Cuban Assets Control Regulations, 67988-67989 [2020-23725]
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Federal Register / Vol. 85, No. 208 / Tuesday, October 27, 2020 / Rules and Regulations
carried over to be used by the nonlife
group.
(v) Example 5. P owns all of the stock
of S1 and of L1. On January 1, 2017, L1
purchases all of the stock of L2. For
2021, the group elects under section
1504(c)(2) to file a consolidated return.
For 2021, L1 is an eligible corporation
under paragraph (b)(12) of this section
but L2 is ineligible. Thus, L1 but not L2
is a member for 2021. For 2021, L2
sustains a net operating loss, which
cannot be carried back (see section
172(b)). For 2021, L2 is treated under
paragraph (d)(6) of this section as a
member of a controlled group of
corporations under section 1563 with P,
S, and L1. For 2022, L2 is eligible and
is included on the group’s consolidated
return. L2’s net operating loss for 2021
that may be carried to 2022 is not
treated under paragraph (b)(11) of this
section as having been sustained in a
separate return limitation year for
purposes of computing consolidated
LICTI of the L1–L2 life subgroup for
2022. Furthermore, the portion of L2’s
net operating loss not used under
paragraph (g)(2) of this section against
life subgroup income in 2022 may be
included in offsettable life consolidated
net operating loss under paragraph (j)(2)
and (h)(3)(i) of this section that reduces
in 2022 nonlife consolidated taxable
income (subject to the limitation in
section 172(a)) because L2’s loss in 2021
was not sustained in a separate return
limitation year under paragraph (j)(2)
and (h)(3)(ix)(A) of this section or in a
separate return year (2021) when an
election was in effect under neither
section 1504(c)(2) nor section 243(b)(3).
*
*
*
*
*
(n) Effective/applicability dates. The
rules of this section apply to taxable
years beginning after December 31,
2020. However, a taxpayer may choose
to apply the rules of this section to
taxable years beginning on or before
December 31, 2020. If a taxpayer makes
the choice described in the previous
sentence, the taxpayer must apply those
rules in their entirety and consistently
with the provisions of subchapter L of
the Internal Revenue Code applicable to
the years at issue.
Par. 5. Section 1.1503(d)–4 is
amended by:
■ 1. In paragraph (c)(3)(iii)(B), removing
the period and adding in its place a
semi-colon.
■ 2. In paragraph (c)(3)(iv), removing
the period and adding in its place ‘‘;
and’’.
■ 3. Adding paragraph (c)(3)(v).
The addition reads as follows:
jbell on DSKJLSW7X2PROD with RULES
■
VerDate Sep<11>2014
15:51 Oct 26, 2020
Jkt 253001
§ 1.1503(d)–4 Domestic use limitation and
related operating rules.
*
*
*
*
*
(c) * * *
(3) * * *
(v) The SRLY limitation is applied
without regard to § 1.1502–21(c)(1)(i)(E)
(section 172(a) limitation applicable to a
SRLY member).
*
*
*
*
*
■ Par. 6. Section 1.1503(d)–8 is
amended by adding paragraph (b)(8) to
read as follows:
§ 1.1503(d)–8
Effective dates.
*
*
*
*
*
(b) * * *
(8) Rule providing that SRLY
limitation applies without regard to
§ 1.1502–21(c)(1)(i)(E). Section
1.1503(d)–4(c)(3)(v) applies to any
period to which § 1.1502–21(c)(1)(i)(E)
applies.
Sunita Lough,
Deputy Commissioner for Services and
Enforcement.
Approved: September 29, 2020.
David J. Kautter,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2020–22974 Filed 10–23–20; 11:15 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 515
Cuban Assets Control Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is amending the Cuban
Assets Control Regulations to further
implement portions of the President’s
foreign policy toward Cuba to deny the
Cuban government access to funds in
connection with remittances to Cuba.
DATES: This rule is effective November
26, 2020.
FOR FURTHER INFORMATION CONTACT:
OFAC: Assistant Director for Licensing,
202–622–2480, Assistant Director for
Regulatory Affairs, 202–622–4855, or
Assistant Director for Sanctions
Compliance & Evaluation, 202–622–
2490.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Electronic Availability
This document and additional
information concerning OFAC are
PO 00000
Frm 00024
Fmt 4700
Sfmt 4700
available on OFAC’s website
(www.treasury.gov/ofac).
Background
The Department of the Treasury
issued the Cuban Assets Control
Regulations, 31 CFR part 515 (the
‘‘Regulations’’), on July 8, 1963, under
various authorities, including the
Trading With the Enemy Act (50 U.S.C.
4301–41). OFAC has amended the
Regulations on numerous occasions,
including to implement the President’s
foreign policy toward Cuba as set forth
in National Security Presidential
Memorandum-5, ‘‘Strengthening the
Policy of the United States Toward
Cuba,’’ signed by the President on June
16, 2017.
Today, OFAC, in consultation with
the State Department, is taking
additional action to implement the
Administration’s foreign policy toward
Cuba, as set forth in more detail below.
This rule provides for a 30-day
implementation period before it is
effective in order to allow for technical
implementation of these additional
restrictions.
Restrictions on Certain RemittanceRelated Transactions To and From Cuba
OFAC is amending the Regulations to
remove from the scope of certain
remittance-related general
authorizations any transactions
involving entities or subentities
identified on the Cuba Restricted List, as
maintained by the State Department and
published in the Federal Register. This
action is intended to restrict such
entities’ and subentities’ access to funds
obtained in connection with remittancerelated activities, including in their role
as intermediaries or in their receipt of
fees or commissions from processing
remittance transactions. Specifically,
OFAC is amending three general
licenses in Subpart E of the Regulations
to exclude from the scope of such
authorizations any transaction involving
any entity or subentity identified on the
Cuba Restricted List: (i) § 515.570,
which relates to remittances from
persons subject to U.S. jurisdiction or
from blocked accounts; (ii)
§ 515.572(a)(3), which relates to the
provision of remittance forwarding
services; and (iii) § 515.587, which
relates to remittances from Cuban
nationals to persons subject to U.S.
jurisdiction. OFAC is also amending
§ 515.421, which provides interpretative
guidance with respect to transactions
ordinarily incident to a licensed
transaction, to make clear that a
transaction relating to the collection,
forwarding, or receipt of remittances
involving any entity or subentity
E:\FR\FM\27OCR1.SGM
27OCR1
Federal Register / Vol. 85, No. 208 / Tuesday, October 27, 2020 / Rules and Regulations
identified on the Cuba Restricted List is
not authorized as an ordinarily incident
transaction where the terms of the
general or specific license expressly
exclude any such transactions. Because
the amendments to §§ 515.570,
515.572(a)(3), and 515.587 expressly
exclude these remittance-related
transactions involving any entity or
subentity on the Cuba Restricted List,
upon the effective date of this rule, such
transactions will not be authorized as
ordinarily incident to licensed
transactions under those provisions.
OFAC is also adding a clarifying note in
§ 515.209 consistent with the amended
§ 515.421.
Public Participation
Because the amendment of the
Regulations involves a foreign affairs
function, the provisions of Executive
Order 12866 and the Administrative
Procedure Act (5 U.S.C. 553) requiring
notice of proposed rulemaking,
opportunity for public participation,
and delay in effective date, as well as
the provisions of Executive Order
13771, are inapplicable. Because no
notice of proposed rulemaking is
required for this rule, the Regulatory
Flexibility Act (5 U.S.C. 601–12) does
not apply.
jbell on DSKJLSW7X2PROD with RULES
Paperwork Reduction Act
The collections of information related
to the Regulations are contained in 31
CFR part 501 (the ‘‘Reporting,
Procedures and Penalties Regulations’’)
and § 515.572 of this part. Pursuant to
the Paperwork Reduction Act of 1995
(44 U.S.C. 3507), those collections of
information are covered by the Office of
Management and Budget under control
numbers 1505–0164, 1505–0167, and
1505–0168. 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 515
Administrative practice and
procedure, Banks, Banking, Blocking of
assets, Cuba, Export, Financial
transactions, Remittances, Reporting
and recordkeeping requirements.
For the reasons set forth in the
preamble, the Department of the
Treasury’s Office of Foreign Assets
Control amends 31 CFR part 515 as
follows:
PART 515—CUBAN ASSETS
CONTROL REGULATIONS
1. The authority citation for part 515
continues to read as follows:
■
VerDate Sep<11>2014
15:51 Oct 26, 2020
Jkt 253001
Authority: 22 U.S.C. 2370(a), 6001–6010,
7201–7211; 31 U.S.C. 321(b); 50 U.S.C. 4301–
4341; Pub. L. 101–410, 104 Stat. 890 (28
U.S.C. 2461 note); 22 U.S.C. 6021–6091; Pub.
L. 105–277, 112 Stat. 2681; Pub. L. 111–8,
123 Stat. 524; Pub. L. 111–117, 123 Stat.
3034; E.O. 9989, 13 FR 4891, 3 CFR, 1943–
1948 Comp., p. 748; Proc. 3447, 27 FR 1085,
3 CFR, 1959–1963 Comp., p. 157; E.O. 12854,
58 FR 36587, 3 CFR, 1993 Comp., p. 614.
Subpart B—Prohibitions
2. Amend § 515.209 as follows:
a. Redesignate Note to § 515.209 as
Note 1 to § 515.209.
■ b. Add new Note 2 to § 515.209.
The addition reads as follows:
■
■
§ 515.209 Restrictions on direct financial
transactions with certain entities and
subentities.
*
*
*
*
*
Note 2 to § 515.209: A transaction relating
to the collection, forwarding, or receipt of
remittances involving an entity or subentity
identified on the Cuba Restricted List is not
authorized as a transaction ordinarily
incident to a licensed transaction where the
terms of the applicable general or specific
license expressly exclude any such
transactions. See §§ 515.570, 515.572(a)(3),
and 515.587.
Subpart D—Interpretations
3. Amend § 515.421 as follows:
a. In paragraph (a)(5), remove ‘‘or’’ at
the end of the paragraph.
■ b. In paragraph (a)(6), remove the
period at the end of the paragraph and
add in its place ‘‘; or’’.
■ c. Add paragraph (a)(7).
The addition reads as follows:
■
■
§ 515.421 Transactions ordinarily incident
to a licensed transaction.
(a) * * *
(7) A transaction relating to the
collection, forwarding, or receipt of
remittances involving any entity or
subentity identified on the Cuba
Restricted List, as published in the
Federal Register and maintained by the
State Department and available at
https://www.state.gov/cuba-sanctions/
cuba-restricted-list/, where the terms of
the applicable general or specific license
expressly exclude any such
transactions.
*
*
*
*
*
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
(j) Remittance transactions with
entities or subentities on the Cuba
Restricted List prohibited. Nothing in
paragraphs (a) through (i) authorizes a
transaction relating to the collection,
forwarding, or receipt of remittances
involving any entity or subentity
identified on the Cuba Restricted List, as
published in the Federal Register and
maintained by the State Department and
available at https://www.state.gov/cubasanctions/cuba-restricted-list/.
*
*
*
*
*
5. In § 515.572 amend paragraph (a)(3)
by adding a sentence at the end of the
paragraph to read as follows:
■
§ 515.572 Provision of travel, carrier, other
transportation-related, and remittance
forwarding services.
(a) * * *
(3) * * * Nothing in this paragraph
(a)(3) authorizes a transaction relating to
the collection, forwarding, or receipt of
remittances involving any entity or
subentity identified on the Cuba
Restricted List, as published in the
Federal Register and maintained by the
State Department and available at
https://www.state.gov/cuba-sanctions/
cuba-restricted-list/.’’
*
*
*
*
*
6. Amend § 515.587 by adding a
sentence at the end of the section to
read as follows:
■
§ 515.587 Remittances from Cuban
nationals to persons subject to U.S.
jurisdiction.
* * * Nothing in this paragraph
authorizes a transaction relating to the
collection, forwarding, or receipt of
remittances involving any entity or
subentity identified on the Cuba
Restricted List, as published in the
Federal Register and maintained by the
State Department and available at
https://www.state.gov/cuba-sanctions/
cuba-restricted-list/.’’
*
*
*
*
*
Dated: October 22, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020–23725 Filed 10–23–20; 11:15 am]
BILLING CODE 4810–AL–P
4. Amend § 515.570 as follows:
a. Redesignate paragraph (j) as
paragraph (k).
■ b. Add new paragraph (j).
The addition reads as follows:
■
■
§ 515.570
*
PO 00000
*
Remittances.
*
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*
Fmt 4700
*
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67989
E:\FR\FM\27OCR1.SGM
27OCR1
]]>Agencies
[Federal Register Volume 85, Number 208 (Tuesday, October 27, 2020)]
[Rules and Regulations]
[Pages 67988-67989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23725]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 515
Cuban Assets Control Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is amending the Cuban Assets Control Regulations to
further implement portions of the President's foreign policy toward
Cuba to deny the Cuban government access to funds in connection with
remittances to Cuba.
DATES: This rule is effective November 26, 2020.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480, Assistant Director for Regulatory Affairs,
202-622-4855, or Assistant Director for Sanctions Compliance &
Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website (www.treasury.gov/ofac).
Background
The Department of the Treasury issued the Cuban Assets Control
Regulations, 31 CFR part 515 (the ``Regulations''), on July 8, 1963,
under various authorities, including the Trading With the Enemy Act (50
U.S.C. 4301-41). OFAC has amended the Regulations on numerous
occasions, including to implement the President's foreign policy toward
Cuba as set forth in National Security Presidential Memorandum-5,
``Strengthening the Policy of the United States Toward Cuba,'' signed
by the President on June 16, 2017.
Today, OFAC, in consultation with the State Department, is taking
additional action to implement the Administration's foreign policy
toward Cuba, as set forth in more detail below. This rule provides for
a 30-day implementation period before it is effective in order to allow
for technical implementation of these additional restrictions.
Restrictions on Certain Remittance-Related Transactions To and From
Cuba
OFAC is amending the Regulations to remove from the scope of
certain remittance-related general authorizations any transactions
involving entities or subentities identified on the Cuba Restricted
List, as maintained by the State Department and published in the
Federal Register. This action is intended to restrict such entities'
and subentities' access to funds obtained in connection with
remittance-related activities, including in their role as
intermediaries or in their receipt of fees or commissions from
processing remittance transactions. Specifically, OFAC is amending
three general licenses in Subpart E of the Regulations to exclude from
the scope of such authorizations any transaction involving any entity
or subentity identified on the Cuba Restricted List: (i) Sec. 515.570,
which relates to remittances from persons subject to U.S. jurisdiction
or from blocked accounts; (ii) Sec. 515.572(a)(3), which relates to
the provision of remittance forwarding services; and (iii) Sec.
515.587, which relates to remittances from Cuban nationals to persons
subject to U.S. jurisdiction. OFAC is also amending Sec. 515.421,
which provides interpretative guidance with respect to transactions
ordinarily incident to a licensed transaction, to make clear that a
transaction relating to the collection, forwarding, or receipt of
remittances involving any entity or subentity
[[Page 67989]]
identified on the Cuba Restricted List is not authorized as an
ordinarily incident transaction where the terms of the general or
specific license expressly exclude any such transactions. Because the
amendments to Sec. Sec. 515.570, 515.572(a)(3), and 515.587 expressly
exclude these remittance-related transactions involving any entity or
subentity on the Cuba Restricted List, upon the effective date of this
rule, such transactions will not be authorized as ordinarily incident
to licensed transactions under those provisions. OFAC is also adding a
clarifying note in Sec. 515.209 consistent with the amended Sec.
515.421.
Public Participation
Because the amendment of the Regulations involves a foreign affairs
function, the provisions of Executive Order 12866 and the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date, as well as the provisions of Executive Order 13771, are
inapplicable. Because no notice of proposed rulemaking is required for
this rule, the Regulatory Flexibility Act (5 U.S.C. 601-12) 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'') and Sec. 515.572 of this part. Pursuant to the
Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those collections of
information are covered by the Office of Management and Budget under
control numbers 1505-0164, 1505-0167, and 1505-0168. 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 515
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Cuba, Export, Financial transactions, Remittances, Reporting
and recordkeeping requirements.
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR part 515 as
follows:
PART 515--CUBAN ASSETS CONTROL REGULATIONS
0
1. The authority citation for part 515 continues to read as follows:
Authority: 22 U.S.C. 2370(a), 6001-6010, 7201-7211; 31 U.S.C.
321(b); 50 U.S.C. 4301-4341; Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); 22 U.S.C. 6021-6091; Pub. L. 105-277, 112 Stat.
2681; Pub. L. 111-8, 123 Stat. 524; Pub. L. 111-117, 123 Stat. 3034;
E.O. 9989, 13 FR 4891, 3 CFR, 1943-1948 Comp., p. 748; Proc. 3447,
27 FR 1085, 3 CFR, 1959-1963 Comp., p. 157; E.O. 12854, 58 FR 36587,
3 CFR, 1993 Comp., p. 614.
Subpart B--Prohibitions
0
2. Amend Sec. 515.209 as follows:
0
a. Redesignate Note to Sec. 515.209 as Note 1 to Sec. 515.209.
0
b. Add new Note 2 to Sec. 515.209.
The addition reads as follows:
Sec. 515.209 Restrictions on direct financial transactions with
certain entities and subentities.
* * * * *
Note 2 to Sec. 515.209: A transaction relating to the
collection, forwarding, or receipt of remittances involving an
entity or subentity identified on the Cuba Restricted List is not
authorized as a transaction ordinarily incident to a licensed
transaction where the terms of the applicable general or specific
license expressly exclude any such transactions. See Sec. Sec.
515.570, 515.572(a)(3), and 515.587.
Subpart D--Interpretations
0
3. Amend Sec. 515.421 as follows:
0
a. In paragraph (a)(5), remove ``or'' at the end of the paragraph.
0
b. In paragraph (a)(6), remove the period at the end of the paragraph
and add in its place ``; or''.
0
c. Add paragraph (a)(7).
The addition reads as follows:
Sec. 515.421 Transactions ordinarily incident to a licensed
transaction.
(a) * * *
(7) A transaction relating to the collection, forwarding, or
receipt of remittances involving any entity or subentity identified on
the Cuba Restricted List, as published in the Federal Register and
maintained by the State Department and available at https://www.state.gov/cuba-sanctions/cuba-restricted-list/, where the terms of
the applicable general or specific license expressly exclude any such
transactions.
* * * * *
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
4. Amend Sec. 515.570 as follows:
0
a. Redesignate paragraph (j) as paragraph (k).
0
b. Add new paragraph (j).
The addition reads as follows:
Sec. 515.570 Remittances.
* * * * *
(j) Remittance transactions with entities or subentities on the
Cuba Restricted List prohibited. Nothing in paragraphs (a) through (i)
authorizes a transaction relating to the collection, forwarding, or
receipt of remittances involving any entity or subentity identified on
the Cuba Restricted List, as published in the Federal Register and
maintained by the State Department and available at https://www.state.gov/cuba-sanctions/cuba-restricted-list/.
* * * * *
0
5. In Sec. 515.572 amend paragraph (a)(3) by adding a sentence at the
end of the paragraph to read as follows:
Sec. 515.572 Provision of travel, carrier, other transportation-
related, and remittance forwarding services.
(a) * * *
(3) * * * Nothing in this paragraph (a)(3) authorizes a transaction
relating to the collection, forwarding, or receipt of remittances
involving any entity or subentity identified on the Cuba Restricted
List, as published in the Federal Register and maintained by the State
Department and available at https://www.state.gov/cuba-sanctions/cuba-restricted-list/.''
* * * * *
0
6. Amend Sec. 515.587 by adding a sentence at the end of the section
to read as follows:
Sec. 515.587 Remittances from Cuban nationals to persons subject to
U.S. jurisdiction.
* * * Nothing in this paragraph authorizes a transaction relating
to the collection, forwarding, or receipt of remittances involving any
entity or subentity identified on the Cuba Restricted List, as
published in the Federal Register and maintained by the State
Department and available at https://www.state.gov/cuba-sanctions/cuba-restricted-list/.''
* * * * *
Dated: October 22, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020-23725 Filed 10-23-20; 11:15 am]
BILLING CODE 4810-AL-P
