Iranian Financial Sanctions Regulations, 16403-16410 [2013-05766]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[Federal Register Volume 78, Number 51 (Friday, March 15, 2013)]
[Rules and Regulations]
[Pages 16403-16410]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-05766]


=======================================================================
-----------------------------------------------------------------------

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 (the 
``IFSR'') to implement sections 503 and 504 of the Iran Threat 
Reduction and Syria Human Rights Act of 2012, which amended section 
1245 of the National Defense Authorization Act for Fiscal Year 2012; 
and section 1, portions of section 6, and other related provisions of 
Executive Order 13622 of July 30, 2012.

DATES: Effective Date: March 15, 2013.

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 Regulatory 
Affairs, tel.: 202/622-4855, Assistant Director for Policy, tel.: 202/
622-, 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.treasury.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

    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 (75 FR 
49836), to implement subsections 104(c) and (d) and other related 
provisions of the Comprehensive Iran Sanctions, Accountability, and 
Divestment Act of 2010 (Pub. L. 111-195) (22 U.S.C. 8501-8551) 
(``CISADA''), which had been signed into law by the President on July 
1, 2010. Subsection 104(c) of CISADA required the Secretary of the 
Treasury 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.
    On February 27, 2012, OFAC amended the IFSR and reissued them in 
their entirety (77 FR 11724), in order to implement section 1245(d) of 
the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 
112-81) (22 U.S.C. 8513a) (``NDAA''), which had been signed into law by 
the President on December 31, 2011. Section 1245(d)(1) of the NDAA 
provides for 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 the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
(``IEEPA'').
    Section 1245(d)(2) of the NDAA excepted transactions for the sale 
of food, medicine, or medical devices to Iran from the imposition of 
sanctions under section 1245(d)(1). Section 1245(d)(3) of the NDAA 
limited the imposition of sanctions pursuant to section 1245(d)(1) on 
foreign financial institutions owned or controlled by the government of 
a foreign country, including the central bank of a foreign country, to 
significant transactions for the sale or purchase of petroleum or 
petroleum products to or from Iran. Section 1245(d)(4)(D) of the NDAA 
provided for an exception from the imposition of sanctions pursuant to 
section 1245(d)(1) 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 crude oil purchases from Iran 
during the 180-day period preceding the report.
    On July 30, 2012, invoking the authority of, inter alia, IEEPA, the 
President issued Executive Order 13622, ``Authorizing Additional 
Sanctions With Respect to Iran'' (77 FR 45897, August 2, 2012) (``E.O. 
13622''). The President issued E.O. 13622 to take additional steps with 
respect to the national emergency declared in Executive Order 12957 of 
March 15, 1995, 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.
    Section 1(a) of E.O. 13622 authorizes the Secretary of the 
Treasury, in consultation with the Secretary of State and subject to 
certain exceptions, to impose correspondent and payable-through account 
sanctions on foreign financial institutions determined to have 
knowingly conducted or facilitated any significant financial 
transaction with the National Iranian Oil Company (``NIOC''); with 
Naftiran Intertrade Company (``NICO''); or for the purchase or 
acquisition of petroleum, petroleum products, or petrochemical products 
from Iran. Section 10 of E.O. 13622 defines the terms NIOC and NICO as 
including any entity owned or controlled by, or operating for or on 
behalf of, respectively, NIOC and NICO.
    Section 1(c) of E.O. 13622 provides that sanctions under 
subsections 1(a)(i) and (ii) for transactions with NIOC or NICO or for 
the purchase or acquisition of petroleum or petroleum products from 
Iran will apply only if (1) the President determines under subsections 
1245(d)(4)(B) and (C) 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 purchase of petroleum and 
petroleum products from Iran by or through foreign financial 
institutions; and (2) a significant reduction exception under 
subsection 1245(d)(4)(D) of the NDAA does not apply with respect to the 
transaction.
    Thus, transactions with NIOC or NICO or for the purchase or 
acquisition of petroleum or petroleum products from Iran are excepted 
from the imposition of sanctions under section 1(a) of E.O. 13622 if 
the transaction qualifies for the significant reduction exception under 
subsection 1245(d)(4)(D) of the NDAA. Transactions for the purchase or 
acquisition of petrochemical products from Iran are subject to 
sanctions under section 1(a) of E.O. 13622 regardless of whether the 
President makes the determination that there is a sufficient supply of 
petroleum and petroleum

[[Page 16404]]

products under subsections 1245(d)(4)(B) and (C) of the NDAA or whether 
a significant reduction exception under subsection 1245(d)(4)(D) of the 
NDAA applies. Section 1(d) of E.O. 13622 also provided an exemption 
from sanctions under section 1(a) for transactions for the sale of 
food, medicine, or medical devices to Iran or when the underlying 
transaction has been authorized by the Secretary of the Treasury. 
Executive Order 13628 of October 9, 2012 (77 FR 62139, October 12, 
2012), amended E.O. 13622 by adding the sale of agricultural 
commodities to Iran to the list of exempt transactions in section 1(d) 
and by making other conforming changes to E.O. 13622.
    Section 6 of E.O. 13622 provides that section 1(a) of the order, 
among other specified provisions, shall not apply to any person for 
conducting or facilitating a transaction involving a natural gas 
development and pipeline project initiated prior to July 31, 2012, to 
bring gas from Azerbaijan to Europe and Turkey, as described in section 
6. Although it is not named in the section, section 6 refers to the 
Shah Deniz natural gas field in Azerbaijan's sector of the Caspian Sea 
and related pipeline projects to bring the gas from Azerbaijan to 
Europe and Turkey.
    On August 10, 2012, the President signed into law the Iran Threat 
Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-158) (22 
U.S.C. 8701-8795) (``TRA''), which, inter alia, amends section 1245(d) 
of the NDAA. Section 503(a) of the TRA adds sales of agricultural 
commodities to Iran to the list of excepted transactions under section 
1245(d)(2) of the NDAA, effective as if originally included in the 
NDAA. Section 503(b) of the TRA revises the timing of the 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 is 
required to submit to Congress. Beginning September 1, 2012, this 
report is to be submitted to Congress not later than October 25, 2012, 
and the last Thursday of every other month thereafter.
    Section 504 of the TRA revises the types of foreign financial 
institutions and transactions that can be sanctioned under section 
1245(d)(1) of the NDAA. Specifically, section 504(a)(1)(A) of the TRA 
amends the limitation on the imposition of sanctions in section 
1245(d)(3) of the NDAA so that it only applies to foreign central banks 
and not to other government-owned or -controlled foreign financial 
institutions. As a result, foreign financial institutions owned or 
controlled by the government of a foreign country, other than central 
banks, are subject to sanctions under section 1245(d)(1) of the NDAA 
(with certain exceptions, including the sale of agricultural 
commodities, food, medicine and medical devices) with respect to any 
significant financial transaction conducted or facilitated on or after 
February 6, 2013, including transactions that are not for the sale or 
purchase of petroleum or petroleum products to or from Iran.
    Section 504(a)(1)(B) of the TRA amends section 1245(d)(4)(D) of the 
NDAA to limit the exception from sanctions imposed pursuant to section 
1245(d)(1) previously available for countries determined to have 
significantly reduced their crude oil purchases from Iran to certain 
transactions conducted or facilitated by foreign financial institutions 
located in significantly reducing jurisdictions. This amendment applies 
with respect to financial transactions conducted or facilitated on or 
after February 6, 2013. As amended, the exception from sanctions set 
forth in NDAA section 1245(d)(4)(D) applies to a financial transaction 
conducted or facilitated by a foreign financial institution if (1) the 
financial transaction is only for bilateral trade in goods or services 
between the country with primary jurisdiction over the foreign 
financial institution and Iran; and (2) any funds owed to Iran as a 
result of such trade are credited to an account located in the country 
with primary jurisdiction over the foreign financial institution. 
Furthermore, in order for this exception to apply to the financial 
transaction, there must be in effect a determination from the President 
either that the country with primary jurisdiction over the foreign 
financial institution has significantly reduced its crude oil purchases 
from Iran; or, in the case of a country that has previously received an 
exception under section 1245(d)(4)(D) of the NDAA, that, after 
receiving the exception, it has reduced its crude oil purchases from 
Iran to zero.
    In addition, section 504 of the TRA amends section 1245(h) of the 
NDAA by adding a definition of the terms ``reduce significantly,'' 
``significant reduction,'' and ``significantly reduced.'' The 
definition provides that these terms, used with respect to purchases 
from Iran of petroleum and petroleum products, include a reduction in 
such purchases in terms of price or volume toward a complete cessation 
of such purchases.
    Today, OFAC is making a number of changes to the IFSR to implement 
the amendments to section 1245(d) of the NDAA made by sections 503 and 
504 of the TRA, as well as to implement section 1 and related 
provisions of E.O. 13622. To implement section 503 of the TRA, OFAC is 
amending redesignated paragraph (g) (formerly paragraph (f)) of section 
561.203 in Subpart B to add the sale of agricultural commodities to 
Iran to the list of transactions exempt from the sanctions imposed 
pursuant to section 561.203(a). OFAC also is amending section 561.327 
in subpart C to add a definition of the term agricultural commodities. 
In addition, the Note to redesignated paragraph (h) (formerly paragraph 
(g)) of section 561.203 is being revised to reflect the change in the 
due dates of reports that the Administrator of the Energy Information 
Administration is required to submit to Congress, pursuant to section 
1245(d)(4)(A) of the NDAA, regarding the availability and price of 
petroleum and petroleum products produced in countries other than Iran.
    To implement section 504 of the TRA, OFAC is amending section 
561.203 in subpart B by revising paragraph (d) and redesignated 
paragraph (f) (formerly paragraph (e)), and adding new paragraph (e), 
to eliminate the distinction between foreign government-owned or -
controlled financial institutions (other than central banks) and 
privately owned financial institutions with respect to the types of 
transactions that would subject them to sanctions. Both types of 
financial institutions are now subject to sanctions under section 
561.203(a) for any significant transactions knowingly conducted or 
facilitated with the Central Bank of Iran or other designated Iranian 
financial institutions, whether or not the transactions are for the 
sale or purchase of petroleum or petroleum products to or from Iran. 
The revision to redesignated paragraph (f) (formerly paragraph (e)) of 
section 561.203 clarifies that foreign central banks are the only 
institutions on which sanctions may be imposed only insofar as they 
engage in financial transactions for the sale or purchase of petroleum 
or petroleum products to or from Iran.
    OFAC is revising redesignated paragraph (i) (formerly paragraph 
(h)) of section 561.203 to clarify that the significant reduction 
exception extends to countries that, having previously received a 
significant reduction determination, are determined to have reduced 
their imports of Iranian crude oil to zero during a subsequent 
reporting period. OFAC is adding new section 561.328 to Subpart C to 
define the terms

[[Page 16405]]

reduce significantly, significantly reduced, and significant reduction, 
used with respect to purchases from Iran of petroleum and petroleum 
products, as set forth in section 504(a)(2)(B) of the TRA.
    In addition, OFAC is adding new paragraphs (j) and (k) to section 
561.203 to implement the narrowing of the scope of the significant 
reduction exception, mandated by section 504(a)(1)(B) of the TRA, to 
cover only certain financial transactions for bilateral trade between 
Iran and the significantly reducing country. As set forth in new 
paragraphs (j) and (k) of section 561.203, the significant reduction 
exception is applicable to a qualifying bilateral trade transaction 
only if any funds owed to the country with primary jurisdiction over 
the foreign financial institution are paid to specified classes of 
payees and certain restrictions are placed on the funds owed to Iran in 
order to ensure that they remain in that country. Paragraph (k) of 
section 561.203 further specifies that funds owed to Iran from Iranian-
origin exports to the country with primary jurisdiction over the 
foreign financial institution facilitating the transaction under the 
significant reduction exception may now be used only to pay for exports 
to Iran of goods or services that originate in that country. New Note 2 
to section 561.203 explains that since transactions for the sale of 
agricultural commodities, food, medicine, or medical devices to Iran 
are not sanctionable under the section 561.203(a), the funds owed to 
Iran from Iranian-origin exports to the significantly reducing country 
may also be used to pay for the sale and export to Iran of agricultural 
commodities, food, medicine, or medical devices from third countries.
    OFAC is adding new interpretive section 561.408 to Subpart D of the 
IFSR to explain what is meant by the requirement that goods or services 
originate in a country.
    To implement section 1 of E.O. 13622, OFAC is adding new section 
561.204 to Subpart B of the IFSR. Subject to certain exceptions, 
section 561.204 authorizes the Secretary of the Treasury to prohibit or 
impose strict conditions 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 foreign financial institution 
determined to have knowingly conducted or facilitated any significant 
financial transaction with NIOC, NICO, or any entity owned or 
controlled by, or operating for or on behalf of, NIOC or NICO, or for 
the purchase or acquisition of petroleum, petroleum products, or 
petrochemical products from Iran.
    In addition, OFAC is adding new section 561.205 to Subpart B of the 
IFSR. This section sets forth the prohibition on any transaction, on or 
after the applicable effective date, that evades or avoids, has the 
purpose of evading or avoiding, or attempts to violate any of the 
prohibitions in the IFSR and on any conspiracy formed to violate any 
such prohibitions. Finally, OFAC is amending the IFSR to add 
definitions and make other technical and conforming changes.

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 collections of information related to the IFSR are contained in 
31 CFR part 501 (the ``Reporting, Procedures and Penalties 
Regulations''). 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 under control number 1505-0164. 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, Banks, Banking, Brokers, 
Foreign trade, Investments, Loans, Petrochemicals, Petroleum, Petroleum 
products, Securities, Iran.

    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 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C. 
8701-8795); 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; E.O. 13622, 77 FR 45897, August 2, 2012; 
E.O. 13628, 77 FR 62139, October 12, 2012.

Subpart B--Prohibitions

0
2. Amend Sec.  561.203 by:
0
a. Revising paragraphs (a) introductory text and (d).
0
b. Redesignating paragraphs (e) through (h) as paragraphs (f) through 
(i) and revising redesignated paragraphs (f) through (i).
0
c. Adding new paragraphs (e), (j), and (k) and a new Note to paragraphs 
(j) and (k).
0
d. Redesignating the Note to Sec.  561.203 as Note 1 to Sec.  561.203 
and revising redesignated Note 1.
0
e. Adding a new Note 2 to Sec.  561.203.
    The revisions and additions read as follows:


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 (k) 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) (22 U.S.C. 8513a) (the ``2012 NDAA''), as amended 
by the Iran Threat Reduction and Syria Human Rights Act of 2012 (Pub. 
L. 112-158) (22 U.S.C. 8701-8795) (the ``TRA''), the Secretary of the 
Treasury:
* * * * *
    (d) Privately owned foreign financial institutions. (1) Subject to 
the exceptions set forth in paragraphs (g) and (i) through (k) 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 (h) through (k) 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

[[Page 16406]]

of petroleum or petroleum products from Iran.
    (e) Government-owned or -controlled foreign financial institutions, 
excluding foreign central banks. (1) Subject to the exceptions and 
conditions set forth in paragraphs (h) through (k) 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 foreign financial institution owned or controlled by 
the government of a foreign country, excluding a central bank of a 
foreign country, on or after June 28, 2012, for the sale or purchase of 
petroleum or petroleum products to or from Iran.
    (2) Subject to the exceptions and conditions set forth in 
paragraphs (g) and (i) through (k) 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 foreign 
financial institution owned or controlled by the government of a 
foreign country, excluding a central bank of a foreign country, on or 
after February 6, 2013, that is not for the sale or purchase of 
petroleum or petroleum products to or from Iran.
    (f) Foreign central banks. Subject to the exceptions and conditions 
set forth in paragraphs (h) through (k) of this section, sanctions may 
be imposed pursuant to paragraph (a) of this section on a central bank 
of a foreign country only insofar as it engages in a financial 
transaction for the sale or purchase of petroleum or petroleum products 
to or from Iran conducted or facilitated on or after June 28, 2012.
    (g) 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 agricultural 
commodities, food, medicine, or medical devices to Iran.
    (h) 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 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 (h) of Sec.  561.203: Under Section 
1245(d)(4)(B) of the 2012 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 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 2012 
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 Intelligence, was to submit to 
Congress beginning not later than February 29, 2012, and every 60 
days thereafter. Beginning September 1, 2012, pursuant to section 
1245(d)(4)(A) of the 2012 NDAA, as amended by section 503(b) of the 
TRA, the report of the Administrator of the Energy Information 
Administration is to be submitted to Congress not later than October 
25, 2012, and the last Thursday of every other month thereafter.

    (i) Sanctions will not be imposed under paragraph (a) of this 
section with respect to a financial transaction described in paragraph 
(j) of this section that is conducted or facilitated by a foreign 
financial institution if, for the 180-day period during which the 
financial transaction is conducted or facilitated, the Secretary of 
State has determined and reported to Congress:
    (1) That the country with primary jurisdiction over the foreign 
financial institution has significantly reduced its crude oil purchases 
from Iran, thus qualifying for a ``significant reduction exception'' 
for the 180-day period during which the financial transaction is 
conducted or facilitated; or
    (2) That the country with primary jurisdiction over the foreign 
financial institution has received a significant reduction exception 
described in this paragraph in a previous period and, after receiving 
the exception, has reduced its crude oil purchases from Iran to zero 
during a subsequent 180-day reporting period.

    Note to paragraph (i) of Sec.  561.203: The Secretary of State 
is to determine whether a country qualifies for the ``significant 
reduction exception'' and report such determination to Congress not 
later than 90 days after the date on which the President makes the 
initial determination referenced in paragraph (h) of this section, 
and every 180 days thereafter. Accordingly, a significant reduction 
exception covers a period of 180 days.

    (j) A financial transaction conducted or facilitated by a foreign 
financial institution is described in this paragraph (j) if:
    (1) The financial transaction is only for trade in goods or 
services that either originate in the country with primary jurisdiction 
over the foreign financial institution and are exported and sold 
directly to Iran or originate in Iran and are exported and sold 
directly to the country with primary jurisdiction over the foreign 
financial institution;
    (2) Any funds owed to the country with primary jurisdiction over 
the foreign financial institution as a result of such trade are paid 
to:
    (i) Individuals who are citizens, nationals, or permanent residents 
of the country with primary jurisdiction over the foreign financial 
institution; or
    (ii) Entities organized under the laws of the country with primary 
jurisdiction over the foreign financial institution that are not the 
Government of Iran, as defined in Sec.  561.321;
    (3) Any funds owed to Iran as a result of such trade are subject to 
the terms and conditions set forth in paragraph (k) of this section; 
and
    (4) Funds owed as a result of such trade are not credited to an 
account held at any financial institution whose name appears on 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.
    (k) In order for a transaction to qualify for the significant 
reduction exception from the sanctions imposed under paragraph (a) of 
this section described in paragraph (i), all funds owed to Iran as a 
result of a trade transaction described in paragraph (j)(1) of this 
section must be subject to the following conditions and restrictions:
    (1) The funds must be credited to an account held at a foreign 
financial institution that conducted or facilitated the trade 
transaction described in paragraph (j)(1) of this section;
    (2) The funds must be credited to an account held in the country 
with primary jurisdiction over that foreign financial institution;
    (3) The funds must be credited to an account held in the name of 
the Central Bank of Iran, the Iranian party to the trade transaction, 
or an Iranian financial institution that is not a designated Iranian 
financial institution;

[[Page 16407]]

    (4) Payments from the funds may be made only in the manner and to 
the persons specified in paragraph (k)(5) of this section for amounts 
owed to such persons for the direct exportation and sale to Iran of 
goods or services originating in the country with primary jurisdiction 
over the foreign financial institution holding the funds (but see Note 
2 to Sec.  561.203);
    (5) Payments from the funds for the goods or services exported and 
sold to Iran, as described in paragraph (k)(4) of this section, may be 
made only by check payable to or to the order of, or by transfer to an 
account at a foreign financial institution in the country with primary 
jurisdiction over the foreign financial institution holding the funds 
that is held in the name of:
    (i) Individuals who are citizens, nationals, or permanent residents 
of the country with primary jurisdiction over the foreign financial 
institution holding the funds; or
    (ii) Entities that are organized under the laws of that country;
    (6) The funds may not be withdrawn in cash, remitted to Iran or 
paid to anyone that is the Government of Iran, as defined in Sec.  
561.321, or credited to an account held at a financial institution 
whose name appears on the Part 561 List (see paragraph (j)(4) of this 
section); and
    (7) Other than in payment for goods or services exported and sold 
to Iran as set forth in paragraphs (k)(4) through (k)(6) of this 
section, the funds may be transferred from the initial account 
described in paragraphs (k)(1) through (k)(3) of this section only to 
another account that is held at the same foreign financial institution, 
located in the country with primary jurisdiction over that foreign 
financial institution, and subject to the following conditions and 
restrictions:
    (i) The account must be a separate, special purpose account holding 
only funds owed to Iran as a result of trade transactions that qualify 
for the significant reduction exception described in paragraph (i) of 
this section and that are conducted or facilitated by the foreign 
financial institution holding the account; and
    (ii) The conditions and restrictions on the funds owed to Iran set 
forth in paragraphs (k)(1) through (k)(6) of this section apply in full 
to the account described in this paragraph, except that the account 
must be held only in the name of the Central Bank of Iran or an Iranian 
financial institution that is not a designated Iranian financial 
institution.

    Note to paragraphs (j) and (k) of Sec.  561.203: 
    See Sec.  561.408 for a provision interpreting the phrases goods 
or services originating in the country with primary jurisdiction 
over the foreign financial institution and goods or services 
originating in Iran.


    Note 1 to Sec.  561.203: The sanctions regime described in Sec.  
561.203 is separate from the sanctions regimes described in 
Sec. Sec.  561.201 and 561.204 and applies in addition to, and 
independently of, the sanctions regimes imposed under Sec. Sec.  
561.201 and 561.204.


    Note 2 to Sec.  561.203: Paragraph (g) of this section excepts 
transactions for the sale of agricultural commodities, food, 
medicine, or medical devices to Iran from the imposition of 
sanctions under paragraph (a) of this section. Therefore, funds owed 
to Iran as a result of a trade transaction described in paragraph 
(j)(1) of this section may be used for the purchase and export to 
Iran of agricultural commodities, food, medicine, or medical devices 
regardless of the country from which such goods are purchased and 
regardless of where such goods originate, and payment from the funds 
for such goods may be made to exporters in countries other than the 
country with primary jurisdiction over the foreign financial 
institution holding the funds.


0
3. Add new Sec.  561.204 to subpart B to read as follows:


Sec.  561.204  Additional petroleum-related sanctions on certain 
foreign financial institutions.

    (a) Imposition of sanctions. Subject to the limitations, 
exceptions, and conditions set forth in paragraphs (d) through (f) of 
this section, upon a determination by the Secretary of the Treasury 
that a foreign financial institution has knowingly engaged in one or 
more of the activities described in paragraph (b) of this section, the 
Secretary of the Treasury may:
    (1) 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) 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) 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.  561.204: 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.


    Note 2 to paragraph (a) of Sec.  561.204: See Sec.  561.203(b) 
for examples of strict conditions that might be imposed, pursuant to 
paragraph (a)(2)(ii) of this section, on the maintaining of a pre-
existing correspondent account or payable-through account for a 
foreign financial institution with respect to which the Secretary of 
the Treasury's determination has been made.

    (b) Sanctionable activity. A foreign financial institution engages 
in an activity described in this paragraph if it knowingly conducts or 
facilitates any significant financial transaction:
    (1) With the National Iranian Oil Company (``NIOC''), the Naftiran 
Intertrade Company (``NICO''), or any entity owned or controlled by, or 
operating for or on behalf of, NIOC or NICO, except for a sale or 
provision to any of the foregoing of the products described in section 
5(a)(3)(A)(i) of the Iran Sanctions Act of 1996 (Pub. L. 104-172) (50 
U.S.C. 1701 note), as amended, provided that the fair market value of 
such products is lower than the applicable dollar threshold specified 
in that provision;

    Note to paragraph (b)(1) of Sec.  561.204: As of March 15, 2013, 
the products described in section 5(a)(3)(A)(i) of the Iran 
Sanctions Act of 1996 (Pub. L. 104-172) (50 U.S.C. 1701 note), as 
amended, are refined petroleum products, and for the fair market 
value of such products to be lower than the applicable dollar 
threshold specified in that provision the products sold or provided 
to NIOC, NICO, or any entity owned or controlled by, or operating 
for or on behalf of, NIOC or NICO, must have a fair market value of 
less than $1,000,000, and, during a 12-month period, an aggregate 
fair market value of less than $5,000,000.

    (2) For the purchase or acquisition of petroleum or petroleum 
products from Iran; or
    (3) For the purchase or acquisition of petrochemical products from 
Iran.
    (c) Prohibitions. (1) 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) A U.S. financial institution shall not maintain a correspondent 
account or payable-through account in the United

[[Page 16408]]

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) 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.
    (4) The prohibitions in paragraphs (c)(1) through (c)(3) of this 
section apply except to the extent transactions are authorized by 
regulations, orders, directives, or licenses that may be issued 
pursuant to this part, and notwithstanding any contracts entered into 
or any license or permit granted prior to the effective date of the 
prohibition.
    (d) Exempt activity. Sanctions will not be imposed under paragraph 
(a) of this section with respect to any foreign financial institution 
for:
    (1) Conducting or facilitating a transaction for the sale of 
agricultural commodities, food, medicine, or medical devices to Iran or 
when the underlying transaction has been authorized by the Office of 
Foreign Assets Control pursuant to any part of this chapter V; or
    (2) Conducting or facilitating a transaction involving a natural 
gas development and pipeline project initiated prior to July 31, 2012, 
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 July 31, 2012.

    Note to paragraph (d)(2) of Sec.  561.204: The natural gas 
development and pipeline project referred to in this paragraph is 
the project to develop the Shah Deniz natural gas field in 
Azerbaijan's sector of the Caspian Sea and related pipeline projects 
to bring the gas from Azerbaijan to Europe and Turkey.

    (e) The Secretary of the Treasury may impose sanctions pursuant to 
paragraph (a) of this section with respect to any significant financial 
transaction described in paragraphs (b)(1) and (b)(2) of this section 
only if the President makes the successive determinations that there is 
a sufficient supply of petroleum and petroleum products from countries 
other than Iran described in paragraph (h) of Sec.  561.203.
    (f) Sanctions will not be imposed under paragraph (a) of this 
section with respect to any significant financial transaction described 
in paragraphs (b)(1) and (b)(2) of this section that is conducted or 
facilitated by a foreign financial institution if:
    (1) For the 180-day period during which the financial transaction 
is conducted or facilitated, the Secretary of State has determined and 
reported to Congress:
    (i) That the country with primary jurisdiction over the foreign 
financial institution has significantly reduced its crude oil purchases 
from Iran, thus qualifying for the ``significant reduction exception'' 
for the 180-day period during which the financial transaction is 
conducted or facilitated; or
    (ii) That the country with primary jurisdiction over the foreign 
financial institution has received a significant reduction exception 
described in this paragraph in a previous period, and, after receiving 
the exception, has reduced its crude oil purchases from Iran to zero 
during a subsequent 180-day reporting period; and
    (2) The transaction satisfies the conditions and restrictions set 
forth in paragraphs (j) and (k) of Sec.  561.203.

    Note to paragraph (f) of Sec.  561.204:  The Secretary of State 
is to determine whether a country qualifies for the ``significant 
reduction exception'' and report such determination to Congress not 
later than 90 days after the date on which the President makes the 
initial determination referenced in paragraph (h) of this section, 
and every 180 days thereafter. Accordingly, a significant reduction 
exception covers a period of 180 days.


    Note to Sec.  561.204: The sanctions regime described in this 
section is separate from the sanctions regimes described in 
Sec. Sec.  561.201 and 561.203 and applies in addition to, and 
independently of, the sanctions regimes imposed under Sec. Sec.  
561.201 and 561.203.


0
4. Add new Sec.  561.205 to subpart B to read as follows:


Sec.  561.205  Evasions; attempts; causing violations; conspiracies.

    (a) Any transaction on or after the effective date 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 part 
is prohibited.
    (b) Any conspiracy formed to violate any of the prohibitions set 
forth in this part is prohibited.

Subpart C--General Definitions

0
5. Revise paragraph (a) of Sec.  561.301 to read as follows:


Sec.  561.301  Effective date.

    (a) The effective date of a prohibition or condition imposed 
pursuant to Sec. Sec.  561.201, 561.203, or 561.204 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.
* * * * *

0
6. Revise Sec.  561.318 to read as follows:


Sec.  561.318  Petroleum.

    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.

0
7. Amend Sec.  561.327 by revising the section heading, redesignating 
paragraphs (a) through (c) as paragraphs (b) through (d), and adding 
new paragraph (a) to read as follows:


Sec.  561.327  Agricultural commodities, food, medicine, and medical 
devices.

    (a) The term agricultural commodities means:
    (1) Products not listed on the Commerce Control List in the Export 
Administration Regulations, 15 CFR part 774, supplement no. 1, that 
fall within the term ``agricultural commodity'' as defined in section 
102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602); and
    (2) Products not listed on the Commerce Control List in the Export 
Administration Regulations, 15 CFR part 774, supplement no. 1, that are 
intended for ultimate use in Iran as:
    (i) Food for humans (including raw, processed, and packaged foods; 
live animals; vitamins and minerals; food additives or supplements; and 
bottled drinking water) or animals (including animal feeds);
    (ii) Seeds for food crops;
    (iii) Fertilizers or organic fertilizers; or
    (iv) Reproductive materials (such as live animals, fertilized eggs, 
embryos, and semen) for the production of food animals.
* * * * *

0
8. Add new Sec.  561.328 to subpart C to read as follows:


Sec.  561.328  Reduce significantly, significantly reduced, and 
significant reduction.

    The terms reduce significantly, significantly reduced, and 
significant reduction, used with respect to purchases from Iran of 
petroleum and petroleum products, include a reduction in such purchases 
in terms of price or volume toward a complete cessation of such 
purchases.

0
9. Add new Sec.  561.329 to subpart C to read as follows:

[[Page 16409]]

Sec.  561.329  Iran.

    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.

0
10. Add new Sec.  561.330 to subpart C to read as follows:


Sec.  561.330  Petrochemical products.

    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.

Subpart D--Interpretations

0
11. Revise Sec.  561.403 to read as follows:


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

    For purposes of Sec. Sec.  561.201, 561.203, and 561.204, 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.

0
12. Amend Sec.  561.404 by:
0
a. Revising the introductory text.
0
b. Revising paragraph (d).
0
c. Revising the introductory text of paragraph (e).
0
d. Revising paragraph (e)(1).
    The revisions read as follows:


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

    In determining, for purposes of paragraph (a)(5) of Sec.  561.201, 
whether a transaction is significant, whether transactions are 
significant, or whether financial services are significant, or, for 
purposes of paragraph (a) of Sec.  561.203 and paragraph (b) of Sec.  
561.204, 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:
* * * * *
    (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 paragraph (a)(5) of Sec.  561.201, or 
between the foreign financial institution conducting or facilitating 
the financial transaction described in paragraph (a) of Sec.  561.203 
and the Central Bank of Iran or a designated Iranian financial 
institution, as defined in Sec.  561.324, or between the foreign 
financial institution conducting or facilitating the financial 
transaction described in paragraph (b) of Sec.  561.204 and the 
National Iranian Oil Company (``NIOC''), the Naftiran Intertrade 
Company (``NICO''), any entity owned or controlled by, or operating for 
or on behalf of, NIOC or NICO, or the activities described in 
paragraphs (b)(2) and (b)(3) of that section. 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, a designated Iranian 
financial institution, NIOC, or NICO 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 paragraph (a)(5) of Sec.  
561.201, the Central Bank of Iran, a designated Iranian financial 
institution, NIOC, or NICO 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, as amended by the Iran Threat Reduction and 
Syria Human Rights Act of 2012 (``TRA''), or of the financial 
transaction on the objectives of the National Defense Authorization Act 
for Fiscal Year 2012, as amended by TRA, or of the financial 
transaction on the objectives of Executive Order 13622 of July 30, 
2012, including:
    (1) The economic or other benefit conferred or attempted to be 
conferred on a blocked person described in paragraph (a)(5) of Sec.  
561.201, on the Central Bank of Iran or a designated Iranian financial 
institution, or on NIOC, NICO, any entity owned or controlled by, or 
operating for or on behalf of, NIOC or NICO, or any person engaged in 
the activities described in paragraphs (b)(2) and (b)(3) of Sec.  
561.204;
* * * * *

0
13. Revise Sec.  561.406 to read as follows:


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

    For purposes of Sec.  561.203(i) and Sec.  561.204(f), 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.

0
14. Add new Sec.  561.408 to subpart D to read as follows:


Sec.  561.408  Goods or services originating in a country.

    (a) Goods originating in a country are goods that have been grown, 
produced, manufactured, extracted, or processed, and goods that have 
been substantially transformed, in the country.
    (b) Services originating in a country are services performed in 
that country or services performed in the country to which the services 
are being exported by a citizen, national, or permanent resident of the 
country from which the services originate who is ordinarily resident in 
that country.
    (c) For purposes of this part, services originating in a country do 
not include the brokering of transactions for the sale and exportation 
of goods or services not originating in that country.

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

0
15. Amend Sec.  561.504 by revising the introductory text of paragraph 
(a) to read as follows:


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), Sec.  561.203(c)(2), or Sec.  
561.204(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, which is 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

[[Page 16410]]

for the foreign financial institution are authorized to:
* * * * *

Subpart G--Penalties

0
16. Amend Sec.  561.701 by:
0
a. Revising paragraph (a)(1).
0
b. Adding new paragraph (a)(3).
0
c. Revising the Note to paragraph (a) of Sec.  561.701.
0
d. Revising paragraph (b).
    The revisions and additions read as follows:


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) (22 U.S.C. 8501-8551) (``CISADA'') and section 
1245(g)(2) of the National Defense Authorization Act for Fiscal Year 
2012 (Pub. L. 112-81) (22 U.S.C. 8513a) (``2012 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 order, 
regulation, or license set forth in or issued pursuant to this part 
concerning such prohibitions.
* * * * *
    (3) Pursuant to section 206 of IEEPA (50 U.S.C. 1705), which is 
applicable to violations of the provisions of any license, ruling, 
regulation, order, directive, or instruction issued by or pursuant to 
the direction or authorization of the Secretary of the Treasury under 
IEEPA, a civil penalty not to exceed the amount set forth in section 
206(b) of IEEPA may be imposed on any person who violates, attempts to 
violate, conspires to violate, or causes a violation of any prohibition 
contained in Sec.  561.204 or of any order, regulation, or license set 
forth in or issued pursuant to this part concerning such prohibition.

    Note to paragraph (a) of Sec.  561.701:  As of the date of 
publication in the Federal Register of the final rule amending this 
part to implement sections 503 and 504 of the Iran Threat Reduction 
and Syria Human Rights Act of 2012 and section 1 and other related 
provisions of Executive Order 13622 of July 30, 2012 (March 15, 
2013), 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. (1) As set forth in section 104(c) of CISADA 
and section 1245(g)(2) of the 2012 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.
    (2) Pursuant to section 206 of IEEPA (50 U.S.C. 1705), 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.  561.204 or of any order, regulation, or 
license set forth in or issued pursuant to this part concerning such 
prohibition may, 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.
* * * * *

Subpart H--Procedures

0
17. Revise Sec.  561.802 to read as follows:


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), or section 104A of 
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010 (Pub. L. 111-195) (22 U.S.C. 8501-8551), as amended by the Iran 
Threat Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-158) 
(22 U.S.C. 8701-8795), pursuant to section 8 of Executive Order 13553 
of September 28, 2010 (75 FR 60567, October 1, 2010), pursuant to 
section 10 of Executive Order 13599 of February 5, 2012 (77 FR 6659, 
February 8, 2012), pursuant to sections 1 and 12 of Executive Order 
13622 of July 30, 2012 (77 FR 45897, August 2, 2012), or pursuant to 
section 16 of Executive Order 13628 of October 9, 2012 (77 FR 62139, 
October 12, 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.

0
18. Revise Sec.  561.803 to read as follows:


Sec.  561.803  Consultations.

    In implementing sections 104 and 104A of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010 (Pub. L. 111-195) 
(22 U.S.C. 8501-8551), as amended by the Iran Threat Reduction and 
Syria Human Rights Act of 2012 (Pub. L. 112-158) (22 U.S.C. 8701-8795), 
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.

    Dated: March 7, 2013.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2013-05766 Filed 3-14-13; 8:45 am]
BILLING CODE 4810-AL-P