Iranian Financial Sanctions Regulations and Iranian Human Rights Abuses Sanctions Regulations, 38545-38551 [2019-16842]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[Federal Register Volume 84, Number 152 (Wednesday, August 7, 2019)]
[Rules and Regulations]
[Pages 38545-38551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16842]



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Rules and Regulations
                                                Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
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under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 84, No. 152 / Wednesday, August 7, 2019 / 
Rules and Regulations

[[Page 38545]]



DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 561 and 562


Iranian Financial Sanctions Regulations and Iranian Human Rights 
Abuses 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 Iranian Financial Sanctions Regulations, 
changing the heading of the Iranian Human Rights Abuses Sanctions 
Regulations to the Iranian Sector and Human Rights Abuses Sanctions 
Regulations, and amending the renamed Iranian Sector and Human Rights 
Abuses Sanctions Regulations to implement Executive Order 13871 of May 
8, 2019 (``Imposing Sanctions With Respect to the Iron, Steel, Aluminum 
and Copper Sectors of Iran'').

DATES: Effective Date: August 7, 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 on OFAC's website (www.treasury.gov/ofac).

Background

    On August 16, 2010, OFAC issued the Iranian Financial Sanctions 
Regulations, 31 CFR part 561 (75 FR 49836, August 16, 2010) (IFSR) to 
implement provisions of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (Pub. L. 111-195) (22 U.S.C. 
8501-8551). Since then, OFAC has amended the IFSR several times.
    On February 11, 2011, OFAC issued the Iranian Human Rights Abuses 
Sanctions Regulations, 31 CFR part 562 (76 FR 7695, February 11, 2011) 
(Iranian Human Rights Regulations) to implement Executive Order 13553 
of September 28, 2010 (75 FR 60567, October 1, 2010) (E.O. 13553). The 
Iranian Human Rights Regulations were published in abbreviated form for 
the purpose of providing immediate guidance to the public. OFAC amended 
the Iranian Human Rights Regulations on June 30, 2011 (76 FR 38534, 
June 30, 2011).
    On May 8, 2019, the President, invoking the authority of, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706) (IEEPA), issued Executive Order 13871 (84 FR 20761, May 10, 2019) 
(E.O. 13871). In E.O. 13871, the President found that it remains the 
policy of the United States to deny Iran all paths to both a nuclear 
weapon and intercontinental ballistic missiles, and to counter the 
totality of Iran's malign influence in the Middle East. He also found 
it is the policy of the United States to deny the Iranian government 
revenue, including revenue derived from the export of products from 
Iran's iron, steel, aluminum, and copper sectors, that may be used to 
provide funding and support for the proliferation of weapons of mass 
destruction, terrorist groups and networks, campaigns of regional 
aggression, and military expansion. In light of these findings, the 
President issued E.O. 13871 in order to take further steps with respect 
to the national emergency declared with respect to the actions and 
polices of the Government of Iran in Executive Order 12957 of March 15, 
1995 (60 FR 14615, March 17, 1995), and to supplement the authorities 
provided in the Iran Freedom and Counter-Proliferation Act of 2012 
(subtitle D of title XII of Pub. L. 112-239).
    Section 1(a) of E.O. 13871 blocks, with certain exceptions, 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 U.S. person of any person determined by 
the Secretary of the Treasury, in consultation with the Secretary of 
State: (i) To be operating in the iron, steel, aluminum, or copper 
sector of Iran, or to be a person that owns, controls, or operates an 
entity that is part of the iron, steel, aluminum, or copper sector of 
Iran; (ii) to have knowingly engaged, on or after May 8, 2019, in a 
significant transaction for the sale, supply, or transfer to Iran of 
significant goods or services used in connection with the iron, steel, 
aluminum, or copper sectors of Iran; (iii) to have knowingly engaged, 
on or after May 8, 2019, in a significant transaction for the purchase, 
acquisition, sale, transport, or marketing of iron, iron products, 
aluminum, aluminum products, steel, steel products, copper, or copper 
products from Iran; (iv) to have materially assisted, sponsored, or 
provided financial, material, or technological support for, or goods or 
services in support of, any person whose property and interests in 
property are blocked pursuant to section 1 of E.O. 13871; or (v) to be 
owned or controlled by, or to have acted or purported to act for or on 
behalf of, directly or indirectly, any person whose property and 
interests in property are blocked pursuant to section 1 of E.O. 13871. 
The property and interests in property of the persons described above 
may not be transferred, paid, exported, withdrawn, or otherwise dealt 
in.
    Section 2(a) of E.O. 13871 authorizes the Secretary of the 
Treasury, in consultation with the Secretary of State, to impose 
certain sanctions on a foreign financial institution (FFI) upon 
determining the FFI has, on or after May 8, 2019, knowingly conducted 
or facilitated any significant financial transaction: (i) For the sale, 
supply, or transfer to Iran of significant goods or services used in 
connection with the iron, steel, aluminum, or copper sectors of Iran; 
(ii) for the purchase, acquisition, sale, transport, or marketing of 
iron, iron products, aluminum, aluminum products, steel, steel 
products, copper, or copper products from Iran; or (iii) for or on 
behalf of any person whose property and interests in property are 
blocked pursuant to E.O. 13871. Section 2(b) of E.O. 13871 provides 
that, with respect to any FFI determined to meet any of the criteria 
section 2(a)(i) through (iii) of E.O. 13871, the Secretary of the 
Treasury may prohibit the opening, and prohibit or impose strict 
conditions on

[[Page 38546]]

the maintaining, in the United States of a correspondent account or 
payable-through account by such FFI.
    In Section 3 of E.O. 13871, the President determined that the 
making of donations of certain articles, such as food, clothing, and 
medicine, intended to be used to relieve human suffering, as specified 
in section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)), by, to, or for 
the benefit of any person whose property and interests in property are 
blocked pursuant to E.O. 13871 would seriously impair his ability to 
deal with the national emergency declared in E.O. 12957. The President 
therefore prohibited the donation of such items unless authorized by 
OFAC.
    Section 4 of E.O. 13871 provides that the prohibition on any 
transaction or dealing in blocked property or interests in property 
includes the making of any contribution or provision of funds, goods, 
or services by, to, or for the benefit of any person whose property and 
interests in property are blocked pursuant to E.O. 13871 and the 
receipt of any contribution or provision of funds, goods, or services 
from any such person.
    Section 6 of E.O. 13871 prohibits any transaction that evades or 
avoids, has the purpose of evading or avoiding, or attempts to violate 
any of the prohibitions set forth in E.O. 13871, as well as any 
conspiracy formed to violate such prohibitions.
    Section 7 of E.O. 13871 exempts transactions for the conduct of the 
official business of the Federal Government or the United Nations 
(including its specialized agencies, programmes, funds, and related 
organizations) by employees, grantees, or contractors thereof.
    Section 10 of E.O. 13871 authorizes the Secretary of the Treasury, 
in consultation with the Secretary of State, to take such actions, 
including the promulgation of rules and regulations, and to employ all 
powers granted to the President by IEEPA, as may be necessary to carry 
out the purposes of E.O. 13871. Section 10 of E.O. 13871 also provides 
that the Secretary of the Treasury may, consistent with applicable law, 
redelegate any of these functions within the Department of the 
Treasury.
    Section 12 of E.O. 13871 states that the measures taken pursuant to 
E.O. 13871 are in response to actions of the Government of Iran 
occurring after the conclusion of the 1981 Algiers Accords, and are 
intended solely as a response to those later actions.
    As set forth in more detail below, OFAC is implementing the 
correspondent or payable-through account sanctions set forth in section 
2 of E.O. 13871 in the IFSR, 31 CFR part 561, and the blocking 
sanctions set forth in section 1 of E.O. 13871 in the Iranian Human 
Rights Regulations, 31 CFR part 562. Additionally, OFAC is renaming the 
Iranian Human Rights Regulations, 31 CFR part 562, as the Iranian 
Sector and Human Rights Abuses Sanctions Regulations (ISHR).

Amendments to the IFSR

    OFAC is redesignating the existing Sec.  561.205 as Sec.  561.220 
and adding a new Sec.  561.205 to subpart B of the IFSR to implement 
the correspondent account or payable-through account sanctions in 
section 2 of E.O. 13871. Additionally, in subpart C, which defines key 
terms used throughout the IFSR, OFAC is adding new Sec. Sec.  561.331 
through 561.339 to provide definitions of aluminum, aluminum products, 
aluminum sector of Iran, copper, copper products, copper sector of 
Iran, iron, iron products, steel, steel products, iron sector of Iran, 
and steel sector of Iran. OFAC also is making conforming edits to Sec.  
561.301, relating to the effective date of applicable prohibitions, 
Sec.  561.403, relating to facilitation, Sec.  561.404, relating to 
determinations of significance, Sec.  561.504, relating to an 
authorization for transactions related to closing a correspondent or 
payable-through account, and Sec.  561.802, relating to the delegation 
of authority by the Secretary of the Treasury.

Changing the Heading of the Iranian Human Rights Regulations to the 
Iranian Sector and Human Rights Abuses Sanctions Regulations and 
Amending the Newly Renamed Regulations

    OFAC is changing the heading of the Iranian Human Rights Abuses 
Regulations, 31 CFR part 562, to the Iranian Sector and Human Rights 
Abuses Sanctions Regulations (ISHR) and amending the renamed 
regulations to implement section 1 of E.O. 13871.
    OFAC is adding a new Sec.  562.204 to the ISHR to implement the 
blocking sanctions in section 1 of E.O. 13871. In subpart C of the 
ISHR, which defines key terms used throughout the ISHR, OFAC is adding 
new Sec. Sec.  562.312 through 562.320 to provide definitions of 
aluminum, aluminum products, aluminum sector of Iran, copper, copper 
products, copper sector of Iran, iron, iron products, steel, steel 
products, iron sector of Iran, and steel sector of Iran. The 
definitions are the same as the corresponding definitions that are 
being added to the IFSR. In subpart D of the ISHR, which contains 
interpretive sections, OFAC is adding Sec.  562.407 setting forth the 
types of factors that, as a general matter, the Secretary of the 
Treasury will consider in determining, for purposes of section 1(a)(ii) 
and 1(a)(iii) of Executive Order 13871, whether transactions are 
significant. OFAC also is making conforming edits to Sec.  562.302, 
relating to the effective dates of applicable prohibitions, and Sec.  
562.802, relating to the delegation of authorities by the Secretary of 
the Treasury. Finally, the text of E.O. 13871 is being added to part 
562 as appendix B. OFAC intends to supplement part 562 with a more 
comprehensive set of regulations, which may include additional 
interpretative and definitional guidance and additional general 
licenses and statements of licensing policy.

Public Participation

    Because the amendment of the IFSR and the ISHR involves 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 related to Sec.  561.601 of the IFSR 
and to the ISHR are contained in OFAC's Reporting, Procedures and 
Penalties Regulations, 31 CFR part 501. Pursuant to the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3507), those collections of 
information have been approved by the Office of Management and Budget 
(OMB) under control number 1505-0164. The collection of information in 
section 561.504 of the IFSR has been approved by OMB under control 
number 1505-0243. 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 561

    Administrative practice and procedure, Aluminum, Banks, banking, 
Copper, correspondent account, Foreign Financial Institution, Iran, 
Iron, Metals, Payable-through account, Sanctions, Steel.

[[Page 38547]]

31 CFR Part 562

    Administrative practice and procedure, Aluminum, Banks, banking, 
Blocking of assets, Copper, Iran, Iron, Metals, Sanctions, Steel.

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

PART 561--IRANIAN FINANCIAL SANCTIONS REGULATIONS

0
1. The authority citation for part 561 is revised to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
Pub. L. 110-96, 121 Stat. 1011 (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, 3 CFR, 2012 Comp., p. 215; E.O. 13846, 83 FR 38939; E.O. 
13871, 84 FR 20761.

Subpart B--Prohibitions


Sec.  561.205   [Redesignated as Sec.  561.220]

0
2. Redesignate Sec.  561.205 as Sec.  561.220.

0
3. Add new Sec.  561.205 to read as follows:


Sec.  561.205  Metals-related sanctions on certain foreign financial 
institutions.

    (a) Imposition of sanctions. Subject to the exemptions set forth in 
paragraph (d) of this section, upon a determination by the Secretary of 
the Treasury, in consultation with the Secretary of State, that a 
foreign financial institution has, on or after May 8, 2019, knowingly 
engaged in one or more of the activities described in paragraph (b) of 
this section, the Secretary of the Treasury may:
    (1) Prohibit U.S. financial institutions from opening a 
correspondent account or a payable-through account in the United States 
for the foreign financial institution with respect to which the 
determination has been made; and either
    (2)(i) Prohibit U.S. financial institutions from maintaining a 
correspondent account or a payable-through account in the United States 
for the foreign financial institution with respect to which the 
determination has been made; or
    (ii) Impose one or more strict conditions on the maintaining of a 
correspondent account or payable-through account in the United States 
for the foreign financial institution with respect to which the 
determination has been made.

    Note 1 to paragraph (a):  The name of any foreign financial 
institution with respect to which a determination has been made 
pursuant to this paragraph (a), along with the relevant sanctions to 
be imposed (prohibition(s) and/or strict condition(s)), will be 
added to the List of Foreign Financial Institutions Subject to 
Correspondent Account or Payable-Through Account Sanctions (CAPTA 
List), which is maintained on the Office of Foreign Assets Control's 
website (www.treasury.gov/ofac), and published in the Federal 
Register.


    Note 2 to paragraph (a):  See Sec.  561.203(b) for examples of 
strict conditions that might be imposed, pursuant to paragraph 
(a)(2)(ii) of this section, on the maintaining of a correspondent 
account or payable-through account for a foreign financial 
institution with respect to which the Secretary of the Treasury's 
determination has been made.

    (b) Sanctionable activity. A foreign financial institution has 
engaged in an activity described in this paragraph if it knowingly 
conducted or facilitated, on or after May 8, 2019, any significant 
financial transaction:
    (1) For the sale, supply, or transfer to Iran of significant goods 
or services used in connection with the iron, steel, aluminum, or 
copper sectors of Iran;
    (2) For the purchase, acquisition, sale, transport, or marketing of 
iron, iron products, aluminum, aluminum products, steel, steel 
products, copper, or copper products from Iran; or
    (3) For or on behalf of any person whose property and interests in 
property are blocked pursuant to Executive Order 13871.
    (c) Prohibitions. (1) A U.S. financial institution shall not open a 
correspondent account or payable-through account in the United States 
for a foreign financial institution for which the opening of such an 
account is prohibited pursuant to paragraph (a)(1) of this section.
    (2) A U.S. financial institution shall not maintain a correspondent 
account or payable-through account in the United States for a foreign 
financial institution for which the maintaining of such an account is 
prohibited pursuant to paragraph (a)(2)(i) of this section.
    (3) A U.S. financial institution shall not maintain a correspondent 
account or payable-through account in the United States for a foreign 
financial institution in a manner that is inconsistent with any strict 
condition imposed and in effect pursuant to paragraph (a)(2)(ii) of 
this section.
    (4) The prohibitions in paragraphs (c)(1) through (c)(3) of this 
section apply except to the extent provided by regulations, orders, 
directives, or licenses that may be issued pursuant to this part, and 
notwithstanding any contract entered into or any license or permit 
granted prior to the effective date.
    (d) Exempt activity. Nothing in this section shall apply to 
transactions for the conduct of the official business of the Federal 
Government or the United Nations (including its specialized agencies, 
programmes, funds, and related organizations) by employees, grantees, 
or contractors thereof.

Subpart C--General Definitions

0
4. In Sec.  561.301, revise paragraph (a) and add new paragraph (d) to 
read as follows:


Sec.  561.301  Effective date.

    (a) The effective date of a prohibition or condition imposed 
pursuant to Sec. Sec.  561.201, 561.203, 561.204, or 561.205 on the 
opening or maintaining of a correspondent account or a payable-through 
account in the United States by a U.S. financial institution for a 
particular foreign financial institution is the earlier of the date the 
U.S. financial institution receives actual or constructive notice of 
such prohibition or condition.
* * * * *
    (d) For the purposes of this section, constructive notice is the 
date that notice of the blocking of the relevant person's property and 
interests in property is published in the Federal Register.

0
5. Add Sec.  561.331 through Sec.  561.337 to read as follows:
Sec.
* * * * *
561.331 Aluminum, Aluminum products.
561.332 Aluminum sector of Iran.
561.333 Copper, Copper products.
561.334 Copper sector of Iran.
561.335 Iron, Iron products, Steel, Steel products.
561.336 Iron sector of Iran.
561.337 Steel sector of Iran.
* * * * *


Sec.  561.331  Aluminum, Aluminum products.

    The terms aluminum and aluminum products mean any raw, semi-
fabricated, fabricated, or finished form of aluminum or aluminum alloy 
of all grades, sizes, and thicknesses, including in the following 
forms: Ores and concentrates (e.g., bauxite and alumina); unwrought 
aluminum including ingots, slabs, and billets; powders and flakes; 
wrought aluminum including bars, rods, profiles, plates, sheets, strip, 
foil, tubes, and pipes; tube or pipe fittings; reservoirs, tanks, vats, 
and similar containers; wire, stranded wire, ropes, cables, and plaited 
band; castings,

[[Page 38548]]

stampings, and forgings; waste and scrap, including slag, and any 
aluminum and aluminum products produced from the melting or recycling 
of aluminum scrap.


Sec.  561.332  Aluminum sector of Iran.

    The term aluminum sector of Iran means the mining, refining, 
processing, or manufacturing of aluminum or aluminum products in Iran.


Sec.  561.333  Copper, Copper products.

    The terms copper and copper products mean any raw, semi-fabricated, 
fabricated, or finished form of copper or copper alloy of all grades, 
sizes, and thicknesses, including in the following forms: Ores and 
concentrates; copper mattes, cement copper (precipitated copper); 
refined, unrefined, wrought, or unwrought copper; billets; cathodes; 
bars, rods, profiles, plates, sheets, strips, foil, tubes, and pipes; 
tube and pipe fittings; powders and flakes; reservoirs, tanks, vats, 
and similar containers; wire, stranded wire, ropes, cables, and plaited 
band; castings, stampings, and forgings; and waste and scrap, including 
slag.


Sec.  561.334  Copper sector of Iran.

    The term copper sector of Iran means the mining, refining, 
processing, or manufacturing of copper or copper products in Iran.


Sec.  561.335  Iron, Iron products, Steel, Steel products.

    The terms iron, iron products, steel, and steel products mean any 
raw, semi-fabricated, fabricated, or finished form of iron, iron alloy, 
alloy steel, non-alloy steel, ferroalloys, pig iron, and spiegeleisen 
of all grades, sizes, and thicknesses, whether or not clad, plated, or 
coated, including in the following forms: Iron ores and concentrates 
including roasted iron pyrites; pigs and blocks; ferrous products 
obtained by direct reduction of iron ore and other spongy ferrous 
products, in lumps or pellets; granules and powders; ingots, blooms 
billets, slabs, and beam blanks; flat-rolled products (plates, sheets, 
strips, and foils) either cut-to-length or in coils; bars, and rods; 
structural profiles (beams, channels, angles, and other shapes); sheet 
piling; railway or tramway track construction materials; tubes, pipes, 
and hollow profiles; tube or pipe fittings; reservoirs, tanks, vats, 
and similar containers; wire, stranded wire, ropes, cables, and plaited 
band; castings, stampings, and forgings; and ferrous waste and scrap, 
including slag.


Sec.  561.336  Iron sector of Iran.

    The term iron sector of Iran means the mining, refining, 
processing, or manufacturing of iron or iron products in Iran.


Sec.  561.337  Steel sector of Iran.

    The term steel sector of Iran means the iron-ore smelting, ferrous-
scrap melting, refining, processing, or manufacturing of steel or steel 
products in Iran.

Subpart D--Interpretations

0
6. Revise Sec.  561.403 to read as follows:


Sec.  561.403  Facilitation of certain efforts, activities, or 
transactions by foreign financial institutions.

    For purposes of Sec. Sec.  561.201, 561.203, 561.204, and 561.205, 
the term facilitate or facilitated used with respect to certain 
efforts, activities, or transactions refers to the provision of 
assistance by a foreign financial institution for those efforts, 
activities, or transactions, including the provision of currency, 
financial instruments, securities, or any other transmission of value; 
purchasing; selling; transporting; swapping; brokering; financing; 
approving; guaranteeing; or the provision of other services of any 
kind; or the provision of personnel; or the provision of software, 
technology, or goods of any kind.

0
7. In Sec.  561.404, revise the introductory paragraph to read as 
follows:


Sec.  561.404  Significant transaction or transactions; significant 
financial services; significant financial transaction.

    In determining, for purposes of paragraph (a)(5) of Sec.  561.201, 
whether a transaction is significant, whether transactions are 
significant, or whether financial services are significant, or, for 
purposes of paragraph (a) of Sec.  561.203, paragraph (b) of Sec.  
561.204, and paragraph (b) of Sec.  561.205 whether a financial 
transaction is significant, the Secretary of the Treasury may consider 
the totality of the facts and circumstances. As a general matter, the 
Secretary may consider some or all of the following factors:
* * * * *

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

0
8. In Sec.  561.504, revise the introductory paragraph to read as 
follows:


Sec.  561.504  Transactions related to closing a correspondent account 
or payable-through account.

    (a) During the 10-day period beginning on the effective date of the 
prohibition in Sec.  561.201(c), Sec.  561.203(c)(2), Sec.  
561.204(c)(2), Sec.  561.205(a), or Sec.  561.205(c) on the maintaining 
of a correspondent account or a payable-through account for a foreign 
financial institution whose name is added to the List of Foreign 
Financial Institutions Subject to Correspondent Account or Payable-
Through Account Sanctions (CAPTA List), which is maintained on the 
Office of Foreign Assets Control's website (www.treasury.gov/ofac), 
U.S. financial institutions that maintain correspondent accounts or 
payable-through accounts for the foreign financial institution are 
authorized to:
* * * * *

Subpart H--Procedures

0
9. Revise Sec.  561.802 to read as follows:


Sec.  561.802  Delegation of certain authorities of the Secretary of 
the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to subsections 104(c), (d), (h), or (i), or section 104A of 
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010 (Pub. L. 111-195) (22 U.S.C. 8501-8551), as amended by the Iran 
Threat Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-158) 
(22 U.S.C. 8701-8795), pursuant to Executive Order 13553 of September 
28, 2010 (75 FR 60567, October 1, 2010), Executive Order 13599 of 
February 5, 2012 (77 FR 6659, February 8, 2012), Executive Order 13846 
of August 6, 2018 (83 FR 38939, August 7, 2018), Executive Order 13871 
of May 8, 2019 (84 FR 20761, May 10, 2019), or any further Executive 
order relating to the national emergency declared in Executive Order 
12957 of March 15, 1995, and any action of the Secretary of the 
Treasury described in this part, may be taken by the Director of the 
Office of Foreign Assets Control or by any other person to whom the 
Secretary of the Treasury has delegated authority so to act.

PART 562--IRANIAN SECTOR AND HUMAN RIGHTS ABUSES SANCTIONS 
REGULATIONS

0
10. Revise the heading of Part 562 to read as set forth above:

0
11. The authority citation for part 562 is revised 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 (50 U.S.C. 1705 
note); Pub. L. 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); E.O. 
12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 13553, 75 FR 
60567, October 1, 2010; E.O. 13871, 84 FR 20761, May 10, 2019.

[[Page 38549]]

Subpart B-Prohibitions

0
12. Revise Sec.  562.201 to read as follows:


Sec.  562.201  Prohibited transactions.

    (a) All transactions prohibited pursuant to Executive Order 13553 
are also prohibited pursuant to this part.
    (b) All transactions prohibited pursuant to sections 1 and 6 of 
Executive Order 13871 are also prohibited pursuant to this part.

    Note 1 to paragraph (b):  Section 2 of Executive Order 13871 is 
implemented in section 561.205 of the Iranian Financial Sanctions 
Regulations, 31 CFR part 561.


    Note 1 to Sec.  562.201:  The names of persons listed in or 
designated pursuant to Executive Order 13553, whose property and 
interests in property therefore are blocked pursuant to this 
section, are published in the Federal Register and incorporated into 
the Office of Foreign Assets Control's Specially Designated 
Nationals and Blocked Persons List (``SDN List'') with the 
identifier ``[IRAN-HR].'' The names of persons designated pursuant 
to section 1 of Executive Order 13871, whose property and interests 
in property therefore are blocked pursuant to this section, are 
published in the Federal Register and incorporated into the SDN List 
with the identifier ``[IRAN-EO13871].'' The SDN List is accessible 
through the following page on the Office of Foreign Assets Control's 
website: https://www.treasury.gov/sdn. Additional information 
pertaining to the SDN List can be found in appendix A to this 
chapter. See Sec.  562.406 concerning entities that may not be 
listed on the SDN List but whose property and interests in property 
are nevertheless blocked pursuant to this section.


    Note 2 to Sec.  562.201:  The International Emergency Economic 
Powers Act (50 U.S.C. 1701-1706), in Section 203 (50 U.S.C. 1702), 
authorizes the blocking of property and interests in property of a 
person during the pendency of an investigation. The names of persons 
whose property and interests in property are blocked pending 
investigation pursuant to Executive Order 13553 also are published 
in the Federal Register and incorporated into the SDN List with the 
identifier ``[BPI-IRAN-HR].'' The names of persons whose property 
and interests in property are blocked pending investigation pursuant 
to Executive Order 13871 also are published in the Federal Register 
and incorporated into the SDN List with the identifier ``[BPI-IRAN-
EO13871].''


    Note 3 to Sec.  562.201:  Sections 501.806 and 501.807 of this 
chapter describe the procedures to be followed by persons seeking, 
respectively, the unblocking of funds that they believe were blocked 
due to mistaken identity, or administrative reconsideration of their 
status as persons whose property and interests in property are 
blocked pursuant to this section.

Subpart C--General Definitions

0
13. Revise Sec.  562.302 to read as follows:


Sec.  562.302  Effective date.

    (a) The term effective date refers to the effective date of the 
applicable prohibitions and directives contained in this part as 
follows:
    (1) With respect to a person listed in the Annex to Executive Order 
13553, 12:01 a.m. eastern daylight time, September 29, 2010;
    (2) With respect to a person whose property and interests in 
property are otherwise blocked pursuant to Executive Order 13553, the 
earlier of the date of actual or constructive notice that such person's 
property and interests in property are blocked; and
    (3) With respect to a person whose property and interests in 
property are blocked pursuant to Executive Order 13871, the earlier of 
the date of actual or constructive notice that such person's property 
and interests in property are blocked.
    (b) For the purposes of this section, constructive notice is the 
date that a notice of the blocking of the relevant person's property 
and interests in property is published in the Federal Register.

0
14. Add Sec.  562.312 through Sec.  562.318 to read as follows:
Sec.
* * * * *
562.312 Aluminum, Aluminum products.
562.313 Aluminum sector of Iran.
562.314 Copper, Copper products.
562.315 Copper sector of Iran.
562.316 Iron, Iron products, Steel, Steel products.
562.317 Iron sector of Iran.
562.318 Steel sector of Iran.
* * * * *


Sec.  562.312  Aluminum, Aluminum products.

    The terms aluminum and aluminum products mean any raw, semi-
fabricated, fabricated, or finished form of aluminum or aluminum alloy 
of all grades, sizes, and thicknesses, including in the following 
forms: Ores and concentrates (e.g., bauxite and alumina); unwrought 
aluminum including ingots, slabs, and billets; powders and flakes; 
wrought aluminum including bars, rods, profiles, plates, sheets, strip, 
foil, tubes, and pipes; tube or pipe fittings; reservoirs, tanks, vats, 
and similar containers; wire, stranded wire, ropes, cables, and plaited 
band; castings, stampings, and forgings; waste and scrap, including 
slag, and any aluminum and aluminum products produced from the melting 
or recycling of aluminum scrap.


Sec.  562.313  Aluminum sector of Iran.

    The term aluminum sector of Iran means the mining, refining, 
processing, or manufacturing of aluminum or aluminum products in Iran.


Sec.  562.314  Copper, Copper products.

    The terms copper and copper products mean any raw, semi-fabricated, 
fabricated, or finished form of copper or copper alloy of all grades, 
sizes, and thicknesses, including in the following forms: Ores and 
concentrates; copper mattes, cement copper (precipitated copper); 
refined, unrefined, wrought, or unwrought copper; billets; cathodes; 
bars, rods, profiles, plates, sheets, strips, foil, tubes, and pipes; 
tube and pipe fittings; powders and flakes; reservoirs, tanks, vats, 
and similar containers; wire, stranded wire, ropes, cables, and plaited 
band; castings, stampings, and forgings; and waste and scrap, including 
slag.


Sec.  562.315  Copper sector of Iran.

    The term copper sector of Iran means the mining, refining, 
processing, or manufacturing of copper or copper products in Iran.


Sec.  562.316  Iron, Iron products, Steel, Steel products.

    The terms iron, iron products, steel, and steel products mean any 
raw, semi-fabricated, fabricated, or finished form of iron, iron alloy, 
alloy steel, non-alloy steel, ferroalloys, pig iron, and spiegeleisen 
of all grades, sizes, and thicknesses, whether or not clad, plated, or 
coated, including in the following forms: Iron ores and concentrates, 
including roasted iron pyrites; pigs and blocks; ferrous products 
obtained by direct reduction of iron ore and other spongy ferrous 
products, in lumps or pellets; granules and powders; ingots, blooms 
billets, slabs, and beam blanks; flat-rolled products (plates, sheets, 
strips, and foils) either cut-to-length or in coils; bars and rods; 
structural profiles (beams, channels, angles, and other shapes); sheet 
piling; railway or tramway track construction materials; tubes, pipes, 
and hollow profiles; tube or pipe fittings; reservoirs, tanks, vats, 
and similar containers; wire, stranded wire, ropes, cables, and plaited 
band; castings, stampings, and forgings; and ferrous waste and scrap, 
including slag.


Sec.  562.317  Iron sector of Iran.

    The term iron sector of Iran means the mining, refining, 
processing, or manufacturing of iron or iron products in Iran.


Sec.  562.318  Steel sector of Iran.

    The term steel sector of Iran means the iron-ore smelting, ferrous-
scrap melting, refining, processing, or

[[Page 38550]]

manufacturing of steel or steel products in Iran.

Subpart D--Interpretations

0
15. Add Sec.  562.407 to read as follows:


Sec.  562.407  Significant transaction or transactions.

    In determining, for purposes of section 1(a)(ii) and 1(a)(iii) of 
Executive Order 13871, whether a transaction is significant, the 
Secretary of the Treasury may consider the totality of the facts and 
circumstances. As a general matter, the Secretary may consider some or 
all of the following factors:
    (a) Size, number, and frequency. The size, number, and frequency of 
transactions performed, over a period of time, including whether the 
transactions are increasing or decreasing over time and the rate of 
increase or decrease.
    (b) Nature. The nature of the transaction(s), or the goods or 
services for sale, supply, or transfer, including the type, complexity, 
and commercial purpose of the transaction(s), or the goods or services 
for sale, supply, or transfer.
    (c) Level of Awareness; Pattern of Conduct. (1) Whether the 
transaction(s) is performed with the involvement or approval of 
management or only by clerical personnel; and
    (2) Whether the transaction(s) is part of a pattern of conduct or 
the result of a business development strategy.
    (d) Nexus. The proximity between the person that engaged in the 
transaction(s) and the activity described in sections 1(a)(ii) and 
(iii) of Executive Order 13871.
    (e) Impact. The impact of the transaction(s) on the objectives of 
Executive Order 13871, including the economic or other benefit 
conferred or attempted to be conferred on Iran or the iron, steel, 
aluminum, and copper sectors of Iran.
    (f) Deceptive practices. Whether the transaction(s) involves an 
attempt to obscure or conceal the actual parties or true nature of the 
transaction(s), or to evade sanctions.
    (g) Other relevant factors. Such other factors that the Secretary 
deems relevant on a case-by-case basis in determining the significance 
of a transaction(s) or the sale, supply, or transfer of goods or 
services.

Subpart H--Procedures

0
16. Revise Sec.  562.802 to read as follows:


Sec.  562.802  Delegation of certain authorities of the Secretary of 
the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to Executive Order 13553 of September 28, 2010 (75 FR 60567, 
October 1, 2010), Executive Order 13871 of May 8, 2019 (84 FR 20761, 
May 10, 2019) and any further Executive orders relating to the national 
emergency declared in Executive Order 12957 of March 17, 1995, may be 
taken by the Director of Office of Foreign Assets Control or by any 
other person to whom the Secretary of the Treasury has delegated 
authority so to act.

0
17. Add appendix B to part 562 to read as follows:

Appendix B to Part 562--Executive Order 13871 of May 8, 2019

Executive Order 13871 of May 8, 2019

Imposing Sanctions With Respect to the Iron, Steel, Aluminum, and 
Copper Sectors of Iran

    By the authority vested in me as President by the Constitution 
and the laws of the United States of America, including the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
(IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), 
section 212(f) of the Immigration and Nationality Act of 1952 (8 
U.S.C. 1182(f)), and section 301 of title 3, United States Code,
    I, DONALD J. TRUMP, President of the United States of America, 
find that: It remains the policy of the United States to deny Iran 
all paths to both a nuclear weapon and intercontinental ballistic 
missiles, and to counter the totality of Iran's malign influence in 
the Middle East. It is also the policy of the United States to deny 
the Iranian government revenue, including revenue derived from the 
export of products from Iran's iron, steel, aluminum, and copper 
sectors, that may be used to provide funding and support for the 
proliferation of weapons of mass destruction, terrorist groups and 
networks, campaigns of regional aggression, and military expansion.
    In light of these findings and in order to take further steps 
with respect to the national emergency declared in Executive Order 
12957 of March 15, 1995, and to supplement the authorities provided 
in the Iran Freedom and Counter-Proliferation Act of 2012 (subtitle 
D of title XII of Public Law 112-239), I hereby order:
    Section 1. (a) All property and interests in property that are 
in the United States, that hereafter come within the United States, 
or that are or hereafter come within the possession or control of 
any United States person of the following persons are blocked and 
may not be transferred, paid, exported, withdrawn, or otherwise 
dealt in: any person determined by the Secretary of the Treasury, in 
consultation with the Secretary of State:
    (i) To be operating in the iron, steel, aluminum, or copper 
sector of Iran, or to be a person that owns, controls, or operates 
an entity that is part of the iron, steel, aluminum, or copper 
sector of Iran;
    (ii) to have knowingly engaged, on or after the date of this 
order, in a significant transaction for the sale, supply, or 
transfer to Iran of significant goods or services used in connection 
with the iron, steel, aluminum, or copper sectors of Iran;
    (iii) to have knowingly engaged, on or after the date of this 
order, in a significant transaction for the purchase, acquisition, 
sale, transport, or marketing of iron, iron products, aluminum, 
aluminum products, steel, steel products, copper, or copper products 
from Iran;
    (iv) to have materially assisted, sponsored, or provided 
financial, material, or technological support for, or goods or 
services in support of any person whose property and interests in 
property are blocked pursuant to this section; or
    (v) to be owned or controlled by, or to have acted or purported 
to act for or on behalf of, directly or indirectly, any person whose 
property and interests in property are blocked pursuant to this 
section.
    (b) The prohibitions in this section apply except to the extent 
provided by statutes, or in regulations, orders, directives, or 
licenses that may be issued pursuant to this order, and 
notwithstanding any contract entered into or any license or permit 
granted before the date of this order.
    Sec. 2. (a) The Secretary of the Treasury, in consultation with 
the Secretary of State, is hereby authorized to impose on a foreign 
financial institution the sanctions described in subsection (b) of 
this section upon determining that the foreign financial institution 
has, on or after the date of this order, knowingly conducted or 
facilitated any significant financial transaction:
    (i) For the sale, supply, or transfer to Iran of significant 
goods or services used in connection with the iron, steel, aluminum, 
or copper sectors of Iran;
    (ii) for the purchase, acquisition, sale, transport, or 
marketing of iron, iron products, aluminum, aluminum products, 
steel, steel products, copper, or copper products from Iran; or
    (iii) for or on behalf of any person whose property and 
interests in property are blocked pursuant to this order.
    (b) With respect to any foreign financial institution determined 
by the Secretary of the Treasury in accordance with this section to 
meet any of the criteria set forth in subsection (a)(i) through 
(a)(iii) of this section, the Secretary of the Treasury may prohibit 
the opening, and prohibit or impose strict conditions on 
maintaining, in the United States of a correspondent account or 
payable-through account by such foreign financial institution.
    (c) The prohibitions in subsection (b) of this section apply 
except to the extent provided by statutes, or in regulations, 
orders, directives, or licenses that may be issued pursuant to this 
order, and notwithstanding any contract entered into or any license 
or permit granted before the date of this order.
    Sec. 3. I hereby determine that the making of donations of the 
types of articles specified in section 203(b)(2) of IEEPA (50 U.S.C. 
1702(b)(2)) by, to, or for the benefit of any person whose property 
and interests in property are blocked pursuant to this order would 
seriously impair my ability to deal with the national emergency 
declared in Executive Order 12957, and I hereby prohibit such 
donations as provided by this section.
    Sec. 4. The prohibitions in section 1 of this order include:

[[Page 38551]]

    (a) The making of any contribution or provision of funds, goods, 
or services by, to, or for the benefit of any person whose property 
and interests in property are blocked pursuant to subsection (a) of 
that section; and
    (b) the receipt of any contribution or provision of funds, 
goods, or services from any such person.
    Sec. 5. The unrestricted immigrant and nonimmigrant entry into 
the United States of aliens determined to meet one or more of the 
criteria in subsection 1(a) of this order would be detrimental to 
the interests of the United States, and the entry of such persons 
into the United States, as immigrants or nonimmigrants, is therefore 
hereby suspended. Such persons shall be treated as persons covered 
by section 1 of Proclamation 8693 of July 24, 2011 (Suspension of 
Entry of Aliens Subject to United Nations Security Council Travel 
Bans and International Emergency Economic Powers Act Sanctions).
    Sec. 6. (a) Any transaction that evades or avoids, has the 
purpose of evading or avoiding, causes a violation of, or attempts 
to violate any of the prohibitions set forth in this order is 
prohibited.
    (b) Any conspiracy formed to violate any of the prohibitions set 
forth in this order is prohibited.
    Sec. 7. Nothing in this order shall apply to transactions for 
the conduct of the official business of the Federal Government or 
the United Nations (including its specialized agencies, programmes, 
funds, and related organizations) by employees, grantees, or 
contractors thereof.
    Sec. 8. For the purposes of this order:
    (a) The term ``entity'' means a partnership, association, trust, 
joint venture, corporation, group, subgroup, or other organization;
    (b) the term ``foreign financial institution'' means any foreign 
entity that is engaged in the business of accepting deposits, 
making, granting, transferring, holding, or brokering loans or 
credits, or purchasing or selling foreign exchange, securities, 
commodity futures or options, or procuring purchasers and sellers 
thereof, as principal or agent. It includes, but is not limited to, 
depository institutions, banks, savings banks, money service 
businesses, trust companies, securities brokers and dealers, 
commodity futures and options brokers and dealers, forward contract 
and foreign exchange merchants, securities and commodities 
exchanges, clearing corporations, investment companies, employee 
benefit plans, dealers in precious metals, stones, or jewels, and 
holding companies, affiliates, or subsidiaries of any of the 
foregoing. The term does not include the international financial 
institutions identified in 22 U.S.C. 262r(c)(2), the International 
Fund for Agricultural Development, the North American Development 
Bank, or any other international financial institution so notified 
by the Secretary of the Treasury;
    (c) the term ``Government of Iran'' includes the Government of 
Iran, any political subdivision, agency, or instrumentality thereof, 
including the Central Bank of Iran, and any person owned or 
controlled by, or acting for or on behalf of, the Government of 
Iran;
    (d) the term ``Iran'' means the Government of Iran and the 
territory of Iran and any other territory or marine area, including 
the exclusive economic zone and continental shelf, over which the 
Government of Iran claims sovereignty, sovereign rights, or 
jurisdiction, provided that the Government of Iran exercises partial 
or total de facto control over the area or derives a benefit from 
economic activity in the area pursuant to international 
arrangements;
    (e) 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;
    (f) the term ``person'' means an individual or entity; and
    (g) the term ``United States person'' means any United States 
citizen, permanent resident alien, entity organized under the laws 
of the United States or any jurisdiction within the United States 
(including foreign branches), or any person in the United States.
    Sec. 9. For those persons whose property and interests in 
property are blocked pursuant to this order who might have a 
constitutional presence in the United States, I find that because of 
the ability to transfer funds or other assets instantaneously, prior 
notice to such persons of measures to be taken pursuant to this 
order would render those measures ineffectual. I therefore determine 
that for these measures to be effective in addressing the national 
emergency declared in Executive Order 12957, there need be no prior 
notice of a listing or determination made pursuant to section 1 of 
this order.
    Sec. 10. The Secretary of the Treasury, in consultation with the 
Secretary of State, is hereby authorized to take such actions, 
including adopting rules and regulations, and to employ all powers 
granted to the President by IEEPA as may be necessary to implement 
this order. The Secretary of the Treasury may, consistent with 
applicable law, redelegate any of these functions within the 
Department of the Treasury. All agencies shall take all appropriate 
measures within their authority to implement this order.
    Sec. 11. (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
    (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.
    Sec. 12. The measures taken pursuant to this order are in 
response to actions of the Government of Iran occurring after the 
conclusion of the 1981 Algiers Accords, and are intended solely as a 
response to those later actions.

Donald J. Trump
THE WHITE HOUSE,
May 8, 2019.

    Dated: August 1, 2019.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2019-16842 Filed 8-6-19; 8:45 am]
BILLING CODE 4810-AL-P