Venezuela Sanctions Regulations, 39676-39683 [2015-16782]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[Federal Register Volume 80, Number 132 (Friday, July 10, 2015)]
[Rules and Regulations]
[Pages 39676-39683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16782]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 591


Venezuela Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is issuing regulations to implement the Venezuela 
Defense of Human Rights and Civil Society Act of 2014 (Pub. L. 113-278) 
and Executive Order 13692 of March 8, 2015 (``Blocking Property and 
Suspending Entry of Certain Persons Contributing to the Situation in 
Venezuela''). OFAC intends to supplement this part 591 with a more 
comprehensive set of regulations, which may include additional 
interpretive and definitional guidance and additional general licenses 
and statements of licensing policy.

DATES: Effective: July 10, 2015.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Licensing, 
tel.: 202/622-2480, Assistant Director for Policy, tel.: 202/622-6746, 
Assistant Director for Regulatory Affairs, tel.: 202/622-4855, 
Assistant Director for Sanctions Compliance & Evaluation, tel.: 202/
622-2490, OFAC, or Chief Counsel (Foreign Assets Control), tel.: 202/
622-2410, Office of the General Counsel, Department of the Treasury 
(not toll free numbers).

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treasury.gov/ofac). Certain general 
information pertaining to OFAC's sanctions programs also is available 
via facsimile through a 24-hour fax-on-demand service, tel.: 202/622-
0077.

[[Page 39677]]

Background

    On December 18, 2014, President Obama signed the Venezuela Defense 
of Human Rights and Civil Society Act of 2014 (Pub. L. 113-278) (the 
``Act'') into law. The Act required the President to impose targeted 
sanctions on certain persons that he determines to be responsible for 
significant acts of violence or serious human rights abuses against 
antigovernment protesters in Venezuela and to have ordered or otherwise 
directed the arrest or prosecution of persons in Venezuela primarily 
because of the person's legitimate exercise of freedom of expression or 
assembly.
    On March 8, 2015, the President issued Executive Order 13692 (80 FR 
12747, March 11, 2015) (E.O. 13692), invoking the authority of, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701 
et seq.) (IEEPA), the Act, and the National Emergencies Act (50 U.S.C. 
1601 et seq.) (NEA).
    OFAC is issuing the Venezuela Sanctions Regulations, 31 CFR part 
591 (the ``Regulations''), to implement the Act and E.O. 13692, 
pursuant to authorities delegated to the Secretary of the Treasury in 
E.O. 13692. A copy of E.O. 13692 appears in Appendix A to this part.
    The Regulations are being published in abbreviated form at this 
time for the purpose of providing immediate guidance to the public. 
OFAC intends to supplement this part 591 with a more comprehensive set 
of regulations, which may include additional interpretive and 
definitional guidance and additional general licenses and statements of 
licensing policy. The appendix to the Regulations will be removed when 
OFAC supplements this part with a more comprehensive set of 
regulations.

Public Participation

    Because the Regulations involve a foreign affairs function, the 
provisions of Executive Order 12866 and the Administrative Procedure 
Act (5 U.S.C. 553) requiring notice of proposed rulemaking, opportunity 
for public participation, and delay in effective date are inapplicable. 
Because no notice of proposed rulemaking is required for this rule, the 
Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The collections of information related to the Regulations are 
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties 
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507), those collections of information have been approved by 
the Office of Management and Budget under control number 1505-0164. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection of 
information displays a valid control number.

List of Subjects in 31 CFR Part 591

    Administrative practice and procedure, Banking, Banks, Blocking of 
assets, Brokers, Credit, Foreign trade, Investments, Loans, Securities, 
Services, Venezuela.

    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control adds part 591 to 31 CFR 
chapter V to read as follows:

PART 591--VENEZUELA SANCTIONS REGULATIONS

Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
591.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
591.201 Prohibited transactions.
591.202 Effect of transfers violating the provisions of this part.
591.203 Holding of funds in interest-bearing accounts; investment 
and reinvestment.
591.204 Expenses of maintaining blocked property; liquidation of 
blocked property.
Subpart C--General Definitions
591.300 Applicability of definitions.
591.301 Blocked account; blocked property.
591.302 Effective date.
591.303 Entity.
591.304 Financial, material, or technological support.
591.305 Interest.
591.306 Licenses; general and specific.
591.307 OFAC.
591.308 Person.
591.309 Property; property interest.
591.310 Transfer.
591.311 United States.
591.312 United States person; U.S. person.
591.313 U.S. financial institution.
Subpart D--Interpretations
591.401 [Reserved]
591.402 Effect of amendment.
591.403 Termination and acquisition of an interest in blocked 
property.
591.404 Transactions ordinarily incident to a licensed transaction.
591.405 Setoffs prohibited.
591.406 Entities owned by persons whose property and interests in 
property are blocked.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
591.501 General and specific licensing procedures.
591.502 [Reserved]
591.503 Exclusion from licenses.
591.504 Payments and transfers to blocked accounts in U.S. financial 
institutions.
591.505 Entries in certain accounts for normal service charges 
authorized.
591.506 Provision of certain legal services authorized.
591.507 Payments for legal services from funds originating outside 
the United States authorized.
591.508 Authorization of emergency medical services.
Subparts F-G--[Reserved]
Subpart H--Procedures
591.801 [Reserved]
591.802 Delegation by the Secretary of the Treasury.
Subpart I--Paperwork Reduction Act
591.901 Paperwork Reduction Act notice.
Appendix A to Part 591 Executive Order 13692 of March 8, 2015

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 113-
278, 128 Stat. 3011 (50 U.S.C. 1701 note); E.O. 13692, 80 FR 12747, 
March 11, 2015.

Subpart A--Relation of This Part to Other Laws and Regulations


Sec.  591.101  Relation of this part to other laws and regulations.

    This part is separate from, and independent of, the other parts of 
this chapter, with the exception of part 501 of this chapter, the 
recordkeeping and reporting requirements and license application and 
other procedures of which apply to this part. Actions taken pursuant to 
part 501 of this chapter with respect to the prohibitions contained in 
this part are considered actions taken pursuant to this part. Differing 
foreign policy and national security circumstances may result in 
differing interpretations of similar language among the parts of this 
chapter. No license or authorization contained in or issued pursuant to 
those other parts authorizes any transaction prohibited by this part. 
No license or authorization contained in or issued pursuant to any 
other provision of law or regulation authorizes any transaction 
prohibited by this part. No license or authorization contained in or 
issued pursuant to this part relieves the involved parties from 
complying with any other applicable laws or regulations.

    Note to Sec.  591.101: This part has been published in 
abbreviated form for the purpose of providing immediate guidance to 
the public. OFAC intends to supplement this part with a more 
comprehensive set of regulations, which may include additional 
interpretive and definitional guidance and

[[Page 39678]]

additional general licenses and statements of licensing policy.

Subpart B--Prohibitions


Sec.  591.201  Prohibited transactions.

    All transactions prohibited pursuant to Executive Order 13692 of 
March 8, 2015, are also prohibited pursuant to this part.

    Note 1 to Sec.  591.201: The names of persons designated 
pursuant to Executive Order 13692, whose property and interests in 
property therefore are blocked pursuant to this section, are 
published in the Federal Register and incorporated into OFAC's 
Specially Designated Nationals and Blocked Persons List (SDN List) 
with the identifier ``[VENEZUELA].'' The SDN List is accessible 
through the following page on OFAC's Web site: www.treasury.gov/sdn. 
Additional information pertaining to the SDN List can be found in 
Appendix A to this chapter. See Sec.  591.406 concerning entities 
that may not be listed on the SDN List but whose property and 
interests in property are nevertheless blocked pursuant to this 
section.


    Note 2 to Sec.  591.201: 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 section also are published in the 
Federal Register and incorporated into the SDN List with the 
identifier ``[BPI-VENEZUELA]''.


    Note 3 to Sec.  591.201: Sections 501.806 and 501.807 of this 
chapter describe the procedures to be followed by persons seeking, 
respectively, the unblocking of funds that they believe were blocked 
due to mistaken identity, or administrative reconsideration of their 
status as persons whose property and interests in property are 
blocked pursuant to this section.

Sec.  591.202  Effect of transfers violating the provisions of this 
part.

    (a) Any transfer after the effective date that is in violation of 
any provision of this part or of any regulation, order, directive, 
ruling, instruction, or license issued pursuant to this part, and that 
involves any property or interest in property blocked pursuant to Sec.  
591.201, is null and void and shall not be the basis for the assertion 
or recognition of any interest in or right, remedy, power, or privilege 
with respect to such property or property interest.
    (b) No transfer before the effective date shall be the basis for 
the assertion or recognition of any right, remedy, power, or privilege 
with respect to, or any interest in, any property or interest in 
property blocked pursuant to Sec.  591.201, unless the person who holds 
or maintains such property, prior to that date, had written notice of 
the transfer or by any written evidence had recognized such transfer.
    (c) Unless otherwise provided, a license or other authorization 
issued by OFAC before, during, or after a transfer shall validate such 
transfer or make it enforceable to the same extent that it would be 
valid or enforceable but for the provisions of this part and any 
regulation, order, directive, ruling, instruction, or license issued 
pursuant to this part.
    (d) Transfers of property that otherwise would be null and void or 
unenforceable by virtue of the provisions of this section shall not be 
deemed to be null and void or unenforceable as to any person with whom 
such property is or was held or maintained (and as to such person only) 
in cases in which such person is able to establish to the satisfaction 
of OFAC each of the following:
    (1) Such transfer did not represent a willful violation of the 
provisions of this part by the person with whom such property is or was 
held or maintained (and as to such person only);
    (2) The person with whom such property is or was held or maintained 
did not have reasonable cause to know or suspect, in view of all the 
facts and circumstances known or available to such person, that such 
transfer required a license or authorization issued pursuant to this 
part and was not so licensed or authorized, or, if a license or 
authorization did purport to cover the transfer, that such license or 
authorization had been obtained by misrepresentation of a third party 
or withholding of material facts or was otherwise fraudulently 
obtained; and
    (3) The person with whom such property is or was held or maintained 
filed with OFAC a report setting forth in full the circumstances 
relating to such transfer promptly upon discovery that:
    (i) Such transfer was in violation of the provisions of this part 
or any regulation, ruling, instruction, license, or other directive or 
authorization issued pursuant to this part;
    (ii) Such transfer was not licensed or authorized by OFAC; or
    (iii) If a license did purport to cover the transfer, such license 
had been obtained by misrepresentation of a third party or withholding 
of material facts or was otherwise fraudulently obtained.

    Note to paragraph (d) of Sec.  591.202: The filing of a report 
in accordance with the provisions of paragraph (d)(3) of this 
section shall not be deemed evidence that the terms of paragraphs 
(d)(1) and (2) of this section have been satisfied.

    (e) Unless licensed pursuant to this part, any attachment, 
judgment, decree, lien, execution, garnishment, or other judicial 
process is null and void with respect to any property and interests in 
property blocked pursuant to Sec.  591.201.


Sec.  591.203  Holding of funds in interest-bearing accounts; 
investment and reinvestment.

    (a) Except as provided in paragraphs (e) or (f) of this section, or 
as otherwise directed by OFAC, any U.S. person holding funds, such as 
currency, bank deposits, or liquidated financial obligations, subject 
to Sec.  591.201 shall hold or place such funds in a blocked interest-
bearing account located in the United States.
    (b)(1) For purposes of this section, the term blocked interest-
bearing account means a blocked account:
    (i) In a federally-insured U.S. bank, thrift institution, or credit 
union, provided the funds are earning interest at rates that are 
commercially reasonable; or
    (ii) With a broker or dealer registered with the Securities and 
Exchange Commission under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.), provided the funds are invested in a money market 
fund or in U.S. Treasury bills.
    (2) Funds held or placed in a blocked account pursuant to paragraph 
(a) of this section may not be invested in instruments the maturity of 
which exceeds 180 days.
    (c) For purposes of this section, a rate is commercially reasonable 
if it is the rate currently offered to other depositors on deposits or 
instruments of comparable size and maturity.
    (d) For purposes of this section, if interest is credited to a 
separate blocked account or subaccount, the name of the account party 
on each account must be the same.
    (e) Blocked funds held in instruments the maturity of which exceeds 
180 days at the time the funds become subject to Sec.  591.201 may 
continue to be held until maturity in the original instrument, provided 
any interest, earnings, or other proceeds derived therefrom are paid 
into a blocked interest-bearing account in accordance with paragraphs 
(a) or (f) of this section.
    (f) Blocked funds held in accounts or instruments outside the 
United States at the time the funds become subject to Sec.  591.201 may 
continue to be held in the same type of accounts or instruments, 
provided the funds earn interest at rates that are commercially 
reasonable.
    (g) This section does not create an affirmative obligation for the 
holder of blocked tangible property, such as chattels or real estate, 
or of other blocked property, such as debt or equity

[[Page 39679]]

securities, to sell or liquidate such property. However, OFAC may issue 
licenses permitting or directing such sales or liquidation in 
appropriate cases.
    (h) Funds subject to this section may not be held, invested, or 
reinvested in a manner that provides immediate financial or economic 
benefit or access to any person whose property and interests in 
property are blocked pursuant to Sec.  591.201, nor may their holder 
cooperate in or facilitate the pledging or other attempted use as 
collateral of blocked funds or other assets.


Sec.  591.204  Expenses of maintaining blocked property; liquidation of 
blocked property.

    (a) Except as otherwise authorized, and notwithstanding the 
existence of any rights or obligations conferred or imposed by any 
international agreement or contract entered into or any license or 
permit granted prior to the effective date, all expenses incident to 
the maintenance of physical property blocked pursuant to Sec.  591.201 
shall be the responsibility of the owners or operators of such 
property, which expenses shall not be met from blocked funds.
    (b) Property blocked pursuant to Sec.  591.201 may, in the 
discretion of OFAC, be sold or liquidated and the net proceeds placed 
in a blocked interest-bearing account in the name of the owner of the 
property.

Subpart C--General Definitions


Sec.  591.300  Applicability of definitions.

    The definitions in this subpart apply throughout the entire part.


Sec.  591.301  Blocked account; blocked property.

    The terms blocked account and blocked property shall mean any 
account or property subject to the prohibitions in Sec.  591.201 held 
in the name of a person whose property and interests in property are 
blocked pursuant to Sec.  591.201, or in which such person has an 
interest, and with respect to which payments, transfers, exportations, 
withdrawals, or other dealings may not be made or effected except 
pursuant to a license or other authorization from OFAC expressly 
authorizing such action.

    Note to Sec.  591.301: See Sec.  591.406 concerning the blocked 
status of property and interests in property of an entity that is 50 
percent or more owned by persons whose property and interests in 
property are blocked pursuant to Sec.  591.201.

Sec.  591.302  Effective date.

    The term effective date refers to the effective date of the 
applicable prohibitions and directives contained in this part as 
follows:
    (a) With respect to a person listed in the Annex to E.O. 13692 of 
March 8, 2015, 12:01 a.m. eastern daylight time, March 9, 2015; and
    (b) With respect to a person whose property and interests in 
property are otherwise blocked pursuant to Sec.  591.201, the earlier 
of the date of actual or constructive notice that such person's 
property and interests in property are blocked.


Sec.  591.303  Entity.

    The term entity means a partnership, association, trust, joint 
venture, corporation, group, subgroup, or other organization.


Sec.  591.304  Financial, material, or technological support.

    The term financial, material, or technological support, as used in 
Executive Order 13692 of March 8, 2015, 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.


Sec.  591.305  Interest.

    Except as otherwise provided in this part, the term interest, when 
used with respect to property (e.g., ``an interest in property''), 
means an interest of any nature whatsoever, direct or indirect.


Sec.  591.306  Licenses; general and specific.

    (a) Except as otherwise provided in this part, the term license 
means any license or authorization contained in or issued pursuant to 
this part.
    (b) The term general license means any license or authorization the 
terms of which are set forth in subpart E of this part or made 
available on OFAC's Web site: www.treasury.gov/ofac.
    (c) The term specific license means any license or authorization 
issued pursuant to this part but not set forth in subpart E of this 
part or made available on OFAC's Web site: www.treasury.gov/ofac.

    Note to Sec.  591.306:  See Sec.  501.801 of this chapter on 
licensing procedures.

Sec.  591.307  OFAC.

    The term OFAC means the Department of the Treasury's Office of 
Foreign Assets Control.


Sec.  591.308  Person.

    The term person means an individual or entity.


Sec.  591.309  Property; property interest.

    The terms property and property interest include, but are not 
limited to, money, checks, drafts, bullion, bank deposits, savings 
accounts, debts, indebtedness, obligations, notes, guarantees, 
debentures, stocks, bonds, coupons, any other financial instruments, 
bankers acceptances, mortgages, pledges, liens or other rights in the 
nature of security, warehouse receipts, bills of lading, trust 
receipts, bills of sale, any other evidences of title, ownership or 
indebtedness, letters of credit and any documents relating to any 
rights or obligations thereunder, powers of attorney, goods, wares, 
merchandise, chattels, stocks on hand, ships, goods on ships, real 
estate mortgages, deeds of trust, vendors' sales agreements, land 
contracts, leaseholds, ground rents, real estate and any other interest 
therein, options, negotiable instruments, trade acceptances, royalties, 
book accounts, accounts payable, judgments, patents, trademarks or 
copyrights, insurance policies, safe deposit boxes and their contents, 
annuities, pooling agreements, services of any nature whatsoever, 
contracts of any nature whatsoever, and any other property, real, 
personal, or mixed, tangible or intangible, or interest or interests 
therein, present, future, or contingent.


Sec.  591.310  Transfer.

    The term transfer means any actual or purported act or transaction, 
whether or not evidenced by writing, and whether or not done or 
performed within the United States, the purpose, intent, or effect of 
which is to create, surrender, release, convey, transfer, or alter, 
directly or indirectly, any right, remedy, power, privilege, or 
interest with respect to any property. Without limitation on the 
foregoing, it shall include the making, execution, or delivery of any 
assignment, power, conveyance, check, declaration, deed, deed of trust, 
power of attorney, power of appointment, bill of sale, mortgage, 
receipt, agreement,

[[Page 39680]]

contract, certificate, gift, sale, affidavit, or statement; the making 
of any payment; the setting off of any obligation or credit; the 
appointment of any agent, trustee, or fiduciary; the creation or 
transfer of any lien; the issuance, docketing, or filing of, or levy of 
or under, any judgment, decree, attachment, injunction, execution, or 
other judicial or administrative process or order, or the service of 
any garnishment; the acquisition of any interest of any nature 
whatsoever by reason of a judgment or decree of any foreign country; 
the fulfillment of any condition; the exercise of any power of 
appointment, power of attorney, or other power; or the acquisition, 
disposition, transportation, importation, exportation, or withdrawal of 
any security.


Sec.  591.311  United States.

    The term United States means the United States, its territories and 
possessions, and all areas under the jurisdiction or authority thereof.


Sec.  591.312  United States person; U.S. person.

    The term United States person or U.S. person means any United 
States citizen, permanent resident alien, entity organized under the 
laws of the United States or any jurisdiction within the United States 
(including foreign branches), or any person in the United States.


Sec.  591.313  U.S. financial institution.

    The term U.S. financial institution means any U.S. entity 
(including its foreign branches) that is engaged in the business of 
accepting deposits, making, granting, transferring, holding, or 
brokering loans or credits, or purchasing or selling foreign exchange, 
securities, or commodity futures or options, or procuring purchasers 
and sellers thereof, as principal or agent. It includes depository 
institutions, banks, savings banks, trust companies, securities brokers 
and dealers, commodity futures and options brokers and dealers, forward 
contract and foreign exchange merchants, securities and commodities 
exchanges, clearing corporations, investment companies, employee 
benefit plans, and U.S. holding companies, U.S. affiliates, or U.S. 
subsidiaries of any of the foregoing. This term includes those 
branches, offices, and agencies of foreign financial institutions that 
are located in the United States, but not such institutions' foreign 
branches, offices, or agencies.

Subpart D--Interpretations


Sec.  591.401  [Reserved]


Sec.  591.402  Effect of amendment.

    Unless otherwise specifically provided, any amendment, 
modification, or revocation of any provision in or appendix to this 
part or chapter or of any order, regulation, ruling, instruction, or 
license issued by OFAC does not affect any act done or omitted, or any 
civil or criminal proceeding commenced or pending, prior to such 
amendment, modification, or revocation. All penalties, forfeitures, and 
liabilities under any such order, regulation, ruling, instruction, or 
license continue and may be enforced as if such amendment, 
modification, or revocation had not been made.


Sec.  591.403  Termination and acquisition of an interest in blocked 
property.

    (a) Whenever a transaction licensed or authorized by or pursuant to 
this part results in the transfer of property (including any property 
interest) away from a person whose property and interests in property 
are blocked pursuant to Sec.  591.201, such property shall no longer be 
deemed to be property blocked pursuant to Sec.  591.201, unless there 
exists in the property another interest that is blocked pursuant to 
Sec.  591.201, the transfer of which has not been effected pursuant to 
license or other authorization.
    (b) Unless otherwise specifically provided in a license or other 
authorization issued pursuant to this part, if property (including any 
property interest) is transferred or attempted to be transferred to a 
person whose property and interests in property are blocked pursuant to 
Sec.  591.201, such property shall be deemed to be property in which 
such a person has an interest and therefore blocked.


Sec.  591.404  Transactions ordinarily incident to a licensed 
transaction.

    Any transaction ordinarily incident to a licensed transaction and 
necessary to give effect thereto is also authorized, except:
    (a) An ordinarily incident transaction, not explicitly authorized 
within the terms of the license, by or with a person whose property and 
interests in property are blocked pursuant to Sec.  591.201; or
    (b) An ordinarily incident transaction, not explicitly authorized 
within the terms of the license, involving a debit to a blocked account 
or a transfer of blocked property.


Sec.  591.405  Setoffs prohibited.

    A setoff against blocked property (including a blocked account), 
whether by a U.S. bank or other U.S. person, is a prohibited transfer 
under Sec.  591.201 if effected after the effective date.


Sec.  591.406  Entities owned by persons whose property and interests 
in property are blocked.

    Persons whose property and interests in property are blocked 
pursuant to Sec.  591.201 have an interest in all property and 
interests in property of an entity in which such blocked persons own, 
whether individually or in the aggregate, 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 Sec.  
591.201, regardless of whether the name of the entity is incorporated 
into OFAC's Specially Designated Nationals and Blocked Persons List 
(SDN List).

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


Sec.  591.501  General and specific licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E of this chapter. Licensing actions taken pursuant to part 501 
of this chapter with respect to the prohibitions contained in this part 
are considered actions taken pursuant to this part. General licenses 
and statements of licensing policy relating to this part also may be 
available through the Venezuela sanctions page on OFAC's Web site: 
www.treasury.gov/ofac.


Sec.  591.502  [Reserved]


Sec.  591.503  Exclusion from licenses.

    OFAC reserves the right to exclude any person, property, 
transaction, or class thereof from the operation of any license or from 
the privileges conferred by any license. OFAC also reserves the right 
to restrict the applicability of any license to particular persons, 
property, transactions, or classes thereof. Such actions are binding 
upon actual or constructive notice of the exclusions or restrictions.


Sec.  591.504  Payments and transfers to blocked accounts in U.S. 
financial institutions.

    Any payment of funds or transfer of credit in which a person whose 
property and interests in property are blocked pursuant to Sec.  
591.201 has any interest that comes within the possession or control of 
a U.S. financial institution

[[Page 39681]]

must be blocked in an account on the books of that financial 
institution. A transfer of funds or credit by a U.S. financial 
institution between blocked accounts in its branches or offices is 
authorized, provided that no transfer is made from an account within 
the United States to an account held outside the United States, and 
further provided that a transfer from a blocked account may be made 
only to another blocked account held in the same name.

    Note to Sec.  591.504: See Sec.  501.603 of this chapter for 
mandatory reporting requirements regarding financial transfers. See 
also Sec.  591.203 concerning the obligation to hold blocked funds 
in interest-bearing accounts.

Sec.  591.505  Entries in certain accounts for normal service charges 
authorized.

    (a) A U.S. financial institution is authorized to debit any blocked 
account held at that financial institution in payment or reimbursement 
for normal service charges owed it by the owner of that blocked 
account.
    (b) As used in this section, the term normal service charges shall 
include charges in payment or reimbursement for interest due; cable, 
telegraph, Internet, or telephone charges; postage costs; custody fees; 
small adjustment charges to correct bookkeeping errors; and, but not by 
way of limitation, minimum balance charges, notary and protest fees, 
and charges for reference books, photocopies, credit reports, 
transcripts of statements, registered mail, insurance, stationery and 
supplies, and other similar items.


Sec.  591.506  Provision of certain legal services authorized.

    (a) The provision of the following legal services to or on behalf 
of persons whose property and interests in property are blocked 
pursuant to Sec.  591.201 or any further Executive orders relating to 
the national emergency declared in Executive Order 13692 of March 8, 
2015, is authorized, provided that receipt of payment of professional 
fees and reimbursement of incurred expenses must be specifically 
licensed or otherwise authorized pursuant to Sec.  591.507:
    (1) Provision of legal advice and counseling on the requirements of 
and compliance with the laws of the United States or any jurisdiction 
within the United States, provided that such advice and counseling are 
not provided to facilitate transactions in violation of this part;
    (2) Representation of persons named as defendants in or otherwise 
made parties to legal, arbitration, or administrative proceedings 
before any U.S. federal, state, or local court or agency;
    (3) Initiation and conduct of legal, arbitration, or administrative 
proceedings before any U.S. federal, state, or local court or agency;
    (4) Representation of persons before any U.S. federal, state, or 
local court or agency with respect to the imposition, administration, 
or enforcement of U.S. sanctions against such persons; and
    (5) Provision of legal services in any other context in which 
prevailing U.S. law requires access to legal counsel at public expense.
    (b) The provision of any other legal services to persons whose 
property and interests in property are blocked pursuant to Sec.  
591.201 or any further Executive orders relating to the national 
emergency declared in Executive Order 13692 of March 8, 2015, not 
otherwise authorized in this part, requires the issuance of a specific 
license.
    (c) Entry into a settlement agreement or the enforcement of any 
lien, judgment, arbitral award, decree, or other order through 
execution, garnishment, or other judicial process purporting to 
transfer or otherwise alter or affect property or interests in property 
blocked pursuant to Sec.  591.201 or any further Executive orders 
relating to the national emergency declared in Executive Order 13692 of 
March 8, 2015, is prohibited unless licensed pursuant to this part.

    Note to Sec.  591.506: U.S. persons seeking administrative 
reconsideration or judicial review of their designation or the 
blocking of their property and interests in property may apply for a 
specific license from OFAC to authorize the release of a limited 
amount of blocked funds for the payment of legal fees where 
alternative funding sources are not available. For more information, 
see OFAC's Guidance on the Release of Limited Amounts of Blocked 
Funds for Payment of Legal Fees and Costs Incurred in Challenging 
the Blocking of U.S. Persons in Administrative or Civil Proceedings, 
which is available on OFAC's Web site: www.treasury.gov/ofac.

Sec.  591.507  Payments for legal services from funds originating 
outside the United States authorized.

    (a) Receipts of payment of professional fees and reimbursement of 
incurred expenses for the provision of legal services authorized 
pursuant to Sec.  591.506(a) to or on behalf of any person whose 
property and interests in property are blocked pursuant to Sec.  
591.201 or any further Executive orders relating to the national 
emergency declared in Executive Order 13692 of March 8, 2015, are 
authorized from funds originating outside the United States, provided 
that the funds received by U.S. persons as payment of professional fees 
and reimbursement of incurred expenses for the provision of legal 
services authorized pursuant to Sec.  591.506(a) do not originate from:
    (1) A source within the United States;
    (2) Any source, wherever located, within the possession or control 
of a U.S. person; or
    (3) Any individual or entity, other than the person on whose behalf 
the legal services authorized pursuant to Sec.  591.506(a) are to be 
provided, whose property and interests in property are blocked pursuant 
to any part of this chapter or any Executive order.

    Note to paragraph (a) of Sec.  591.507: This paragraph 
authorizes the blocked person on whose behalf the legal services 
authorized pursuant to Sec.  591.506(a) are to be provided to make 
payments for authorized legal services using funds originating 
outside the United States that were not previously blocked. Nothing 
in this paragraph authorizes payments for legal services using funds 
in which any other person whose property and interests in property 
are blocked pursuant to Sec.  591.201 or any further Executive 
orders relating to the national emergency declared in Executive 
Order 13692 of March 8, 2015, any other part of this chapter, or any 
Executive order has an interest.

    (b) Reports. (1) U.S. persons who receive payments in connection 
with legal services authorized pursuant to Sec.  591.506(a) must submit 
annual reports no later than 30 days following the end of the calendar 
year during which the payments were received providing information on 
the funds received. Such reports shall specify:
    (i) The individual or entity from whom the funds originated and the 
amount of funds received; and
    (ii) If applicable:
    (A) The names of any individuals or entities providing related 
services to the U.S. person receiving payment in connection with 
authorized legal services, such as private investigators or expert 
witnesses;
    (B) A general description of the services provided; and
    (C) The amount of funds paid in connection with such services.
    (2) The reports, which must reference this section, are to be 
mailed to: Licensing Division, Office of Foreign Assets Control, U.S. 
Department of the Treasury, 1500 Pennsylvania Avenue NW., Annex, 
Washington, DC 20220.

    Note to Sec.  591.507: U.S. persons who receive payments in 
connection with legal services authorized pursuant to Sec.  
591.506(a) do not need to obtain specific authorization to contract 
for related services that are ordinarily incident to the provision 
of those legal services, such as those provided by private 
investigators or expert witnesses, or to pay for such services. 
Additionally, U.S. persons do not need to obtain specific

[[Page 39682]]

authorization to provide related services that are ordinarily 
incident to the provision of legal services authorized pursuant to 
Sec.  591.506(a).

Sec.  591.508  Authorization of emergency medical services.

    The provision of nonscheduled emergency medical services in the 
United States to persons whose property and interests in property are 
blocked pursuant to Sec.  591.201 or any further Executive orders 
relating to the national emergency declared in Executive Order 13692 of 
March 8, 2015, is authorized, provided that all receipt of payment for 
such services must be specifically licensed.

Subparts F-G--[Reserved]

Subpart H--Procedures


Sec.  591.801  [Reserved]


Sec.  591.802  Delegation by the Secretary of the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to Executive Order 13692 of March 8, 2015, and any further 
Executive orders relating to the national emergency declared therein, 
may be taken by the Director of OFAC or by any other person to whom the 
Secretary of the Treasury has delegated authority so to act.

Subpart I--Paperwork Reduction Act


Sec.  591.901  Paperwork Reduction Act notice.

    For approval by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507) of information 
collections relating to recordkeeping and reporting requirements, 
licensing procedures (including those pursuant to statements of 
licensing policy), and other procedures, see Sec.  501.901 of this 
chapter. An agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless it displays 
a valid control number assigned by OMB.

APPENDIX A TO PART 591--Executive Order 13692

Executive Order 13692 of March 8, 2015

Blocking Property and Suspending Entry of Certain Persons Contributing 
to the Situation in Venezuela

    By the authority vested in me as President by the Constitution 
and the laws of the United States of America, including the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
(IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) 
(NEA), the Venezuela Defense of Human Rights and Civil Society Act 
of 2014 (Public Law 113-278) (the ``Venezuela Defense of Human 
Rights Act'') (the ``Act''), section 212(f) of the Immigration and 
Nationality Act of 1952 (8 U.S.C. 1182(f)) (INA), and section 301 of 
title 3, United States Code,
    I, BARACK OBAMA, President of the United States of America, find 
that the situation in Venezuela, including the Government of 
Venezuela's erosion of human rights guarantees, persecution of 
political opponents, curtailment of press freedoms, use of violence 
and human rights violations and abuses in response to antigovernment 
protests, and arbitrary arrest and detention of antigovernment 
protestors, as well as the exacerbating presence of significant 
public corruption, constitutes an unusual and extraordinary threat 
to the national security and foreign policy of the United States, 
and I hereby declare a national emergency to deal with that threat. 
I hereby order:
    Section 1. (a) All property and interests in property that are 
in the United States, that hereafter come within the United States, 
or that are or hereafter come within the possession or control of 
any United States person of the following persons are blocked and 
may not be transferred, paid, exported, withdrawn, or otherwise 
dealt in:
    (i) the persons listed in the Annex to this order; and
    (ii) any person determined by the Secretary of the Treasury, in 
consultation with the Secretary of State:
    (A) to be responsible for or complicit in, or responsible for 
ordering, controlling, or otherwise directing, or to have 
participated in, directly or indirectly, any of the following in or 
in relation to Venezuela:
    (1) actions or policies that undermine democratic processes or 
institutions;
    (2) significant acts of violence or conduct that constitutes a 
serious abuse or violation of human rights, including against 
persons involved in antigovernment protests in Venezuela in or since 
February 2014;
    (3) actions that prohibit, limit, or penalize the exercise of 
freedom of expression or peaceful assembly; or
    (4) public corruption by senior officials within the Government 
of Venezuela;
    (B) to be a current or former leader of an entity that has, or 
whose members have, engaged in any activity described in subsection 
(a)(ii)(A) of this section or of an entity whose property and 
interests in property are blocked pursuant to this order;
    (C) to be a current or former official of the Government of 
Venezuela;
    (D) to have materially assisted, sponsored, or provided 
financial, material, or technological support for, or goods or 
services to or in support of:
    (1) a person whose property and interests in property are 
blocked pursuant to this order; or
    (2) an activity described in subsection (a)(ii)(A) of this 
section; or
    (E) to be owned or controlled by, or to have acted or purported 
to act for or on behalf of, directly or indirectly, any person whose 
property and interests in property are blocked pursuant to this 
order.
    (b) The prohibitions in subsection (a) of this section apply 
except to the extent provided by statutes, or in regulations, 
orders, directives, or licenses that may be issued pursuant to this 
order, and notwithstanding any contract entered into or any license 
or permit granted prior to the effective date of this order.
    Sec. 2. I hereby find that the unrestricted immigrant and 
nonimmigrant entry into the United States of aliens determined to 
meet one or more of the criteria in subsection 1(a) of this order 
would be detrimental to the interests of the United States, and I 
hereby suspend entry into the United States, as immigrants or 
nonimmigrants, of such persons, except where the Secretary of State 
determines that the person's entry is in the national interest of 
the United States. This section shall not apply to an alien if 
admitting the alien into the United States is necessary to permit 
the United States to comply with the Agreement Regarding the 
Headquarters of the United Nations, signed at Lake Success June 26, 
1947, and entered into force November 21, 1947, or other applicable 
international obligations.
    Sec. 3. I hereby determine that the making of donations of the 
type of articles specified in section 203(b)(2) of IEEPA (50 U.S.C. 
1702(b)(2)) by, to, or for the benefit of any person whose property 
and interests in property are blocked pursuant to section 1 of this 
order would seriously impair my ability to deal with the national 
emergency declared in this order, and I hereby prohibit such 
donations as provided by section 1 of this order.
    Sec. 4. The prohibitions in section 1 of this order include but 
are not limited to:
    (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 this order; and
    (b) the receipt of any contribution or provision of funds, 
goods, or services from any such person.
    Sec. 5. (a) Any transaction that evades or avoids, has the 
purpose of evading or avoiding, causes a violation of, or attempts 
to violate any of the prohibitions set forth in this order is 
prohibited.
    (b) Any conspiracy formed to violate any of the prohibitions set 
forth in this order is prohibited.
    Sec. 6. For the purposes of this order:
    (a) the term ``person'' means an individual or entity;
    (b) the term ``entity'' means a partnership, association, trust, 
joint venture, corporation, group, subgroup, or other organization;
    (c) the term ``United States person'' means any United States 
citizen, permanent resident alien, entity organized under the laws 
of the United States or any jurisdiction within the United States 
(including foreign branches), or any person in the United States;
    (d) the term ``Government of Venezuela'' means the Government of 
Venezuela, any political subdivision, agency, or instrumentality 
thereof, including the Central Bank of Venezuela, and any person 
owned or controlled by, or acting for or on behalf of, the 
Government of Venezuela.
    Sec. 7. For those persons whose property and interests in 
property are blocked pursuant to this order who might have a 
constitutional presence in the United States, I find that because of 
the ability to transfer funds or other assets instantaneously, prior

[[Page 39683]]

notice to such persons of measures to be taken pursuant to this 
order would render those measures ineffectual. I therefore determine 
that for these measures to be effective in addressing the national 
emergency declared in this order, there need be no prior notice of a 
listing or determination made pursuant to section 1 of this order.
    Sec. 8. The Secretary of the Treasury, in consultation with the 
Secretary of State, is hereby authorized to take such actions, 
including the promulgation of rules and regulations, and to employ 
all powers granted to the President by IEEPA and section 5 of the 
Venezuela Defense of Human Rights Act, other than the authorities 
contained in sections 5(b)(1)(B) and 5(c) of that Act, as may be 
necessary to carry out the purposes of this order, with the 
exception of section 2 of this order, and the relevant provisions of 
section 5 of that Act. The Secretary of the Treasury may redelegate 
any of these functions to other officers and agencies of the United 
States Government consistent with applicable law. All agencies of 
the United States Government are hereby directed to take all 
appropriate measures within their authority to carry out the 
provisions of this order.
    Sec. 9. The Secretary of State is hereby authorized to take such 
actions, including the promulgation of rules and regulations, and to 
employ all powers granted to the President by IEEPA, the INA, and 
section 5 of the Venezuela Defense of Human Rights Act, including 
the authorities set forth in sections 5(b)(1)(B), 5(c), and 5(d) of 
that Act, as may be necessary to carry out section 2 of this order 
and the relevant provisions of section 5 of that Act. The Secretary 
of State may redelegate any of these functions to other officers and 
agencies of the United States Government consistent with applicable 
law.
    Sec. 10. The Secretary of the Treasury, in consultation with the 
Secretary of State, is hereby authorized to determine that 
circumstances no longer warrant the blocking of the property and 
interests in property of a person listed in the Annex to this order, 
and to take necessary action to give effect to that determination.
    Sec. 11. The Secretary of the Treasury, in consultation with the 
Secretary of State, is hereby authorized to submit the recurring and 
final reports to the Congress on the national emergency declared in 
this order, consistent with section 401(c) of the NEA (50 U.S.C. 
1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).
    Sec. 12. This order is not intended to, and does not, create any 
right or benefit, substantive or procedural, enforceable at law or 
in equity by any party against the United States, its departments, 
agencies, or entities, its officers, employees, or agents, or any 
other person.
    Sec. 13. This order is effective at 12:01 a.m. eastern daylight 
time on March 9, 2015.

Barack Obama
THE WHITE HOUSE,
March 8, 2015

Annex

1. Antonio Jos[eacute] Benavides Torres [Commander of the Central 
Integral Strategic Defense Region of the National Armed Forces, 
former Director of Operations for the National Guard; born June 13, 
1961]
2. Gustavo Enrique Gonz[aacute]lez L[oacute]pez [Director General of 
the National Intelligence Service and President of the Strategic 
Center of Security and Protection of the Homeland; born November 2, 
1960]
3. Justo Jos[eacute] Noguera Pietri [President of the Venezuelan 
Corporation of Guayana, former General Commander of the National 
Guard; born March 15, 1961]
4. Katherine Nayarith Haringhton Padron [National Level Prosecutor 
of the 20th District Office of the Public Ministry; born December 5, 
1971]
5. Manuel Eduardo P[eacute]rez Urdaneta [Director of the National 
Police; born May 26, 1962]
6. Manuel Gregorio Bernal Mart[iacute]nez [Chief of the 31st Armored 
Brigade of Caracas, former Director General of the National 
Intelligence Service; born July 12, 1965]
7. Miguel Alcides Vivas Landino [Inspector General of the National 
Armed Forces, former Commander of the Andes Integral Strategic 
Defense Region of the National Armed Forces; born July 8, 1961]

    Dated: July 2, 2015.
John E. Smith,
Acting Director, Office of Foreign Assets Control.

    Approved:

    Dated: July 2, 2015.
Adam J. Szubin,
Acting Under Secretary, Office of Terrorism and Financial Intelligence, 
Department of the Treasury.
[FR Doc. 2015-16782 Filed 7-9-15; 8:45 am]
 BILLING CODE P