Implementation of the Federal Civil Penalties Inflation Adjustment Act, 43070-43077 [2016-15552]
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Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
Procedural Requirements
Administrative Procedure Act.
Because this final rule relates to public
contracts and procedures for United
States securities, the notice, public
comment, and delayed effective date
provisions of the Administrative
Procedure Act are inapplicable,
pursuant to 5 U.S.C. 553(a)(2).
Text of Amendments
§ 356.31
Accordingly, 31 CFR part 356 is
amended by making the following
technical amendments:
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PART 356—SALE AND ISSUE OF
MARKETABLE BOOK–ENTRY
TREASURY BILLS, NOTES, AND
BONDS (DEPARTMENT OF THE
TREASURY CIRCULAR, FISCAL
SERVICE SERIES NO. 1–93)
1. The authority citation for part 356
continues to read as follows:
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§ 356.2
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[Amended]
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ACTION:
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BILLING CODE 4810–AS–P
DEPARTMENT OF THE TREASURY
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Office of Foreign Assets Control
31 CFR Parts 501, 535, 536, 537, 538,
539, 541, 542, 543, 544, 546, 547, 548,
549, 560, 561, 566, 576, 588, 592, 593,
594, 595, 597, and 598.
Implementation of the Federal Civil
Penalties Inflation Adjustment Act
Office of Foreign Assets
Control, Treasury.
AGENCY:
16:44 Jun 30, 2016
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is issuing this interim
final rule to amend its regulations for
the relevant sanctions programs it
administers to implement the Federal
Civil Penalties Inflation Adjustment Act
of 1990, as amended by the Debt
Collection Improvement Act of 1996
and the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015. In particular, this rule adjusts for
inflation the maximum amount of the
civil monetary penalties that may be
assessed under relevant OFAC
regulations, including by making
conforming changes to OFAC’s
‘‘Economic Sanctions Enforcement
Guidelines.’’
SUMMARY:
[FR Doc. 2016–15248 Filed 6–30–16; 8:45 am]
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Interim final rule with request
for comments.
David A. Lebryk,
Fiscal Assistant Secretary.
Jkt 238001
4. Appendix B to part 356 is amended
by removing two paragraphs of
introductory text following the table of
contents and adding one paragraph in
its place, and revising Section IV,
subsection D, paragraphs (a), (b), and (c)
to read as follows:
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Appendix B to Part 356—Formulas and
Tables
List of Subjects in 31 CFR Part 356
Banks, banking, Bonds, Federal
Reserve System, Government securities,
Reporting and recordkeeping
requirements, Securities.
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3. Section 356.31 is amended in the
last sentences of paragraphs (c)(3)(i) and
(iii) by removing the reference to
‘‘section IV’’ and adding in its place
‘‘section V.’’
Authority: 5 U.S.C. 301; 31 U.S.C. 3102,
et seq.; 12 U.S.C. 391.
2. Section 356.2 is amended in the last
sentence of the definition of ‘‘accrued
interest’’ by removing the reference to
‘‘paragraph C’’ and adding in its place
‘‘paragraph D’’ and in the last sentence
of paragraph (2) in the definition of
‘‘adjusted value’’ by removing the
reference to ‘‘section IV’’ and adding in
its place ‘‘section V.’’
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[Amended]
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The examples in this appendix are given
for illustrative purposes only and are in no
way a prediction of interest rates on any bills,
notes, or bonds issued under this part. In
some of the following examples, we use
intermediate rounding for ease in following
the calculations.
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IV. * * *
D. * * *
This rule is effective August 1,
2016. Comments must be received on or
before August 1, 2016.
ADDRESSES: You may submit comments
by any of the following methods:
Federal eRulemaking Portal:
www.regulations.gov. Follow the
instructions on the Web site for
submitting comments.
Fax: Attn: Request for Comments
(Amendments to OFAC Regulations to
Implement the Federal Civil Penalties
Inflation Adjustment Act) 202–622–
1657.
Mail: Attn: Request for Comments
(Amendments to OFAC Regulations to
Implement the Federal Civil Penalties
Inflation Adjustment Act), Office of
Foreign Assets Control, Department of
the Treasury, 1500 Pennsylvania
Avenue NW, Freedman’s Bank Building,
Washington, DC 20220.
DATES:
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Hawkins, Government Securities
Regulations Staff, Bureau of the Fiscal
Service, Department of the Treasury,
(202) 504–3632 or email us at
govsecreg@fiscal.treasury.gov.
SUPPLEMENTARY INFORMATION: We are
making non-substantive technical
corrections to §§ 356.2, 356.31, and
appendix B to part 356. The
amendments re-designate cross
references to other parts of the rules,
revise the introductory text of a
paragraph, and restate a variable.
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
Instructions: All submissions received
must include the agency name and the
Federal Register Doc. number that
appears at the end of this document. All
comments, including attachments and
other supporting materials, will become
part of the public record and subject to
public disclosure. Sensitive personal
information, such as account numbers
or Social Security numbers, should not
be included. Comments generally will
not be edited to remove any identifying
or contact information.
FOR FURTHER INFORMATION CONTACT: The
Department of the Treasury’s Office of
Foreign Assets Control: Assistant
Director for Enforcement, tel.: 202–622–
2430; Assistant Director for Licensing,
tel.: 202–622–2480, Assistant Director
for Regulatory Affairs, tel.: 202–622–
4855, Assistant Director for Sanctions
Compliance & Evaluation, tel.: 202–622–
2490; or the Department of the
Treasury’s Office of the Chief Counsel
(Foreign Assets Control), Office of the
General Counsel, tel.: 202–622–2410.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional
information concerning OFAC are
available from OFAC’s Web site (https://
www.treasury.gov/ofac).
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Background
Section 4 of the Federal Civil
Penalties Inflation Adjustment Act
(1990 Pub. L. 101–410, 104 Stat. 890; 28
U.S.C. 2461 note), as amended by the
Debt Collection Improvement Act of
1996 (Pub. L. 104–134, 110 Stat. 1321–
373) and the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 (Pub. L. 114–74, 129 Stat.
599, 28 U.S.C. 2461 note) (collectively,
the FCPIA Act), requires each federal
agency with statutory authority to assess
civil monetary penalties (CMPs) to
adjust CMPs for inflation according to a
formula described in section 5 of the
FCPIA Act. One purpose of the FCPIA
Act is to ensure that CMPs continue to
maintain their deterrent effect through
periodic cost-of-living based
adjustments.
The FCPIA Act directs agencies to
adjust the level of CMPs for inflation
annually, with an initial ‘‘catch up’’
adjustment effective no later than
August 1, 2016. Catch-up adjustments
will be based on the percent change
between the Consumer Price Index for
all Urban Consumers (CPI–U) for the
month of October in the year of the last
non-FCPIA-Act-based adjustment and
the October 2015 CPI–U. In accordance
with the FCPIA Act, however, the
amount of the CMP catch-up adjustment
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shall not exceed 150 percent of the
corresponding level in effect on
November 2, 2015 (the ‘‘maximum
adjustment’’). Annual inflation
adjustments will be based on the
percent change between the October
CPI–U preceding the date of the
adjustment and the prior year’s October
CPI–U. The FCPIA Act requires agencies
to round all CMP levels to the nearest
dollar after applying the multiplier.
In order to complete the catch-up
adjustment, the FCPIA Act directs
agencies to use as a starting point for
each CMP the year and corresponding
amount(s) for which the maximum CMP
level or range of minimum and
maximum CMPs was established or last
adjusted, whichever is later, other than
pursuant to the FCPIA Act. The catchup calculations therefore exclude prior
inflationary adjustments under the
FCPIA Act.
On February 24, 2016, the Office of
Management and Budget issued written
guidance providing agencies with CPI–
U related multipliers to use when
adjusting the CMP level or range of CMP
levels based on the year the CMP was
established or last adjusted by statute or
regulation. (Memorandum for the Heads
of Executive Departments and Agencies:
Implementation of the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (OMB
Guidance)).
The adjusted civil penalty amounts
described in this rule are applicable
only to civil penalties assessed after
August 1, 2016, whose associated
violations occurred after November 2,
2015, the date of enactment of the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act.
Therefore, violations occurring on or
before November 2, 2015, and
assessments made prior to August 1,
2016 whose associated violations
occurred after November 2, 2015, will
continue to be subject to the civil
monetary penalty amounts set forth in
OFAC’s existing regulations.
OFAC currently is authorized to
impose CMPs pursuant to five statutes:
the Trading With the Enemy Act (50
U.S.C. 4315) (TWEA); the International
Emergency Economic Powers Act (50
U.S.C. 1705) (IEEPA); the Antiterrorism
and Effective Death Penalty Act of 1996
(Pub. L. 104–132, 110 Stat. 1250; 18
U.S.C. 2339B) (AEDPA); the Foreign
Narcotics Kingpin Designation Act (Pub.
L. 106–120, 113 Stat. 1632; 21 U.S.C.
1901–1908) (FNKDA); and the Clean
Diamond Trade Act (Pub. L. 108–19,
117 Stat. 631; 19 U.S.C. 3901–3913)
(CDTA). The maximum CMPs under the
statutes were last adjusted or set by
statute as follows: TWEA in 1992;
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IEEPA in 2007; AEDPA in 1996; FNKDA
in 1999, and CDTA in 2003.
TWEA. The maximum TWEA-based
CMP was established at $50,000 in 1992
by the National Defense Authorization
Act for Fiscal Year 1993 (Pub. L. 102–
484, 106 Stat. 2315, 50 U.S.C. 4315).
Although there were two subsequent
adjustments, bringing the current
maximum CMP to $65,000, those
adjustments were made pursuant to the
FCPIA Act and therefore will not be
considered for purposes of determining
the new maximum CMP. Pursuant to the
OMB Guidance, the relevant inflation
factor is 1.67728. Multiplying the CMP
amount of $50,000 by the inflation
factor of 1.67728 and rounding to the
nearest dollar results in $83,864. This
would be an increase of $33,864.
Pursuant to the FCPIA Act, the
maximum adjustment amount is 150%
of $65,000 (the CMP in effect on
November 2, 2015), or $97,500. The
increase does not exceed the maximum
adjustment. Therefore, the maximum
TWEA-based CMP effective August 1,
2016 is increased to the inflationadjusted amount of $83,864 per
violation.
IEEPA. The maximum IEEPA-based
CMP of the greater of $250,000 or twice
the amount of the underlying
transaction was set in 2007 by the
International Emergency Economic
Powers Enhancement Act (Pub. L. 110–
96, 121 Stat. 1011; 50 U.S.C. 1705 note).
Pursuant to the OMB Guidance, the
relevant inflation factor is 1.13833.
Multiplying the current penalty amount
of $250,000 by the inflation factor of
1.13833 and rounding to the nearest
dollar amount results in a maximum
penalty amount of the greater of
$284,582 or twice the amount of the
underlying transaction per violation.
This would be an increase of $34,582.
Pursuant to the FCPIA Act, the
maximum adjustment is 150% of
$250,000 (the CMP in effect on
November 2, 2015), or $375,000. The
increase does not exceed the maximum
adjustment. Therefore, the maximum
IEEPA CMP effective August 1, 2016 is
increased to the inflation-adjusted
amount of $284,582 or twice the amount
of the underlying transaction per
violation. The FCPIA Act applies only
to CMPs that are for a specific monetary
amount as provided by Federal law.
Accordingly, the alternative IEEPA CMP
of twice the amount of the underlying
transaction remains unchanged.
AEDPA. The maximum AEDPA-based
CMP of the greater of $50,000 or twice
the amount of which a financial
institution was required to retain
possession or control was set by statute
in 1996 (Pub. L. 104–132, 110 Stat.
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1250; 18 U.S.C. 2339B). Although there
was one subsequent adjustment,
bringing the current maximum CMP to
$55,000, that adjustment was made
pursuant to the FCPIA Act and therefore
will not be considered in the new
maximum CMP calculation. Pursuant to
the OMB Guidance, the relevant
inflation factor is 1.50245. Multiplying
the CMP amount of $50,000 by the
inflation factor of 1.50245 and rounding
to the nearest dollar results in $75,122.
This would be an increase of $20,122.
Pursuant to the FCPIA Act, the
maximum adjustment is 150% of
$55,000 (the CMP in effect on November
2, 2015), or $82,500. The increase does
not exceed the maximum adjustment.
Therefore, the maximum AEDPA-based
CMP per violation effective August 1,
2016 is increased to the inflationadjusted amount of the greater of
$75,122 or twice the amount of which
a financial institution was required to
retain possession or control. The FCPIA
Act applies only to CMPs that are for a
specific monetary amount as provided
by Federal law. Accordingly, the
alternative AEDPA CMP of twice the
amount of which a financial institution
was required to retain possession or
control remains unchanged.
FNKDA. The maximum FNKDA-based
CMP of $1,000,000 was set in 1999 by
the Intelligence Authorization Act for
Fiscal Year 2000 (Pub. L. 106–120, 113
Stat. 1632; 21 U.S.C. 1901–1908).
Although there was one subsequent
adjustment, bringing the current
maximum CMP to $1,075,000, that
adjustment was made pursuant to the
FCPIA Act and therefore will not be
considered in the new maximum CMP
calculation. Pursuant to OMB Guidance,
the relevant inflation factor is 1.41402.
Multiplying the CMP of $1,000,000 by
the inflation factor of 1.41402 and
rounding to the nearest dollar results in
$1,414,020. This would be an increase
of $414,020. Pursuant to the FCPIA Act,
the maximum adjustment is 150% of
$1,075,000 (the CMP in effect on
November 2, 2015), or $1,612,500. The
increase does not exceed the maximum
adjustment. Therefore, as of August 1,
2016, the maximum FNKDA-based CMP
is increased to the inflation-adjusted
amount of $1,414,020 per violation.
CDTA. The maximum CDTA-based
CMP of $10,000 was set by statute in
2003. (Pub. L. 108–19, 117 Stat. 631; 19
U.S.C. 3901–3913). Pursuant to the
OMB Guidance, the relevant inflation
factor is 1.28561. Multiplying the
current penalty of $10,000 by the
inflation factor of 1.28561 and rounding
to the nearest dollar results in $12,856.
This would be an increase of $2,856.
Pursuant to the FCPIA Act, the
maximum adjustment is 150% of
$10,000 (the CMP in effect on November
2, 2015), or $15,000. The increase does
not exceed the maximum adjustment.
Therefore, the maximum CDTA-based
CMP effective August 1, 2016 is
increased to the inflation-adjusted
amount of $12,856 per violation.
The table below summarizes the
changes to the penalty amounts:
Statute
Existing penalty amount
Penalty amount effective August 1, 2016
TWEA ...................................
IEEPA ...................................
$65,000 ...........................................................................
The greater of $250,000 or twice the amount of the underlying transaction.
The greater of $55,000 or twice the amount of which a
financial institution was required to retain possession
or control.
$1,075,000 ......................................................................
$10,000 ...........................................................................
$83,864.
The greater of $284,582 or twice the amount of the underlying transaction.
The greater of $75,122 or twice the amount of which a
financial institution was required to retain possession
or control.
$1,414,020.
$12,856.
AEDPA .................................
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FNKDA .................................
CDTA ...................................
The regulations for many of the
sanctions programs administered by
OFAC, as well as the Reporting,
Procedures and Penalties Regulations
and the Economic Sanctions
Enforcement Guidelines appended
thereto, contain references to the current
penalty amounts. This interim final rule
revises the relevant parts of 31 CFR
chapter V to update these amounts. The
authority sections of the relevant parts
are not being amended at this time.
This interim final rule also makes
certain technical and conforming
changes to the Enforcement Guidelines.
For example, OFAC is removing one of
the examples of a blocked transaction
appearing at 31 CFR 501.604(b) because
it refers to conduct that is no longer
prohibited following the issuance of
Executive Order 13350 of July 29, 2004.
inflation shall take effect no later than
August 1, 2016.
Effective Date
The Paperwork Reduction Act does
not apply because this rule does not
impose information collection
requirements that would require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501 et seq.
The FCPIA Act requires agencies to
make adjustments for inflation to CMPs
and to provide new CMPs through an
interim final rulemaking to be published
by July 1, 2016. The FCPIA Act further
provides that the adjustments for
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Notice and Comment
List of Subjects for 31 CFR Parts 501,
535, 536, 537, 538, 539, 541, 542, 543,
544, 546, 547, 548, 549, 560, 561, 566,
576, 588, 592, 593, 594, 595, 597, and
598
As required by the FCPIA Act, these
amendments are being published as an
interim final rule with an effective date
of August 1, 2016. Although other
notice and comment procedures are not
required, OFAC invites comments on
this notice.
Administrative practice and
procedure, Banks, Banking, Blocking of
assets, Exports, Foreign trade, Licensing,
Penalties, Sanctions.
For the reasons set forth in the
preamble, 31 CFR chapter V is amended
as follows:
Procedural Requirements
Regulatory Flexibility Act
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
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PART 501—REPORTING,
PROCEDURES AND PENALTIES
REGULATIONS
1. The authority citation for part 501
continues to read as follows:
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Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d,
2339B; 19 U.S.C. 3901–3913; 21 U.S.C. 1901–
1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a),
6009, 6032, 7205; 28 U.S.C. 2461 note; 31
U.S.C. 321(b); 50 U.S.C. 1701–1706; 50 U.S.C.
App. 1–44.
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V. Civil Penalties
§ 501.604
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[Amended]
2. Amend § 501.604 by removing
paragraph (b)(2) and redesignating
paragraphs (b)(3) through (5) as
paragraphs (b)(2) through (4),
respectively.
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Subpart D—Trading With the Enemy
Act (TWEA) Penalties
3. Amend § 501.701 by adding a note
to paragraph (a)(1) and revising
paragraph (a)(3) to read as follows:
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§ 501.701
Penalties.
(a) * * *
(1) * * *
Note 1 to paragraph (a)(1): As of August
1, 2016, TWEA provides for a maximum civil
penalty not to exceed $83,864.
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(3) The Secretary of the Treasury may
impose a civil penalty of not more than
$83,864 per violation on any person
who violates any license, order, or
regulation issued under TWEA.
Note to paragraph (a)(3): The current civil
penalty cap may be adjusted for inflation
pursuant to the Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub. L.
101–410, as amended, 28 U.S.C. 2461 note).
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4. Amend appendix A to part 501 by
revising section V.B.2.a to read as
follows:
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Appendix A to Part 501—Economic
Sanctions Enforcement Guidelines
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B. * * *
2. * * *
a. Base Category Calculation
i. In a non-egregious case, if the
apparent violation is disclosed through
a voluntary self-disclosure by the
Subject Person, the base amount of the
proposed civil penalty in the PrePenalty Notice shall be one-half of the
transaction value, capped at a maximum
base amount of $142,291 per violation,
except where the statutory maximum
penalty applicable to the apparent
violation is less than $284,582, in which
case the base amount of the proposed
civil penalty in the Pre-Penalty Notice
shall be capped at one-half the statutory
maximum penalty applicable to the
apparent violation.
ii. In a non-egregious case, if the
apparent violation comes to OFAC’s
attention by means other than a
voluntary self-disclosure, the base
amount of the proposed civil penalty in
the Pre-Penalty Notice shall be the
‘‘applicable schedule amount,’’ as
defined above. For apparent violations
where the statutory maximum penalty
applicable to the apparent violation is
$284,582 or greater, the maximum base
amount shall be capped at $284,582. For
apparent violations where the statutory
maximum penalty applicable to the
apparent violation is less than $284,582,
the maximum base amount shall be
capped at the statutory maximum
penalty amount applicable to the
apparent violation.
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iii. In an egregious case, if the
apparent violation is disclosed through
a voluntary self-disclosure by a Subject
Person, the base amount of the proposed
civil penalty in the Pre-Penalty Notice
shall be one-half of the applicable
statutory maximum penalty applicable
to the violation.
iv. In an egregious case, if the
apparent violation comes to OFAC’s
attention by means other than a
voluntary self-disclosure, the base
amount of the proposed civil penalty in
the Pre-Penalty Notice shall be the
applicable statutory maximum penalty
amount applicable to the violation.
Note to paragraph (a): As of August 1,
2016, the applicable statutory maximum civil
penalty per violation for each statute
enforced by OFAC is as follows: International
Emergency Economic Powers Act (IEEPA)—
greater of $284,582 or twice the amount of
the underlying transaction; Trading with the
Enemy Act (TWEA)—$83,864; Foreign
Narcotics Kingpin Designation Act
(FNKDA)—$1,414,020; Antiterrorism and
Effective Death Penalty Act of 1996
(AEDPA)—greater of $75,122 or twice the
amount of which a financial institution was
required to retain possession or control; and
Clean Diamond Trade Act (CDTA)—$12,856.
The civil penalty amounts authorized under
these statutes are subject to adjustment
pursuant to the Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub. L.
101–410, as amended, 28 U.S.C. 2461 note).
The following matrix represents the
base amount of the proposed civil
penalty for each category of violation:
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Subpart C—Reports
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PART 537—BURMESE SANCTIONS
REGULATIONS
PART 535—IRANIAN ASSETS
CONTROL REGULATIONS
9. The authority citation for part 537
continues read as follows:
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5. The authority citation for part 535
continues to read as follows:
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Authority: 3 U.S.C. 301; 18 U.S.C. 2332d;
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. 12170, 44 FR 65729, 3 CFR, 1979
Comp., p. 457; E.O. 12205, 45 FR 24099, 3
CFR, 1980 Comp., p. 248; E.O. 12211, 45 FR
26685, 3 CFR, 1980 Comp., p. 253; E.O.
12276, 46 FR 7913, 3 CFR, 1981 Comp., p.
104; E.O. 12279, 46 FR 7919, 3 CFR, 1981
Comp., p. 109; E.O. 12280, 46 FR 7921, 3
CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR
7923, 3 CFR, 1981 Comp., p. 112; E.O. 12282,
46 FR 7925, 3 CFR, 1981 Comp., p. 113; E.O.
12283, 46 FR 7927, 3 CFR, 1981 Comp., p.
114; and E.O. 12294, 46 FR 14111, 3 CFR,
1981 Comp., p. 139.
6. Revise the note to paragraph (a)(1)
of § 535.701 to read as follows:
§ 537.701
Penalties.
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of the Act is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
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Penalties.
(a) * * *
(1) * * *
(a) * * *
(1) * * *
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Subpart G—Penalties
10. Revise the note to paragraph (a)(1)
of § 537.701 to read as follows:
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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);
Sec. 570, Pub. L. 104–208, 110 Stat. 3009;
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C.
1701 note); Pub. L. 110–286, 122 Stat. 2632
(50 U.S.C. 1701 note); E.O. 13047, 62 FR
28301, 3 CFR, 1997 Comp., p. 202; E.O.
13310, 68 FR 44853, 3 CFR, 2003 Comp., p.
241; E.O. 13448, 72 FR 60223, 3 CFR, 2007
Comp., p. 304; E.O. 13464, 73 FR 24491, 3
CFR, 2008 Comp., p. 189; E.O. 13619, 77 FR
41243, 3 CFR, 2012 Comp., p. 279; E.O.
13651, 78 FR 48793 (August 9, 2013);
Determination No. 2009–11, 74 FR 3957, 3
CFR, 2009 Comp., p. 330.
■
Subpart G—Penalties.
§ 535.701
*
*
*
7. The authority citation for part 536
continues to read as follows:
■
*
*
11. The authority citation for part 538
continues 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. 12978,
60 FR 54579, 3 CFR, 1995 Comp., p. 415; E.O.
13286, 68 FR 10619, 3 CFR, 2003 Comp., p.
166.
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B,
2332d; 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); 22 U.S.C. 7201–
7211; Pub. L. 109–344, 120 Stat. 1869; Pub.
L. 110–96, 121 Stat. 1011 (50 U.S.C. 1705
note); E.O. 13067, 62 FR 59989, 3 CFR, 1997
Comp., p. 230; E.O. 13412, 71 FR 61369, 3
CFR, 2006 Comp., p. 244.
Subpart G—Penalties
Subpart G—Penalties
8. Revise the note to paragraph (a)(1)
of § 536.701 to read as follows:
■
§ 536.701
§ 538.701
12. Revise the note to paragraph (a)(1)
of § 538.701 to read as follows:
■
Penalties.
asabaliauskas on DSK3SPTVN1PROD with RULES
Penalties.
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of the Act is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of the Act is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
*
*
VerDate Sep<11>2014
*
*
16:44 Jun 30, 2016
Jkt 238001
PO 00000
*
*
Frm 00092
Authority: 3 U.S.C. 301; 22 U.S.C. 2751–
2799aa–2; 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. 12938, 59 FR 59099, 3
CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR
40803, 3 CFR, 1998 Comp., p. 200.
Subpart G—Penalties
14. Revise the note to paragraph (a)(1)
of § 539.701 to read as follows:
■
§ 539.701
*
Fmt 4700
*
Sfmt 4700
Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of the Act is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
*
*
*
PART 541—ZIMBABWE SANCTIONS
REGULATIONS
15. The authority citation for part 541
continues to read as follows:
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; Pub. L.
101–410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C.
1705 note); E.O. 13288, 68 FR 11457, 3 CFR,
2003 Comp., p. 186; E.O. 13391, 70 FR 71201,
3 CFR, 2005 Comp., p. 206; E.O. 13469, 73
FR 43841, 3 CFR, 2008 Comp., p. 1025.
Subpart G—Penalties
16. Revise the note to paragraph (a)(1)
of § 541.701 to read as follows:
■
§ 541.701
Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
(a) * * *
(1) * * *
(a) * * *
(1) * * *
13. The authority citation for part 539
continues to read as follows:
■
*
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
PART 538—SUDANESE SANCTIONS
REGULATIONS
*
PART 536—NARCOTICS TRAFFICKING
SANCTIONS REGULATIONS
*
PART 539—WEAPONS OF MASS
DESTRUCTION TRADE CONTROL
REGULATIONS
*
*
*
*
PART 542—SYRIAN SANCTIONS
REGULATIONS
17. The authority citation for part 542
continues to read as follows:
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
18 U.S.C. 2332d; 22 U.S.C. 287c; 50 U.S.C.
1601–1651, 1701–1706; Pub. L. 101–410, 104
Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110–
E:\FR\FM\01JYR1.SGM
01JYR1
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
96, 121 Stat. 1011 (50 U.S.C. 1701 note); E.O.
13338, 69 FR 26751, 3 CFR, 2004 Comp., p.
168; E.O. 13399, 71 FR 25059, 3 CFR, 2006
Comp., p. 218; E.O. 13460, 73 FR 8991, 3 CFR
2008 Comp., p. 181; E.O. 13572, 76 FR 24787,
3 CFR 2011 Comp., p. 236; E.O. 13573, 76 FR
29143, 3 CFR 2011 Comp., p. 241; E.O.
13582, 76 FR 52209, 3 CFR 2011 Comp., p.
264; E.O. 13606, 77 FR 24571, 3 CFR 2012
Comp., p. 243.
Subpart G—Penalties
18. Revise the note to paragraph (a)(1)
of § 542.701 to read as follows:
■
§ 542.701
Penalties.
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
*
*
*
PART 543—COTE D’IVOIRE
SANCTIONS REGULATIONS
19. The authority citation for part 543
continues to read as follows:
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; 22 U.S.C.
287c; 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); E.O. 13396, 71 FR
7389, 3 CFR, 2006 Comp., p. 209.
Subpart G—Penalties
20. Revise the note to paragraph (a)(1)
of § 543.701 to read as follows:
■
§ 543.701
Penalties.
(a) * * *
(1) * * *
*
*
*
*
21. The authority citation for part 544
continues to read as follows:
asabaliauskas on DSK3SPTVN1PROD with RULES
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; Public Law
101–410, 104 Stat. 890 (28 U.S.C. 2461 note);
Public Law 110–96, 121 Stat. 1011; E.O.
12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13094, 63 FR 40803, 3 CFR, 1998
Comp., p. 200; E.O. 13382, 70 FR 38567, 3
CFR, 2005 Comp., p. 170.
19:31 Jun 30, 2016
Jkt 238001
Penalties.
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
*
*
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
(a) * * *
(1) * * *
*
PART 546—DARFUR SANCTIONS
REGULATIONS
23. The authority citation for part 546
continues to read as follows:
*
*
*
*
PART 548—BELARUS SANCTIONS
REGULATIONS
27. The authority citation for part 548
continues to read as follows:
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; Pub. L.
101–410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C.
1705 note); E.O. 13405, 71 FR 35485; 3 CFR,
2007 Comp., p. 231.
Subpart G—Penalties
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; 22 U.S.C.
287c; 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); E.O. 13067, 62 FR
59989, 3 CFR, 1997 Comp., p. 230; E.O.
13400, 71 FR 25483, 3 CFR, 2006 Comp., p.
220.
Subpart G—Penalties
24. Revise the note to paragraph (a)(1)
of § 546.701 to read as follows:
■
§ 546.701
(a) * * *
(1) * * *
*
*
*
PART 547—DEMOCRATIC REPUBLIC
OF THE CONGO SANCTIONS
REGULATIONS
25. The authority citation for part 547
continues to read as follows:
■
Subpart G—Penalties
26. Revise the note to paragraph (a)(1)
of § 547.701 to read as follows:
■
§ 547.701
Penalties.
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
Frm 00093
Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
*
*
*
Fmt 4700
29. The authority citation for part 549
continues to read as follows:
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; Pub. L.
101–410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C.
1705 note); E.O. 13441, 72 FR 43499, 3 CFR,
2008 Comp., p. 232.
Subpart G—Penalties
30. Revise the note to paragraph (a)(1)
of § 549.701 to read as follows:
■
§ 549.701
Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
*
*
*
*
PART 560—IRANIAN TRANSACTIONS
AND SANCTIONS REGULATIONS
(a) * * *
(1) * * *
PO 00000
§ 548.701
PART 549—LEBANON SANCTIONS
REGULATIONS
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
28. Revise the note to paragraph (a)(1)
of § 548.701 to read as follows:
■
*
Penalties.
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; 22 U.S.C.
287c; 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); E.O. 13413, 71 FR
64105, 3 CFR, 2006 Comp., p. 247.
PART 544—WEAPONS OF MASS
DESTRUCTION PROLIFERATORS
SANCTIONS REGULATIONS
VerDate Sep<11>2014
§ 544.701
*
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
22. Revise the note to paragraph (a)(1)
of § 544.701 to read as follows:
■
*
(a) * * *
(1) * * *
*
Subpart G—Penalties
43075
Sfmt 4700
31. The authority citation for part 560
continues to read as follows:
■
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01JYR1
43076
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B,
2332d; 22 U.S.C. 2349aa–9; 22 U.S.C. 7201–
7211; 31 U.S.C. 321(b); 50 U.S.C. 1601–1651,
1701–1706; Public Law 101–410, 104 Stat.
890 (28 U.S.C. 2461 note); Public Law 110–
96, 121 Stat. 1011 (50 U.S.C. 1705 note);
Public Law 111–195, 124 Stat. 1312 (22
U.S.C. 8501–8551); Public Law 112–81, 125
Stat. 1298 (22 U.S.C. 8513a); Public Law 112–
158, 126 Stat. 1214 (22 U.S.C. 8701–8795);
E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp.,
p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995
Comp., p. 332; E.O. 12959, 60 FR 24757, 3
CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR
44531, 3 CFR, 1997 Comp., p. 217; E.O.
13599, 77 FR 6659, 3 CFR, 2012 Comp., p.
215; E.O. 13628, 77 FR 62139, 3 CFR, 2012
Comp., p. 314.
Subpart G—Penalties
32. Revise the note to paragraph (a)(1)
of § 560.701 to read as follows:
■
§ 560.701
Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
*
*
*
*
PART 561—IRANIAN FINANCIAL
SANCTIONS REGULATIONS
33. The authority citation for part 561
continues to read as follows:
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; Pub. L.
101–410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C.
1705 note); Pub. L. 111–195, 124 Stat. 1312
(22 U.S.C. 8501–8551); Pub. L. 112–81, 125
Stat. 1298 (22 U.S.C. 8513a); Pub. L. 112–158,
126 Stat. 1214 (22 U.S.C. 8701–8795); E.O.
12957, 60 FR 14615, 3 CFR, 1995 Comp., p.
332; E.O. 13553, 75 FR 60567, 3 CFR, 2010
Comp., p. 253; E.O. 13599, 77 FR 6659,
February 8, 2012; E.O. 13622, 77 FR 45897,
August 2, 2012; E.O. 13628, 77 FR 62139,
October 12, 2012.
Subpart G—Penalties
PART 566—HIZBALLAH FINANCIAL
SANCTIONS REGULATIONS
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. 114–102.
§ 566.701
*
■
Penalties.
(a) * * *
Note to paragraph (a): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
PART 576—IRAQ STABILIZATION AND
INSURGENCY SANCTIONS
REGULATIONS
37. The authority citation for part 576
continues 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. 110–96, 121 Stat. 1011; E.O.
13303, 68 FR 31931, 3 CFR, 2003 Comp., p.
227; E.O. 13315, 68 FR 52315, 3 CFR, 2003
Comp., p. 252; E.O. 13350, 69 FR 46055, 3
CFR, 2004 Comp., p. 196; E.O. 13364, 69 FR
70177, 3 CFR, 2004 Comp., p. 236; E.O.
13438, 72 FR 39719, 3 CFR, 2007 Comp., p.
224.
asabaliauskas on DSK3SPTVN1PROD with RULES
*
*
*
VerDate Sep<11>2014
*
*
16:44 Jun 30, 2016
Jkt 238001
*
*
*
*
PART 592—ROUGH DIAMONDS
CONTROL REGULATIONS
41. The authority citation for part 592
continues to read as follows:
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
Pub. L. 108–19, 117 Stat. 631 (19 U.S.C.
3901–3913); E.O. 13312, 68 FR 45151 3 CFR,
2003 Comp., p. 246.
Subpart F—Penalties
42. Amend § 592.601 by revising
paragraphs (a) introductory text, (a)(1),
and (b) to read as follows:
■
§ 592.601
Penalties.
■
(a) Section 8 of the Clean Diamond
Trade Act (the Act) (Pub. L. 108–19, 117
Stat. 631, 19 U.S.C. 3901–3913)
provides that:
(1) A civil penalty not to exceed the
amount set forth in section 8 of the Act
may be imposed on any person who
violates, or attempts to violate, any
order or regulation issued under the
Act;
§ 576.701
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of the Act is $12,856.
Subpart G—Penalties
38. Revise the note to paragraph (a)(1)
of § 576.701 to read as follows:
Penalties.
(a) * * *
(1) * * *
*
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
PART 588—WESTERN BALKANS
STABILIZATION REGULATIONS
Note to paragraph (a): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
Penalties.
(a) * * *
(1) * * *
36. Revise the note to paragraph (a) of
§ 566.701 to read as follows:
Subpart G—Penalties
§ 561.701
(a) * * *
§ 588.701
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
Penalties.
40. Revise the note to paragraph (a)(1)
of § 588.701 to read as follows:
■
35. The authority citation for part 566
continues to read as follows:
■
34. Revise the note to paragraph (a) of
§ 561.701 to read as follows:
■
Subpart G—Penalties
*
*
*
*
39. The authority citation for part 588
continues to read as follows:
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; Pub. L.
101–410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C.
1705 note); E.O. 13219, 66 FR 34777, 3 CFR,
2001 Comp., p. 778; E.O. 13304, 68 FR 32315,
3 CFR, 2004 Comp. p. 229.
PO 00000
Frm 00094
Fmt 4700
Sfmt 4700
*
*
*
*
(b) Adjustments to penalty amounts.
(1) The civil penalties provided in the
Act are subject to adjustment pursuant
to the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410, as amended, 28 U.S.C. 2461 note).
(2) The criminal penalties provided in
the Act are subject to increase pursuant
to 18 U.S.C. 3571.
*
*
*
*
*
PART 593—FORMER LIBERIAN
REGIME OF CHARLES TAYLOR
SANCTIONS REGULATIONS
43. The authority citation for part 593
continues to read as follows:
■
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; 22 U.S.C.
287c; Pub. L. 101–410, 104 Stat. 890 (28
U.S.C. 2461 note); Pub. L. 110–96, 121 Stat.
E:\FR\FM\01JYR1.SGM
01JYR1
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations
1011; E.O. 13348, 69 FR 44885, 3 CFR, 2004
Comp., p. 189.
Subpart G—Penalties
44. Revise the note to paragraph (a)(1)
of § 593.701 to read as follows:
■
§ 593.701
Penalties.
(a) * * *
(1) * * *
*
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of IEEPA is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
*
*
*
*
PART 594—GLOBAL TERRORISM
SANCTIONS REGULATIONS
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 G—Penalties
46. Revise the note to paragraph (a)(1)
of § 594.701 to read as follows:
■
Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of the Act is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
*
*
*
*
*
PART 595—TERRORISM SANCTIONS
REGULATIONS
47. The authority citation for part 595
continues to read as follows:
asabaliauskas on DSK3SPTVN1PROD with RULES
■
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 G—Penalties
48. Revise the note to paragraph (a)(1)
of § 595.701 to read as follows:
■
§ 595.701
Penalties.
(a) * * *
VerDate Sep<11>2014
16:44 Jun 30, 2016
Jkt 238001
*
*
*
*
PART 597—FOREIGN TERRORIST
ORGANIZATIONS SANCTIONS
REGULATIONS
49. The authority citation for part 597
continues to read as follows:
■
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 G—Penalties
45. The authority citation for part 594
continues to read as follows:
■
§ 594.701
§ 598.701
(1) * * *
Note to paragraph (a)(1): As of August 1,
2016, the applicable maximum civil penalty
per violation of the Act is the greater of
$284,582 or an amount that is twice the
amount of the transaction that is the basis of
the violation with respect to which the
penalty is imposed.
50. Revise paragraph (b) of § 597.701
to read as follows:
■
§ 597.701
Penalties.
*
*
*
*
*
(b)(1) Pursuant to 18 U.S.C. 2339B(b),
except as authorized by the Secretary of
the Treasury, any financial institution
that knowingly fails to retain possession
of or maintain control over funds in
which a foreign terrorist organization or
its agent has an interest, or to report the
existence of such funds in accordance
with these regulations, shall be subject
to a civil penalty in an amount that is
the greater of the amount set forth in 18
U.S.C. 2339B(b) per violation, or twice
the amount of which the financial
institution was required to retain
possession or control.
(2) The civil penalties provided in 18
U.S.C. 2339B(b) are subject to
adjustment pursuant to the Federal Civil
Penalties Inflation Adjustment Act of
1990 (Pub. L. 101–410, as amended, 28
U.S.C. 2461 note).
Note to paragraph (b): As of August 1,
2016, the applicable maximum civil penalty
per violation is $75,122 or twice the amount
of which a financial institution was required
to retain possession or control.
*
*
*
*
*
PART 598—FOREIGN NARCOTICS
KINGPIN SANCTIONS REGULATIONS
51. The authority citation for part 598
continues to read as follows:
■
Authority: 3 U.S.C. 301; 21 U.S.C. 1901–
1908; 31 U.S.C. 321(b); Pub. L. 101–410, 104
Stat. 890 (28 U.S.C. 2461 note).
Subpart G—Penalties.
52. Amend § 598.701 by revising
paragraphs (a)(3) and (b) to read as
follows:
■
PO 00000
Frm 00095
Fmt 4700
Sfmt 4700
43077
Penalties.
(a) * * *
(3) A civil penalty not to exceed the
amount set forth in section 807 of the
Foreign Narcotics Kingpin Designation
Act (21 U.S.C. 1901–1908) per violation
may be imposed by the Secretary of the
Treasury on any person who violates
any license, order, rule, or regulation
issued in compliance with the
provisions of the Foreign Narcotics
Kingpin Designation Act.
Note to paragraph (a)(3): As of August 1,
2016, the maximum civil penalty is
$1,414,020 per violation.
(b) Adjustments to penalty amounts.
(1) The current civil penalty cap may be
adjusted for inflation pursuant to the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410, as amended, 28 U.S.C. 2461 note).
(2) The criminal penalties provided in
this part are subject to increase pursuant
to 18 U.S.C. 3571.
*
*
*
*
*
John E. Smith,
Acting Director, Office of Foreign Assets
Control.
[FR Doc. 2016–15552 Filed 6–30–16; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF DEFENSE
Department of the Navy
32 CFR Part 706
Certifications and Exemptions Under
the International Regulations for
Preventing Collisions at Sea, 1972
Department of the Navy, DoD.
Final rule.
AGENCY:
ACTION:
The Department of the Navy
(DoN) is amending its certifications and
exemptions under the International
Regulations for Preventing Collisions at
Sea, 1972 (72 COLREGS), to reflect that
the Deputy Assistant Judge Advocate
General (DAJAG) (Admiralty and
Maritime Law) has determined that
certain vessels of the VIRGINIA SSN
Class are vessels of the Navy which, due
to their special construction and
purpose, cannot fully comply with
certain provisions of the 72 COLREGS
without interfering with their special
function as a naval ships. The intended
effect of this rule is to warn mariners in
waters where 72 COLREGS apply.
DATES: This rule is effective July 1, 2016
and is applicable beginning June 21,
2016.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Commander Theron R. Korsak,
E:\FR\FM\01JYR1.SGM
01JYR1
]]>Agencies
[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Rules and Regulations]
[Pages 43070-43077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15552]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 501, 535, 536, 537, 538, 539, 541, 542, 543, 544, 546,
547, 548, 549, 560, 561, 566, 576, 588, 592, 593, 594, 595, 597,
and 598.
Implementation of the Federal Civil Penalties Inflation
Adjustment Act
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is issuing this interim final rule to amend its
regulations for the relevant sanctions programs it administers to
implement the Federal Civil Penalties Inflation Adjustment Act of 1990,
as amended by the Debt Collection Improvement Act of 1996 and the
Federal Civil Penalties Inflation Adjustment Act Improvements Act of
2015. In particular, this rule adjusts for inflation the maximum amount
of the civil monetary penalties that may be assessed under relevant
OFAC regulations, including by making conforming changes to OFAC's
``Economic Sanctions Enforcement Guidelines.''
DATES: This rule is effective August 1, 2016. Comments must be received
on or before August 1, 2016.
ADDRESSES: You may submit comments by any of the following methods:
Federal eRulemaking Portal: www.regulations.gov. Follow the
instructions on the Web site for submitting comments.
Fax: Attn: Request for Comments (Amendments to OFAC Regulations to
Implement the Federal Civil Penalties Inflation Adjustment Act) 202-
622-1657.
Mail: Attn: Request for Comments (Amendments to OFAC Regulations to
Implement the Federal Civil Penalties Inflation Adjustment Act), Office
of Foreign Assets Control, Department of the Treasury, 1500
Pennsylvania Avenue NW, Freedman's Bank Building, Washington, DC 20220.
[[Page 43071]]
Instructions: All submissions received must include the agency name
and the Federal Register Doc. number that appears at the end of this
document. All comments, including attachments and other supporting
materials, will become part of the public record and subject to public
disclosure. Sensitive personal information, such as account numbers or
Social Security numbers, should not be included. Comments generally
will not be edited to remove any identifying or contact information.
FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's
Office of Foreign Assets Control: Assistant Director for Enforcement,
tel.: 202-622-2430; Assistant Director for Licensing, tel.: 202-622-
2480, Assistant Director for Regulatory Affairs, tel.: 202-622-4855,
Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-
622-2490; or the Department of the Treasury's Office of the Chief
Counsel (Foreign Assets Control), Office of the General Counsel, tel.:
202-622-2410.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available from OFAC's Web site (https://www.treasury.gov/ofac).
Background
Section 4 of the Federal Civil Penalties Inflation Adjustment Act
(1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 note), as amended
by the Debt Collection Improvement Act of 1996 (Pub. L. 104-134, 110
Stat. 1321-373) and the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C.
2461 note) (collectively, the FCPIA Act), requires each federal agency
with statutory authority to assess civil monetary penalties (CMPs) to
adjust CMPs for inflation according to a formula described in section 5
of the FCPIA Act. One purpose of the FCPIA Act is to ensure that CMPs
continue to maintain their deterrent effect through periodic cost-of-
living based adjustments.
The FCPIA Act directs agencies to adjust the level of CMPs for
inflation annually, with an initial ``catch up'' adjustment effective
no later than August 1, 2016. Catch-up adjustments will be based on the
percent change between the Consumer Price Index for all Urban Consumers
(CPI-U) for the month of October in the year of the last non-FCPIA-Act-
based adjustment and the October 2015 CPI-U. In accordance with the
FCPIA Act, however, the amount of the CMP catch-up adjustment shall not
exceed 150 percent of the corresponding level in effect on November 2,
2015 (the ``maximum adjustment''). Annual inflation adjustments will be
based on the percent change between the October CPI-U preceding the
date of the adjustment and the prior year's October CPI-U. The FCPIA
Act requires agencies to round all CMP levels to the nearest dollar
after applying the multiplier.
In order to complete the catch-up adjustment, the FCPIA Act directs
agencies to use as a starting point for each CMP the year and
corresponding amount(s) for which the maximum CMP level or range of
minimum and maximum CMPs was established or last adjusted, whichever is
later, other than pursuant to the FCPIA Act. The catch-up calculations
therefore exclude prior inflationary adjustments under the FCPIA Act.
On February 24, 2016, the Office of Management and Budget issued
written guidance providing agencies with CPI-U related multipliers to
use when adjusting the CMP level or range of CMP levels based on the
year the CMP was established or last adjusted by statute or regulation.
(Memorandum for the Heads of Executive Departments and Agencies:
Implementation of the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (OMB Guidance)).
The adjusted civil penalty amounts described in this rule are
applicable only to civil penalties assessed after August 1, 2016, whose
associated violations occurred after November 2, 2015, the date of
enactment of the Federal Civil Penalties Inflation Adjustment Act
Improvements Act. Therefore, violations occurring on or before November
2, 2015, and assessments made prior to August 1, 2016 whose associated
violations occurred after November 2, 2015, will continue to be subject
to the civil monetary penalty amounts set forth in OFAC's existing
regulations.
OFAC currently is authorized to impose CMPs pursuant to five
statutes: the Trading With the Enemy Act (50 U.S.C. 4315) (TWEA); the
International Emergency Economic Powers Act (50 U.S.C. 1705) (IEEPA);
the Antiterrorism and Effective Death Penalty Act of 1996 (Pub. L. 104-
132, 110 Stat. 1250; 18 U.S.C. 2339B) (AEDPA); the Foreign Narcotics
Kingpin Designation Act (Pub. L. 106-120, 113 Stat. 1632; 21 U.S.C.
1901-1908) (FNKDA); and the Clean Diamond Trade Act (Pub. L. 108-19,
117 Stat. 631; 19 U.S.C. 3901-3913) (CDTA). The maximum CMPs under the
statutes were last adjusted or set by statute as follows: TWEA in 1992;
IEEPA in 2007; AEDPA in 1996; FNKDA in 1999, and CDTA in 2003.
TWEA. The maximum TWEA-based CMP was established at $50,000 in 1992
by the National Defense Authorization Act for Fiscal Year 1993 (Pub. L.
102-484, 106 Stat. 2315, 50 U.S.C. 4315). Although there were two
subsequent adjustments, bringing the current maximum CMP to $65,000,
those adjustments were made pursuant to the FCPIA Act and therefore
will not be considered for purposes of determining the new maximum CMP.
Pursuant to the OMB Guidance, the relevant inflation factor is 1.67728.
Multiplying the CMP amount of $50,000 by the inflation factor of
1.67728 and rounding to the nearest dollar results in $83,864. This
would be an increase of $33,864. Pursuant to the FCPIA Act, the maximum
adjustment amount is 150% of $65,000 (the CMP in effect on November 2,
2015), or $97,500. The increase does not exceed the maximum adjustment.
Therefore, the maximum TWEA-based CMP effective August 1, 2016 is
increased to the inflation-adjusted amount of $83,864 per violation.
IEEPA. The maximum IEEPA-based CMP of the greater of $250,000 or
twice the amount of the underlying transaction was set in 2007 by the
International Emergency Economic Powers Enhancement Act (Pub. L. 110-
96, 121 Stat. 1011; 50 U.S.C. 1705 note). Pursuant to the OMB Guidance,
the relevant inflation factor is 1.13833. Multiplying the current
penalty amount of $250,000 by the inflation factor of 1.13833 and
rounding to the nearest dollar amount results in a maximum penalty
amount of the greater of $284,582 or twice the amount of the underlying
transaction per violation. This would be an increase of $34,582.
Pursuant to the FCPIA Act, the maximum adjustment is 150% of $250,000
(the CMP in effect on November 2, 2015), or $375,000. The increase does
not exceed the maximum adjustment. Therefore, the maximum IEEPA CMP
effective August 1, 2016 is increased to the inflation-adjusted amount
of $284,582 or twice the amount of the underlying transaction per
violation. The FCPIA Act applies only to CMPs that are for a specific
monetary amount as provided by Federal law. Accordingly, the
alternative IEEPA CMP of twice the amount of the underlying transaction
remains unchanged.
AEDPA. The maximum AEDPA-based CMP of the greater of $50,000 or
twice the amount of which a financial institution was required to
retain possession or control was set by statute in 1996 (Pub. L. 104-
132, 110 Stat.
[[Page 43072]]
1250; 18 U.S.C. 2339B). Although there was one subsequent adjustment,
bringing the current maximum CMP to $55,000, that adjustment was made
pursuant to the FCPIA Act and therefore will not be considered in the
new maximum CMP calculation. Pursuant to the OMB Guidance, the relevant
inflation factor is 1.50245. Multiplying the CMP amount of $50,000 by
the inflation factor of 1.50245 and rounding to the nearest dollar
results in $75,122. This would be an increase of $20,122. Pursuant to
the FCPIA Act, the maximum adjustment is 150% of $55,000 (the CMP in
effect on November 2, 2015), or $82,500. The increase does not exceed
the maximum adjustment. Therefore, the maximum AEDPA-based CMP per
violation effective August 1, 2016 is increased to the inflation-
adjusted amount of the greater of $75,122 or twice the amount of which
a financial institution was required to retain possession or control.
The FCPIA Act applies only to CMPs that are for a specific monetary
amount as provided by Federal law. Accordingly, the alternative AEDPA
CMP of twice the amount of which a financial institution was required
to retain possession or control remains unchanged.
FNKDA. The maximum FNKDA-based CMP of $1,000,000 was set in 1999 by
the Intelligence Authorization Act for Fiscal Year 2000 (Pub. L. 106-
120, 113 Stat. 1632; 21 U.S.C. 1901-1908). Although there was one
subsequent adjustment, bringing the current maximum CMP to $1,075,000,
that adjustment was made pursuant to the FCPIA Act and therefore will
not be considered in the new maximum CMP calculation. Pursuant to OMB
Guidance, the relevant inflation factor is 1.41402. Multiplying the CMP
of $1,000,000 by the inflation factor of 1.41402 and rounding to the
nearest dollar results in $1,414,020. This would be an increase of
$414,020. Pursuant to the FCPIA Act, the maximum adjustment is 150% of
$1,075,000 (the CMP in effect on November 2, 2015), or $1,612,500. The
increase does not exceed the maximum adjustment. Therefore, as of
August 1, 2016, the maximum FNKDA-based CMP is increased to the
inflation-adjusted amount of $1,414,020 per violation.
CDTA. The maximum CDTA-based CMP of $10,000 was set by statute in
2003. (Pub. L. 108-19, 117 Stat. 631; 19 U.S.C. 3901-3913). Pursuant to
the OMB Guidance, the relevant inflation factor is 1.28561. Multiplying
the current penalty of $10,000 by the inflation factor of 1.28561 and
rounding to the nearest dollar results in $12,856. This would be an
increase of $2,856. Pursuant to the FCPIA Act, the maximum adjustment
is 150% of $10,000 (the CMP in effect on November 2, 2015), or $15,000.
The increase does not exceed the maximum adjustment. Therefore, the
maximum CDTA-based CMP effective August 1, 2016 is increased to the
inflation-adjusted amount of $12,856 per violation.
The table below summarizes the changes to the penalty amounts:
------------------------------------------------------------------------
Penalty amount
Statute Existing penalty effective August 1,
amount 2016
------------------------------------------------------------------------
TWEA........................ $65,000............. $83,864.
IEEPA....................... The greater of The greater of
$250,000 or twice $284,582 or twice
the amount of the the amount of the
underlying underlying
transaction. transaction.
AEDPA....................... The greater of The greater of
$55,000 or twice $75,122 or twice
the amount of which the amount of which
a financial a financial
institution was institution was
required to retain required to retain
possession or possession or
control. control.
FNKDA....................... $1,075,000.......... $1,414,020.
CDTA........................ $10,000............. $12,856.
------------------------------------------------------------------------
The regulations for many of the sanctions programs administered by
OFAC, as well as the Reporting, Procedures and Penalties Regulations
and the Economic Sanctions Enforcement Guidelines appended thereto,
contain references to the current penalty amounts. This interim final
rule revises the relevant parts of 31 CFR chapter V to update these
amounts. The authority sections of the relevant parts are not being
amended at this time.
This interim final rule also makes certain technical and conforming
changes to the Enforcement Guidelines. For example, OFAC is removing
one of the examples of a blocked transaction appearing at 31 CFR
501.604(b) because it refers to conduct that is no longer prohibited
following the issuance of Executive Order 13350 of July 29, 2004.
Effective Date
The FCPIA Act requires agencies to make adjustments for inflation
to CMPs and to provide new CMPs through an interim final rulemaking to
be published by July 1, 2016. The FCPIA Act further provides that the
adjustments for inflation shall take effect no later than August 1,
2016.
Procedural Requirements
Notice and Comment
As required by the FCPIA Act, these amendments are being published
as an interim final rule with an effective date of August 1, 2016.
Although other notice and comment procedures are not required, OFAC
invites comments on this notice.
Regulatory Flexibility Act
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 Paperwork Reduction Act does not apply because this rule does
not impose information collection requirements that would require the
approval of the Office of Management and Budget under 44 U.S.C. 3501 et
seq.
List of Subjects for 31 CFR Parts 501, 535, 536, 537, 538, 539,
541, 542, 543, 544, 546, 547, 548, 549, 560, 561, 566, 576, 588,
592, 593, 594, 595, 597, and 598
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.
For the reasons set forth in the preamble, 31 CFR chapter V is
amended as follows:
PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS
0
1. The authority citation for part 501 continues to read as follows:
Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C.
3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a),
6009, 6032, 7205; 28 U.S.C. 2461 note; 31 U.S.C. 321(b); 50 U.S.C.
1701-1706; 50 U.S.C. App. 1-44.
[[Page 43073]]
Subpart C--Reports
Sec. 501.604 [Amended]
0
2. Amend Sec. 501.604 by removing paragraph (b)(2) and redesignating
paragraphs (b)(3) through (5) as paragraphs (b)(2) through (4),
respectively.
Subpart D--Trading With the Enemy Act (TWEA) Penalties
0
3. Amend Sec. 501.701 by adding a note to paragraph (a)(1) and
revising paragraph (a)(3) to read as follows:
Sec. 501.701 Penalties.
(a) * * *
(1) * * *
Note 1 to paragraph (a)(1): As of August 1, 2016, TWEA provides
for a maximum civil penalty not to exceed $83,864.
* * * * *
(3) The Secretary of the Treasury may impose a civil penalty of not
more than $83,864 per violation on any person who violates any license,
order, or regulation issued under TWEA.
Note to paragraph (a)(3): The current civil penalty cap may be
adjusted for inflation pursuant to the Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28
U.S.C. 2461 note).
* * * * *
0
4. Amend appendix A to part 501 by revising section V.B.2.a to read as
follows:
Appendix A to Part 501--Economic Sanctions Enforcement Guidelines
* * * * *
V. Civil Penalties
* * * * *
B. * * *
2. * * *
a. Base Category Calculation
i. In a non-egregious case, if the apparent violation is disclosed
through a voluntary self-disclosure by the Subject Person, the base
amount of the proposed civil penalty in the Pre-Penalty Notice shall be
one-half of the transaction value, capped at a maximum base amount of
$142,291 per violation, except where the statutory maximum penalty
applicable to the apparent violation is less than $284,582, in which
case the base amount of the proposed civil penalty in the Pre-Penalty
Notice shall be capped at one-half the statutory maximum penalty
applicable to the apparent violation.
ii. In a non-egregious case, if the apparent violation comes to
OFAC's attention by means other than a voluntary self-disclosure, the
base amount of the proposed civil penalty in the Pre-Penalty Notice
shall be the ``applicable schedule amount,'' as defined above. For
apparent violations where the statutory maximum penalty applicable to
the apparent violation is $284,582 or greater, the maximum base amount
shall be capped at $284,582. For apparent violations where the
statutory maximum penalty applicable to the apparent violation is less
than $284,582, the maximum base amount shall be capped at the statutory
maximum penalty amount applicable to the apparent violation.
iii. In an egregious case, if the apparent violation is disclosed
through a voluntary self-disclosure by a Subject Person, the base
amount of the proposed civil penalty in the Pre-Penalty Notice shall be
one-half of the applicable statutory maximum penalty applicable to the
violation.
iv. In an egregious case, if the apparent violation comes to OFAC's
attention by means other than a voluntary self-disclosure, the base
amount of the proposed civil penalty in the Pre-Penalty Notice shall be
the applicable statutory maximum penalty amount applicable to the
violation.
Note to paragraph (a): As of August 1, 2016, the applicable
statutory maximum civil penalty per violation for each statute
enforced by OFAC is as follows: International Emergency Economic
Powers Act (IEEPA)--greater of $284,582 or twice the amount of the
underlying transaction; Trading with the Enemy Act (TWEA)--$83,864;
Foreign Narcotics Kingpin Designation Act (FNKDA)--$1,414,020;
Antiterrorism and Effective Death Penalty Act of 1996 (AEDPA)--
greater of $75,122 or twice the amount of which a financial
institution was required to retain possession or control; and Clean
Diamond Trade Act (CDTA)--$12,856. The civil penalty amounts
authorized under these statutes are subject to adjustment pursuant
to the Federal Civil Penalties Inflation Adjustment Act of 1990
(Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).
The following matrix represents the base amount of the proposed
civil penalty for each category of violation:
[GRAPHIC] [TIFF OMITTED] TR01JY16.000
[[Page 43074]]
* * * * *
PART 535--IRANIAN ASSETS CONTROL REGULATIONS
0
5. The authority citation for part 535 continues to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 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. 12170, 44 FR
65729, 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR 24099, 3 CFR,
1980 Comp., p. 248; E.O. 12211, 45 FR 26685, 3 CFR, 1980 Comp., p.
253; E.O. 12276, 46 FR 7913, 3 CFR, 1981 Comp., p. 104; E.O. 12279,
46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O. 12280, 46 FR 7921, 3
CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923, 3 CFR, 1981 Comp.,
p. 112; E.O. 12282, 46 FR 7925, 3 CFR, 1981 Comp., p. 113; E.O.
12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; and E.O. 12294, 46 FR
14111, 3 CFR, 1981 Comp., p. 139.
Subpart G--Penalties.
0
6. Revise the note to paragraph (a)(1) of Sec. 535.701 to read as
follows:
Sec. 535.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of the Act is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS
0
7. The authority citation for part 536 continues 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. 12978, 60 FR 54579, 3 CFR, 1995
Comp., p. 415; E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166.
Subpart G--Penalties
0
8. Revise the note to paragraph (a)(1) of Sec. 536.701 to read as
follows:
Sec. 536.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of the Act is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 537--BURMESE SANCTIONS REGULATIONS
0
9. The authority citation for part 537 continues 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);
Sec. 570, Pub. L. 104-208, 110 Stat. 3009; Pub. L. 110-96, 121 Stat.
1011 (50 U.S.C. 1701 note); Pub. L. 110-286, 122 Stat. 2632 (50
U.S.C. 1701 note); E.O. 13047, 62 FR 28301, 3 CFR, 1997 Comp., p.
202; E.O. 13310, 68 FR 44853, 3 CFR, 2003 Comp., p. 241; E.O. 13448,
72 FR 60223, 3 CFR, 2007 Comp., p. 304; E.O. 13464, 73 FR 24491, 3
CFR, 2008 Comp., p. 189; E.O. 13619, 77 FR 41243, 3 CFR, 2012 Comp.,
p. 279; E.O. 13651, 78 FR 48793 (August 9, 2013); Determination No.
2009-11, 74 FR 3957, 3 CFR, 2009 Comp., p. 330.
Subpart G--Penalties
0
10. Revise the note to paragraph (a)(1) of Sec. 537.701 to read as
follows:
Sec. 537.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 538--SUDANESE SANCTIONS REGULATIONS
0
11. The authority citation for part 538 continues to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 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); 22 U.S.C. 7201-7211; Pub. L. 109-344, 120
Stat. 1869; Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note);
E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13412, 71
FR 61369, 3 CFR, 2006 Comp., p. 244.
Subpart G--Penalties
0
12. Revise the note to paragraph (a)(1) of Sec. 538.701 to read as
follows:
Sec. 538.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of the Act is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 539--WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS
0
13. The authority citation for part 539 continues to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 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.
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR
40803, 3 CFR, 1998 Comp., p. 200.
Subpart G--Penalties
0
14. Revise the note to paragraph (a)(1) of Sec. 539.701 to read as
follows:
Sec. 539.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of the Act is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 541--ZIMBABWE SANCTIONS REGULATIONS
0
15. The authority citation for part 541 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13288, 68
FR 11457, 3 CFR, 2003 Comp., p. 186; E.O. 13391, 70 FR 71201, 3 CFR,
2005 Comp., p. 206; E.O. 13469, 73 FR 43841, 3 CFR, 2008 Comp., p.
1025.
Subpart G--Penalties
0
16. Revise the note to paragraph (a)(1) of Sec. 541.701 to read as
follows:
Sec. 541.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 542--SYRIAN SANCTIONS REGULATIONS
0
17. The authority citation for part 542 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2332d; 22
U.S.C. 287c; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104
Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-
[[Page 43075]]
96, 121 Stat. 1011 (50 U.S.C. 1701 note); E.O. 13338, 69 FR 26751, 3
CFR, 2004 Comp., p. 168; E.O. 13399, 71 FR 25059, 3 CFR, 2006 Comp.,
p. 218; E.O. 13460, 73 FR 8991, 3 CFR 2008 Comp., p. 181; E.O.
13572, 76 FR 24787, 3 CFR 2011 Comp., p. 236; E.O. 13573, 76 FR
29143, 3 CFR 2011 Comp., p. 241; E.O. 13582, 76 FR 52209, 3 CFR 2011
Comp., p. 264; E.O. 13606, 77 FR 24571, 3 CFR 2012 Comp., p. 243.
Subpart G--Penalties
0
18. Revise the note to paragraph (a)(1) of Sec. 542.701 to read as
follows:
Sec. 542.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 543--COTE D'IVOIRE SANCTIONS REGULATIONS
0
19. The authority citation for part 543 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; 22 U.S.C. 287c; 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);
E.O. 13396, 71 FR 7389, 3 CFR, 2006 Comp., p. 209.
Subpart G--Penalties
0
20. Revise the note to paragraph (a)(1) of Sec. 543.701 to read as
follows:
Sec. 543.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 544--WEAPONS OF MASS DESTRUCTION PROLIFERATORS SANCTIONS
REGULATIONS
0
21. The authority citation for part 544 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
Public Law 110-96, 121 Stat. 1011; E.O. 12938, 59 FR 59099, 3 CFR,
1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p.
200; E.O. 13382, 70 FR 38567, 3 CFR, 2005 Comp., p. 170.
Subpart G--Penalties
0
22. Revise the note to paragraph (a)(1) of Sec. 544.701 to read as
follows:
Sec. 544.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 546--DARFUR SANCTIONS REGULATIONS
0
23. The authority citation for part 546 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; 22 U.S.C. 287c; 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);
E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13400, 71
FR 25483, 3 CFR, 2006 Comp., p. 220.
Subpart G--Penalties
0
24. Revise the note to paragraph (a)(1) of Sec. 546.701 to read as
follows:
Sec. 546.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 547--DEMOCRATIC REPUBLIC OF THE CONGO SANCTIONS REGULATIONS
0
25. The authority citation for part 547 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; 22 U.S.C. 287c; 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);
E.O. 13413, 71 FR 64105, 3 CFR, 2006 Comp., p. 247.
Subpart G--Penalties
0
26. Revise the note to paragraph (a)(1) of Sec. 547.701 to read as
follows:
Sec. 547.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 548--BELARUS SANCTIONS REGULATIONS
0
27. The authority citation for part 548 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13405, 71
FR 35485; 3 CFR, 2007 Comp., p. 231.
Subpart G--Penalties
0
28. Revise the note to paragraph (a)(1) of Sec. 548.701 to read as
follows:
Sec. 548.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 549--LEBANON SANCTIONS REGULATIONS
0
29. The authority citation for part 549 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13441, 72
FR 43499, 3 CFR, 2008 Comp., p. 232.
Subpart G--Penalties
0
30. Revise the note to paragraph (a)(1) of Sec. 549.701 to read as
follows:
Sec. 549.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS
0
31. The authority citation for part 560 continues to read as follows:
[[Page 43076]]
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C.
2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-
1651, 1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461
note); Public Law 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note);
Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law
112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126
Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12613, 52 FR 41940, 3 CFR,
1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p.
332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059,
62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3
CFR, 2012 Comp., p. 215; E.O. 13628, 77 FR 62139, 3 CFR, 2012 Comp.,
p. 314.
Subpart G--Penalties
0
32. Revise the note to paragraph (a)(1) of Sec. 560.701 to read as
follows:
Sec. 560.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 561--IRANIAN FINANCIAL SANCTIONS REGULATIONS
0
33. The authority citation for part 561 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-
195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat.
1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C.
8701-8795); E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O.
13553, 75 FR 60567, 3 CFR, 2010 Comp., p. 253; E.O. 13599, 77 FR
6659, February 8, 2012; E.O. 13622, 77 FR 45897, August 2, 2012;
E.O. 13628, 77 FR 62139, October 12, 2012.
Subpart G--Penalties
0
34. Revise the note to paragraph (a) of Sec. 561.701 to read as
follows:
Sec. 561.701 Penalties.
(a) * * *
Note to paragraph (a): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 566--HIZBALLAH FINANCIAL SANCTIONS REGULATIONS
0
35. The authority citation for part 566 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 114-
102.
Subpart G--Penalties
0
36. Revise the note to paragraph (a) of Sec. 566.701 to read as
follows:
Sec. 566.701 Penalties.
(a) * * *
Note to paragraph (a): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
PART 576--IRAQ STABILIZATION AND INSURGENCY SANCTIONS REGULATIONS
0
37. The authority citation for part 576 continues 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. 110-96, 121 Stat. 1011; E.O.
13303, 68 FR 31931, 3 CFR, 2003 Comp., p. 227; E.O. 13315, 68 FR
52315, 3 CFR, 2003 Comp., p. 252; E.O. 13350, 69 FR 46055, 3 CFR,
2004 Comp., p. 196; E.O. 13364, 69 FR 70177, 3 CFR, 2004 Comp., p.
236; E.O. 13438, 72 FR 39719, 3 CFR, 2007 Comp., p. 224.
Subpart G--Penalties
0
38. Revise the note to paragraph (a)(1) of Sec. 576.701 to read as
follows:
Sec. 576.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 588--WESTERN BALKANS STABILIZATION REGULATIONS
0
39. The authority citation for part 588 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13219, 66
FR 34777, 3 CFR, 2001 Comp., p. 778; E.O. 13304, 68 FR 32315, 3 CFR,
2004 Comp. p. 229.
Subpart G--Penalties
0
40. Revise the note to paragraph (a)(1) of Sec. 588.701 to read as
follows:
Sec. 588.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 592--ROUGH DIAMONDS CONTROL REGULATIONS
0
41. The authority citation for part 592 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); Pub. L. 108-19, 117
Stat. 631 (19 U.S.C. 3901-3913); E.O. 13312, 68 FR 45151 3 CFR, 2003
Comp., p. 246.
Subpart F--Penalties
0
42. Amend Sec. 592.601 by revising paragraphs (a) introductory text,
(a)(1), and (b) to read as follows:
Sec. 592.601 Penalties.
(a) Section 8 of the Clean Diamond Trade Act (the Act) (Pub. L.
108-19, 117 Stat. 631, 19 U.S.C. 3901-3913) provides that:
(1) A civil penalty not to exceed the amount set forth in section 8
of the Act may be imposed on any person who violates, or attempts to
violate, any order or regulation issued under the Act;
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of the Act is $12,856.
* * * * *
(b) Adjustments to penalty amounts. (1) The civil penalties
provided in the Act are subject to adjustment pursuant to the Federal
Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as
amended, 28 U.S.C. 2461 note).
(2) The criminal penalties provided in the Act are subject to
increase pursuant to 18 U.S.C. 3571.
* * * * *
PART 593--FORMER LIBERIAN REGIME OF CHARLES TAYLOR SANCTIONS
REGULATIONS
0
43. The authority citation for part 593 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C.
2461 note); Pub. L. 110-96, 121 Stat.
[[Page 43077]]
1011; E.O. 13348, 69 FR 44885, 3 CFR, 2004 Comp., p. 189.
Subpart G--Penalties
0
44. Revise the note to paragraph (a)(1) of Sec. 593.701 to read as
follows:
Sec. 593.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of IEEPA is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS
0
45. The authority citation for part 594 continues 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 G--Penalties
0
46. Revise the note to paragraph (a)(1) of Sec. 594.701 to read as
follows:
Sec. 594.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of the Act is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 595--TERRORISM SANCTIONS REGULATIONS
0
47. The authority citation for part 595 continues 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 G--Penalties
0
48. Revise the note to paragraph (a)(1) of Sec. 595.701 to read as
follows:
Sec. 595.701 Penalties.
(a) * * *
(1) * * *
Note to paragraph (a)(1): As of August 1, 2016, the applicable
maximum civil penalty per violation of the Act is the greater of
$284,582 or an amount that is twice the amount of the transaction
that is the basis of the violation with respect to which the penalty
is imposed.
* * * * *
PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS
0
49. The authority citation for part 597 continues to read as follows:
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 G--Penalties
0
50. Revise paragraph (b) of Sec. 597.701 to read as follows:
Sec. 597.701 Penalties.
* * * * *
(b)(1) Pursuant to 18 U.S.C. 2339B(b), except as authorized by the
Secretary of the Treasury, any financial institution that knowingly
fails to retain possession of or maintain control over funds in which a
foreign terrorist organization or its agent has an interest, or to
report the existence of such funds in accordance with these
regulations, shall be subject to a civil penalty in an amount that is
the greater of the amount set forth in 18 U.S.C. 2339B(b) per
violation, or twice the amount of which the financial institution was
required to retain possession or control.
(2) The civil penalties provided in 18 U.S.C. 2339B(b) are subject
to adjustment pursuant to the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461
note).
Note to paragraph (b): As of August 1, 2016, the applicable
maximum civil penalty per violation is $75,122 or twice the amount
of which a financial institution was required to retain possession
or control.
* * * * *
PART 598--FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS
0
51. The authority citation for part 598 continues to read as follows:
Authority: 3 U.S.C. 301; 21 U.S.C. 1901-1908; 31 U.S.C. 321(b);
Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note).
Subpart G--Penalties.
0
52. Amend Sec. 598.701 by revising paragraphs (a)(3) and (b) to read
as follows:
Sec. 598.701 Penalties.
(a) * * *
(3) A civil penalty not to exceed the amount set forth in section
807 of the Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901-
1908) per violation may be imposed by the Secretary of the Treasury on
any person who violates any license, order, rule, or regulation issued
in compliance with the provisions of the Foreign Narcotics Kingpin
Designation Act.
Note to paragraph (a)(3): As of August 1, 2016, the maximum
civil penalty is $1,414,020 per violation.
(b) Adjustments to penalty amounts. (1) The current civil penalty
cap may be adjusted for inflation pursuant to the Federal Civil
Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as
amended, 28 U.S.C. 2461 note).
(2) The criminal penalties provided in this part are subject to
increase pursuant to 18 U.S.C. 3571.
* * * * *
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-15552 Filed 6-30-16; 8:45 am]
BILLING CODE 4810-AL-P
