3206 Federal Register / Vol. 87, No. 14 / Friday, January 21, 2022 / Rules and Regulations 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 501 

Amendment of Applicable Schedule 

Amount 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (OFAC) is issuing this final rule 

to make a technical amendment to the 

definition of the term ‘‘applicable 

schedule amount’’ in its regulations. In 

recent years, OFAC has adjusted its civil 

monetary penalties (CMPs) as required 

by the Federal Civil Penalties Inflation 

Adjustment Act, as amended by the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015. While OFAC’s ‘‘applicable 

schedule amount’’ values are not civil 

monetary penalties that are required to 

be adjusted pursuant to such statute, 

OFAC is updating the definition of the 

term ‘‘applicable schedule amount’’ so 

that it will automatically rise with 

OFAC’s CMPs, removing the necessity 

of updating the applicable schedule 

amount on an annual basis. 

DATES: This rule is effective January 21, 

2022. 

FOR FURTHER INFORMATION CONTACT: 

OFAC: Assistant Director for Licensing, 

tel.: 202–622–2480; Assistant Director 

for Regulatory Affairs, tel.: 202–622– 

4855; or Assistant Director for Sanctions 

Compliance & Evaluation, tel.: 202–622– 

2490. 

SUPPLEMENTARY INFORMATION: 

Electronic Availability 

This document and additional 

information concerning OFAC are 

available on OFAC’s website: 

www.treas.gov/ofac. 

Background 

On September 8, 2008, OFAC issued 

as an interim final rule the ‘‘Economic 

Sanctions Enforcement Guidelines’’ 

(Enforcement Guidelines) as appendix A 

to the Reporting, Procedures and 

Penalties Regulations at 31 CFR part 501 

(73 FR 51933, September 8, 2008). On 

November 9, 2009, OFAC re-issued as a 

final rule the Enforcement Guidelines 

(74 FR 57593, November 9, 2009). 

OFAC’s Enforcement Guidelines 

provide a general framework for the 

enforcement of all economic sanctions 

programs administered by OFAC. 

Section V.B.2.a.ii. of the Enforcement 

Guidelines states that the base amount 

of a proposed civil penalty in a PrePenalty Notice shall be the ‘‘applicable 

schedule amount,’’ subject to certain 

caps noted in that section, where the 

case is deemed non-egregious and the 

apparent violation has come to OFAC’s 

attention by means other than a 

voluntary self-disclosure. Section I.B. of 

the Enforcement Guidelines provides a 

definition of ‘‘applicable schedule 

amount.’’ 

Separately, as required by the Federal 

Civil Penalties Inflation Adjustment Act 

(1990 Pub. L. 101–410, 104 Stat. 890; 28 

U.S.C. 2461 note), as amended by the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (Pub. L. 114–74, 129 Stat. 599, 28 

U.S.C. 2461 note) (the FCPIA Act), 

OFAC has adjusted its CMPs seven 

times since the FCPIA Act went into 

effect on November 2, 2015: An initial 

catch-up adjustment on August 1, 2016 

(81 FR 43070, July 1, 2016); an 

additional initial catch-up adjustment 

related to CMPs for failure to comply 

with a requirement to furnish 

information, the late filing of a required 

report, and failure to maintain records 

that were inadvertently omitted from 

the August 1, 2016 initial catch-up 

adjustment on October 5, 2020 (85 FR 

54911, September 3, 2020); and annual 

adjustments on February 10, 2017 (82 

FR 10434, February 10, 2017); March 19, 

2018 (83 FR 11876, March 19, 2018); 

June 14, 2019 (84 FR 27714, June 14, 

2019); April 9, 2020 (85 FR 19884, April 

9, 2020); and March 17, 2021 (86 FR 

14534, March 17, 2021). 

OFAC’s applicable schedule amount 

values in the Enforcement Guidelines, 

while not required to be adjusted 

pursuant to the FCPIA Act, correspond 

in certain ways with OFAC’s CMPs. As 

a result, OFAC issued final rules on 

August 11, 2020 (85 FR 48474, August 

11, 2020) and April 12, 2021 (86 FR 

18895, April 12, 2021) amending the 

definition of ‘‘applicable schedule 

amount’’ in section I.B. of appendix A 

to 31 CFR part 501 to adjust applicable 

schedule amount values for transactions 

valued at $200,000 or more to 

correspond with recent CMP 

adjustments required by the FCPIA Act. 

By a separate rule, OFAC will publish 

its annual adjustment of CMPs pursuant 

to the FCPIA Act for 2022. Today, OFAC 

is amending the definition of 

‘‘applicable schedule amount’’ in 

section I.B. of appendix A to 31 CFR 

part 501 to automatically adjust the 

applicable schedule amount value for 

transactions valued at $200,000 or more 

as new CMP adjustments are published. 

Specifically, OFAC is amending section 

I.B.7. such that in the case of 

transactions valued at $200,000 or more, 

the applicable schedule amount is 

equivalent to the statutory maximum 

civil penalty per violation of the 

International Emergency Economic 

Powers Act (50 U.S.C. 1701–1706, at 

1705) listed in section V.B.2.a.v of 

appendix A to 31 CFR part 501. This 

change is not required pursuant to the 

FCPIA Act; however, OFAC is making 

this change to ensure the applicable 

schedule amount value continues to 

correspond appropriately to OFAC’s 

CMPs as the CMPs are adjusted 

annually pursuant to the FCPIA Act. In 

addition, OFAC is making technical 

edits to the authority citation to conform 

to Federal Register guidance. 

Public Participation 

Because this final rule imposes no 

obligations on any person, but only 

amends OFAC’s enforcement policy and 

procedures based on existing 

substantive rules, provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, opportunity for public 

participation, and delay in effective date 

are inapplicable. Further, this final rule 

is not a significant regulatory action for 

purposes of Executive Order 12866 of 

September 30, 1993, ‘‘Regulatory 

Planning and Review’’ (58 FR 51735, 

October 4, 1993). Because no notice of 

proposed rulemaking is required for this 

rule, the Regulatory Flexibility Act (5 

U.S.C. 601–612) does not apply. 

Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because this rule does not 

impose information collection 

requirements that would require the 

approval of the Office of Management 

and Budget under 44 U.S.C. 3501 et seq. 

List of Subjects in 31 CFR Part 501 

Administrative practice and 

procedure, Banks, Banking, Blocking of 

assets, Exports, Foreign trade, Licensing, 

Penalties, Sanctions. 

For the reasons set forth in the 

preamble, OFAC amends 31 CFR part 

501 as follows: 

PART 501—REPORTING, 

PROCEDURES AND PENALTIES 

REGULATIONS 

■ 1. The authority citation for part 501 

is revised to read as follows: 

Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 

2339B; 19 U.S.C. 3901–3913; 21 U.S.C. 1901– 

1908; 22 U.S.C. 287c, 2370(a), 6009, 6032, 

7205, 8501–8551; 31 U.S.C. 321(b); 50 U.S.C. 

1701–1706, 4301–4341; Pub. L. 101–410, 104 

Stat. 890, as amended (28 U.S.C. 2461 note). 

■ 2. In appendix A to part 501, revise 

section I.B.7. to read as follows: 


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Federal Register / Vol. 87, No. 14 / Friday, January 21, 2022 / Rules and Regulations 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 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 590 

Transnational Criminal Organizations 

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 amending the 

Transnational Criminal Organizations 

Sanctions Regulations and reissuing 

them in their entirety to further 

implement a July 24, 2011 Executive 

order and a March 15, 2019 Executive 

order related to transnational criminal 

organizations. This final rule replaces 

the regulations that were published in 

abbreviated form on January 12, 2012 

and amended on July 23, 2019, and 

includes additional interpretive 

guidance, definitions, general licenses, 

and other regulatory provisions that will 

provide further guidance to the public. 

Due to the number of regulatory sections 

being updated or added, OFAC is 

amending and reissuing the 

Transnational Criminal Organizations 

Sanctions Regulations in their entirety. 

DATES: This rule is effective January 21, 

2022. 

FOR FURTHER INFORMATION CONTACT: 

OFAC: Assistant Director for Licensing, 

202–622–2480; Assistant Director for 

Regulatory Affairs, 202–622–4855; or 

Assistant Director for Sanctions 

Compliance & Evaluation, 202–622– 

2490. 

SUPPLEMENTARY INFORMATION: 

Electronic Availability 

This document and additional 

information concerning OFAC are 

available on OFAC’s website: 

www.treas.gov/ofac. 

Background 

On January 12, 2012, OFAC issued the 

Transnational Criminal Organizations 

Sanctions Regulations, 31 CFR part 590 

(77 FR 1864, January 12, 2012) (the 

‘‘Regulations’’), to implement Executive 

Order (E.O.) 13581 of July 24, 2011, 

‘‘Blocking Property of Transnational 

Criminal Organizations’’ (76 FR 44757, 

July 27, 2011), pursuant to authorities 

delegated to the Secretary of the 

Treasury in E.O. 13581. The Regulations 

were initially issued in abbreviated form 

for the purpose of providing immediate 

guidance to the public. OFAC amended 

the Regulations on July 23, 2019 (84 FR 

35307, July 23, 2019) to implement E.O. 

13863 of March 15, 2019, ‘‘Taking 

Additional Steps to Address the 

National Emergency With Respect to 

Significant Transnational Criminal 

Organizations’’ (84 FR 10255, March 19, 

2019), which amended E.O. 13581. 

OFAC is amending and reissuing the 

Regulations as a more comprehensive 

set of regulations that includes 

additional interpretive guidance and 

definitions, general licenses, and other 

regulatory provisions that will provide 

further guidance to the public. Due to 

the number of regulatory sections being 

updated or added, OFAC is reissuing 

the Regulations in their entirety. 

E.O. 13581 

On July 24, 2011, the President, 

invoking the authority of, inter alia, the 

International Emergency Economic 

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

(IEEPA), issued E.O. 13581. In E.O. 

13581, the President found that the 

activities of significant transnational 

criminal organizations, such as those 

listed in the Annex to E.O. 13581, have 

reached such scope and gravity that 

they threaten the stability of 

international political and economic 

systems. The President further found 

that such organizations are becoming 

increasingly sophisticated and 

dangerous to the United States; they are 

increasingly entrenched in the 

operations of foreign governments and 

the international financial system, 

thereby weakening democratic 

institutions, degrading the rule of law, 

and undermining economic markets. 

The President stated these organizations 

facilitate and aggravate violent civil 

conflicts and increasingly facilitate the 

activities of other dangerous persons. 

The President determined that the 

activities of significant transnational 

criminal organizations constitute an 

unusual and extraordinary threat to the 

national security, foreign policy, and 

economy of the United States and 

declared a national emergency to deal 

with that threat. 

Section 1(a) of E.O. 13581 blocks, 

with certain exceptions, all property 

and interests in property that are in the 

United States, that come within the 

United States, or that are or come within 

the possession or control of any United 

States person of: (i) The persons listed 

in the Annex to E.O. 13581; and (ii) any 

person determined by the Secretary of 

the Treasury, in consultation with the 

Attorney General and the Secretary of 

State: (A) To be a foreign person that 

constitutes a significant transnational 

criminal organization; (B) to have 

materially assisted, sponsored, or 

provided financial, material, or 

technological support for, or goods or 

services to or in support of any person 

whose property and interests in 

property are blocked pursuant to E.O. 

13581; or (C) to be owned or controlled 

by, or to have acted or purported to act 

for or on behalf of, directly or indirectly, 

any person whose property and interests 

in property are blocked pursuant to E.O. 

13581. The property and interests in 

property of the persons described above 

may not be transferred, paid, exported, 

withdrawn, or otherwise dealt in. 

In Section 1(b) of E.O. 13581, the 

President determined that the making of 

donations of certain articles, such as 

food, clothing, and medicine, intended 

to be used to relieve human suffering, as 

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

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

benefit of any person whose property 

and interests in property are blocked 

pursuant to E.O. 13581 would seriously 

impair the President’s ability to deal 

with the national emergency declared in 

E.O. 13581. The President therefore 

prohibited the donation of such items 

except to the extent provided by 

statutes, or in regulations, orders, 

directives, or licenses that may be 

issued pursuant to E.O. 13581. 

Section 1(c) of E.O. 13581 provides 

that the prohibition on any transaction 

or dealing in blocked property or 

interests in property includes the 

making of any contribution or provision 

of funds, goods, or services by, to, or for 

the benefit of any person whose 

property and interests in property are 

blocked pursuant to E.O. 13581, and the 

receipt of any contribution or provision 

of funds, goods, or services from any 

such person. 

Section 2 of E.O. 13581 prohibits any 

transaction by a United States person or 

within the United States that evades or 

avoids, has the purpose of evading or 

avoiding, causes a violation of, or 

attempts to violate any of the 

prohibitions set forth in E.O. 13581, as 


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