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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well as any conspiracy formed to violate 

such prohibitions. 

Section 3 of E.O. 13581 provides 

definitions for certain terms used in the 

order. As discussed further below, 

section 3 of E.O. 13581 was amended by 

E.O. 13863. 

Section 5 of E.O. 13581 authorizes the 

Secretary of the Treasury, in 

consultation with the Attorney General 

and 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. 13581. Section 5 of 

E.O. 13581 also provides that the 

Secretary of the Treasury may redelegate 

any of these functions to other officers 

and agencies of the U.S. Government. 

E.O. 13863 

On March 15, 2019, pursuant to, inter 

alia, IEEPA, the President issued E.O. 

13863. In E.O. 13863, the President took 

additional steps to deal with the 

national emergency with respect to 

significant transnational criminal 

organizations declared in E.O. 13581, in 

view of the evolution of these 

organizations as well as the increasing 

sophistication of their activities, which 

threaten international political and 

economic systems and pose a direct 

threat to the safety and welfare of the 

United States and its citizens, and given 

the ability of these organizations to 

derive revenue through widespread 

illegal conduct, including acts of 

violence and abuse that exhibit a 

wanton disregard for human life as well 

as many other crimes enriching and 

empowering these organizations. E.O. 

13863 amended E.O. 13581 by replacing 

subsection (3)(e) of E.O. 13581 in its 

entirety with a new definition of the 

term ‘‘significant transnational criminal 

organization.’’ OFAC incorporated this 

definition into the Regulations on July 

23, 2019 (84 FR 35307, July 27, 2019). 

E.O. 13863 did not amend the Annex to 

E.O. 13581. 

Current Regulatory Action 

In furtherance of the purpose of E.O. 

13581, as amended by E.O. 13863 

(‘‘amended E.O. 13581’’), OFAC is 

reissuing the Regulations. The 

Regulations implement targeted 

sanctions that are directed at persons 

determined to meet the criteria set forth 

in § 590.201 of the Regulations, as well 

as sanctions that may be set forth in any 

future Executive orders issued pursuant 

to the national emergency declared in 

E.O. 13581. 

Subpart A of the Regulations clarifies 

the relation of this part to other laws 

and regulations. Subpart B of the 

Regulations implements the 

prohibitions contained in sections 1 and 

2 of amended E.O. 13581, as well as the 

prohibitions contained in any further 

Executive orders issued pursuant to the 

national emergency declared in E.O. 

13581. See, e.g., §§ 590.201 and 590.205. 

Persons subject to the blocking 

provisions of amended E.O. 13581, or 

any further Executive order issued 

pursuant to the national emergency 

declared in E.O. 13581, are referred to 

throughout the Regulations as ‘‘persons 

whose property and interests in 

property are blocked pursuant to 

§ 590.201’’ and their names are 

published on OFAC’s Specially 

Designated Nationals and Blocked 

Persons List (SDN List), which is 

accessible via OFAC’s website. Those 

names also are published in the Federal 

Register as they are added to the SDN 

List. 

Sections 590.202 and 590.203 of 

subpart B detail the effect of transfers of 

blocked property in violation of the 

Regulations and set forth the 

requirement to hold blocked funds, such 

as currency, bank deposits, or liquidated 

financial obligations, in interest-bearing 

blocked accounts. Section 590.204 of 

subpart B provides that all expenses 

incident to the maintenance of blocked 

tangible property shall be the 

responsibility of the owners and 

operators of such property, and that 

such expenses shall not be met from 

blocked funds, unless otherwise 

authorized. The section further provides 

that blocked property may, in OFAC’s 

discretion, be sold or liquidated and the 

net proceeds placed in a blocked 

interest-bearing account in the name of 

the owner of the property. 

Section 590.205 of subpart B prohibits 

any transaction by a U.S. person or 

within the United States that evades or 

avoids, has the purpose of evading or 

avoiding, causes a violation of, or 

attempts to violate any of the 

prohibitions set forth in § 590.201 of the 

Regulations, and any conspiracy formed 

to violate such prohibitions. 

Section 590.206 of subpart B details 

transactions that are exempt from the 

prohibitions of the Regulations pursuant 

to section 203(b)(1) of IEEPA (50 U.S.C. 

1702(b)(1)), which relates to personal 

communications. 

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. The definition previously 

in § 590.316, as incorporated into the 

Regulations on July 23, 2019 (84 FR 

35307, July 23, 2019), is being removed 

because the term is not used in the 

Regulations. 

Similarly, in subpart D, which 

contains interpretive sections regarding 

the Regulations, certain provisions have 

been renumbered and others added to 

those in the prior abbreviated set of 

regulations. Section 590.411 of subpart 

D explains that the property and 

interests in property of an entity are 

blocked if the entity 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, 

whether or not the entity itself is 

incorporated into OFAC’s SDN List. 

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. General licenses and statements of 

licensing policy relating to this part also 

may be available through the 

Transnational Criminal Organizations 

sanctions page on OFAC’s website: 

www.treas.gov/ofac. 

OFAC is also incorporating several 

new general licenses into the 

Regulations, renumbering existing 

general licenses, and making technical 

edits to certain existing general licenses. 

Sections 590.506, 590.508, 590.510, and 

590.11 authorize, respectively, certain 

transactions relating to the investment 

of certain funds, payments for legal 

services from funds originating outside 

the United States, official business of 

the United States Government, and 

official activities of certain international 

organizations and other international 

entities. Section 590.506 was 

renumbered as § 590.507 and § 590.507 

was renumbered as § 590.509. In 

§ 590.509, OFAC has removed the 

requirement that the receipt of payment 

for emergency medical services be 

specifically licensed. 

Subpart F of the Regulations refers to 

subpart C of part 501 for recordkeeping 

and reporting requirements. Subpart G 

of the Regulations describes 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. 

Subpart G also refers to appendix A of 

part 501 for a more complete 

description of these procedures. 

Subpart H of the Regulations refers to 

subpart E of part 501 for applicable 

provisions relating to administrative 

procedures and contains a delegation of 


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certain authorities of the Secretary of 

the Treasury. Subpart I of the 

Regulations sets forth a Paperwork 

Reduction Act notice. Additionally, 

OFAC is removing from the authority 

citation the Hizballah International 

Financing Prevention Amendments Act 

of 2018, Public Law 115–272, 132 Stat. 

4144 (50 U.S.C. 1701 note) (HIFPAA), as 

it is implemented in other parts of 31 

CFR Chapter V. 

Public Participation 

Because the Regulations involve a 

foreign affairs function, the provisions 

of E.O. 12866 of September 30, 1993, 

‘‘Regulatory Planning and Review’’ (58 

FR 51735, October 4, 1993), and the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, opportunity for public 

participation, and delay in effective date 

are inapplicable. Because no notice of 

proposed rulemaking is required for this 

rule, the Regulatory Flexibility Act (5 

U.S.C. 601–612) does not apply. 

Paperwork Reduction Act 

The collections of information related 

to the Regulations are contained in 31 

CFR part 501 (the ‘‘Reporting, 

Procedures and Penalties Regulations’’). 

Pursuant to the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3507), those 

collections of information have been 

approved by the Office of Management 

and Budget under control number 1505– 

0164. An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid control number. 

List of Subjects in 31 CFR Part 590 

Administrative practice and 

procedure, Banks, banking, Blocking of 

assets, Credit, Foreign trade, Penalties, 

Reporting and recordkeeping 

requirements, Transnational Criminal 

Organizations, Sanctions, Securities, 

Services. 

■ For the reasons set forth in the 

preamble, OFAC revises 31 CFR part 

590 to read as follows: 

PART 590—TRANSNATIONAL 

CRIMINAL ORGANIZATIONS 

SANCTIONS REGULATIONS 

Subpart A—Relation of This Part to Other 

Laws and Regulations 

Sec. 

590.101 Relation of this part to other laws 

and regulations. 

Subpart B—Prohibitions 

590.201 Prohibited transactions. 

590.202 Effect of transfers violating the 

provisions of this part. 

590.203 Holding of funds in interestbearing accounts; investment and 

reinvestment. 

590.204 Expenses of maintaining blocked 

tangible property; liquidation of blocked 

property. 

590.205 Evasions; attempts; causing 

violations; conspiracies. 

590.206 Exempt transactions. 

Subpart C—General Definitions 

590.300 Applicability of definitions. 

590.301 Blocked account; blocked property. 

590.302 Effective date. 

590.303 Entity. 

590.304 Financial, material, or 

technological support. 

590.305 Foreign person. 

590.306 [Reserved] 

590.307 Interest. 

590.308 Licenses; general and specific. 

590.309 OFAC. 

590.310 Person. 

590.311 Property; property interest. 

590.312 Significant transnational criminal 

organization. 

590.313 Transfer. 

590.314 United States. 

590.315 United States person; U.S. person. 

590.316 U.S. financial institution. 

Subpart D—Interpretations 

590.401 Reference to amended sections. 

590.402 Effect of amendment. 

590.403 Termination and acquisition of an 

interest in blocked property. 

590.404 Transactions ordinarily incident to 

a licensed transaction. 

590.405 Provision and receipt of services. 

590.406 Offshore transactions involving 

blocked property. 

590.407 Payments from blocked accounts to 

satisfy obligations prohibited. 

590.408 Charitable contributions. 

590.409 Credit extended and cards issued 

by financial institutions to a person 

whose property and interests in property 

are blocked. 

590.410 Setoffs prohibited. 

590.411 Entities owned by one or more 

persons whose property and interests in 

property are blocked. 

Subpart E—Licenses, Authorizations, and 

Statements of Licensing Policy 

590.501 General and specific licensing 

procedures. 

590.502 Effect of license or other 

authorization. 

590.503 Exclusion from licenses. 

590.504 Payments and transfers to blocked 

accounts in U.S. financial institutions. 

590.505 Entries in certain accounts for 

normal service charges. 

590.506 Investment and reinvestment of 

certain funds. 

590.507 Provision of certain legal services. 

590.508 Payments for legal services from 

funds originating outside the United 

States. 

590.509 Emergency medical services. 

590.510 Official business of the United 

States Government. 

590.511 Official business of certain 

international organizations and entities. 

Subpart F—Reports 

590.601 Records and reports. 

Subpart G—Penalties and Findings of 

Violation 

590.701 Penalties. 

590.702 Pre-Penalty Notice; settlement. 

590.703 Penalty imposition. 

590.704 Administrative collection; referral 

to United States Department of Justice. 

590.705 Findings of Violation. 

Subpart H—Procedures 

590.801 Procedures. 

590.802 Delegation of certain authorities of 

the Secretary of the Treasury. 

Subpart I—Paperwork Reduction Act 

590.901 Paperwork Reduction Act notice. 

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

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

101–410, 104 Stat. 890, as amended (28 

U.S.C. 2461 note); E.O. 13581, 76 FR 44757, 

3 CFR, 2011 Comp., p. 260; E.O. 13863, 84 

FR 10255, 3 CFR, 2019 Comp., p. 267. 

Subpart A—Relation of This Part to 

Other Laws and Regulations 

§ 590.101 Relation of this part to other 

laws and regulations. 

This part is separate from, and 

independent of, the other parts of this 

chapter, with the exception of part 501 

of this chapter, the recordkeeping and 

reporting requirements and license 

application and other procedures of 

which apply to this part. Actions taken 

pursuant to part 501 of this chapter with 

respect to the prohibitions contained in 

this part are considered actions taken 

pursuant to this part. Differing foreign 

policy and national security 

circumstances may result in differing 

interpretations of similar language 

among the parts of this chapter. No 

license or authorization contained in or 

issued pursuant to those other parts 

authorizes any transaction prohibited by 

this part. No license or authorization 

contained in or issued pursuant to any 

other provision of law or regulation 

authorizes any transaction prohibited by 

this part. No license or authorization 

contained in or issued pursuant to this 

part relieves the involved parties from 

complying with any other applicable 

laws or regulations. 

Subpart B—Prohibitions 

§ 590.201 Prohibited transactions. 

(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) The persons listed in the Annex to 

E.O. 13581 of July 24, 2011; 


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(2) Any person determined by the 

Secretary of the Treasury, in 

consultation with the Attorney General 

and the Secretary of State: 

(i) To be a foreign person that 

constitutes a significant transnational 

criminal organization; 

(ii) 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 

paragraph (a) of this section; or 

(iii) 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) of this section. 

(b) The prohibitions in paragraph (a) 

of this section include prohibitions on 

the following transactions: 

(1) The making of any contribution or 

provision of funds, goods, or services 

by, to, or for the benefit of any person 

whose property and interests in 

property are blocked pursuant to 

paragraph (a) of this section; and 

(2) The receipt of any contribution or 

provision of funds, goods, or services 

from any person whose property and 

interests in property are blocked 

pursuant to paragraph (a) of this section. 

(c) Unless authorized by this part or 

by a specific license expressly referring 

to this part, any dealing in securities (or 

evidence thereof) held within the 

possession or control of a U.S. person 

and either registered or inscribed in the 

name of, or known to be held for the 

benefit of, or issued by, any person 

whose property and interests in 

property are blocked pursuant to 

paragraph (a) of this section is 

prohibited. This prohibition includes 

the transfer (including the transfer on 

the books of any issuer or agent thereof), 

disposition, transportation, importation, 

exportation, or withdrawal of, or the 

endorsement or guaranty of signatures 

on, any securities on or after the 

effective date. 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 securities 

may have or might appear to have 

assigned, transferred, or otherwise 

disposed of the securities. 

(d) The prohibitions in paragraph (a) 

of this section apply except to the extent 

provided by statutes, or in regulations, 

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 March 15, 2019 pursuant to the 

national emergency declared in E.O. 

13581 of July 24, 2011, are prohibited 

pursuant to this part. 

Note 1 to § 590.201. The names of persons 

listed in, or designated or identified pursuant 

to, E.O. 13581; E.O. 13581, as amended by 

E.O. 13863 of March 15, 2019 (‘‘amended 

E.O. 13581’’); or any further Executive orders 

issued pursuant to the national emergency 

declared in E.O. 13581, 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. 13581 or 

amended E.O. 13581: ‘‘[TCO]’’; and for any 

further Executive orders issued pursuant to 

the national emergency declared in E.O. 

13581: Using the identifier formulation 

‘‘[TCO–E.O.[E.O. number pursuant to which 

the person’s property and interests in 

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

accessible through the following page on 

OFAC’s website: www.treas.gov/sdn. 

Additional information pertaining to the SDN 

List can be found in appendix A to this 

chapter. See § 590.411 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 § 590.201. The International 

Emergency Economic Powers Act (50 U.S.C. 

1701–1706), in Section 203 (50 U.S.C. 1702), 

authorizes the blocking of property and 

interests in property of a person during the 

pendency of an investigation. The names of 

persons whose property and interests in 

property are blocked pending investigation 

pursuant to this section also are published in 

the Federal Register and incorporated into 

the SDN List using the following identifiers: 

For E.O. 13581 or amended E.O. 13581: 

‘‘[BPI–TCO]’’; and for any further Executive 

orders issued pursuant to the national 

emergency declared in E.O. 13581: Using the 

identifier formulation ‘‘[BPI–TCO–[E.O. 

number pursuant to which the person’s 

property and interests in property are 

blocked pending investigation]].’’ 

Note 3 to § 590.201. 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. 

§ 590.202 Effect of transfers violating the 

provisions of this part. 

(a) Any transfer after the effective date 

that is in violation of any provision of 

this part or of any regulation, order, 

directive, ruling, instruction, or license 

issued pursuant to this part, and that 

involves any property or interest in 

property blocked pursuant to § 590.201, 

is null and void and shall not be the 

basis for the assertion or recognition of 

any interest in or right, remedy, power, 

or privilege with respect to such 

property or interest in property. 

(b) No transfer before the effective 

date shall be the basis for the assertion 

or recognition of any right, remedy, 

power, or privilege with respect to, or 

any interest in, any property or interest 

in property blocked pursuant to 

§ 590.201, unless the person who holds 

or maintains such property, prior to that 

date, had written notice of the transfer 

or by any written evidence had 

recognized such transfer. 

(c) Unless otherwise provided, a 

license or other authorization issued by 

OFAC before, during, or after a transfer 

shall validate such transfer or make it 

enforceable to the same extent that it 

would be valid or enforceable but for 

the provisions of this part and any 

regulation, order, directive, ruling, 

instruction, or license issued pursuant 

to this part. 

(d) Transfers of property that 

otherwise would be null and void or 

unenforceable by virtue of the 

provisions of this section shall not be 

deemed to be null and void or 

unenforceable as to any person with 

whom such property is or was held or 

maintained (and as to such person only) 

in cases in which such person is able to 

establish to the satisfaction of OFAC 

each of the following: 

(1) Such transfer did not represent a 

willful violation of the provisions of this 

part by the person with whom such 

property is or was held or maintained 

(and as to such person only); 

(2) The person with whom such 

property is or was held or maintained 

did not have reasonable cause to know 

or suspect, in view of all the facts and 

circumstances known or available to 

such person, that such transfer required 

a license or authorization issued 

pursuant to this part and was not so 

licensed or authorized, or, if a license or 

authorization did purport to cover the 

transfer, that such license or 

authorization had been obtained by 

misrepresentation of a third party or 

withholding of material facts or was 

otherwise fraudulently obtained; and 

(3) The person with whom such 

property is or was held or maintained 

filed with OFAC a report setting forth in 

full the circumstances relating to such 

transfer promptly upon discovery that: 

(i) Such transfer was in violation of 

the provisions of this part or any 

regulation, ruling, instruction, license, 

or other directive or authorization 

issued pursuant to this part; 

(ii) Such transfer was not licensed or 

authorized by OFAC; or 


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(iii) If a license did purport to cover 

the transfer, such license had been 

obtained by misrepresentation of a third 

party or withholding of material facts or 

was otherwise fraudulently obtained. 

(e) The filing of a report in accordance 

with the provisions of paragraph (d)(3) 

of this section shall not be deemed 

evidence that the terms of paragraphs 

(d)(1) and (2) of this section have been 

satisfied. 

(f) Unless licensed pursuant to this 

part, any attachment, judgment, decree, 

lien, execution, garnishment, or other 

judicial process is null and void with 

respect to any property or interest in 

property blocked pursuant to § 590.201. 

§ 590.203 Holding of funds in interestbearing accounts; investment and 

reinvestment. 

(a) Except as provided in paragraph 

(e) or (f) of this section, or as otherwise 

directed or authorized by OFAC, any 

U.S. person holding funds, such as 

currency, bank deposits, or liquidated 

financial obligations, subject to 

§ 590.201 shall hold or place such funds 

in a blocked interest-bearing account 

located in the United States. 

(b)(1) For the purposes of this section, 

the term blocked interest-bearing 

account means a blocked account: 

(i) In a federally insured U.S. bank, 

thrift institution, or credit union, 

provided the funds are earning interest 

at rates that are commercially 

reasonable; or 

(ii) With a broker or dealer registered 

with the Securities and Exchange 

Commission under the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.), provided the funds are invested in 

a money market fund or in U.S. 

Treasury bills. 

(2) Funds held or placed in a blocked 

account pursuant to paragraph (a) of this 

section may not be invested in 

instruments the maturity of which 

exceeds 180 days. 

(c) For the purposes of this section, a 

rate is commercially reasonable if it is 

the rate currently offered to other 

depositors on deposits or instruments of 

comparable size and maturity. 

(d) For the purposes of this section, if 

interest is credited to a separate blocked 

account or subaccount, the name of the 

account party on each account must be 

the same. 

(e) Blocked funds held in instruments 

the maturity of which exceeds 180 days 

at the time the funds become subject to 

§ 590.201 may continue to be held until 

maturity in the original instrument, 

provided any interest, earnings, or other 

proceeds derived therefrom are paid 

into a blocked interest-bearing account 

in accordance with paragraph (a) or (f) 

of this section. 

(f) Blocked funds held in accounts or 

instruments outside the United States at 

the time the funds become subject to 

§ 590.201 may continue to be held in the 

same type of accounts or instruments, 

provided the funds earn interest at rates 

that are commercially reasonable. 

(g) This section does not create an 

affirmative obligation for the holder of 

blocked tangible property, such as real 

or personal property, or of other blocked 

property, such as debt or equity 

securities, to sell or liquidate such 

property. However, OFAC may issue 

licenses permitting or directing such 

sales or liquidation in appropriate cases. 

(h) Funds blocked pursuant to 

§ 590.201 may not be held, invested, or 

reinvested in a manner that provides 

financial or economic benefit or access 

to any person whose property and 

interests in property are blocked 

pursuant to § 590.201, nor may their 

holder cooperate in or facilitate the 

pledging or other attempted use as 

collateral of blocked funds or other 

assets. 

§ 590.204 Expenses of maintaining 

blocked tangible property; liquidation of 

blocked property. 

(a) Except as otherwise authorized, 

and notwithstanding the existence of 

any rights or obligations conferred or 

imposed by any international agreement 

or contract entered into or any license 

or permit granted prior to the effective 

date, all expenses incident to the 

maintenance of tangible property 

blocked pursuant to § 590.201 shall be 

the responsibility of the owners or 

operators of such property, which 

expenses shall not be met from blocked 

funds. 

(b) Property blocked pursuant to 

§ 590.201 may, in the discretion of 

OFAC, be sold or liquidated and the net 

proceeds placed in a blocked interestbearing account in the name of the 

owner of the property. 

§ 590.205 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. 

§ 590.206 Exempt transactions. 

The prohibitions contained in this 

part do not apply to any postal, 

telegraphic, telephonic, or other 

personal communication that does not 

involve the transfer of anything of value. 

Subpart C—General Definitions 

§ 590.300 Applicability of definitions. 

The definitions in this subpart apply 

throughout the entire part. 

§ 590.301 Blocked account; blocked 

property. 

The terms blocked account and 

blocked property mean any account or 

property subject to the prohibitions in 

§ 590.201 held in the name of a person 

whose property and interests in 

property are blocked pursuant to 

§ 590.201, 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 § 590.301. See § 590.411 

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 § 590.201. 

§ 590.302 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 § 590.201(a)(1), 

12:01 a.m. eastern daylight time July 25, 

2011; and 

(2) With respect to a person whose 

property and interests in property are 

otherwise blocked pursuant to 

§ 590.201, 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. 

§ 590.303 Entity. 

The term entity means a partnership, 

association, trust, joint venture, 

corporation, group, subgroup, or other 

organization. 

§ 590.304 Financial, material, or 

technological support. 

The term financial, material, or 

technological support, as used in this 

part, means any property, tangible or 

intangible, including currency, financial 


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instruments, securities, or any other 

transmission of value; weapons or 

related materiel; chemical or biological 

agents; explosives; false documentation 

or identification; communications 

equipment; computers; electronic or 

other devices or equipment; 

technologies; lodging; safe houses; 

facilities; vehicles or other means of 

transportation; or goods. 

‘‘Technologies’’ as used in this section 

means specific information necessary 

for the development, production, or use 

of a product, including related technical 

data such as blueprints, plans, diagrams, 

models, formulae, tables, engineering 

designs and specifications, manuals, or 

other recorded instructions. 

§ 590.305 Foreign person. 

The term foreign person means any 

citizen or national of a foreign state, or 

any entity organized under the laws of 

a foreign state or existing in a foreign 

state, including any such individual or 

entity who is also a United States 

person. 

§ 590.306 [Reserved] 

§ 590.307 Interest. 

Except as otherwise provided in this 

part, the term interest, when used with 

respect to property (e.g., ‘‘an interest in 

property’’), means an interest of any 

nature whatsoever, direct or indirect. 

§ 590.308 Licenses; general and specific. 

(a) Except as otherwise provided in 

this part, the term license means any 

license or authorization contained in or 

issued pursuant to this part. 

(b) The term general license means 

any license or authorization the terms of 

which are set forth in subpart E of this 

part or made available on OFAC’s 

website: www.treas.gov/ofac. 

(c) The term specific license means 

any license or authorization issued 

pursuant to this part but not set forth in 

subpart E of this part or made available 

on OFAC’s website: www.treas.gov/ofac. 

Note 1 to § 590.306. See § 501.801 of this 

chapter on licensing procedures. 

§ 590.309 OFAC. 

The term OFAC means the 

Department of the Treasury’s Office of 

Foreign Assets Control. 

§ 590.310 Person. 

The term person means an individual 

or entity. 

§ 590.311 Property; property interest. 

The terms property and property 

interest include money, checks, drafts, 

bullion, bank deposits, savings 

accounts, debts, indebtedness, 

obligations, notes, guarantees, 

debentures, stocks, bonds, coupons, any 

other financial instruments, bankers 

acceptances, mortgages, pledges, liens 

or other rights in the nature of security, 

warehouse receipts, bills of lading, trust 

receipts, bills of sale, any other 

evidences of title, ownership, or 

indebtedness, letters of credit and any 

documents relating to any rights or 

obligations thereunder, powers of 

attorney, goods, wares, merchandise, 

chattels, stocks on hand, ships, goods on 

ships, real estate mortgages, deeds of 

trust, vendors’ sales agreements, land 

contracts, leaseholds, ground rents, real 

estate and any other interest therein, 

options, negotiable instruments, trade 

acceptances, royalties, book accounts, 

accounts payable, judgments, patents, 

trademarks or copyrights, insurance 

policies, safe deposit boxes and their 

contents, annuities, pooling agreements, 

services of any nature whatsoever, 

contracts of any nature whatsoever, and 

any other property, real, personal, or 

mixed, tangible or intangible, or interest 

or interests therein, present, future, or 

contingent. 

§ 590.312 Significant transnational 

criminal organization. 

The term significant transnational 

criminal organization means a group of 

persons that includes one or more 

foreign persons; that engages in or 

facilitates an ongoing pattern of serious 

criminal activity involving the 

jurisdictions of at least two foreign 

states, or one foreign state and the 

United States; and that threatens the 

national security, foreign policy, or 

economy of the United States. 

§ 590.313 Transfer. 

The term transfer means any actual or 

purported act or transaction, whether or 

not evidenced by writing, and whether 

or not done or performed within the 

United States, the purpose, intent, or 

effect of which is to create, surrender, 

release, convey, transfer, or alter, 

directly or indirectly, any right, remedy, 

power, privilege, or interest with respect 

to any property. Without limitation on 

the foregoing, it shall include the 

making, execution, or delivery of any 

assignment, power, conveyance, check, 

declaration, deed, deed of trust, power 

of attorney, power of appointment, bill 

of sale, mortgage, receipt, agreement, 

contract, certificate, gift, sale, affidavit, 

or statement; the making of any 

payment; the setting off of any 

obligation or credit; the appointment of 

any agent, trustee, or fiduciary; the 

creation or transfer of any lien; the 

issuance, docketing, filing, or levy of or 

under any judgment, decree, 

attachment, injunction, execution, or 

other judicial or administrative process 

or order, or the service of any 

garnishment; the acquisition of any 

interest of any nature whatsoever by 

reason of a judgment or decree of any 

foreign country; the fulfillment of any 

condition; the exercise of any power of 

appointment, power of attorney, or 

other power; or the acquisition, 

disposition, transportation, importation, 

exportation, or withdrawal of any 

security. 

§ 590.314 United States. 

The term United States means the 

United States, its territories and 

possessions, and all areas under the 

jurisdiction or authority thereof. 

§ 590.315 United States person; U.S. 

person. 

The term United States person or U.S. 

person means any United States citizen, 

permanent resident alien, entity 

organized under the laws of the United 

States or any jurisdiction within the 

United States (including foreign 

branches), or any person in the United 

States. 

§ 590.316 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 other extensions of 

credit, or purchasing or selling foreign 

exchange, securities, commodity futures 

or options, or procuring purchasers and 

sellers thereof, as principal or agent. It 

includes depository institutions, banks, 

savings banks, trust 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, 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 

§ 590.401 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 ruling, order, 

instruction, direction, or license issued 

pursuant to this part is a reference to the 


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same as currently amended unless 

otherwise so specified. 

§ 590.402 Effect of amendment. 

Unless otherwise specifically 

provided, any amendment, 

modification, or revocation of any 

provision in or appendix to this part or 

chapter or of any order, regulation, 

ruling, instruction, or license issued by 

OFAC does not affect any act done or 

omitted, or any civil or criminal 

proceeding commenced or pending, 

prior to such amendment, modification, 

or revocation. All penalties, forfeitures, 

and liabilities under any such order, 

regulation, ruling, instruction, or license 

continue and may be enforced as if such 

amendment, modification, or revocation 

had not been made. 

§ 590.403 Termination and acquisition of 

an interest in blocked property. 

(a) Whenever a transaction licensed or 

authorized by or pursuant to this part 

results in the transfer of property 

(including any property interest) away 

from a person whose property and 

interests in property are blocked 

pursuant to § 590.201, such property 

shall no longer be deemed to be 

property blocked pursuant to § 590.201, 

unless there exists in the property 

another interest that is blocked pursuant 

to § 590.201, the transfer of which has 

not been effected pursuant to license or 

other authorization. 

(b) Unless otherwise specifically 

provided in a license or authorization 

issued pursuant to this part, if property 

(including any property interest) is 

transferred or attempted to be 

transferred to a person whose property 

and interests in property are blocked 

pursuant to § 590.201, such property 

shall be deemed to be property in which 

such person has an interest and 

therefore blocked. 

§ 590.404 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 

§ 590.201; 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 § 590.201, 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 

§ 590.201. 

§ 590.405 Provision and receipt of 

services. 

(a) The prohibitions contained in 

§ 590.201 apply to services performed in 

the United States or by U.S. persons, 

wherever located: 

(1) On behalf of or for the benefit of 

any person whose property and interests 

in property are blocked pursuant to 

§ 590.201; or 

(2) With respect to property interests 

of any person whose property and 

interests in property are blocked 

pursuant to § 590.201. 

(b) The prohibitions on transactions 

contained in § 590.201 apply to services 

received in the United States or by U.S. 

persons, wherever located, where the 

service is performed by or at the 

direction of, any person whose property 

and interests in property are blocked 

pursuant to § 590.201. 

(c) For example, U.S. persons may 

not, except as authorized by or pursuant 

to this part, provide legal, accounting, 

financial, brokering, freight forwarding, 

transportation, public relations, or other 

services to a person whose property and 

interests in property are blocked 

pursuant to § 590.201, or negotiate with 

or enter into contracts signed by a 

person whose property and interests in 

property are blocked pursuant to 

§ 590.201. 

Note 1 to § 590.405. See §§ 590.507 and 

590.509 for general licenses authorizing the 

provision of certain legal and emergency 

medical services. 

§ 590.406 Offshore transactions involving 

blocked property. 

The prohibitions in § 590.201 on 

transactions or dealings involving 

blocked property, as defined in 

§ 590.301, apply to transactions by any 

U.S. person in a location outside the 

United States. 

§ 590.407 Payments from blocked 

accounts to satisfy obligations prohibited. 

Pursuant to § 590.201, no debits may 

be made to a blocked account to pay 

obligations to U.S. persons or other 

persons, except as authorized by or 

pursuant to this part. 

Note 1 to § 590.407. See also § 590.502(e), 

which provides that 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. 

§ 590.408 Charitable contributions. 

Unless specifically authorized by 

OFAC pursuant to this part, no 

charitable contribution of funds, goods, 

services, or technology, including 

contributions to relieve human 

suffering, such as food, clothing, or 

medicine, may be made by, to, or for the 

benefit of, or received from, a person 

whose property and interests in 

property are blocked pursuant to 

§ 590.201. For the purposes of this part, 

a contribution is made by, to, or for the 

benefit of, or received from, a person 

whose property and interests in 

property are blocked pursuant to 

§ 590.201 if made by, to, or in the name 

of, or received from or in the name of, 

such a person; if made by, to, or in the 

name of, or received from or in the 

name of, an entity or individual acting 

for or on behalf of, or owned or 

controlled by, such a person; or if made 

in an attempt to violate, to evade, or to 

avoid the bar on the provision of 

contributions by, to, or for the benefit of 

such a person, or the receipt of 

contributions from such a person. 

§ 590.409 Credit extended and cards 

issued by financial institutions to a person 

whose property and interests in property 

are blocked. 

The prohibition in § 590.201 on 

dealing in property subject to that 

section prohibits U.S. financial 

institutions from performing under any 

existing credit agreements, including 

charge cards, debit cards, or other credit 

facilities issued by a financial 

institution to a person whose property 

and interests in property are blocked 

pursuant to § 590.201. 

§ 590.410 Setoffs prohibited. 

A setoff against blocked property 

(including a blocked account), whether 

by a U.S. financial institution or other 

U.S. person, is a prohibited transfer 

under § 590.201 if effected after the 

effective date. 

§ 590.411 Entities owned by one or more 

persons whose property and interests in 

property are blocked. 

Persons whose property and interests 

in property are blocked pursuant to 

§ 590.201 have an interest in all 

property and interests in property of an 

entity in which such persons directly or 

indirectly own, whether individually or 

in the aggregate, a 50 percent or greater 


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interest. The property and interests in 

property of such an entity, therefore, are 

blocked, and such an entity is a person 

whose property and interests in 

property are blocked pursuant to 

§ 590.201, regardless of whether the 

name of the entity is incorporated into 

OFAC’s Specially Designated Nationals 

and Blocked Persons List (SDN List). 

Subpart E—Licenses, Authorizations, 

and Statements of Licensing Policy 

§ 590.501 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 Transnational 

Criminal Organizations sanctions page 

on OFAC’s website: www.treas.gov/ofac. 

§ 590.502 Effect of license or other 

authorization. 

(a) No license or other authorization 

contained in this part, or otherwise 

issued by OFAC, authorizes or validates 

any transaction effected prior to the 

issuance of such license or other 

authorization, unless specifically 

provided in such license or 

authorization. 

(b) No regulation, ruling, instruction, 

or license authorizes any transaction 

prohibited under this part unless the 

regulation, ruling, instruction, or license 

is issued by OFAC and specifically 

refers to this part. No regulation, ruling, 

instruction, or license referring to this 

part shall be deemed to authorize any 

transaction prohibited by any other part 

of this chapter unless the regulation, 

ruling, instruction, or license 

specifically refers to such part. 

(c) Any regulation, ruling, instruction, 

or license authorizing any transaction 

prohibited under this part has the effect 

of removing a prohibition contained in 

this part from the transaction, but only 

to the extent specifically stated by its 

terms. Unless the regulation, ruling, 

instruction, or license otherwise 

specifies, such an authorization does 

not create any right, duty, obligation, 

claim, or interest in, or with respect to, 

any property that would not otherwise 

exist under ordinary principles of law. 

(d) Nothing contained in this part 

shall be construed to supersede the 

requirements established under any 

other provision of law or to relieve a 

person from any requirement to obtain 

a license or other authorization from 

another department or agency of the 

U.S. Government in compliance with 

applicable laws and regulations subject 

to the jurisdiction of that department or 

agency. For example, exports of goods, 

services, or technical data that are not 

prohibited by this part or that do not 

require a license by OFAC nevertheless 

may require authorization by the U.S. 

Department of Commerce, the U.S. 

Department of State, or other agencies of 

the U.S. Government. 

(e) No license or other authorization 

contained in or issued pursuant to this 

part authorizes transfers of or payments 

from blocked property or debits to 

blocked accounts unless the license or 

other authorization explicitly authorizes 

the transfer of or payment from blocked 

property or the debit to a blocked 

account. 

(f) Any payment relating to a 

transaction authorized in or pursuant to 

this part that is routed through the U.S. 

financial system should reference the 

relevant OFAC general or specific 

license authorizing the payment to 

avoid the blocking or rejection of the 

transfer. 

§ 590.503 Exclusion from licenses. 

OFAC reserves the right to exclude 

any person, property, transaction, or 

class thereof from the operation of any 

license or from the privileges conferred 

by any license. OFAC also reserves the 

right to restrict the applicability of any 

license to particular persons, property, 

transactions, or classes thereof. Such 

actions are binding upon actual or 

constructive notice of the exclusions or 

restrictions. 

§ 590.504 Payments and transfers to 

blocked accounts in U.S. financial 

institutions. 

Any payment of funds or transfer of 

credit in which a person whose property 

and interests in property are blocked 

pursuant to § 590.201 has any interest 

that comes within the possession or 

control of a U.S. financial institution 

must be blocked in an account on the 

books of that financial institution. A 

transfer of funds or credit by a U.S. 

financial institution between blocked 

accounts in its branches or offices is 

authorized, provided that no transfer is 

made from an account within the 

United States to an account held outside 

the United States, and further provided 

that a transfer from a blocked account 

may be made only to another blocked 

account held in the same name. 

Note 1 to § 590.504. See § 501.603 of this 

chapter for mandatory reporting 

requirements regarding financial transfers. 

See also § 590.203 concerning the obligation 

to hold blocked funds in interest-bearing 

accounts. 

§ 590.505 Entries in certain accounts for 

normal service charges. 

(a) A U.S. financial institution is 

authorized to debit any blocked account 

held at that financial institution in 

payment or reimbursement for normal 

service charges owed it by the owner of 

that blocked account. 

(b) As used in this section, the term 

normal service charges shall include 

charges in payment or reimbursement 

for interest due; cable, telegraph, 

internet, or telephone charges; postage 

costs; custody fees; small adjustment 

charges to correct bookkeeping errors; 

and, but not by way of limitation, 

minimum balance charges, notary and 

protest fees, and charges for reference 

books, photocopies, credit reports, 

transcripts of statements, registered 

mail, insurance, stationery and supplies, 

and other similar items. 

§ 590.506 Investment and reinvestment of 

certain funds. 

Subject to the requirements of 

§ 590.203, U.S. financial institutions are 

authorized to invest and reinvest assets 

blocked pursuant to § 590.201, subject 

to the following conditions: 

(a) The assets representing such 

investments and reinvestments are 

credited to a blocked account or 

subaccount that is held in the same 

name at the same U.S. financial 

institution, or within the possession or 

control of a U.S. person, but funds shall 

not be transferred outside the United 

States for this purpose; 

(b) The proceeds of such investments 

and reinvestments shall not be credited 

to a blocked account or subaccount 

under any name or designation that 

differs from the name or designation of 

the specific blocked account or 

subaccount in which such funds or 

securities were held; and 

(c) No immediate financial or 

economic benefit accrues (e.g., through 

pledging or other use) to a person whose 

property and interests in property are 

blocked pursuant to § 590.201. 

§ 590.507 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 

§ 590.201 is authorized, provided that 

any receipt of payment of professional 

fees and reimbursement of incurred 

expenses must be authorized pursuant 

to § 590.508, 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 


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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 

§ 590.201, 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 § 590.404. 

(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 § 590.201 

is prohibited unless licensed pursuant 

to this part. 

Note 1 to § 590.507. 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. 

§ 590.508 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 

§ 590.507(a) to or on behalf of any 

person whose property and interests in 

property are blocked pursuant to 

§ 590.201, 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 

§ 590.507(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 paragraph (a) of this 

section authorizes payments for legal 

services using funds in which any other 

person whose property and interests in 

property are blocked pursuant to 

§ 590.201, any other part of this chapter, 

or any Executive order or statute has an 

interest. 

(b) Reports. (1) U.S. persons who 

receive payments pursuant to paragraph 

(a) of this section must submit annual 

reports no later than 30 days following 

the end of the calendar year during 

which the payments were received 

providing information on the funds 

received. Such reports shall specify: 

(i) The individual or entity from 

whom the funds originated and the 

amount of funds received; and 

(ii) If applicable: 

(A) The names of any individuals or 

entities providing related services to the 

U.S. person receiving payment in 

connection with authorized legal 

services, such as private investigators or 

expert witnesses; 

(B) A general description of the 

services provided; and 

(C) The amount of funds paid in 

connection with such services. 

(2) The reports, which must reference 

this section, are to be submitted to 

OFAC using one of the following 

methods: 

(i) Email (preferred method): 

OFACReport@treasury.gov; or 

(ii) U.S. mail: OFAC Regulations 

Reports, Office of Foreign Assets 

Control, U.S. Department of the 

Treasury, 1500 Pennsylvania Avenue 

NW, Freedman’s Bank Building, 

Washington, DC 20220. 

§ 590.509 Emergency medical services. 

The provision and receipt of 

nonscheduled emergency medical 

services that are prohibited by this part 

are authorized. 

§ 590.510 Official business of the United 

States Government. 

All transactions prohibited by this 

part that are for the conduct of the 

official business of the United States 

Government by employees, grantees, or 

contractors thereof are authorized. 

§ 590.511 Official business of certain 

international organizations and entities. 

All transactions prohibited by this 

part that are for the conduct of the 

official business of the following entities 

by employees, grantees, or contractors 

thereof are authorized: 

(a) The United Nations, including its 

Programmes, Funds, and Other Entities 

and Bodies, as well as its Specialized 

Agencies and Related Organizations; 

(b) The International Centre for 

Settlement of Investment Disputes 

(ICSID) and the Multilateral Investment 

Guarantee Agency (MIGA); 

(c) The African Development Bank 

Group, the Asian Development Bank, 

the European Bank for Reconstruction 

and Development, and the InterAmerican Development Bank Group 

(IDB Group), including any fund entity 

administered or established by any of 

the foregoing; and 

(d) The International Committee of 

the Red Cross and the International 

Federation of Red Cross and Red 

Crescent Societies. 

Subpart F—Reports 

§ 590.601 Records and reports. 

For provisions relating to required 

records and reports, see part 501, 

subpart C, of this chapter. 

Recordkeeping and reporting 

requirements imposed by part 501 of 

this chapter with respect to the 

prohibitions contained in this part are 

considered requirements arising 

pursuant to this part. 

Subpart G—Penalties and Findings of 

Violation 

§ 590.701 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 

license, ruling, regulation, order, 

directive, or instruction issued by or 

pursuant to the direction or 

authorization of the Secretary of the 


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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 

license, order, regulation, or prohibition 

issued under IEEPA. 

(2) IEEPA provides for a maximum 

civil penalty not to exceed the greater of 

$311,562 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 

license, order, regulation, 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) Violations of this part may also be 

subject to other applicable laws. 

§ 590.702 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 

license, ruling, regulation, order, 

directive, or instruction 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 Office 

of Compliance and Enforcement by mail 

or courier or email and must be 

postmarked or date-stamped in 

accordance with paragraph (b)(2) of this 

section. 

(c) Settlement. Settlement discussion 

may be initiated by OFAC, the alleged 

violator, or the alleged violator’s 

authorized representative. For a 

description of practices with respect to 

settlement, see appendix A to part 501 

of this chapter. 

(d) Guidelines. Guidelines for the 

imposition or settlement of civil 

penalties by OFAC are contained in 

appendix A to part 501 of this chapter. 

(e) Representation. A representative of 

the alleged violator may act on behalf of 

the alleged violator, but any oral 

communication with OFAC prior to a 

written submission regarding the 

specific allegations contained in the 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. 

§ 590.703 Penalty imposition. 

If, after considering any written 

response to the Pre-Penalty Notice and 

any relevant facts, OFAC determines 

that there was a violation by the alleged 

violator named in the Pre-Penalty 

Notice and that a civil monetary penalty 

is appropriate, OFAC may issue a 

Penalty Notice to the violator containing 

a determination of the violation and the 

imposition of the monetary penalty. For 

additional details concerning issuance 

of a Penalty Notice, see appendix A to 

part 501 of this chapter. The issuance of 

the Penalty Notice shall constitute final 

agency action. The violator has the right 

to seek judicial review of that final 

agency action in federal district court. 

§ 590.704 Administrative collection; 

referral to United States Department of 

Justice. 

In the event that the violator does not 

pay the penalty imposed pursuant to 

this part or make payment arrangements 

acceptable to OFAC, the matter may be 

referred for administrative collection 

measures by the Department of the 

Treasury or to the United States 

Department of Justice for appropriate 

action to recover the penalty in a civil 

suit in a federal district court. 

§ 590.705 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 

license, ruling, regulation, order, 

directive, or instruction 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 


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(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 Office 

of Compliance and Enforcement 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 

§ 590.801 Procedures. 

For license application procedures 

and procedures relating to amendments, 

modifications, or revocations of 

licenses; administrative decisions; 

rulemaking; and requests for documents 

pursuant to the Freedom of Information 

and Privacy Acts (5 U.S.C. 552 and 

552a), see part 501, subpart E, of this 

chapter. 

§ 590.802 Delegation of certain authorities 

of the Secretary of the Treasury. 

Any action that the Secretary of the 

Treasury is authorized to take pursuant 

to E.O. 13581 of July 24, 2011, as 

amended by E.O. 13863 of March 15, 

2019, and any further Executive orders 

relating to the national emergency 

declared in E.O. 13581, may be taken by 

the Director of OFAC or by any other 

person to whom the Secretary of the 

Treasury has delegated authority so to 

act. 

Subpart I—Paperwork Reduction Act 

§ 590.901 Paperwork Reduction Act notice. 

For approval by the Office of 

Management and Budget (OMB) under 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3507) of information 

collections relating to recordkeeping 

and reporting requirements, licensing 

procedures, and other procedures, see 

§ 501.901 of this chapter. An agency 

may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a valid control number 

assigned by OMB. 

Andrea M. Gacki, 

Director, Office of Foreign Assets Control. 

[FR Doc. 2022–01072 Filed 1–20–22; 8:45 am] 

BILLING CODE 4810–AL–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Parts 1, 6, 62, 151, 160, and 173 

46 CFR Parts 4, 5, 7, 11, 13, 15, 31, 67, 

71, 91, 107, 126, 144, 147, 172, and 189 

[Docket No. USCG–2021–0348] 

Navigation and Navigable Waters, and 

Shipping; Technical, Organizational, 

and Conforming Amendments 

AGENCY: Coast Guard, Department of 

Homeland Security (DHS). 

ACTION: Final rule. 

SUMMARY: This final rule makes nonsubstantive technical, organizational, 

and conforming amendments to existing 

Coast Guard regulations. This rule is a 

continuation of our practice of 

periodically issuing rules to keep our 

regulations up-to-date and accurate. 


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