Global Terrorism Sanctions Regulations; Transnational Criminal Organizations Sanctions Regulations; and Hizballah Financial Sanctions Regulations, 35307-35313 [2019-15600]
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Federal Register / Vol. 84, No. 141 / Tuesday, July 23, 2019 / Rules and Regulations
§ 601.601(d)(2) of this chapter) or in
other guidance, such as forms or
instructions, issued with respect to the
notification.
(3) User fee. The notification must be
accompanied by payment of the user fee
set forth by published guidance in the
Internal Revenue Bulletin (see
§ 601.601(d)(2) of this chapter) or in
other guidance, such as forms or
instructions, issued with respect to the
notification.
(4) Extension for reasonable cause.
The Commissioner may, for reasonable
cause, extend the 60-day period for
submitting the notification.
(b) Special rules for organizations that
were organized on or before July 8,
2016—(1) Notification requirement does
not apply to organizations that filed
with the IRS on or before December 18,
2015. The requirement to submit the
notification does not apply to any
organization described in section
501(c)(4) that, on or before December 18,
2015, either—
(i) Applied for a written
determination of recognition as an
organization described in section
501(c)(4) in accordance with § 1.501(a)–
1 and all applicable guidance published
in the Internal Revenue Bulletin (see
§ 601.601(d)(2) of this chapter), forms,
and instructions; or
(ii) Filed at least one annual
information return or annual electronic
notification required under section
6033(a)(1) or (i).
(2) Transition relief available for
organizations that filed with the IRS on
or before July 8, 2016. An organization
described in section 501(c)(4) is not
required to submit the notification if, on
or before July 8, 2016, the organization
either—
(i) Applied for a written
determination of recognition as an
organization described in section
501(c)(4) in accordance with § 1.501(a)–
1 and all applicable guidance published
in the Internal Revenue Bulletin (see
§ 601.601(d)(2) of this chapter), forms,
and instructions; or
(ii) Filed at least one annual
information return or annual electronic
notification required under section
6033(a)(1) or (i).
(3) Extended due date. An
organization that was organized on or
before July 8, 2016, and is not described
in paragraph (b)(1) or (2) of this section,
satisfies the requirement to submit the
notification if the notification was
submitted on or before September 6,
2016.
(c) Failure to submit the notification.
For information on the penalties for
failure to submit the notification, the
applicable reasonable cause exception,
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and applicable special rules, see section
6652(c)(4) through (6).
(d) Acknowledgment of receipt.
Within 60 days after receipt of the
notification, the Commissioner will
send the organization an
acknowledgment of such receipt. This
acknowledgment is not a determination
by the Commissioner that the
organization qualifies for exemption
under section 501(a) as an organization
described in section 501(c)(4). See
paragraph (e) of this section.
(e) Separate procedure by which an
organization may request an IRS
determination that it qualifies for
section 501(c)(4) tax-exempt status.
Submission of the notification does not
constitute a request by an organization
for a determination by the
Commissioner that the organization
qualifies for exemption under section
501(a) as an organization described in
section 501(c)(4). An organization
seeking IRS recognition of its taxexempt status must separately request
such a determination in accordance
with § 1.501(a)–1 and all applicable
guidance published in the Internal
Revenue Bulletin (see § 601.601(d)(2) of
this chapter), forms, and instructions.
(f) Applicability date. This section
applies on and after July 8, 2016.
§ 1.506–1T
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[Removed]
Par. 3. Section 1.506–1T is removed.
PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 4. The authority for part 602
continues to read as follows:
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Authority: 26 U.S.C. 7805.
35307
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
Approved: July 9, 2019.
David J. Kautter,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2019–15614 Filed 7–19–19; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 566, 590, and 594
Global Terrorism Sanctions
Regulations; Transnational Criminal
Organizations Sanctions Regulations;
and Hizballah Financial Sanctions
Regulations
Office of Foreign Assets
Control, Treasury.
AGENCY:
ACTION:
Final rule.
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is amending the Global
Terrorism Sanctions Regulations
(GTSR), and the Transnational Criminal
Organizations Sanctions Regulations
(TCOSR), to implement and reference
the Hizballah International Financing
Prevention Amendments Act of 2018
(HIFPAA). OFAC is also amending the
GTSR to implement and reference the
Sanctioning the Use of Civilians as
Defenseless Shields Act of 2018 (Shields
Act). OFAC is further amending the
TCOSR to implement Executive Order
13863 of March 15, 2019 (‘‘Taking
Additional Steps to Address the
National Emergency with respect to
Significant Transnational Criminal
Organizations’’). Finally, OFAC is
amending the Hizballah Financial
Sanctions Regulations (HFSR), to make
certain technical and conforming
changes and to update certain
provisions.
SUMMARY:
Par. 5. In § 602.101, paragraph (b) is
amended by adding an entry in
numerical order for § 1.506–1 and
removing the entry for § 1.506–1T to
read as follows:
DATES:
§ 602.101
FOR FURTHER INFORMATION CONTACT:
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OMB Control numbers.
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(b) * * *
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CFR part or section
where identified and
described
Current OMB
control No.
Effective: July 23, 2019.
OFAC: Assistant Director for Licensing,
202–622–2480; Assistant Director for
Regulatory Affairs, 202–622–4855; or
Assistant Director for Sanctions
Compliance & Evaluation, 202–622–
2490.
SUPPLEMENTARY INFORMATION:
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1.506–1
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Electronic Availability
This document and additional
information concerning OFAC are
available from OFAC’s website
(www.treasury.gov/ofac).
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Background
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Implementing HIFPAA and the Shields
Act in the GTSR and Implementing
HIFPAA in the TCOSR
HIFPAA. On October 25, 2018, the
President signed HIFPAA into law.
HIFPAA amends the Hizballah
International Financing Prevention Act
of 2015 (HIFPA), Public Law 114–102,
to impose certain specified sanctions
on: (1) Foreign persons that knowingly
assist in or provide significant support
for fundraising or recruitment activities
for Hizballah (section 101(a) of
HIFPAA); (2) agencies of foreign states
that knowingly provide certain
significant support to Hizballah (section
103(a) of HIFPAA); and (3) affiliated
networks of Hizballah (section 201(b) of
HIFPAA).
More specifically, section 101(a) of
HIFPAA provides for blocking sanctions
on any foreign person that the President
determines knowingly provides
significant financial, material, or
technological support for or to: (1) Bayt
al-Mal, Jihad al-Bina, the Islamic
Resistance Support Association, the
Foreign Relations Department of
Hizballah, the External Security
Organization of Hizballah, or any
successor or affiliate thereof as
designated by the President; (2) alManar TV, al Nour Radio, or the
Lebanese Media Group, or any successor
or affiliate thereof as designated by the
President; (3) a foreign person
determined by the President to be
engaged in fundraising or recruitment
activities for Hizballah; or (4) a foreign
person owned or controlled by a person
described in paragraph (1), (2), or (3).
Section 103(a) of HIFPAA provides for
blocking sanctions on any agency or
instrumentality of a foreign state that
the President determines has, on or after
October 25, 2018 (the date of the
enactment of HIFPAA), knowingly: (A)
Conducted significant joint combat
operations with, or significantly
supported combat operations of,
Hizballah; or (B) provided significant
financial support for or to, or significant
arms or related materiel to, Hizballah.
Section 201(b) of HIFPAA provides
for specified sanctions with respect to
affiliated networks of Hizballah,
including, as appropriate, by reason of
significant transnational criminal
activities engaged in by such networks.
Section 201(b) requires the President to
impose on such networks sanctions
applicable with respect to Hizballah
pursuant to any provision of law,
including Executive Order (E.O.) 13581
(relating to blocking property of
transnational organizations).
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Section 301 of HIFPAA provides
authority for the President to
promulgate regulations ‘‘as necessary for
the implementation of this Act and the
amendments made by this Act.’’
Pursuant to the Presidential
Memorandum of May 24, 2019,
‘‘Delegation of Function under the
Hizballah International Financing
Prevention Act of 2015, as Amended’’
(84 FR 24975, May 30, 2019), the
President delegated the function vested
in the President by section 102(d) of
HIFPA, as amended by HIFPAA, to the
Secretary of the Treasury, in
consultation with the Secretary of State.
Pursuant to the Presidential
Memorandum of January 15, 2019,
‘‘Delegation of Functions and
Authorities under the Hizballah
International Financing Prevention Act
of 2015, as Amended, and the Hizballah
International Financing Prevention
Amendments Act of 2018’’ (84 FR 3963,
February 13, 2019), the President
delegated, among other things, the
functions and authorities set forth in
sections 101(a), 101(b)(1), 102(a), 102(c),
102(d), 103(a), 201(a–b), 204(b), and 302
of HIFPA, as amended by HIFPAA, as
well as section 301 of HIFPAA, to the
Secretary of the Treasury, in
coordination with the State Department
and other relevant departments and
agencies.
Section 302(a) of HIFPAA provides
for exemptions from the prohibitions in
sections 101, 102, 103 and 201 for
certain activities, including authorized
U.S. intelligence, law enforcement or
national security activities as well as
transactions necessary for the U.S. to
comply with United Nations
obligations. These exemptions are being
added to the GTSR in § 594.207.
Shields Act. On December 21, 2018,
the President signed the Shields Act
into law. The Shields Act states that it
shall be U.S. policy to condemn the use
of innocent civilians as human shields.
Section 3(b) of the Shields Act provides
that the President shall submit to
Congress within one year, and annually
thereafter until the expiration of the
Shields Act on December 31, 2023, a list
of: (1) Each foreign person that the
President determines on or after
December 21, 2018, is (A) a member of
Hizballah or HAMAS or is knowingly
acting on behalf of Hizballah or HAMAS
and (B) knowingly orders, controls, or
otherwise directs the use of civilians
protected as such by the law of war to
shield military objectives from attack;
and (2) each foreign person or agency or
instrumentality of a foreign state, that
the President determines on or after
December 21, 2018, knowingly and
materially directs or supports any such
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act by such a person. Sections 3(a)(1)
and (d) require the President, with
certain exceptions, to exercise powers
granted by the International Emergency
Economic Powers Act (IEEPA) to the
extent necessary to block, and prohibit
all transactions in, all property and
interests in property that are in the
United States, that come within the
United States, or that are or come within
the possession or control of any United
States person of a listed person.
Section 3(c) of the Shields Act urges
the President to submit to Congress
within one year, and annually thereafter
until the expiration of the Shields Act
on December 31, 2023, a list of each
foreign person that the President
determines on or after December 21,
2018, knowingly directs the use of
civilians protected by the law of war to
shield military objectives from attack,
excluding those foreign persons
included in the most recent mandatory
sanctions list under Section 3(b).
Sections 3(a)(2) and (d) provide that the
President may, with certain exceptions,
exercise powers granted by IEEPA to the
extent necessary to block, and prohibit
all transactions in, all property and
interests in property that are in the
United States, that come within the
United States, or that are or come within
the possession or control of any United
States person of a listed person.
Section 3(h)(2) of the Shields Act
provides authority for the President to
promulgate regulations ‘‘as may be
necessary to implement this section.’’
Pursuant to the ‘‘Delegation of
Functions and Authorities under the
Sanctioning the Use of Civilians as
Defenseless Shields Act,’’ May 24, 2019,
and Public Law 115–348, the President
delegated to the Secretary of the
Treasury, in consultation with the
Secretary of State, the functions and
authorities vested in the President by
sections 3(a), 3(b), 3(c), 3(d)(1), and 3(h)
of the Shields Act.
Regulatory Amendments. The GTSR,
31 CFR part 594, implements E.O. 13224
of September 23, 2001 (‘‘Blocking
Property and Prohibiting Transactions
With Persons Who Commit, Threaten to
Commit, or Support Terrorism’’), in
which the President declared a national
emergency generally with respect to
‘‘grave acts of terrorism and threats of
terrorism committed by foreign
terrorists.’’
Subpart B of the GTSR implements
the prohibitions contained in E.O.
13224. See § 594.201. This rule amends
§ 594.201 of the GTSR to implement the
additional sanctions prohibitions of
HIFPAA and the Shields Act. Persons
designated by or under the authority of
the Secretary of the Treasury, in
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consultation with the Secretary of State,
pursuant to these amendments or
otherwise subject to blocking pursuant
to the GTSR are referred to throughout
the GTSR as ‘‘persons whose property
and interests in property are blocked
pursuant to § 594.201(a).’’ The names of
persons designated pursuant to the
HIFPAA, the Shields Act, or E.O. 13224
are published on OFAC’s Specially
Designated Nationals and Blocked
Persons List (SDN List), which is
accessible via OFAC’s website. Those
names also are published in the Federal
Register as they are added to the SDN
List.
In addition, in subpart C, which
defines key terms used throughout the
GTSR, OFAC is adding several
definitions. Specifically, OFAC is
adding definitions for agency or
instrumentality of a foreign state in new
§ 594.318, HAMAS in new § 594.319,
Hizballah in new § 594.320, knowingly
in new § 594.321, and arms or related
material in new § 594.322.
As noted above, section 201(b) of
HIFPAA also provides for blocking
sanctions with respect to affiliated
networks of Hizballah, including, as
appropriate, by reason of significant
transnational criminal activities engaged
in by such networks. The TCOSR, 31
CFR part 590, implement E.O. 13581 of
July 24, 2011 (‘‘Blocking Property of
Transnational Criminal Organizations’’),
in which the President declared a
national emergency generally with
respect to the activities of ‘‘significant
transnational criminal organizations.’’
Accordingly, OFAC is amending the
TCOSR to reference the authorities from
section 201(b) of HIFPAA.
The President, through the issuance of
E.O. 13224 and E.O. 13581, has put in
place prohibitions and designation
criteria that encompass all of the
prohibitions and designation criteria
contained in the provisions of HIFPAA
and the Shields Act discussed above
and has thereby already taken the steps
necessary to implement those
provisions. OFAC is issuing these
amendments to the GTSR and the
TCOSR to reflect the various provisions
of HIFPAA and the Shields Act in the
GTSR and the TCOSR.
Implementing E.O. 13863
On March 15, 2019, the President,
invoking the authority of, inter alia,
IEEPA, issued E.O.13863 (84 FR 10255,
March 15, 2019) (E.O. 13863). In E.O.
13863, the President took additional
steps to deal with the national
emergency with respect to significant
transnational criminal organizations
declared in E.O. 13581, in view of the
evolution of these organizations as well
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as the increasing sophistication of their
activities, which threaten international
political and economic systems and
pose a direct threat to the safety and
welfare of the United States and its
citizens, and given the ability of these
organizations to derive revenue through
widespread illegal conduct, including
acts of violence and abuse that exhibit
a wanton disregard for human life as
well as many other crimes enriching
and empowering these organizations.
E.O. 13863 amends subsection (e) of
section 3 of E.O. 13581 to define the
term ‘‘significant transnational criminal
organization’’ to mean ‘‘a group of
persons that includes one or more
foreign persons; that engages in or
facilitates an ongoing pattern of serious
criminal activity involving the
jurisdictions of at least two foreign
states, or one foreign state and the
United States; and that threatens the
national security, foreign policy, or
economy of the United States.’’
OFAC is amending the TCOSR to
implement E.O. 13863, pursuant to
authorities delegated to the Secretary of
the Treasury in E.O. 13581. Specifically,
OFAC is amending § 590.201 of the
TCOSR to reference E.O. 13863 and is
incorporating the amended definition of
significant transnational criminal
organization into the TCOSR by adding
new § 590.315. The TCOSR were
published in abbreviated form for the
purpose of providing immediate
guidance to the public. A copy of E.O.
13581 appears in appendix A and a
copy of E.O. 13863 is being added in a
new appendix B to part 590. OFAC
intends to supplement part 590 with a
more comprehensive set of regulations,
which may include additional
interpretive and definitional guidance,
general licenses, and statements of
licensing policy. The appendices to part
590 will be removed at that time.
Technical Amendments to the Hizballah
Financial Sanctions Regulations (HFSR)
On April 15, 2016, OFAC published
the HFSR (81 FR 22185, April 15, 2016)
to implement the requirements of the
HIFPA. This rule amends the HFSR to
make certain technical and conforming
changes and to update certain
provisions.
First, in § 566.309, this rule corrects
two internal references to § 566.304 to
read: ‘‘covered financial institution, as
defined in § 566.303.’’ Second, in
subpart G of the HFSR, which describes
the civil and criminal penalties
applicable to violations of the HFSR,
OFAC is adding new § 566.705
regarding the procedures governing the
potential issuance of a Finding of
Violation and makes conforming
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changes by removing other references to
a Finding of Violation in §§ 566.702 and
566.703. Third, OFAC is revising
§ 501.901 to reflect approval by the
Office of Management and Budget
(OMB) of the information collection set
forth in § 566.504(b).
Finally, section 302(a) of HIFPAA
provides for exemptions from the
prohibitions in sections 101, 102, 103,
and 201 for certain activities, including
authorized U.S. intelligence, law
enforcement or national security
activities as well as transactions
necessary for the U.S. to comply with
United Nations obligations. These
exemptions are being added to the
HFSR in § 566.203.
Public Participation
Because the amendments of the
GTSR, the TCOSR, and the HFSR
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, as well as the provisions of
Executive Order 13771, 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 in the
TCOSR, the GTSR, and § 566.601 of the
HFSR are made pursuant to the
Reporting, Procedures and Penalties
Regulations (RPPR), 31 CFR part 501,
and have been approved by OMB under
control number 1505–0164. The
collection of information in § 566.504(b)
of the HFSR has been approved by OMB
under control number 1505–0255.
With respect to all of the foregoing
collections of information, 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
31 CFR Part 566
Administrative practice and
procedure, Banks, banking, Brokers,
Foreign trade, Hizballah, Investments,
Loans, Money laundering, Penalties,
Securities, Services.
31 CFR Part 590
Administrative practice and
procedure, Banks, banking, Blocking of
assets, Credit, Foreign financial
institutions, Foreign trade, Loans,
Money laundering, Penalties, Reporting
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and recordkeeping requirements,
Services.
31 CFR Part 594
Administrative practice and
procedure, Banks, banking, Blocking of
assets, Penalties, Reporting and
recordkeeping requirements, Sanctions,
Terrorism.
5. Revise § 566.702(a) and (d) to read
as follows:
For the reasons set forth in the
preamble, the Department of the
Treasury’s Office of Foreign Assets
Control amends 31 CFR parts 566, 590
and 594 as follows:
PART 566—HIZBALLAH FINANCIAL
SANCTIONS REGULATIONS
1. Revise the authority citation for part
566 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);
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C.
1705 note); Pub. L. 114–102, 129 Stat. 2205
(50 U.S.C. 1701 note); Pub. L. 115–272, 132
Stat. 4144 (50 U.S.C. 1701 note).
Subpart B—Prohibitions
2. Add § 566.203 to read as follows:
§ 566.203
Exempt transactions.
Sanctions will not be imposed under
§ 566.201 with respect to:
(a) Any authorized intelligence, law
enforcement, or national security
activities of the United States.
(b) Any transaction necessary to
comply with United States obligations
under the Agreement between the
United Nations and the United States of
America regarding the Headquarters of
the United States, signed at Lake
Success June 26, 1947, and entered into
force November 21, 1947, or the
Convention on Consular Relations, done
at Vienna April 24, 1963, and entered
into force March 19, 1967, or any other
United States international agreement.
Subpart C—General Definitions
3. Revise § 566.309(a)(2) and (3) to
read as follows:
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§ 566.309
Foreign financial institution.
(a) * * *
(2) Any branch or office located
outside the United States of a covered
financial institution, as defined in
§ 566.303;
(3) Any other person organized under
foreign law (other than a branch or
office of such person in the United
States) that, if it were located in the
United States, would be a covered
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Subpart G—Penalties and Finding of
Violation
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Authority and Issuance
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financial institution, as defined in
§ 566.303; and
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read as follows:
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§ 566.702
Pre-Penalty Notice; settlement.
(a) When required. If OFAC has
reason to believe that there has occurred
a violation of any provision of this part
or a violation of the provisions of any
license, ruling, regulation, order,
directive, or instruction issued by or
pursuant to the direction or
authorization of the Secretary of the
Treasury pursuant to this part or
otherwise under the International
Emergency Economic Powers Act (50
U.S.C. 1701–1706) and determines that
a civil monetary penalty is warranted,
OFAC will issue a Pre-Penalty Notice
informing the alleged violator of the
agency’s intent to impose a monetary
penalty. A Pre-Penalty Notice shall be in
writing. The Pre-Penalty Notice may be
issued whether or not another agency
has taken any action with respect to the
matter. For a description of the contents
of a Pre-Penalty Notice, see appendix A
to part 501 of this chapter.
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(d) Guidelines. Guidelines for the
imposition or settlement of civil
penalties by OFAC are contained in
appendix A to part 501 of this chapter.
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■ 6. Revise § 566.703 to read as follows:
§ 566.703
Penalty imposition.
If, after considering any written
response to the Pre-Penalty Notice and
any relevant facts, OFAC determines
that there was a violation by the alleged
violator named in the Pre-Penalty
Notice and that a civil monetary penalty
is appropriate, OFAC may issue a
Penalty Notice to the violator containing
a determination of the violation and the
imposition of the monetary penalty. For
additional details concerning issuance
of a Penalty Notice, see appendix A to
part 501 of this chapter. The issuance of
the Penalty Notice shall constitute final
agency action. The violator has the right
to seek judicial review of that final
agency action in federal district court.
■ 7. Add § 566.705 to read as follows:
§ 566.705
Finding of Violation.
(a) When issued. (1) OFAC may issue
an initial Finding of Violation that
identifies a violation if OFAC:
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(i) Determines that there has occurred
a violation of any provision of this part,
or a violation of the provisions of any
license, ruling, regulation, order,
directive, or instruction issued by or
pursuant to the direction or
authorization of the Secretary of the
Treasury pursuant to this part or
otherwise under the International
Emergency Economic Powers Act (50
U.S.C. 1701–1706);
(ii) Considers it important to
document the occurrence of a violation;
and,
(iii) Based on the Guidelines
contained in appendix A to part 501 of
this chapter, concludes that an
administrative response is warranted
but that a civil monetary penalty is not
the most appropriate response.
(2) An initial Finding of Violation
shall be in writing and may be issued
whether or not another agency has taken
any action with respect to the matter.
For additional details concerning
issuance of a Finding of Violation, see
appendix A to part 501 of this chapter.
(b) Response—(1) Right to respond.
An alleged violator has the right to
contest an initial Finding of Violation
by providing a written response to
OFAC.
(2) Deadline for response; Default
determination. A response to an initial
Finding of Violation must be made
within 30 days as set forth in paragraphs
(b)(2)(i) and (ii) of this section. The
failure to submit a response within 30
days shall be deemed to be a waiver of
the right to respond, and the initial
Finding of Violation will become final
and will constitute final agency action.
The violator has the right to seek
judicial review of that final agency
action in federal district court.
(i) Computation of time for response.
A response to an initial Finding of
Violation must be postmarked or datestamped by the U.S. Postal Service (or
foreign postal service, if mailed abroad)
or courier service provider (if
transmitted to OFAC by courier) on or
before the 30th day after the postmark
date on the envelope in which the
initial Finding of Violation was served.
If the initial Finding of Violation was
personally delivered by a non-U.S.
Postal Service agent authorized by
OFAC, a response must be postmarked
or date-stamped on or before the 30th
day after the date of delivery.
(ii) Extensions of time for response. If
a due date falls on a Federal holiday or
weekend, that due date is extended to
include the following business day. Any
other extensions of time will be granted,
at the discretion of OFAC, only upon
specific request to OFAC.
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(3) Form and method of response. A
response to an initial Finding of
Violation need not be in any particular
form, but it must be typewritten and
signed by the alleged violator or a
representative thereof, contain
information sufficient to indicate that it
is in response to the initial Finding of
Violation, and include the OFAC
identification number listed on the
initial Finding of Violation. A copy of
the written response may be sent by
facsimile, but the original also must be
sent to OFAC by mail or courier and
must be postmarked or date-stamped in
accordance with paragraph (b)(2) of this
section.
(4) Information that should be
included in response. Any response
should set forth in detail why the
alleged violator either believes that the
alleged violation did not occur and/or
why a Finding of Violation is otherwise
unwarranted under the circumstances,
with reference to the General Factors
Affecting Administrative Action set
forth in the Guidelines contained in
appendix A to part 501 of this chapter.
The response should include all
documentary or other evidence
available to the alleged violator that
supports the arguments set forth in the
response. OFAC will consider all
relevant materials submitted in the
response.
(c) Determination—(1) Determination
that a Finding of Violation is warranted.
If, after considering the response, OFAC
determines that a final Finding of
Violation should be issued, OFAC will
issue a final Finding of Violation that
will inform the violator of its decision.
A final Finding of Violation shall
constitute final agency action. The
violator has the right to seek judicial
review of that final agency action in
Federal district court.
(2) Determination that a Finding of
Violation is not warranted. If, after
considering the response, OFAC
determines a Finding of Violation is not
warranted, then OFAC will inform the
alleged violator of its decision not to
issue a final Finding of Violation.
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Note 1 to paragraph (c)(2): A
determination by OFAC that a final Finding
of Violation is not warranted does not
preclude OFAC from pursuing other
enforcement actions consistent with the
Guidelines contained in appendix A to part
501 of this chapter.
(d) Representation. A representative
of the alleged violator may act on behalf
of the alleged violator, but any oral
communication with OFAC prior to a
written submission regarding the
specific alleged violations contained in
the initial Finding of Violation must be
preceded by a written letter of
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representation, unless the initial
Finding of Violation was served upon
the alleged violator in care of the
representative.
Subpart I—Paperwork Reduction Act
■
8. Revise § 566.901 to read as follows:
§ 566.901
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, and other procedures, see
§ 501.901 of this chapter. The
information collection in § 566.504(b)
has been approved by OMB and
assigned control number 1505–0255. 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.
PART 590—TRANSNATIONAL
CRIMINAL ORGANIZATIONS
SANCTIONS REGULATIONS
9. Revise the authority citation for part
590 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. 115–272, 132 Stat. 4144
(50 U.S.C. 1701 note); E.O. 13581, 76 FR
44757, 3 CFR, 2011 Comp., p. 260; E.O.
13863, 84 FR 10255, March 15, 2019.
Subpart B—Prohibitions
§ 590.201
[Amended]
10. Amend § 590.201 by adding the
text ‘‘, as amended by Executive Order
13863 of March 15, 2019 (84 FR 10255,
March 15, 2019),’’ before the text ‘‘are
also prohibited.’’
■
Subpart C—Definitions
■
11. Add § 590.315 to read as follows:
§ 590.315 Significant transnational
criminal organization.
The term significant transnational
criminal organization means a group of
persons that includes one or more
foreign persons; that engages in or
facilitates an ongoing pattern of serious
criminal activity involving the
jurisdictions of at least two foreign
states, or one foreign state and the
United States; and that threatens the
national security, foreign policy, or
economy of the United States.
■
PO 00000
12. Add § 590.316 to read as follows:
Frm 00027
Fmt 4700
Sfmt 4700
§ 590.316
35311
Hizballah.
The term Hizballah means:
(a) The entity known as Hizballah and
designated by the Secretary of State as
a foreign terrorist organization pursuant
to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189); or
(b) Any person:
(1) The property and interests in
property of which are blocked pursuant
to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et
seq.); and
(2) Who is identified on the Specially
Designated Nationals and Blocked
Persons List (SDN List) maintained by
OFAC as an agent, instrumentality, or
affiliate of Hizballah.
■ 13. Add appendix B to part 590 to
read as follows:
Appendix B to Part 590—Executive
Order 13863
Executive Order 13863 of March 15, 2019
Taking Additional Steps To Address the
National Emergency With Respect to
Significant Transnational Criminal
Organizations
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.), the National
Emergencies Act (50 U.S.C. 1601 et seq.), and
section 301 of title 3, United States Code;
I, DONALD J. TRUMP, President of the
United States of America, in order to take
additional steps to deal with the national
emergency with respect to significant
transnational criminal organizations declared
in Executive Order 13581 of July 24, 2011
(Blocking Property of Transnational Criminal
Organizations), in view of the evolution of
these organizations as well as the increasing
sophistication of their activities, which
threaten international political and economic
systems and pose a direct threat to the safety
and welfare of the United States and its
citizens, and given the ability of these
organizations to derive revenue through
widespread illegal conduct, including acts of
violence and abuse that exhibit a wanton
disregard for human life as well as many
other crimes enriching and empowering
these organizations, hereby order:
Section 1. Subsection (e) of section 3 of
Executive Order 13581 is hereby amended to
read as follows:
‘‘(e) the term ‘‘significant transnational
criminal organization’’ means a group of
persons that includes one or more foreign
persons; that engages in or facilitates an
ongoing pattern of serious criminal activity
involving the jurisdictions of at least two
foreign states, or one foreign state and the
United States; and that threatens the national
security, foreign policy, or economy of the
United States.’’
Sec. 2. (a) Nothing in this order shall be
construed to impair or otherwise affect:
(i) the authority granted by law to an
executive department or agency, or the head
thereof; or
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(ii) the functions of the Director of the
Office of Management and Budget relating to
budgetary, administrative, or legislative
proposals.
(b) This order shall be implemented
consistent with applicable law and subject to
the availability of appropriations.
(c) 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.
DONALD J. TRUMP
THE WHITE HOUSE
March 15, 2019
PART 594—GLOBAL TERRORISM
SANCTIONS REGULATIONS
14. Revise the authority citation for
part 594 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 (50 U.S.C. 1705 note); Pub. L. 115–44,
131 Stat 886 (22 U.S.C. 9401 et seq.); 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; Pub. L.
115–348, 132 Stat. 5055 (50 U.S.C. 1701
note); Pub. L. 115–272, 132 Stat. 4144 (50
U.S.C. 1701 note).
Subpart B—Prohibitions
15. Amend § 594.201 by:
a. Revising paragraph (a)(4)(ii).
b. In paragraph (a)(5), removing the
period at the end of the paragraph and
adding a semicolon in its place.
■ c. Adding paragraphs (a)(6) through
(11) and (c).
The revision and additions read as
follows:
■
■
■
jspears on DSK30JT082PROD with RULES
§ 594.201 Prohibited transactions
involving blocked property.
(a) * * *
(4) * * *
(ii) To be otherwise associated with
any person whose property or interests
in property are blocked pursuant to
paragraph (a)(1), (2), or (3) or (a)(4)(i) of
this section;
*
*
*
*
*
(6) Foreign persons determined by the
Secretary of the Treasury, in
consultation with the Secretary of State,
to knowingly provide significant
financial, material, or technological
support for or to:
(i) Bayt al-Mal, Jihad al-Bina, the
Islamic Resistance Support Association,
the Foreign Relations Department of
Hizballah, the External Security
Organization of Hizballah, or any
successor or affiliate thereof as
designated by the Secretary of the
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16:11 Jul 22, 2019
Jkt 247001
Treasury, in consultation with the
Secretary of State;
(ii) Al-Manar TV, al Nour Radio, or
the Lebanese Media Group, or any
successor or affiliate thereof as
designated by the Secretary of the
Treasury, in consultation with the
Secretary of State;
(iii) A foreign person determined by
the Secretary of the Treasury, in
consultation with the Secretary of State,
to be engaged in fundraising or
recruitment activities for Hizballah; or
(iv) A foreign person owned or
controlled by a person described in
paragraph (a)(6)(i), (ii), or (iii) of this
section;
(7) Agencies or instrumentalities of a
foreign state determined by the
Secretary of the Treasury, in
consultation with the Secretary of State,
to have, on or after October 25, 2018,
knowingly:
(i) Conducted significant joint combat
operations with, or significantly
supported combat operations of,
Hizballah; or
(ii) Provided significant financial
support for or to, or significant arms or
related materiel to, Hizballah;
(8) Foreign persons included on a list
provided to Congress under paragraph
(b) of Section 3 of the Sanctioning the
Use of Civilians as Defenseless Shields
Act of 2018 (Pub. L. 115–348) (Shields
Act) because they have been determined
by the Secretary of the Treasury, in
consultation with the Secretary of State,
on or after December 21, 2018:
(i) To be a member of Hizballah or to
be knowingly acting on behalf of
Hizballah; and
(ii) To knowingly order, control, or
otherwise direct the use of civilians
protected as such by the law of war to
shield military objectives from attack;
(9) Foreign persons included on a list
provided to Congress under paragraph
(b) of Section 3 of the Shields Act
because they have been determined by
the Secretary of the Treasury, in
consultation with the Secretary of State,
on or after December 21, 2018:
(i) To be a member of HAMAS or to
be knowingly acting on behalf of Hamas;
and
(ii) To knowingly order, control, or
otherwise direct the use of civilians
protected as such by the law of war to
shield military objectives from attack;
(10) Foreign persons, agencies, or
instrumentalities of a foreign state,
included on a list provided to Congress
under paragraph (b) of Section 3 of the
Shields Act because they have been
determined by the Secretary of the
Treasury, in consultation with the
Secretary of State, on or after December
21, 2018, to knowingly and materially
PO 00000
Frm 00028
Fmt 4700
Sfmt 4700
support, order, control, direct, or
otherwise engage in:
(i) Any act described in paragraph
(a)(8)(ii) of this section by a person
described in paragraph (a)(8) of this
section; or
(ii) Any act described in paragraph
(a)(9)(ii) of this section by a person
described in paragraph (a)(9) of this
section; or
(11) Foreign persons included on a
list provided to Congress under
paragraph (c) of Section 3 of the Shields
Act because they have been determined
by the Secretary of the Treasury, in
consultation with the Secretary of State,
on or after December 21, 2018, to
knowingly order, control, or otherwise
direct the use of civilians protected as
such by the law of war to shield military
objectives from attack, and with respect
to which the Secretary of the Treasury,
in consultation with the Secretary of
State, has exercised the authority to
block all property and interests in
property.
*
*
*
*
*
(c) The prohibitions in paragraph (a)
of this section do not apply to the
importation of any goods that would
otherwise be prohibited solely due to
the interest of a person whose property
and interests in property are blocked
solely pursuant to paragraph (a)(6) or (7)
of this section. For the purposes of this
paragraph (c), the term ‘‘goods’’ means
any articles, natural or manmade
substance, material, supply or
manufactured product, including
inspection and test equipment, and
excluding technical data.
*
*
*
*
*
■ 16. Add § 594.207 to read as follows:
§ 594.207
Exempt transactions.
The prohibitions contained in
§ 594.201(a)(6) and (7) do not apply to
the following activities:
(a) Any authorized intelligence, law
enforcement, or national security
activities of the United States; or
(b) Any transaction necessary to
comply with United States obligations
under the Agreement between the
United Nations and the United States of
America regarding the Headquarters of
the United States, signed at Lake
Success June 26, 1947, and entered into
force November 21, 1947, or the
Convention on Consular Relations, done
at Vienna April 24, 1963, and entered
into force March 19, 1967, or any other
United States international agreement.
Subpart C—Definitions
■
17. Add § 594.318 to read as follows:
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§ 594.318 Agency or instrumentality of a
foreign state.
The term agency or instrumentality of
a foreign state has the meaning given
that term in section 1603(b) of title 28,
United States Code.
■ 18. Add § 594.319 to read as follows:
§ 594.319
HAMAS.
The term HAMAS means:
(a) The entity known as HAMAS and
designated by the Secretary of State as
a foreign terrorist organization pursuant
to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189); or
(b) Any person:
(1) The property and interests in
property of which are blocked pursuant
to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et
seq.); and
(2) Who is identified on the Specially
Designated Nationals and Blocked
Persons List (SDN List) maintained by
OFAC as an agent, instrumentality, or
affiliate of HAMAS.
Note 1 to § 594.319: The SDN List is
accessible through the following page on
OFAC’s website: www.treasury.gov/sdn.
Additional information pertaining to the SDN
List can be found in appendix A to this
chapter. Persons on the SDN List based on
conduct described in § 594.201(a)(9), (10),
(11) are identified by a special reference at
the end of their entries on the SDN List—
‘‘[SHIELD–ACT]’’—in addition to the
reference to the regulatory part of this
chapter pursuant to which their property and
interests in property are blocked. For
example, a person whose property and
interests in property are blocked pursuant to
the Global Terrorism Sanctions Regulations,
§ 594.201(a)(9), (10), or (11), and identified
on the SDN List will have the program tag
‘‘[SDGT]’’ and ‘‘[SHIELD–ACT].’’
■
19. Add § 594.320 to read as follows:
jspears on DSK30JT082PROD with RULES
§ 594.320
Hizballah.
The term Hizballah means:
(a) The entity known as Hizballah and
designated by the Secretary of State as
a foreign terrorist organization pursuant
to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189); or
(b) Any person:
(1) The property and interests in
property of which are blocked pursuant
to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et
seq.); and
(2) Who is identified on the Specially
Designated Nationals and Blocked
Persons List (SDN List) maintained by
OFAC as an agent, instrumentality, or
affiliate of Hizballah.
Note 1 to § 594.320: The SDN List is
accessible through the following page on
OFAC’s website: www.treasury.gov/sdn.
Additional information pertaining to the SDN
List can be found in appendix A to this
VerDate Sep<11>2014
16:11 Jul 22, 2019
Jkt 247001
chapter. Persons on the SDN List based on
conduct described in § 594.201(a)(8), (10),
and (11) are identified by a special reference
at the end of their entries on the SDN List—
‘‘[SHIELD–ACT]’’—in addition to the
reference to the regulatory part of this
chapter pursuant to which their property and
interests in property are blocked. For
example, a person whose property and
interests in property are blocked pursuant to
the Global Terrorism Sanctions Regulations,
§ 594.201(a)(8), (10), or (11), and identified
on the SDN List will have the program tag
‘‘[SDGT]’’ and ‘‘[SHIELD–ACT]’’. Persons on
the SDN List based on conduct described in
§ 594.201(a)(6) and (7) are identified by a
special reference at the end of their entries
on the SDN List—‘‘[HIFPAA]’’—in addition
to the reference to the regulatory part of this
chapter pursuant to which their property and
interests in property are blocked. For
example, a person whose property and
interests in property are blocked pursuant to
the Global Terrorism Sanctions Regulations,
§ 594.201(a)(6) or (7), and identified on the
SDN List will have the program tag ‘‘[SDGT]’’
and ‘‘[HIFPAA]’’.
■
20. Add § 594.321 to read as follows:
§ 594.321
Knowingly.
The term knowingly, with respect to
conduct, a circumstance, or a result,
means that a person has actual
knowledge, or should have known, of
the conduct, the circumstance, or the
result.
■ 21. Add § 594.322 to read as follows:
§ 594.322
Arms or related materiel.
The term arms or related materiel
means:
(a) Nuclear, biological, chemical, or
radiological weapons or materials or
components of such weapons;
(b) Ballistic or cruise missile weapons
or materials or components of such
weapons; or
(c) Destabilizing numbers and types of
advanced conventional weapons.
Dated: July 18, 2019.
Bradley Smith,
Deputy Director, Office of Foreign Assets
Control.
[FR Doc. 2019–15600 Filed 7–22–19; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2019–0597]
RIN 1625–AA00
Safety Zone; NAACP Fireworks, Detroit
River, MI
AGENCY:
PO 00000
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Frm 00029
Fmt 4700
Sfmt 4700
ACTION:
35313
Temporary final rule.
The Coast Guard is
establishing a temporary safety zone for
navigable waters within a 200-yard
radius of a portion of the Detroit River,
Detroit, MI. This zone is necessary to
protect spectators and vessels from
potential hazards associated with the
NAACP Fireworks.
DATES: This temporary final rule is
effective from 9:30 p.m. on July 23,
2019, through 11 p.m. on July 24, 2019.
ADDRESSES: To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type USCG–2019–
0597 in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rule.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this temporary
rule, call or email Tracy Girard,
Prevention Department, Sector Detroit,
Coast Guard; telephone 313–568–9564,
or email Tracy.M.Girard@uscg.mil.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Table of Abbreviations
CFR Code of Federal Regulations
COTP Captain of the Port Detroit
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking
§ Section
U.S.C. United States Code
II. Background Information and
Regulatory History
The Coast Guard is issuing this
temporary rule without prior notice and
opportunity to comment pursuant to
authority under section 4(a) of the
Administrative Procedure Act (APA) (5
U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when the agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under 5 U.S.C.
553(b)(B), the Coast Guard finds that
good cause exists for not publishing a
notice of proposed rulemaking (NPRM)
with respect to this rule because doing
so would be impracticable. The Coast
Guard did not receive the final details
of this fireworks display in time to
publish an NPRM. As such, it is
impracticable to publish an NPRM
because we lack sufficient time to
provide a reasonable comment period
and then consider those comments
before issuing the rule. Furthermore,
immediate action is needed to allow the
Coast Guard to enhance the safety of
this event.
E:\FR\FM\23JYR1.SGM
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Agencies
[Federal Register Volume 84, Number 141 (Tuesday, July 23, 2019)]
[Rules and Regulations]
[Pages 35307-35313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15600]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 566, 590, and 594
Global Terrorism Sanctions Regulations; Transnational Criminal
Organizations Sanctions Regulations; and Hizballah Financial Sanctions
Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is amending the Global Terrorism Sanctions Regulations
(GTSR), and the Transnational Criminal Organizations Sanctions
Regulations (TCOSR), to implement and reference the Hizballah
International Financing Prevention Amendments Act of 2018 (HIFPAA).
OFAC is also amending the GTSR to implement and reference the
Sanctioning the Use of Civilians as Defenseless Shields Act of 2018
(Shields Act). OFAC is further amending the TCOSR to implement
Executive Order 13863 of March 15, 2019 (``Taking Additional Steps to
Address the National Emergency with respect to Significant
Transnational Criminal Organizations''). Finally, OFAC is amending the
Hizballah Financial Sanctions Regulations (HFSR), to make certain
technical and conforming changes and to update certain provisions.
DATES: Effective: July 23, 2019.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Sanctions Compliance &
Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available from OFAC's website (www.treasury.gov/ofac).
[[Page 35308]]
Background
Implementing HIFPAA and the Shields Act in the GTSR and Implementing
HIFPAA in the TCOSR
HIFPAA. On October 25, 2018, the President signed HIFPAA into law.
HIFPAA amends the Hizballah International Financing Prevention Act of
2015 (HIFPA), Public Law 114-102, to impose certain specified sanctions
on: (1) Foreign persons that knowingly assist in or provide significant
support for fundraising or recruitment activities for Hizballah
(section 101(a) of HIFPAA); (2) agencies of foreign states that
knowingly provide certain significant support to Hizballah (section
103(a) of HIFPAA); and (3) affiliated networks of Hizballah (section
201(b) of HIFPAA).
More specifically, section 101(a) of HIFPAA provides for blocking
sanctions on any foreign person that the President determines knowingly
provides significant financial, material, or technological support for
or to: (1) Bayt al-Mal, Jihad al-Bina, the Islamic Resistance Support
Association, the Foreign Relations Department of Hizballah, the
External Security Organization of Hizballah, or any successor or
affiliate thereof as designated by the President; (2) al-Manar TV, al
Nour Radio, or the Lebanese Media Group, or any successor or affiliate
thereof as designated by the President; (3) a foreign person determined
by the President to be engaged in fundraising or recruitment activities
for Hizballah; or (4) a foreign person owned or controlled by a person
described in paragraph (1), (2), or (3). Section 103(a) of HIFPAA
provides for blocking sanctions on any agency or instrumentality of a
foreign state that the President determines has, on or after October
25, 2018 (the date of the enactment of HIFPAA), knowingly: (A)
Conducted significant joint combat operations with, or significantly
supported combat operations of, Hizballah; or (B) provided significant
financial support for or to, or significant arms or related materiel
to, Hizballah.
Section 201(b) of HIFPAA provides for specified sanctions with
respect to affiliated networks of Hizballah, including, as appropriate,
by reason of significant transnational criminal activities engaged in
by such networks. Section 201(b) requires the President to impose on
such networks sanctions applicable with respect to Hizballah pursuant
to any provision of law, including Executive Order (E.O.) 13581
(relating to blocking property of transnational organizations).
Section 301 of HIFPAA provides authority for the President to
promulgate regulations ``as necessary for the implementation of this
Act and the amendments made by this Act.'' Pursuant to the Presidential
Memorandum of May 24, 2019, ``Delegation of Function under the
Hizballah International Financing Prevention Act of 2015, as Amended''
(84 FR 24975, May 30, 2019), the President delegated the function
vested in the President by section 102(d) of HIFPA, as amended by
HIFPAA, to the Secretary of the Treasury, in consultation with the
Secretary of State. Pursuant to the Presidential Memorandum of January
15, 2019, ``Delegation of Functions and Authorities under the Hizballah
International Financing Prevention Act of 2015, as Amended, and the
Hizballah International Financing Prevention Amendments Act of 2018''
(84 FR 3963, February 13, 2019), the President delegated, among other
things, the functions and authorities set forth in sections 101(a),
101(b)(1), 102(a), 102(c), 102(d), 103(a), 201(a-b), 204(b), and 302 of
HIFPA, as amended by HIFPAA, as well as section 301 of HIFPAA, to the
Secretary of the Treasury, in coordination with the State Department
and other relevant departments and agencies.
Section 302(a) of HIFPAA provides for exemptions from the
prohibitions in sections 101, 102, 103 and 201 for certain activities,
including authorized U.S. intelligence, law enforcement or national
security activities as well as transactions necessary for the U.S. to
comply with United Nations obligations. These exemptions are being
added to the GTSR in Sec. 594.207.
Shields Act. On December 21, 2018, the President signed the Shields
Act into law. The Shields Act states that it shall be U.S. policy to
condemn the use of innocent civilians as human shields. Section 3(b) of
the Shields Act provides that the President shall submit to Congress
within one year, and annually thereafter until the expiration of the
Shields Act on December 31, 2023, a list of: (1) Each foreign person
that the President determines on or after December 21, 2018, is (A) a
member of Hizballah or HAMAS or is knowingly acting on behalf of
Hizballah or HAMAS and (B) knowingly orders, controls, or otherwise
directs the use of civilians protected as such by the law of war to
shield military objectives from attack; and (2) each foreign person or
agency or instrumentality of a foreign state, that the President
determines on or after December 21, 2018, knowingly and materially
directs or supports any such act by such a person. Sections 3(a)(1) and
(d) require the President, with certain exceptions, to exercise powers
granted by the International Emergency Economic Powers Act (IEEPA) to
the extent necessary to block, and prohibit all transactions in, all
property and interests in property that are in the United States, that
come within the United States, or that are or come within the
possession or control of any United States person of a listed person.
Section 3(c) of the Shields Act urges the President to submit to
Congress within one year, and annually thereafter until the expiration
of the Shields Act on December 31, 2023, a list of each foreign person
that the President determines on or after December 21, 2018, knowingly
directs the use of civilians protected by the law of war to shield
military objectives from attack, excluding those foreign persons
included in the most recent mandatory sanctions list under Section
3(b). Sections 3(a)(2) and (d) provide that the President may, with
certain exceptions, exercise powers granted by IEEPA to the extent
necessary to block, and prohibit all transactions in, all property and
interests in property that are in the United States, that come within
the United States, or that are or come within the possession or control
of any United States person of a listed person.
Section 3(h)(2) of the Shields Act provides authority for the
President to promulgate regulations ``as may be necessary to implement
this section.'' Pursuant to the ``Delegation of Functions and
Authorities under the Sanctioning the Use of Civilians as Defenseless
Shields Act,'' May 24, 2019, and Public Law 115-348, the President
delegated to the Secretary of the Treasury, in consultation with the
Secretary of State, the functions and authorities vested in the
President by sections 3(a), 3(b), 3(c), 3(d)(1), and 3(h) of the
Shields Act.
Regulatory Amendments. The GTSR, 31 CFR part 594, implements E.O.
13224 of September 23, 2001 (``Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism''), in which the President declared a national emergency
generally with respect to ``grave acts of terrorism and threats of
terrorism committed by foreign terrorists.''
Subpart B of the GTSR implements the prohibitions contained in E.O.
13224. See Sec. [thinsp]594.201. This rule amends Sec. 594.201 of the
GTSR to implement the additional sanctions prohibitions of HIFPAA and
the Shields Act. Persons designated by or under the authority of the
Secretary of the Treasury, in
[[Page 35309]]
consultation with the Secretary of State, pursuant to these amendments
or otherwise subject to blocking pursuant to the GTSR are referred to
throughout the GTSR as ``persons whose property and interests in
property are blocked pursuant to Sec. [thinsp]594.201(a).'' The names
of persons designated pursuant to the HIFPAA, the Shields Act, or E.O.
13224 are published on OFAC's Specially Designated Nationals and
Blocked Persons List (SDN List), which is accessible via OFAC's
website. Those names also are published in the Federal Register as they
are added to the SDN List.
In addition, in subpart C, which defines key terms used throughout
the GTSR, OFAC is adding several definitions. Specifically, OFAC is
adding definitions for agency or instrumentality of a foreign state in
new Sec. 594.318, HAMAS in new Sec. 594.319, Hizballah in new Sec.
594.320, knowingly in new Sec. 594.321, and arms or related material
in new Sec. 594.322.
As noted above, section 201(b) of HIFPAA also provides for blocking
sanctions with respect to affiliated networks of Hizballah, including,
as appropriate, by reason of significant transnational criminal
activities engaged in by such networks. The TCOSR, 31 CFR part 590,
implement E.O. 13581 of July 24, 2011 (``Blocking Property of
Transnational Criminal Organizations''), in which the President
declared a national emergency generally with respect to the activities
of ``significant transnational criminal organizations.'' Accordingly,
OFAC is amending the TCOSR to reference the authorities from section
201(b) of HIFPAA.
The President, through the issuance of E.O. 13224 and E.O. 13581,
has put in place prohibitions and designation criteria that encompass
all of the prohibitions and designation criteria contained in the
provisions of HIFPAA and the Shields Act discussed above and has
thereby already taken the steps necessary to implement those
provisions. OFAC is issuing these amendments to the GTSR and the TCOSR
to reflect the various provisions of HIFPAA and the Shields Act in the
GTSR and the TCOSR.
Implementing E.O. 13863
On March 15, 2019, the President, invoking the authority of, inter
alia, IEEPA, issued E.O.13863 (84 FR 10255, March 15, 2019) (E.O.
13863). In E.O. 13863, the President took additional steps to deal with
the national emergency with respect to significant transnational
criminal organizations declared in E.O. 13581, in view of the evolution
of these organizations as well as the increasing sophistication of
their activities, which threaten international political and economic
systems and pose a direct threat to the safety and welfare of the
United States and its citizens, and given the ability of these
organizations to derive revenue through widespread illegal conduct,
including acts of violence and abuse that exhibit a wanton disregard
for human life as well as many other crimes enriching and empowering
these organizations. E.O. 13863 amends subsection (e) of section 3 of
E.O. 13581 to define the term ``significant transnational criminal
organization'' to mean ``a group of persons that includes one or more
foreign persons; that engages in or facilitates an ongoing pattern of
serious criminal activity involving the jurisdictions of at least two
foreign states, or one foreign state and the United States; and that
threatens the national security, foreign policy, or economy of the
United States.''
OFAC is amending the TCOSR to implement E.O. 13863, pursuant to
authorities delegated to the Secretary of the Treasury in E.O. 13581.
Specifically, OFAC is amending Sec. 590.201 of the TCOSR to reference
E.O. 13863 and is incorporating the amended definition of significant
transnational criminal organization into the TCOSR by adding new Sec.
590.315. The TCOSR were published in abbreviated form for the purpose
of providing immediate guidance to the public. A copy of E.O. 13581
appears in appendix A and a copy of E.O. 13863 is being added in a new
appendix B to part 590. OFAC intends to supplement part 590 with a more
comprehensive set of regulations, which may include additional
interpretive and definitional guidance, general licenses, and
statements of licensing policy. The appendices to part 590 will be
removed at that time.
Technical Amendments to the Hizballah Financial Sanctions Regulations
(HFSR)
On April 15, 2016, OFAC published the HFSR (81 FR 22185, April 15,
2016) to implement the requirements of the HIFPA. This rule amends the
HFSR to make certain technical and conforming changes and to update
certain provisions.
First, in Sec. 566.309, this rule corrects two internal references
to Sec. 566.304 to read: ``covered financial institution, as defined
in Sec. 566.303.'' Second, in subpart G of the HFSR, which describes
the civil and criminal penalties applicable to violations of the HFSR,
OFAC is adding new Sec. 566.705 regarding the procedures governing the
potential issuance of a Finding of Violation and makes conforming
changes by removing other references to a Finding of Violation in
Sec. Sec. 566.702 and 566.703. Third, OFAC is revising Sec. 501.901
to reflect approval by the Office of Management and Budget (OMB) of the
information collection set forth in Sec. 566.504(b).
Finally, section 302(a) of HIFPAA provides for exemptions from the
prohibitions in sections 101, 102, 103, and 201 for certain activities,
including authorized U.S. intelligence, law enforcement or national
security activities as well as transactions necessary for the U.S. to
comply with United Nations obligations. These exemptions are being
added to the HFSR in Sec. 566.203.
Public Participation
Because the amendments of the GTSR, the TCOSR, and the HFSR 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, as well as the provisions of Executive Order 13771, 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 in the TCOSR, the GTSR, and Sec.
566.601 of the HFSR are made pursuant to the Reporting, Procedures and
Penalties Regulations (RPPR), 31 CFR part 501, and have been approved
by OMB under control number 1505-0164. The collection of information in
Sec. 566.504(b) of the HFSR has been approved by OMB under control
number 1505-0255.
With respect to all of the foregoing collections of information, 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
31 CFR Part 566
Administrative practice and procedure, Banks, banking, Brokers,
Foreign trade, Hizballah, Investments, Loans, Money laundering,
Penalties, Securities, Services.
31 CFR Part 590
Administrative practice and procedure, Banks, banking, Blocking of
assets, Credit, Foreign financial institutions, Foreign trade, Loans,
Money laundering, Penalties, Reporting
[[Page 35310]]
and recordkeeping requirements, Services.
31 CFR Part 594
Administrative practice and procedure, Banks, banking, Blocking of
assets, Penalties, Reporting and recordkeeping requirements, Sanctions,
Terrorism.
Authority and Issuance
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR parts 566,
590 and 594 as follows:
PART 566--HIZBALLAH FINANCIAL SANCTIONS REGULATIONS
0
1. Revise the authority citation for part 566 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, 129 Stat. 2205 (50 U.S.C. 1701 note); Pub. L. 115-272, 132
Stat. 4144 (50 U.S.C. 1701 note).
Subpart B--Prohibitions
0
2. Add Sec. 566.203 to read as follows:
Sec. 566.203 Exempt transactions.
Sanctions will not be imposed under Sec. 566.201 with respect to:
(a) Any authorized intelligence, law enforcement, or national
security activities of the United States.
(b) Any transaction necessary to comply with United States
obligations under the Agreement between the United Nations and the
United States of America regarding the Headquarters of the United
States, signed at Lake Success June 26, 1947, and entered into force
November 21, 1947, or the Convention on Consular Relations, done at
Vienna April 24, 1963, and entered into force March 19, 1967, or any
other United States international agreement.
Subpart C--General Definitions
0
3. Revise Sec. 566.309(a)(2) and (3) to read as follows:
Sec. 566.309 Foreign financial institution.
(a) * * *
(2) Any branch or office located outside the United States of a
covered financial institution, as defined in Sec. 566.303;
(3) Any other person organized under foreign law (other than a
branch or office of such person in the United States) that, if it were
located in the United States, would be a covered financial institution,
as defined in Sec. 566.303; and
* * * * *
0
4. Revise the heading for subpart G to read as follows:
Subpart G--Penalties and Finding of Violation
0
5. Revise Sec. 566.702(a) and (d) to read as follows:
Sec. 566.702 Pre-Penalty Notice; settlement.
(a) When required. If OFAC has reason to believe that there has
occurred a violation of any provision of this part or a violation of
the provisions of any license, ruling, regulation, order, directive, or
instruction issued by or pursuant to the direction or authorization of
the Secretary of the Treasury pursuant to this part or otherwise under
the International Emergency Economic Powers Act (50 U.S.C. 1701-1706)
and determines that a civil monetary penalty is warranted, OFAC will
issue a Pre-Penalty Notice informing the alleged violator of the
agency's intent to impose a monetary penalty. A Pre-Penalty Notice
shall be in writing. The Pre-Penalty Notice may be issued whether or
not another agency has taken any action with respect to the matter. For
a description of the contents of a Pre-Penalty Notice, see appendix A
to part 501 of this chapter.
* * * * *
(d) Guidelines. Guidelines for the imposition or settlement of
civil penalties by OFAC are contained in appendix A to part 501 of this
chapter.
* * * * *
0
6. Revise Sec. 566.703 to read as follows:
Sec. 566.703 Penalty imposition.
If, after considering any written response to the Pre-Penalty
Notice and any relevant facts, OFAC determines that there was a
violation by the alleged violator named in the Pre-Penalty Notice and
that a civil monetary penalty is appropriate, OFAC may issue a Penalty
Notice to the violator containing a determination of the violation and
the imposition of the monetary penalty. For additional details
concerning issuance of a Penalty Notice, see appendix A to part 501 of
this chapter. The issuance of the Penalty Notice shall constitute final
agency action. The violator has the right to seek judicial review of
that final agency action in federal district court.
0
7. Add Sec. 566.705 to read as follows:
Sec. 566.705 Finding of Violation.
(a) When issued. (1) OFAC may issue an initial Finding of Violation
that identifies a violation if OFAC:
(i) Determines that there has occurred a violation of any provision
of this part, or a violation of the provisions of any license, ruling,
regulation, order, directive, or instruction issued by or pursuant to
the direction or authorization of the Secretary of the Treasury
pursuant to this part or otherwise under the International Emergency
Economic Powers Act (50 U.S.C. 1701-1706);
(ii) Considers it important to document the occurrence of a
violation; and,
(iii) Based on the Guidelines contained in appendix A to part 501
of this chapter, concludes that an administrative response is warranted
but that a civil monetary penalty is not the most appropriate response.
(2) An initial Finding of Violation shall be in writing and may be
issued whether or not another agency has taken any action with respect
to the matter. For additional details concerning issuance of a Finding
of Violation, see appendix A to part 501 of this chapter.
(b) Response--(1) Right to respond. An alleged violator has the
right to contest an initial Finding of Violation by providing a written
response to OFAC.
(2) Deadline for response; Default determination. A response to an
initial Finding of Violation must be made within 30 days as set forth
in paragraphs (b)(2)(i) and (ii) of this section. The failure to submit
a response within 30 days shall be deemed to be a waiver of the right
to respond, and the initial Finding of Violation will become final and
will constitute final agency action. The violator has the right to seek
judicial review of that final agency action in federal district court.
(i) Computation of time for response. A response to an initial
Finding of Violation must be postmarked or date-stamped by the U.S.
Postal Service (or foreign postal service, if mailed abroad) or courier
service provider (if transmitted to OFAC by courier) on or before the
30th day after the postmark date on the envelope in which the initial
Finding of Violation was served. If the initial Finding of Violation
was personally delivered by a non-U.S. Postal Service agent authorized
by OFAC, a response must be postmarked or date-stamped on or before the
30th day after the date of delivery.
(ii) Extensions of time for response. If a due date falls on a
Federal holiday or weekend, that due date is extended to include the
following business day. Any other extensions of time will be granted,
at the discretion of OFAC, only upon specific request to OFAC.
[[Page 35311]]
(3) Form and method of response. A response to an initial Finding
of Violation need not be in any particular form, but it must be
typewritten and signed by the alleged violator or a representative
thereof, contain information sufficient to indicate that it is in
response to the initial Finding of Violation, and include the OFAC
identification number listed on the initial Finding of Violation. A
copy of the written response may be sent by facsimile, but the original
also must be sent to OFAC by mail or courier and must be postmarked or
date-stamped in accordance with paragraph (b)(2) of this section.
(4) Information that should be included in response. Any response
should set forth in detail why the alleged violator either believes
that the alleged violation did not occur and/or why a Finding of
Violation is otherwise unwarranted under the circumstances, with
reference to the General Factors Affecting Administrative Action set
forth in the Guidelines contained in appendix A to part 501 of this
chapter. The response should include all documentary or other evidence
available to the alleged violator that supports the arguments set forth
in the response. OFAC will consider all relevant materials submitted in
the response.
(c) Determination--(1) Determination that a Finding of Violation is
warranted. If, after considering the response, OFAC determines that a
final Finding of Violation should be issued, OFAC will issue a final
Finding of Violation that will inform the violator of its decision. A
final Finding of Violation shall constitute final agency action. The
violator has the right to seek judicial review of that final agency
action in Federal district court.
(2) Determination that a Finding of Violation is not warranted. If,
after considering the response, OFAC determines a Finding of Violation
is not warranted, then OFAC will inform the alleged violator of its
decision not to issue a final Finding of Violation.
Note 1 to paragraph (c)(2): A determination by OFAC that a
final Finding of Violation is not warranted does not preclude OFAC
from pursuing other enforcement actions consistent with the
Guidelines contained in appendix A to part 501 of this chapter.
(d) Representation. A representative of the alleged violator may
act on behalf of the alleged violator, but any oral communication with
OFAC prior to a written submission regarding the specific alleged
violations contained in the initial Finding of Violation must be
preceded by a written letter of representation, unless the initial
Finding of Violation was served upon the alleged violator in care of
the representative.
Subpart I--Paperwork Reduction Act
0
8. Revise Sec. 566.901 to read as follows:
Sec. 566.901 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, and other procedures, see Sec. 501.901 of this
chapter. The information collection in Sec. 566.504(b) has been
approved by OMB and assigned control number 1505-0255. 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.
PART 590--TRANSNATIONAL CRIMINAL ORGANIZATIONS SANCTIONS
REGULATIONS
0
9. Revise the authority citation for part 590 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. 115-
272, 132 Stat. 4144 (50 U.S.C. 1701 note); E.O. 13581, 76 FR 44757,
3 CFR, 2011 Comp., p. 260; E.O. 13863, 84 FR 10255, March 15, 2019.
Subpart B--Prohibitions
Sec. 590.201 [Amended]
0
10. Amend Sec. 590.201 by adding the text ``, as amended by Executive
Order 13863 of March 15, 2019 (84 FR 10255, March 15, 2019),'' before
the text ``are also prohibited.''
Subpart C--Definitions
0
11. Add Sec. 590.315 to read as follows:
Sec. 590.315 Significant transnational criminal organization.
The term significant transnational criminal organization means a
group of persons that includes one or more foreign persons; that
engages in or facilitates an ongoing pattern of serious criminal
activity involving the jurisdictions of at least two foreign states, or
one foreign state and the United States; and that threatens the
national security, foreign policy, or economy of the United States.
0
12. Add Sec. 590.316 to read as follows:
Sec. 590.316 Hizballah.
The term Hizballah means:
(a) The entity known as Hizballah and designated by the Secretary
of State as a foreign terrorist organization pursuant to section 219 of
the Immigration and Nationality Act (8 U.S.C. 1189); or
(b) Any person:
(1) The property and interests in property of which are blocked
pursuant to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.); and
(2) Who is identified on the Specially Designated Nationals and
Blocked Persons List (SDN List) maintained by OFAC as an agent,
instrumentality, or affiliate of Hizballah.
0
13. Add appendix B to part 590 to read as follows:
Appendix B to Part 590--Executive Order 13863
Executive Order 13863 of March 15, 2019
Taking Additional Steps To Address the National Emergency With Respect
to Significant Transnational Criminal Organizations
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.), the National Emergencies Act (50 U.S.C. 1601 et seq.), and
section 301 of title 3, United States Code;
I, DONALD J. TRUMP, President of the United States of America,
in order to take additional steps to deal with the national
emergency with respect to significant transnational criminal
organizations declared in Executive Order 13581 of July 24, 2011
(Blocking Property of Transnational Criminal Organizations), in view
of the evolution of these organizations as well as the increasing
sophistication of their activities, which threaten international
political and economic systems and pose a direct threat to the
safety and welfare of the United States and its citizens, and given
the ability of these organizations to derive revenue through
widespread illegal conduct, including acts of violence and abuse
that exhibit a wanton disregard for human life as well as many other
crimes enriching and empowering these organizations, hereby order:
Section 1. Subsection (e) of section 3 of Executive Order 13581
is hereby amended to read as follows:
``(e) the term ``significant transnational criminal
organization'' means a group of persons that includes one or more
foreign persons; that engages in or facilitates an ongoing pattern
of serious criminal activity involving the jurisdictions of at least
two foreign states, or one foreign state and the United States; and
that threatens the national security, foreign policy, or economy of
the United States.''
Sec. 2. (a) Nothing in this order shall be construed to impair
or otherwise affect:
(i) the authority granted by law to an executive department or
agency, or the head thereof; or
[[Page 35312]]
(ii) the functions of the Director of the Office of Management
and Budget relating to budgetary, administrative, or legislative
proposals.
(b) This order shall be implemented consistent with applicable
law and subject to the availability of appropriations.
(c) 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.
DONALD J. TRUMP
THE WHITE HOUSE
March 15, 2019
PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS
0
14. Revise the authority citation for part 594 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 (50 U.S.C. 1705
note); Pub. L. 115-44, 131 Stat 886 (22 U.S.C. 9401 et seq.); 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;
Pub. L. 115-348, 132 Stat. 5055 (50 U.S.C. 1701 note); Pub. L. 115-
272, 132 Stat. 4144 (50 U.S.C. 1701 note).
Subpart B--Prohibitions
0
15. Amend Sec. 594.201 by:
0
a. Revising paragraph (a)(4)(ii).
0
b. In paragraph (a)(5), removing the period at the end of the paragraph
and adding a semicolon in its place.
0
c. Adding paragraphs (a)(6) through (11) and (c).
The revision and additions read as follows:
Sec. 594.201 Prohibited transactions involving blocked property.
(a) * * *
(4) * * *
(ii) To be otherwise associated with any person whose property or
interests in property are blocked pursuant to paragraph (a)(1), (2), or
(3) or (a)(4)(i) of this section;
* * * * *
(6) Foreign persons determined by the Secretary of the Treasury, in
consultation with the Secretary of State, to knowingly provide
significant financial, material, or technological support for or to:
(i) Bayt al-Mal, Jihad al-Bina, the Islamic Resistance Support
Association, the Foreign Relations Department of Hizballah, the
External Security Organization of Hizballah, or any successor or
affiliate thereof as designated by the Secretary of the Treasury, in
consultation with the Secretary of State;
(ii) Al-Manar TV, al Nour Radio, or the Lebanese Media Group, or
any successor or affiliate thereof as designated by the Secretary of
the Treasury, in consultation with the Secretary of State;
(iii) A foreign person determined by the Secretary of the Treasury,
in consultation with the Secretary of State, to be engaged in
fundraising or recruitment activities for Hizballah; or
(iv) A foreign person owned or controlled by a person described in
paragraph (a)(6)(i), (ii), or (iii) of this section;
(7) Agencies or instrumentalities of a foreign state determined by
the Secretary of the Treasury, in consultation with the Secretary of
State, to have, on or after October 25, 2018, knowingly:
(i) Conducted significant joint combat operations with, or
significantly supported combat operations of, Hizballah; or
(ii) Provided significant financial support for or to, or
significant arms or related materiel to, Hizballah;
(8) Foreign persons included on a list provided to Congress under
paragraph (b) of Section 3 of the Sanctioning the Use of Civilians as
Defenseless Shields Act of 2018 (Pub. L. 115-348) (Shields Act) because
they have been determined by the Secretary of the Treasury, in
consultation with the Secretary of State, on or after December 21,
2018:
(i) To be a member of Hizballah or to be knowingly acting on behalf
of Hizballah; and
(ii) To knowingly order, control, or otherwise direct the use of
civilians protected as such by the law of war to shield military
objectives from attack;
(9) Foreign persons included on a list provided to Congress under
paragraph (b) of Section 3 of the Shields Act because they have been
determined by the Secretary of the Treasury, in consultation with the
Secretary of State, on or after December 21, 2018:
(i) To be a member of HAMAS or to be knowingly acting on behalf of
Hamas; and
(ii) To knowingly order, control, or otherwise direct the use of
civilians protected as such by the law of war to shield military
objectives from attack;
(10) Foreign persons, agencies, or instrumentalities of a foreign
state, included on a list provided to Congress under paragraph (b) of
Section 3 of the Shields Act because they have been determined by the
Secretary of the Treasury, in consultation with the Secretary of State,
on or after December 21, 2018, to knowingly and materially support,
order, control, direct, or otherwise engage in:
(i) Any act described in paragraph (a)(8)(ii) of this section by a
person described in paragraph (a)(8) of this section; or
(ii) Any act described in paragraph (a)(9)(ii) of this section by a
person described in paragraph (a)(9) of this section; or
(11) Foreign persons included on a list provided to Congress under
paragraph (c) of Section 3 of the Shields Act because they have been
determined by the Secretary of the Treasury, in consultation with the
Secretary of State, on or after December 21, 2018, to knowingly order,
control, or otherwise direct the use of civilians protected as such by
the law of war to shield military objectives from attack, and with
respect to which the Secretary of the Treasury, in consultation with
the Secretary of State, has exercised the authority to block all
property and interests in property.
* * * * *
(c) The prohibitions in paragraph (a) of this section do not apply
to the importation of any goods that would otherwise be prohibited
solely due to the interest of a person whose property and interests in
property are blocked solely pursuant to paragraph (a)(6) or (7) of this
section. For the purposes of this paragraph (c), the term ``goods''
means any articles, natural or manmade substance, material, supply or
manufactured product, including inspection and test equipment, and
excluding technical data.
* * * * *
0
16. Add Sec. 594.207 to read as follows:
Sec. 594.207 Exempt transactions.
The prohibitions contained in Sec. 594.201(a)(6) and (7) do not
apply to the following activities:
(a) Any authorized intelligence, law enforcement, or national
security activities of the United States; or
(b) Any transaction necessary to comply with United States
obligations under the Agreement between the United Nations and the
United States of America regarding the Headquarters of the United
States, signed at Lake Success June 26, 1947, and entered into force
November 21, 1947, or the Convention on Consular Relations, done at
Vienna April 24, 1963, and entered into force March 19, 1967, or any
other United States international agreement.
Subpart C--Definitions
0
17. Add Sec. 594.318 to read as follows:
[[Page 35313]]
Sec. 594.318 Agency or instrumentality of a foreign state.
The term agency or instrumentality of a foreign state has the
meaning given that term in section 1603(b) of title 28, United States
Code.
0
18. Add Sec. 594.319 to read as follows:
Sec. 594.319 HAMAS.
The term HAMAS means:
(a) The entity known as HAMAS and designated by the Secretary of
State as a foreign terrorist organization pursuant to section 219 of
the Immigration and Nationality Act (8 U.S.C. 1189); or
(b) Any person:
(1) The property and interests in property of which are blocked
pursuant to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.); and
(2) Who is identified on the Specially Designated Nationals and
Blocked Persons List (SDN List) maintained by OFAC as an agent,
instrumentality, or affiliate of HAMAS.
Note 1 to Sec. 594.319: The SDN List is accessible through the
following page on OFAC's website: www.treasury.gov/sdn. Additional
information pertaining to the SDN List can be found in appendix A to
this chapter. Persons on the SDN List based on conduct described in
Sec. 594.201(a)(9), (10), (11) are identified by a special
reference at the end of their entries on the SDN List--``[SHIELD-
ACT]''--in addition to the reference to the regulatory part of this
chapter pursuant to which their property and interests in property
are blocked. For example, a person whose property and interests in
property are blocked pursuant to the Global Terrorism Sanctions
Regulations, Sec. 594.201(a)(9), (10), or (11), and identified on
the SDN List will have the program tag ``[SDGT]'' and ``[SHIELD-
ACT].''
0
19. Add Sec. 594.320 to read as follows:
Sec. 594.320 Hizballah.
The term Hizballah means:
(a) The entity known as Hizballah and designated by the Secretary
of State as a foreign terrorist organization pursuant to section 219 of
the Immigration and Nationality Act (8 U.S.C. 1189); or
(b) Any person:
(1) The property and interests in property of which are blocked
pursuant to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.); and
(2) Who is identified on the Specially Designated Nationals and
Blocked Persons List (SDN List) maintained by OFAC as an agent,
instrumentality, or affiliate of Hizballah.
Note 1 to Sec. 594.320: The SDN List is accessible through the
following page on OFAC's website: www.treasury.gov/sdn. Additional
information pertaining to the SDN List can be found in appendix A to
this chapter. Persons on the SDN List based on conduct described in
Sec. 594.201(a)(8), (10), and (11) are identified by a special
reference at the end of their entries on the SDN List--``[SHIELD-
ACT]''--in addition to the reference to the regulatory part of this
chapter pursuant to which their property and interests in property
are blocked. For example, a person whose property and interests in
property are blocked pursuant to the Global Terrorism Sanctions
Regulations, Sec. 594.201(a)(8), (10), or (11), and identified on
the SDN List will have the program tag ``[SDGT]'' and ``[SHIELD-
ACT]''. Persons on the SDN List based on conduct described in Sec.
594.201(a)(6) and (7) are identified by a special reference at the
end of their entries on the SDN List--``[HIFPAA]''--in addition to
the reference to the regulatory part of this chapter pursuant to
which their property and interests in property are blocked. For
example, a person whose property and interests in property are
blocked pursuant to the Global Terrorism Sanctions Regulations,
Sec. 594.201(a)(6) or (7), and identified on the SDN List will have
the program tag ``[SDGT]'' and ``[HIFPAA]''.
0
20. Add Sec. 594.321 to read as follows:
Sec. 594.321 Knowingly.
The term knowingly, with respect to conduct, a circumstance, or a
result, means that a person has actual knowledge, or should have known,
of the conduct, the circumstance, or the result.
0
21. Add Sec. 594.322 to read as follows:
Sec. 594.322 Arms or related materiel.
The term arms or related materiel means:
(a) Nuclear, biological, chemical, or radiological weapons or
materials or components of such weapons;
(b) Ballistic or cruise missile weapons or materials or components
of such weapons; or
(c) Destabilizing numbers and types of advanced conventional
weapons.
Dated: July 18, 2019.
Bradley Smith,
Deputy Director, Office of Foreign Assets Control.
[FR Doc. 2019-15600 Filed 7-22-19; 8:45 am]
BILLING CODE 4810-AL-P