Nicaragua Sanctions Regulations, 46440-46448 [2019-19049]
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Federal Register / Vol. 84, No. 171 / Wednesday, September 4, 2019 / Rules and Regulations
VIII. Effective Date
15. The Commission is issuing this
rule as a final rule without a period for
public comment. Under 5 U.S.C.
553(b)(3)(A), notice-and-comment
rulemaking procedures are unnecessary
for ‘‘rules of agency organization,
procedure, or practice.’’ This rule is
therefore exempt from notice-andcomment rulemaking procedures,
because it concerns the Commission’s
mail procedures and practices. In
particular, the rule is directed at
improving the safety of the Commission,
its employees, and the public, not
toward a determination of the rights or
interests of affected parties. The rule
will not significantly affect regulated
entities or the general public.
16. This rule is effective November 4,
2019.
List of subjects in 18 CFR Part 385
Administrative practice and
procedure, Electric power. Penalties,
Pipelines, Reporting and recordkeeping
requirements.
By the Commission.
Issued: August 28, 2019.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the
Commission amends part 385, chapter I,
title 18, Code of Federal Regulations, as
follows:
PART 385—RULES OF PRACTICE AND
PROCEDURE
1. The authority citation for part 385
continues to read as follows:
■
Authority: 5 U.S.C. 551–557; 15 U.S.C.
717–717w, 3301–3432; 16 U.S.C. 791a–825v,
2601–2645; 28 U.S.C. 2461; 31 U.S.C 3701,
9701; 42 U.S.C. 7101–7352, 16441, 16451–
16463; 49 U.S.C. 60502; 49 App. U.S.C. 1–85
(1988); 28 U.S.C. 2461 note (1990); 28 U.S.C.
2461 note (2015).
2. In § 385.2001, the section heading
and paragraphs (a)(1)(i) and (ii) are
revised to read as follows:
■
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§ 385.2001
(a) * * *
(1) * * *
(i) Mailing the document through the
United States Postal Service to the
Secretary, Federal Energy Regulatory
Commission, 888 First Street NE,
Washington, DC 20426;
(ii) Delivering the document by any
source other than United States Postal
Service to the Federal Energy Regulatory
Commission, 12225 Wilkins Avenue,
Rockville, Maryland 20852; or
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*
BILLING CODE 6717–01–P
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Internal Revenue Service
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation
for part 301 continues to read in part as
follows:
■
26 CFR Part 301
Authority: 26 U.S.C. 7805.
[TD 9839]
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Par. 2. Section 301.6223–1 is
amended by revising the fifth sentence
of paragraph (e)(1) to read as follows:
RIN 1545–BN33
■
Partnership Representative Under the
Centralized Partnership Audit Regime
and Election To Apply the Centralized
Partnership Audit Regime; Correcting
Amendment
§ 301.6223–1
Internal Revenue Service (IRS),
Treasury.
AGENCY:
ACTION:
Correcting amendments.
This document contains
corrections to Treasury Decision 9839,
which was published in the Federal
Register for Thursday, August 9, 2018.
Treasury Decision 9839 contains final
regulations regarding the designation
and authority of the partnership
representative under the centralized
partnership audit regime, which was
enacted into law on November 2, 2015
by section 1101 of the Bipartisan Budget
Act of 2015 (BBA).
SUMMARY:
These regulations are effective
September 4, 2019 and applicable
August 9, 2018.
DATES:
FOR FURTHER INFORMATION CONTACT:
Partnership representative.
*
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(e) * * *
(1) * * * No later than 30 days after
the IRS receives a written notification of
revocation submitted at the time
described in paragraph (e)(2)(i) of this
section, the IRS will send written
confirmation of receipt of the written
notification to the partnership, the
revoked partnership representative or,
in the case of a revocation of only the
appointment of a designated individual,
to the revoked designated individual,
and to the newly designated partnership
representative. * * *
*
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*
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2019–19059 Filed 9–3–19; 8:45 am]
BILLING CODE 4830–01–P
Joy
E. Gerdy Zogby of the Office of
Associate Chief Counsel (Procedure and
Administration), (202) 317–4927 (not
toll-free numbers).
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
SUPPLEMENTARY INFORMATION:
31 CFR Part 582
Background
Nicaragua Sanctions Regulations
The final regulations (TD 9839) that
are the subject of this correction are
under section 1101 of the Internal
Revenue Code.
AGENCY:
As published August 9, 2018 (83 FR
39331), the final regulation and removal
of temporary regulations (TD 9839; FR
Doc. 2018–17002) contained errors that
may prove misleading and therefore
need to be corrected.
List of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
Correction of Publication
Accordingly, 26 CFR part 301 is
corrected by making the following
correcting amendments:
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Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is adding regulations to
implement Executive Order 13851 of
November 27, 2018 (‘‘Blocking Property
of Certain Persons Contributing to the
Situation in Nicaragua’’). OFAC intends
to supplement these regulations with a
more comprehensive set of regulations,
which may include additional
interpretive and definitional guidance,
general licenses, and statements of
licensing policy.
DATES: Effective: September 4, 2019.
FOR FURTHER INFORMATION CONTACT:
OFAC: Assistant Director for Licensing,
tel.: 202–622–2480; Assistant Director
for Regulatory Affairs, tel.: 202–622–
4855; or Assistant Director for Sanctions
SUMMARY:
Need for Correction
Filings and Other Submissions.
[FR Doc. 2019–18950 Filed 9–3–19; 8:45 am]
DEPARTMENT OF THE TREASURY
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Federal Register / Vol. 84, No. 171 / Wednesday, September 4, 2019 / Rules and Regulations
Compliance & Evaluation, tel.: 202–622–
2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional
information concerning OFAC are
available on OFAC’s website
(www.treasury.gov/ofac).
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Background
On November 27, 2018, the President,
invoking the authority of, inter alia, the
International Emergency Economic
Powers Act (50 U.S.C. 1701–1706)
(IEEPA), issued Executive Order 13851
(83 FR 61505, November 29, 2018) (E.O.
13851).
In E.O. 13851, the President
determined that the situation in
Nicaragua, including the violent
response by the Government of
Nicaragua to the protests that began on
April 18, 2018, and the Ortega regime’s
systematic dismantling and
undermining of democratic institutions
and the rule of law, its use of
indiscriminate violence and repressive
tactics against civilians, and its
corruption leading to the destabilization
of Nicaragua’s economy, constitute an
unusual and extraordinary threat to the
national security and foreign policy of
the United States, and declared a
national emergency to deal with that
threat.
OFAC is issuing the Nicaragua
Sanctions Regulations, 31 CFR part 582
(the ‘‘Regulations’’), to implement E.O.
13851, pursuant to authorities delegated
to the Secretary of the Treasury in E.O.
13851. A copy of E.O. 13851 appears in
appendix A to this part.
The Regulations are being published
in abbreviated form at this time for the
purpose of providing immediate
guidance to the public. OFAC intends to
supplement this part 582 with a more
comprehensive set of regulations, which
may include additional interpretive and
definitional guidance, general licenses,
and statements of licensing policy. The
appendix to the Regulations will be
removed when OFAC supplements this
part with a more comprehensive set of
regulations.
Public Participation
Because the Regulations involve a
foreign affairs function, the provisions
of Executive Order 12866 and the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking, opportunity for public
participation, and delay in effective
date, as well as the provisions of
Executive Order 13771, are
inapplicable. Because no notice of
proposed rulemaking is required for this
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rule, the Regulatory Flexibility Act (5
U.S.C. 601–612) does not apply.
Paperwork Reduction Act
The collections of information related
to the Regulations are contained in 31
CFR part 501 (the ‘‘Reporting,
Procedures and Penalties Regulations’’).
Pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507), those
collections of information have been
approved by the Office of Management
and Budget under control number 1505–
0164. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid control number.
List of Subjects in 31 CFR Part 582
Administrative practice and
procedure, Banks, banking, Blocking of
assets, Nicaragua, Penalties, Reporting
and recordkeeping requirements,
Sanctions.
■ For the reasons set forth in the
preamble, the Department of the
Treasury’s Office of Foreign Assets
Control adds part 582 to 31 CFR chapter
V to read as follows:
PART 582—NICARAGUA SANCTIONS
REGULATIONS
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582.403 Termination and acquisition of an
interest in blocked property.
582.404 Transactions ordinarily incident to
a licensed transaction.
582.405 Setoffs prohibited.
582.406 Entities owned by one or more
persons whose property and interests in
property are blocked.
Subpart E—Licenses, Authorizations, and
Statements of Licensing Policy
582.501 General and specific licensing
procedures.
582.502 [Reserved]
582.503 Exclusion from licenses.
582.504 Payments and transfers to blocked
accounts in U.S. financial institutions.
582.505 Entries in certain accounts for
normal service charges.
582.506 Provision of certain legal services.
582.507 Payments for legal services from
funds originating outside the United
States.
582.508 Emergency medical services.
Subpart F—Reports
582.601 Records and reports.
Subpart G—Penalties and Findings of
Violation
582.701 Penalties and Findings of
Violation.
Subpart H—Procedures
582.801 Procedures.
582.802 Delegation of certain authorities of
the Secretary of the Treasury.
Subpart A—Relation of this Part to Other
Laws and Regulations
Sec.
582.101 Relation of this part to other laws
and regulations.
Subpart I—Paperwork Reduction Act
582.901 Paperwork Reduction Act notice.
Subpart B—Prohibitions
582.201 Prohibited transactions.
582.202 Effect of transfers violating the
provisions of this part.
582.203 Holding of funds in interestbearing accounts; investment and
reinvestment. 582.204 Expenses of
maintaining blocked tangible property;
liquidation of blocked property.
582.205 Exempt transactions.
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);
50 U.S.C. 1601–1651, 1701–1706; Pub. L.
101–410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110–96, 121 Stat. 1011 (50 U.S.C.
1705 note); E.O. 13851, 83 FR 61505,
November 29, 2018.
Subpart C—General Definitions
582.300 Applicability of definitions.
582.301 Blocked account; blocked property.
582.302 Effective date.
582.303 Entity.
582.304 Financial, material, or
technological support.
582.305 Information or informational
materials.
582.306 Interest.
582.307 Licenses; general and specific.
582.308 OFAC.
582.309 Person.
582.310 Property; property interest.
582.311 Transfer.
582.312 United States.
582.313 United States person; U.S. person.
582.314 U.S. financial institution.
Subpart D—Interpretations
582.401 [Reserved]
582.402 Effect of amendment.
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Appendix A to Part 582—Executive Order
13851 of November 27, 2018
Subpart A—Relation of This Part to
Other Laws and Regulations
§ 582.101 Relation of this part to other
laws and regulations.
This part is separate from, and
independent of, the other parts of this
chapter, with the exception of part 501
of this chapter, the recordkeeping and
reporting requirements and license
application and other procedures of
which apply to this part. Actions taken
pursuant to part 501 of this chapter with
respect to the prohibitions contained in
this part are considered actions taken
pursuant to this part. Differing foreign
policy and national security
circumstances may result in differing
interpretations of similar language
among the parts of this chapter. No
license or authorization contained in or
issued pursuant to those other parts
authorizes any transaction prohibited by
this part. No license or authorization
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contained in or issued pursuant to any
other provision of law or regulation
authorizes any transaction prohibited by
this part. No license or authorization
contained in or issued pursuant to this
part relieves the involved parties from
complying with any other applicable
laws or regulations.
Note 1 to § 582.101: This part has been
published in abbreviated form for the
purpose of providing immediate guidance to
the public. OFAC intends to supplement this
part with a more comprehensive set of
regulations, which may include additional
interpretive and definitional guidance,
general licenses, and statements of licensing
policy.
Subpart B—Prohibitions
§ 582.201
Prohibited transactions.
All transactions prohibited pursuant
to Executive Order 13851 of November
27, 2018 are also prohibited pursuant to
this part.
Note 1 to § 582.201: The names of persons
designated pursuant to Executive Order
13851, whose property and interests in
property therefore are blocked pursuant to
this section, are published in the Federal
Register and incorporated into OFAC’s
Specially Designated Nationals and Blocked
Persons List (SDN List) with the identifier
‘‘[NICARAGUA].’’ 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. See
§ 582.406 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 § 582.201: The International
Emergency Economic Powers Act (50 U.S.C.
1701–1706), in Section 203 (50 U.S.C. 1702),
authorizes the blocking of property and
interests in property of a person during the
pendency of an investigation. The names of
persons whose property and interests in
property are blocked pending investigation
pursuant to this section also are published in
the Federal Register and incorporated into
the SDN List with the identifier ‘‘[BPI–
NICARAGUA]’’.
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Note 3 to § 582.201: 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, and administrative
reconsideration of their status as persons
whose property and interests in property are
blocked pursuant to this section.
§ 582.202 Effect of transfers violating the
provisions of this part.
(a) Any transfer after the effective date
that is in violation of any provision of
this part or of any regulation, order,
directive, ruling, instruction, or license
issued pursuant to this part, and that
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involves any property or interest in
property blocked pursuant to § 582.201,
is null and void and shall not be the
basis for the assertion or recognition of
any interest in or right, remedy, power,
or privilege with respect to such
property or interest in property.
(b) No transfer before the effective
date shall be the basis for the assertion
or recognition of any right, remedy,
power, or privilege with respect to, or
any interest in, any property or interest
in property blocked pursuant to
§ 582.201, unless the person who holds
or maintains such property, prior to that
date, had written notice of the transfer
or by any written evidence had
recognized such transfer.
(c) Unless otherwise provided, a
license or other authorization issued by
OFAC before, during, or after a transfer
shall validate such transfer or make it
enforceable to the same extent that it
would be valid or enforceable but for
the provisions of this part and any
regulation, order, directive, ruling,
instruction, or license issued pursuant
to this part.
(d) Transfers of property that
otherwise would be null and void or
unenforceable by virtue of the
provisions of this section shall not be
deemed to be null and void or
unenforceable as to any person with
whom such property is or was held or
maintained (and as to such person only)
in cases in which such person is able to
establish to the satisfaction of OFAC
each of the following:
(1) Such transfer did not represent a
willful violation of the provisions of this
part by the person with whom such
property is or was held or maintained
(and as to such person only);
(2) The person with whom such
property is or was held or maintained
did not have reasonable cause to know
or suspect, in view of all the facts and
circumstances known or available to
such person, that such transfer required
a license or authorization issued
pursuant to this part and was not so
licensed or authorized, or, if a license or
authorization did purport to cover the
transfer, that such license or
authorization had been obtained by
misrepresentation of a third party or
withholding of material facts or was
otherwise fraudulently obtained; and
(3) The person with whom such
property is or was held or maintained
filed with OFAC a report setting forth in
full the circumstances relating to such
transfer promptly upon discovery that:
(i) Such transfer was in violation of
the provisions of this part or any
regulation, ruling, instruction, license,
or other directive or authorization
issued pursuant to this part;
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(ii) Such transfer was not licensed or
authorized by OFAC; or
(iii) If a license did purport to cover
the transfer, such license had been
obtained by misrepresentation of a third
party or withholding of material facts or
was otherwise fraudulently obtained.
(e) The filing of a report in accordance
with the provisions of paragraph (d)(3)
of this section shall not be deemed
evidence that the terms of paragraphs
(d)(1) and (2) of this section have been
satisfied.
(f) Unless licensed pursuant to this
part, any attachment, judgment, decree,
lien, execution, garnishment, or other
judicial process is null and void with
respect to any property or interest in
property blocked pursuant to § 582.201.
§ 582.203 Holding of funds in interestbearing accounts; investment and
reinvestment.
(a) Except as provided in paragraph
(e) or (f) of this section, or as otherwise
directed or authorized by OFAC, any
U.S. person holding funds, such as
currency, bank deposits, or liquidated
financial obligations, subject to
§ 582.201 shall hold or place such funds
in a blocked interest-bearing account
located in the United States.
(b)(1) For purposes of this section, the
term blocked interest-bearing account
means a blocked account:
(i) In a federally insured U.S. bank,
thrift institution, or credit union,
provided the funds are earning interest
at rates that are commercially
reasonable; or
(ii) With a broker or dealer registered
with the Securities and Exchange
Commission under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.), provided the funds are invested in
a money market fund or in U.S.
Treasury bills.
(2) Funds held or placed in a blocked
account pursuant to paragraph (a) of this
section may not be invested in
instruments the maturity of which
exceeds 180 days.
(c) For purposes of this section, a rate
is commercially reasonable if it is the
rate currently offered to other depositors
on deposits or instruments of
comparable size and maturity.
(d) For purposes of this section, if
interest is credited to a separate blocked
account or subaccount, the name of the
account party on each account must be
the same.
(e) Blocked funds held in instruments
the maturity of which exceeds 180 days
at the time the funds become subject to
§ 582.201 may continue to be held until
maturity in the original instrument,
provided any interest, earnings, or other
proceeds derived therefrom are paid
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into a blocked interest-bearing account
in accordance with paragraph (a) or (f)
of this section.
(f) Blocked funds held in accounts or
instruments outside the United States at
the time the funds become subject to
§ 582.201 may continue to be held in the
same type of accounts or instruments,
provided the funds earn interest at rates
that are commercially reasonable.
(g) This section does not create an
affirmative obligation for the holder of
blocked tangible property, such as real
or personal property, or of other blocked
property, such as debt or equity
securities, to sell or liquidate such
property. However, OFAC may issue
licenses permitting or directing such
sales or liquidation in appropriate cases.
(h) Funds subject to this section may
not be held, invested, or reinvested in
a manner that provides financial or
economic benefit or access to any
person whose property and interests in
property are blocked pursuant to
§ 582.201, nor may their holder
cooperate in or facilitate the pledging or
other attempted use as collateral of
blocked funds or other assets.
§ 582.204 Expenses of maintaining
blocked tangible property; liquidation of
blocked property.
(a) Except as otherwise authorized,
and notwithstanding the existence of
any rights or obligations conferred or
imposed by any international agreement
or contract entered into or any license
or permit granted prior to the effective
date, all expenses incident to the
maintenance of tangible property
blocked pursuant to § 582.201 shall be
the responsibility of the owners or
operators of such property, which
expenses shall not be met from blocked
funds.
(b) Property blocked pursuant to
§ 582.201 may, in the discretion of
OFAC, be sold or liquidated and the net
proceeds placed in a blocked interestbearing account in the name of the
owner of the property.
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§ 582.205
Exempt transactions.
(a) Personal communications. The
prohibitions contained in this part do
not apply to any postal, telegraphic,
telephonic, or other personal
communication that does not involve
the transfer of anything of value.
(b) Information or informational
materials. (1) The prohibitions
contained in this part do not apply to
the importation from any country and
the exportation to any country of any
information or informational materials,
as defined in § 582.305, whether
commercial or otherwise, regardless of
format or medium of transmission.
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(2) This section does not exempt from
regulation transactions related to
information or informational materials
not fully created and in existence at the
date of the transactions, or to the
substantive or artistic alteration or
enhancement of information or
informational materials, or to the
provision of marketing and business
consulting services. Such prohibited
transactions include payment of
advances for information or
informational materials not yet created
and completed (with the exception of
prepaid subscriptions for widely
circulated magazines and other
periodical publications); provision of
services to market, produce or coproduce, create, or assist in the creation
of information or informational
materials; and payment of royalties with
respect to income received for
enhancements or alterations made by
U.S. persons to such information or
informational materials.
(3) This section does not exempt
transactions incident to the exportation
of software subject to the Export
Administration Regulations, 15 CFR
parts 730 through 774, or to the
exportation of goods (including
software) or technology for use in the
transmission of any data, or to the
provision, sale, or leasing of capacity on
telecommunications transmission
facilities (such as satellite or terrestrial
network connectivity) for use in the
transmission of any data. The
exportation of such items or services
and the provision, sale, or leasing of
such capacity or facilities to a person
whose property and interests in
property are blocked pursuant to
§ 582.201 are prohibited.
(c) Travel. The prohibitions contained
in this part do not apply to transactions
ordinarily incident to travel to or from
any country, including importation or
exportation of accompanied baggage for
personal use, maintenance within any
country including payment of living
expenses and acquisition of goods or
services for personal use, and
arrangement or facilitation of such
travel including nonscheduled air, sea,
or land voyages.
Subpart C—General Definitions
§ 582.300
Applicability of definitions.
The definitions in this subpart apply
throughout the entire part.
§ 582.301
property.
Blocked account; blocked
The terms blocked account and
blocked property shall mean any
account or property subject to the
prohibitions in § 582.201 held in the
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name of a person whose property and
interests in property are blocked
pursuant to § 582.201, or in which such
person has an interest, and with respect
to which payments, transfers,
exportations, withdrawals, or other
dealings may not be made or effected
except pursuant to a license or other
authorization from OFAC expressly
authorizing such action.
Note 1 to § 582.301: See § 582.406
concerning the blocked status of property
and interests in property of an entity that is
directly or indirectly owned, whether
individually or in the aggregate, 50 percent
or more by one or more persons whose
property and interests in property are
blocked pursuant to § 582.201.
§ 582.302
Effective date.
(a) The term effective date refers to
the effective date of the applicable
prohibitions and directives contained in
this part, and with respect to a person
whose property and interests in
property are otherwise blocked pursuant
to § 582.201, 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.
§ 582.303
Entity.
The term entity means a partnership,
association, trust, joint venture,
corporation, group, subgroup, or other
organization.
§ 582.304 Financial, material, or
technological support.
The term financial, material, or
technological support means any
property, tangible or intangible,
including currency, financial
instruments, securities, or any other
transmission of value; weapons or
related materiel; chemical or biological
agents; explosives; false documentation
or identification; communications
equipment; computers; electronic or
other devices or equipment;
technologies; lodging; safe houses;
facilities; vehicles or other means of
transportation; or goods.
‘‘Technologies’’ as used in this
definition means specific information
necessary for the development,
production, or use of a product,
including related technical data such as
blueprints, plans, diagrams, models,
formulae, tables, engineering designs
and specifications, manuals, or other
recorded instructions.
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§ 582.305 Information or informational
materials.
(a)(1) The term information or
informational materials includes
publications, films, posters, phonograph
records, photographs, microfilms,
microfiche, tapes, compact disks, CD
ROMs, artworks, and news wire feeds.
(2) To be considered information or
informational materials, artworks must
be classified under heading 9701, 9702,
or 9703 of the Harmonized Tariff
Schedule of the United States.
(b) The term information or
informational materials, with respect to
exports, does not include items:
(1) That were, as of April 30, 1994, or
that thereafter become, controlled for
export pursuant to section 5 of the
Export Administration Act of 1979, 50
U.S.C. App. 2401–2420 (1979) (EAA), or
section 6 of the EAA to the extent that
such controls promote the
nonproliferation or antiterrorism
policies of the United States; or
(2) With respect to which acts are
prohibited by 18 U.S.C. chapter 37.
§ 582.306
Interest.
Except as otherwise provided in this
part, the term interest, when used with
respect to property (e.g., ‘‘an interest in
property’’), means an interest of any
nature whatsoever, direct or indirect.
§ 582.307
Licenses; general and specific.
(a) Except as otherwise provided in
this part, the term license means any
license or authorization contained in or
issued pursuant to this part.
(b) The term general license means
any license or authorization the terms of
which are set forth in subpart E of this
part or made available on OFAC’s
website: www.treasury.gov/ofac.
(c) The term specific license means
any license or authorization issued
pursuant to this part but not set forth in
subpart E of this part or made available
on OFAC’s website: www.treasury.gov/
ofac.
Note 1 to § 582.307: See § 501.801 of this
chapter on licensing procedures.
§ 582.308
OFAC.
The term OFAC means the
Department of the Treasury’s Office of
Foreign Assets Control.
§ 582.309
Person.
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The term person means an individual
or entity.
§ 582.310
Property; property interest.
The terms property and property
interest include money, checks, drafts,
bullion, bank deposits, savings
accounts, debts, indebtedness,
obligations, notes, guarantees,
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debentures, stocks, bonds, coupons, any
other financial instruments, bankers
acceptances, mortgages, pledges, liens
or other rights in the nature of security,
warehouse receipts, bills of lading, trust
receipts, bills of sale, any other
evidences of title, ownership, or
indebtedness, letters of credit and any
documents relating to any rights or
obligations thereunder, powers of
attorney, goods, wares, merchandise,
chattels, stocks on hand, ships, goods on
ships, real estate mortgages, deeds of
trust, vendors’ sales agreements, land
contracts, leaseholds, ground rents, real
estate and any other interest therein,
options, negotiable instruments, trade
acceptances, royalties, book accounts,
accounts payable, judgments, patents,
trademarks or copyrights, insurance
policies, safe deposit boxes and their
contents, annuities, pooling agreements,
services of any nature whatsoever,
contracts of any nature whatsoever, and
any other property, real, personal, or
mixed, tangible or intangible, or interest
or interests therein, present, future, or
contingent.
§ 582.311
Transfer.
The term transfer means any actual or
purported act or transaction, whether or
not evidenced by writing, and whether
or not done or performed within the
United States, the purpose, intent, or
effect of which is to create, surrender,
release, convey, transfer, or alter,
directly or indirectly, any right, remedy,
power, privilege, or interest with respect
to any property. Without limitation on
the foregoing, it shall include the
making, execution, or delivery of any
assignment, power, conveyance, check,
declaration, deed, deed of trust, power
of attorney, power of appointment, bill
of sale, mortgage, receipt, agreement,
contract, certificate, gift, sale, affidavit,
or statement; the making of any
payment; the setting off of any
obligation or credit; the appointment of
any agent, trustee, or fiduciary; the
creation or transfer of any lien; the
issuance, docketing, filing, or levy of or
under any judgment, decree,
attachment, injunction, execution, or
other judicial or administrative process
or order, or the service of any
garnishment; the acquisition of any
interest of any nature whatsoever by
reason of a judgment or decree of any
foreign country; the fulfillment of any
condition; the exercise of any power of
appointment, power of attorney, or
other power; or the acquisition,
disposition, transportation, importation,
exportation, or withdrawal of any
security.
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§ 582.312
United States.
The term United States means the
United States, its territories and
possessions, and all areas under the
jurisdiction or authority thereof.
§ 582.313
person.
United States person; U.S.
The term United States person or U.S.
person means any United States citizen,
permanent resident alien, entity
organized under the laws of the United
States or any jurisdiction within the
United States (including foreign
branches), or any person in the United
States.
§ 582.314
U.S. financial institution.
The term U.S. financial institution
means any U.S. entity (including its
foreign branches) that is engaged in the
business of accepting deposits, making,
granting, transferring, holding, or
brokering loans or other extensions of
credit, or purchasing or selling foreign
exchange, securities, commodity futures
or options, or procuring purchasers and
sellers thereof, as principal or agent. It
includes depository institutions, banks,
savings banks, trust companies,
securities brokers and dealers, futures
and options brokers and dealers,
forward contract and foreign exchange
merchants, securities and commodities
exchanges, clearing corporations,
investment companies, employee
benefit plans, and U.S. holding
companies, U.S. affiliates, or U.S.
subsidiaries of any of the foregoing. This
term includes those branches, offices,
and agencies of foreign financial
institutions that are located in the
United States, but not such institutions’
foreign branches, offices, or agencies.
Subpart D—Interpretations
§ 582.401
[Reserved]
§ 582.402
Effect of amendment.
Unless otherwise specifically
provided, any amendment,
modification, or revocation of any
provision in or appendix to this part or
chapter or of any order, regulation,
ruling, instruction, or license issued by
OFAC does not affect any act done or
omitted, or any civil or criminal
proceeding commenced or pending,
prior to such amendment, modification,
or revocation. All penalties, forfeitures,
and liabilities under any such order,
regulation, ruling, instruction, or license
continue and may be enforced as if such
amendment, modification, or revocation
had not been made.
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§ 582.403 Termination and acquisition of
an interest in blocked property.
(a) Whenever a transaction licensed or
authorized by or pursuant to this part
results in the transfer of property
(including any property interest) away
from a person whose property and
interests in property are blocked
pursuant to § 582.201, such property
shall no longer be deemed to be
property blocked pursuant to § 582.201,
unless there exists in the property
another interest that is blocked pursuant
to § 582.201, the transfer of which has
not been effected pursuant to license or
other authorization.
(b) Unless otherwise specifically
provided in a license or authorization
issued pursuant to this part, if property
(including any property interest) is
transferred or attempted to be
transferred to a person whose property
and interests in property are blocked
pursuant to § 582.201, such property
shall be deemed to be property in which
such person has an interest and
therefore blocked.
§ 582.404 Transactions ordinarily incident
to a licensed transaction.
Any transaction ordinarily incident to
a licensed transaction and necessary to
give effect thereto is also authorized,
except:
(a) An ordinarily incident transaction,
not explicitly authorized within the
terms of the license, by or with a person
whose property and interests in
property are blocked pursuant to
§ 582.201; or
(b) An ordinarily incident transaction,
not explicitly authorized within the
terms of the license, involving a debit to
a blocked account or a transfer of
blocked property.
§ 582.405
Setoffs prohibited.
A setoff against blocked property
(including a blocked account), whether
by a U.S. bank or other U.S. person, is
a prohibited transfer under § 582.201 if
effected after the effective date.
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§ 582.406 Entities owned by one or more
persons whose property and interests in
property are blocked.
Persons whose property and interests
in property are blocked pursuant to
§ 582.201 have an interest in all
property and interests in property of an
entity in which such persons directly or
indirectly own, whether individually or
in the aggregate, a 50 percent or greater
interest. The property and interests in
property of such an entity, therefore, are
blocked, and such an entity is a person
whose property and interests in
property are blocked pursuant to
§ 582.201, regardless of whether the
name of the entity is incorporated into
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OFAC’s Specially Designated Nationals
and Blocked Persons List (SDN List).
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
§ 582.501 General and specific licensing
procedures.
For provisions relating to licensing
procedures, see part 501, subpart E, of
this chapter. Licensing actions taken
pursuant to part 501 of this chapter with
respect to the prohibitions contained in
this part are considered actions taken
pursuant to this part. General licenses
and statements of licensing policy
relating to this part also may be
available through the Nicaragua
sanctions page on OFAC’s website:
www.treasury.gov/ofac.
§ 582.502
[Reserved]
§ 582.503
Exclusion from licenses.
OFAC reserves the right to exclude
any person, property, transaction, or
class thereof from the operation of any
license or from the privileges conferred
by any license. OFAC also reserves the
right to restrict the applicability of any
license to particular persons, property,
transactions, or classes thereof. Such
actions are binding upon actual or
constructive notice of the exclusions or
restrictions.
§ 582.504 Payments and transfers to
blocked accounts in U.S. financial
institutions.
Any payment of funds or transfer of
credit in which a person whose property
and interests in property are blocked
pursuant to § 582.201 has any interest
that comes within the possession or
control of a U.S. financial institution
must be blocked in an account on the
books of that financial institution. A
transfer of funds or credit by a U.S.
financial institution between blocked
accounts in its branches or offices is
authorized, provided that no transfer is
made from an account within the
United States to an account held outside
the United States, and further provided
that a transfer from a blocked account
may be made only to another blocked
account held in the same name.
Note 1 to § 582.504: See § 501.603 of this
chapter for mandatory reporting
requirements regarding financial transfers.
See also § 582.203 concerning the obligation
to hold blocked funds in interest-bearing
accounts.
§ 582.505 Entries in certain accounts for
normal service charges.
(a) A U.S. financial institution is
authorized to debit any blocked account
held at that financial institution in
payment or reimbursement for normal
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service charges owed it by the owner of
that blocked account.
(b) As used in this section, the term
normal service charges shall include
charges in payment or reimbursement
for interest due; cable, telegraph,
internet, or telephone charges; postage
costs; custody fees; small adjustment
charges to correct bookkeeping errors;
and, but not by way of limitation,
minimum balance charges, notary and
protest fees, and charges for reference
books, photocopies, credit reports,
transcripts of statements, registered
mail, insurance, stationery and supplies,
and other similar items.
§ 582.506
services.
Provision of certain legal
(a) The provision of the following
legal services to or on behalf of persons
whose property and interests in
property are blocked pursuant to
§ 582.201 or any further Executive
orders relating to the national
emergency declared in Executive Order
13851 of November 27, 2018, is
authorized, provided that any receipt of
payment of professional fees and
reimbursement of incurred expenses
must be authorized pursuant to
§ 582.507, which authorizes certain
payments for legal services from funds
originating outside the United States;
via specific license; or otherwise
pursuant to this part:
(1) Provision of legal advice and
counseling on the requirements of and
compliance with the laws of the United
States or any jurisdiction within the
United States, provided that such advice
and counseling are not provided to
facilitate transactions in violation of this
part;
(2) Representation of persons named
as defendants in or otherwise made
parties to legal, arbitration, or
administrative proceedings before any
U.S. federal, state, or local court or
agency;
(3) Initiation and conduct of legal,
arbitration, or administrative
proceedings before any U.S. Federal,
State, or local court or agency;
(4) Representation of persons before
any U.S. federal, state, or local court or
agency with respect to the imposition,
administration, or enforcement of U.S.
sanctions against such persons; and
(5) Provision of legal services in any
other context in which prevailing U.S.
law requires access to legal counsel at
public expense.
(b) The provision of any other legal
services to or on behalf of persons
whose property and interests in
property are blocked pursuant to
§ 582.201 or any further Executive
orders relating to the national
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emergency declared in Executive Order
13851 of November 27, 2018, not
otherwise authorized in this part,
requires the issuance of a specific
license.
(c) U.S. persons do not need to obtain
specific authorization to provide related
services, such as making filings and
providing other administrative services,
that are ordinarily incident to the
provision of services authorized by this
section. Additionally, U.S. persons who
provide services authorized by this
section do not need to obtain specific
authorization to contract for related
services that are ordinarily incident to
the provision of those legal services,
such as those provided by private
investigators or expert witnesses, or to
pay for such services. See § 582.404.
(d) Entry into a settlement agreement
or the enforcement of any lien,
judgment, arbitral award, decree, or
other order through execution,
garnishment, or other judicial process
purporting to transfer or otherwise alter
or affect property or interests in
property blocked pursuant to § 582.201
or any further Executive orders relating
to the national emergency declared in
Executive Order 13851 of November 27,
2018 is prohibited unless licensed
pursuant to this part.
Note 1 to § 582.506: Pursuant to part 501,
subpart E, of this chapter, U.S. persons
seeking administrative reconsideration or
judicial review of their designation or the
blocking of their property and interests in
property may apply for a specific license
from OFAC to authorize the release of certain
blocked funds for the payment of
professional fees and reimbursement of
incurred expenses for the provision of such
legal services where alternative funding
sources are not available. For more
information, see OFAC’s Guidance on the
Release of Limited Amounts of Blocked
Funds for Payment of Legal Fees and Costs
Incurred in Challenging the Blocking of U.S.
Persons in Administrative or Civil
Proceedings, which is available on OFAC’s
website at: www.treasury.gov/ofac.
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§ 582.507 Payments for legal services from
funds originating outside the United States.
(a) Professional fees and incurred
expenses. (1) Receipt of payment of
professional fees and reimbursement of
incurred expenses for the provision of
legal services authorized pursuant to
§ 582.506(a) to or on behalf of any
person whose property and interests in
property are blocked pursuant to
§ 582.201 or any further Executive
orders relating to the national
emergency declared in Executive Order
13851, of November 27, 2018 is
authorized from funds originating
outside the United States, provided that
the funds do not originate from:
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(i) A source within the United States;
(ii) Any source, wherever located,
within the possession or control of a
U.S. person; or
(iii) Any individual or entity, other
than the person on whose behalf the
legal services authorized pursuant to
§ 582.506(a) are to be provided, whose
property and interests in property are
blocked pursuant to any part of this
chapter or any Executive order or
statute.
(2) Nothing in this paragraph (a)
authorizes payments for legal services
using funds in which any other person
whose property and interests in
property are blocked pursuant to
§ 582.201, any other part of this chapter,
or any Executive order has an interest.
(b) Reports. (1) U.S. persons who
receive payments pursuant to paragraph
(a) of this section must submit annual
reports no later than 30 days following
the end of the calendar year during
which the payments were received
providing information on the funds
received. Such reports shall specify:
(i) The individual or entity from
whom the funds originated and the
amount of funds received; and
(ii) If applicable:
(A) The names of any individuals or
entities providing related services to the
U.S. person receiving payment in
connection with authorized legal
services, such as private investigators or
expert witnesses;
(B) A general description of the
services provided; and
(C) The amount of funds paid in
connection with such services.
(2) The reports, which must reference
this section, are to be submitted to
OFAC using one of the following
methods:
(i) Email (preferred method):
OFAC.Regulations.Reports@
treasury.gov; or
(ii) U.S. mail: OFAC Regulations
Reports, Office of Foreign Assets
Control, U.S. Department of the
Treasury, 1500 Pennsylvania Avenue
NW, Freedman’s Bank Building,
Washington, DC 20220.
§ 582.508
Emergency medical services.
The provision and receipt of
nonscheduled emergency medical
services that are otherwise prohibited by
this part or any further Executive orders
relating to the national emergency
declared in Executive Order 13851 of
November 27, 2018 are authorized.
Subpart F—Reports
§ 582.601
Records and reports.
For provisions relating to required
records and reports, see part 501,
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subpart C, of this chapter.
Recordkeeping and reporting
requirements imposed by part 501 of
this chapter with respect to the
prohibitions contained in this part are
considered requirements arising
pursuant to this part.
Subpart G—Penalties and Findings of
Violation
§ 582.701 Penalties and Findings of
Violation.
(a) The penalties available under
section 206 of the International
Emergency Economic Powers Act (50
U.S.C. 1701–1706) (IEEPA), as adjusted
annually pursuant to the Federal Civil
Penalties Inflation Adjustment Act of
1990 (Pub. L. 101–410, as amended, 28
U.S.C. 2461 note) or, in the case of
criminal violations, as adjusted
pursuant to 18 U.S.C. 3571, are
applicable to violations of the
provisions of this part.
(b) OFAC has the authority, pursuant
to IEEPA, to issue Pre-Penalty Notices,
Penalty Notices, and Findings of
Violation; impose monetary penalties;
engage in settlement discussions and
enter into settlements; refer matters to
the United States Department of Justice
for administrative collection; and, in
appropriate circumstances, refer matters
to appropriate law enforcement agencies
for criminal investigation and/or
prosecution. For more information, see
appendix A to part 501 of this chapter,
which provides a general framework for
the enforcement of all economic
sanctions programs administered by
OFAC, including enforcement-related
definitions, types of responses to
apparent violations, general factors
affecting administrative actions, civil
penalties for failure to comply with a
requirement to furnish information or
keep records, and other general civil
penalties information.
Subpart H—Procedures
§ 582.801
Procedures.
For license application procedures
and procedures relating to amendments,
modifications, or revocations of
licenses; administrative decisions;
rulemaking; and requests for documents
pursuant to the Freedom of Information
and Privacy Acts (5 U.S.C. 552 and
552a), see part 501, subpart E, of this
chapter.
§ 582.802 Delegation of certain authorities
by the Secretary of the Treasury.
Any action that the Secretary of the
Treasury is authorized to take pursuant
to Executive Order 13851 of November
27, 2018, and any further Executive
orders relating to the national
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emergency declared therein, may be
taken by the Director of OFAC or by any
other person to whom the Secretary of
the Treasury has delegated authority so
to act.
Subpart I—Paperwork Reduction Act
§ 582.901
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. An agency
may not conduct or sponsor, and a
person is not required to respond to, a
collection of information unless it
displays a valid control number
assigned by OMB.
Appendix A to Part 582—Executive
Order 13851
Executive Order 13851 of November 27, 2018
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Blocking Property of Certain Persons
Contributing to the Situation in Nicaragua
By the authority vested in me as President
by the Constitution and the laws of the
United States of America, including the
International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.) (IEEPA), the
National Emergencies Act (50 U.S.C. 1601 et
seq.) (NEA), 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 the
situation in Nicaragua, including the violent
response by the Government of Nicaragua to
the protests that began on April 18, 2018, and
the Ortega regime’s systematic dismantling
and undermining of democratic institutions
and the rule of law, its use of indiscriminate
violence and repressive tactics against
civilians, as well as its corruption leading to
the destabilization of Nicaragua’s economy,
constitutes an unusual and extraordinary
threat to the national security and foreign
policy of the United States, and I hereby
declare a national emergency to deal with
that threat. I hereby determine and 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 responsible for or complicit in, or
to have directly or indirectly engaged or
attempted to engage in, any of the following:
(A) Serious human rights abuse in
Nicaragua;
(B) actions or policies that undermine
democratic processes or institutions in
Nicaragua;
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(C) actions or policies that threaten the
peace, security, or stability of Nicaragua;
(D) any transaction or series of transactions
involving deceptive practices or corruption
by, on behalf of, or otherwise related to the
Government of Nicaragua or a current or
former official of the Government of
Nicaragua, such as the misappropriation of
public assets or expropriation of private
assets for personal gain or political purposes,
corruption related to government contracts,
or bribery;
(ii) to be a leader or official of an entity that
has, or whose members have, engaged in any
activity described in subsection (a)(i) of this
section or of an entity whose property and
interests in property are blocked pursuant to
this order;
(iii) to be an official of the Government of
Nicaragua or to have served as an official of
the Government of Nicaragua at any time on
or after January 10, 2007;
(iv) to have materially assisted, sponsored,
or provided financial, material, or
technological support for, or goods or
services in support of:
(A) Any activities described in subsection
(a)(i) of this section; or
(B) any person whose property and
interests in property are blocked pursuant to
this order; 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 order.
(b) The prohibitions in subsection (a) of
this section apply except to the extent
provided by statutes, or in regulations,
orders, directives, or licenses that may be
issued pursuant to this order, and
notwithstanding any contract entered into or
any license or permit granted prior to the
date of this order.
Sec. 2. The unrestricted immigrant and
nonimmigrant entry into the United States of
aliens determined to meet one or more of the
criteria in section 1 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 hereby suspended, except
where the Secretary of State determines that
the person’s entry is in the national interest
of the United States. 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. 3. I hereby determine that the making
of donations of the type of articles specified
in section 203(b)(2) of IEEPA (50 U.S.C.
1702(b)(2)) by, to, or for the benefit of any
person whose property and interests in
property are blocked pursuant to section 1 of
this order would seriously impair my ability
to deal with the national emergency declared
in this order, and I hereby prohibit such
donations as provided by section 1 of this
order.
Sec. 4. The prohibitions in section 1 of this
order include:
(a) The making of any contribution or
provision of funds, goods, or services by, to,
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46447
or for the benefit of any person whose
property and interests in property are
blocked pursuant to this order; and
(b) the receipt of any contribution or
provision of funds, goods, or services from
any such person.
Sec. 5. (a) Any transaction that evades or
avoids, has the purpose of evading or
avoiding, causes a violation of, or attempts to
violate any of the prohibitions set forth in
this order is prohibited.
(b) Any conspiracy formed to violate any
of the prohibitions set forth in this order is
prohibited.
Sec. 6. For the purposes of this order:
(a) The term ‘‘person’’ means an individual
or entity;
(b) the term ‘‘entity’’ means a partnership,
association, trust, joint venture, corporation,
group, subgroup, or other organization;
(c) the term ‘‘United States person’’ means
any United States citizen, permanent resident
alien, entity organized under the laws of the
United States or any jurisdiction within the
United States (including foreign branches), or
any person in the United States; and
(d) the term ‘‘Government of Nicaragua’’
means the Government of Nicaragua, any
political subdivision, agency, or
instrumentality thereof, including the Central
Bank of Nicaragua, and any person owned or
controlled by, or acting for or on behalf of,
the Government of Nicaragua.
Sec. 7. For those persons whose property
and interests in property are blocked
pursuant to this order who might have a
constitutional presence in the United States,
I find that because of the ability to transfer
funds or other assets instantaneously, prior
notice to such persons of measures to be
taken pursuant to this order would render
those measures ineffectual. I therefore
determine that for these measures to be
effective in addressing the national
emergency declared in this order, there need
be no prior notice of a listing or
determination made pursuant to section 1 of
this order.
Sec. 8. The Secretary of the Treasury, in
consultation with the Secretary of State, is
hereby authorized to take such actions,
including promulgating 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 of the United States
Government shall take all appropriate
measures within their authority to carry out
the provisions of this order.
Sec. 9. The Secretary of the Treasury, in
consultation with the Secretary of State, is
hereby authorized to submit the recurring
and final reports to the Congress on the
national emergency declared in this order,
consistent with section 401(c) of the NEA (50
U.S.C. 1641(c)) and section 204(c) of IEEPA
(50 U.S.C. 1703(c)).
Sec. 10. (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
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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,
November 27, 2018.
Andrea Gacki,
Director, Office of Foreign Assets Control.
Approved:
Sigal P. Mandelker,
Under Secretary, Office of Terrorism and
Financial Intelligence, Department of the
Treasury.
[FR Doc. 2019–19049 Filed 9–3–19; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF VETERANS
AFFAIRS
48 CFR Parts 801, 815, 816, 837, 849,
852, and 871
RIN 2900–AQ20
VA Acquisition Regulation:
Contracting by Negotiation; Service
Contracting
Department of Veterans Affairs.
Final rule.
AGENCY:
ACTION:
The Department of Veterans
Affairs (VA) is amending and updating
its VA Acquisition Regulation (VAAR)
in phased increments to revise or
remove any policy superseded by
changes in the Federal Acquisition
Regulation (FAR), to remove procedural
guidance internal to VA into the VA
Acquisition Manual (VAAM), and to
incorporate any new agency specific
regulations or policies. These changes
seek to streamline and align the VAAR
with the FAR and remove outdated and
duplicative requirements and reduce
burden on contractors. The VAAM
incorporates portions of the removed
VAAR as well as other internal agency
acquisition policy. VA will rewrite
certain parts of the VAAR and VAAM,
and as VAAR parts are rewritten, VA
will publish them in the Federal
Register. In particular, this rulemaking
revises VAAR concerning Contracting
by Negotiation and Service Contracting,
as well as affected parts covering the
Department of Veterans Affairs
Acquisition Regulation System, Types
of Contracts, Termination of Contracts,
Solicitation Provisions and Contract
Clauses, and Loan Guaranty and
jbell on DSK3GLQ082PROD with RULES
SUMMARY:
VerDate Sep<11>2014
16:38 Sep 03, 2019
Jkt 247001
Vocational Rehabilitation and
Employment Programs.
DATES: This rule is effective on October
4, 2019.
FOR FURTHER INFORMATION CONTACT: Mr.
Rafael N. Taylor, Senior Procurement
Analyst, Procurement Policy and
Warrant Management Services, 003A2A,
425 I Street NW, Washington, DC 20001,
(202) 382–2787. (This is not a toll-free
number.)
SUPPLEMENTARY INFORMATION: On
September 7, 2018, VA published a
proposed rule in the Federal Register
(83 FR 45384) which announced VA’s
intent to amend regulations for VAAR
Case RIN 2900–AQ20—VA Acquisition
Regulation: Contracting by Negotiation;
Service Contracting. VA provided a 60day comment period for the public to
respond to the proposed rule and
submit comments. The comment period
for the proposed rule ended on
November 6, 2018 and VA received
three comments from one commenter.
This rule adopts as a final rule, with
changes, the proposed rule published in
the Federal Register on September 7,
2018, with minor formatting and/or
grammatical edits, as well as the nonsubstantive changes described below.
VA reviewed and considered the
comments raised by the one commenter
in the development of this final rule. A
discussion of the issues raised in the
comments as well as the changes made
to the rule as a result of those
comments, and the technical nonsubstantive changes to the final rule are
provided as follows:
In particular, this final rule revises the
table at 801.106 to reflect the addition
of new VAAR clause 852.237–73, Crime
Control Act—Requirement for
Background Checks and the
corresponding new OMB control
number 2900–0863. This final rule also
removes 815.303, Responsibilities, and
815.304, Evaluation factors and
significant subfactors, and moves them
to the VAAM as they contain procedural
guidance that is internal to the VA.
This rule adds a new section, 815.370,
Only one offer. The inclusion of this
policy gives the contracting officer the
ability to re-solicit for an action if they
only receive one offer and if the
solicitation gave offerors less than 30
days to submit a proposal. This final
rule removes subpart 815.4, Contract
Pricing, as it contains procedural
guidance that is internal to the VA and
the content has been moved to the
VAAM.
This final rule removes subpart 815.6,
Unsolicited Proposals, as it contains
procedural guidance. This rulemaking
adds subpart 816.5 and section 816.506–
PO 00000
Frm 00030
Fmt 4700
Sfmt 4700
70, Requirements—supplement for
mortuary services, which prescribes
clause 852.216–76, Requirements—
Supplement for Mortuary Services, for
all contracts for mortuary services.
Under part 837, this final rule
removes section 837.103, Contracting
officer responsibility, as this internal
procedural guidance is more suitable for
the VAAM. This rule also removes the
title and text at section 837.110,
Solicitation provisions and contract
clauses, since FAR 52.237–2, Protection
of Government Buildings, Equipment
and Vegetation, and 852.228–71,
Indemnification and Insurance, outline
contractor liabilities and required
insurance levels and provides sufficient
coverage in this area.
This final rule amends section
837.110–70, Services provided to
eligible beneficiaries, by retitling it ‘‘VA
solicitation provisions and contract
clauses,’’ by removing the prescription
for the clause, 852.271–70, NonDiscrimination in Services Provided to
Beneficiaries, and by adding the
prescriptions for the new clauses
852.237–74, Non-Discrimination in
Service Delivery, and 852.237–75, Key
Personnel. This final rule removes
subpart 837.2, Advisory and Assistance
Services, since it duplicates coverage in
FAR.
This rule amends section 837.403,
Contract clause, to redesignate it as
section 837.403–70, VA contract
clauses, and adds prescriptions for three
new clauses that address protection of
children under contracts providing
child care services as required by FAR
37.103(d): 852.237–71, Nonsmoking
Policy for Children Services; 852.237–
72, Crime Control Act—Reporting of
Child Abuse; and 852.237–73, Crime
Control Act—Requirement for
Background Checks.
Under subpart 837.70, Mortuary
Services, this rule adds section
837.7000, Scope, which cites the
statutory basis for the mortuary service
benefits covered. This final rule also
removes sections 837.7002, List of
qualified funeral directors; 837.7003,
Funeral authorization; 837.7004,
Administrative necessity; and 837.7005,
Unclaimed remains—all other cases,
because this material was based on
internal VA guidance that has been
rescinded.
This final rule adds subpart 849.5,
Contract Termination Clauses, section
849.504, Termination of fixed-price
contracts for default (no text), and
section 849.504–70, Termination of
mortuary services, to prescribe a new
clause 852.249–70, Termination for
Default—Supplement for Mortuary
Services. Under subpart 852.2, this
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]]>Agencies
[Federal Register Volume 84, Number 171 (Wednesday, September 4, 2019)]
[Rules and Regulations]
[Pages 46440-46448]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19049]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 582
Nicaragua 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 adding regulations to implement Executive Order 13851
of November 27, 2018 (``Blocking Property of Certain Persons
Contributing to the Situation in Nicaragua''). OFAC intends to
supplement these regulations with a more comprehensive set of
regulations, which may include additional interpretive and definitional
guidance, general licenses, and statements of licensing policy.
DATES: Effective: September 4, 2019.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, tel.: 202-622-2480; Assistant Director for Regulatory
Affairs, tel.: 202-622-4855; or Assistant Director for Sanctions
[[Page 46441]]
Compliance & Evaluation, tel.: 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 November 27, 2018, the President, invoking the authority of,
inter alia, the International Emergency Economic Powers Act (50 U.S.C.
1701-1706) (IEEPA), issued Executive Order 13851 (83 FR 61505, November
29, 2018) (E.O. 13851).
In E.O. 13851, the President determined that the situation in
Nicaragua, including the violent response by the Government of
Nicaragua to the protests that began on April 18, 2018, and the Ortega
regime's systematic dismantling and undermining of democratic
institutions and the rule of law, its use of indiscriminate violence
and repressive tactics against civilians, and its corruption leading to
the destabilization of Nicaragua's economy, constitute an unusual and
extraordinary threat to the national security and foreign policy of the
United States, and declared a national emergency to deal with that
threat.
OFAC is issuing the Nicaragua Sanctions Regulations, 31 CFR part
582 (the ``Regulations''), to implement E.O. 13851, pursuant to
authorities delegated to the Secretary of the Treasury in E.O. 13851. A
copy of E.O. 13851 appears in appendix A to this part.
The Regulations are being published in abbreviated form at this
time for the purpose of providing immediate guidance to the public.
OFAC intends to supplement this part 582 with a more comprehensive set
of regulations, which may include additional interpretive and
definitional guidance, general licenses, and statements of licensing
policy. The appendix to the Regulations will be removed when OFAC
supplements this part with a more comprehensive set of regulations.
Public Participation
Because the Regulations involve a foreign affairs function, the
provisions of Executive Order 12866 and the Administrative Procedure
Act (5 U.S.C. 553) requiring notice of proposed rulemaking, opportunity
for public participation, and delay in effective date, 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 the Regulations are
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of information have been approved by
the Office of Management and Budget under control number 1505-0164. An
agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.
List of Subjects in 31 CFR Part 582
Administrative practice and procedure, Banks, banking, Blocking of
assets, Nicaragua, Penalties, Reporting and recordkeeping requirements,
Sanctions.
0
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control adds part 582 to 31 CFR
chapter V to read as follows:
PART 582--NICARAGUA SANCTIONS REGULATIONS
Subpart A--Relation of this Part to Other Laws and Regulations
Sec.
582.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
582.201 Prohibited transactions.
582.202 Effect of transfers violating the provisions of this part.
582.203 Holding of funds in interest-bearing accounts; investment
and reinvestment. 582.204 Expenses of maintaining blocked tangible
property; liquidation of blocked property.
582.205 Exempt transactions.
Subpart C--General Definitions
582.300 Applicability of definitions.
582.301 Blocked account; blocked property.
582.302 Effective date.
582.303 Entity.
582.304 Financial, material, or technological support.
582.305 Information or informational materials.
582.306 Interest.
582.307 Licenses; general and specific.
582.308 OFAC.
582.309 Person.
582.310 Property; property interest.
582.311 Transfer.
582.312 United States.
582.313 United States person; U.S. person.
582.314 U.S. financial institution.
Subpart D--Interpretations
582.401 [Reserved]
582.402 Effect of amendment.
582.403 Termination and acquisition of an interest in blocked
property.
582.404 Transactions ordinarily incident to a licensed transaction.
582.405 Setoffs prohibited.
582.406 Entities owned by one or more persons whose property and
interests in property are blocked.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
582.501 General and specific licensing procedures.
582.502 [Reserved]
582.503 Exclusion from licenses.
582.504 Payments and transfers to blocked accounts in U.S. financial
institutions.
582.505 Entries in certain accounts for normal service charges.
582.506 Provision of certain legal services.
582.507 Payments for legal services from funds originating outside
the United States.
582.508 Emergency medical services.
Subpart F--Reports
582.601 Records and reports.
Subpart G--Penalties and Findings of Violation
582.701 Penalties and Findings of Violation.
Subpart H--Procedures
582.801 Procedures.
582.802 Delegation of certain authorities of the Secretary of the
Treasury.
Subpart I--Paperwork Reduction Act
582.901 Paperwork Reduction Act notice.
Appendix A to Part 582--Executive Order 13851 of November 27, 2018
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13851, 83
FR 61505, November 29, 2018.
Subpart A--Relation of This Part to Other Laws and Regulations
Sec. 582.101 Relation of this part to other laws and regulations.
This part is separate from, and independent of, the other parts of
this chapter, with the exception of part 501 of this chapter, the
recordkeeping and reporting requirements and license application and
other procedures of which apply to this part. Actions taken pursuant to
part 501 of this chapter with respect to the prohibitions contained in
this part are considered actions taken pursuant to this part. Differing
foreign policy and national security circumstances may result in
differing interpretations of similar language among the parts of this
chapter. No license or authorization contained in or issued pursuant to
those other parts authorizes any transaction prohibited by this part.
No license or authorization
[[Page 46442]]
contained in or issued pursuant to any other provision of law or
regulation authorizes any transaction prohibited by this part. No
license or authorization contained in or issued pursuant to this part
relieves the involved parties from complying with any other applicable
laws or regulations.
Note 1 to Sec. 582.101: This part has been published in
abbreviated form for the purpose of providing immediate guidance to
the public. OFAC intends to supplement this part with a more
comprehensive set of regulations, which may include additional
interpretive and definitional guidance, general licenses, and
statements of licensing policy.
Subpart B--Prohibitions
Sec. 582.201 Prohibited transactions.
All transactions prohibited pursuant to Executive Order 13851 of
November 27, 2018 are also prohibited pursuant to this part.
Note 1 to Sec. 582.201: The names of persons designated
pursuant to Executive Order 13851, whose property and interests in
property therefore are blocked pursuant to this section, are
published in the Federal Register and incorporated into OFAC's
Specially Designated Nationals and Blocked Persons List (SDN List)
with the identifier ``[NICARAGUA].'' 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. See Sec. 582.406 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. 582.201: The International Emergency Economic
Powers Act (50 U.S.C. 1701-1706), in Section 203 (50 U.S.C. 1702),
authorizes the blocking of property and interests in property of a
person during the pendency of an investigation. The names of persons
whose property and interests in property are blocked pending
investigation pursuant to this section also are published in the
Federal Register and incorporated into the SDN List with the
identifier ``[BPI-NICARAGUA]''.
Note 3 to Sec. 582.201: 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, and administrative reconsideration of
their status as persons whose property and interests in property are
blocked pursuant to this section.
Sec. 582.202 Effect of transfers violating the provisions of this
part.
(a) Any transfer after the effective date that is in violation of
any provision of this part or of any regulation, order, directive,
ruling, instruction, or license issued pursuant to this part, and that
involves any property or interest in property blocked pursuant to Sec.
582.201, is null and void and shall not be the basis for the assertion
or recognition of any interest in or right, remedy, power, or privilege
with respect to such property or interest in property.
(b) No transfer before the effective date shall be the basis for
the assertion or recognition of any right, remedy, power, or privilege
with respect to, or any interest in, any property or interest in
property blocked pursuant to Sec. 582.201, unless the person who holds
or maintains such property, prior to that date, had written notice of
the transfer or by any written evidence had recognized such transfer.
(c) Unless otherwise provided, a license or other authorization
issued by OFAC before, during, or after a transfer shall validate such
transfer or make it enforceable to the same extent that it would be
valid or enforceable but for the provisions of this part and any
regulation, order, directive, ruling, instruction, or license issued
pursuant to this part.
(d) Transfers of property that otherwise would be null and void or
unenforceable by virtue of the provisions of this section shall not be
deemed to be null and void or unenforceable as to any person with whom
such property is or was held or maintained (and as to such person only)
in cases in which such person is able to establish to the satisfaction
of OFAC each of the following:
(1) Such transfer did not represent a willful violation of the
provisions of this part by the person with whom such property is or was
held or maintained (and as to such person only);
(2) The person with whom such property is or was held or maintained
did not have reasonable cause to know or suspect, in view of all the
facts and circumstances known or available to such person, that such
transfer required a license or authorization issued pursuant to this
part and was not so licensed or authorized, or, if a license or
authorization did purport to cover the transfer, that such license or
authorization had been obtained by misrepresentation of a third party
or withholding of material facts or was otherwise fraudulently
obtained; and
(3) The person with whom such property is or was held or maintained
filed with OFAC a report setting forth in full the circumstances
relating to such transfer promptly upon discovery that:
(i) Such transfer was in violation of the provisions of this part
or any regulation, ruling, instruction, license, or other directive or
authorization issued pursuant to this part;
(ii) Such transfer was not licensed or authorized by OFAC; or
(iii) If a license did purport to cover the transfer, such license
had been obtained by misrepresentation of a third party or withholding
of material facts or was otherwise fraudulently obtained.
(e) The filing of a report in accordance with the provisions of
paragraph (d)(3) of this section shall not be deemed evidence that the
terms of paragraphs (d)(1) and (2) of this section have been satisfied.
(f) Unless licensed pursuant to this part, any attachment,
judgment, decree, lien, execution, garnishment, or other judicial
process is null and void with respect to any property or interest in
property blocked pursuant to Sec. 582.201.
Sec. 582.203 Holding of funds in interest-bearing accounts;
investment and reinvestment.
(a) Except as provided in paragraph (e) or (f) of this section, or
as otherwise directed or authorized by OFAC, any U.S. person holding
funds, such as currency, bank deposits, or liquidated financial
obligations, subject to Sec. 582.201 shall hold or place such funds in
a blocked interest-bearing account located in the United States.
(b)(1) For purposes of this section, the term blocked interest-
bearing account means a blocked account:
(i) In a federally insured U.S. bank, thrift institution, or credit
union, provided the funds are earning interest at rates that are
commercially reasonable; or
(ii) With a broker or dealer registered with the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.), provided the funds are invested in a money market
fund or in U.S. Treasury bills.
(2) Funds held or placed in a blocked account pursuant to paragraph
(a) of this section may not be invested in instruments the maturity of
which exceeds 180 days.
(c) For purposes of this section, a rate is commercially reasonable
if it is the rate currently offered to other depositors on deposits or
instruments of comparable size and maturity.
(d) For purposes of this section, if interest is credited to a
separate blocked account or subaccount, the name of the account party
on each account must be the same.
(e) Blocked funds held in instruments the maturity of which exceeds
180 days at the time the funds become subject to Sec. 582.201 may
continue to be held until maturity in the original instrument, provided
any interest, earnings, or other proceeds derived therefrom are paid
[[Page 46443]]
into a blocked interest-bearing account in accordance with paragraph
(a) or (f) of this section.
(f) Blocked funds held in accounts or instruments outside the
United States at the time the funds become subject to Sec. 582.201 may
continue to be held in the same type of accounts or instruments,
provided the funds earn interest at rates that are commercially
reasonable.
(g) This section does not create an affirmative obligation for the
holder of blocked tangible property, such as real or personal property,
or of other blocked property, such as debt or equity securities, to
sell or liquidate such property. However, OFAC may issue licenses
permitting or directing such sales or liquidation in appropriate cases.
(h) Funds subject to this section may not be held, invested, or
reinvested in a manner that provides financial or economic benefit or
access to any person whose property and interests in property are
blocked pursuant to Sec. 582.201, nor may their holder cooperate in or
facilitate the pledging or other attempted use as collateral of blocked
funds or other assets.
Sec. 582.204 Expenses of maintaining blocked tangible property;
liquidation of blocked property.
(a) Except as otherwise authorized, and notwithstanding the
existence of any rights or obligations conferred or imposed by any
international agreement or contract entered into or any license or
permit granted prior to the effective date, all expenses incident to
the maintenance of tangible property blocked pursuant to Sec. 582.201
shall be the responsibility of the owners or operators of such
property, which expenses shall not be met from blocked funds.
(b) Property blocked pursuant to Sec. 582.201 may, in the
discretion of OFAC, be sold or liquidated and the net proceeds placed
in a blocked interest-bearing account in the name of the owner of the
property.
Sec. 582.205 Exempt transactions.
(a) Personal communications. The prohibitions contained in this
part do not apply to any postal, telegraphic, telephonic, or other
personal communication that does not involve the transfer of anything
of value.
(b) Information or informational materials. (1) The prohibitions
contained in this part do not apply to the importation from any country
and the exportation to any country of any information or informational
materials, as defined in Sec. 582.305, whether commercial or
otherwise, regardless of format or medium of transmission.
(2) This section does not exempt from regulation transactions
related to information or informational materials not fully created and
in existence at the date of the transactions, or to the substantive or
artistic alteration or enhancement of information or informational
materials, or to the provision of marketing and business consulting
services. Such prohibited transactions include payment of advances for
information or informational materials not yet created and completed
(with the exception of prepaid subscriptions for widely circulated
magazines and other periodical publications); provision of services to
market, produce or co-produce, create, or assist in the creation of
information or informational materials; and payment of royalties with
respect to income received for enhancements or alterations made by U.S.
persons to such information or informational materials.
(3) This section does not exempt transactions incident to the
exportation of software subject to the Export Administration
Regulations, 15 CFR parts 730 through 774, or to the exportation of
goods (including software) or technology for use in the transmission of
any data, or to the provision, sale, or leasing of capacity on
telecommunications transmission facilities (such as satellite or
terrestrial network connectivity) for use in the transmission of any
data. The exportation of such items or services and the provision,
sale, or leasing of such capacity or facilities to a person whose
property and interests in property are blocked pursuant to Sec.
582.201 are prohibited.
(c) Travel. The prohibitions contained in this part do not apply to
transactions ordinarily incident to travel to or from any country,
including importation or exportation of accompanied baggage for
personal use, maintenance within any country including payment of
living expenses and acquisition of goods or services for personal use,
and arrangement or facilitation of such travel including nonscheduled
air, sea, or land voyages.
Subpart C--General Definitions
Sec. 582.300 Applicability of definitions.
The definitions in this subpart apply throughout the entire part.
Sec. 582.301 Blocked account; blocked property.
The terms blocked account and blocked property shall mean any
account or property subject to the prohibitions in Sec. 582.201 held
in the name of a person whose property and interests in property are
blocked pursuant to Sec. 582.201, or in which such person has an
interest, and with respect to which payments, transfers, exportations,
withdrawals, or other dealings may not be made or effected except
pursuant to a license or other authorization from OFAC expressly
authorizing such action.
Note 1 to Sec. 582.301: See Sec. 582.406 concerning the
blocked status of property and interests in property of an entity
that is directly or indirectly owned, whether individually or in the
aggregate, 50 percent or more by one or more persons whose property
and interests in property are blocked pursuant to Sec. 582.201.
Sec. 582.302 Effective date.
(a) The term effective date refers to the effective date of the
applicable prohibitions and directives contained in this part, and with
respect to a person whose property and interests in property are
otherwise blocked pursuant to Sec. 582.201, 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.
Sec. 582.303 Entity.
The term entity means a partnership, association, trust, joint
venture, corporation, group, subgroup, or other organization.
Sec. 582.304 Financial, material, or technological support.
The term financial, material, or technological support means any
property, tangible or intangible, including currency, financial
instruments, securities, or any other transmission of value; weapons or
related materiel; chemical or biological agents; explosives; false
documentation or identification; communications equipment; computers;
electronic or other devices or equipment; technologies; lodging; safe
houses; facilities; vehicles or other means of transportation; or
goods. ``Technologies'' as used in this definition means specific
information necessary for the development, production, or use of a
product, including related technical data such as blueprints, plans,
diagrams, models, formulae, tables, engineering designs and
specifications, manuals, or other recorded instructions.
[[Page 46444]]
Sec. 582.305 Information or informational materials.
(a)(1) The term information or informational materials includes
publications, films, posters, phonograph records, photographs,
microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and
news wire feeds.
(2) To be considered information or informational materials,
artworks must be classified under heading 9701, 9702, or 9703 of the
Harmonized Tariff Schedule of the United States.
(b) The term information or informational materials, with respect
to exports, does not include items:
(1) That were, as of April 30, 1994, or that thereafter become,
controlled for export pursuant to section 5 of the Export
Administration Act of 1979, 50 U.S.C. App. 2401-2420 (1979) (EAA), or
section 6 of the EAA to the extent that such controls promote the
nonproliferation or antiterrorism policies of the United States; or
(2) With respect to which acts are prohibited by 18 U.S.C. chapter
37.
Sec. 582.306 Interest.
Except as otherwise provided in this part, the term interest, when
used with respect to property (e.g., ``an interest in property''),
means an interest of any nature whatsoever, direct or indirect.
Sec. 582.307 Licenses; general and specific.
(a) Except as otherwise provided in this part, the term license
means any license or authorization contained in or issued pursuant to
this part.
(b) The term general license means any license or authorization the
terms of which are set forth in subpart E of this part or made
available on OFAC's website: www.treasury.gov/ofac.
(c) The term specific license means any license or authorization
issued pursuant to this part but not set forth in subpart E of this
part or made available on OFAC's website: www.treasury.gov/ofac.
Note 1 to Sec. 582.307: See Sec. 501.801 of this chapter on
licensing procedures.
Sec. 582.308 OFAC.
The term OFAC means the Department of the Treasury's Office of
Foreign Assets Control.
Sec. 582.309 Person.
The term person means an individual or entity.
Sec. 582.310 Property; property interest.
The terms property and property interest include money, checks,
drafts, bullion, bank deposits, savings accounts, debts, indebtedness,
obligations, notes, guarantees, debentures, stocks, bonds, coupons, any
other financial instruments, bankers acceptances, mortgages, pledges,
liens or other rights in the nature of security, warehouse receipts,
bills of lading, trust receipts, bills of sale, any other evidences of
title, ownership, or indebtedness, letters of credit and any documents
relating to any rights or obligations thereunder, powers of attorney,
goods, wares, merchandise, chattels, stocks on hand, ships, goods on
ships, real estate mortgages, deeds of trust, vendors' sales
agreements, land contracts, leaseholds, ground rents, real estate and
any other interest therein, options, negotiable instruments, trade
acceptances, royalties, book accounts, accounts payable, judgments,
patents, trademarks or copyrights, insurance policies, safe deposit
boxes and their contents, annuities, pooling agreements, services of
any nature whatsoever, contracts of any nature whatsoever, and any
other property, real, personal, or mixed, tangible or intangible, or
interest or interests therein, present, future, or contingent.
Sec. 582.311 Transfer.
The term transfer means any actual or purported act or transaction,
whether or not evidenced by writing, and whether or not done or
performed within the United States, the purpose, intent, or effect of
which is to create, surrender, release, convey, transfer, or alter,
directly or indirectly, any right, remedy, power, privilege, or
interest with respect to any property. Without limitation on the
foregoing, it shall include the making, execution, or delivery of any
assignment, power, conveyance, check, declaration, deed, deed of trust,
power of attorney, power of appointment, bill of sale, mortgage,
receipt, agreement, contract, certificate, gift, sale, affidavit, or
statement; the making of any payment; the setting off of any obligation
or credit; the appointment of any agent, trustee, or fiduciary; the
creation or transfer of any lien; the issuance, docketing, filing, or
levy of or under any judgment, decree, attachment, injunction,
execution, or other judicial or administrative process or order, or the
service of any garnishment; the acquisition of any interest of any
nature whatsoever by reason of a judgment or decree of any foreign
country; the fulfillment of any condition; the exercise of any power of
appointment, power of attorney, or other power; or the acquisition,
disposition, transportation, importation, exportation, or withdrawal of
any security.
Sec. 582.312 United States.
The term United States means the United States, its territories and
possessions, and all areas under the jurisdiction or authority thereof.
Sec. 582.313 United States person; U.S. person.
The term United States person or U.S. person means any United
States citizen, permanent resident alien, entity organized under the
laws of the United States or any jurisdiction within the United States
(including foreign branches), or any person in the United States.
Sec. 582.314 U.S. financial institution.
The term U.S. financial institution means any U.S. entity
(including its foreign branches) that is engaged in the business of
accepting deposits, making, granting, transferring, holding, or
brokering loans or other extensions of credit, or purchasing or selling
foreign exchange, securities, commodity futures or options, or
procuring purchasers and sellers thereof, as principal or agent. It
includes depository institutions, banks, savings banks, trust
companies, securities brokers and dealers, futures and options brokers
and dealers, forward contract and foreign exchange merchants,
securities and commodities exchanges, clearing corporations, investment
companies, employee benefit plans, and U.S. holding companies, U.S.
affiliates, or U.S. subsidiaries of any of the foregoing. This term
includes those branches, offices, and agencies of foreign financial
institutions that are located in the United States, but not such
institutions' foreign branches, offices, or agencies.
Subpart D--Interpretations
Sec. 582.401 [Reserved]
Sec. 582.402 Effect of amendment.
Unless otherwise specifically provided, any amendment,
modification, or revocation of any provision in or appendix to this
part or chapter or of any order, regulation, ruling, instruction, or
license issued by OFAC does not affect any act done or omitted, or any
civil or criminal proceeding commenced or pending, prior to such
amendment, modification, or revocation. All penalties, forfeitures, and
liabilities under any such order, regulation, ruling, instruction, or
license continue and may be enforced as if such amendment,
modification, or revocation had not been made.
[[Page 46445]]
Sec. 582.403 Termination and acquisition of an interest in blocked
property.
(a) Whenever a transaction licensed or authorized by or pursuant to
this part results in the transfer of property (including any property
interest) away from a person whose property and interests in property
are blocked pursuant to Sec. 582.201, such property shall no longer be
deemed to be property blocked pursuant to Sec. 582.201, unless there
exists in the property another interest that is blocked pursuant to
Sec. 582.201, the transfer of which has not been effected pursuant to
license or other authorization.
(b) Unless otherwise specifically provided in a license or
authorization issued pursuant to this part, if property (including any
property interest) is transferred or attempted to be transferred to a
person whose property and interests in property are blocked pursuant to
Sec. 582.201, such property shall be deemed to be property in which
such person has an interest and therefore blocked.
Sec. 582.404 Transactions ordinarily incident to a licensed
transaction.
Any transaction ordinarily incident to a licensed transaction and
necessary to give effect thereto is also authorized, except:
(a) An ordinarily incident transaction, not explicitly authorized
within the terms of the license, by or with a person whose property and
interests in property are blocked pursuant to Sec. 582.201; or
(b) An ordinarily incident transaction, not explicitly authorized
within the terms of the license, involving a debit to a blocked account
or a transfer of blocked property.
Sec. 582.405 Setoffs prohibited.
A setoff against blocked property (including a blocked account),
whether by a U.S. bank or other U.S. person, is a prohibited transfer
under Sec. 582.201 if effected after the effective date.
Sec. 582.406 Entities owned by one or more persons whose property and
interests in property are blocked.
Persons whose property and interests in property are blocked
pursuant to Sec. 582.201 have an interest in all property and
interests in property of an entity in which such persons directly or
indirectly own, whether individually or in the aggregate, a 50 percent
or greater interest. The property and interests in property of such an
entity, therefore, are blocked, and such an entity is a person whose
property and interests in property are blocked pursuant to Sec.
582.201, regardless of whether the name of the entity is incorporated
into OFAC's Specially Designated Nationals and Blocked Persons List
(SDN List).
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
Sec. 582.501 General and specific licensing procedures.
For provisions relating to licensing procedures, see part 501,
subpart E, of this chapter. Licensing actions taken pursuant to part
501 of this chapter with respect to the prohibitions contained in this
part are considered actions taken pursuant to this part. General
licenses and statements of licensing policy relating to this part also
may be available through the Nicaragua sanctions page on OFAC's
website: www.treasury.gov/ofac.
Sec. 582.502 [Reserved]
Sec. 582.503 Exclusion from licenses.
OFAC reserves the right to exclude any person, property,
transaction, or class thereof from the operation of any license or from
the privileges conferred by any license. OFAC also reserves the right
to restrict the applicability of any license to particular persons,
property, transactions, or classes thereof. Such actions are binding
upon actual or constructive notice of the exclusions or restrictions.
Sec. 582.504 Payments and transfers to blocked accounts in U.S.
financial institutions.
Any payment of funds or transfer of credit in which a person whose
property and interests in property are blocked pursuant to Sec.
582.201 has any interest that comes within the possession or control of
a U.S. financial institution must be blocked in an account on the books
of that financial institution. A transfer of funds or credit by a U.S.
financial institution between blocked accounts in its branches or
offices is authorized, provided that no transfer is made from an
account within the United States to an account held outside the United
States, and further provided that a transfer from a blocked account may
be made only to another blocked account held in the same name.
Note 1 to Sec. 582.504: See Sec. 501.603 of this chapter for
mandatory reporting requirements regarding financial transfers. See
also Sec. 582.203 concerning the obligation to hold blocked funds
in interest-bearing accounts.
Sec. 582.505 Entries in certain accounts for normal service charges.
(a) A U.S. financial institution is authorized to debit any blocked
account held at that financial institution in payment or reimbursement
for normal service charges owed it by the owner of that blocked
account.
(b) As used in this section, the term normal service charges shall
include charges in payment or reimbursement for interest due; cable,
telegraph, internet, or telephone charges; postage costs; custody fees;
small adjustment charges to correct bookkeeping errors; and, but not by
way of limitation, minimum balance charges, notary and protest fees,
and charges for reference books, photocopies, credit reports,
transcripts of statements, registered mail, insurance, stationery and
supplies, and other similar items.
Sec. 582.506 Provision of certain legal services.
(a) The provision of the following legal services to or on behalf
of persons whose property and interests in property are blocked
pursuant to Sec. 582.201 or any further Executive orders relating to
the national emergency declared in Executive Order 13851 of November
27, 2018, is authorized, provided that any receipt of payment of
professional fees and reimbursement of incurred expenses must be
authorized pursuant to Sec. 582.507, which authorizes certain payments
for legal services from funds originating outside the United States;
via specific license; or otherwise pursuant to this part:
(1) Provision of legal advice and counseling on the requirements of
and compliance with the laws of the United States or any jurisdiction
within the United States, provided that such advice and counseling are
not provided to facilitate transactions in violation of this part;
(2) Representation of persons named as defendants in or otherwise
made parties to legal, arbitration, or administrative proceedings
before any U.S. federal, state, or local court or agency;
(3) Initiation and conduct of legal, arbitration, or administrative
proceedings before any U.S. Federal, State, or local court or agency;
(4) Representation of persons before any U.S. federal, state, or
local court or agency with respect to the imposition, administration,
or enforcement of U.S. sanctions against such persons; and
(5) Provision of legal services in any other context in which
prevailing U.S. law requires access to legal counsel at public expense.
(b) The provision of any other legal services to or on behalf of
persons whose property and interests in property are blocked pursuant
to Sec. 582.201 or any further Executive orders relating to the
national
[[Page 46446]]
emergency declared in Executive Order 13851 of November 27, 2018, not
otherwise authorized in this part, requires the issuance of a specific
license.
(c) U.S. persons do not need to obtain specific authorization to
provide related services, such as making filings and providing other
administrative services, that are ordinarily incident to the provision
of services authorized by this section. Additionally, U.S. persons who
provide services authorized by this section do not need to obtain
specific authorization to contract for related services that are
ordinarily incident to the provision of those legal services, such as
those provided by private investigators or expert witnesses, or to pay
for such services. See Sec. 582.404.
(d) Entry into a settlement agreement or the enforcement of any
lien, judgment, arbitral award, decree, or other order through
execution, garnishment, or other judicial process purporting to
transfer or otherwise alter or affect property or interests in property
blocked pursuant to Sec. 582.201 or any further Executive orders
relating to the national emergency declared in Executive Order 13851 of
November 27, 2018 is prohibited unless licensed pursuant to this part.
Note 1 to Sec. 582.506: Pursuant to part 501, subpart E, of
this chapter, U.S. persons seeking administrative reconsideration or
judicial review of their designation or the blocking of their
property and interests in property may apply for a specific license
from OFAC to authorize the release of certain blocked funds for the
payment of professional fees and reimbursement of incurred expenses
for the provision of such legal services where alternative funding
sources are not available. For more information, see OFAC's Guidance
on the Release of Limited Amounts of Blocked Funds for Payment of
Legal Fees and Costs Incurred in Challenging the Blocking of U.S.
Persons in Administrative or Civil Proceedings, which is available
on OFAC's website at: www.treasury.gov/ofac.
Sec. 582.507 Payments for legal services from funds originating
outside the United States.
(a) Professional fees and incurred expenses. (1) Receipt of payment
of professional fees and reimbursement of incurred expenses for the
provision of legal services authorized pursuant to Sec. 582.506(a) to
or on behalf of any person whose property and interests in property are
blocked pursuant to Sec. 582.201 or any further Executive orders
relating to the national emergency declared in Executive Order 13851,
of November 27, 2018 is authorized from funds originating outside the
United States, provided that the funds do not originate from:
(i) A source within the United States;
(ii) Any source, wherever located, within the possession or control
of a U.S. person; or
(iii) Any individual or entity, other than the person on whose
behalf the legal services authorized pursuant to Sec. 582.506(a) are
to be provided, whose property and interests in property are blocked
pursuant to any part of this chapter or any Executive order or statute.
(2) Nothing in this paragraph (a) authorizes payments for legal
services using funds in which any other person whose property and
interests in property are blocked pursuant to Sec. 582.201, any other
part of this chapter, or any Executive order has an interest.
(b) Reports. (1) U.S. persons who receive payments pursuant to
paragraph (a) of this section must submit annual reports no later than
30 days following the end of the calendar year during which the
payments were received providing information on the funds received.
Such reports shall specify:
(i) The individual or entity from whom the funds originated and the
amount of funds received; and
(ii) If applicable:
(A) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(B) A general description of the services provided; and
(C) The amount of funds paid in connection with such services.
(2) The reports, which must reference this section, are to be
submitted to OFAC using one of the following methods:
(i) Email (preferred method):
[email protected]; or
(ii) U.S. mail: OFAC Regulations Reports, Office of Foreign Assets
Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW,
Freedman's Bank Building, Washington, DC 20220.
Sec. 582.508 Emergency medical services.
The provision and receipt of nonscheduled emergency medical
services that are otherwise prohibited by this part or any further
Executive orders relating to the national emergency declared in
Executive Order 13851 of November 27, 2018 are authorized.
Subpart F--Reports
Sec. 582.601 Records and reports.
For provisions relating to required records and reports, see part
501, subpart C, of this chapter. Recordkeeping and reporting
requirements imposed by part 501 of this chapter with respect to the
prohibitions contained in this part are considered requirements arising
pursuant to this part.
Subpart G--Penalties and Findings of Violation
Sec. 582.701 Penalties and Findings of Violation.
(a) The penalties available under section 206 of the International
Emergency Economic Powers Act (50 U.S.C. 1701-1706) (IEEPA), as
adjusted annually pursuant to the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461
note) or, in the case of criminal violations, as adjusted pursuant to
18 U.S.C. 3571, are applicable to violations of the provisions of this
part.
(b) OFAC has the authority, pursuant to IEEPA, to issue Pre-Penalty
Notices, Penalty Notices, and Findings of Violation; impose monetary
penalties; engage in settlement discussions and enter into settlements;
refer matters to the United States Department of Justice for
administrative collection; and, in appropriate circumstances, refer
matters to appropriate law enforcement agencies for criminal
investigation and/or prosecution. For more information, see appendix A
to part 501 of this chapter, which provides a general framework for the
enforcement of all economic sanctions programs administered by OFAC,
including enforcement-related definitions, types of responses to
apparent violations, general factors affecting administrative actions,
civil penalties for failure to comply with a requirement to furnish
information or keep records, and other general civil penalties
information.
Subpart H--Procedures
Sec. 582.801 Procedures.
For license application procedures and procedures relating to
amendments, modifications, or revocations of licenses; administrative
decisions; rulemaking; and requests for documents pursuant to the
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see
part 501, subpart E, of this chapter.
Sec. 582.802 Delegation of certain authorities by the Secretary of
the Treasury.
Any action that the Secretary of the Treasury is authorized to take
pursuant to Executive Order 13851 of November 27, 2018, and any further
Executive orders relating to the national
[[Page 46447]]
emergency declared therein, may be taken by the Director of OFAC or by
any other person to whom the Secretary of the Treasury has delegated
authority so to act.
Subpart I--Paperwork Reduction Act
Sec. 582.901 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. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a valid control number assigned by OMB.
Appendix A to Part 582--Executive Order 13851
Executive Order 13851 of November 27, 2018
Blocking Property of Certain Persons Contributing to the Situation
in Nicaragua
By the authority vested in me as President by the Constitution
and the laws of the United States of America, including the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)
(IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.)
(NEA), 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 the situation in Nicaragua, including the violent response
by the Government of Nicaragua to the protests that began on April
18, 2018, and the Ortega regime's systematic dismantling and
undermining of democratic institutions and the rule of law, its use
of indiscriminate violence and repressive tactics against civilians,
as well as its corruption leading to the destabilization of
Nicaragua's economy, constitutes an unusual and extraordinary threat
to the national security and foreign policy of the United States,
and I hereby declare a national emergency to deal with that threat.
I hereby determine and 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 responsible for or complicit in, or to have directly
or indirectly engaged or attempted to engage in, any of the
following:
(A) Serious human rights abuse in Nicaragua;
(B) actions or policies that undermine democratic processes or
institutions in Nicaragua;
(C) actions or policies that threaten the peace, security, or
stability of Nicaragua;
(D) any transaction or series of transactions involving
deceptive practices or corruption by, on behalf of, or otherwise
related to the Government of Nicaragua or a current or former
official of the Government of Nicaragua, such as the
misappropriation of public assets or expropriation of private assets
for personal gain or political purposes, corruption related to
government contracts, or bribery;
(ii) to be a leader or official of an entity that has, or whose
members have, engaged in any activity described in subsection (a)(i)
of this section or of an entity whose property and interests in
property are blocked pursuant to this order;
(iii) to be an official of the Government of Nicaragua or to
have served as an official of the Government of Nicaragua at any
time on or after January 10, 2007;
(iv) to have materially assisted, sponsored, or provided
financial, material, or technological support for, or goods or
services in support of:
(A) Any activities described in subsection (a)(i) of this
section; or
(B) any person whose property and interests in property are
blocked pursuant to this order; 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
order.
(b) The prohibitions in subsection (a) of this section apply
except to the extent provided by statutes, or in regulations,
orders, directives, or licenses that may be issued pursuant to this
order, and notwithstanding any contract entered into or any license
or permit granted prior to the date of this order.
Sec. 2. The unrestricted immigrant and nonimmigrant entry into
the United States of aliens determined to meet one or more of the
criteria in section 1 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 hereby
suspended, except where the Secretary of State determines that the
person's entry is in the national interest of the United States.
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. 3. I hereby determine that the making of donations of the
type of articles specified in section 203(b)(2) of IEEPA (50 U.S.C.
1702(b)(2)) by, to, or for the benefit of any person whose property
and interests in property are blocked pursuant to section 1 of this
order would seriously impair my ability to deal with the national
emergency declared in this order, and I hereby prohibit such
donations as provided by section 1 of this order.
Sec. 4. The prohibitions in section 1 of this order include:
(a) The making of any contribution or provision of funds, goods,
or services by, to, or for the benefit of any person whose property
and interests in property are blocked pursuant to this order; and
(b) the receipt of any contribution or provision of funds,
goods, or services from any such person.
Sec. 5. (a) Any transaction that evades or avoids, has the
purpose of evading or avoiding, causes a violation of, or attempts
to violate any of the prohibitions set forth in this order is
prohibited.
(b) Any conspiracy formed to violate any of the prohibitions set
forth in this order is prohibited.
Sec. 6. For the purposes of this order:
(a) The term ``person'' means an individual or entity;
(b) the term ``entity'' means a partnership, association, trust,
joint venture, corporation, group, subgroup, or other organization;
(c) the term ``United States person'' means any United States
citizen, permanent resident alien, entity organized under the laws
of the United States or any jurisdiction within the United States
(including foreign branches), or any person in the United States;
and
(d) the term ``Government of Nicaragua'' means the Government of
Nicaragua, any political subdivision, agency, or instrumentality
thereof, including the Central Bank of Nicaragua, and any person
owned or controlled by, or acting for or on behalf of, the
Government of Nicaragua.
Sec. 7. For those persons whose property and interests in
property are blocked pursuant to this order who might have a
constitutional presence in the United States, I find that because of
the ability to transfer funds or other assets instantaneously, prior
notice to such persons of measures to be taken pursuant to this
order would render those measures ineffectual. I therefore determine
that for these measures to be effective in addressing the national
emergency declared in this order, there need be no prior notice of a
listing or determination made pursuant to section 1 of this order.
Sec. 8. The Secretary of the Treasury, in consultation with the
Secretary of State, is hereby authorized to take such actions,
including promulgating 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 of the United States
Government shall take all appropriate measures within their
authority to carry out the provisions of this order.
Sec. 9. The Secretary of the Treasury, in consultation with the
Secretary of State, is hereby authorized to submit the recurring and
final reports to the Congress on the national emergency declared in
this order, consistent with section 401(c) of the NEA (50 U.S.C.
1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).
Sec. 10. (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
[[Page 46448]]
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,
November 27, 2018.
Andrea Gacki,
Director, Office of Foreign Assets Control.
Approved:
Sigal P. Mandelker,
Under Secretary, Office of Terrorism and Financial Intelligence,
Department of the Treasury.
[FR Doc. 2019-19049 Filed 9-3-19; 8:45 am]
BILLING CODE 4810-AL-P
