Technical Amendments to Counter-Terrorism Sanctions Regulations Implemented by OFAC, 38574-38577 [2013-15424]
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Federal Register / Vol. 78, No. 124 / Thursday, June 27, 2013 / Rules and Regulations
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Electronic and Facsimile Availability
jurisdiction of the internal revenue laws
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operating on a regular schedule between
U.S. customs areas as defined in the Air
Commerce Regulations (19 CFR part
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■ 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:
■
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§ 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
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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:
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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
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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.
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*
*
*
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: https://
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
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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
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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.
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*
*
(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:
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■
§ 595.311
Specially designated terrorist.
(a) * * *
(1) Persons listed in the Annex to
Executive Order 12947 of January 23,
1995, as amended;
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*
*
*
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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: https://
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:
■
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§ 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:
■
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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 https://
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:
https://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
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SUMMARY:
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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
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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]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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:
https://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: https://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:
https://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
