Iranian Financial Sanctions Regulations, 66918-66920 [2012-27420]
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Federal Register / Vol. 77, No. 217 / Thursday, November 8, 2012 / Rules and Regulations
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.411(d)–4 is amended
by adding a new paragraph A–
2(b)(2)(xii) to read as follows:
■
§ 1.411(d)–4
benefits.
Section 411(d)(6) protected
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*
*
*
*
*
A–2: * * *
(b) * * *
(2) * * *
(xii) Prohibited payment option under
single-employer defined benefit plan of
plan sponsor in bankruptcy. A singleemployer plan that is covered under
section 4021 of the Employee
Retirement Income Security Act of 1974,
Public Law 93–406 (88 Stat. 829 (1974)),
as amended (ERISA), may be amended,
effective for a plan amendment that is
both adopted and effective after
November 8, 2012, to eliminate an
optional form of benefit that includes a
prohibited payment described in section
436(d)(5), provided that the following
conditions are satisfied on the
applicable amendment date (as defined
in § 1.411(d)–3(g)(4)):
(A) The enrolled actuary of the plan
has certified that the plan’s adjusted
funding target attainment percentage (as
defined in section 436(j)(2)) for the plan
year that contains the applicable
amendment date is less than 100
percent.
(B) The plan is not permitted to pay
any prohibited payment, due to
application of the requirements of
section 436(d)(2) of the Internal
Revenue Code and section 206(g)(3)(B)
of ERISA, because the plan sponsor is a
debtor in a bankruptcy case (that is, a
case under title 11, United States Code,
or under similar Federal or State law).
(C) The court overseeing the
bankruptcy case has issued an order,
after notice to the affected parties (as
defined in section 4001(a)(21) of ERISA)
and a hearing, within the meaning of 11
U.S.C. 102(1), finding that the adoption
of the amendment eliminating that
optional form of benefit is necessary to
avoid a distress termination of the plan
pursuant to section 4041(c) of ERISA or
an involuntary termination of the plan
pursuant to section 4042 of ERISA
before the plan sponsor emerges from
bankruptcy (or before the bankruptcy
case is otherwise completed).
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(D) The Pension Benefit Guaranty
Corporation has issued a determination
that—
(1) The adoption of the amendment
eliminating that optional form of benefit
is necessary to avoid a distress or
involuntary termination of the plan
before the plan sponsor emerges from
bankruptcy (or before the bankruptcy
case is otherwise completed); and
(2) The plan is not sufficient for
guaranteed benefits within the meaning
of section 4041(d)(2) of ERISA.
*
*
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*
Approved: November 2, 2012.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2012–27336 Filed 11–7–12; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 561
Iranian Financial Sanctions
Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control is amending the Iranian
Financial Sanctions Regulations in
order to implement sections 214
through 216 of the Iran Threat
Reduction and Syria Human Rights Act
of 2012.
DATES: Effective Date: November 8,
2012.
SUMMARY:
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
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
facsimile through a 24-hour fax-ondemand service, tel.: 202/622–0077.
Background
On August 10, 2012, the President
signed into law the Iran Threat
Reduction and Syria Human Rights Act
of 2012 (Pub. L. 112–158) (the ‘‘TRA’’),
in order to strengthen the sanctions
imposed against Iran. Sections 214 and
215 of the TRA amend section 104(c)(2)
of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of
2010 (Pub. L. 111–195) (22 U.S.C. 8501–
8551) (‘‘CISADA’’) by expanding the
categories of sanctionable activities set
forth in that section.
Section 104(c)(2) of CISADA sets forth
the activities for which the Secretary of
the Treasury is authorized to prohibit or
impose strict conditions on the opening
or maintaining in the United States of a
correspondent account or a payablethrough account by a foreign financial
institution if the Secretary finds that the
foreign financial institution knowingly
engages in one or more of those
activities. Under section 104(c)(2)(B) of
CISADA, facilitating the activities of a
person subject to financial sanctions
pursuant to a United Nations Security
Council resolution that imposes
sanctions with respect to Iran is listed
as a sanctionable activity. Section 214 of
the TRA amends section 104(c)(2)(B) of
CISADA by expanding this sanctionable
category to include facilitating the
activities of ‘‘a person acting on behalf
of or at the direction of, or owned or
controlled by,’’ a person sanctioned
under such United Nations Security
Council resolutions.
Section 215 of the TRA amends
section 104(c)(2)(E) of CISADA to
authorize the imposition of CISADA
sanctions on a foreign financial
institution that knowingly facilitates
significant transactions or provides
significant financial services for a
‘‘person’’ (formerly, a ‘‘financial
institution’’) whose property and
interests in property are blocked
pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et
seq.) in connection with Iran’s
proliferation of weapons of mass
destruction (‘‘WMD’’) or delivery
systems for WMD or Iran’s support for
international terrorism.
Section 216 of the TRA amends
CISADA by adding new section 104A
after section 104 of CISADA. That new
section requires the Secretary of the
Treasury to revise the regulations
prescribed under CISADA section 104(c)
to apply, to the same extent that they
apply to a foreign financial institution
found to knowingly engage in an
activity described in CISADA section
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104(c)(2), to a foreign financial
institution that the Secretary of the
Treasury finds (1) Knowingly facilitates,
or participates or assists in, an activity
described in section 104(c)(2) of
CISADA; (2) attempts or conspires to
facilitate or participate in such an
activity; or (3) is owned or controlled by
a foreign financial institution that the
Secretary finds knowingly engages in
such an activity.
The Department of the Treasury’s
Office of Foreign Assets Control
(‘‘OFAC’’) originally published the
Iranian Financial Sanctions Regulations,
31 CFR part 561 (the ‘‘IFSR’’), on August
16, 2010, to implement sections 104(c)
and (d) and other related provisions of
CISADA (75 FR 49836). On February 27,
2012, OFAC amended the IFSR and
reissued them in their entirety, in order
to implement section 1245(d) of the
National Defense Authorization Act for
Fiscal Year 2012 (Pub. L. 112–81),
which provides for the imposition of
sanctions with respect to the Central
Bank of Iran and designated Iranian
financial institutions (77 FR 11724).
Today, OFAC is further amending the
IFSR to implement the changes to
CISADA made by sections 214 through
216 of the TRA. OFAC is revising
section 561.201(a)(2) of the IFSR to
incorporate the change made by section
214 of the TRA. Section 561.201(a)(5)(ii)
and the note to paragraph (a)(5) are
being revised to incorporate the change
made by section 215 of the TRA. OFAC
is revising the chapeau of section
561.201 and adding new paragraph
(a)(6) to incorporate the change made by
section 216 of the TRA.
In addition, OFAC is amending the
definitions of foreign financial
institution and Iranian financial
institution in, respectively, sections
561.308 and 561.320 of the IFSR. OFAC
is amending these definitions to add
‘‘dealers in precious metals, stones, or
jewels’’ to the examples of entities
included in the definitions.
Public Participation
Because the amendment of the IFSR
involves 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.
Paperwork Reduction Act
The collection of information in
section 561.601 of the IFSR is made
pursuant to OFAC’s Reporting,
VerDate Mar<15>2010
14:30 Nov 07, 2012
Jkt 229001
Procedures and Penalties Regulations,
31 CFR part 501. Pursuant to the
Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of
information have been approved by the
Office of Management and Budget
(‘‘OMB’’) under control number 1505–
0164. See 31 CFR 501.901. The
collection of information in section
561.504(b) of the IFSR has been
approved by OMB under 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 the collection of
information displays a valid control
number.
List of Subjects in 31 CFR Part 561
Administrative practice and
procedure, Banking, Banks, Brokers,
Electronic funds transfers, Financial
institutions, Foreign banking, Foreign
trade, International organizations,
Investments, Iran, Jewels, Loans,
Precious metals, Securities.
For the reasons set forth in the
preamble, the Department of the
Treasury’s Office of Foreign Assets
Control amends part 561 of 31 CFR
chapter V as follows:
PART 561—IRANIAN FINANCIAL
SANCTIONS REGULATIONS
1. The authority citation for part 561
is revised to read as follows:
■
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; Pub. L. 112–158, 126 Stat. 1214;
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 B—Prohibitions
2. Amend § 561.201 by revising the
introductory text, paragraphs (a)(2),
(a)(4), and (a)(5)(ii), and the Note to
paragraph (a)(5) of § 561.201 and adding
new paragraph (a)(6) to read as follows:
■
§ 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 (a)(6) of this
section, attempts or conspires to
facilitate or participate in one or more
of such activities, or is owned or
controlled by a foreign financial
institution that the Secretary finds
knowingly engages in one or more of
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66919
such activities, 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’’), as amended by the Iran
Threat Reduction and Syria Human
Rights Act of 2012 (Pub. L. 112–158),
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 payablethrough 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) * * *
(2) Facilitates the activities of—
(i) 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; or
(ii) A person acting on behalf of or at
the direction of, or owned or controlled
by, a person described in paragraph
(a)(2)(i) 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
(a)(2) of this section;
(5) * * *
(ii) A person 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; or
Note to paragraph (a)(5) of § 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
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66920
Federal Register / Vol. 77, No. 217 / Thursday, November 8, 2012 / Rules and Regulations
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 tags
‘‘[NPWMD][IRGC]’’ at the end of its entry on
the SDN List. Persons 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 § 561.405
concerning entities that may not be listed on
the SDN List but whose property and
interests in property are nevertheless
blocked.
(6) Facilitates, or participates or
assists in, an activity described in
paragraphs (a)(1) through (a)(5) of this
section, including by acting on behalf
of, at the direction of, or as an
intermediary for, or otherwise assisting,
another person with respect to the
activity.
*
*
*
*
*
Subpart C—General Definitions
■
3. Revise § 561.308 to read as follows:
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§ 561.308
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,
dealers in precious metals, stones, or
jewels, and holding companies,
affiliates, or subsidiaries of any of the
14:30 Nov 07, 2012
Jkt 229001
§ 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, dealers in
precious metals, stones, or jewels, and
holding companies, affiliates, or
subsidiaries of any of the foregoing.
Dated: November 6, 2012.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2012–27420 Filed 11–7–12; 8:45 am]
Foreign financial institution.
VerDate Mar<15>2010
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.
■ 4. Revise § 561.320 to read as follows:
BILLING CODE 4811–AL–P
LIBRARY OF CONGRESS
Copyright Office
37 CFR Part 202
[Docket No. RM 2012–11]
Registration of Claims to Copyright:
Group Registration of Serial Issues
Filed Electronically
Copyright Office, Library of
Congress.
ACTION: Interim regulations.
AGENCY:
The Copyright Office is
adopting interim regulations that allow
groups of related serial issues to be filed
through the Office’s electronic
registration system. This interim rule
SUMMARY:
PO 00000
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will also allow applicants for groups of
related serials, in certain circumstances,
to mail physical deposit copies of the
serial issues upon submitting an
electronic application and payment,
when electronic deposit copies do not
exist. Regardless of the registration
option chosen, applicants must still
send two complimentary subscription
copies of the serial promptly to the
Library of Congress as a condition of
eligibility unless directed otherwise by
the Office. While filing electronically is
not mandatory, the Copyright Office
strongly urges applicants to use the
electronic filing option since it is more
efficient for both the user and the
agency.
DATES: Effective Date: November 8,
2012.
FOR FURTHER INFORMATION CONTACT:
Robert Kasunic, Deputy General
Counsel, or Kent Dunlap, Assistant
General Counsel, Telephone: (202) 707–
8380. Telefax: (202) 707–8366.
SUPPLEMENTARY INFORMATION:
Background
When Congress enacted its major
revision to the copyright law in 1976,
the Register of Copyrights was granted
discretion to provide for a single
registration for a group of related works.
17 U.S.C. 408(c)(1). In 1991, final
regulations became effective permitting
group registration of certain serial
publications. 55 FR 50556 (December 7,
1990). Under these regulations, issues of
serials published at intervals of a week
or longer within a three-month period
during the same calendar year can be
grouped and registered on a single
application and for a single fee. The
group registration privilege is
contingent upon the prompt submission
of two complimentary subscription
copies of each issue to the Library of
Congress. Additionally, several other
conditions apply, e.g., the registered
serials must be collective works by the
same author and claimant and must be
works made for hire. See 37 CFR
202.3(b)(6). The option for group
registration of related serials does not
allow the applicant to claim
contributions of component works that
were not made for hire.
Since the middle of 2007, the
Copyright Office has offered and
encouraged the option of submitting
applications for copyright registration
online. See Online Registration of
Claims to Copyright, 72 FR 36883 (July
6, 2007). When this electronic system
was implemented, it was limited to
basic registrations, i.e., claims in single
works, while the capacity to process
online group registration options was
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]]>Agencies
[Federal Register Volume 77, Number 217 (Thursday, November 8, 2012)]
[Rules and Regulations]
[Pages 66918-66920]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-27420]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control is amending the Iranian Financial Sanctions Regulations in
order to implement sections 214 through 216 of the Iran Threat
Reduction and Syria Human Rights Act of 2012.
DATES: Effective Date: November 8, 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 August 10, 2012, the President signed into law the Iran Threat
Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-158) (the
``TRA''), in order to strengthen the sanctions imposed against Iran.
Sections 214 and 215 of the TRA amend section 104(c)(2) of the
Comprehensive Iran Sanctions, Accountability, and Divestment Act of
2010 (Pub. L. 111-195) (22 U.S.C. 8501-8551) (``CISADA'') by expanding
the categories of sanctionable activities set forth in that section.
Section 104(c)(2) of CISADA sets forth the activities for which the
Secretary of the Treasury is authorized to prohibit or impose strict
conditions on the opening or maintaining in the United States of a
correspondent account or a payable-through account by a foreign
financial institution if the Secretary finds that the foreign financial
institution knowingly engages in one or more of those activities. Under
section 104(c)(2)(B) of CISADA, facilitating the activities of a person
subject to financial sanctions pursuant to a United Nations Security
Council resolution that imposes sanctions with respect to Iran is
listed as a sanctionable activity. Section 214 of the TRA amends
section 104(c)(2)(B) of CISADA by expanding this sanctionable category
to include facilitating the activities of ``a person acting on behalf
of or at the direction of, or owned or controlled by,'' a person
sanctioned under such United Nations Security Council resolutions.
Section 215 of the TRA amends section 104(c)(2)(E) of CISADA to
authorize the imposition of CISADA sanctions on a foreign financial
institution that knowingly facilitates significant transactions or
provides significant financial services for a ``person'' (formerly, a
``financial institution'') whose property and interests in property are
blocked pursuant to the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.) in connection with Iran's proliferation of weapons
of mass destruction (``WMD'') or delivery systems for WMD or Iran's
support for international terrorism.
Section 216 of the TRA amends CISADA by adding new section 104A
after section 104 of CISADA. That new section requires the Secretary of
the Treasury to revise the regulations prescribed under CISADA section
104(c) to apply, to the same extent that they apply to a foreign
financial institution found to knowingly engage in an activity
described in CISADA section
[[Page 66919]]
104(c)(2), to a foreign financial institution that the Secretary of the
Treasury finds (1) Knowingly facilitates, or participates or assists
in, an activity described in section 104(c)(2) of CISADA; (2) attempts
or conspires to facilitate or participate in such an activity; or (3)
is owned or controlled by a foreign financial institution that the
Secretary finds knowingly engages in such an activity.
The Department of the Treasury's Office of Foreign Assets Control
(``OFAC'') originally published the Iranian Financial Sanctions
Regulations, 31 CFR part 561 (the ``IFSR''), on August 16, 2010, to
implement sections 104(c) and (d) and other related provisions of
CISADA (75 FR 49836). On February 27, 2012, OFAC amended the IFSR and
reissued them in their entirety, in order to implement section 1245(d)
of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L.
112-81), which provides for the imposition of sanctions with respect to
the Central Bank of Iran and designated Iranian financial institutions
(77 FR 11724).
Today, OFAC is further amending the IFSR to implement the changes
to CISADA made by sections 214 through 216 of the TRA. OFAC is revising
section 561.201(a)(2) of the IFSR to incorporate the change made by
section 214 of the TRA. Section 561.201(a)(5)(ii) and the note to
paragraph (a)(5) are being revised to incorporate the change made by
section 215 of the TRA. OFAC is revising the chapeau of section 561.201
and adding new paragraph (a)(6) to incorporate the change made by
section 216 of the TRA.
In addition, OFAC is amending the definitions of foreign financial
institution and Iranian financial institution in, respectively,
sections 561.308 and 561.320 of the IFSR. OFAC is amending these
definitions to add ``dealers in precious metals, stones, or jewels'' to
the examples of entities included in the definitions.
Public Participation
Because the amendment of the IFSR involves 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.
Paperwork Reduction Act
The collection of information in section 561.601 of the IFSR is
made pursuant to OFAC's Reporting, Procedures and Penalties
Regulations, 31 CFR part 501. Pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3507), those collections of information have been
approved by the Office of Management and Budget (``OMB'') under control
number 1505-0164. See 31 CFR 501.901. The collection of information in
section 561.504(b) of the IFSR has been approved by OMB under 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 the
collection of information displays a valid control number.
List of Subjects in 31 CFR Part 561
Administrative practice and procedure, Banking, Banks, Brokers,
Electronic funds transfers, Financial institutions, Foreign banking,
Foreign trade, International organizations, Investments, Iran, Jewels,
Loans, Precious metals, Securities.
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends part 561 of 31 CFR
chapter V as follows:
PART 561--IRANIAN FINANCIAL SANCTIONS REGULATIONS
0
1. The authority citation for part 561 is revised to read as follows:
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; Pub. L. 112-158, 126 Stat. 1214; 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 B--Prohibitions
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2. Amend Sec. 561.201 by revising the introductory text, paragraphs
(a)(2), (a)(4), and (a)(5)(ii), and the Note to paragraph (a)(5) of
Sec. 561.201 and adding new paragraph (a)(6) to read as follows:
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 (a)(6) of this
section, attempts or conspires to facilitate or participate in one or
more of such activities, or is owned or controlled by a foreign
financial institution that the Secretary finds knowingly engages in one
or more of such activities, 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''), as amended by the Iran Threat Reduction and
Syria Human Rights Act of 2012 (Pub. L. 112-158), 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) * * *
(2) Facilitates the activities of--
(i) 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; or
(ii) A person acting on behalf of or at the direction of, or owned
or controlled by, a person described in paragraph (a)(2)(i) 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 (a)(2) of this section;
(5) * * *
(ii) A person 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; or
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
[[Page 66920]]
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 tags ``[NPWMD][IRGC]'' at the end of its entry on the
SDN List. Persons 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.
(6) Facilitates, or participates or assists in, an activity
described in paragraphs (a)(1) through (a)(5) of this section,
including by acting on behalf of, at the direction of, or as an
intermediary for, or otherwise assisting, another person with respect
to the activity.
* * * * *
Subpart C--General Definitions
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3. Revise Sec. 561.308 to read as follows:
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, dealers in precious metals, stones,
or jewels, 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.
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4. Revise Sec. 561.320 to read as follows:
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,
dealers in precious metals, stones, or jewels, and holding companies,
affiliates, or subsidiaries of any of the foregoing.
Dated: November 6, 2012.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2012-27420 Filed 11-7-12; 8:45 am]
BILLING CODE 4811-AL-P
