Publication of Web General Licenses Issued Pursuant to the Venezuela Sanctions Regulations, 76450-76451 [2020-26345]
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76450
Federal Register / Vol. 85, No. 230 / Monday, November 30, 2020 / Rules and Regulations
TKELLEY on DSKBCP9HB2PROD with RULES
Commission’s requirement that certain
commonly traded interest rate swaps and
credit default swaps be cleared following
their execution.2 The new exemptions may
be elected by several classes of counterparties
that may enter into these swaps, namely:
Sovereign nations; central banks;
‘‘international financial institutions’’ of
which sovereign nations are members; bank
holding companies, and savings and loan
holding companies, whose assets total no
more than $10 billion; and community
development financial institutions
recognized by the U.S. Treasury Department.
Today’s final rule notes that many of these
entities have actually relied on existing relief,
electing not to clear swaps that are generally
subject to the clearing requirement. I strongly
support the policy of international ‘‘comity’’
described in the final rule, recognizing that
sovereign nations and their instrumentalities
should generally not be subject to the
Commission’s regulations. I trust that by
issuing this rule, the United States, the
Federal Reserve, and other U.S. government
instrumentalities will receive the same
treatment in foreign jurisdictions.
Appendix 4—Statement of Commissioner
Dan M. Berkovitz
I am voting for the final rule codifying
certain limited exemptions from the swap
clearing requirement that currently exist
through Commission guidance or staff no
action relief. The exemptions are consistent
with longstanding Commission policies.
Analysis of available historical data shows
that the number and notional amount of
swaps that would be exempted are relatively
limited and not likely to materially impact
systemic risk. Furthermore, the swaps
exempted from clearing will be subject to
uncleared swap margin requirements, if
applicable, thereby mitigating the risks of not
clearing these swaps.
The final rule codifies in rule text
exemptions for swaps entered into by foreign
central banks, sovereign entities at the
national level, and certain international
institutions that previously have been
exempted from the clearing requirement
through no action relief or guidance. In this
regard, the final rule represents a proper
exercise of international comity in
recognition of the governmental nature and
non-speculative purposes of these sovereign
entities and international institutions.
The final rule also provides clearing
exemptions for certain interest rate swaps of
community development financial
institutions, subject to a number of
significant limits, and for swaps entered into
by bank or savings and loan holding
companies that have no more than $10
billion in consolidated assets. In each case,
the exemption only applies if the swap is
used to hedge or mitigate commercial risks.
Congress provided in Commodity Exchange
Act section 2(h)(7)(C) for an exclusion from
the clearing requirement for banks and
savings associations with less than $10
billion in assets to the extent determined by
2 The swap clearing requirement is codified in
part 50 of the Commission’s regulations (17 CFR
part 50).
VerDate Sep<11>2014
17:14 Nov 27, 2020
Jkt 253001
the Commission. It is appropriate to apply
this exemption to the holding companies of
these financial entities.
One commenter, Better Markets, expressed
concern that the number of entities that will
now have an exemption from the clearing
requirement has grown over time, leading to
the potential for greater risk, reduction in
liquidity in cleared markets, and complexity
in managing the exemptions. As described in
the preamble to the final rule, swap data
repository data indicates that over the past
several years the number and scope of swaps
entered into by these institutions that will be
included within the exemptions has been
relatively limited. Given this data, these
concerns, today, do not outweigh the benefits
of the final rule. However, the Commission
should periodically review the SDR data to
reassess whether the clearing requirement
exemptions are cumulatively having a
material impact on the extent of swap
clearing given the intent of the Dodd-Frank
Act. The Commission can then evaluate
whether, on a going forward basis, any
changes to the exemptions may be warranted.
I commend the staff of the Division of
Clearing and Risk for this well developed and
drafted final rule. The clarity and
completeness of the final release helps
establish a sound basis for the Commission
to approve the final rule.
[FR Doc. 2020–25394 Filed 11–27–20; 8:45 am]
BILLING CODE 6351–01–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 591
Publication of Web General Licenses
Issued Pursuant to the Venezuela
Sanctions Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Publication of Web General
Licenses.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing three
Venezuela-related web general licenses
in the Federal Register: General License
5C, which has been superseded, General
License 5D, which has been superseded,
and General License 5E, each of which
was previously issued on OFAC’s
website.
DATES: General License 5E was issued
on October 6, 2020 and the
authorizations in it will be effective
January 19, 2021.
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.
SUMMARY:
PO 00000
Frm 00032
Fmt 4700
Sfmt 4700
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional
information concerning OFAC are
available on OFAC’s website
(www.treasury.gov/ofac).
Background
On March 8, 2015, the President,
invoking the authority of, inter alia, the
International Emergency Economic
Powers Act (50 U.S.C. 1701–1706),
issued Executive Order (E.O.) 13692 of
March 8, 2015, ‘‘Blocking Property and
Suspending Entry of Certain Persons
Contributing to the Situation in
Venezuela’’ (80 FR 12747, March 11,
2015). In E.O. 13692, the President
found that the situation in Venezuela,
including the Government of
Venezuela’s erosion of human rights
guarantees, persecution of political
opponents, curtailment of press
freedoms, use of violence and human
rights violations and abuses in response
to antigovernment protests, and
arbitrary arrest and detention of
antigovernment protestors, as well as
the exacerbating presence of significant
public corruption, constitutes 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.
The President has issued six
additional Executive Orders pursuant to
the national emergency declared in E.O.
13692: E.O. 13808 of August 24, 2017,
‘‘Imposing Additional Sanctions With
Respect to the Situation in Venezuela’’
(82 FR 41155, August 29, 2017); E.O.
13827 of March 19, 2018, ‘‘Taking
Additional Steps to Address the
Situation in Venezuela’’ (83 FR 12469,
March 21, 2018); E.O. 13835 of May 21,
2018, ‘‘Prohibiting Certain Additional
Transactions With Respect to
Venezuela’’ (83 FR 24001, May 24,
2018); E.O. 13850 of November 1, 2018,
‘‘Blocking Property of Additional
Persons Contributing to the Situation in
Venezuela’’ (83 FR 55243, November 2,
2018); E.O. 13857 of January 25, 2019,
‘‘Taking Additional Steps To Address
the National Emergency With Respect to
Venezuela’’ (84 FR 509, January 30,
2019); and E.O. 13884 of August 5,
2019, ‘‘Blocking Property of the
Government of Venezuela’’ (84 FR
38843, August 7, 2019).
OFAC, in consultation with the
Department of State, issued Venezuelarelated General License (GL) 5 on July
19, 2018, pursuant to E.O. 13835, to
authorize certain transactions related to
the Petro´leos de Venezuela S.A. 2020
8.5 Percent Bond that were prohibited
E:\FR\FM\30NOR1.SGM
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Federal Register / Vol. 85, No. 230 / Monday, November 30, 2020 / Rules and Regulations
by Subsection 1(a)(iii) of E.O. 13835. On
October 24, 2019, OFAC issued GL 5A,
which replaced and superseded GL 5.
GL 5A delayed until January 22, 2020
the effectiveness of the authorization
that was previously contained in GL 5.
On January 17, 2020, OFAC issued GL
5B, which replaced and superseded GL
5A. GL 5B further delayed until April
22, 2020 the effectiveness of the
authorization that was previously
contained in GL 5. On April 10, 2020,
OFAC issued GL 5C, which replaced
and superseded GL 5B. GL 5C further
delayed until July 22, 2020 the
effectiveness of the authorization that
was previously contained in GL 5. On
July 15, 2020, OFAC issued GL 5D,
which replaced and superseded GL 5C.
GL 5D further delayed until October 20,
2020 the effectiveness of the
authorization that was previously
contained in GL 5. On October 6, 2020,
OFAC issued GL 5E, which replaced
and superseded GL 5D. GL 5E further
delayed until January 19, 2021 the
effectiveness of the authorization that
was previously contained in GL 5. As a
result, no transactions may be
conducted pursuant to GL 5E until
January 19, 2021. The texts of GL 5C, GL
5D, and GL 5E are provided below.
Office of Foreign Assets Control
Venezuela Sanctions Regulations 31
CFR part 591
TKELLEY on DSKBCP9HB2PROD with RULES
Authorizing Certain Transactions
Related to the Petro´leos de Venezuela,
S.A. 2020 8.5 Percent Bond on or After
July 22, 2020
(a) Except as provided in paragraph
(b) of this general license, on or after
July 22, 2020, all transactions related to,
the provision of financing for, and other
dealings in the Petro´leos de Venezuela,
S.A. 2020 8.5 Percent Bond that would
be prohibited by Subsection l(a)(iii) of
Executive Order (E.O.) 13835 of May 21,
2018, as amended by E.O. 13857 of
January 25, 2019, and incorporated into
the Venezuela Sanctions Regulations, 31
CFR part 591 (the VSR), are authorized.
(b) This general license does not
authorize any transactions or activities
otherwise prohibited by the VSR, or any
other part of 31 CFR chapter V.
(c) Effective April 10, 2020, General
License No. 5B, dated January 21, 2020,
is replaced and superseded in its
entirety by this General License No. 5C.
VerDate Sep<11>2014
17:14 Nov 27, 2020
General License No. 5D
Authorizing Certain Transactions
Related to the Petro´leos de Venezuela,
S.A. 2020 8.5 Percent Bond on or After
October 20, 2020
(a) Except as provided in paragraph
(b) of this general license, on or after
October 20, 2020, all transactions
related to, the provision of financing for,
and other dealings in the Petro´leos de
Venezuela, S.A. 2020 8.5 Percent Bond
that would be prohibited by Subsection
l(a)(iii) of Executive Order (E.O.) 13835
of May 21, 2018, as amended by E.O.
13857 of January 25, 2019, and
incorporated into the Venezuela
Sanctions Regulations, 31 CFR part 591
(the VSR), are authorized.
(b) This general license does not
authorize any transactions or activities
otherwise prohibited by the VSR, or any
other part of 31 CFR chapter V.
(c) Effective July 15, 2020, General
License No. 5C, dated April 10, 2020, is
replaced and superseded in its entirety
by this General License No. 5D.
Andrea Gacki
Director
Office of Foreign Assets Control
Dated: July 15, 2020
Office of Foreign Assets Control
Venezuela Sanctions Regulations 31
CFR part 591
General License No. 5C
Andrea Gacki
Director
Office of Foreign Assets Control
Dated: April 10, 2020
Office of Foreign Assets Control
Venezuela Sanctions Regulations 31
CFR part 591
General License No. 5E
Authorizing Certain Transactions
Related to the Petro´leos de Venezuela,
S.A. 2020 8.5 Percent Bond on or After
January 19, 2021
(a) Except as provided in paragraph
(b) of this general license, on or after
January 19, 2021, all transactions related
to, the provision of financing for, and
other dealings in the Petro´leos de
Venezuela, S.A. 2020 8.5 Percent Bond
that would be prohibited by Subsection
l(a)(iii) of Executive Order (E.O.) 13835
of May 21, 2018, as amended by E.O.
13857 of January 25, 2019, and
incorporated into the Venezuela
Sanctions Regulations, 31 CFR part 591
(the VSR), are authorized.
(b) This general license does not
authorize any transactions or activities
otherwise prohibited by the VSR, or any
other part of 31 CFR chapter V.
(c) Effective October 6, 2020, General
License No. 5D, dated July 15, 2020, is
replaced and superseded in its entirety
by this General License No. 5E.
Andrea Gacki
Director
Office of Foreign Assets Control
Jkt 253001
PO 00000
Frm 00033
Fmt 4700
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76451
Dated: October 6, 2020
Dated: November 24, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020–26345 Filed 11–27–20; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–USCG–2020–0645]
RIN 1625–AA00
Safety Zone; Neuse River, New Bern,
NC
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a temporary safety zone on
the navigable waters of the Neuse River
in New Bern, North Carolina. This
action is necessary to provide for the
safety of life on these navigable water
near New Bern, NC, during an aerobatic
airshow on December 05, 2020. This
rulemaking would prohibit persons and
vessels from being in the safety zone
unless authorized by the Captain of the
Port (COTP) North Carolina or a
designated representative.
DATES: This rule is effective December 5,
2020 from 4 p.m. through 5:30 p.m.
ADDRESSES: To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type USCG–2020–
0645 in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rule.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
email Chief Petty Officer Joshua
O’Rourke, Waterways Management
Division, U.S. Coast Guard Sector North
Carolina, Wilmington, NC; telephone
910–772–2227, email NCMarineevents@
uscg.mil.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Table of Abbreviations
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
§ Section
U.S.C. United States Code
II. Background Information and
Regulatory History
In August 2020, the UHF
Development Group informed the Coast
E:\FR\FM\30NOR1.SGM
30NOR1
]]>Agencies
[Federal Register Volume 85, Number 230 (Monday, November 30, 2020)]
[Rules and Regulations]
[Pages 76450-76451]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26345]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 591
Publication of Web General Licenses Issued Pursuant to the
Venezuela Sanctions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Publication of Web General Licenses.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is publishing three Venezuela-related web general
licenses in the Federal Register: General License 5C, which has been
superseded, General License 5D, which has been superseded, and General
License 5E, each of which was previously issued on OFAC's website.
DATES: General License 5E was issued on October 6, 2020 and the
authorizations in it will be effective January 19, 2021.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Sanctions Compliance &
Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website (www.treasury.gov/ofac).
Background
On March 8, 2015, the President, invoking the authority of, inter
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706), issued Executive Order (E.O.) 13692 of March 8, 2015, ``Blocking
Property and Suspending Entry of Certain Persons Contributing to the
Situation in Venezuela'' (80 FR 12747, March 11, 2015). In E.O. 13692,
the President found that the situation in Venezuela, including the
Government of Venezuela's erosion of human rights guarantees,
persecution of political opponents, curtailment of press freedoms, use
of violence and human rights violations and abuses in response to
antigovernment protests, and arbitrary arrest and detention of
antigovernment protestors, as well as the exacerbating presence of
significant public corruption, constitutes 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.
The President has issued six additional Executive Orders pursuant
to the national emergency declared in E.O. 13692: E.O. 13808 of August
24, 2017, ``Imposing Additional Sanctions With Respect to the Situation
in Venezuela'' (82 FR 41155, August 29, 2017); E.O. 13827 of March 19,
2018, ``Taking Additional Steps to Address the Situation in Venezuela''
(83 FR 12469, March 21, 2018); E.O. 13835 of May 21, 2018,
``Prohibiting Certain Additional Transactions With Respect to
Venezuela'' (83 FR 24001, May 24, 2018); E.O. 13850 of November 1,
2018, ``Blocking Property of Additional Persons Contributing to the
Situation in Venezuela'' (83 FR 55243, November 2, 2018); E.O. 13857 of
January 25, 2019, ``Taking Additional Steps To Address the National
Emergency With Respect to Venezuela'' (84 FR 509, January 30, 2019);
and E.O. 13884 of August 5, 2019, ``Blocking Property of the Government
of Venezuela'' (84 FR 38843, August 7, 2019).
OFAC, in consultation with the Department of State, issued
Venezuela-related General License (GL) 5 on July 19, 2018, pursuant to
E.O. 13835, to authorize certain transactions related to the
Petr[oacute]leos de Venezuela S.A. 2020 8.5 Percent Bond that were
prohibited
[[Page 76451]]
by Subsection 1(a)(iii) of E.O. 13835. On October 24, 2019, OFAC issued
GL 5A, which replaced and superseded GL 5. GL 5A delayed until January
22, 2020 the effectiveness of the authorization that was previously
contained in GL 5. On January 17, 2020, OFAC issued GL 5B, which
replaced and superseded GL 5A. GL 5B further delayed until April 22,
2020 the effectiveness of the authorization that was previously
contained in GL 5. On April 10, 2020, OFAC issued GL 5C, which replaced
and superseded GL 5B. GL 5C further delayed until July 22, 2020 the
effectiveness of the authorization that was previously contained in GL
5. On July 15, 2020, OFAC issued GL 5D, which replaced and superseded
GL 5C. GL 5D further delayed until October 20, 2020 the effectiveness
of the authorization that was previously contained in GL 5. On October
6, 2020, OFAC issued GL 5E, which replaced and superseded GL 5D. GL 5E
further delayed until January 19, 2021 the effectiveness of the
authorization that was previously contained in GL 5. As a result, no
transactions may be conducted pursuant to GL 5E until January 19, 2021.
The texts of GL 5C, GL 5D, and GL 5E are provided below.
Office of Foreign Assets Control
Venezuela Sanctions Regulations 31 CFR part 591
General License No. 5C
Authorizing Certain Transactions Related to the Petr[oacute]leos de
Venezuela, S.A. 2020 8.5 Percent Bond on or After July 22, 2020
(a) Except as provided in paragraph (b) of this general license, on
or after July 22, 2020, all transactions related to, the provision of
financing for, and other dealings in the Petr[oacute]leos de Venezuela,
S.A. 2020 8.5 Percent Bond that would be prohibited by Subsection
l(a)(iii) of Executive Order (E.O.) 13835 of May 21, 2018, as amended
by E.O. 13857 of January 25, 2019, and incorporated into the Venezuela
Sanctions Regulations, 31 CFR part 591 (the VSR), are authorized.
(b) This general license does not authorize any transactions or
activities otherwise prohibited by the VSR, or any other part of 31 CFR
chapter V.
(c) Effective April 10, 2020, General License No. 5B, dated January
21, 2020, is replaced and superseded in its entirety by this General
License No. 5C.
Andrea Gacki
Director
Office of Foreign Assets Control
Dated: April 10, 2020
Office of Foreign Assets Control
Venezuela Sanctions Regulations 31 CFR part 591
General License No. 5D
Authorizing Certain Transactions Related to the Petr[oacute]leos de
Venezuela, S.A. 2020 8.5 Percent Bond on or After October 20, 2020
(a) Except as provided in paragraph (b) of this general license, on
or after October 20, 2020, all transactions related to, the provision
of financing for, and other dealings in the Petr[oacute]leos de
Venezuela, S.A. 2020 8.5 Percent Bond that would be prohibited by
Subsection l(a)(iii) of Executive Order (E.O.) 13835 of May 21, 2018,
as amended by E.O. 13857 of January 25, 2019, and incorporated into the
Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), are
authorized.
(b) This general license does not authorize any transactions or
activities otherwise prohibited by the VSR, or any other part of 31 CFR
chapter V.
(c) Effective July 15, 2020, General License No. 5C, dated April
10, 2020, is replaced and superseded in its entirety by this General
License No. 5D.
Andrea Gacki
Director
Office of Foreign Assets Control
Dated: July 15, 2020
Office of Foreign Assets Control
Venezuela Sanctions Regulations 31 CFR part 591
General License No. 5E
Authorizing Certain Transactions Related to the Petr[oacute]leos de
Venezuela, S.A. 2020 8.5 Percent Bond on or After January 19, 2021
(a) Except as provided in paragraph (b) of this general license, on
or after January 19, 2021, all transactions related to, the provision
of financing for, and other dealings in the Petr[oacute]leos de
Venezuela, S.A. 2020 8.5 Percent Bond that would be prohibited by
Subsection l(a)(iii) of Executive Order (E.O.) 13835 of May 21, 2018,
as amended by E.O. 13857 of January 25, 2019, and incorporated into the
Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), are
authorized.
(b) This general license does not authorize any transactions or
activities otherwise prohibited by the VSR, or any other part of 31 CFR
chapter V.
(c) Effective October 6, 2020, General License No. 5D, dated July
15, 2020, is replaced and superseded in its entirety by this General
License No. 5E.
Andrea Gacki
Director
Office of Foreign Assets Control
Dated: October 6, 2020
Dated: November 24, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020-26345 Filed 11-27-20; 8:45 am]
BILLING CODE 4810-AL-P
