Amendment of Applicable Schedule Amount, 3206-3207 [2022-01081]
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Federal Register / Vol. 87, No. 14 / Friday, January 21, 2022 / Rules and Regulations
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 501
Amendment of Applicable Schedule
Amount
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is issuing this final rule
to make a technical amendment to the
definition of the term ‘‘applicable
schedule amount’’ in its regulations. In
recent years, OFAC has adjusted its civil
monetary penalties (CMPs) as required
by the Federal Civil Penalties Inflation
Adjustment Act, as amended by the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015. While OFAC’s ‘‘applicable
schedule amount’’ values are not civil
monetary penalties that are required to
be adjusted pursuant to such statute,
OFAC is updating the definition of the
term ‘‘applicable schedule amount’’ so
that it will automatically rise with
OFAC’s CMPs, removing the necessity
of updating the applicable schedule
amount on an annual basis.
DATES: This rule is effective January 21,
2022.
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
Compliance & Evaluation, tel.: 202–622–
2490.
SUPPLEMENTARY INFORMATION:
SUMMARY:
jspears on DSK121TN23PROD with RULES1
Electronic Availability
This document and additional
information concerning OFAC are
available on OFAC’s website:
www.treas.gov/ofac.
Background
On September 8, 2008, OFAC issued
as an interim final rule the ‘‘Economic
Sanctions Enforcement Guidelines’’
(Enforcement Guidelines) as appendix A
to the Reporting, Procedures and
Penalties Regulations at 31 CFR part 501
(73 FR 51933, September 8, 2008). On
November 9, 2009, OFAC re-issued as a
final rule the Enforcement Guidelines
(74 FR 57593, November 9, 2009).
OFAC’s Enforcement Guidelines
provide a general framework for the
enforcement of all economic sanctions
programs administered by OFAC.
Section V.B.2.a.ii. of the Enforcement
Guidelines states that the base amount
VerDate Sep<11>2014
16:23 Jan 20, 2022
Jkt 256001
of a proposed civil penalty in a PrePenalty Notice shall be the ‘‘applicable
schedule amount,’’ subject to certain
caps noted in that section, where the
case is deemed non-egregious and the
apparent violation has come to OFAC’s
attention by means other than a
voluntary self-disclosure. Section I.B. of
the Enforcement Guidelines provides a
definition of ‘‘applicable schedule
amount.’’
Separately, as required by the Federal
Civil Penalties Inflation Adjustment Act
(1990 Pub. L. 101–410, 104 Stat. 890; 28
U.S.C. 2461 note), as amended by the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Pub. L. 114–74, 129 Stat. 599, 28
U.S.C. 2461 note) (the FCPIA Act),
OFAC has adjusted its CMPs seven
times since the FCPIA Act went into
effect on November 2, 2015: An initial
catch-up adjustment on August 1, 2016
(81 FR 43070, July 1, 2016); an
additional initial catch-up adjustment
related to CMPs for failure to comply
with a requirement to furnish
information, the late filing of a required
report, and failure to maintain records
that were inadvertently omitted from
the August 1, 2016 initial catch-up
adjustment on October 5, 2020 (85 FR
54911, September 3, 2020); and annual
adjustments on February 10, 2017 (82
FR 10434, February 10, 2017); March 19,
2018 (83 FR 11876, March 19, 2018);
June 14, 2019 (84 FR 27714, June 14,
2019); April 9, 2020 (85 FR 19884, April
9, 2020); and March 17, 2021 (86 FR
14534, March 17, 2021).
OFAC’s applicable schedule amount
values in the Enforcement Guidelines,
while not required to be adjusted
pursuant to the FCPIA Act, correspond
in certain ways with OFAC’s CMPs. As
a result, OFAC issued final rules on
August 11, 2020 (85 FR 48474, August
11, 2020) and April 12, 2021 (86 FR
18895, April 12, 2021) amending the
definition of ‘‘applicable schedule
amount’’ in section I.B. of appendix A
to 31 CFR part 501 to adjust applicable
schedule amount values for transactions
valued at $200,000 or more to
correspond with recent CMP
adjustments required by the FCPIA Act.
By a separate rule, OFAC will publish
its annual adjustment of CMPs pursuant
to the FCPIA Act for 2022. Today, OFAC
is amending the definition of
‘‘applicable schedule amount’’ in
section I.B. of appendix A to 31 CFR
part 501 to automatically adjust the
applicable schedule amount value for
transactions valued at $200,000 or more
as new CMP adjustments are published.
Specifically, OFAC is amending section
I.B.7. such that in the case of
transactions valued at $200,000 or more,
PO 00000
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Fmt 4700
Sfmt 4700
the applicable schedule amount is
equivalent to the statutory maximum
civil penalty per violation of the
International Emergency Economic
Powers Act (50 U.S.C. 1701–1706, at
1705) listed in section V.B.2.a.v of
appendix A to 31 CFR part 501. This
change is not required pursuant to the
FCPIA Act; however, OFAC is making
this change to ensure the applicable
schedule amount value continues to
correspond appropriately to OFAC’s
CMPs as the CMPs are adjusted
annually pursuant to the FCPIA Act. In
addition, OFAC is making technical
edits to the authority citation to conform
to Federal Register guidance.
Public Participation
Because this final rule imposes no
obligations on any person, but only
amends OFAC’s enforcement policy and
procedures based on existing
substantive rules, provisions of the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking, opportunity for public
participation, and delay in effective date
are inapplicable. Further, this final rule
is not a significant regulatory action for
purposes of Executive Order 12866 of
September 30, 1993, ‘‘Regulatory
Planning and Review’’ (58 FR 51735,
October 4, 1993). 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 Paperwork Reduction Act does
not apply because this rule does not
impose information collection
requirements that would require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501 et seq.
List of Subjects in 31 CFR Part 501
Administrative practice and
procedure, Banks, Banking, Blocking of
assets, Exports, Foreign trade, Licensing,
Penalties, Sanctions.
For the reasons set forth in the
preamble, OFAC amends 31 CFR part
501 as follows:
PART 501—REPORTING,
PROCEDURES AND PENALTIES
REGULATIONS
1. The authority citation for part 501
is revised to read as follows:
■
Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d,
2339B; 19 U.S.C. 3901–3913; 21 U.S.C. 1901–
1908; 22 U.S.C. 287c, 2370(a), 6009, 6032,
7205, 8501–8551; 31 U.S.C. 321(b); 50 U.S.C.
1701–1706, 4301–4341; Pub. L. 101–410, 104
Stat. 890, as amended (28 U.S.C. 2461 note).
2. In appendix A to part 501, revise
section I.B.7. to read as follows:
■
E:\FR\FM\21JAR1.SGM
21JAR1
Federal Register / Vol. 87, No. 14 / Friday, January 21, 2022 / Rules and Regulations
Appendix A to Part 501—Economic
Sanctions Enforcement Guidelines.
available on OFAC’s website:
www.treas.gov/ofac.
*
Background
On January 12, 2012, OFAC issued the
Transnational Criminal Organizations
Sanctions Regulations, 31 CFR part 590
(77 FR 1864, January 12, 2012) (the
‘‘Regulations’’), to implement Executive
Order (E.O.) 13581 of July 24, 2011,
‘‘Blocking Property of Transnational
Criminal Organizations’’ (76 FR 44757,
July 27, 2011), pursuant to authorities
delegated to the Secretary of the
Treasury in E.O. 13581. The Regulations
were initially issued in abbreviated form
for the purpose of providing immediate
guidance to the public. OFAC amended
the Regulations on July 23, 2019 (84 FR
35307, July 23, 2019) to implement E.O.
13863 of March 15, 2019, ‘‘Taking
Additional Steps to Address the
National Emergency With Respect to
Significant Transnational Criminal
Organizations’’ (84 FR 10255, March 19,
2019), which amended E.O. 13581.
OFAC is amending and reissuing the
Regulations as a more comprehensive
set of regulations that includes
additional interpretive guidance and
definitions, general licenses, and other
regulatory provisions that will provide
further guidance to the public. Due to
the number of regulatory sections being
updated or added, OFAC is reissuing
the Regulations in their entirety.
*
*
*
*
*
*
1. Definitions
*
*
*
B. * * *
7. The statutory maximum civil penalty per
violation of IEEPA listed in section V.B.2.a.v.
of this appendix with respect to a transaction
valued at $200,000 or more.
*
*
*
*
*
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022–01081 Filed 1–20–22; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 590
Transnational Criminal Organizations
Sanctions 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
Transnational Criminal Organizations
Sanctions Regulations and reissuing
them in their entirety to further
implement a July 24, 2011 Executive
order and a March 15, 2019 Executive
order related to transnational criminal
organizations. This final rule replaces
the regulations that were published in
abbreviated form on January 12, 2012
and amended on July 23, 2019, and
includes additional interpretive
guidance, definitions, general licenses,
and other regulatory provisions that will
provide further guidance to the public.
Due to the number of regulatory sections
being updated or added, OFAC is
amending and reissuing the
Transnational Criminal Organizations
Sanctions Regulations in their entirety.
DATES: This rule is effective January 21,
2022.
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.
jspears on DSK121TN23PROD with RULES1
SUMMARY:
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional
information concerning OFAC are
VerDate Sep<11>2014
16:23 Jan 20, 2022
Jkt 256001
E.O. 13581
On July 24, 2011, the President,
invoking the authority of, inter alia, the
International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.)
(IEEPA), issued E.O. 13581. In E.O.
13581, the President found that the
activities of significant transnational
criminal organizations, such as those
listed in the Annex to E.O. 13581, have
reached such scope and gravity that
they threaten the stability of
international political and economic
systems. The President further found
that such organizations are becoming
increasingly sophisticated and
dangerous to the United States; they are
increasingly entrenched in the
operations of foreign governments and
the international financial system,
thereby weakening democratic
institutions, degrading the rule of law,
and undermining economic markets.
The President stated these organizations
facilitate and aggravate violent civil
conflicts and increasingly facilitate the
activities of other dangerous persons.
The President determined that the
activities of significant transnational
criminal organizations constitute an
unusual and extraordinary threat to the
national security, foreign policy, and
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3207
economy of the United States and
declared a national emergency to deal
with that threat.
Section 1(a) of E.O. 13581 blocks,
with certain exceptions, all property
and interests in property that are in the
United States, that come within the
United States, or that are or come within
the possession or control of any United
States person of: (i) The persons listed
in the Annex to E.O. 13581; and (ii) any
person determined by the Secretary of
the Treasury, in consultation with the
Attorney General and the Secretary of
State: (A) To be a foreign person that
constitutes a significant transnational
criminal organization; (B) to have
materially assisted, sponsored, or
provided financial, material, or
technological support for, or goods or
services to or in support of any person
whose property and interests in
property are blocked pursuant to E.O.
13581; or (C) 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 E.O.
13581. The property and interests in
property of the persons described above
may not be transferred, paid, exported,
withdrawn, or otherwise dealt in.
In Section 1(b) of E.O. 13581, the
President determined that the making of
donations of certain articles, such as
food, clothing, and medicine, intended
to be used to relieve human suffering, as
specified in section 203(b)(2) of IEEPA
(50 U.S.C. 1702(b)(2)), by, to, or for the
benefit of any person whose property
and interests in property are blocked
pursuant to E.O. 13581 would seriously
impair the President’s ability to deal
with the national emergency declared in
E.O. 13581. The President therefore
prohibited the donation of such items
except to the extent provided by
statutes, or in regulations, orders,
directives, or licenses that may be
issued pursuant to E.O. 13581.
Section 1(c) of E.O. 13581 provides
that the prohibition on any transaction
or dealing in blocked property or
interests in property includes the
making of any contribution or provision
of funds, goods, or services by, to, or for
the benefit of any person whose
property and interests in property are
blocked pursuant to E.O. 13581, and the
receipt of any contribution or provision
of funds, goods, or services from any
such person.
Section 2 of E.O. 13581 prohibits any
transaction by a United States person or
within the United States 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 E.O. 13581, as
E:\FR\FM\21JAR1.SGM
21JAR1
]]>Agencies
[Federal Register Volume 87, Number 14 (Friday, January 21, 2022)]
[Rules and Regulations]
[Pages 3206-3207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01081]
[[Page 3206]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 501
Amendment of Applicable Schedule Amount
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is issuing this final rule to make a technical amendment
to the definition of the term ``applicable schedule amount'' in its
regulations. In recent years, OFAC has adjusted its civil monetary
penalties (CMPs) as required by the Federal Civil Penalties Inflation
Adjustment Act, as amended by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015. While OFAC's ``applicable
schedule amount'' values are not civil monetary penalties that are
required to be adjusted pursuant to such statute, OFAC is updating the
definition of the term ``applicable schedule amount'' so that it will
automatically rise with OFAC's CMPs, removing the necessity of updating
the applicable schedule amount on an annual basis.
DATES: This rule is effective January 21, 2022.
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
Compliance & Evaluation, tel.: 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: www.treas.gov/ofac.
Background
On September 8, 2008, OFAC issued as an interim final rule the
``Economic Sanctions Enforcement Guidelines'' (Enforcement Guidelines)
as appendix A to the Reporting, Procedures and Penalties Regulations at
31 CFR part 501 (73 FR 51933, September 8, 2008). On November 9, 2009,
OFAC re-issued as a final rule the Enforcement Guidelines (74 FR 57593,
November 9, 2009). OFAC's Enforcement Guidelines provide a general
framework for the enforcement of all economic sanctions programs
administered by OFAC. Section V.B.2.a.ii. of the Enforcement Guidelines
states that the base amount of a proposed civil penalty in a Pre-
Penalty Notice shall be the ``applicable schedule amount,'' subject to
certain caps noted in that section, where the case is deemed non-
egregious and the apparent violation has come to OFAC's attention by
means other than a voluntary self-disclosure. Section I.B. of the
Enforcement Guidelines provides a definition of ``applicable schedule
amount.''
Separately, as required by the Federal Civil Penalties Inflation
Adjustment Act (1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461
note), as amended by the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C.
2461 note) (the FCPIA Act), OFAC has adjusted its CMPs seven times
since the FCPIA Act went into effect on November 2, 2015: An initial
catch-up adjustment on August 1, 2016 (81 FR 43070, July 1, 2016); an
additional initial catch-up adjustment related to CMPs for failure to
comply with a requirement to furnish information, the late filing of a
required report, and failure to maintain records that were
inadvertently omitted from the August 1, 2016 initial catch-up
adjustment on October 5, 2020 (85 FR 54911, September 3, 2020); and
annual adjustments on February 10, 2017 (82 FR 10434, February 10,
2017); March 19, 2018 (83 FR 11876, March 19, 2018); June 14, 2019 (84
FR 27714, June 14, 2019); April 9, 2020 (85 FR 19884, April 9, 2020);
and March 17, 2021 (86 FR 14534, March 17, 2021).
OFAC's applicable schedule amount values in the Enforcement
Guidelines, while not required to be adjusted pursuant to the FCPIA
Act, correspond in certain ways with OFAC's CMPs. As a result, OFAC
issued final rules on August 11, 2020 (85 FR 48474, August 11, 2020)
and April 12, 2021 (86 FR 18895, April 12, 2021) amending the
definition of ``applicable schedule amount'' in section I.B. of
appendix A to 31 CFR part 501 to adjust applicable schedule amount
values for transactions valued at $200,000 or more to correspond with
recent CMP adjustments required by the FCPIA Act.
By a separate rule, OFAC will publish its annual adjustment of CMPs
pursuant to the FCPIA Act for 2022. Today, OFAC is amending the
definition of ``applicable schedule amount'' in section I.B. of
appendix A to 31 CFR part 501 to automatically adjust the applicable
schedule amount value for transactions valued at $200,000 or more as
new CMP adjustments are published. Specifically, OFAC is amending
section I.B.7. such that in the case of transactions valued at $200,000
or more, the applicable schedule amount is equivalent to the statutory
maximum civil penalty per violation of the International Emergency
Economic Powers Act (50 U.S.C. 1701-1706, at 1705) listed in section
V.B.2.a.v of appendix A to 31 CFR part 501. This change is not required
pursuant to the FCPIA Act; however, OFAC is making this change to
ensure the applicable schedule amount value continues to correspond
appropriately to OFAC's CMPs as the CMPs are adjusted annually pursuant
to the FCPIA Act. In addition, OFAC is making technical edits to the
authority citation to conform to Federal Register guidance.
Public Participation
Because this final rule imposes no obligations on any person, but
only amends OFAC's enforcement policy and procedures based on existing
substantive rules, provisions of the Administrative Procedure Act (5
U.S.C. 553) requiring notice of proposed rulemaking, opportunity for
public participation, and delay in effective date are inapplicable.
Further, this final rule is not a significant regulatory action for
purposes of Executive Order 12866 of September 30, 1993, ``Regulatory
Planning and Review'' (58 FR 51735, October 4, 1993). 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 Paperwork Reduction Act does not apply because this rule does
not impose information collection requirements that would require the
approval of the Office of Management and Budget under 44 U.S.C. 3501 et
seq.
List of Subjects in 31 CFR Part 501
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.
For the reasons set forth in the preamble, OFAC amends 31 CFR part
501 as follows:
PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS
0
1. The authority citation for part 501 is revised to read as follows:
Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C.
3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c, 2370(a), 6009, 6032,
7205, 8501-8551; 31 U.S.C. 321(b); 50 U.S.C. 1701-1706, 4301-4341;
Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note).
0
2. In appendix A to part 501, revise section I.B.7. to read as follows:
[[Page 3207]]
Appendix A to Part 501--Economic Sanctions Enforcement Guidelines.
* * * * *
1. Definitions
* * * * *
B. * * *
7. The statutory maximum civil penalty per violation of IEEPA
listed in section V.B.2.a.v. of this appendix with respect to a
transaction valued at $200,000 or more.
* * * * *
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-01081 Filed 1-20-22; 8:45 am]
BILLING CODE 4810-AL-P
