Illicit Drug Trade Sanctions Regulations, 77711-77720 [2022-27466]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[Federal Register Volume 87, Number 243 (Tuesday, December 20, 2022)]
[Rules and Regulations]
[Pages 77711-77720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27466]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 599


Illicit Drug Trade Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is adding regulations to implement a December 15, 2021 
illicit drug trade-related Executive order. OFAC intends to supplement 
these regulations with a more comprehensive set of regulations, which 
may include additional interpretive guidance and definitions, general 
licenses, and other regulatory provisions.

DATES: This rule is effective December 20, 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.

SUPPLEMENTARY INFORMATION: 

Electronic Availability

    This document and additional information concerning OFAC are 
available on OFAC's website: www.treas.gov/ofac.

Background

    On December 15, 2021, the President, invoking the authority of, 
inter alia, the International Emergency Economic Powers Act (50 U.S.C. 
1701 et seq.) (IEEPA) and the Fentanyl Sanctions Act (21 U.S.C. 2301 et 
seq.), issued Executive Order (E.O.) 14059, ``Imposing Sanctions on 
Foreign Persons Involved in the Global Illicit Drug Trade'' (86 FR 
71549, December 17, 2021).
    In E.O. 14059, the President found that the trafficking into the 
United States of illicit drugs, including fentanyl and other synthetic 
opioids, is causing the deaths of tens of thousands of Americans 
annually, as well as countless more non-fatal overdoses with their own 
tragic human toll. Drug cartels, transnational criminal organizations, 
and their facilitators are the primary sources of illicit drugs and 
precursor chemicals that fuel the current opioid epidemic, as well as 
drug-related violence that harms communities. The President found that 
international drug trafficking--including the illicit production, 
global sale, and widespread distribution of illegal drugs; the rise of 
extremely potent drugs such as fentanyl and other synthetic opioids; as 
well as the growing role of internet-based drug sales--constitutes an 
unusual and extraordinary threat to the national security, foreign 
policy, and economy of the United States, which requires the United 
States to modernize and update its response to drug trafficking, and 
declared a national emergency to deal with that threat.
    OFAC is issuing the Illicit Drug Trade Sanctions Regulations, 31 
CFR part 599 (the ``Regulations''), to implement E.O. 14059, pursuant 
to authorities delegated to the Secretary of the Treasury in E.O. 
14059. A copy of E.O. 14059 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 599 with a more comprehensive set 
of regulations, which may include additional interpretive guidance and 
definitions, general licenses, and other regulatory provisions. 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 E.O. 12866 of September 30, 1993, ``Regulatory Planning 
and Review'' (58 FR 51735, October 4, 1993), and 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. 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 599

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Foreign trade, Illicit drugs, Penalties, Prohibitions on 
certain credit, Investments, Loans, Purchases, or other transactions, 
Reporting and recordkeeping requirements, Sanctions, Services.

[[Page 77712]]


0
For the reasons set forth in the preamble, OFAC adds part 599 to 31 CFR 
chapter V to read as follows:

PART 599--ILLICIT DRUG TRADE SANCTIONS REGULATIONS

Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
599.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
599.201 Prohibited transactions.
599.202 Effect of transfers violating the provisions of this part.
599.203 Holding of funds in interest-bearing accounts; investment 
and reinvestment.
599.204 Expenses of maintaining blocked tangible property; 
liquidation of blocked property.
599.205 Exempt transactions.
Subpart C--General Definitions
599.300 Applicability of definitions.
599.301 Blocked account; blocked property.
599.302 Effective date.
599.303 Entity.
599.304 Financial, material, or technological support.
599.305 Financial institution.
599.306 Foreign person.
599.307 [Reserved]
599.308 Interest.
599.309 Knowingly; knows.
599.310 Licenses; general and specific.
599.311 Means of production.
599.312 OFAC.
599.313 Person.
599.314 Proliferation of illicit drugs.
599.315 Property; property interest.
599.316 Transfer.
599.317 United States.
599.318 United States person; U.S. person.
599.319 U.S. financial institution.
Subpart D--Interpretations
599.401 [Reserved]
599.402 Effect of amendment.
599.403 Termination and acquisition of an interest in blocked 
property.
599.404 Transactions ordinarily incident to a licensed transaction.
599.405 Setoffs prohibited.
599.406 Entities owned by one or more persons whose property and 
interests in property are blocked.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
599.501 General and specific licensing procedures.
599.502 Effect of license or other authorization.
599.503 Exclusion from licenses.
599.504 Payments and transfers to blocked accounts in U.S. financial 
institutions.
599.505 Entries in certain accounts for normal service charges.
599.506 Provision of certain legal services.
599.507 Payments for legal services from funds originating outside 
the United States.
599.508 Emergency medical services.
599.509 Official business of the United States Government.
599.510 Official business of certain international organizations and 
entities.
599.511 Certain transactions for maintenance, employment, and 
related banking services for blocked individuals physically located 
in the United States.
Subpart F--Reports
599.601 Records and reports.
Subpart G--Penalties and Findings of Violation
599.701 Penalties and Findings of Violation.
Subpart H--Procedures
599.801 Procedures.
599.802 Delegation of certain authorities of the Secretary of the 
Treasury.
Subpart I--Paperwork Reduction Act
599.901 Paperwork Reduction Act notice.
Appendix A to Part 599--Executive Order 14059 of December 15, 2021

    Authority:  3 U.S.C. 301; 21 U.S.C. 2301 et seq.; 31 U.S.C. 
321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 
890, as amended (28 U.S.C. 2461 note); E.O. 14059, 86 FR 71549, 
December 15, 2021.

Subpart A--Relation of This Part to Other Laws and Regulations


Sec.  599.101  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 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.  599.101.  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 guidance and definitions, general licenses, and other 
regulatory provisions.

Subpart B--Prohibitions


Sec.  599.201  Prohibited transactions.

    All transactions prohibited pursuant to E.O. 14059 of December 15, 
2021, or any further Executive orders issued pursuant to the national 
emergency declared in E.O. 14059 are prohibited pursuant to this part.

    Note 1 to Sec.  599.201.  The names of persons designated or 
identified as 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) using the following 
identifier formulation: ``[ILLICIT-DRUGS-E.O.]-E.O.[E.O. number 
pursuant to which the person's property and interests in property 
are blocked]].'' The SDN List is accessible through the following 
page on OFAC's website: www.treas.gov/sdn. Additional information 
pertaining to the SDN List can be found in appendix A to this 
chapter. See Sec.  599.406 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.  599.201.  The International Emergency Economic 
Powers Act (50 U.S.C. 1701 et seq.), 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 using the 
following identifier formulation: ``[BPI-[ILLICIT-DRUGS-E.O.]-
E.O.[E.O. number pursuant to which the person's property and 
interests in property are blocked pending investigation]].''


    Note 3 to Sec.  599.201. The names of persons on whom non-
blocking sanctions implemented by the Department of the Treasury are 
imposed pursuant to this section will be incorporated into a data 
file containing OFAC's Consolidated Non-SDN data and are provided in 
a human readable format on OFAC's Non-SDN Menu-Based Sanctions List 
(NS-MBS List) on the following page on OFAC's website: 
www.treas.gov/consolidated-sanctions-list-non-sdn-lists. These 
listings are published in the Federal Register and include specific 
information on the non-blocking sanctions imposed on such persons. 
However, for any persons on whom blocking and non-blocking sanctions 
are imposed pursuant to this section, such persons' names are 
instead incorporated into OFAC's SDN List using the identifier 
``[ILLICIT-DRUGS-E.O.-E.O.[E.O. number pursuant to which the 
person's property and interests in property are blocked]].''


    Note 4 to Sec.  599.201. Section 501.806 of this chapter 
describes the procedures to be followed by persons seeking the 
unblocking of funds that they believe were blocked due to mistaken 
identity. Section 501.807 of this chapter describes the procedures 
to be followed by persons seeking administrative

[[Page 77713]]

reconsideration of their status as persons whose property and 
interests in property are blocked, or their inclusion on the NS-MBS 
List for the imposition of non-blocking sanctions, pursuant to this 
section.

Sec.  599.202  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.  
599.201, 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.  599.201, 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.  599.201.


Sec.  599.203  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, blocked pursuant to Sec.  599.201 shall hold or place such 
funds in a blocked interest-bearing account located in the United 
States.
    (b)(1) For the 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 the 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 the 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 blocked pursuant to Sec.  599.201 
may continue to be held until maturity in the original instrument, 
provided any interest, earnings, or other proceeds derived therefrom 
are paid 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 blocked pursuant to Sec.  
599.201 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 blocked pursuant to Sec.  599.201 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.  599.201, nor may their holder 
cooperate in or facilitate the pledging or other attempted use as 
collateral of blocked funds or other assets.


Sec.  599.204  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.  599.201 
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.  599.201 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.

[[Page 77714]]

Sec.  599.205  Exempt transactions.

    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.

Subpart C--General Definitions


Sec.  599.300  Applicability of definitions.

    The definitions in this subpart apply throughout the entire part.


Sec.  599.301  Blocked account; blocked property.

    The terms blocked account and blocked property mean any account or 
property subject to the prohibitions in Sec.  599.201 held in the name 
of a person whose property and interests in property are blocked 
pursuant to Sec.  599.201, 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.  599.301.  See Sec.  599.406 concerning the 
status of property and interests in property of an entity that is 
directly or indirectly owned, whether individually or in the 
aggregate, by one or more persons whose property and interests in 
property are blocked pursuant to Sec.  599.201.

Sec.  599.302  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 
blocked pursuant to Sec.  599.201 or on whom other sanctions are 
imposed, the earlier of the date of actual or constructive notice that 
such person's property and interests in property are blocked or that 
other sanctions are imposed on such person.
    (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 or imposition of other sanctions is published 
in the Federal Register.


Sec.  599.303  Entity.

    The term entity means a partnership, association, trust, joint 
venture, corporation, group, subgroup, or other organization.


Sec.  599.304  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 section 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.


Sec.  599.305  Financial institution.

    The term financial institution includes a depository institution 
(as defined in section 3(c)(l) of the Federal Deposit Insurance Act (12 
U.S.C. 1813(c)(l))), including a branch or agency of a foreign bank (as 
defined in section 1(b)(7) of the International Banking Act of 1978 (12 
U.S.C. 3101(7))); a credit union; a securities firm, including a broker 
or dealer; an insurance company, including an agency or underwriter; 
and any other company that provides financial services.


Sec.  599.306  Foreign person.

    The term foreign person means any citizen or national of a foreign 
state (including any such individual who is also a citizen or national 
of the United States, provided such individual does not reside in the 
United States) or any entity not organized under the laws of the United 
States.


Sec.  599.307  [Reserved]


Sec.  599.308  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.  599.309  Knowingly; knows.

    The term knowingly or knows with respect to conduct, a 
circumstance, or a result, means that a person has actual knowledge, or 
should have known, of the conduct, the circumstance, or the result.


Sec.  599.310  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.treas.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.treas.gov/ofac.

    Note 1 to Sec.  599.310.  See Sec.  501.801 of this chapter on 
licensing procedures.

Sec.  599.311  Means of production.

    The term means of production includes any activities or 
transactions involving any equipment, chemical, product, or material 
that may be used, directly or indirectly, in the manufacture of illicit 
drugs or precursor chemicals.


Sec.  599.312  OFAC.

    The term OFAC means the Department of the Treasury's Office of 
Foreign Assets Control.


Sec.  599.313  Person.

    The term person means an individual or entity.


Sec.  599.314  Proliferation of illicit drugs.

    The term proliferation of illicit drugs means any illicit activity 
to produce, manufacture, distribute, sell, or knowingly finance or 
transport: narcotic drugs, controlled substances, listed chemicals, or 
controlled substance analogues, as defined in section 102 of the 
Controlled Substances Act (21 U.S.C. 802).


Sec.  599.315  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,

[[Page 77715]]

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.  599.316  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.  599.317  United States.

    The term United States means the United States, its territories and 
possessions, and all areas under the jurisdiction or authority thereof.


Sec.  599.318  United States person; U.S. person.

    The term United States person or U.S. person means any United 
States citizen, lawful permanent resident, 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.  599.319  United States financial institution.

    The term United States 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 credits, or purchasing or selling foreign exchange, 
securities, futures or options, or procuring purchasers and sellers 
thereof, as principal or agent. It includes depository institutions, 
banks, savings banks, money services businesses, operators of credit 
card systems, trust companies, insurance 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, 
dealers in precious metals, stones, or jewels, 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.  599.401  [Reserved]


Sec.  599.402  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.


Sec.  599.403  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.  599.201, such property shall no longer be 
deemed to be property blocked pursuant to Sec.  599.201, unless there 
exists in the property another interest that is blocked pursuant to 
Sec.  599.201, 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.  599.201, such property shall be deemed to be property in which 
such person has an interest and therefore blocked.


Sec.  599.404  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.  599.201; 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.  599.405  Setoffs prohibited.

    A setoff against blocked property (including a blocked account), 
whether by a U.S. financial institution or other U.S. person, is a 
prohibited transfer under Sec.  599.201 if effected after the effective 
date.


Sec.  599.406  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.  599.201 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.  
599.201, 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.  599.501  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 Counter Narcotics Trafficking sanctions 
page on OFAC's website: www.treas.gov/ofac.

[[Page 77716]]

Sec.  599.502  Effect of license or other authorization.

    (a) No license or other authorization contained in this part, or 
otherwise issued by OFAC, authorizes or validates any transaction 
effected prior to the issuance of such license or other authorization, 
unless specifically provided in such license or authorization.
    (b) No regulation, ruling, instruction, or license authorizes any 
transaction prohibited under this part unless the regulation, ruling, 
instruction, or license is issued by OFAC and specifically refers to 
this part. No regulation, ruling, instruction, or license referring to 
this part shall be deemed to authorize any transaction prohibited by 
any other part of this chapter unless the regulation, ruling, 
instruction, or license specifically refers to such part.
    (c) Any regulation, ruling, instruction, or license authorizing any 
transaction prohibited under this part has the effect of removing a 
prohibition contained in this part from the transaction, but only to 
the extent specifically stated by its terms. Unless the regulation, 
ruling, instruction, or license otherwise specifies, such an 
authorization does not create any right, duty, obligation, claim, or 
interest in, or with respect to, any property that would not otherwise 
exist under ordinary principles of law.
    (d) Nothing contained in this part shall be construed to supersede 
the requirements established under any other provision of law or to 
relieve a person from any requirement to obtain a license or other 
authorization from another department or agency of the U.S. Government 
in compliance with applicable laws and regulations subject to the 
jurisdiction of that department or agency. For example, exports of 
goods, services, or technical data that are not prohibited by this part 
or that do not require a license by OFAC nevertheless may require 
authorization by the U.S. Department of Commerce, the U.S. Department 
of State, or other agencies of the U.S. Government.
    (e) No license or other authorization contained in or issued 
pursuant to this part authorizes transfers of or payments from blocked 
property or debits to blocked accounts unless the license or other 
authorization explicitly authorizes the transfer of or payment from 
blocked property or the debit to a blocked account.
    (f) Any payment relating to a transaction authorized in or pursuant 
to this part that is routed through the U.S. financial system should 
reference the relevant OFAC general or specific license authorizing the 
payment to avoid the blocking or rejection of the transfer.


Sec.  599.503  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.  599.504  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.  
599.201 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.  599.504.  See Sec.  501.603 of this chapter for 
mandatory reporting requirements regarding financial transfers. See 
also Sec.  599.203 concerning the obligation to hold blocked funds 
in interest-bearing accounts.

Sec.  599.505  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.  599.506  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.  599.201 is authorized, provided that any receipt of 
payment of professional fees and reimbursement of incurred expenses 
must be authorized pursuant to Sec.  599.507, 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.  599.201, 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.  599.404.
    (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

[[Page 77717]]

purporting to transfer or otherwise alter or affect property or 
interests in property blocked pursuant to Sec.  599.201 is prohibited 
unless licensed pursuant to this part.

    Note 1 to Sec.  599.506.  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.

Sec.  599.507  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.  599.506(a) to 
or on behalf of any person whose property and interests in property are 
blocked pursuant to Sec.  599.201 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.  599.506(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 paragraph (a) of this section authorizes payments 
for legal services using funds in which any other person whose property 
and interests in property are blocked pursuant to Sec.  599.201, any 
other part of this chapter, or any Executive order or statute 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.  599.508  Emergency medical services.

    The provision and receipt of nonscheduled emergency medical 
services that are prohibited by this part are authorized.


Sec.  599.509  Official business of the United States Government.

    All transactions prohibited by this part that are for the conduct 
of the official business of the United States Government by employees, 
grantees, or contractors thereof are authorized.


Sec.  599.510  Official business of certain international organizations 
and entities.

    (a) All transactions prohibited by this part that are for the 
conduct of the official business of the following entities by 
employees, grantees, or contractors thereof are authorized:
    (1) The United Nations, including its Programmes, Funds, and Other 
Entities and Bodies, as well as its Specialized Agencies and Related 
Organizations;
    (2) The International Centre for Settlement of Investment Disputes 
(ICSID) and the Multilateral Investment Guarantee Agency (MIGA);
    (3) The African Development Bank Group, the Asian Development Bank, 
the European Bank for Reconstruction and Development, and the Inter-
American Development Bank Group (IDB Group), including any fund entity 
administered or established by any of the foregoing; and
    (4) The International Committee of the Red Cross and the 
International Federation of Red Cross and Red Crescent Societies.


Sec.  599.511  Certain transactions for maintenance, employment, and 
related banking services for blocked individuals physically located in 
the United States.

    (a) Individuals whose property and interests in property are 
blocked pursuant to Sec.  599.201 who are in U.S. custody or 
incarcerated in jails, prisons, or similar facilities in the United 
States (``covered individuals''), are authorized to engage in the 
following transactions within the United States:
    (1) Purchasing, making payment for, and receiving goods and 
services for their maintenance and the maintenance of their spouse or 
persons who would ordinarily share a common dwelling as a family with 
them, located in the United States, including food, clothing, housing, 
medical care, education, transportation, insurance, and utilities;
    (2) Obtaining or continuing employment and engaging in all 
transactions ordinarily incident to such employment, including receipt 
of salary and benefits;
    (3) Establishing accounts with a U.S. financial institution, or a 
commissary-type account with a prison, jail, or other similar facility, 
located in the United States, for use in connection with the 
transactions authorized in paragraphs (a)(1) and (a)(2) of this 
section; and
    (4) Receiving and making funds transfers in furtherance of the 
authorized transactions set forth in paragraphs (a)(1) through (3) of 
this section from unblocked funds originating within or outside the 
United States, provided that any funds received may not originate from 
any individual or entity whose property or interests in property are 
blocked pursuant to any part of this chapter or any Executive order or 
statute, other than the covered individual or his or her spouse or 
persons who would ordinarily share a common dwelling as a family with 
the covered individual.
    (b) Any financial institution that has established any account 
pursuant to paragraph (a)(3) of this section, excluding commissary-type 
accounts with prisons, jails, or other similar facilities, must provide 
the name and address of the financial institution, the name of the 
account holder, and the account number to OFAC within 10 business days 
of the establishment of the account.
    (c) This general license does not authorize any funds transfers to 
any location outside the United States.

    Note 1 to paragraph (c).  A covered individual has an interest 
in any funds remaining in a commissary-type account with a prison, 
jail, or other similar facility established pursuant to paragraph 
(a)(3) of this section after the covered individual is released from 
custody or incarceration.


    Note 2 to paragraph (c).  In the case of individuals who are in 
custody or incarcerated, funds transfers must be authorized by and 
consistent with the conditions, protocols, and other requirements 
established by the jail, prison, or other facility.


    Note 3 to Sec.  599.511.  The authorization in this section only 
applies to laws and regulations administered by OFAC and

[[Page 77718]]

should not be interpreted to excuse compliance with other applicable 
laws or regulations, including the immigration laws of the United 
States.

Subpart F--Reports


Sec.  599.601  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.  599.701  Penalties and Findings of Violation.

    (a) The penalties available under section 206 of the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (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.  599.801  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.  599.802  Delegation of certain authorities of the Secretary of 
the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to E.O. 14059 of December 15, 2021, and any further Executive 
orders issued pursuant to the national 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.  599.901  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 599--Executive Order 14059 of December 15, 2021

Executive Order 14059 of December 15, 2021

Imposing Sanctions on Foreign Persons Involved in the Global Illicit 
Drug Trade

    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), the Fentanyl Sanctions Act (21 U.S.C. 2301 et seq.) (FSA), 
sections 212(f) and 215(a) of the Immigration and Nationality Act of 
1952 (8 U.S.C. 1182(f) and 1185(a)), and section 301 of title 3, 
United States Code,
    I, JOSEPH R. BIDEN JR., President of the United States of 
America, find that the trafficking into the United States of illicit 
drugs, including fentanyl and other synthetic opioids, is causing 
the deaths of tens of thousands of Americans annually, as well as 
countless more non-fatal overdoses with their own tragic human toll. 
Drug cartels, transnational criminal organizations, and their 
facilitators are the primary sources of illicit drugs and precursor 
chemicals that fuel the current opioid epidemic, as well as drug-
related violence that harms our communities. I find that 
international drug trafficking--including the illicit production, 
global sale, and widespread distribution of illegal drugs; the rise 
of extremely potent drugs such as fentanyl and other synthetic 
opioids; as well as the growing role of internet-based drug sales--
constitutes an unusual and extraordinary threat to the national 
security, foreign policy, and economy of the United States. This 
serious threat requires our country to modernize and update our 
response to drug trafficking. I hereby declare a national emergency 
to deal with that threat.
    Accordingly, I hereby order:
    Section 1. (a) The Secretary of the Treasury is authorized to 
impose any of the sanctions described in section 2 of this order on 
any foreign person determined by the Secretary of the Treasury, in 
consultation with the Secretary of State, the Attorney General, and 
the Secretary of Homeland Security:
    (i) to have engaged in, or attempted to engage in, activities or 
transactions that have materially contributed to, or pose a 
significant risk of materially contributing to, the international 
proliferation of illicit drugs or their means of production; or
    (ii) to have knowingly received any property or interest in 
property that the foreign person knows:
    (A) constitutes or is derived from proceeds of activities or 
transactions that have materially contributed to, or pose a 
significant risk of materially contributing to, the international 
proliferation of illicit drugs or their means of production; or
    (B) was used or intended to be used to commit or to facilitate 
activities or transactions that have materially contributed to, or 
pose a significant risk of materially contributing to, the 
international proliferation of illicit drugs or their means of 
production.
    (b) The Secretary of the Treasury is authorized to impose any of 
the sanctions described in section 2 of this order on any foreign 
person determined by the Secretary of the Treasury, in consultation 
with the Secretary of State, the Attorney General, and the Secretary 
of Homeland Security:
    (i) to have provided, or attempted to provide, financial, 
material, or technological support for, or goods or services in 
support of:
    (A) any activity or transaction described in subsection (a)(i) 
of this section; or
    (B) any sanctioned person;
    (ii) to be or have been a leader or official of any sanctioned 
person or of any foreign person that has engaged in any activity or 
transaction described in subsection (a)(i) of this section; or
    (iii) to be owned, controlled, or directed by, or to have acted 
or purported to act for or on behalf of, directly or indirectly, any 
sanctioned person.
    (c) The Secretary of the Treasury is authorized to impose any of 
the sanctions described in section 2 of this order consistent with 
the requirements of section 7212 of the FSA (21 U.S.C. 2312) on any 
foreign person determined by the President, or by the Secretary of 
the Treasury pursuant to authority delegated by the President and in 
accordance with the terms of such delegation, to be subject to 
sanctions pursuant to section 7212 of the FSA.
    Sec. 2. When the Secretary of the Treasury, in accordance with 
the terms of section 1 of this order, has determined that a foreign 
person meets any of the criteria in section 1(a)-(c) of this order, 
the Secretary of the Treasury, in consultation with the Secretary of 
State, the Attorney General, and the Secretary of Homeland Security, 
is authorized to select one or more of the

[[Page 77719]]

sanctions set forth in subsections (a)(i)-(vi) of this section to 
impose on that foreign person.
    (a) The Secretary of the Treasury shall take the following 
actions as necessary to implement the selected sanctions:
    (i) block all property and interests in property of the 
sanctioned person 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, and provide that 
such property and interests in property may not be transferred, 
paid, exported, withdrawn, or otherwise dealt in;
    (ii) prohibit any transfers of credit or payments between 
financial institutions, or by, through, or to any financial 
institution, to the extent that such transfers or payments are 
subject to the jurisdiction of the United States and involve any 
interest of the sanctioned person;
    (iii) prohibit any United States financial institution from 
making loans or providing credit to the sanctioned person;
    (iv) prohibit any transactions in foreign exchange that are 
subject to the jurisdiction of the United States and in which the 
sanctioned person has any interest;
    (v) prohibit any United States person from investing in or 
purchasing significant amounts of equity or debt instruments of the 
sanctioned person; or
    (vi) impose on the principal executive officer or officers of 
the sanctioned person, or on persons performing similar functions 
and with similar authorities as such officer or officers, any of the 
sanctions described in subsections (a)(i)-(v) of this section that 
are applicable.
    (b) The heads of the relevant executive departments and 
agencies, in consultation with the Secretary of the Treasury, shall 
take the following actions as necessary and appropriate to implement 
the sanctions selected by the Secretary of the Treasury:
    (i) with respect to a sanctioned person that is a financial 
institution:
    (A) the Board of Governors of the Federal Reserve System and the 
Federal Reserve Bank of New York shall not designate, and shall 
rescind any prior designation of, the sanctioned person as a primary 
dealer in United States Government debt instruments; and
    (B) the sanctioned person shall not serve as an agent of the 
United States Government or serve as a repository for United States 
Government funds;
    (ii) actions required to ensure that executive departments and 
agencies shall not procure, or enter into a contract for the 
procurement of, any goods or services from the sanctioned person;
    (iii) actions required to suspend entry into the United States 
of any noncitizen whom the Secretary of the Treasury, in 
consultation with the Secretary of State, the Attorney General, and 
the Secretary of Homeland Security, determines is a leader, 
official, senior executive officer, or director of, or a shareholder 
with a controlling interest in, the sanctioned person; or
    (iv) actions required to impose on the principal executive 
officer or officers of the sanctioned person, or on persons 
performing similar functions and with similar authorities as such 
officer or officers, any of the sanctions described in subsections 
(b)(i)-(iii) of this section that are applicable.
    Sec. 3. The prohibitions in section 2 of this order 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. 4. (a) The unrestricted immigrant and nonimmigrant entry 
into the United States of noncitizens determined to meet any of the 
criteria in section l(a)-(c) of this order, and for whom the 
sanctions described in section 2(a)(i) or 2(b)(iii) of this order 
have been selected, 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 when the 
Secretary of State or the Secretary of Homeland Security, as 
appropriate, determines that the person's entry would not be 
contrary to the interests of the United States, including when the 
Secretary of State or the Secretary of Homeland Security, as 
appropriate, so determines, based on a recommendation of the 
Attorney General, that the person's entry would further important 
United States law enforcement objectives.
    (b) The Secretary of State shall implement this order as it 
applies to visas pursuant to such procedures as the Secretary of 
State, in consultation with the Secretary of Homeland Security, may 
establish.
    (c) The Secretary of Homeland Security shall implement this 
order as it applies to the entry of noncitizens pursuant to such 
procedures as the Secretary of Homeland Security, in consultation 
with the Secretary of State, may establish.
    (d) Such persons shall be treated by this section in the same 
manner 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. 5. The prohibitions in section 2(a)(i) 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. 6. (a) Any transaction that evades or avoids, has the 
purpose of evading or avoiding, causes a violation of, or attempts 
to violate any of the prohibitions set forth in this order is 
prohibited.
    (b) Any conspiracy formed to violate any of the prohibitions set 
forth in this order is prohibited.
    Sec. 7. I hereby determine that the making of donations of the 
types of articles specified in section 203(b)(2) of IEEPA (50 U.S.C. 
1702(b)(2)) by, to, or for the benefit of any person whose property 
and interests in property are blocked pursuant to this order would 
seriously impair my ability to deal with the national emergency 
declared in this order, and I hereby prohibit such donations as 
provided by section 2(a) of this order.
    Sec. 8. For the purpose of this order:
    (a) the term ``entity'' means a partnership, association, trust, 
joint venture, corporation, group, subgroup, or other organization;
    (b) the term ``financial institution'' includes a depository 
institution (as defined in section 3(c)(l) of the Federal Deposit 
Insurance Act (12 U.S.C. 1813(c)(l))), including a branch or agency 
of a foreign bank (as defined in section 1(b)(7) of the 
International Banking Act of 1978 (12 U.S.C. 3101(7))); a credit 
union; a securities firm, including a broker or dealer; an insurance 
company, including an agency or underwriter; and any other company 
that provides financial services;
    (c) the term ``foreign person'' means any citizen or national of 
a foreign state (including any such individual who is also a citizen 
or national of the United States, provided such individual does not 
reside in the United States) or any entity not organized under the 
laws of the United States;
    (d) the term ``knowingly'' or ``knows'' with respect to conduct, 
a circumstance, or a result, means that a person has actual 
knowledge, or should have known, of the conduct, the circumstance, 
or the result;
    (e) the phrase ``means of production'' includes any activities 
or transactions involving any equipment, chemical, product, or 
material that may be used, directly or indirectly, in the 
manufacture of illicit drugs or precursor chemicals;
    (f) the term ``noncitizen'' means any person who is not a 
citizen or noncitizen national of the United States;
    (g) the term ``person'' means an individual or entity;
    (h) the term ``proliferation of illicit drugs'' means any 
illicit activity to produce, manufacture, distribute, sell, or 
knowingly finance or transport: narcotic drugs, controlled 
substances, listed chemicals, or controlled substance analogues, as 
defined in section 102 of the Controlled Substances Act (21 U.S.C. 
802);
    (i) the term ``sanctioned person'' means any person sanctioned 
pursuant to this order;
    (j) the term ``United States financial institution'' means a 
financial institution (including its foreign branches) organized 
under the laws of the United States or of any jurisdiction within 
the United States or located in the United States; and
    (k) the term ``United States person'' means any United States 
citizen, lawful permanent resident, entity organized under the laws 
of the United States or any jurisdiction within the United States 
(including foreign branches), or any person in the United States.
    Sec. 9. For those persons whose property and interests in 
property are blocked pursuant to this order who might have a 
constitutional presence in the United States, I find that because of 
the ability to transfer funds or other assets instantaneously, prior 
notice to such persons of measures to be taken pursuant to this 
order would render those measures ineffectual. I therefore determine 
that for those 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 this order.
    Sec. 10. The Secretary of the Treasury, in consultation with the 
Secretary of State, the

[[Page 77720]]

Attorney General, and the Secretary of Homeland Security, is 
authorized to take such actions, including promulgating rules and 
regulations, and to employ all powers granted to the President by 
the FSA or 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 executive departments and agencies shall take all 
appropriate measures within their authority to implement the 
provisions of this order.
    Sec. 11. The Secretary of the Treasury, in consultation with the 
Secretary of State, is hereby authorized to submit 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. 12. (a) Nothing in this order shall be construed to impair 
or otherwise affect:
    (i) the authority granted by law to an executive department or 
agency, or the head thereof; or
    (ii) the functions of the Director of the Office of Management 
and Budget relating to budgetary, administrative, or legislative 
proposals.
    (b) This order shall be implemented consistent with applicable 
law and subject to the availability of appropriations.
    (c) This order is not intended to, and does not, create any 
right or benefit, substantive or procedural, enforceable at law or 
in equity by any party against the United States, its departments, 
agencies, or entities, its officers, employees, or agents, or any 
other person.

JOSEPH R. BIDEN JR.
THE WHITE HOUSE,
December 15, 2021.

Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-27466 Filed 12-19-22; 8:45 am]
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