[Federal Register Volume 87, Number 14 (Friday, January 21, 2022)]
[Rules and Regulations]
[Pages 3206-3207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01081]



[[Page 3206]]

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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 501


Amendment of Applicable Schedule Amount

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is issuing this final rule to make a technical amendment 
to the definition of the term ``applicable schedule amount'' in its 
regulations. In recent years, OFAC has adjusted its civil monetary 
penalties (CMPs) as required by the Federal Civil Penalties Inflation 
Adjustment Act, as amended by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015. While OFAC's ``applicable 
schedule amount'' values are not civil monetary penalties that are 
required to be adjusted pursuant to such statute, OFAC is updating the 
definition of the term ``applicable schedule amount'' so that it will 
automatically rise with OFAC's CMPs, removing the necessity of updating 
the applicable schedule amount on an annual basis.

DATES: This rule is effective January 21, 2022.

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

SUPPLEMENTARY INFORMATION:

Electronic Availability

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

Background

    On September 8, 2008, OFAC issued as an interim final rule the 
``Economic Sanctions Enforcement Guidelines'' (Enforcement Guidelines) 
as appendix A to the Reporting, Procedures and Penalties Regulations at 
31 CFR part 501 (73 FR 51933, September 8, 2008). On November 9, 2009, 
OFAC re-issued as a final rule the Enforcement Guidelines (74 FR 57593, 
November 9, 2009). OFAC's Enforcement Guidelines provide a general 
framework for the enforcement of all economic sanctions programs 
administered by OFAC. Section V.B.2.a.ii. of the Enforcement Guidelines 
states that the base amount of a proposed civil penalty in a Pre-
Penalty Notice shall be the ``applicable schedule amount,'' subject to 
certain caps noted in that section, where the case is deemed non-
egregious and the apparent violation has come to OFAC's attention by 
means other than a voluntary self-disclosure. Section I.B. of the 
Enforcement Guidelines provides a definition of ``applicable schedule 
amount.''
    Separately, as required by the Federal Civil Penalties Inflation 
Adjustment Act (1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 
note), as amended by the Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C. 
2461 note) (the FCPIA Act), OFAC has adjusted its CMPs seven times 
since the FCPIA Act went into effect on November 2, 2015: An initial 
catch-up adjustment on August 1, 2016 (81 FR 43070, July 1, 2016); an 
additional initial catch-up adjustment related to CMPs for failure to 
comply with a requirement to furnish information, the late filing of a 
required report, and failure to maintain records that were 
inadvertently omitted from the August 1, 2016 initial catch-up 
adjustment on October 5, 2020 (85 FR 54911, September 3, 2020); and 
annual adjustments on February 10, 2017 (82 FR 10434, February 10, 
2017); March 19, 2018 (83 FR 11876, March 19, 2018); June 14, 2019 (84 
FR 27714, June 14, 2019); April 9, 2020 (85 FR 19884, April 9, 2020); 
and March 17, 2021 (86 FR 14534, March 17, 2021).
    OFAC's applicable schedule amount values in the Enforcement 
Guidelines, while not required to be adjusted pursuant to the FCPIA 
Act, correspond in certain ways with OFAC's CMPs. As a result, OFAC 
issued final rules on August 11, 2020 (85 FR 48474, August 11, 2020) 
and April 12, 2021 (86 FR 18895, April 12, 2021) amending the 
definition of ``applicable schedule amount'' in section I.B. of 
appendix A to 31 CFR part 501 to adjust applicable schedule amount 
values for transactions valued at $200,000 or more to correspond with 
recent CMP adjustments required by the FCPIA Act.
    By a separate rule, OFAC will publish its annual adjustment of CMPs 
pursuant to the FCPIA Act for 2022. Today, OFAC is amending the 
definition of ``applicable schedule amount'' in section I.B. of 
appendix A to 31 CFR part 501 to automatically adjust the applicable 
schedule amount value for transactions valued at $200,000 or more as 
new CMP adjustments are published. Specifically, OFAC is amending 
section I.B.7. such that in the case of transactions valued at $200,000 
or more, the applicable schedule amount is equivalent to the statutory 
maximum civil penalty per violation of the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1706, at 1705) listed in section 
V.B.2.a.v of appendix A to 31 CFR part 501. This change is not required 
pursuant to the FCPIA Act; however, OFAC is making this change to 
ensure the applicable schedule amount value continues to correspond 
appropriately to OFAC's CMPs as the CMPs are adjusted annually pursuant 
to the FCPIA Act. In addition, OFAC is making technical edits to the 
authority citation to conform to Federal Register guidance.

Public Participation

    Because this final rule imposes no obligations on any person, but 
only amends OFAC's enforcement policy and procedures based on existing 
substantive rules, provisions of the Administrative Procedure Act (5 
U.S.C. 553) requiring notice of proposed rulemaking, opportunity for 
public participation, and delay in effective date are inapplicable. 
Further, this final rule is not a significant regulatory action for 
purposes of Executive Order 12866 of September 30, 1993, ``Regulatory 
Planning and Review'' (58 FR 51735, October 4, 1993). Because no notice 
of proposed rulemaking is required for this rule, the Regulatory 
Flexibility Act (5 U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this rule does 
not impose information collection requirements that would require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501 et 
seq.

List of Subjects in 31 CFR Part 501

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.

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

PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS

0
1. The authority citation for part 501 is revised to read as follows:

    Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C. 
3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c, 2370(a), 6009, 6032, 
7205, 8501-8551; 31 U.S.C. 321(b); 50 U.S.C. 1701-1706, 4301-4341; 
Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note).


0
2. In appendix A to part 501, revise section I.B.7. to read as follows:

[[Page 3207]]

Appendix A to Part 501--Economic Sanctions Enforcement Guidelines.

* * * * *

1. Definitions

* * * * *

B. * * *

    7. The statutory maximum civil penalty per violation of IEEPA 
listed in section V.B.2.a.v. of this appendix with respect to a 
transaction valued at $200,000 or more.
* * * * *

Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-01081 Filed 1-20-22; 8:45 am]
BILLING CODE 4810-AL-P