Authorizing Additional Sanctions With Respect to Iran, 45897-45902 [2012-19055]

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• Executive Office of the President

[Federal Register Volume 77, Number 149 (Thursday, August 2, 2012)]
[Presidential Documents]
[Pages 45897-45902]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19055]




                        Presidential Documents 



Federal Register / Vol. 77, No. 149 / Thursday, August 2, 2012 / 
Presidential Documents

[[Page 45897]]


                Executive Order 13622 of July 30, 2012

                
Authorizing Additional Sanctions With Respect to 
                Iran

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, including the International Emergency Economic 
                Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the 
                National Emergencies Act (50 U.S.C. 1601 et seq.), and 
                section 301 of title 3, United States Code,

                I, BARACK OBAMA, President of the United States of 
                America, in order to take additional steps with respect 
                to the national emergency declared in Executive Order 
                12957 of March 15, 1995, as relied upon for additional 
                steps in subsequent Executive Orders, particularly in 
                light of the Government of Iran's use of revenues from 
                petroleum, petroleum products, and petrochemicals for 
                illicit purposes, Iran's continued attempts to evade 
                international sanctions through deceptive practices, 
                and the unacceptable risk posed to the international 
                financial system by Iran's activities, hereby order:

                Section 1. (a) The Secretary of the Treasury, in 
                consultation with the Secretary of State, is hereby 
                authorized to impose on a foreign financial institution 
                the sanctions described in subsection (b) of this 
                section upon determining that the foreign financial 
                institution has knowingly conducted or facilitated any 
                significant financial transaction:

(i) with the National Iranian Oil Company (NIOC) or Naftiran Intertrade 
Company (NICO), except for a sale or provision to NIOC or NICO of the 
products described in section 5(a)(3)(A)(i) of the Iran Sanctions Act of 
1996 (Public Law 104-172), as amended, provided that the fair market value 
of such products is lower than the applicable dollar threshold specified in 
that provision;

(ii) for the purchase or acquisition of petroleum or petroleum products 
from Iran; or

(iii) for the purchase or acquisition of petrochemical products from Iran.

                    (b) With respect to any foreign financial 
                institution determined by the Secretary of the Treasury 
                in accordance with this section to meet the criteria 
                set forth in subsection (a)(i), (a)(ii), or (a)(iii) of 
                this section, the Secretary of the Treasury may 
                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 
                such foreign financial institution.
                    (c) Subsections (a)(i) and (ii) of this section 
                shall apply with respect to a significant financial 
                transaction conducted or facilitated by a foreign 
                financial institution only if:

(i) the President determines under subparagraphs (4)(B) and (C) of 
subsection 1245(d) of the National Defense Authorization Act for Fiscal 
Year 2012 (Public Law 112-81) (NDAA) 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; and

(ii) an exception under subparagraph 4(D) of subsection 1245(d) of the NDAA 
from the imposition of sanctions under paragraph (1) of that subsection 
does not apply with respect to the country with primary jurisdiction over 
the foreign financial institution.

                    (d) Subsection (a) of this section shall not apply 
                with respect to any person for conducting or 
                facilitating a transaction for the sale of food,

[[Page 45898]]

                medicine, or medical devices to Iran or when the 
                underlying transaction has been authorized by the 
                Secretary of the Treasury.
                    (e) The prohibitions in subsection (b) of this 
                section apply except to the extent provided by 
                statutes, or in regulations, orders, directives, or 
                licenses that may be issued pursuant to this order, and 
                notwithstanding any contract entered into or any 
                license or permit granted prior to the effective date 
                of this order.

                Sec. 2. (a) The Secretary of State, in consultation 
                with the Secretary of the Treasury, the Secretary of 
                Commerce, and the United States Trade Representative, 
                and with the President of the Export-Import Bank, the 
                Chairman of the Board of Governors of the Federal 
                Reserve System, and other agencies and officials as 
                appropriate, is hereby authorized to impose on a person 
                any of the sanctions described in section 3 or 4 of 
                this order upon determining that the person:

(i) knowingly, on or after the effective date of this order, engaged in a 
significant transaction for the purchase or acquisition of petroleum or 
petroleum products from Iran;

(ii) knowingly, on or after the effective date of this order, engaged in a 
significant transaction for the purchase or acquisition of petrochemical 
products from Iran;

(iii) is a successor entity to a person determined by the Secretary of 
State in accordance with this subsection to meet the criteria in subsection 
(a)(i) or (a)(ii) of this section;

(iv) owns or controls a person determined by the Secretary of State in 
accordance with this subsection to meet the criteria in subsection (a)(i) 
or (a)(ii) of this section, and had knowledge that the person engaged in 
the activities referred to in that subsection; or

(v) is owned or controlled by, or under common ownership or control with, a 
person determined by the Secretary of State in accordance with this 
subsection to meet the criteria in subsection (a)(i) or (a)(ii) of this 
section, and knowingly participated in the activities referred to in that 
subsection.

                    (b) Subsection (a)(i) of this section shall apply 
                with respect to a person only if:

(i) the President determines under subparagraphs (4)(B) and (C) of 
subsection 1245(d) of the NDAA 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; and

(ii) an exception under subparagraph 4(D) of subsection 1245(d) of the NDAA 
from the imposition of sanctions under paragraph (1) of that subsection 
does not apply with respect to the country with primary jurisdiction over 
the person.

                Sec. 3. When the Secretary of State, in accordance with 
                the terms of section 2 of this order, has determined 
                that a person meets any of the criteria described in 
                section 2 and has selected any of the sanctions set 
                forth below to impose on that person, the heads of 
                relevant agencies, in consultation with the Secretary 
                of State, shall take the following actions where 
                necessary to implement the sanctions imposed by the 
                Secretary of State:

                    (a) the Board of Directors of the Export-Import 
                Bank shall deny approval of the issuance of any 
                guarantee, insurance, extension of credit, or 
                participation in an extension of credit in connection 
                with the export of any goods or services to the 
                sanctioned person;
                    (b) agencies shall not issue any specific license 
                or grant any other specific permission or authority 
                under any statute that requires the prior review and 
                approval of the United States Government as a condition 
                for the export or reexport of goods or technology to 
                the sanctioned person;
                    (c) with respect to a sanctioned person that is a 
                financial institution:

[[Page 45899]]

(i) the Chairman of the Board of Governors of the Federal Reserve System 
and the President of the Federal Reserve Bank of New York shall take such 
actions as they deem appropriate, including denying designation, or 
terminating the continuation of any prior designation of, the sanctioned 
person as a primary dealer in United States Government debt instruments; or

(ii) agencies shall prevent the sanctioned person from serving as an agent 
of the United States Government or serving as a repository for United 
States Government funds; or

                    (d) agencies shall not procure, or enter into a 
                contract for the procurement of, any goods or services 
                from the sanctioned person.
                    (e) The prohibitions in subsections (a)-(d) of this 
                section apply except to the extent provided by 
                statutes, or in regulations, orders, directives, or 
                licenses that may be issued pursuant to this order, and 
                notwithstanding any contract entered into or any 
                license or permit granted prior to the effective date 
                of this order.

                Sec. 4. (a) When the Secretary of State, in accordance 
                with the terms of section 2 of this order, has 
                determined that a person meets any of the criteria 
                described in section 2 and has selected any of the 
                sanctions set forth below to impose on that person, the 
                Secretary of the Treasury, in consultation with the 
                Secretary of State, shall take the following actions 
                where necessary to implement the sanctions imposed by 
                the Secretary of State:

(i) prohibit any United States financial institution from making loans or 
providing credits to the sanctioned person totaling more than $10,000,000 
in any 12-month period, unless such person is engaged in activities to 
relieve human suffering and the loans or credits are provided for such 
activities;

(ii) prohibit any transactions in foreign exchange that are subject to the 
jurisdiction of the United States and in which the sanctioned person has 
any interest;

(iii) prohibit any transfers of credit or payments between financial 
institutions or by, through, or to any financial institution, to the extent 
that such transfers or payments are subject to the jurisdiction of the 
United States and involve any interest of the sanctioned person;

(iv) block 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 foreign 
branch, of the sanctioned person, and provide that such property and 
interests in property may not be transferred, paid, exported, withdrawn, or 
otherwise dealt in; or

(v) restrict or prohibit imports of goods, technology, or services, 
directly or indirectly, into the United States from the sanctioned person.

                    (b) The prohibitions in subsections (a)(i)-(a)(v) 
                of this section apply except to the extent provided by 
                statutes, or in regulations, orders, directives, or 
                licenses that may be issued pursuant to this order, and 
                notwithstanding any contract entered into or any 
                license or permit granted prior to the effective date 
                of this order.

                Sec. 5. (a) The Secretary of the Treasury, in 
                consultation with the Secretary of State, is hereby 
                authorized to impose on a person the measures described 
                in subsection (b) of this section upon determining that 
                the person has materially assisted, sponsored, or 
                provided financial, material, or technological support 
                for, or goods or services in support of, NIOC, NICO, or 
                the Central Bank of Iran, or the purchase or 
                acquisition of U.S. bank notes or precious metals by 
                the Government of Iran.

                    (b) With respect to any person determined by the 
                Secretary of the Treasury in accordance with subsection 
                (a) to meet the criteria set forth in subsection (a) of 
                this section, all property and interests in property 
                that are in the United States, that hereafter come 
                within the United States, or that are

[[Page 45900]]

                or hereafter come within the possession or control of 
                any United States person, including any foreign branch, 
                of such person are blocked and may not be transferred, 
                paid, exported, withdrawn, or otherwise dealt in.
                    (c) The prohibitions in subsection (b) of this 
                section apply except to the extent provided by 
                statutes, or in regulations, orders, directives, or 
                licenses that may be issued pursuant to this order, and 
                notwithstanding any contract entered into or any 
                license or permit granted prior to the effective date 
                of this order.

                Sec. 6. Subsection 1(a), section 2, and subsection 5(a) 
                of this order shall not apply with respect to any 
                person for conducting or facilitating a transaction 
                involving a natural gas development and pipeline 
                project initiated prior to the effective date of this 
                order to bring gas from Azerbaijan to Europe and Turkey 
                in furtherance of a production sharing agreement or 
                license awarded by a sovereign government other than 
                the Government of Iran before the effective date of 
                this order.

                Sec. 7. I hereby determine that, to the extent section 
                203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) may apply, 
                the making of donations of the type of articles 
                specified in such section by, to, or for the benefit of 
                any person whose property and interests in property are 
                blocked pursuant to subsection (a)(iv) of section 4 or 
                subsection (b) of section 5 of this order would 
                seriously impair my ability to deal with the national 
                emergency declared in Executive Order 12957, and I 
                hereby prohibit such donations as provided by 
                subsection (a)(iv) of section 4 and subsection (b) of 
                section 5 of this order.

                Sec. 8. The prohibitions in subsection (a)(iv) of 
                section 4 and subsection (b) of section 5 of this order 
                include, but are not limited to:

(i) the making of any contribution or provision of funds, goods, or 
services by, to, or for the benefit of any person whose property and 
interests in property are blocked pursuant to this order; and

(ii) the receipt of any contribution or provision of funds, goods, or 
services from any such person.

                    Sec. 9. (a) Any transaction that evades or avoids, 
                has the purpose of evading or avoiding, causes a 
                violation of, or attempts to violate any of the 
                prohibitions set forth in this order is prohibited.
                    (b) Any conspiracy formed to violate any of the 
                prohibitions set forth in this order is prohibited.

                Sec. 10. For the purposes of this order:

                    (a) the term ``person'' means an individual or 
                entity;
                    (b) the term ``entity'' means a partnership, 
                association, trust, joint venture, corporation, group, 
                subgroup, or other organization;
                    (c) the term ``United States person'' means any 
                United States citizen, permanent resident alien, entity 
                organized under the laws of the United States or any 
                jurisdiction within the United States (including 
                foreign branches), or any person in the United States;
                    (d) the term ``financial institution,'' as used in 
                sections 3 and 4 of this order, includes (i) a 
                depository institution (as defined in section 3(c)(1) 
                of the Federal Deposit Insurance Act) (12 U.S.C. 
                1813(c)(1)), including a branch or agency of a foreign 
                bank (as defined in section 1(b)(7) of the 
                International Banking Act of 1978) (12 U.S.C. 3101(7)); 
                (ii) a credit union; (iii) a securities firm, including 
                a broker or dealer; (iv) an insurance company, 
                including an agency or underwriter; and (v) any other 
                company that provides financial services;
                    (e) the term ``foreign financial institution,'' as 
                used in section 1 of this order, 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

[[Page 45901]]

                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 
                Secretary of the Treasury;
                    (f) the term ``United States financial 
                institution'' means a financial institution as defined 
                in subsection (d) of this section (including its 
                foreign branches) organized under the laws of the 
                United States or any jurisdiction within the United 
                States or located in the United States;
                    (g) the term ``Iran'' means the Government of Iran 
                and the territory of Iran and any other territory or 
                marine area, including the exclusive economic zone and 
                continental shelf, over which the Government of Iran 
                claims sovereignty, sovereign rights, or jurisdiction, 
                provided that the Government of Iran exercises partial 
                or total de facto control over the area or derives a 
                benefit from economic activity in the area pursuant to 
                international arrangements;
                    (h) the term ``Government of Iran'' includes the 
                Government of Iran, any political subdivision, agency, 
                or instrumentality thereof, including the Central Bank 
                of Iran, and any person owned or controlled by, or 
                acting for or on behalf of, the Government of Iran;
                    (i) the terms ``knowledge'' and ``knowingly,'' with 
                respect to conduct, a circumstance, or a result, mean 
                that a person has actual knowledge, or should have 
                known, of the conduct, the circumstance, or the result;
                    (j) the term ``sanctioned person'' means a person 
                on whom the Secretary of State, in accordance with the 
                terms of section 2 of this order, has determined to 
                impose sanctions pursuant to section 2;
                    (k) the term ``petroleum'' (also known as crude 
                oil) means 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;
                    (l) 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;
                    (m) the term ``petrochemical products'' includes 
                any aromatic, olefin, and synthesis gas, and any of 
                their derivatives, including ethylene, propylene, 
                butadiene, benzene, toluene, xylene, ammonia, methanol, 
                and urea;
                    (n) the terms ``National Iranian Oil Company'' and 
                ``NIOC'' mean the National Iranian Oil Company and any 
                entity owned or controlled by, or operating for or on 
                behalf of, the National Iranian Oil Company; and
                    (o) the terms ``Naftiran Intertrade Company'' and 
                ``NICO'' mean the Naftiran Intertrade Company and any 
                entity owned or controlled by, or operating for or on 
                behalf of, the Naftiran Intertrade Company.

                Sec. 11. For those persons whose property and interests 
                in property are blocked pursuant to this order who 
                might have a constitutional presence in the United 
                States, I find that because of the ability to transfer 
                funds or other assets instantaneously, prior notice to 
                such persons of measures to be taken pursuant to 
                subsection (a)(iv) of section 4 or subsection (b) of 
                section 5 of this order would render those measures 
                ineffectual. I therefore determine that for these 
                measures to be effective in addressing the national

[[Page 45902]]

                emergency declared in Executive Order 12957, there need 
                be no prior notice of an action taken pursuant to 
                subsection (a)(iv) of section 4 or subsection (b) of 
                section 5 of this order.

                Sec. 12. The Secretary of the Treasury, in consultation 
                with the Secretary of State, is hereby authorized to 
                take such actions, including the promulgation of rules 
                and regulations, and to employ all powers granted to 
                the President by IEEPA as may be necessary to carry out 
                the purposes of sections 1, 4, and 5 of this order. The 
                Secretary of the Treasury may redelegate any of these 
                functions to other officers and agencies of the United 
                States Government consistent with applicable law. All 
                agencies of the United States Government are hereby 
                directed to take all appropriate measures within their 
                authority to carry out the provisions of this order.

                Sec. 13. This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.

                Sec. 14. The measures taken pursuant to this order are 
                in response to actions of the Government of Iran 
                occurring after the conclusion of the 1981 Algiers 
                Accords, and are intended solely as a response to those 
                later actions.

                Sec. 15. This order is effective at 12:01 a.m. eastern 
                daylight time on July 31, 2012.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, July 30, 2012.

[FR Doc. 2012-19055
Filed 8-1-12; 8:45 am]
Billing code 3295-F2-P