Syrian Sanctions Regulations, 48310-48324 [2024-12317]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[Federal Register Volume 89, Number 110 (Thursday, June 6, 2024)]
[Rules and Regulations]
[Pages 48310-48324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12317]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 542


Syrian 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 adopting a final rule amending the Syrian Sanctions 
Regulations to, among other things, implement the relevant provisions 
of a May 1, 2012 Executive order regarding foreign sanctions evaders 
with respect to Syria and Iran, and certain provisions of the Iran 
Threat Reduction and Syria Human Rights Act of 2012, the Countering 
America's Adversaries Through Sanctions Act, and the Caesar Syria 
Civilian Protection Act of 2019. In addition to new prohibitions, OFAC 
is adding several relevant definitions and interpretations and one new 
general license. OFAC is also incorporating, with amendments, one 
general license, which has until now appeared only on OFAC's website, 
and updating six general licenses.

DATES: This rule is effective June 6, 2024.

FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for 
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs, 
202-622-4855; or Assistant Director for Compliance, 202-622-2490.

SUPPLEMENTARY INFORMATION:

Electronic Availability

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

Background

    On April 5, 2005, OFAC issued the Syrian Sanctions Regulations, 31 
CFR part 542 (70 FR 17201, April 5, 2005) (the ``Regulations''), to 
implement Executive Order (E.O.) 13338 of May 11, 2004, ``Blocking 
Property of Certain Persons and Prohibiting the Export of Certain Goods 
to Syria'' (69 FR 26751, May 13, 2004), pursuant to authorities 
delegated to the Secretary of the Treasury in E.O. 13338. The 
Regulations were initially issued in abbreviated form for the purpose 
of providing immediate guidance to the public. On May 2, 2014, OFAC 
reissued the Regulations in their entirety (79 FR 25414, May 2, 2014), 
and, among other things, implemented E.O. 13399 of April 25, 2006 
(``Blocking Property of Additional Persons in Connection With the 
National Emergency With Respect to Syria'') (71 FR 25059, April 28, 
2006), E.O. 13460 of February 13, 2008 (``Blocking Property of 
Additional Persons in Connection With the National Emergency With 
Respect to Syria'') (73 FR 8991, February 15, 2008), E.O. 13572 of 
April 29, 2011 (``Blocking Property of Certain Persons With Respect to 
Human Rights Abuses in Syria'') (76 FR 24787, May 3, 2011), E.O. 13573 
of May 18, 2011 (``Blocking Property of Senior Officials of the 
Government of Syria '') (76 FR 29143, May 20, 2011), E.O. 13582 of 
August 17, 2011 (``Blocking Property of the Government of Syria and

[[Page 48311]]

Prohibiting Certain Transactions With Respect to Syria'') (76 FR 52209, 
August 22, 2011), and E.O. 13606 of April 22, 2012 (``Blocking the 
Property and Suspending Entry Into the United States of Certain Persons 
With Respect to Grave Human Rights Abuses by the Governments of Iran 
and Syria via Information Technology'') (77 FR 24571, April 24, 2012). 
OFAC has amended the Regulations several times, most recently on 
November 26, 2021 to expand an authorization related to certain 
activities of nongovernmental organizations in Syria (86 FR 67324, 
November 26, 2021).
    In this document, OFAC is further amending the Regulations to 
implement E.O. 13608 of May 1, 2012, ``Prohibiting Certain Transactions 
With and Suspending Entry Into the United States of Foreign Sanctions 
Evaders With Respect to Iran and Syria'' (77 FR 26409, May 3, 2012), 
the Syria Human Rights Accountability Act of 2012 (22 U.S.C. 8791 et 
seq.) (SHRAA), the Countering America's Adversaries Through Sanctions 
Act (22 U.S.C. 9401 et seq.) (CAATSA), and the Caesar Syria Civilian 
Protection Act of 2019 (Pub. L. 116-92, Div. F, Title LXXIV, 133 Stat. 
2290 (22 U.S.C. 8791 note)) (Caesar Act).

Executive and Statutory Authorities

    On May 11, 2004, the President, invoking the authority of, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701 
et seq.) (IEEPA) and the Syria Accountability and Lebanese Sovereignty 
Restoration Act of 2003 (Pub. L. 108-175, 117 Stat. 2482 (22 U.S.C. 
2151 note)), issued E.O. 13338. In E.O. 13338, the President determined 
that the actions of the Government of Syria in supporting terrorism, 
continuing its occupation of Lebanon, pursuing weapons of mass 
destruction and missile programs, and undermining United States and 
international efforts with respect to the stabilization and 
reconstruction of Iraq constituted an unusual and extraordinary threat 
to the national security, foreign policy, and economy of the United 
States and declared a national emergency to deal with that threat.
    The national emergency declared in E.O. 13338 was subsequently 
modified in scope and relied upon for additional steps in E.O.s 13399, 
13460, 13572, 13573, 13582, 13606, and 13608, which were issued 
pursuant to, inter alia, IEEPA, and, among other things, blocked the 
property and interests in property that are or come within the United 
States or the possession or control of a U.S. person of the Government 
of Syria as well as of persons determined to meet certain criteria 
related to Syria, including persons engaged in human rights abuses. In 
addition, E.O. 13582 imposed new investment, services-related, and 
petroleum-related prohibitions involving Syria.
    E.O. 13608. On May 1, 2012, the President, invoking the authority 
of, inter alia, IEEPA, issued E.O. 13608, in which he found that 
efforts by foreign persons to engage in activities intended to evade 
U.S. economic and financial sanctions with respect to Iran and Syria 
undermine our efforts to address the national emergencies declared in, 
among others, E.O. 13338, as modified in scope and relied on for 
additional steps in subsequent Executive orders, and took additional 
steps pursuant to these national emergencies.
    Section 1(a) of E.O. 13608 authorizes the Secretary of the 
Treasury, in consultation with the Secretary of State, to impose the 
measures described in section 1(b) of E.O. 13608 on a foreign person 
upon determining that the foreign person: (i) has violated, attempted 
to violate, conspired to violate, or caused a violation of any license, 
order, regulation, or prohibition contained in, or issued pursuant to: 
(A) any Executive order relating to the national emergencies declared 
in E.O. 12957 of March 15, 1995, or in E.O. 13338 of May 11, 2004, as 
modified in scope in subsequent Executive orders; or (B) to the extent 
such conduct relates to property and interests in property of any 
person subject to United States sanctions concerning Iran or Syria, 
E.O. 13382 of June 28, 2005, any Executive order subsequent to E.O. 
13382 of June 28, 2005, that relates to the national emergency declared 
in E.O. 12938 of November 14, 1994, or any Executive order relating to 
the national emergency declared in E.O. 13224 of September 23, 2001; 
(ii) has facilitated deceptive transactions for or on behalf of any 
person subject to United States sanctions concerning Iran or Syria; or 
(iii) is owned or controlled by, or is acting or purporting to act for 
or on behalf of, directly or indirectly, any person determined to meet 
the criteria set forth in section 1(a) of E.O. 13608.
    Section 1(b) of E.O. 13608 describes the measures that the 
Secretary of the Treasury, in consultation with the Secretary of State, 
may impose on foreign persons determined to meet the criteria of 
section 1(a) of E.O. 13608. The measures that the Secretary of the 
Treasury may impose with respect to such foreign persons include 
prohibiting all transactions or dealings, whether direct or indirect, 
involving such person, including any exporting, reexporting, importing, 
selling, purchasing, transporting, swapping, brokering, approving, 
financing, facilitating, or guaranteeing, in or related to (i) any 
goods, services, or technology in or intended for the United States, or 
(ii) any goods, services, or technology provided by or to United States 
persons, wherever located.
    In section 2 of E.O. 13608, the President determined that the 
making of donations of the type of articles specified in section 
203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)), by, to, or for the benefit 
of any person subject to the measures described in section 1 of E.O. 
13608, would seriously impair the President's ability to deal with the 
national emergency declared in E.O. 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. 13608.
    Section 3 of E.O. 13608 provides that the prohibitions in section 1 
of E.O. 13608 include the making of any contribution or provision of 
funds, goods, or services by, to, or for the benefit of any person 
subject to the measures described in E.O. 13608, and the receipt of any 
contribution or provision of funds, goods, or services from any such 
person.
    Section 5 of E.O. 13608 prohibits any transaction by a U.S. 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. 13608, as well as any conspiracy 
formed to violate such prohibitions.
    Section 6 of E.O. 13608 provides that nothing in section 1 of E.O. 
13608 shall prohibit transactions for the conduct of the official 
business of the United States government by employees, grantees, or 
contractors thereof.
    Section 9 of E.O. 13608 authorizes the Secretary of the Treasury, 
in consultation with the Secretary of State, to take such actions, 
including the promulgation of rules and regulations, and to employ all 
powers granted to the President by IEEPA, as may be necessary to carry 
out the purposes of the order. This section also provides that the 
Secretary of the Treasury may redelegate any of these functions to 
other officers and agencies of the U.S. government.
    Syria Human Rights Accountability Act of 2012 (SHRAA). On August 
10, 2012, the President signed the SHRAA into law as Title VII of the 
Iran Threat Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-
158, Title VII, sec. 705, Aug. 10, 2012, 126 Stat. 1268.) (22

[[Page 48312]]

U.S.C. 8791 et seq.). Among other things, the SHRAA requires the 
President to impose sanctions including blocking of property, subject 
to such regulations as the President may prescribe, on persons included 
in a report to Congress that the President determined, among other 
things: (i) are officials of the Government of Syria or persons acting 
on behalf of the Government of Syria who are responsible for or 
complicit in, or responsible for ordering, controlling, or otherwise 
directing, the commission of serious human rights abuses against 
citizens of Syria or their family members, regardless of whether such 
abuses occurred in Syria; (ii) on or after August 10, 2012, have 
knowingly engaged in the transfer, or the facilitation of the transfer, 
to Syria of goods or technologies that the President determines are 
likely to be used by the Government of Syria or any of its agencies or 
instrumentalities to commit human rights abuses against the people of 
Syria, including certain firearms and ammunition, law enforcement 
equipment, surveillance technology, or sensitive technology, or have 
knowingly provided services with respect to such goods or technologies 
after such goods or technologies are transferred to Syria, as well as 
successor entities and certain persons that own or control or are owned 
or controlled by such persons, even if not included in the report; or 
(iii) have engaged in censorship, or activities relating to censorship, 
in a manner that prohibits, limits, or penalizes the legitimate 
exercise of freedom of expression by citizens of Syria.
    On October 9, 2012, the President delegated to the Secretary of the 
Treasury, in consultation with or at the recommendation of the 
Secretary of State, certain authorities with respect to the 
determinations and the imposition of IEEPA sanctions set out in the 
SHRAA. Further, the President delegated to the Secretary of State, in 
consultation with the Secretary of the Treasury, certain authorities 
with respect to the submission of reports set out in the SHRAA.
    Countering America's Adversaries Through Sanctions Act. On August 
2, 2017, the President signed CAATSA into law. Section 234(a) of CAATSA 
(22 U.S.C. 9528(a)), requires the President to impose sanctions, 
including blocking of property, on any foreign person determined by the 
President to, on or after August 2, 2017, have knowingly exported, 
transferred, or otherwise provided to Syria significant financial, 
material, or technological support that contributes materially to the 
ability of the Government of Syria to acquire or develop certain 
weapons or defense articles, as well as on any foreign person that is a 
successor entity to, is owned or controlled by, or has acted for or on 
behalf of, a foreign person sanctioned for engaging in such activities.
    On September 29, 2017, the President delegated the functions and 
authorities vested in the President by section 234(a) of CAATSA to the 
Secretary of State and the Secretary of the Treasury, to be exercised 
commensurate with authorizations in previous Presidential actions. In 
addition, the President delegated the functions and authorities vested 
in the President by section 234(b)(1) of CAATSA (22 U.S.C. 9528(b)(1)), 
which sets forth the blocking of property as an available sanction, to 
the Secretary of the Treasury, in consultation with the Secretary of 
State.
    Caesar Syria Civilian Protection Act of 2019. On December 20, 2019, 
the President signed the Caesar Act into law as Title LXXIV of the 
National Defense Authorization Act for Fiscal Year 2020 (Pub. L. 116-
92, Div. F, Title LXXIV, 133 Stat. 2290 (22 U.S.C. 8791 note)). Among 
other things, section 7412 of the Caesar Act requires the President to 
impose sanctions, including blocking of property, on any foreign person 
determined by the President to knowingly, on or after June 17, 2020, 
engage in certain activities, including to knowingly provide 
significant financial, material, or technological support to, or 
knowingly engage in a significant transaction with, the Government of 
Syria, a senior political figure of the Government of Syria, a foreign 
person that is a military contractor, mercenary, or paramilitary force 
in certain cases, or a foreign person subject to U.S. sanctions laws 
with respect to Syria.
    On March 31, 2020, the President delegated to the Secretary of the 
Treasury, in consultation with Secretary of State, certain authorities 
with respect to the determinations and the imposition of IEEPA 
sanctions set out in the Caesar Act.

Current Regulatory Action

    OFAC is amending the Regulations to implement the provisions 
related to Syria of E.O. 13608, SHRAA, CAATSA, and the Caesar Act 
described above. In subpart B of the Regulations, which implements the 
prohibitions contained in the various Executive orders and statutes, 
OFAC is adding to Sec.  542.201 the prohibitions set forth pursuant to 
sections 702 through 704 of the SHRAA; section 234 of CAATSA; section 
7412 of the Caesar Act; and the prohibitions contained in any further 
Executive orders issued pursuant to the national emergency declared in 
E.O. 13338. In addition, OFAC is adding Sec.  542.212 to the 
Regulations to implement the restrictions on foreign persons determined 
to be foreign sanctions evaders pursuant to sections 1 and 5 of E.O. 
13608. Persons blocked pursuant to Sec.  542.201, including persons 
blocked pursuant to the criteria being added to Sec.  542.201 through 
this amendment, are referred to throughout the Regulations as ``persons 
whose property and interests in property are blocked pursuant to Sec.  
542.201.'' The names of persons designated or identified as blocked 
pursuant to Sec.  542.201 are published on OFAC's Specially Designated 
Nationals and Blocked Persons List (SDN List), which is accessible via 
OFAC's website, and published in the Federal Register. The names of 
persons who are determined to be subject to the prohibitions of Sec.  
542.212 are published on OFAC's Foreign Sanctions Evaders (FSE) List, 
which is also accessible via OFAC's website, and published in the 
Federal Register. Also in subpart B, OFAC is adding to Sec.  542.211 a 
paragraph that explains that the exemptions of the section do not apply 
to persons blocked pursuant to the authority of the United Nations 
Participation Act, as well as adding the exemption relating to the 
official business of the United States Government in section 6 of E.O. 
13608 and the exemption relating to the importation of goods in section 
7434 of the Caesar Act.
    In subpart C of the Regulations, new definitions are being added 
for the terms ``construction or engineering services,'' ``deceptive 
transaction,'' ``foreign person,'' ``knowingly,'' ``person subject to 
United States sanctions concerning Syria,'' and ``sensitive 
technology.'' Because these new definitions were inserted in 
alphabetical order, the definitions that were in the prior set of 
regulations have been renumbered. In subpart D, which contains 
interpretive sections regarding the Regulations, Sec.  542.405 has been 
renamed and updated to reflect that the receipt of services from a 
person whose property and interests in property are blocked pursuant to 
Sec.  542.201 is also prohibited pursuant to Sec.  542.201. OFAC is 
also adding two new interpretive sections: Sec.  542.414 provides 
guidance on significant or significance; and Sec.  542.415 clarifies 
that foreign persons will not be subject to sanctions pursuant to 
certain sections solely on the basis of a transaction for which a U.S. 
person would not require a specific license.
    In subpart E, which sets forth general licenses and statements of 
licensing

[[Page 48313]]

policy for transactions otherwise prohibited by the Regulations but 
found to be consistent with U.S. policy, OFAC is adding a new general 
license at Sec.  542.534 to authorize any transaction prohibited 
pursuant to Sec.  542.212 due to the involvement of a person determined 
to be subject to the prohibitions of Sec.  542.212, to the same extent 
such transaction would be authorized for a person whose property and 
interests in property are blocked pursuant to Sec.  542.201 by a 
general license issued pursuant to this part.
    OFAC is also incorporating, in new Sec.  542.533, Syria General 
License 22, which authorizes activities in certain economic sectors in 
non-regime held areas of northeast and northwest Syria and was 
previously issued only on OFAC's website. General License 22 was issued 
on May 12, 2022 and will be removed from OFAC's website upon 
publication of this rule.
    OFAC is also updating the general license at Sec.  542.511 for the 
export of certain services incident to internet-based communications to 
reflect changes in the technologies that underlie modern communication 
tools. These changes include listing additional technologies that are 
deemed incident to the exchange of communications over the internet and 
expanding the scope of the authorization to cover the exportation or 
reexportation of services incident to the exportation or reexportation 
of software or hardware incident to the exchange of communications over 
the internet. The authorization is also being updated to explicitly 
exclude the direct or indirect exportation of web-hosting services that 
are for websites of commercial entities located in Syria or of domain 
name registration services for or on behalf of the Government of Syria 
or a person whose property and interests in property are blocked 
pursuant to Sec.  542.201. The updated Sec.  542.511 also includes a 
statement of licensing policy providing a case-by-case review standard 
for applications for the exportation or reexportation of services, 
including services incident to the exportation or reexportation of 
software or hardware, that are incident to communications, involve the 
telecommunications sector, or that support internet freedom in Syria. 
Accordingly, OFAC is also removing the statement of licensing policy on 
activities related to the telecommunications sector that previously 
appeared at Sec.  542.527 and reserving the section.
    As a continuation of OFAC's efforts to ensure that humanitarian 
assistance and related trade continues to reach at-risk populations 
through legitimate and transparent channels, while maintaining the 
effective use of targeted sanctions, OFAC is amending two general 
licenses at Sec. Sec.  542.513 and 542.516. In Sec.  542.513, which 
authorizes official business of certain international organizations and 
entities, OFAC is removing the requirement that contractors or grantees 
must provide a copy of their contract or grant and identifying 
additional international organizations and entities covered. In Sec.  
542.516, which authorizes certain services in support of 
nongovernmental organizations' activities, OFAC is revising the 
authorization to align more closely with similar authorizations in 
other parts of 31 CFR chapter V.
    OFAC is also revising general licenses at: Sec.  542.507, to 
clarify that U.S. persons do not need to obtain specific authorization 
to provide services related to authorized legal services; Sec.  
542.508, to remove the requirements that U.S. persons provide a copy of 
the engagement letter to OFAC prior to receiving payment and submit 
quarterly reports, and to instead require U.S. persons to retain 
records of such payments for five years; and Sec.  542.531, to align 
the authorization for emergency medical services with similar 
authorizations in other parts of 31 CFR chapter V.
    OFAC is reissuing subpart G, Penalties, to add Sec.  542.705, which 
describes Findings of Violations, and make other technical updates to 
the subpart (for example, to account for submission by email). OFAC is 
also reorganizing the part by moving Sec. Sec.  542.601, 541.801, and 
542.901 to subpart A, revising and moving Sec.  542.802 to subpart A, 
renaming the subpart, reserving subpart F, and removing subparts H and 
I. Finally, throughout the part, OFAC is making technical and 
conforming updates to certain provisions and updating cross references.

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 542

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Credit, Foreign trade, Investments, Penalties, Reporting and 
recordkeeping requirements, Sanctions, Securities, Services, Syria.

    For the reasons set forth in the preamble, OFAC amends 31 CFR part 
542 as follows:

PART 542--SYRIAN SANCTIONS REGULATIONS

0
1. The authority citation for part 542 is revised to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2332d; 22 
U.S.C. 287c; 22 U.S.C. 8791-8793; 22 U.S.C. 9528; 50 U.S.C. 1601-
1651, 1701-1706; Pub. L. 108-175 (22 U.S.C. 2151 note); Pub. L. 116-
92, Div. F, Title LXXIV, 133 Stat. 2291 (22 U.S.C. 8791 note); Pub. 
L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note); E.O. 
13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 168; E.O. 13399, 71 FR 
25059, 3 CFR, 2006 Comp., p. 218; E.O. 13460, 73 FR 8991, 3 CFR 2008 
Comp., p. 181; E.O. 13572, 76 FR 24787, 3 CFR 2011 Comp., p. 236; 
E.O. 13573, 76 FR 29143, 3 CFR 2011 Comp., p. 241; E.O. 13582, 76 FR 
52209, 3 CFR 2011 Comp., p. 264; E.O. 13606, 77 FR 24571, 3 CFR 2012 
Comp., p. 243; E.O.13608, 77 FR 26409, 3 CFR, 2012 Comp., p. 252.


0
2. Revise the heading of subpart A to read as follows:

Subpart A--General Provisions


Sec. Sec.  542.601, 542.801, and 542.901  [Redesignated as Sec. Sec.  
542.102 through 542.104]

0
3. Redesignate Sec. Sec.  542.601, 542.801, and 542.901 as Sec. Sec.  
542.102 through 542.104, respectively.


Sec.  542.105   [Added and Reserved]

0
4. Add reserved Sec.  542.105.

0
5. Add Sec.  542.106 to read as follows:


Sec.  542.106  Delegation of certain authorities of the Secretary of 
the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant

[[Page 48314]]

to E.O. 13338 of May 11, 2004, and any further Executive orders 
relating to the national emergency declared therein, any action that 
the Secretary of the Treasury is authorized to take pursuant to the 
Presidential Memorandum of October 9, 2012: Delegation of Certain 
Functions and Authorities under the Iran Threat Reduction and Syria 
Human Rights Act of 2012; the Presidential Memorandum of September 29, 
2017: Memorandum on Delegation of Certain Functions and Authorities 
Under the Countering America's Adversaries Through Sanctions Act of 
2017, the Ukraine Freedom Support Act of 2014, and the Support for the 
Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine 
Act of 2014; or the Presidential Memorandum of March 31, 2020: 
Delegation of Certain Functions and Authorities Under the National 
Defense Authorization Act for Fiscal Year 2020, 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 B--Prohibitions

0
6. Revise and republish Sec.  542.201 to read as follows:


Sec.  542.201   Prohibited transactions involving blocked property.

    (a) 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 U.S. person are blocked and may not be 
transferred, paid, exported, withdrawn, or otherwise dealt in:
    (1) E.O. 13582. The Government of Syria and any person determined 
by the Secretary of the Treasury, in consultation with the Secretary of 
State:
    (i) To have materially assisted, sponsored, or provided financial, 
material, or technological support for, or goods or services in support 
of, the Government of Syria or any other person whose property and 
interests in property are blocked pursuant to this paragraph (a)(1); or
    (ii) To be owned or controlled by, or to have acted or purported to 
act for or on behalf of, directly or indirectly, the Government of 
Syria or any other person whose property and interests in property are 
blocked pursuant to this paragraph (a)(1).
    (2) E.O. 13338, as amended by E.O. 13460. Any person determined by 
the Secretary of the Treasury, in consultation with the Secretary of 
State:
    (i) To be or to have been directing or otherwise significantly 
contributing to the Government of Syria's provision of safe haven to or 
other support for any person whose property and interests in property 
are blocked under United States law for terrorism-related reasons, 
including, but not limited to, Hamas, Hizballah, Palestinian Islamic 
Jihad, the Popular Front for the Liberation of Palestine, the Popular 
Front for the Liberation of Palestine-General Command, and any persons 
designated pursuant to E.O. 13224 of September 23, 2001;
    (ii) To be or to have been directing or otherwise significantly 
contributing to the Government of Syria's military or security presence 
in Lebanon;
    (iii) To be or to have been directing or otherwise significantly 
contributing to the Government of Syria's pursuit of the development 
and production of chemical, biological, or nuclear weapons and medium- 
and long-range surface-to-surface missiles;
    (iv) To be or to have been responsible for or otherwise 
significantly contributing to actions taken or decisions made by the 
Government of Syria that have the purpose or effect of undermining 
efforts to stabilize Iraq or of allowing the use of Syrian territory or 
facilities to undermine efforts to stabilize Iraq; or
    (v) To be owned or controlled by, or acting or purporting to act 
for or on behalf of, directly or indirectly, any person whose property 
or interests in property are blocked pursuant this paragraph (a)(2).
    (3) E.O. 13399. Any person determined by the Secretary of the 
Treasury, in consultation with the Secretary of State:
    (i) To be, or to have been, involved in the planning, sponsoring, 
organizing, or perpetrating of:
    (A) The terrorist act in Beirut, Lebanon, that resulted in the 
assassination of former Lebanese Prime Minister Rafiq Hariri and the 
deaths of 22 others; or
    (B) Any other bombing, assassination, or assassination attempt in 
Lebanon since October 1, 2004, that is related to Hariri's 
assassination or that implicates the Government of Syria or its 
officers or agents;
    (ii) To have obstructed or otherwise impeded the work of the 
Commission established pursuant to United Nations Security Council 
Resolution 1595 of April 7, 2005;
    (iii) To have materially assisted, sponsored, or provided 
financial, material, or technological support for, or goods or services 
in support of, any such terrorist act, bombing, or assassination 
attempt, or any person designated pursuant to this paragraph (a)(3); or
    (iv) To be owned or controlled by, or acting or purporting to act 
for or on behalf of, directly or indirectly, any person designated 
pursuant to this paragraph (a)(3).
    (4) E.O. 13460. Any person determined by the Secretary of the 
Treasury, in consultation with the Secretary of State, to be 
responsible for, to have engaged in, to have facilitated, or to have 
secured improper advantage as a result of, public corruption by senior 
officials within the Government of Syria.
    (5) E.O. 13572 Annex. The persons listed in the Annex to E.O. 13572 
of April 29, 2011.
    (6) E.O. 13572. Any person determined by the Secretary of the 
Treasury, in consultation with the Secretary of State:
    (i) To be responsible for or complicit in, or responsible for 
ordering, controlling, or otherwise directing, or to have participated 
in, the commission of human rights abuses in Syria, including those 
related to repression;
    (ii) To be a senior official of an entity whose property and 
interests in property are blocked pursuant to paragraph (a)(5) of this 
section or this paragraph (a)(6);
    (iii) To have materially assisted, sponsored, or provided 
financial, material, or technological support for, or goods or services 
in support of, the activities described in paragraph (a)(6)(i) of this 
section or any person whose property and interests in property are 
blocked pursuant to paragraph (a)(2) of this section or paragraphs 
(a)(4) and (5) of this section and this paragraph (a)(6); or
    (iv) 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 paragraphs 
(a)(4) and (5) of this section and this paragraph (a)(6).
    (7) E.O. 13573 Annex. The persons listed in the Annex to E.O. 13573 
of May 18, 2011.
    (8) E.O. 13573. Any person determined by the Secretary of the 
Treasury, in consultation with the Secretary of State:
    (i) To be a senior official of the Government of Syria;
    (ii) To be an agency or instrumentality of the Government of Syria, 
or owned or controlled, directly or indirectly, by the Government of 
Syria or by an official or officials of the Government of Syria;
    (iii) To have materially assisted, sponsored, or provided 
financial, material, or technological support for, or goods or services 
in support of, any person whose property and interests in

[[Page 48315]]

property are blocked pursuant to paragraph (a)(7) of this section or 
this paragraph (a)(8); or
    (iv) 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 paragraph 
(a)(7) of this section or this paragraph (a)(8).
    (9) E.O. 13606 Annex. The persons listed in the Annex to E.O. 13606 
of April 22, 2012.
    (10) E.O. 13606. Any person determined by the Secretary of the 
Treasury, in consultation with or at the recommendation of the 
Secretary of State:
    (i) To have operated, or to have directed the operation of, 
information and communications technology that facilitates computer or 
network disruption, monitoring, or tracking that could assist in or 
enable serious human rights abuses by or on behalf of the Government of 
Syria;
    (ii) To have sold, leased, or otherwise provided, directly or 
indirectly, goods, services, or technology to Syria likely to be used 
to facilitate computer or network disruption, monitoring, or tracking 
that could assist in or enable serious human rights abuses by or on 
behalf of the Government of Syria;
    (iii) To have materially assisted, sponsored, or provided 
financial, material, or technological support for, or goods or services 
in support of, the activities described in paragraph (a)(10)(i) or (ii) 
of this section, or any person whose property and interests in property 
are blocked pursuant to paragraph (a)(9) of this section or this 
paragraph (a)(10); or
    (iv) 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 paragraph 
(a)(9) of this section or this paragraph (a)(10).
    (11) Syria Human Rights Accountability Act of 2012. (i) A person 
that is included by the Secretary of State, in consultation with the 
Secretary of Treasury, in the list submitted pursuant to section 702(b) 
of the Syria Human Rights Accountability Act of 2012 (22 U.S.C. 
8791(b)) (SHRAA), because the person is an official of the Government 
of Syria or a person acting on behalf of the Government of Syria, that 
is determined by the Secretary of the Treasury, in consultation with or 
at the recommendation of the Secretary of State, based on credible 
evidence, to be responsible for or complicit in, or responsible for 
ordering, controlling, or otherwise directing, the commission of 
serious human rights abuses against citizens of Syria or their family 
members, regardless of whether such abuses occurred in Syria;
    (ii) A person that is included by the Secretary of State, in 
consultation with the Secretary of Treasury, in the list submitted 
pursuant to section 703(b) of the SHRAA (22 U.S.C. 8792(b)), because 
the person is determined by the Secretary of the Treasury, in 
consultation with or at the recommendation of the Secretary of State, 
to have knowingly engaged in one of the following activities on or 
after August 10, 2012:
    (A) The transfer, or the facilitation of the transfer of, goods or 
technologies described in paragraph (a)(11)(ii)(C) of this section to 
Syria; or
    (B) The provision of services with respect to goods or technologies 
described in paragraph (a)(11)(ii)(C) of this section after such goods 
or technologies are transferred to Syria.
    (C) Goods or technologies described in paragraphs (a)(11)(ii)(A) 
and (B) of this section are goods or technologies that the Secretary of 
the Treasury, in consultation with or at the recommendation of the 
Secretary of State, determines are likely to be used by the Government 
of Syria or any of its agencies or instrumentalities to commit human 
rights abuses against the people of Syria, including:
    (1) Firearms or ammunition (as those terms are defined in 18 U.S.C. 
921), rubber bullets, police batons, pepper or chemical sprays, stun 
grenades, electroshock weapons, tear gas, water cannons, or 
surveillance technology; or
    (2) Sensitive technology, as defined in Sec.  542.320;
    (iii) A person that the Secretary of Treasury, in consultation with 
or at the recommendation of the Secretary of State, determines:
    (A) Is a successor entity to a person blocked pursuant to paragraph 
(a)(11)(ii) of this section;
    (B) Owns or controls a person blocked pursuant to paragraph 
(a)(11)(ii) of this section, if the person that owns or controls such 
blocked person had actual knowledge, or should have known, that the 
blocked person engaged in the activity described in paragraph 
(a)(11)(ii) for which the person was blocked pursuant to paragraph 
(a)(11)(ii); or
    (C) Is owned or controlled by, or under common ownership or control 
with, a person blocked pursuant to paragraph (a)(11)(ii) of this 
section, if the person owned or controlled by, or under common 
ownership or control with (as the case may be), the person blocked 
pursuant to paragraph (a)(11)(ii) knowingly engaged in the activity 
described in paragraph (a)(11)(ii) for which the person was blocked 
pursuant to paragraph (a)(11)(ii); or
    (iv) A person that is included by the Secretary of State, in 
consultation with the Secretary of the Treasury, in the list submitted 
pursuant to section 704(b) of the SHRAA (22 U.S.C. 8793(b)), because 
the person is determined by the Secretary of the Treasury, in 
consultation with or at the recommendation of the Secretary of State, 
to have engaged in censorship, or activities relating to censorship, in 
a manner that prohibits, limits, or penalizes the legitimate exercise 
of freedom of expression by citizens of Syria.
    (12) Section 234 of the Countering America's Adversaries Through 
Sanctions Act (22 U.S.C. 9528). (i) A foreign person determined by the 
Secretary of the State, in consultation with the Secretary of the 
Treasury, to have, on or after August 2, 2017, knowingly exported, 
transferred, or otherwise provided to Syria, significant financial, 
material, or technological support that contributes materially to the 
ability of the Government of Syria to:
    (A) Acquire or develop chemical, biological, or nuclear weapons or 
related technologies;
    (B) Acquire or develop ballistic or cruise missile capabilities;
    (C) Acquire or develop destabilizing numbers and types of advanced 
conventional weapons;
    (D) Acquire significant defense articles, defense services, or 
defense information (as such terms are defined under the Arms Export 
Control Act (22 U.S.C. 2751 et seq.); or
    (E) Acquire those items designated as items on the United States 
Munitions List under section 38(a)(1) of the Arms Export Control Act 
(22 U.S.C. 2778(a)(1));
    (ii) A foreign person determined by the Secretary of the Treasury, 
in consultation with the Secretary of State, to be a successor entity 
to a foreign person described in paragraph (a)(12)(i) of this section; 
or
    (iii) A foreign person determined by the Secretary of the Treasury, 
in consultation with the Secretary of State, to be owned or controlled 
by, or to have acted for or on behalf of, a foreign person described in 
paragraph (a)(12)(i) of this section.
    (13) Section 7412 of the Caesar Syria Civilian Protection Act of 
2019. Any foreign person that the Secretary of the Treasury, in 
consultation with the Secretary of State, determines knowingly engages 
in one of the

[[Page 48316]]

following activities on or after June 17, 2020:
    (i) Knowingly provides significant financial, material, or 
technological support to, or knowingly engaged in a significant 
transaction with:
    (A) The Government of Syria (including any entity owned or 
controlled by the Government of Syria) or a senior political figure of 
the Government of Syria;
    (B) A foreign person that is a military contractor, mercenary, or a 
paramilitary force knowingly operating in a military capacity inside 
Syria for or on behalf of the Government of Syria, the Government of 
the Russian Federation, or the Government of Iran; or
    (C) A foreign person subject to sanctions pursuant to International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to 
Syria or any other provision of law that imposes sanctions with respect 
to Syria;
    (ii) Knowingly sells or provides significant goods, services, 
technology, information, or other support that significantly 
facilitates the maintenance or expansion of the Government of Syria's 
domestic production of natural gas, petroleum, or petroleum products;
    (iii) Knowingly sells or provides aircraft or spare aircraft parts 
that are used for military purposes in Syria for or on behalf of the 
Government of Syria to any foreign person operating in an area directly 
or indirectly controlled by the Government of Syria or foreign forces 
associated with the Government of Syria;
    (iv) Knowingly provides significant goods or services associated 
with the operation of aircraft that are used for military purposes in 
Syria for or on behalf of the Government of Syria to any foreign person 
operating in an area described in paragraph (a)(13)(iii) of this 
section; or
    (v) Knowingly, directly or indirectly, provides significant 
construction or engineering services to the Government of Syria.
    (b) The prohibitions in paragraph (a) of this section include 
prohibitions on the following transactions:
    (1) 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 paragraph (a) of this 
section; and
    (2) The receipt of any contribution or provision of funds, goods, 
or services from any person whose property and interests in property 
are blocked pursuant to paragraph (a) of this section.
    (c) Unless authorized by this part or by a specific license 
expressly referring to this part, any dealing in securities (or 
evidence thereof) held within the possession or control of a U.S. 
person and either registered or inscribed in the name of, or known to 
be held for the benefit of, or issued by, the Government of Syria or 
any other person whose property and interests in property are blocked 
pursuant to paragraph (a) of this section is prohibited. The 
prohibition in paragraph (a) includes the transfer (including the 
transfer on the books of any issuer or agent thereof), disposition, 
transportation, importation, exportation, or withdrawal of, or the 
endorsement or guaranty of signatures on, any securities on or after 
the effective date. The prohibition in paragraph (a) applies 
irrespective of the fact that at any time (whether prior to, on, or 
subsequent to the effective date) the registered or inscribed owner of 
any such securities may have or might appear to have assigned, 
transferred, or otherwise disposed of the securities.
    (d) The prohibitions in paragraph (a) of this section apply except 
to the extent provided by statutes, or in regulations, rulings, 
instructions, orders, directives, or licenses that may be issued 
pursuant to this part, and notwithstanding any contract entered into or 
any license or permit granted prior to the effective date.
    (e) All transactions prohibited pursuant to any Executive order 
issued after May 1, 2012 pursuant to the national emergency declared in 
E.O. 13338 of May 11, 2004, are prohibited pursuant to this part.

    Note 1 to Sec.  542.201.  The names of persons designated or 
identified as blocked pursuant to E.O. 13338, E.O. 13399, E.O. 
13460, E.O. 13572, E.O. 13573, E.O. 13582, E.O. 13606, or any 
further Executive orders issued pursuant to the national emergency 
declared in E.O. 13338, whose property and interests in property 
therefore are blocked pursuant to this section, are published in the 
Federal Register and incorporated into OFAC's Specially Designated 
Nationals and Blocked Persons List (SDN List) using the following 
identifiers: for E.O. 13338, E.O. 13399, E.O. 13460, E.O. 13572, 
E.O. 13573, or E.O. 13582: ``[SYRIA]''; for E.O. 13606: ``[HRIT-
SY]''; and for any further Executive orders issued pursuant to the 
national emergency declared in E.O. 13338: using the identifier 
formulation ``[SYRIA-E.O.[E.O. number pursuant to which the person's 
property and interests in property are blocked]].'' The names of 
persons designated or identified as blocked pursuant to the Syria 
Human Rights Accountability Act of 2012, whose property and 
interests in property therefore are blocked pursuant to this 
section, are published in the Federal Register and incorporated into 
the SDN List with the identifier ``[SYRIA-TRA].'' The names of 
persons designated or identified as blocked pursuant to Section 
234(a) of the Countering America's Adversaries Through Sanctions 
Act, whose property and interests in property therefore are blocked 
pursuant to this section, are published in the Federal Register and 
incorporated into the SDN List with the identifier ``[CAATSA-
SYRIA].'' The names of persons designated or identified as blocked 
pursuant to Section 7412 of the Caesar Syria Civilian Protection Act 
of 2019 (``Caesar Act''), whose property and interests in property 
therefore are blocked pursuant to this section, are published in the 
Federal Register and incorporated into the SDN List with the 
identifier ``[SYRIA-CAESAR].'' E.O. 13582 blocks the property and 
interests in property of the Government of Syria, as defined in 
Sec.  542.308. The property and interests in property of persons who 
meet the definition of the term Government of Syria are blocked 
pursuant to paragraph (a) of this section regardless of whether the 
names of such persons are published in the Federal Register or 
incorporated into the SDN List. Certain transactions with persons 
blocked pursuant to paragraph (a) of this section may result in the 
imposition of secondary sanctions pursuant to the Caesar Act, and 
therefore such blocked persons' entries on the SDN List will be 
updated to include the descriptive prefix text ``Secondary sanctions 
risk:'', followed by information about the applicable secondary 
sanctions authority. The SDN List is accessible through the 
following page on OFAC's website: https://ofac.treasury.gov. 
Additional information pertaining to the SDN List can be found in 
appendix A to this chapter. See Sec.  542.411 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.  542.201.  Section 203 of the International 
Emergency Economic Powers Act (50 U.S.C. 1702) authorizes the 
blocking of property and interests in property of a person during 
the pendency of an investigation. Except as described in note 3 to 
this section, the names of persons whose property and interests in 
property are blocked pending investigation pursuant to this section 
are published in the Federal Register and incorporated into the SDN 
List using the following identifiers: for E.O. 13338, E.O. 13399, 
E.O. 13460, E.O. 13572, E.O. 13573, or E.O. 13582: ``[BPI-SYRIA]''; 
for E.O. 13606: ``[BPI-HRIT-SY]''; for the Syria Human Rights 
Accountability Act of 2012: ``[BPI-SYRIA-TRA]''; for Section 234 of 
the Countering America's Adversaries Through Sanctions Act: ``[BPI-
CAATSA-SYRIA]''; for Section 7412 of the Caesar Syria Civilian 
Protection Act of 2019: ``[BPI-CAESAR]''; or for any further 
Executive orders issued pursuant to the national emergency declared 
in E.O. 13338: using the identifier formulation ``[BPI-SYRIA-
E.O.[E.O. number pursuant to which the person's property and 
interests in property are blocked pending investigation]].''


    Note 3 to Sec.  542.201. Subpart E of part 501 of this chapter 
describes the procedures to be followed for the unblocking of 
property and interests in property blocked pursuant to this section, 
including funds blocked due to mistaken identity or typographical or 
similar

[[Page 48317]]

errors, and for administrative reconsideration of one's status as a 
person whose property and interests in property are blocked pursuant 
to this section.

Sec.  542.206  [Amended]

0
7. Amend Sec.  542.206 by removing ``Sec.  542.311'' and adding in its 
place ``Sec.  542.315''.

0
8. Amend Sec.  542.211 as follows:
0
a. Redesignate paragraphs (a) through (e) as paragraphs (b) through 
(f), respectively.
0
b. Add new paragraph (a).
0
c. In newly redesignated paragraph (c)(1), remove ``Sec.  542.307'' and 
add in its place ``Sec.  542.310''.
0
d. Redesignate notes 1 and 2 to paragraph (b)(3) of Sec.  542.211 as 
notes 2 and 3 to paragraph (c)(3).
0
e. Revise newly redesignated paragraph (e).
0
f. In newly redesignated paragraph (f), add a heading and redesignate 
the note to paragraph (e) of Sec.  542.211 as note 5 to paragraph (f).
0
g. Adding paragraph (g).
    The revision and addition read as follows:


Sec.  542.211  Exempt transactions.

    (a) United Nations Participation Act. The exemptions described in 
this section do not apply to transactions involving property or 
interests in property of persons whose property and interests in 
property are blocked pursuant to the authority of the United Nations 
Participation Act, as amended (22 U.S.C. 287c(b)) (UNPA).

    Note 1 to paragraph (a). Persons whose property and interests in 
property are blocked pursuant to the authority of the UNPA include 
those listed on both OFAC's Specially Designated Nationals and 
Blocked Persons List (SDN List) and the Consolidated United Nations 
Security Council Sanctions List (UN List) (see https://www.un.org), 
as well as persons listed on the SDN List for being owned or 
controlled by, or acting for or on behalf of, persons listed on both 
the SDN List and the UN List.

* * * * *
    (e) Official business. The prohibitions contained in Sec. Sec.  
542.201(a)(1), (9), and (10), as well as Sec. Sec.  542.206, 542.207, 
542.208, 542.209, 542.210, and 542.212 do not apply to transactions for 
the conduct of the official business of the United States government by 
employees, grantees, or contractors thereof.

    Note 4 to paragraph (e).  See Sec.  542.522 for a general 
license authorizing transactions for the conduct of the official 
business of the United States Government.

    (f) Inapplicability of exemptions. * * *
    (g) Importation of goods. The prohibitions contained in Sec.  
542.201(a) do not apply to the importation of any goods that would 
otherwise be prohibited solely because of the interest of a person 
whose property and interests in property are blocked solely pursuant to 
Sec.  542.201(a)(13). For the purposes of this paragraph (g), the term 
good(s) means any article, natural or manmade substance, material, 
supply or manufactured product, including inspection and test 
equipment, and excluding technical data.

0
9. Add Sec.  542.212 to read as follows:


Sec.  542.212  Prohibited transactions involving foreign sanctions 
evaders.

    (a) Pursuant to E.O. 13608, the Secretary of the Treasury, in 
consultation with the Secretary of State, may determine that a foreign 
person:
    (1) Has violated, attempted to violate, conspired to violate, or 
caused a violation of any license, order, regulation, or prohibition 
contained in, or issued pursuant to:
    (i) Any Executive order relating to the national emergency declared 
in E.O. 13338 of May 11, 2004, as modified in scope in subsequent 
Executive orders; or
    (ii) To the extent such conduct relates to property and interests 
in property of any person subject to United States sanctions concerning 
Syria, E.O. 13382 of June 28, 2005, any Executive order subsequent to 
E.O. 13382 of June 28, 2005, that relates to the national emergency 
declared in E.O. 12938 of November 14, 1994, or any Executive order 
relating to the national emergency declared in E.O. 13224 of September 
23, 2001;
    (2) Has facilitated deceptive transactions for or on behalf of any 
person subject to United States sanctions concerning Syria; or
    (3) Is owned or controlled by, or is acting or purporting to act 
for or on behalf of, directly or indirectly, any person determined to 
meet the criteria set forth in this paragraph (a).
    (b) Upon determining that a foreign person is subject to paragraph 
(a) of this section, the Secretary of the Treasury may prohibit all 
transactions or dealings, whether direct or indirect, involving such 
person, including any exporting, reexporting, importing, selling, 
purchasing, transporting, swapping, brokering, approving, financing, 
facilitating, or guaranteeing, in or related to:
    (1) Any goods, services, or technology in or intended for the 
United States; or
    (2) Any goods, services, or technology provided by or to United 
States persons, wherever located.

    Note 1 to paragraph (b).  The names of persons subject to the 
prohibitions in paragraph (b) of this section are published in the 
Federal Register and incorporated into OFAC's Foreign Sanctions 
Evaders (FSE) List using the following identifier formulation: 
``[FSE-SY].'' The FSE List is accessible through the following page 
on OFAC's website: https://ofac.treasury.gov.

    (c) The prohibitions in paragraph (b) of this section include 
prohibitions on the following transactions:
    (1) The making of any contribution or provision of funds, goods, or 
services by, to, or for the benefit of any person subject to the 
measures described in paragraph (b) of this section; and
    (2) The receipt of any contribution or provision of funds, goods, 
or services from any person subject to the measures described in 
paragraph (b) of this section.
    (d) The prohibitions in paragraph (b) of this section apply except 
to the extent provided by statutes, or in regulations, orders, 
directives, or licenses that may be issued pursuant to this part, and 
notwithstanding any contract entered into or any license or permit 
granted prior to the date on which the measures described in paragraph 
(b) are imposed.

Subpart C--General Definitions


Sec. Sec.  542.302, 542.303, 542.304, 542.305, 542.306, 542.307, 
542.308, 542.309, 542.310, 542.311, 542.312, 542.313, 542.314, 542.315, 
542.316, 542.317, 542.318, 542.319, 542.320, 542.321, 542.322, and 
542.323  [Redesignated as Sec. Sec.  542.304, 542.305, 542.306, 
542.308, 542.309, 542.310, 542.311, 542.313, 542.314, 542.315, 542.316, 
542.317, 542.319, 542.321, 542.322, 542.323, 542.324, 542.325, 542.326, 
542.327, 542.328, and 542.329]

0
10. Redesignate Sec. Sec.  542.302 through 542.323 as follows:

------------------------------------------------------------------------
                       Old section                          New section
------------------------------------------------------------------------
542.302.................................................         542.304
542.303.................................................         542.305
542.304.................................................         542.306
542.305.................................................         542.308
542.306.................................................         542.309
542.307.................................................         542.310
542.308.................................................         542.311
542.309.................................................         542.313
542.310.................................................         542.314
542.311.................................................         542.315
542.312.................................................         542.316
542.313.................................................         542.317
542.314.................................................         542.319
542.315.................................................         542.321
542.316.................................................         542.322
542.317.................................................         542.323
542.318.................................................         542.324
542.319.................................................         542.325
542.320.................................................         542.326
542.321.................................................         542.327
542.322.................................................         542.328
542.323.................................................         542.329
------------------------------------------------------------------------


[[Page 48318]]


0
11. Add new Sec.  542.302 to read as follows:


Sec.  542.302  Construction or engineering services.

    The term construction or engineering services, as used in Sec.  
542.201(a)(13)(v), means the provision of services for the construction 
of buildings or structures, or for the production, procurement, 
devising, framing, or arranging in Syria of parts or materials to 
fabricate, shape, or form buildings or structures, and assistance, 
advisory, consultative, design, and recommendation services concerning 
engineering matters or during any phase of an engineering project, 
including the on-site design, development, assembly, or construction of 
residential, commercial, or institutional buildings in Syria. The term 
applies to engaging in new work, additions, or alterations of 
commercial or institutional buildings. Engineering design services may 
be for: the construction of foundations and building structures (i.e., 
structural engineering); mechanical and electrical installations for 
buildings; the construction of civil engineering works; industrial 
processes and production; or other engineering designs, such as those 
for acoustics, vibration, traffic control systems, or prototype 
development for new products.

0
12. Add new Sec.  542.303 to read as follows:


Sec.  542.303  Deceptive transaction.

    The term deceptive transaction, as used in Sec.  542.212, means any 
transaction where the identity of any person subject to United States 
sanctions concerning Syria is withheld or obscured from other 
participants in the transaction or any relevant regulatory authorities.

0
13. Revise newly redesignated Sec.  542.304 as follows:


Sec.  542.304   Effective date.

    (a) The term effective date refers to the effective date of the 
applicable prohibitions and directives contained in this part as 
follows:
    (1) With respect to prohibited transfers or other dealings in 
blocked property and interests in property of the Government of Syria, 
as defined in Sec.  542.308, 12:01 a.m. eastern daylight time, August 
18, 2011;
    (2) With respect to a person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a)(5), 1 p.m. eastern 
daylight time, April 29, 2011;
    (3) With respect to a person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a)(7), 1 p.m. eastern 
daylight time, May 18, 2011;
    (4) With respect to a person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a)(9), 12:01 a.m. 
eastern daylight time, April 23, 2012;
    (5) With respect to a person whose property and interests in 
property are otherwise blocked pursuant to Sec.  542.201, the earlier 
of the date of actual or constructive notice that such person's 
property and interests in property are blocked;
    (6) With respect to the transactions prohibited by Sec. Sec.  
542.206 through 542.210, 12:01 a.m. eastern daylight time, August 18, 
2011; and
    (7) With respect to the transactions prohibited by Sec.  542.212, 
the earlier of the date of actual or constructive notice that such 
prohibitions apply to the foreign person determined to be subject to 
the prohibitions in Sec.  542.212.
    (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 a notice of the imposition of a 
prohibition imposed pursuant to Sec.  542.212, is published in the 
Federal Register.


Sec.  542.306   [Amended]

0
14. Amend newly redesignated Sec.  542.306 by removing the phrase ``, 
as used in Sec.  542.201(a)(1)(i), (a)(2)(ii)(L), and (a)(3)(ii)(C),''.

0
15. Add new Sec.  542.307 to read as follows:


Sec.  542.307   Foreign person.

    The term foreign person means any person that is not a U.S. person.


Sec.  542.308  [Amended]

0
16. Amend newly redesignated Sec.  542.308 by redesignating notes 1 and 
2 to Sec.  542.305 as notes 1 and 2 to Sec.  542.308.

0
17. Add new Sec.  542.312 to read as follows:


Sec.  542.312   Knowingly.

    The term knowingly, as used in Sec.  542.201(a)(11) through (13), 
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.  542.313  [Amended]

0
18. Amend newly redesignated Sec.  542.313 by redesignating the note to 
Sec.  542.309 as note 1 to Sec.  542.313.


Sec.  542.315   [Amended]

0
19. Amend newly redesignated Sec.  542.315 in paragraph (b) by removing 
``Sec.  542.310'' and adding in its place ``Sec.  542.314''.

0
20. Add new Sec.  542.318 to read as follows:


Sec.  542.318  Person subject to United States sanctions concerning 
Syria.

    The term person subject to United States sanctions concerning 
Syria, as used in Sec.  542.212, means:
    (a) Any person, including the Government of Syria, with whom 
transactions are restricted pursuant to any Executive order relating to 
the national emergency declared in E.O. 13338; or
    (b) Any person whose property and interests in property are blocked 
pursuant to the International Emergency Economic Powers Act (50 U.S.C. 
1701 et seq.) in connection with Syria's proliferation of weapons of 
mass destruction or delivery systems for weapons of mass destruction, 
or Syria's support for international terrorism.

0
21. Add new Sec.  542.320 to read as follows:


Sec.  542.320  Sensitive technology.

    The term sensitive technology, as used in Sec.  
542.201(a)(11)(ii)(C)(2), means hardware, software, telecommunications 
equipment, or any other technology, that the Secretary of the Treasury, 
in consultation with the Secretary of State, determines is to be used 
specifically to restrict the free flow of unbiased information in Syria 
or to disrupt, monitor, or otherwise restrict speech of the people of 
Syria. The term sensitive technology does not include information or 
informational materials that are exempt from regulation or prohibition 
pursuant to section 203(b)(3) of the International Emergency Economic 
Powers Act (50 U.S.C. 1702(b)(3)).

0
22. Revise newly redesignated Sec.  542.327 as follows:


Sec.  542.327  U.S. financial institution.

    The term U.S. financial institution means any U.S. entity 
(including its foreign branches) that is engaged in the business of 
accepting deposits, making, granting, transferring, holding, or 
brokering loans or credits, 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

[[Page 48319]]

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

0
23. Revise and republish Sec.  542.401 to read as follows:


Sec.  542.401   Reference to amended sections.

    (a) Reference to any section in this part is a reference to the 
same as currently amended, unless the reference includes a specific 
date. See 44 U.S.C. 1510.
    (b) Reference to any regulation, ruling, instruction, order, 
directive, or license issued pursuant to this part is a reference to 
the same as currently amended unless otherwise specified.

0
24. Revise and republish Sec.  542.405 to read as follows:


Sec.  542.405   Exportation, reexportation, sale, or supply of 
services; provision and receipt of services.

    (a) The prohibition on the exportation, reexportation, sale, or 
supply of services contained in Sec.  542.207 applies to services 
performed on behalf of a person in Syria or the Government of Syria or 
where the benefit of such services is otherwise received in Syria, if 
such services are performed:
    (1) In the United States; or
    (2) Outside the United States by a United States person.
    (b) The benefit of services performed anywhere in the world on 
behalf of the Government of Syria is presumed to be received in Syria.
    (c) The prohibitions contained in Sec.  542.201 apply to services 
performed in the United States or by U.S. persons, wherever located:
    (1) On behalf of or for the benefit of the Government of Syria or 
any other person in whose property and interests in property are 
blocked pursuant to Sec.  542.201; or
    (2) With respect to property interests of the Government of Syria 
or any other person whose property and interests in property are 
blocked pursuant to Sec.  542.201.
    (d) The prohibitions on transactions contained in Sec.  542.201 
apply to services received in the United States or by U.S. persons, 
wherever located, where the service is performed by, or at the 
direction of, a person whose property and interests in property are 
blocked pursuant to Sec.  542.201.
    (e)(1) For example, U.S. persons may not, except as authorized by 
or pursuant to this part, provide legal, accounting, financial, 
brokering, freight forwarding, transportation, public relations, or 
other services to any person in Syria or to the Government of Syria or 
to any other person whose property and interests in property are 
blocked pursuant to Sec.  542.201 or negotiate or enter into contracts 
signed by a person whose property and interests in property are blocked 
pursuant to Sec.  542.201.
    (2) For example, a U.S. person is engaged in a prohibited 
exportation of services to Syria when it extends credit to a third-
country firm specifically to enable that firm to manufacture goods for 
sale to Syria or the Government of Syria.

    Note 1 to Sec.  542.405.  See Sec. Sec.  542.507 and 542.531 for 
general licenses authorizing the provision of certain legal and 
emergency medical services.


0
25. Revise and republish Sec.  542.406 to read as follows:


Sec.  542.406   Offshore transactions involving blocked property.

    The prohibitions in Sec.  542.201 on transactions or dealings 
involving blocked property, as defined in Sec.  542.301, including 
property held in the name of the Government of Syria, apply to 
transactions by any U.S. person in a location outside the United 
States.

0
26. Revise and republish Sec.  542.409 to read as follows:


Sec.  542.409  Credit extended and cards issued by financial 
institutions.

    The prohibitions in Sec. Sec.  542.201 and 542.212 on dealing in 
property subject to those sections and the prohibition in Sec.  542.207 
on exporting services to Syria prohibit U.S. financial institutions 
from performing under any existing credit agreements, including charge 
cards, debit cards, or other credit facilities issued by a financial 
institution to a person whose property and interests in property are 
blocked pursuant to Sec.  542.201 or a person determined to be subject 
to the prohibitions of Sec.  542.212.


Sec.  542.411   [Amended]

0
27. Amend Sec.  542.411 in paragraph (b) by removing ``Sec.  542.305'' 
and adding in its place ``Sec.  542.308''.

0
28. Add Sec.  542.414 to read as follows:


Sec.  542.414   Significant; significant transaction.

    In determining, for purposes of Sec.  542.201(a)(13), whether a 
transaction is significant, or transactions are significant, the 
Secretary of the Treasury may consider the totality of the facts and 
circumstances. As a general matter, the Secretary may consider some or 
all of the following factors:
    (a) Size, number, and frequency. The size, number, and frequency of 
transactions performed over a period of time, including whether the 
transactions are increasing or decreasing over time and the rate of 
increase or decrease.
    (b) Nature. The nature of the transaction(s), including the type, 
complexity, and commercial purpose of the transaction(s).
    (c) Level of awareness; pattern of conduct. (1) Whether the 
transaction(s) is performed with the involvement or approval of 
management or only by clerical personnel; and
    (2) Whether the transaction(s) is part of a pattern of conduct or 
the result of a business development strategy.
    (d) Nexus. The proximity between the foreign person engaging in the 
transaction(s) and the persons blocked pursuant Sec.  542.201 or 
subject to the prohibitions of Sec.  542.212.
    (e) Impact. The impact of the transaction(s) on the objectives of 
the Caesar Act, including:
    (1) The economic or other benefit conferred or attempted to be 
conferred on a sanctioned person blocked pursuant to Sec.  542.201 or 
subject to the prohibitions of Sec.  542.212; and
    (2) Whether and how the transaction(s) contribute to the 
proliferation of weapons of mass destruction or delivery systems for 
such weapons, to support for international terrorism, or to the 
suppression of human rights.
    (f) Deceptive practices. Whether the transaction(s) involves an 
attempt to obscure or conceal the actual parties or true nature of the 
transaction(s) or to evade sanctions.
    (g) Other relevant factors. Such other factors that the Secretary 
of the Treasury or the Secretary's designee deems relevant on a case-
by-case basis in determining the significance of a transaction(s).
    (h) Applicability. For the purposes of this part, a transaction is 
not significant if U.S. persons would not require a specific license 
from OFAC to participate in it.

0
29. Add Sec.  542.415 to read as follows:

[[Page 48320]]

Sec.  542.415  Transactions by foreign persons for which a U.S. person 
would not require a specific license.

    For the purposes of this part, foreign persons will not be subject 
to sanctions pursuant to Sec.  587.201(a)(1), (3), (6), (8), or (13) or 
Sec.  542.212 solely on the basis of transaction for which a U.S. 
person would not require a specific license.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
30. Amend Sec.  542.507 as follows:
0
a. Remove ``Sec.  542.201(a)'' wherever it appears and add in its place 
``Sec.  542.201''.
0
b. Redesignate paragraphs (c) and (d) as paragraphs (d) and (e), 
respectively.
0
c. Add new paragraph (c).
0
d. In newly redesignated paragraph (e)(2), remove ``paragraph (d)(1) of 
this section'' and add in its place ``paragraph (e)(1) of this 
section''.
    The addition reads as follows:


Sec.  542.507   Provision of certain legal services authorized.

* * * * *
    (c) Ordinarily incident services. 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 
paragraph (a) of this section. Additionally, U.S. persons who provide 
services authorized by paragraph (a) 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.  542.404.
* * * * *

0
31. Revise and republish Sec.  542.508 to read as follows:


Sec.  542.508  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.  542.507(a) to 
or on behalf of the Government of Syria or any other person whose 
property and interests in property are blocked pursuant to Sec.  
542.201 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.  542.507(a) are 
to be provided, whose property and interests in property are blocked 
pursuant to any part of this chapter or any Executive order or statute.
    (2) Nothing in this paragraph (a) authorizes payments for legal 
services using funds in which any other person whose property and 
interests in property are blocked pursuant to Sec.  542.201, any other 
part of this chapter, or any Executive order or statute has an 
interest.
    (b) Records. Consistent with Sec.  501.601 of this chapter, U.S. 
persons who receive payments pursuant to paragraph (a) of this section 
must retain for five years from the date of the relevant payment a 
record that specifies the following for each payment:
    (1) The individual or entity from whom the funds originated and the 
amount of funds received; and
    (2) If applicable:
    (i) 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;
    (ii) A general description of the services provided; and
    (iii) The amount of funds paid in connection with such services.
    (3) These records must be furnished to OFAC on demand consistent 
with Sec.  501.602 of this chapter.

0
32. Revise and republish Sec.  542.511 to read as follows:


Sec.  542.511  Exportation of certain services incident to internet-
based communications.

    (a) Authorized services--(1) Services related to the exchange of 
communications over the internet. Except as provided in paragraph (c) 
of this section, all transactions prohibited by this part that are 
related to the exportation, reexportation, sale, or supply, directly or 
indirectly, from the United States or by U.S. persons, wherever 
located, to persons in Syria of services incident to the exchange of 
communications over the internet, such as instant messaging, chat and 
email, social networking, sharing of photos and movies, web browsing, 
blogging, social media platforms, collaboration platforms, video 
conferencing, e-gaming, e-learning platforms, automated translation, 
web maps, and user authentication services, as well as cloud-based 
services in support of the foregoing, are authorized.
    (2) Services incident to the export or reexport of software and 
hardware not subject to the Export Administration Regulations (EAR). 
Except as provided in paragraph (c) of this section, all transactions 
prohibited by this part that are related to the exportation, 
reexportation, sale, or supply, directly or indirectly, from the United 
States or by U.S. persons, wherever located, of services incident to 
the exportation or reexportation to persons in Syria of software or 
hardware that is incident to, or enables services incident to, the 
exchange of communications over the internet, such as instant 
messaging, chat and email, social networking, sharing of photos and 
movies, web browsing, blogging, social media platforms, collaboration 
platforms, video conferencing, e-gaming, e-learning platforms, 
automated translation, web maps, and user authentication services, as 
well as cloud-based services in support of the foregoing, are 
authorized, provided that any such hardware would be designated EAR99 
if it were subject to the EAR, 15 CFR parts 730 through 774, and that 
any such software is the type of software described in 15 CFR 
734.3(b)(3) or would be classified under Export Control Classification 
Number (ECCN) 5D992.c or designated EAR99 if it were subject to the 
EAR.

    Note 1 to paragraph (a)(2).  See Sec.  542.510 for a general 
license authorizing the exportation or reexportation of certain 
items subject to the EAR and services to Syria.

    (b) Internet connectivity services and telecommunications capacity. 
Except as provided in paragraph (c) of this section, all transactions 
prohibited by this part that are related to the exportation or 
reexportation to Syria of non-commercial-grade internet connectivity 
services, to include non-commercial-grade cloud-based services, and the 
provision, sale, or leasing of capacity on telecommunications 
transmission facilities (such as satellite or terrestrial network 
connectivity) incident to communications, are authorized.
    (c) Exclusions. This section does not authorize:
    (1) The direct or indirect exportation of services with knowledge 
or reason to know that such services are intended for the benefit of 
the Government of Syria, except for services described in paragraph (a) 
of this section that are publicly available at no cost to the user, or 
any other person whose property and interests in property are blocked 
pursuant to Sec.  542.201;
    (2) The direct or indirect exportation of commercial-grade internet 
connectivity services or commercial-grade telecommunications 
transmission facilities (such as dedicated satellite

[[Page 48321]]

links or dedicated lines that include quality of service guarantees); 
or
    (3) The direct or indirect exportation of web-hosting services that 
are for websites of commercial entities located in Syria or of domain 
name registration services for or on behalf of the Government of Syria, 
as defined in Sec.  542.308, or any other person whose property and 
interests in property are blocked pursuant to Sec.  542.201.
    (d) Specific licensing policy. Specific licenses may be issued on a 
case-by-case basis to authorize transactions not specified in paragraph 
(a) of this section that are incident to communications, involve the 
telecommunications sector, or support internet freedom in Syria, 
including to enable private persons in Syria to better and more 
securely access the internet.

    Note 2 to Sec.  542.511.  Nothing in this section relieves the 
exporter from compliance with the export license application 
requirements of another Federal agency.


0
33. Revise and republish Sec.  542.513 to read as follows:


Sec.  542.513  Official business of certain international organizations 
and entities.

    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:
    (a) The United Nations, including its Programmes, Funds, and Other 
Entities and Bodies, as well as its Specialized Agencies and Related 
Organizations;
    (b) The International Committee of the Red Cross and the 
International Federation of Red Cross and Red Crescent Societies; and
    (c) The Global Fund to Fight AIDS, Tuberculosis, and Malaria, and 
Gavi, the Vaccine Alliance.

    Note 1 to Sec.  542.513. The authorization in this section 
includes the processing or transfer of funds on behalf of third-
country entities to or from Syria in support of the transactions 
authorized by this section. U.S. financial institutions may rely on 
the originator of a funds transfer with regard to compliance with 
this section, provided that the financial institution does not know 
or have reason to know that the funds transfer is not in compliance 
with this section.


0
34. Revise and republish Sec.  542.516 to read as follows:


Sec.  542.516   Certain transactions in support of nongovernmental 
organizations' activities.

    (a) Nongovernmental organizations, including employees, 
contractors, and grantees thereof, are authorized to engage in all 
transactions prohibited by this part that are in support of the 
activities described in paragraph (b) of this section, provided that 
the nongovernmental organization is not a person whose property or 
interests in property are blocked pursuant to this part.
    (b) The activities referenced in paragraph (a) of this section are 
non-commercial activities designed to directly benefit the civilian 
population that fall into one of the following categories:
    (1) Activities to support humanitarian projects to meet basic human 
needs in Syria, including, disaster, drought, or flood relief; food, 
nutrition, or medicine distribution; the provision of health services; 
assistance for vulnerable or displaced populations, including refugees, 
individuals with disabilities, and the elderly; and environmental 
programs;
    (2) Activities to support democracy building in Syria, including 
activities to support rule of law, citizen participation, government 
accountability and transparency, human rights and fundamental freedoms, 
access to information, and civil society development projects;
    (3) Activities to support education in Syria, including combating 
illiteracy, increasing access to education, and assisting education 
reform projects;
    (4) Activities to support non-commercial development projects 
directly benefiting the Syrian people, including those related to 
health, food security, and water and sanitation;
    (5) Activities to support the preservation and protection of 
cultural heritage sites in Syria, including museums, historic 
buildings, and archaeological sites;
    (6) Activities to support environmental and natural resource 
protection in Syria, including the preservation and protection of 
threatened or endangered species, responsible and transparent 
management of natural resources, and the remediation of pollution or 
other environmental damage; and
    (7) Activities to support disarmament, demobilization, and 
reintegration (DDR) programs and peacebuilding, conflict prevention, 
and conflict resolution programs.
    (c) U.S. financial institutions are authorized to process transfers 
of funds on behalf of U.S. or third-country non-governmental 
organizations, including their employees, contractors, and grantees, in 
support of the activities authorized by paragraph (a) of this section, 
except as provided in paragraph (d) of this section.

    Note 1 to paragraph (c).  U.S. financial institutions may rely 
on the originator of a funds transfer with regard to compliance with 
this section, provided that the financial institution does not know 
or have reason to know that the funds transfer is not in compliance 
with this section.

    (d) This section does not authorize:
    (1) Any funds transfers initiated or processed with knowledge or 
reason to know that the intended beneficiary of such transfers is a 
person blocked pursuant to this part, except for persons who meet the 
definition of the term Government of Syria, as defined in Sec.  
542.308(a) or for the purposes of effecting the payment of taxes, fees, 
or import duties, or for the purchase or receipt of permits, licenses, 
or public utility services as ordinarily incident and necessary to the 
activities authorized in paragraph (a) of this section; or
    (2) The importation into the United States of petroleum or 
petroleum products of Syrian origin prohibited by Sec.  542.208.
    (e) Nothing in this section authorizes nongovernmental 
organizations to undertake any transaction or dealing that involves any 
foreign person that has been designated as a foreign terrorist 
organization under section 219 of the Immigration and Nationality Act 
(8 U.S.C. 1189), or otherwise designated as a terrorist organization, 
by the Secretary of State, in consultation with or upon the request of 
the Attorney General or the Secretary of Homeland Security.
    (f) U.S. persons engaging in transactions or processing transfers 
of funds to or from Syria in support of activities described in 
paragraph (b)(5) of this section (preservation and protection of 
cultural heritage sites in Syria) are required to file quarterly 
reports no later than 30 days following the end of the calendar quarter 
with OFAC. The reports should include complete information on all 
activities and transactions undertaken pursuant to paragraphs (a) and 
(c) of this section in support of the activities described in paragraph 
(b)(5) of this section that took place during the reporting period, 
including the parties involved, the value of the transactions, the 
services provided, and the dates of the transactions. The reports 
should be submitted via email to [email protected].
    (g) Specific licenses may be issued on a case-by-case basis to 
authorize nongovernmental organizations or other entities to engage in 
other activities designed to directly benefit the civilian population, 
including support for the removal of landmines and economic development 
projects directly benefiting the civilian population.


[[Page 48322]]


    Note 2 to Sec.  542.516.  See Sec.  542.510 for a general 
license authorizing the exportation or reexportation of certain 
items and services to Syria.

Sec.  542.527   [Removed and Reserved]

0
35. Remove and reserve Sec.  542.527.

0
36. Revise and republish Sec.  542.531 to read as follows:


Sec.  542.531   Emergency medical services.

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


Sec.  542.532   [Amended]

0
37. Amend Sec.  542.532 in the note to paragraph (b) as follows:
0
a. Redesignate the note to paragraph (b) of Sec.  542.532 as note 1 to 
paragraph (b).
0
b. Remove ``Sec.  542.307'' and add in its place ``Sec.  542.310''.

0
38. Add Sec.  542.533 to read as follows:


Sec.  542.533  Activities in certain economic sectors in non-regime 
held areas of Northeast and Northwest Syria.

    (a) Except as provided in paragraph (c) of this section, 
transactions prohibited by Sec.  542.206 or Sec.  542.207 that are 
ordinarily incident and necessary to activities in the following 
economic sectors in the areas of northeast and northwest Syria 
described in the List of Areas of Northeast and Northwest Syria in 
Which Activities are Authorized by Sec.  542.533 on OFAC's website 
(https://ofac.treasury.gov) and published in the Federal Register are 
authorized:
    (1) Agriculture;
    (2) Information and telecommunications;
    (3) Power grid infrastructure;
    (4) Construction;
    (5) Finance;
    (6) Clean energy;
    (7) Transportation and warehousing;
    (8) Water and waste management;
    (9) Health services;
    (10) Education;
    (11) Manufacturing; and
    (12) Trade.
    (b) Except as provided in paragraph (c) of this section, the 
purchase of refined petroleum products of Syrian origin for use in 
Syria prohibited by Sec.  542.209 that is ordinarily incident and 
necessary to the activities described in paragraph (a) of this section 
is authorized.

    Note 1 to paragraphs (a) and (b).  The authorizations in this 
section include the processing or transfer of funds on behalf of 
third-country entities to or from Syria in support of the 
transactions authorized by this section. U.S. financial institutions 
and U.S. registered money transmitters may rely on the originator of 
a funds transfer with regard to compliance with this section, 
provided that the financial institution does not know or have reason 
to know that the funds transfer is not in compliance with this 
section.

    (c) This section does not authorize:
    (1) Any transactions involving any person, including the Government 
of Syria, as defined in Sec.  542.308, whose property or interests in 
property are blocked pursuant to Sec.  542.201; or
    (2) The importation into the United States of petroleum or 
petroleum products of Syrian origin prohibited by Sec.  542.208.

    Note 2 to Sec.  542.533. See Sec.  542.510 for a general license 
authorizing the exportation or reexportation of certain items and 
services to Syria.


0
39. Add Sec.  542.534 to read as follows:


Sec.  542.534   Transactions involving persons subject to certain 
sanctions pursuant to this part.

    Any transaction prohibited pursuant to Sec.  542.212 due to the 
involvement of a person determined to be subject to the prohibitions of 
Sec.  542.212 is authorized to the same extent such transaction would 
be authorized for a person whose property and interests in property are 
blocked pursuant to Sec.  542.201 by a general license set forth in or 
issued pursuant to this part.

Subpart F--[Removed and Reserved]

0
40. Remove and reserve subpart F.

0
41. Revise subpart G to read as follows:

Subpart G--Penalties and Findings of Violation

Sec.
542.701 Penalties.
542.702 Pre-Penalty Notice; settlement.
542.703 Penalty imposition.
542.704 Administrative collection; referral to United States 
Department of Justice.
542.705 Findings of Violation.


Sec.  542.701  Penalties.

    (a) Section 206 of the International Emergency Economic Powers Act 
(50 U.S.C. 1705) (IEEPA) is applicable to violations of the provisions 
of any regulation, ruling, instruction, order, directive, or license 
issued by or pursuant to the direction or authorization of the 
Secretary of the Treasury pursuant to this part or otherwise under 
IEEPA.
    (1) A civil penalty not to exceed the amount set forth in section 
206 of IEEPA may be imposed on any person who violates, attempts to 
violate, conspires to violate, or causes a violation of any regulation, 
ruling, instruction, order, directive, or license issued under IEEPA.
    (2) IEEPA provides for a maximum civil penalty not to exceed the 
greater of $368,136 or an amount that is twice the amount of the 
transaction that is the basis of the violation with respect to which 
the penalty is imposed.
    (3) A person who willfully commits, willfully attempts to commit, 
willfully conspires to commit, or aids or abets in the commission of a 
violation of any regulation in this part, ruling, instruction, order, 
directive, or license may, upon conviction, be fined not more than 
$1,000,000, or if a natural person, be imprisoned for not more than 20 
years, or both.
    (b)(1) The civil penalties provided in IEEPA are subject to 
adjustment pursuant to the Federal Civil Penalties Inflation Adjustment 
Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).
    (2) The criminal penalties provided in IEEPA are subject to 
adjustment pursuant to 18 U.S.C. 3571.
    (c) Pursuant to 18 U.S.C. 1001, whoever, in any matter within the 
jurisdiction of the executive, legislative, or judicial branch of the 
Government of the United States, knowingly and willfully falsifies, 
conceals, or covers up by any trick, scheme, or device a material fact; 
or makes any materially false, fictitious, or fraudulent statement or 
representation; or makes or uses any false writing or document knowing 
the same to contain any materially false, fictitious, or fraudulent 
statement or entry shall be fined under title 18, United States Code, 
imprisoned, or both.
    (d) Section 5(b) of the United Nations Participation Act, as 
amended (22 U.S.C. 287c(b)) (UNPA), provides that any person who 
willfully violates or evades or attempts to violate or evade any order, 
rule, or regulation issued by the President pursuant to section 5(a) of 
the UNPA shall, upon conviction, be fined not more than $1,000,000 or, 
if a natural person, be imprisoned for not more than 20 years, or both.
    (e) Pursuant to 18 U.S.C. 2332d, except as provided in regulations 
issued by the Secretary of the Treasury, in consultation with the 
Secretary of State, a U.S. person, who knowing or having reasonable 
cause to know that a country is designated under section 6(j) of the 
Export Administration Act of 1979, 50 U.S.C. App. 2405, as a country 
supporting international terrorism, engages in a financial transaction 
with the government of that country, shall be fined under title 18, 
United States Code,

[[Page 48323]]

or imprisoned for not more than 10 years, or both.
    (f) Violations of this part may also be subject to other applicable 
laws.


Sec.  542.702   Pre-Penalty Notice; settlement.

    (a) When required. If OFAC has reason to believe that there has 
occurred a violation of any provision of this part or a violation of 
the provisions of any regulation, ruling, instruction, order, 
directive, or license issued by or pursuant to the direction or 
authorization of the Secretary of the Treasury pursuant to this part or 
otherwise under the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) and determines that a civil monetary penalty is 
warranted, OFAC will issue a Pre-Penalty Notice informing the alleged 
violator of the agency's intent to impose a monetary penalty. A Pre-
Penalty Notice shall be in writing. The Pre-Penalty Notice may be 
issued whether or not another agency has taken any action with respect 
to the matter. For a description of the contents of a Pre-Penalty 
Notice, see appendix A to part 501 of this chapter.
    (b) Response--(1) Right to respond. An alleged violator has the 
right to respond to a Pre-Penalty Notice by making a written 
presentation to OFAC. For a description of the information that should 
be included in such a response, see appendix A to part 501 of this 
chapter.
    (2) Deadline for response. A response to a Pre-Penalty Notice must 
be made within 30 days as set forth in paragraphs (b)(2)(i) and (ii) of 
this section. The failure to submit a response within 30 days shall be 
deemed to be a waiver of the right to respond.
    (i) Computation of time for response. A response to a Pre-Penalty 
Notice must be postmarked or date-stamped by the U.S. Postal Service 
(or foreign postal service, if mailed abroad) or courier service 
provider (if transmitted to OFAC by courier), or dated if sent by 
email, on or before the 30th day after the postmark date on the 
envelope in which the Pre-Penalty Notice was mailed or date the Pre-
Penalty Notice was emailed. If the Pre-Penalty Notice was personally 
delivered by a non-U.S. Postal Service agent authorized by OFAC, a 
response must be postmarked or date-stamped on or before the 30th day 
after the date of delivery.
    (ii) Extensions of time for response. If a due date falls on a 
Federal holiday or weekend, that due date is extended to include the 
following business day. Any other extensions of time will be granted, 
at the discretion of OFAC, only upon specific request to OFAC.
    (3) Form and method of response. A response to a Pre-Penalty Notice 
need not be in any particular form, but it must be typewritten and 
signed by the alleged violator or a representative thereof (electronic 
signature is acceptable), contain information sufficient to indicate 
that it is in response to the Pre-Penalty Notice, and include the OFAC 
identification number listed on the Pre-Penalty Notice. The response 
must be sent to OFAC's Enforcement Division by mail or courier or email 
and must be postmarked or date-stamped in accordance with paragraph 
(b)(2) of this section.
    (c) Settlement. Settlement discussion may be initiated by OFAC, the 
alleged violator, or the alleged violator's authorized representative. 
For a description of practices with respect to settlement, see appendix 
A to part 501 of this chapter.
    (d) Guidelines. Guidelines for the imposition or settlement of 
civil penalties by OFAC are contained in appendix A to part 501 of this 
chapter.
    (e) Representation. A representative of the alleged violator may 
act on behalf of the alleged violator, but any oral communication with 
OFAC prior to a written submission regarding the specific allegations 
contained in the Pre-Penalty Notice must be preceded by a written 
letter of representation, unless the Pre-Penalty Notice was served upon 
the alleged violator in care of the representative.


Sec.  542.703  Penalty imposition.

    If, after considering any written response to the Pre-Penalty 
Notice and any relevant facts, OFAC determines that there was a 
violation by the alleged violator named in the Pre-Penalty Notice and 
that a civil monetary penalty is appropriate, OFAC may issue a Penalty 
Notice to the violator containing a determination of the violation and 
the imposition of the monetary penalty. For additional details 
concerning issuance of a Penalty Notice, see appendix A to part 501 of 
this chapter. The issuance of the Penalty Notice shall constitute final 
agency action. The violator has the right to seek judicial review of 
that final agency action in Federal district court.


Sec.  542.704   Administrative collection; referral to United States 
Department of Justice.

    In the event that the violator does not pay the penalty imposed 
pursuant to this part or make payment arrangements acceptable to OFAC, 
the matter may be referred for administrative collection measures by 
the Department of the Treasury or to the United States Department of 
Justice for appropriate action to recover the penalty in a civil suit 
in a Federal district court.


Sec.  542.705  Findings of Violation.

    (a) When issued. (1) OFAC may issue an initial Finding of Violation 
that identifies a violation if OFAC:
    (i) Determines that there has occurred a violation of any provision 
of this part, or a violation of the provisions of any regulation, 
ruling, instruction, order, directive, or license issued by or pursuant 
to the direction or authorization of the Secretary of the Treasury 
pursuant to this part or otherwise under the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.);
    (ii) Considers it important to document the occurrence of a 
violation; and
    (iii) Based on the Guidelines contained in appendix A to part 501 
of this chapter, concludes that an administrative response is warranted 
but that a civil monetary penalty is not the most appropriate response.
    (2) An initial Finding of Violation shall be in writing and may be 
issued whether or not another agency has taken any action with respect 
to the matter. For additional details concerning issuance of a Finding 
of Violation, see appendix A to part 501 of this chapter.
    (b) Response--(1) Right to respond. An alleged violator has the 
right to contest an initial Finding of Violation by providing a written 
response to OFAC.
    (2) Deadline for response; default determination. A response to an 
initial Finding of Violation must be made within 30 days as set forth 
in paragraphs (b)(2)(i) and (ii) of this section. The failure to submit 
a response within 30 days shall be deemed to be a waiver of the right 
to respond, and the initial Finding of Violation will become final and 
will constitute final agency action. The violator has the right to seek 
judicial review of that final agency action in Federal district court.
    (i) Computation of time for response. A response to an initial 
Finding of Violation must be postmarked or date-stamped by the U.S. 
Postal Service (or foreign postal service, if mailed abroad) or courier 
service provider (if transmitted to OFAC by courier), or dated if sent 
by email, on or before the 30th day after the postmark date on the 
envelope in which the initial Finding of Violation was served or date 
the Finding of Violation was sent by email. If the initial Finding of 
Violation was personally delivered by a non-U.S. Postal Service agent 
authorized by OFAC, a response must be postmarked

[[Page 48324]]

or date-stamped on or before the 30th day after the date of delivery.
    (ii) Extensions of time for response. If a due date falls on a 
Federal holiday or weekend, that due date is extended to include the 
following business day. Any other extensions of time will be granted, 
at the discretion of OFAC, only upon specific request to OFAC.
    (3) Form and method of response. A response to an initial Finding 
of Violation need not be in any particular form, but it must be 
typewritten and signed by the alleged violator or a representative 
thereof (electronic signature is acceptable), contain information 
sufficient to indicate that it is in response to the initial Finding of 
Violation, and include the OFAC identification number listed on the 
initial Finding of Violation. The response must be sent to OFAC's 
Enforcement Division by mail or courier or email and must be postmarked 
or date-stamped in accordance with paragraph (b)(2) of this section.
    (4) Information that should be included in response. Any response 
should set forth in detail why the alleged violator either believes 
that a violation of the regulations in this part did not occur and/or 
why a Finding of Violation is otherwise unwarranted under the 
circumstances, with reference to the General Factors Affecting 
Administrative Action set forth in the Guidelines contained in appendix 
A to part 501 of this chapter. The response should include all 
documentary or other evidence available to the alleged violator that 
supports the arguments set forth in the response. OFAC will consider 
all relevant materials submitted in the response.
    (c) Determination--(1) Determination that a Finding of Violation is 
warranted. If, after considering the response, OFAC determines that a 
final Finding of Violation should be issued, OFAC will issue a final 
Finding of Violation that will inform the violator of its decision. A 
final Finding of Violation shall constitute final agency action. The 
violator has the right to seek judicial review of that final agency 
action in Federal district court.
    (2) Determination that a Finding of Violation is not warranted. If, 
after considering the response, OFAC determines a Finding of Violation 
is not warranted, then OFAC will inform the alleged violator of its 
decision not to issue a final Finding of Violation.

    Note 1 to paragraph (c)(2).  A determination by OFAC that a 
final Finding of Violation is not warranted does not preclude OFAC 
from pursuing other enforcement actions consistent with the 
Guidelines contained in appendix A to part 501 of this chapter.

    (d) Representation. A representative of the alleged violator may 
act on behalf of the alleged violator, but any oral communication with 
OFAC prior to a written submission regarding the specific alleged 
violations contained in the initial Finding of Violation must be 
preceded by a written letter of representation, unless the initial 
Finding of Violation was served upon the alleged violator in care of 
the representative.

Subpart H--[Removed]

0
42. Remove subpart H.

Subpart I--[Removed]

0
43. Remove subpart I.


Sec. Sec.  542.202, 542.203, 542.204, 542.301, 542.305, 542.403, 
542.404, 542.408, 542.504, 542.505, 542.506, 542.509, 542.510, 542.512, 
542.514, 542.515, 542.517, 542.518, 542.519, 542.521, 542.523, 542.524, 
542.526, 542.527, 542.528, 542.529, and 542.530   [Amended]

0
44. In addition to the amendments set forth above, in 31 CFR part 542, 
remove ``Sec.  542.201(a)'' and add in its place ``Sec.  542.201'' in 
the following sections:
0
a. Section 542.202;
0
b. Section 542.203;
0
c. Section 542.204;
0
d. Section 542.301;
0
e. Section 542.305;
0
f. Section 542.403;
0
g. Section 542.404;
0
h. Section 542.408;
0
i. Section 542.504;
0
j. Section 542.505;
0
k. Section 542.506;
0
l. Section 542.509;
0
m. Section 542.510;
0
n. Section 542.512;
0
o. Section 542.514;
0
p. Section 542.515;
0
q. Section 542.517;
0
r. Section 542.518;
0
s. Section 542.519;
0
t. Section 542.521;
0
u. Section 542.523;
0
v. Section 542.524;
0
w. Section 542.526;
0
x. Section 542.527;
0
y. Section 542.528;
0
z. Section 542.529; and
0
aa. Section 542.530.

Bradley T. Smith,
Director, Office of Foreign Assets Control.
[FR Doc. 2024-12317 Filed 6-5-24; 8:45 am]
BILLING CODE 4810-AL-P