Technical Amendments to Counter-Terrorism Sanctions Regulations Implemented by OFAC, 38574-38577 [2013-15424]

Download as PDF 38574 Federal Register / Vol. 78, No. 124 / Thursday, June 27, 2013 / Rules and Regulations the cellophane or other transparent exterior wrapping material. Electronic and Facsimile Availability jurisdiction of the internal revenue laws of the United States, and to aircraft operating on a regular schedule between U.S. customs areas as defined in the Air Commerce Regulations (19 CFR part 122). * * * * * * * * ■ 43. Section 44.142 is revised to read as follows: Dated: April 10, 2013. John J. Manfreda, Administrator. Approved: April 11, 2013. Timothy E. Skud, Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy). 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-ondemand service, tel.: 202/622–0077. § 44.142 [FR Doc. 2013–15254 Filed 6–26–13; 8:45 am] Background BILLING CODE 4810–31–P The Office of Foreign Assets Control (‘‘OFAC’’) administers three sanctions programs with respect to terrorists and terrorist organizations. The Terrorism Sanctions Regulations, 31 CFR part 595 (the ‘‘TSR’’), implement Executive Order 12947 of January 23, 1995, in which the President declared a national emergency with respect to ‘‘grave acts of violence committed by foreign terrorists that disrupt the Middle East peace process.’’ The Global Terrorism Sanctions Regulations, 31 CFR part 594 (the ‘‘GTSR’’), implement Executive Order 13224 of September 23, 2001, in which the President declared a national emergency more generally with respect to ‘‘grave acts of terrorism and threats of terrorism committed by foreign terrorists.’’ The Foreign Terrorist Organizations Sanctions Regulations, 31 CFR part 597 (the ‘‘FTOSR’’), implement provisions of the Antiterrorism and Effective Death Penalty Act of 1996. Executive Order 13372 of February 16, 2005, amended section 3 of Executive Order 12947 and section 4 of Executive Order 13224 to clarify that the prohibitions contained in those sections on the making of donations of the types of articles specified in section 203(b)(2) of the International Emergency Economic Powers Act (50 U.S.C. 1702(b)(2)) apply to donations ‘‘by, to, or for the benefit of’’ and not just ‘‘to’’ persons whose property and interests in property are blocked pursuant to those orders. OFAC is amending sections 594.204 and 594.409 of the GTSR and sections 595.204 and 595.408 of the TSR to incorporate this clarification into its regulations. OFAC also is adding new interpretive sections 594.412 and 595.410 to the GTSR and TSR, respectively, to clarify that a person whose property and interests in property are blocked pursuant to those programs has an interest in all property and interests in property of an entity in which it owns, directly or indirectly, a 50 percent or greater interest. The property and interests in property of such an entity, therefore, are blocked, and such an entity is a person whose property and interests in property are blocked pursuant to the relevant sanctions Records. (a) In general. Each export warehouse proprietor must keep in the warehouse complete and concise records that show the: (1) Number of containers; (2) Unit type (for example: cartons, cases); (3) Kinds of articles (for example: small cigarettes); (4) Name of manufacturer and brand; and (5) Quantity of tobacco products and cigarette papers and tubes, and any processed tobacco received, removed, transferred, destroyed, lost, or returned to manufacturers or to customs bonded warehouse proprietors. (b) Other records; form and retention. In addition to the records specified in paragraph (a) of this section, the export warehouse proprietor must retain a copy of each TTB F 5200.14 from a manufacturer, another export warehouse proprietor, or a customs warehouse proprietor, from whom tobacco products or cigarette papers or tubes were received, as well as a copy of each TTB F 5200.14 covering the tobacco products and cigarette papers and tubes removed from the warehouse. The entries for each day in the records maintained under this section must be made by the close of the business day following the day on which the transactions occur. No particular form of records is prescribed, but the information required must be readily ascertainable. The copies of TTB F 5200.14 and other records must be retained for 3 years following the close of the calendar year in which the shipments were received or removed and must be made available for inspection by any appropriate TTB officer upon request. 44. Section 44.181 is revised to read as follows: ■ TKELLEY on DSK3SPTVN1PROD with RULES § 44.181 Packages. All tobacco products and cigarette papers and tubes must, before removal or transfer under this subpart, be put up by the manufacturer in packages that bear the label or notice, tax classification, and mark, as required by this subpart. For purposes of this subpart, the package does not include VerDate Mar<15>2010 15:51 Jun 26, 2013 Jkt 229001 DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Parts 594, 595, and 597 Technical Amendments to CounterTerrorism Sanctions Regulations Implemented by OFAC Office of Foreign Assets Control, Treasury. ACTION: Final rule. AGENCY: The Office of Foreign Assets Control (‘‘OFAC’’) of the U.S. Department of the Treasury is amending the Global Terrorism Sanctions Regulations and the Terrorism Sanctions Regulations (the ‘‘TSR’’) to clarify the scope of prohibitions on the making of donations contained in the underlying Executive orders and that a person whose property and interests in property are blocked pursuant to those programs has an interest in all property and interests in property of an entity in which it owns, directly or indirectly, a 50 percent or greater interest. In addition, OFAC is amending the TSR to add a definition of the term ‘‘financial, material, or technological support’’ and to set at 180 days the maximum term of maturity for instruments in which funds may be invested or held within a blocked interest-bearing account. Finally, OFAC is correcting a clerical error within the Foreign Terrorist Organizations Sanctions Regulations. DATES: Effective: June 27, 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 Policy, tel.: 202–622–2746, Assistant Director for Regulatory Affairs, 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, Washington, DC 20220 (not toll free numbers). SUPPLEMENTARY INFORMATION: SUMMARY: PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 E:\FR\FM\27JNR1.SGM 27JNR1 Federal Register / Vol. 78, No. 124 / Thursday, June 27, 2013 / Rules and Regulations TKELLEY on DSK3SPTVN1PROD with RULES program, regardless of whether the entity itself is listed in an annex to an Executive order or designated pursuant to statutory or regulatory authorities. Further, OFAC is adding references to these new interpretive sections to note 2 to paragraph (a) of section 594.201 of the GTSR and new note 1 to section 595.311 of the TSR. OFAC is amending the TSR to define the term ‘‘financial, material, or technological support,’’ as used in those regulations. Paragraph (a)(2)(ii) of section 595.311 of the TSR implements section 1(a)(ii)(B) of Executive Order 12947 by including within the definition of ‘‘specially designated terrorist’’ foreign persons designated by the Secretary of State, in coordination with the Secretary of the Treasury and the Attorney General, because they are found to have assisted in, sponsored, or provided financial, material, or technological support for, or services in support of, acts of violence that have the purpose or effect of disrupting the Middle East peace process. New section 595.317 in subpart C of the TSR defines the term ‘‘financial, material, or technological support’’ to mean any property, tangible or intangible, and includes a list of specific examples. The corresponding definition already appears in the GTSR, in existing section 594.317. The term is not used in the FTOSR. In addition, OFAC is revising paragraph (b) of section 595.203 of the TSR to set at 180 days the maximum term of maturity for instruments in which funds within an interest-bearing account, as defined within that paragraph, may be invested or held. Previously, the maximum term of maturity for such instruments was set at 90 days, which is not consistent with the maximum term of maturity set out in analogous provisions under the regulations for other OFACadministered sanctions programs contained in the various parts of 31 CFR chapter V. Finally, OFAC is making certain technical edits to definitions contained in the GTSR and TSR and revising the note to section 597.301 of the FTOSR to correct a clerical error. Public Participation Because these amendments to 31 CFR parts 594, 595, and 597 involve a foreign affairs function, Executive Order 12866 and the provisions of 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 VerDate Mar<15>2010 15:51 Jun 26, 2013 Jkt 229001 rule, the Regulatory Flexibility Act (5 U.S.C. 601–612) does not apply. List of Subjects 31 CFR Parts 594, 595, and 597 Administrative practice and procedure, Banks, Banking, Blocking of assets, Terrorism. For the reasons set forth in the preamble, the Department of the Treasury’s Office of Foreign Assets Control amends 31 CFR parts 594, 595, and 597 as follows: PART 594—GLOBAL TERRORISM SANCTIONS REGULATIONS 1. The authority citation for part 594 is revised to read as follows: ■ Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 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; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR, 2002 Comp., p. 240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 161; E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159. Subpart B—Prohibitions 2. In § 594.201, revise Note 2 to paragraph (a) to read as follows: ■ § 594.201 Prohibited transactions involving blocked property. * * * * * Note 2 to paragraph (a) of § 594.201: The names of persons whose property and interests in property are blocked pursuant to § 594.201(a) are published in the Federal Register and incorporated into the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List (‘‘SDN List’’) with the identifier ‘‘[SDGT].’’ The SDN List is accessible through the following page on the Office of Foreign Assets Control’s Web site: http:// www.treasury.gov/sdn. Additional information pertaining to the SDN List can be found in appendix A to this chapter. See § 594.412 concerning entities that may not be listed on the SDN List but whose property and interests in property are nevertheless blocked pursuant to paragraph (a) of this section. * ■ * * * * 3. Revise § 594.204 to read as follows: § 594.204 Prohibited transaction or dealing in property; contributions of funds, goods, or services. Except as otherwise authorized, no U.S. person may engage in any transaction or dealing in property or interests in property of persons whose property and interests in property are blocked pursuant to § 594.201(a), including but not limited to the following transactions: (a) The making of any contribution or provision of funds, goods, or services PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 38575 by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to § 594.201(a); and (b) The receipt of any contribution or provision of funds, goods, or services from any person whose property and interests in property are blocked pursuant to § 594.201(a). Subpart C—General Definitions ■ 4. Revise § 594.310 to read as follows: § 594.310 Specially designated global terrorist; SDGT. The term specially designated global terrorist or SDGT means any person whose property and interests in property are blocked pursuant to § 594.201(a). Subpart D—Interpretations ■ 5. Revise § 594.409 to read as follows: § 594.409 Charitable contributions. Unless specifically authorized by the Office of Foreign Assets Control pursuant to this part, no charitable contribution or donation of funds, goods, services, or technology, including contributions or donations to relieve human suffering, such as food, clothing, or medicine, may be made by, to, or for the benefit of, or received from, any person whose property and interests in property are blocked pursuant to § 594.201(a). For the purposes of this part, a contribution or donation is made by, to, or for the benefit of, or received from, any person whose property and interests in property are blocked pursuant to § 594.201(a) if made by, to, or in the name of, or received from or in the name of, such a person; if made by, to, or in the name of, or received from or in the name of, an entity or individual acting for or on behalf of, or owned or controlled by, such a person; or if made in an attempt to violate, to evade, or to avoid the bar on the provision of contributions or donations by, to, or for the benefit of such a person, or the receipt of contributions or donations from any such person. ■ 6. Add § 594.412 to subpart D to read as follows: § 594.412 Entities owned by a person whose property and interests in property are blocked. A person whose property and interests in property are blocked pursuant to § 594.201(a) has an interest in all property and interests in property of an entity in which it owns, directly or indirectly, a 50 percent or greater interest. The property and interests in property of such an entity, therefore, are E:\FR\FM\27JNR1.SGM 27JNR1 38576 Federal Register / Vol. 78, No. 124 / Thursday, June 27, 2013 / Rules and Regulations blocked, and such an entity is a person whose property and interests in property are blocked pursuant to § 594.201(a), regardless of whether the entity itself is listed in the Annex to Executive Order 13224, as amended, or designated pursuant to § 594.201(a). PART 595—TERRORISM SANCTIONS REGULATIONS 7. The authority citation for part 595 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; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 319; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159. Subpart B—Prohibitions 8. In § 595.203, revise paragraph (b) to read as follows: ■ § 595.203 Holding of certain types of blocked property in interest-bearing accounts. * * * * * (b) For purposes of this section, the term interest-bearing account means a blocked account in a U.S. financial institution earning interest at rates that are commercially reasonable for the amount of funds in the account. Except as otherwise authorized, the funds may not be invested or held in instruments the maturity of which exceeds 180 days. * * * * * ■ 9. Revise § 595.204 to read as follows: § 595.204 Prohibited transaction or dealing in property; contributions of funds, goods, or services. Except as otherwise authorized, no U.S. person may deal in property or interests in property of a specially designated terrorist, including but not limited to the following transactions: (a) The making of any contribution or provision of funds, goods, or services by, to, or for the benefit of a specially designated terrorist; and (b) The receipt of any contribution or provision of funds, goods, or services from a specially designated terrorist. Subpart C—General Definitions 10. In § 595.311, revise paragraph (a)(1), remove the Note to § 595.311, and add Notes 1, 2, and 3 to read as follows: TKELLEY on DSK3SPTVN1PROD with RULES ■ § 595.311 Specially designated terrorist. (a) * * * (1) Persons listed in the Annex to Executive Order 12947 of January 23, 1995, as amended; * * * * * VerDate Mar<15>2010 15:51 Jun 26, 2013 Jkt 229001 Note 1 to § 595.311: The names of persons determined to fall within this definition, whose property and interests in property therefore are blocked pursuant to this part, are published in the Federal Register and incorporated into the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List (‘‘SDN List’’) with the identifier ‘‘[SDT].’’ The SDN List is accessible through the following page on the Office of Foreign Assets Control’s Web site: http:// www.treasury.gov/sdn. Additional information pertaining to the SDN List can be found in appendix A to this chapter. See § 595.410 concerning entities that may not be listed on the SDN List but whose property and interests in property are nevertheless blocked pursuant to this part. Note 2 to § 595.311: The International Emergency Economic Powers Act (50 U.S.C. 1701–1706), in Section 203 (50 U.S.C. 1702), authorizes the blocking of property and interests in property of a person during the pendency of an investigation. The names of persons whose property and interests in property are blocked pending investigation pursuant to this part also are published in the Federal Register and incorporated into the SDN List with the identifier ‘‘[BPI–SDT].’’ Note 3 to § 595.311: Section 501.807 of this chapter sets forth the procedures to be followed by persons seeking administrative reconsideration of their designation, or who wish to assert that the circumstances resulting in the designation are no longer applicable. 11. Add § 595.317 to subpart C to read as follows: ■ § 595.317 Financial, material, or technological support. The term financial, material, or technological support, as used in § 595.311(a)(2)(ii) of this part, means any property, tangible or intangible, including but not limited to currency, financial instruments, securities, or any other transmission of value; weapons or related materiel; chemical or biological agents; explosives; false documentation or identification; communications equipment; computers; electronic or other devices or equipment; technologies; lodging; safe houses; facilities; vehicles or other means of transportation; or goods. ‘‘Technologies’’ as used in this definition means specific information necessary for the development, production, or use of a product, including related technical data such as blueprints, plans, diagrams, models, formulae, tables, engineering designs and specifications, manuals, or other recorded instructions. Subpart D—Interpretations 12. Revise § 595.408 to read as follows: ■ PO 00000 Frm 00036 Fmt 4700 Sfmt 4700 § 595.408 Charitable contributions. (a) Unless specifically authorized by the Office of Foreign Assets Control pursuant to this part, no charitable contribution or donation of funds, goods, services, or technology, including contributions or donations to relieve human suffering, such as food, clothing, or medicine, may be made by, to, or for the benefit of, or received from, any specially designated terrorist. For the purposes of this part, a contribution or donation is made by, to, or for the benefit of, or received from, a specially designated terrorist if made by, to, or in the name of, or received from or in the name of, a specially designated terrorist; if made by, to, or in the name of, or received from or in the name of, an entity or individual acting for or on behalf of, or owned or controlled by, a specially designated terrorist; or if made in an attempt to violate, to evade, or to avoid the bar on the provision of contributions or donations by, to, or for the benefit of a specially designated terrorist, or the receipt of contributions or donations from a specially designated terrorist. (b) Individuals and organizations who donate or contribute funds, goods, services, or technology without knowledge or reason to know that the donation or contribution is destined to or for the benefit of a specially designated terrorist shall not be subject to penalties for such donation or contribution. ■ 13. Add § 595.410 to subpart D to read as follows: § 595.410 Entities owned by a person whose property and interests in property are blocked. A person who is determined to fall within the definition of specially designated terrorist as set forth in § 595.311, whose property and interests in property therefore are blocked pursuant to this part, has an interest in all property and interests in property of an entity in which it owns, directly or indirectly, a 50 percent or greater interest. The property and interests in property of such an entity, therefore, are blocked, and such an entity is a person whose property and interests in property are blocked pursuant to this part, regardless of whether the entity itself is listed in the Annex to Executive Order 12947, as amended, or designated pursuant to this part. PART 597—FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS 14. The authority citation for part 597 continues to read as follows: ■ E:\FR\FM\27JNR1.SGM 27JNR1 Federal Register / Vol. 78, No. 124 / Thursday, June 27, 2013 / Rules and Regulations Authority: 31 U.S.C. 321(b); Pub. L. 101– 410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 104–132, 110 Stat. 1214, 1248–53 (8 U.S.C. 1189, 18 U.S.C. 2339B). DEPARTMENT OF HOMELAND SECURITY in or remaining within, and a spectator area, where all vessels are prohibited from transiting in excess of wake speed, unless authorized by the Captain of the Port Baltimore or his designated representative. This action is intended to temporarily restrict vessel traffic in a portion of the Potomac River during the event. DATES: This rule is effective from 9 a.m. until 7 p.m. on September 21, 2013. ADDRESSES: Documents mentioned in this preamble are part of docket [USCG– 2013–0114]. To view documents mentioned in this preamble as being available in the docket, go to http:// www.regulations.gov, type the docket number in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket Folder on the line associated with this rulemaking. You may also visit the Docket Management Facility in Room W12–140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, call or email Mr. Ronald Houck, U.S. Coast Guard Sector Baltimore, MD; telephone 410–576–2674, email Ronald.L.Houck@uscg.mil. If you have questions on viewing or submitting material to the docket, call Barbara Hairston, Program Manager, Docket Operations, telephone (202) 366–9826. SUPPLEMENTARY INFORMATION: Coast Guard Table of Acronyms 33 CFR Part 100 DHS Department of Homeland Security FR Federal Register NPRM Notice of Proposed Rulemaking Subpart C—General Definitions 15. In § 597.301, revise the Note to read as follows: ■ § 597.301 Agent. * * * * * Note to § 597.301: The names of persons designated as foreign terrorist organizations or determined to fall within this definition are published in the Federal Register and incorporated into the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List (‘‘SDN List’’) with the identifier ‘‘[FTO].’’ The SDN List is accessible through the following page on the Office of Foreign Assets Control’s Web site: http://www.treasury.gov/sdn. Additional information pertaining to the SDN List can be found in appendix A to this chapter. Section 501.807 of this chapter sets forth the procedures to be followed by a person seeking administrative reconsideration of a determination that the person falls within this definition, or who wishes to assert that the circumstances resulting in such a determination are no longer applicable. Dated: June 21, 2013. Adam J. Szubin, Director, Office of Foreign Assets Control. [FR Doc. 2013–15424 Filed 6–26–13; 8:45 am] BILLING CODE 4810–AL–P [Docket No. USCG–2013–0114] RIN 1625–AA08 Special Local Regulations; Red Bull Flugtag National Harbor Event, Potomac River; National Harbor Access Channel, MD Coast Guard, DHS. Temporary final rule. AGENCY: ACTION: The Coast Guard is establishing special local regulations during the ‘‘Red Bull Flugtag National Harbor event’’, to be held on the waters of the Potomac River on September 21, 2013. These special local regulations are necessary to provide for the safety of life on navigable waters during the event. These special local regulations will establish an event area, where all persons and vessels, except those persons and vessels participating in the Flugtag event, are prohibited from entering, transiting through, anchoring TKELLEY on DSK3SPTVN1PROD with RULES SUMMARY: VerDate Mar<15>2010 15:51 Jun 26, 2013 Jkt 229001 A. Regulatory History and Information On March 26, 2013, we published a notice of proposed rulemaking (NPRM) entitled ‘‘Special Local Regulations; Red Bull Flugtag National Harbor Event, Potomac River; National Harbor Access Channel, MD’’ in the Federal Register (78 FR 18274). We received no comments on the proposed rule. No public meeting was requested, and none was held. B. Basis and Purpose The legal basis for the rule is the Coast Guard’s authority to establish special local regulations: 33 U.S.C. 1233. The purpose of the rule is to ensure safety of life on navigable waters of the United States during the Red Bull Flugtag National Harbor event. On September 21, 2013, The Peterson Companies of National Harbor, Maryland, is sponsoring the Red Bull PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 38577 Flugtag National Harbor event, a competition held along the Potomac River at National Harbor, Maryland. Approximately 30 competing teams will operate homemade, human-powered flying devices launched from a ramp constructed at National Harbor, located downriver from the Woodrow Wilson Memorial (I–495/I–95) Bridge, in Maryland. The competitors will be supported by sponsor-provided watercraft. The sponsor estimates 10,000 spectators during the event. The Coast Guard anticipates a large spectator vessel fleet present during the event. C. Discussion of Comments, Changes and the Final Rule The Coast Guard received no comments in response to the NPRM. No public meeting was requested and none was held. The Coast Guard is establishing special local regulations on specified waters of the Potomac River. The regulations will be effective from 9 a.m. to 7 p.m. on September 21, 2013. The regulated area, approximately 600 yards in length and 500 yards in width and extends across the entire width of the National Harbor Access Channel, includes all waters of the Potomac River, contained within lines connecting the following points: From the shoreline at position latitude 38°46′51″ N, longitude 077°01′31″ W, thence northerly to position latitude 38°47′02″ N, longitude 077°01′35″ W, thence easterly to position latitude 38°47′05″ N, longitude 077°01′22″ W, thence southeasterly to the shoreline at position latitude 38°46′56″ N, longitude 077°01′07″ W. An event area and a designated spectator area exist within this regulated area. The event area, where all persons and vessels, except those persons and vessels participating in the competition, are prohibited from entering, transiting through, anchoring in, or remaining within, includes all waters of the Potomac River, contained within lines connecting the following points: From the shoreline at position latitude 38°46′51″ N, longitude 077°01′31″ W, thence northerly to position latitude 38°46′52″ N, longitude 077°01′31″ W, thence easterly to position latitude 38°46′54″ N, longitude 077°01′17″ W, thence northerly to position latitude 38°46′59″ N, longitude 077°01′14″ W, thence southeasterly to the shoreline at position latitude 38°46′56″ N, longitude 077°01′07″ W. The designated spectator area, where all vessels are prohibited from transiting in excess of wake speed unless authorized by the Captain of the Port Baltimore or his designated representative and persons and vessels may request E:\FR\FM\27JNR1.SGM 27JNR1

Agencies

[Federal Register Volume 78, Number 124 (Thursday, June 27, 2013)]
[Rules and Regulations]
[Pages 38574-38577]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-15424]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 594, 595, and 597


Technical Amendments to Counter-Terrorism Sanctions Regulations 
Implemented by OFAC

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Foreign Assets Control (``OFAC'') of the U.S. 
Department of the Treasury is amending the Global Terrorism Sanctions 
Regulations and the Terrorism Sanctions Regulations (the ``TSR'') to 
clarify the scope of prohibitions on the making of donations contained 
in the underlying Executive orders and that a person whose property and 
interests in property are blocked pursuant to those programs has an 
interest in all property and interests in property of an entity in 
which it owns, directly or indirectly, a 50 percent or greater 
interest. In addition, OFAC is amending the TSR to add a definition of 
the term ``financial, material, or technological support'' and to set 
at 180 days the maximum term of maturity for instruments in which funds 
may be invested or held within a blocked interest-bearing account. 
Finally, OFAC is correcting a clerical error within the Foreign 
Terrorist Organizations Sanctions Regulations.

DATES: Effective: June 27, 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 Policy, tel.: 
202-622-2746, Assistant Director for Regulatory Affairs, 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, Washington, DC 20220 (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 Office of Foreign Assets Control (``OFAC'') administers three 
sanctions programs with respect to terrorists and terrorist 
organizations. The Terrorism Sanctions Regulations, 31 CFR part 595 
(the ``TSR''), implement Executive Order 12947 of January 23, 1995, in 
which the President declared a national emergency with respect to 
``grave acts of violence committed by foreign terrorists that disrupt 
the Middle East peace process.'' The Global Terrorism Sanctions 
Regulations, 31 CFR part 594 (the ``GTSR''), implement Executive Order 
13224 of September 23, 2001, in which the President declared a national 
emergency more generally with respect to ``grave acts of terrorism and 
threats of terrorism committed by foreign terrorists.'' The Foreign 
Terrorist Organizations Sanctions Regulations, 31 CFR part 597 (the 
``FTOSR''), implement provisions of the Antiterrorism and Effective 
Death Penalty Act of 1996.
    Executive Order 13372 of February 16, 2005, amended section 3 of 
Executive Order 12947 and section 4 of Executive Order 13224 to clarify 
that the prohibitions contained in those sections on the making of 
donations of the types of articles specified in section 203(b)(2) of 
the International Emergency Economic Powers Act (50 U.S.C. 1702(b)(2)) 
apply to donations ``by, to, or for the benefit of'' and not just 
``to'' persons whose property and interests in property are blocked 
pursuant to those orders. OFAC is amending sections 594.204 and 594.409 
of the GTSR and sections 595.204 and 595.408 of the TSR to incorporate 
this clarification into its regulations.
    OFAC also is adding new interpretive sections 594.412 and 595.410 
to the GTSR and TSR, respectively, to clarify that a person whose 
property and interests in property are blocked pursuant to those 
programs has an interest in all property and interests in property of 
an entity in which it owns, directly or indirectly, a 50 percent or 
greater interest. The property and interests in property of such an 
entity, therefore, are blocked, and such an entity is a person whose 
property and interests in property are blocked pursuant to the relevant 
sanctions

[[Page 38575]]

program, regardless of whether the entity itself is listed in an annex 
to an Executive order or designated pursuant to statutory or regulatory 
authorities. Further, OFAC is adding references to these new 
interpretive sections to note 2 to paragraph (a) of section 594.201 of 
the GTSR and new note 1 to section 595.311 of the TSR.
    OFAC is amending the TSR to define the term ``financial, material, 
or technological support,'' as used in those regulations. Paragraph 
(a)(2)(ii) of section 595.311 of the TSR implements section 1(a)(ii)(B) 
of Executive Order 12947 by including within the definition of 
``specially designated terrorist'' foreign persons designated by the 
Secretary of State, in coordination with the Secretary of the Treasury 
and the Attorney General, because they are found to have assisted in, 
sponsored, or provided financial, material, or technological support 
for, or services in support of, acts of violence that have the purpose 
or effect of disrupting the Middle East peace process.
    New section 595.317 in subpart C of the TSR defines the term 
``financial, material, or technological support'' to mean any property, 
tangible or intangible, and includes a list of specific examples. The 
corresponding definition already appears in the GTSR, in existing 
section 594.317. The term is not used in the FTOSR.
    In addition, OFAC is revising paragraph (b) of section 595.203 of 
the TSR to set at 180 days the maximum term of maturity for instruments 
in which funds within an interest-bearing account, as defined within 
that paragraph, may be invested or held. Previously, the maximum term 
of maturity for such instruments was set at 90 days, which is not 
consistent with the maximum term of maturity set out in analogous 
provisions under the regulations for other OFAC-administered sanctions 
programs contained in the various parts of 31 CFR chapter V.
    Finally, OFAC is making certain technical edits to definitions 
contained in the GTSR and TSR and revising the note to section 597.301 
of the FTOSR to correct a clerical error.

Public Participation

    Because these amendments to 31 CFR parts 594, 595, and 597 involve 
a foreign affairs function, Executive Order 12866 and the provisions of 
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.

List of Subjects 31 CFR Parts 594, 595, and 597

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Terrorism.

    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR parts 594, 
595, and 597 as follows:

PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS

0
1. The authority citation for part 594 is revised to read as follows:

    Authority:  3 U.S.C. 301; 22 U.S.C. 287c; 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; E.O. 13224, 66 FR 
49079, 3 CFR, 2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR, 
2002 Comp., p. 240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 
161; E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

Subpart B--Prohibitions

0
2. In Sec.  594.201, revise Note 2 to paragraph (a) to read as follows:


Sec.  594.201  Prohibited transactions involving blocked property.

* * * * *

    Note 2 to paragraph (a) of Sec.  594.201: The names of persons 
whose property and interests in property are blocked pursuant to 
Sec.  594.201(a) are published in the Federal Register and 
incorporated into the Office of Foreign Assets Control's Specially 
Designated Nationals and Blocked Persons List (``SDN List'') with 
the identifier ``[SDGT].'' The SDN List is accessible through the 
following page on the Office of Foreign Assets Control's Web site: 
http://www.treasury.gov/sdn. Additional information pertaining to 
the SDN List can be found in appendix A to this chapter. See Sec.  
594.412 concerning entities that may not be listed on the SDN List 
but whose property and interests in property are nevertheless 
blocked pursuant to paragraph (a) of this section.

* * * * *

0
3. Revise Sec.  594.204 to read as follows:


Sec.  594.204  Prohibited transaction or dealing in property; 
contributions of funds, goods, or services.

    Except as otherwise authorized, no U.S. person may engage in any 
transaction or dealing in property or interests in property of persons 
whose property and interests in property are blocked pursuant to Sec.  
594.201(a), including but not limited to the following transactions:
    (a) The making of any contribution or provision of funds, goods, or 
services by, to, or for the benefit of any person whose property and 
interests in property are blocked pursuant to Sec.  594.201(a); and
    (b) The receipt of any contribution or provision of funds, goods, 
or services from any person whose property and interests in property 
are blocked pursuant to Sec.  594.201(a).

Subpart C--General Definitions

0
4. Revise Sec.  594.310 to read as follows:


Sec.  594.310  Specially designated global terrorist; SDGT.

    The term specially designated global terrorist or SDGT means any 
person whose property and interests in property are blocked pursuant to 
Sec.  594.201(a).

Subpart D--Interpretations

0
5. Revise Sec.  594.409 to read as follows:


Sec.  594.409  Charitable contributions.

    Unless specifically authorized by the Office of Foreign Assets 
Control pursuant to this part, no charitable contribution or donation 
of funds, goods, services, or technology, including contributions or 
donations to relieve human suffering, such as food, clothing, or 
medicine, may be made by, to, or for the benefit of, or received from, 
any person whose property and interests in property are blocked 
pursuant to Sec.  594.201(a). For the purposes of this part, a 
contribution or donation is made by, to, or for the benefit of, or 
received from, any person whose property and interests in property are 
blocked pursuant to Sec.  594.201(a) if made by, to, or in the name of, 
or received from or in the name of, such a person; if made by, to, or 
in the name of, or received from or in the name of, an entity or 
individual acting for or on behalf of, or owned or controlled by, such 
a person; or if made in an attempt to violate, to evade, or to avoid 
the bar on the provision of contributions or donations by, to, or for 
the benefit of such a person, or the receipt of contributions or 
donations from any such person.

0
6. Add Sec.  594.412 to subpart D to read as follows:


Sec.  594.412  Entities owned by a person whose property and interests 
in property are blocked.

    A person whose property and interests in property are blocked 
pursuant to Sec.  594.201(a) has an interest in all property and 
interests in property of an entity in which it owns, directly or 
indirectly, a 50 percent or greater interest. The property and 
interests in property of such an entity, therefore, are

[[Page 38576]]

blocked, and such an entity is a person whose property and interests in 
property are blocked pursuant to Sec.  594.201(a), regardless of 
whether the entity itself is listed in the Annex to Executive Order 
13224, as amended, or designated pursuant to Sec.  594.201(a).

PART 595--TERRORISM SANCTIONS REGULATIONS

0
7. The authority citation for part 595 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; E.O. 12947, 60 FR 5079, 3 CFR, 1995 
Comp., p. 319; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; 
E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

Subpart B--Prohibitions

0
8. In Sec.  595.203, revise paragraph (b) to read as follows:


Sec.  595.203  Holding of certain types of blocked property in 
interest-bearing accounts.

* * * * *
    (b) For purposes of this section, the term interest-bearing account 
means a blocked account in a U.S. financial institution earning 
interest at rates that are commercially reasonable for the amount of 
funds in the account. Except as otherwise authorized, the funds may not 
be invested or held in instruments the maturity of which exceeds 180 
days.
* * * * *

0
9. Revise Sec.  595.204 to read as follows:


Sec.  595.204  Prohibited transaction or dealing in property; 
contributions of funds, goods, or services.

    Except as otherwise authorized, no U.S. person may deal in property 
or interests in property of a specially designated terrorist, including 
but not limited to the following transactions:
    (a) The making of any contribution or provision of funds, goods, or 
services by, to, or for the benefit of a specially designated 
terrorist; and
    (b) The receipt of any contribution or provision of funds, goods, 
or services from a specially designated terrorist.

Subpart C--General Definitions

0
10. In Sec.  595.311, revise paragraph (a)(1), remove the Note to Sec.  
595.311, and add Notes 1, 2, and 3 to read as follows:


Sec.  595.311  Specially designated terrorist.

    (a) * * *
    (1) Persons listed in the Annex to Executive Order 12947 of January 
23, 1995, as amended;
* * * * *

    Note 1 to Sec.  595.311: The names of persons determined to fall 
within this definition, whose property and interests in property 
therefore are blocked pursuant to this part, are published in the 
Federal Register and incorporated into the Office of Foreign Assets 
Control's Specially Designated Nationals and Blocked Persons List 
(``SDN List'') with the identifier ``[SDT].'' The SDN List is 
accessible through the following page on the Office of Foreign 
Assets Control's Web site: http://www.treasury.gov/sdn. Additional 
information pertaining to the SDN List can be found in appendix A to 
this chapter. See Sec.  595.410 concerning entities that may not be 
listed on the SDN List but whose property and interests in property 
are nevertheless blocked pursuant to this part.


    Note 2 to Sec.  595.311:  The International Emergency Economic 
Powers Act (50 U.S.C. 1701-1706), in Section 203 (50 U.S.C. 1702), 
authorizes the blocking of property and interests in property of a 
person during the pendency of an investigation. The names of persons 
whose property and interests in property are blocked pending 
investigation pursuant to this part also are published in the 
Federal Register and incorporated into the SDN List with the 
identifier ``[BPI-SDT].''


    Note 3 to Sec.  595.311: Section 501.807 of this chapter sets 
forth the procedures to be followed by persons seeking 
administrative reconsideration of their designation, or who wish to 
assert that the circumstances resulting in the designation are no 
longer applicable.


0
11. Add Sec.  595.317 to subpart C to read as follows:


Sec.  595.317  Financial, material, or technological support.

    The term financial, material, or technological support, as used in 
Sec.  595.311(a)(2)(ii) of this part, means any property, tangible or 
intangible, including but not limited to currency, financial 
instruments, securities, or any other transmission of value; weapons or 
related materiel; chemical or biological agents; explosives; false 
documentation or identification; communications equipment; computers; 
electronic or other devices or equipment; technologies; lodging; safe 
houses; facilities; vehicles or other means of transportation; or 
goods. ``Technologies'' as used in this definition means specific 
information necessary for the development, production, or use of a 
product, including related technical data such as blueprints, plans, 
diagrams, models, formulae, tables, engineering designs and 
specifications, manuals, or other recorded instructions.

Subpart D--Interpretations

0
12. Revise Sec.  595.408 to read as follows:


Sec.  595.408  Charitable contributions.

    (a) Unless specifically authorized by the Office of Foreign Assets 
Control pursuant to this part, no charitable contribution or donation 
of funds, goods, services, or technology, including contributions or 
donations to relieve human suffering, such as food, clothing, or 
medicine, may be made by, to, or for the benefit of, or received from, 
any specially designated terrorist. For the purposes of this part, a 
contribution or donation is made by, to, or for the benefit of, or 
received from, a specially designated terrorist if made by, to, or in 
the name of, or received from or in the name of, a specially designated 
terrorist; if made by, to, or in the name of, or received from or in 
the name of, an entity or individual acting for or on behalf of, or 
owned or controlled by, a specially designated terrorist; or if made in 
an attempt to violate, to evade, or to avoid the bar on the provision 
of contributions or donations by, to, or for the benefit of a specially 
designated terrorist, or the receipt of contributions or donations from 
a specially designated terrorist.
    (b) Individuals and organizations who donate or contribute funds, 
goods, services, or technology without knowledge or reason to know that 
the donation or contribution is destined to or for the benefit of a 
specially designated terrorist shall not be subject to penalties for 
such donation or contribution.

0
13. Add Sec.  595.410 to subpart D to read as follows:


Sec.  595.410  Entities owned by a person whose property and interests 
in property are blocked.

    A person who is determined to fall within the definition of 
specially designated terrorist as set forth in Sec.  595.311, whose 
property and interests in property therefore are blocked pursuant to 
this part, has an interest in all property and interests in property of 
an entity in which it owns, directly or indirectly, a 50 percent or 
greater interest. The property and interests in property of such an 
entity, therefore, are blocked, and such an entity is a person whose 
property and interests in property are blocked pursuant to this part, 
regardless of whether the entity itself is listed in the Annex to 
Executive Order 12947, as amended, or designated pursuant to this part.

PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS

0
14. The authority citation for part 597 continues to read as follows:


[[Page 38577]]


    Authority:  31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8 
U.S.C. 1189, 18 U.S.C. 2339B).

Subpart C--General Definitions

0
15. In Sec.  597.301, revise the Note to read as follows:


Sec.  597.301  Agent.

* * * * *

    Note to Sec.  597.301: The names of persons designated as 
foreign terrorist organizations or determined to fall within this 
definition are published in the Federal Register and incorporated 
into the Office of Foreign Assets Control's Specially Designated 
Nationals and Blocked Persons List (``SDN List'') with the 
identifier ``[FTO].'' The SDN List is accessible through the 
following page on the Office of Foreign Assets Control's Web site: 
http://www.treasury.gov/sdn. Additional information pertaining to 
the SDN List can be found in appendix A to this chapter. Section 
501.807 of this chapter sets forth the procedures to be followed by 
a person seeking administrative reconsideration of a determination 
that the person falls within this definition, or who wishes to 
assert that the circumstances resulting in such a determination are 
no longer applicable.


    Dated: June 21, 2013.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2013-15424 Filed 6-26-13; 8:45 am]
BILLING CODE 4810-AL-P