasury described in this part, 
may be taken by the Director of the Office of Foreign Assets Control or 
by any other person to whom the Secretary of the Treasury has delegated 
authority so to act.


Sec.  561.803  Consultations.

    In implementing section 104 of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (Pub. L. 111-195) (22 U.S.C. 
8501-8551), the Secretary of the Treasury shall consult with the 
Secretary of State and may, in the sole discretion of the Secretary of 
the Treasury, consult with such other agencies and departments and such 
other interested parties as the Secretary considers appropriate.

Subpart I--Paperwork Reduction Act


Sec.  561.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507) of the information 
collections relating to the recordkeeping and reporting requirements of 
Sec.  561.601, licensing procedures (including those pursuant to 
statements of licensing policy), and other procedures, see Sec.  
501.901 of this chapter. The information collection in Sec.  561.504(b) 
has been approved by OMB and assigned control number 1505-0243. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a valid 
control number assigned by OMB.

    Dated: February 21, 2012.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
    Approved: February 21, 2012.
David S. Cohen,
Under Secretary, Office of Terrorism and Financial Intelligence, 
Department of the Treasury.
[FR Doc. 2012-4472 Filed 2-24-12; 8:45 am]
BILLING CODE 4810-AL-P