15744 Federal Register / Vol. 89, No. 44 / Tuesday, March 5, 2024 / Rules and Regulations 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 546 

Updates to the Darfur Sanctions 

Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (OFAC) is changing the heading 

of the Darfur Sanctions Regulations to 

the Sudan Stabilization Sanctions 

Regulations and amending the renamed 

regulations to implement a May 4, 2023 

Sudan-related Executive Order. This 

rule also updates or adds new 

definitions, general licenses, and 

interpretative guidance, among other 

regulatory provisions. 

DATES: This rule is effective March 5, 

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 May 28, 2009, OFAC issued the 

Darfur Sanctions Regulations, 31 CFR 

part 546 (74 FR 25432, May 28, 2009) 

(the ‘‘Regulations’’) to implement 

Executive Order (E.O.) 13400 of April 

26, 2006, ‘‘Blocking Property of Persons 

in Connection with the Conflict in 

Sudan’s Darfur Region’’ (71 FR 25483, 

May 1, 2006). The Regulations were 

issued pursuant to authorities delegated 

to the Secretary of the Treasury in E.O. 

13400, which expanded the scope of the 

national emergency declared in E.O. 

13067 of November 3, 1997, ‘‘Blocking 

Sudanese Government Property and 

Prohibiting Transactions with Sudan’’ 

(62 FR 59989, November 5, 1997) with 

respect to the policies and actions of the 

Government of Sudan. Since then, 

OFAC has amended the Regulations 

several times. OFAC is now amending 

the Regulations to implement provisions 

of E.O. 14098, ‘‘Imposing Sanctions on 

Certain Persons Destabilizing Sudan and 

Undermining the Goal of a Democratic 

Transition’’ (88 FR 29529, May 5, 2023). 

In addition, OFAC is amending the 

Regulations to update or add new 

definitions, general licenses, and 

interpretative guidance, among other 

regulatory provisions. Furthermore, 

OFAC is renaming the Darfur Sanctions 

Regulations as the Sudan Stabilization 

Sanctions Regulations to reflect the 

expanded scope of the national 

emergency, as set forth in E.O. 14098. 

On May 4, 2023, the President, 

invoking the authority of, inter alia, the 

International Emergency Economic 

Powers Act (50 U.S.C. 1701 et seq.) 

(IEEPA), issued E.O. 14098. In E.O. 

14098, the President expanded the 

scope of the national emergency 

declared in E.O. 13067, and expanded 

by E.O. 13400, finding that the situation 

in Sudan, including the military’s 

seizure of power in October 2021 and 

the outbreak of inter-service fighting in 

April 2023, constitutes an unusual and 

extraordinary threat to the national 

security and foreign policy of the United 

States. 

Section 1(a) of E.O. 14098 blocks, 

with certain exceptions, all property 

and interests in property that are in the 

United States, that come within the 

United States, or that are or come within 

the possession or control of any U.S. 

person of: (i) any foreign person 

determined by the Secretary of the 

Treasury, in consultation with the 

Secretary of State, to be responsible for, 

or complicit in, or to have directly or 

indirectly engaged or attempted to 

engage in, any of the following: (A) 

actions or policies that threaten the 

peace, security, or stability of Sudan; (B) 

actions or policies that obstruct, 

undermine, delay, or impede, or pose a 

significant risk of obstructing, 

undermining, delaying, or impeding, the 

formation or operation of a civilian 

transitional government, Sudan’s 

transition to democracy, or a future 

democratically elected government; (C) 

actions or policies that have the purpose 

or effect of undermining democratic 

processes or institutions in Sudan; (D) 

censorship or other actions or policies 

that prohibit, limit, or penalize the 

exercise of freedoms of expression, 

association, or peaceful assembly by 

individuals in Sudan, or that limit 

access to free and independent news or 

information in or with respect to Sudan; 

(E) corruption, including bribery, 

misappropriation of state assets, and 

interference with public processes such 

as government oversight of parastatal 

budgets and revenues for personal 

benefit; (F) serious human rights abuse, 

including serious human rights abuse 

related to political repression, in or with 

respect to Sudan; (G) the targeting of 

women, children, or any other civilians 

through the commission of acts of 

violence (including killing, maiming, 

torture, or rape or other sexual 

violence), abduction, forced 

displacement, or attacks on schools, 

hospitals, religious sites, or locations 

where civilians are seeking refuge, or 

through conduct that would constitute a 

serious abuse or violation of human 

rights or a violation of international 

humanitarian law; (H) the obstruction of 

the activities of United Nations 

missions—including peacekeeping 

missions, as well as diplomatic or 

humanitarian missions—in Sudan, or of 

the delivery of, distribution of, or access 

to humanitarian assistance; or (I) attacks 

against United Nations missions, 

including peacekeeping operations; (ii) 

any foreign person determined by the 

Secretary of the Treasury, in 

consultation with the Secretary of State, 

to be or have been a leader, official, 

senior executive officer, or member of 

the board of directors of any entity: (A) 

that has, or whose members have, 

engaged in any activity described in 

subsection (a)(i) of E.O. 14098 relating 

to the tenure of such leader, official, 

senior executive officer, or member of 

the board of directors; or (B) whose 

property and interests in property are 

blocked pursuant to E.O. 14098 relating 

to the tenure of such leader, official, 

senior executive officer, or member of 

the board of directors; (iii) any foreign 

person determined by the Secretary of 

the Treasury, in consultation with the 

Secretary of State, to be a spouse or 

adult child of any person whose 

property and interests in property are 

blocked pursuant to E.O. 14098; (iv) any 

foreign person determined by the 

Secretary of the Treasury, in 

consultation with the Secretary of State, 

to have materially assisted, sponsored, 

or provided financial, material, or 

technological support for, or goods or 

services to or in support of, any activity 

described in section 1(a)(i) of E.O. 14098 

or any person whose property and 

interests in property are blocked 

pursuant to E.O. 14098; or (v) any 

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 or purported to act for or on behalf 

of, directly or indirectly, any person 

whose property and interests in 

property are blocked pursuant to E.O. 

14098. The blocked property and 

interests in property of the persons 

described above may not be transferred, 

paid, exported, withdrawn, or otherwise 

dealt in. 

Section 1(b) of E.O. 14098 provides 

that the prohibitions in section 1(a) of 

E.O. 14098 apply except to the extent 


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provided by statutes, or in regulations, 

orders, directives, or licenses that may 

be issued pursuant to E.O. 14098, and 

notwithstanding any contract entered 

into or any license or permit granted 

before the date of E.O. 14098. 

Section 3 of E.O. 14098 provides that 

the prohibition on any transaction or 

dealing in blocked property or interests 

in property includes the making of any 

contribution or provision of funds, 

goods, or services by, to, or for the 

benefit of any person whose property 

and interests in property are blocked 

pursuant to E.O. 14098, and the receipt 

of any contribution or provision of 

funds, goods, or services from any such 

person. 

In Section 4 of E.O. 14098, the 

President determined that the making of 

donations of the types of articles 

specified in section 203(b)(2) of IEEPA 

(50 U.S.C. 1702(b)(2)), by, to, or for the 

benefit of any person whose property 

and interests in property are blocked 

pursuant to E.O. 14098 would seriously 

impair the President’s ability to deal 

with the national emergency declared in 

E.O. 13067, as expanded. The President 

therefore prohibited the donation of 

such items except to the extent provided 

by statutes, or in regulations, rulings, 

instructions, orders, directives, or 

licenses that may be issued pursuant to 

E.O. 14098. 

Section 5 of E.O. 14098 prohibits any 

transaction that evades or avoids, has 

the purpose of evading or avoiding, 

causes a violation of, or attempts to 

violate any of the prohibitions set forth 

in E.O. 14098, as well as any conspiracy 

formed to violate such prohibitions. 

Section 9 of E.O. 14098 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 E.O. 14098. 

Section 9 of E.O. 14098 also provides 

that the Secretary of the Treasury may, 

consistent with applicable law, 

redelegate any of these functions within 

the Department of the Treasury. 

Current Regulatory Action 

In furtherance of the purposes of E.O. 

14098, OFAC is changing the heading of 

the Darfur Sanctions Regulations, 31 

CFR part 546, to the Sudan Stabilization 

Sanctions Regulations and amending 

the renamed Regulations to implement 

E.O. 14098, among other changes. In 

particular, in subpart B of the 

Regulations, OFAC is revising § 546.201 

to incorporate the new designation 

criteria provided in E.O. 14098, as well 

as adding § 546.201(e) to implement any 

future Executive orders issued pursuant 

to E.O. 13067. Accordingly, throughout 

the Regulations, OFAC is amending all 

references to § 546.201(a) to references 

to § 546.201. In addition, OFAC is 

adding § 546.206 to detail transactions 

that are exempt from the prohibitions of 

the Regulations pursuant to section 

203(b) of IEEPA (50 U.S.C. 1702(b)). 

In subpart C of the Regulations, new 

definitions are being added to other key 

terms used throughout the Regulations. 

Because these new definitions were 

inserted in alphabetical order, the 

definitions that were in the prior 

abbreviated set of regulations have been 

renumbered. Specifically, OFAC is 

clarifying that the term OFAC means the 

Office of Foreign Assets Control, 

providing a definition for foreign person 

at § 546.306, and adding definitional 

guidance at § 546.300 clarifying that the 

terms defined in subpart C apply 

throughout the Regulations. 

Furthermore, OFAC is updating 

multiple definitions, including its 

definition of the term effective date at 

§ 546.303. 

In subpart D, which contains 

interpretive sections regarding the 

Regulations, OFAC is amending several 

interpretive provisions to align with the 

aforementioned changes to subpart B, as 

well as updating several provisions for 

clarity. OFAC has also added an 

interpretive provision at § 546.412 to 

clarify that the property and interests in 

property of an entity, including any 

political subdivision, agency, or 

instrumentality of a governmental 

entity, are not blocked solely because 

one or more persons whose property 

and interests in property are blocked 

pursuant to § 546.201 is a member, 

leader, official, senior executive officer, 

or otherwise exercises control. 

Transactions otherwise prohibited by 

the Regulations but found to be 

consistent with U.S. policy may be 

authorized by one of the general 

licenses contained in subpart E of the 

Regulations or by a specific license 

issued pursuant to the procedures 

described in subpart E of 31 CFR part 

501. OFAC is updating § 546.502 to 

conform with current statements of 

licensing policy and revising § 546.511, 

which authorizes certain transactions 

for the official business of certain 

international organizations and entities, 

and § 546.513, which authorizes certain 

transactions related to the provision of 

agricultural commodities, medicine, 

medical devices, replacement parts and 

components, or software updates, and 

the extraction, processing, transport, 

sale, or distribution of water in Sudan. 

OFAC has also added § 546.508, which 

authorizes certain payments for legal 

services from funds originating outside 

the United States. In addition, the 

interpretive provisions that were in the 

prior set of regulations have been 

renumbered. 

In subpart G of the Regulations, OFAC 

is revising several sections to describe 

the civil and criminal penalties 

applicable to violations of the 

Regulations, as well as the procedures 

governing the potential imposition of a 

civil monetary penalty or issuance of a 

Finding of Violation. OFAC is adding 

§ 546.705 describing the procedures 

governing the potential issuance of a 

Finding of Violation. Finally, in subpart 

H of the Regulations, OFAC is updating 

a section heading at § 546.802 to reflect 

the delegation of certain authorities of 

the Secretary of the Treasury. 

Throughout the Regulations, OFAC is 

changing references to ‘‘the Office of 

Foreign Assets Control’’ and ‘‘the 

Director of the Office of Foreign Assets 

Control’’ to ‘‘OFAC’’ for purposes of 

clarity and simplicity. 

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), as 

amended, 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 546 

Administrative practice and 

procedure, Banks, banking, Blocking of 

assets, Credit, Foreign trade, Penalties, 

Reporting and recordkeeping 

requirements, Sanctions, Securities, 

Services, Sudan. 

For the reasons set forth in the 

preamble, OFAC amends 31 CFR part 

546 as follows: 


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PART 546—SUDAN STABILIZATION 

SANCTIONS REGULATIONS 

■ 1. Revise the heading of part 546 to 

read as set forth above. 

■ 2. The authority citation for part 546 

is revised to read as follows: 

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 

50 U.S.C. 1601–1651, 1701–1706; 22 U.S.C. 

287c; Pub. L. 101–410, 104 Stat. 890, as 

amended (28 U.S.C. 2461 note); E.O. 13067, 

62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 

13400, 71 FR 25483, 3 CFR, 2006 Comp., p. 

220; E.O. 14098, 88 FR 29529. 

Subpart B—Prohibitions 

■ 3. Revise § 546.201 to read as follows: 

§ 546.201 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 of the 

following persons are blocked and may 

not be transferred, paid, exported, 

withdrawn, or otherwise dealt in: 

(1) E.O. 13400 Annex. The persons 

listed in the Annex to Executive Order 

13400 of April 26, 2006. 

(2) E.O. 13400. Any person 

determined by the Secretary of the 

Treasury, after consultation with the 

Secretary of State: 

(i) To have constituted a threat to the 

peace process in Darfur; 

(ii) To have constituted a threat to 

stability in Darfur and the region; 

(iii) To be responsible for conduct 

related to the conflict in Darfur that 

violates international law; 

(iv) To be responsible for heinous 

conduct with respect to human life or 

limb related to the conflict in Darfur; 

(v) To have directly or indirectly 

supplied, sold, or transferred arms or 

any related materiel, or any assistance, 

advice, or training related to military 

activities to: 

(A) The Government of Sudan; 

(B) The Sudan Liberation Movement/ 

Army; 

(C) The Justice and Equality 

Movement; 

(D) The Janjaweed; or 

(E) Any person (other than a person 

listed in paragraph (a)(2)(v)(A) through 

(D) of this section) operating in the 

states of North Darfur, South Darfur, or 

West Darfur that is a belligerent, a 

nongovernmental entity, or an 

individual; 

(vi) To be responsible for offensive 

military overflights in and over the 

Darfur region; 

(vii) To have materially assisted, 

sponsored, or provided financial, 

material, or technological support for, or 

goods or services in support of, the 

activities described in paragraphs 

(a)(2)(i) through (vi) of this section or 

any person whose property and interests 

in property are blocked pursuant to 

paragraphs (a)(1) through (2) of this 

section; or 

(viii) To be owned or controlled by, or 

acting or purporting to act for or on 

behalf of, directly or indirectly, any 

person whose property and interests in 

property are blocked pursuant to 

paragraphs (a)(1) through (2) of this 

section. 

(3) E.O. 14098. Any foreign person 

determined by the Secretary of the 

Treasury, in consultation with the 

Secretary of State: 

(i) To be responsible for, or complicit 

in, or to have directly or indirectly 

engaged or attempted to engage in, any 

of the following: 

(A) Actions or policies that threaten 

the peace, security, or stability of 

Sudan; 

(B) Actions or policies that obstruct, 

undermine, delay, or impede, or pose a 

significant risk of obstructing, 

undermining, delaying, or impeding, the 

formation or operation of a civilian 

transitional government, Sudan’s 

transition to democracy, or a future 

democratically elected government; 

(C) Actions or policies that have the 

purpose or effect of undermining 

democratic processes or institutions in 

Sudan; 

(D) Censorship or other actions or 

policies that prohibit, limit, or penalize 

the exercise of freedoms of expression, 

association, or peaceful assembly by 

individuals in Sudan, or that limit 

access to free and independent news or 

information in or with respect to Sudan; 

(E) Corruption, including bribery, 

misappropriation of state assets, and 

interference with public processes such 

as government oversight of parastatal 

budgets and revenues for personal 

benefit; 

(F) Serious human rights abuse, 

including serious human rights abuse 

related to political repression, in or with 

respect to Sudan; 

(G) The targeting of women, children, 

or any other civilians through the 

commission of acts of violence 

(including killing, maiming, torture, or 

rape or other sexual violence), 

abduction, forced displacement, or 

attacks on schools, hospitals, religious 

sites, or locations where civilians are 

seeking refuge, or through conduct that 

would constitute a serious abuse or 

violation of human rights or a violation 

of international humanitarian law; 

(H) The obstruction of the activities of 

United Nations missions—including 

peacekeeping missions, as well as 

diplomatic or humanitarian missions— 

in Sudan, or of the delivery of, 

distribution of, or access to 

humanitarian assistance; or 

(I) Attacks against United Nations 

missions, including peacekeeping 

operations; 

(ii) To be or have been a leader, 

official, senior executive officer, or 

member of the board of directors of any 

entity: 

(A) That has, or whose members have, 

engaged in any activity described in 

paragraph (a)(3)(i) of this section 

relating to the tenure of such leader, 

official, senior executive officer, or 

member of the board of directors; or 

(B) Whose property and interests in 

property are blocked pursuant to this 

order relating to the tenure of such 

leader, official, senior executive officer, 

or member of the board of directors; 

(iii) To be a spouse or adult child of 

any person whose property and interests 

in property are blocked pursuant to 

paragraph (a)(3) of this section; 

(iv) To have materially assisted, 

sponsored, or provided financial, 

material, or technological support for, or 

goods or services to or in support of, any 

activity described in paragraph (a)(3)(i) 

of this section or any person whose 

property and interests in property are 

blocked pursuant to paragraph (a)(3) of 

this section; or 

(v) 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)(3) of this section. 

(b) The prohibitions in this section 

include, but are not limited to, 

prohibitions on the following 

transactions when engaged in by a 

United States person or within the 

United States: 

(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 otherwise authorized by 

this part or by a specific license 

expressly referring to this section, any 

dealing in any security (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, any person whose property 

and interests in property are blocked 

pursuant to this section is prohibited. 


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This prohibition includes but is not 

limited to 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 such 

security on or after the effective date. 

This prohibition 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 security may have or might 

appear to have assigned, transferred, or 

otherwise disposed of the security. 

(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 4, 2023 pursuant to the 

national emergency declared in E.O. 

13067 of November 3, 1997 and 

expanded by E.O. 13400 of April 26, 

2006 and E.O. 14098 of May 4, 2023 are 

prohibited pursuant to this part. 

Note 1 to § 546.201. The names of persons 

listed in, or designated or identified as 

blocked pursuant to E.O. 13067, or any 

further Executive orders issued pursuant to 

the national emergency declared therein, 

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. 13400: ‘‘[DARFUR]’’; for 

E.O. 14098: ‘‘[SUDAN–EO14098]’’; and for 

any further Executive orders issued pursuant 

to the national emergency declared in E.O. 

13067 using the identifier formulation 

‘‘[SUDAN–E.O.[E.O. number pursuant to 

which the person’s property and interests in 

property are blocked]].’’ The SDN List is 

accessible through the following page on 

OFAC’s website: www.treasury.gov/sdn. 

Additional information pertaining to the SDN 

List can be found in appendix A to this 

chapter. See § 546.411 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 § 546.201. 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. The names of persons whose 

property and interests in property are 

blocked pending investigation pursuant to 

this section also are published in the Federal 

Register and incorporated into the SDN List 

using the following identifiers: for E.O. 

13400: ‘‘[BPI–DARFUR]’’; for E.O. 14098, 

‘‘[BPI–SUDAN–EO14098]’’; and for any 

further Executive orders issued pursuant to 

the national emergency declared in E.O. 

13067: using the identifier formulation 

‘‘[BPI–SUDAN-[E.O. number pursuant to 

which the person’s property and interests in 

property are blocked pending 

investigation]].’’ 

Note 3 to § 546.201. Sections 501.806 and 

501.807 of this chapter describe the 

procedures to be followed by persons 

seeking, respectively, the unblocking of 

funds that they believe were blocked due to 

mistaken identity, or administrative 

reconsideration of their status as persons 

whose property and interests in property are 

blocked pursuant to this section. 

■ 4. Amend § 546.202 by: 

■ a. Revising and republishing 

paragraph (a); 

■ b. In paragraph (b), removing 

‘‘§ 546.201(a)’’ and adding in its place 

‘‘§ 546.201’’. 

■ c. Revising paragraph (c). 

■ d. In paragraph (d)(3)(i), removing 

‘‘license, or other directive’’ and adding 

in its place ‘‘order, directive, license,’’. 

■ e. Redesignating paragraph (e) as 

paragraph (f). 

■ f. Redesignating Note to paragraph (d) 

of § 546.202 as paragraph (e). 

■ g. In newly redesignated paragraph 

(e), removing ‘‘(d)(1) and (d)(2)’’ and 

adding in its place ‘‘(d)(1) and (2)’’. 

■ h. Revising newly redesignated 

paragraph (f); 

■ i. Removing ‘‘the Director of the Office 

of Foreign Assets Control’’ wherever it 

appears and adding in its place 

‘‘OFAC’’. 

The revisions read as follows: 

§ 546.202 Effect of transfers violating the 

provisions of this part. 

(a) Any transfer after the effective date 

that is in violation of any provision of 

this part or of any regulation, ruling, 

instruction, order, directive, or license 

issued pursuant to this part, and that 

involves any property or interest in 

property blocked pursuant to § 546.201, 

is null and void and shall not be the 

basis for the assertion or recognition of 

any interest in or right, remedy, power, 

or privilege with respect to such 

property or interest in property. 

* * * * * 

(c) Unless otherwise provided, a 

license or other authorization issued by 

OFAC before, during, or after a transfer 

shall validate such transfer or make it 

enforceable to the same extent that it 

would be valid or enforceable but for 

the provisions of this part and any 

regulation, ruling, instruction, order, 

directive, or license issued pursuant to 

this part. 

* * * * * 

(f) Unless licensed pursuant to this 

part, any attachment, judgment, decree, 

lien, execution, garnishment, or other 

judicial process is null and void with 

respect to any property or interest in 

property blocked pursuant to § 546.201. 

■ 5. Revise § 546.205 to read as follows: 

§ 546.205 Evasions; attempts; causing 

violations; conspiracies. 

(a) Any transaction on or after the 

effective date that evades or avoids, has 

the purpose of evading or avoiding, 

causes a violation of, or attempts to 

violate any of the prohibitions set forth 

in this part is prohibited. 

(b) Any conspiracy formed to violate 

the prohibitions set forth in this part is 

prohibited. 

■ 6. Add § 546.206 to read as follows: 

§ 546.206 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) (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. 

(b) International Emergency Economic 

Powers Act. The prohibitions contained in 

this part do not apply to any transactions that 

are exempt pursuant to section 203(b) of the 

International Emergency Economic Powers 

Act (50 U.S.C. 1702(b)). 

(c) Official business. The prohibitions 

contained in § 546.201(a)(3) do not apply to 

transactions for the conduct of the official 

business of the United States Government or 

the United Nations (and its Specialized 

Agencies, Programmes, Funds, and Related 

Organizations) by employees, grantees, or 

contractors thereof. 

Note 2 to § 546.206. See § 546.510 for a 

general license authorizing transactions for 

the conduct of the official business of the 

United States Government not otherwise 

exempt. 

Note 3 to § 546.206. See § 546.511 for a 

general license authorizing transactions for 

the conduct of the official business of certain 

international organizations and entities not 

otherwise exempt. 


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Subpart C—General Definitions 

§§ 546.305 through 546.313 

[Redesignated] 

■ 7. Redesignate §§ 546.305 through 

546.313 as follows: 

Old section New section 

546.305 546.308 

546.306 546.309 

546.307 546.311 

546.308 546.312 

546.309 546.313 

546.310 546.314 

546.311 546.315 

546.312 546.316 

546.313 546.305 

■ 8. Add § 546.300 to read as follows: 

§ 546.300 Applicability of definitions. 

The definitions in this subpart apply 

throughout the entire part. 

■ 9. Revise and republish § 546.302 to 

read as follows: 

§ 546.302 Blocked account; blocked 

property. 

The terms blocked account and 

blocked property mean any account or 

property subject to the prohibitions in 

§ 546.201 held in the name of a person 

whose property and interests in 

property are blocked pursuant to 

§ 546.201, or in which such person has 

an interest, and with respect to which 

payments, transfers, exportations, 

withdrawals, or other dealings may not 

be made or effected except pursuant to 

a license or other authorization from 

OFAC expressly authorizing such 

action. 

Note 1 to § 546.302: See § 546.411 

concerning the blocked status of property 

and interests in property of an entity that is 

directly or indirectly owned, whether 

individually or in the aggregate, 50 percent 

or more by one or more persons whose 

property and interests in property are 

blocked pursuant to § 546.201. 

■ 10. Revise § 546.303 to read as 

follows: 

§ 546.303 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 a person whose 

property and interests in property are 

blocked pursuant to § 546.201(a)(1), 

12:01 a.m. eastern daylight time, April 

27, 2006; 

(2) With respect to a person whose 

property and interests in property are 

otherwise blocked pursuant to 

§ 546.201, the earlier of the date of 

actual or constructive notice that such 

person’s property and interests in 

property are blocked. 

(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 is published in the Federal 

Register. 

§ 546.305 [Amended] 

■ 11. Amend newly designated 

§ 546.305 as follows: 

■ a. Remove ‘‘, as used in 

§ 546.201(a)(2)(vii) of this part,’’. 

■ b. Remove ’’ but not limited to’’. 

■ 12. Add § 546.306 to read as follows: 

§ 546.306 Foreign person. 

The term foreign person means any 

person that is not a U.S. person. 

§ 546.307 [Reserved] 

■ 13. Add and reserve § 546.307. 

§ 546.309 [Amended] 

■ 14. Revise newly designated § 546.309 

as follows: 

(a) Except as otherwise provided in 

this part, the term license means any 

license or authorization contained in or 

issued pursuant to this part. 

(b) The term general license means 

any license or authorization the terms of 

which are set forth in subpart E of this 

part or made available on OFAC’s 

website: https://ofac.treasury.gov/. 

(c) The term specific license means 

any license or authorization issued 

pursuant to this part but not set forth in 

subpart E of this part or made available 

on OFAC’s website: https://

ofac.treasury.gov. 

■ 15. Add § 546.310 to read as follows: 

§ 546.310 OFAC. 

The term OFAC means the 

Department of the Treasury’s Office of 

Foreign Assets Control. 

§ 546.312 [Amended] 

■ 16. In newly designated § 546.312, 

remove ‘‘, but are not limited to,’’. 

§ 546.313 [Amended] 

■ 17. Amend newly designated 

§ 546.313 by removing ‘‘ and, without 

limitation upon the foregoing’’ and 

adding, in its place, ‘‘. Without 

limitation on the foregoing, it’’. 

■ 18. Revise newly redesignated 

§ 546.315 to read as follows: 

§ 546.315 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 

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 

■ 19. Revise § 546.401 to read as 

follows: 

§ 546.401 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. 

■ 20. Revise § 546.402 to read as 

follows: 

§ 546.402 Effect of amendment. 

Unless otherwise specifically 

provided, any amendment, 

modification, or revocation of any 

provision in or appendix to this part or 

chapter or of any regulation, ruling, 

instruction, order, directive, or license 

issued by OFAC does not affect any act 

done or omitted, or any civil or criminal 

proceeding commenced or pending, 

prior to such amendment, modification, 

or revocation. All penalties, forfeitures, 

and liabilities under any such 

regulation, ruling, instruction, order, 

directive, or license continue and may 

be enforced as if such amendment, 

modification, or revocation had not 

been made. 

§ 546.403 [Amended] 

■ 21. Amend § 546.403 as follows: 

■ a. In paragraph (a), 

■ i. Add ‘‘ whose property and interests 

in property are blocked pursuant to 

§ 546.201’’ after ‘‘away from a person’’; 

and 


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■ ii. Remove ‘‘or any other part of this 

chapter’’; and 

■ b. Remove ‘‘§ 546.201(a)’’ wherever it 

appears and add in its place 

‘‘§ 546.201’’. 

■ 22. Revise § 546.404 to read as 

follows: 

§ 546.404 Transactions ordinarily incident 

to a licensed transaction. 

(a) Any transaction ordinarily 

incident to a licensed transaction and 

necessary to give effect thereto is also 

authorized, except: 

(1) An ordinarily incident transaction, 

not explicitly authorized within the 

terms of the license, by or with a person 

whose property and interests in 

property are blocked pursuant to 

§ 546.201; or 

(2) An ordinarily incident transaction, 

not explicitly authorized within the 

terms of the license, involving a debit to 

a blocked account or a transfer of 

blocked property. 

(b) For example, a license authorizing 

a person to complete a securities sale 

involving Company A, whose property 

and interests in property are blocked 

pursuant to § 546.201, also authorizes 

other persons to engage in activities that 

are ordinarily incident and necessary to 

complete the sale, including 

transactions by the buyer, broker, 

transfer agents, and banks, provided that 

such other persons are not themselves 

persons whose property and interests in 

property are blocked pursuant to 

§ 546.201. 

§ 546.405 [Amended] 

■ 23. Amend § 546.405 as follows: 

■ a. In both places where it occurs, 

remove ‘‘§ 546.201(a)’’ and add in its 

place ‘‘§ 546.201’’. 

■ b. In Note to § 546.405, remove 

‘‘§§ 546.507 and 546.508’’ and add in its 

place ‘‘§§ 546.507 and 546.509’’. 

§ 546.410 [Amended] 

■ 24. Amend § 546.410 by removing 

‘‘bank’’ and adding in its place 

‘‘financial institution’’. 

■ 25. Add § 546.412 to read as follows: 

§ 546.412 Entities of which one or more 

blocked persons is a member, leader, 

official, senior executive officer, or 

otherwise exercises control. 

(a) The property and interests in 

property of an entity, including any 

political subdivision, agency, or 

instrumentality of a governmental 

entity, are not blocked solely because 

one or more persons whose property 

and interests in property are blocked 

pursuant to § 546.201 is a member, 

leader, official, senior executive officer, 

or otherwise exercises control. 

Note 1 to paragraph (a). See § 546.411 

concerning the blocked status of property 

and interests in property of an entity that is 

directly or indirectly owned, whether 

individually or in the aggregate, 50 percent 

or more by one or more persons whose 

property and interests in property are 

blocked pursuant to § 546.201. 

(b) For example, U.S. persons may not, 

except as authorized or exempt pursuant to 

this part, engage in the following transactions 

with a person whose property and interests 

in property are blocked pursuant to 

§ 546.201: enter into contracts that are signed 

by a blocked person, enter into negotiations 

with a blocked person, or process 

transactions, directly or indirectly, on behalf 

of a person whose property and interests in 

property are blocked pursuant to § 546.201. 

However, U.S. persons are not prohibited 

from engaging in a routine interaction with 

an agency in which a blocked person is an 

official, but which does not involve the 

blocked person directly or indirectly. 

Note 2 to § 546.412. OFAC encourages U.S. 

persons to be cautious in engaging in 

transactions with any entity of which a 

person whose property and interests in 

property are blocked pursuant to § 546.201 is 

a member, leader, official, senior executive 

officer, or otherwise exercises control to 

ensure that U.S. persons are not engaged in 

transactions, directly or indirectly, with a 

blocked person, except as authorized or 

exempt pursuant to this part. 

Subpart E—Licenses, Authorizations, 

and Statements of Licensing Policy 

■ 26. Redesignate §§ 546.508 through 

546.512 as follows: 

Old section New section 

546.508 546.509 

546.509 546.510 

546.510 546.511 

546.511 546.512 

546.512 546.513 

■ 27. Revise and republish § 546.501 to 

read as follows: 

§ 546.501 General and specific licensing 

procedures. 

For provisions relating to licensing 

procedures, see part 501, subpart E of 

this chapter. Licensing actions taken 

pursuant to part 501 of this chapter with 

respect to the prohibitions contained in 

this part are considered actions taken 

pursuant to this part. General licenses 

and statements of licensing policy 

relating to this part also may be 

available through the Sudan 

Stabilization Sanctions Regulations 

sanctions page on OFAC’s website: 

https://ofac.treasury.gov. 

■ 28. Revise § 546.502 to read as 

follows: 

§ 546.502 Effect of license or other 

authorization. 

(a) No license or other authorization 

contained in this part, or otherwise 

issued by OFAC, authorizes or validates 

any transaction effected prior to the 

issuance of such license or other 

authorization, unless specifically 

provided in such license or 

authorization. 

(b) No regulation, ruling, instruction, 

order, directive, or license authorizes 

any transaction prohibited under this 

part unless the regulation, ruling, 

instruction, order, directive, or license 

is issued by OFAC and specifically 

refers to this part. No regulation, ruling, 

instruction, order, directive, or license 

referring to this part shall be deemed to 

authorize any transaction prohibited by 

any other part of this chapter unless the 

regulation, ruling, instruction, order, 

directive, or license specifically refers to 

such part. 

(c) Any regulation, ruling, instruction, 

order, directive, or license authorizing 

any transaction prohibited under this 

part has the effect of removing a 

prohibition contained in this part from 

the transaction, but only to the extent 

specifically stated by its terms. Unless 

the regulation, ruling, instruction, order, 

directive, or license otherwise specifies, 

such an authorization does not create 

any right, duty, obligation, claim, or 

interest in, or with respect to, any 

property that would not otherwise exist 

under ordinary principles of law. 

(d) Nothing contained in this part 

shall be construed to supersede the 

requirements established under any 

other provision of law or to relieve a 

person from any requirement to obtain 

a license or other authorization from 

another department or agency of the 

U.S. government in compliance with 

applicable laws and regulations subject 

to the jurisdiction of that department or 

agency. For example, exports of goods, 

services, or technical data that are not 

prohibited by this part or that do not 

require a license by OFAC nevertheless 

may require authorization by the U.S. 

Department of Commerce, the U.S. 

Department of State, or other agencies of 

the U.S. government. 

(e) No license or other authorization 

contained in or issued pursuant to this 

part authorizes transfers of or payments 

from blocked property or debits to 

blocked accounts unless the license or 

other authorization explicitly authorizes 

the transfer of or payment from blocked 

property or the debit to a blocked 

account. 

(f) Any payment relating to a 

transaction authorized in or pursuant to 

this part that is routed through the U.S. 

financial system should reference the 


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relevant OFAC general or specific 

license authorizing the payment to 

avoid the blocking or rejection of the 

transfer. 

■ 29. Revise § 546.507 to read as 

follows: 

§ 546.507 Provision of certain legal 

services. 

(a) The provision of the following 

legal services to or on behalf of persons 

whose property and interests in 

property are blocked pursuant to 

§ 546.201 is authorized, provided that 

any receipt of payment of professional 

fees and reimbursement of incurred 

expenses must be authorized pursuant 

to § 546.508, which authorizes certain 

payments for legal services from funds 

originating outside the United States; 

via specific license; or otherwise 

pursuant to this part: 

(1) Provision of legal advice and 

counseling on the requirements of and 

compliance with the laws of the United 

States or any jurisdiction within the 

United States, provided that such advice 

and counseling are not provided to 

facilitate transactions in violation of this 

part; 

(2) Representation of persons named 

as defendants in or otherwise made 

parties to legal, arbitration, or 

administrative proceedings before any 

U.S. Federal, state, or local court or 

agency; 

(3) Initiation and conduct of legal, 

arbitration, or administrative 

proceedings before any U.S. Federal, 

state, or local court or agency; 

(4) Representation of persons before 

any U.S. Federal, state, or local court or 

agency with respect to the imposition, 

administration, or enforcement of U.S. 

sanctions against such persons; and 

(5) Provision of legal services in any 

other context in which prevailing U.S. 

law requires access to legal counsel at 

public expense. 

(b) The provision of any other legal 

services to or on behalf of persons 

whose property and interests in 

property are blocked pursuant to 

§ 546.201, not otherwise authorized in 

this part, requires the issuance of a 

specific license. 

(c) U.S. persons do not need to obtain 

specific authorization to provide related 

services, such as making filings and 

providing other administrative services, 

that are ordinarily incident to the 

provision of services authorized by 

paragraph (a) of this section. 

Additionally, U.S. persons who provide 

services authorized by paragraph (a) of 

this section do not need to obtain 

specific authorization to contract for 

related services that are ordinarily 

incident to the provision of those legal 

services, such as those provided by 

private investigators or expert 

witnesses, or to pay for such services. 

See § 546.404. 

(d) Entry into a settlement agreement 

or the enforcement of any lien, 

judgment, arbitral award, decree, or 

other order through execution, 

garnishment, or other judicial process 

purporting to transfer or otherwise alter 

or affect property or interests in 

property blocked pursuant to § 546.201 

is prohibited unless licensed pursuant 

to this part. 

Note 1 to § 546.507. Pursuant to part 501, 

subpart E, of this chapter, U.S. persons 

seeking administrative reconsideration or 

judicial review of their designation or the 

blocking of their property and interests in 

property may apply for a specific license 

from OFAC to authorize the release of certain 

blocked funds for the payment of 

professional fees and reimbursement of 

incurred expenses for the provision of such 

legal services where alternative funding 

sources are not available. 

■ 30. Add § 546.508 to read as follows: 

§ 546.508 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 

§ 546.507(a) to or on behalf of any 

person whose property and interests in 

property are blocked pursuant to 

§ 546.201, 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 

§ 546.507(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 

§ 546.201, any other part of this chapter, 

or any Executive order or statute has an 

interest. 

(b) Records. Consistent with § 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 

§ 501.602 of this chapter. 

■ 31. Revise newly redesignated 

§ 546.509 to read as follows: 

§ 546.509 Emergency medical services. 

The provision and receipt of 

nonscheduled emergency medical 

services that are prohibited by this part 

are authorized. 

■ 32. Amend newly redesignated 

§ 546.511 by: 

■ a. In paragraph (a)(5), removing 

‘‘and’’; 

■ b. In paragraph (a)(6), removing ‘‘.’’ 

and adding in its place ‘‘; and’’; and 

■ c. Adding paragraph (a)(7). 

The addition reads as follows: 

§ 546.511 Official business of certain 

international organizations and entities. 

* * * * * 

(a) * * * 

(7) The African Union, including the 

African Union Commission and other 

subsidiary bodies and organs. 

* * * * * 

■ 33. Revise newly redesignated 

§ 546.513 to read as follows: 

§ 546.513 Transactions related to the 

provision of agricultural commodities, 

medicine, medical devices, replacement 

parts and components, or software 

updates, and the extraction, processing, 

transport, sale, or distribution of water in 

Sudan. 

(a) All transactions prohibited by this 

part that are related to the provision of 

agricultural commodities, medicine, 

medical devices, replacement parts and 

components for medical devices, or 

software updates for medical devices to 

Sudan or to persons in third countries 

purchasing specifically for resale to 

Sudan, or to an individual whose 

property and interests in property are 

blocked pursuant to this part in 

quantities consistent with personal, 

non-commercial use, are authorized. 

(b) All transactions prohibited by this 

part that are related to the extraction, 

processing, transport, sale, or 

distribution of water, including the 


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maintenance or repair of water 

pipelines, are authorized. 

(c) For the purposes of this general 

license, agricultural commodities, 

medicine, and medical devices are 

defined as follows: 

(1) Agricultural commodities. 

Agricultural commodities are products: 

(i) That fall within the term 

‘‘agricultural commodity’’ as defined in 

section 102 of the Agricultural Trade 

Act of 1978 (7 U.S.C. 5602); and 

(ii) That are intended for ultimate use 

in Sudan as: 

(A) Food for humans (including raw, 

processed, and packaged foods; live 

animals; vitamins and minerals; food 

additives or supplements; and bottled 

drinking water) or animals (including 

animal feeds); 

(B) Seeds for food crops; 

(C) Fertilizers or organic fertilizers; or 

(D) Reproductive materials (such as 

live animals, fertilized eggs, embryos, 

and semen) for the production of food 

animals. 

(2) Medicine. Medicine is an item that 

falls within the definition of the term 

‘‘drug’’ in section 201 of the Federal 

Food, Drug, and Cosmetic Act (21 U.S.C. 

321). 

(3) Medical devices. A medical device 

is an item that falls within the definition 

of ‘‘device’’ in section 201 of the Federal 

Food, Drug, and Cosmetic Act (21 U.S.C. 

321). 

Note 1 to § 546.513. This general license 

does not relieve any person authorized 

thereunder from complying with any other 

applicable laws or regulations. 

Subpart G—Penalties and Findings of 

Violation 

■ 34. Revise the heading of subpart G to 

read as set forth above. 

■ 35. Revise § 546.701 to read as 

follows: 

§ 546.701 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, license, or prohibition 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, ruling, instruction, order, 

directive, license, or prohibition 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 and, if 

a natural person, be imprisoned for not 

more than 20 years, or both. 

(e) Violations involving transactions 

described at section 203(b)(1), (3), and 

(4) of IEEPA shall be subject only to the 

penalties set forth in paragraph (d) of 

this section. 

(f) Violations of this part may also be 

subject to other applicable laws. 

■ 36. Revise § 546.702 to read as 

follows: 

§ 546.702 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 PrePenalty 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 


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15752 Federal Register / Vol. 89, No. 44 / Tuesday, March 5, 2024 / Rules and Regulations 

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 PrePenalty 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. 

■ 37. Add § 546.705 to read as follows: 

§ 546.705 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 datestamped 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 

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 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—Procedures. [Amended] 

■ 38. Revise and republish § 546.802 to 

read as follows: 

§ 546.802 Delegation of certain authorities 

of the Secretary of the Treasury 

Any action that the Secretary of the 

Treasury is authorized to take pursuant 

to Executive Order 13400, Executive 

Order 14098, and any further Executive 

orders relating to the national 

emergency declared in Executive Order 

13067, 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. 

§ § 546.503, 546.704. [Amended] 

■ 39. In addition to the amendments set 

forth above, in 31 CFR part 546, remove 

the words ‘‘the Director of the Office of 

Foreign Assets Control’’ and add, in 

their place, the words ‘‘OFAC’’ in the 

following places: 

■ a. Section 546.503; and 

■ b. Section 546.704. 

§§ 546.203, 546.204, 546.408, 546.703. 

[Amended] 

■ 40. In addition to the amendments set 

forth above, in 31 CFR part 546, remove 

the words ‘‘the Office of Foreign Assets 

Control’’ and add, in their place, the 

words ‘‘OFAC’’ in the following places: 

■ a. Section 546.203(a) and (c); 


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Federal Register / Vol. 89, No. 44 / Tuesday, March 5, 2024 / Rules and Regulations 15753 

■ b. Section 546.204(b); 

■ c. Section 546.408; and 

■ d. Section 546.703. 

§§ 546.203, 546.204, 546.406, 546.408, 

546.409, 546.504, and 546.506. [Amended] 

■ 41. In addition to the amendments set 

forth above, in 31 CFR part 546, remove 

the words ‘‘546.201(a)’’ and add, in their 

place, the words ‘‘546.201’’ in the 

following places: 

■ a. Section 546.203(a), (c), (d), and (f); 

■ b. Section 546.204(a) and (b); 

■ c. Section 546.406; 

■ d. Section 546.408; 

■ e. Section 546.409; 

■ f. Section 546.504; and 

■ g. Section 546.506. 

Bradley T. Smith, 

Director, Office of Foreign Assets Control. 

[FR Doc. 2024–04500 Filed 3–1–24; 8:45 am] 

BILLING CODE 4810–AL–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 3 

Processing Applications for Health 

Care, Sergeant First Class Heath 

Robinson Honoring Our Promise To 

Address Comprehensive Toxics Act of 

2022, or the Honoring Our PACT Act of 

2022 

AGENCY: Department of Veterans Affairs. 

ACTION: Notification of sub-regulatory 

guidance. 

SUMMARY: This notice informs the public 

of the Department of Veterans Affairs 

(VA) implementation of the Honoring 

our PACT Act of 2022, which expands 

health care to three new cohorts of 

toxic-exposed veterans. 

DATES: The guidance is effective upon 

publication. VA invites comments on 

this notice and its plan for 

implementation. To ensure VA 

considers your comment, comments are 

to be submitted on or before April 4, 

2024. 

ADDRESSES: Comments must be 

submitted through www.regulations.gov. 

Except as provided below, comments 

received before the close of the 

comment period will be available at 

www.regulations.gov for public viewing, 

inspection, or copying, including any 

personally identifiable or confidential 

business information that is included in 

a comment. We post the comments 

received before the close of the 

comment period on 

www.regulations.gov as soon as possible 

after they have been received. VA will 

not post on www.regulations.gov public 

comments that make threats to 

individuals or institutions or suggest 

that the commenter will take actions to 

harm an individual. VA encourages 

individuals not to submit duplicative 

comments; however, we will post 

comments from multiple unique 

commenters even if the content is 

identical or nearly identical to other 

comments. Any public comment 

received after the comment period’s 

closing date is considered late and will 

not be considered. 

FOR FURTHER INFORMATION CONTACT: 

Ralph Weishaar, Director, Business 

Support Office, VHA Member Services 

(15MEM) Business Policy, Department 

of Veterans Affairs, 810 Vermont 

Avenue NW, Washington, DC 20420, 

202–461–9700 (this is not a toll-free 

number). 

SUPPLEMENTARY INFORMATION: On August 

10, 2022, the President signed into law 

the Honoring our PACT Act of 2022 (the 

PACT Act), Public Law 117–168. 

Section 103(a)(1) of the PACT Act 

amended section 1710(e)(1) of title 38, 

United States Code (U.S.C.) to establish 

eligibility for hospital care, medical 

services, and nursing home care for 

three new cohorts of toxic-exposed 

veterans. Sections 1710(e)(1)(G) through 

(I) describe these three new cohorts of 

toxic-exposed veterans as follows: 

• Cohort 1: Veterans who participated 

in a toxic exposure risk activity while 

serving on active duty, active duty for 

training, or inactive duty training. (See 

38 U.S.C. 1710(e)(1)(G)). 

• Cohort 2: Covered veterans as 

defined in 38 U.S.C. 1119(c). (See 38 

U.S.C. 1710(e)(1)(H)). Covered veterans 

are those veterans who: 

Æ Performed active military, naval, 

air, or space service on or after August 

2, 1990, while assigned to a duty station 

in (including airspace above): Bahrain, 

Iraq, Kuwait, Oman, Qatar, Saudi 

Arabia, Somalia, or the United Arab 

Emirates; or 

Æ Performed active military, naval, 

air, or space service on or after 

September 11, 2001, while assigned to 

a duty station in (including airspace 

above) Afghanistan, Djibouti, Egypt, 

Jordan, Lebanon, Syria, Yemen, 

Uzbekistan, or any other country 

determined relevant by VA (note: VA 

has not determined any other country 

relevant at this time). 

• Cohort 3: Veterans who deployed in 

support of Operation Enduring 

Freedom, Operation Freedom’s Sentinel, 

Operation Iraqi Freedom, Operation 

New Dawn, Operation Inherent Resolve, 

and Resolute Support Mission. (See 38 

U.S.C. 1710(e)(1)(I)). 

Section 1710(e)(6)(A), as added by 

section 103(a) of the PACT Act, 

established a specific schedule for 

eligibility for these veterans depending 

upon their cohort and their date of 

discharge or release from the Armed 

Forces. However, section 

1710(e)(6)(B)(i) authorizes VA to 

modify, to an earlier date, the start dates 

of VA health care eligibility for the three 

new cohorts of toxic-exposed veterans. 

The Secretary has determined 

modifying these dates is appropriate 

based on the number of veterans 

receiving hospital care, medical 

services, and nursing home care under 

section 1710(e)(1)(G) through (I) and the 

resources available to VA. 

Consequently, VA is announcing that, 

effective March 5, 2024, veterans in the 

three cohorts described above, 

corresponding to section 1710(e)(1)(G) 

through (I), are eligible to enroll in VA 

health care on this basis. Modifying the 

phased-in schedule to an earlier single 

eligibility expansion date will provide 

an all-at-once approach for newly 

eligible veterans based on the 

amendments made by section 103(a) of 

the PACT Act. 

To help expedite the VA health care 

Priority Group upgrade process, VA is 

developing and will implement system 

enhancements to VHA’s Enrollment 

System (VES) to assess the enrollment 

records of veterans who VA enrolled in 

Priority Group 6 based on their status as 

a combat veteran (as described in 38 

U.S.C. 1710(e)(1)(D)) to determine their 

eligibility for continued assignment to 

Priority Group 6 based on their 

qualification in Cohort 2 or 3. 

Additionally, VES will assess the 

enrollment records of veterans enrolled 

in Priority Groups 7 and 8 to determine 

their eligibility for assignment to 

Priority Group 6 under Cohort 2 or 3. By 

the end of fiscal year 2024, VA will 

begin conducting targeted outreach to 

veterans currently enrolled in Priority 

Groups 7 and 8 whom VA could not 

determine eligibility for assignment to 

Priority Group 6 based on being in 

Cohorts 1, 2, or 3. VA will provide 

guidance to these veterans on the new 

authorities, along with instructions on 

how to submit a VA Form 10–10EZR, 

Health Benefits Update Form, for 

consideration of an upgrade to their 

enrollment Priority Group. 

Eligibility Based on Toxic Exposure 

Risk Activity (TERA) 

Background: Cohort 1 veterans are 

those who participated in a toxic 

exposure risk activity (TERA) while 

serving on active duty, active duty for 

training, or inactive duty training. If the 

veteran only participated in a TERA 


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