[Federal Register Volume 87, Number 126 (Friday, July 1, 2022)]
[Rules and Regulations]
[Pages 39337-39339]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13969]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 594


Global Terrorism Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is adopting a final rule amending the Global Terrorism 
Sanctions Regulations to implement a September 9, 2019 counter-
terrorism Executive order.

DATES: This rule is effective July 1, 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 June 6, 2003, OFAC issued the Global Terrorism Sanctions 
Regulations, 31 CFR part 594 (68 FR 34196, June 6, 2003) (``the 
Regulations''), to implement Executive Order (E.O.) 13224 of September 
23, 2001, ``Blocking Property and Prohibiting Transactions With Persons 
Who Commit, Threaten To Commit, or Support Terrorism'' (66 FR 49079, 
September 25, 2001). OFAC has amended the Regulations on several 
occasions.
    On September 9, 2019, the President, invoking the authority of, 
inter alia, the International Emergency Economic Powers Act (50 U.S.C. 
1701-1706) (IEEPA) and the United Nations Participation Act (22 U.S.C. 
287c) (UNPA), issued E.O. 13886, ``Modernizing Sanctions To Combat 
Terrorism'' (84 FR 48041, September 12, 2019), effective September 10, 
2019. In E.O. 13886, the President, finding it necessary to consolidate 
and enhance sanctions to combat acts of terrorism and threats of 
terrorism by foreign terrorists, terminated the national emergency 
declared in E.O. 12947 of January 23, 1995, ``Prohibiting Transactions 
With Terrorists Who Threaten To Disrupt the Middle East Peace Process'' 
(60 FR 5079, January 25, 1995), and revoked E.O. 12947, as amended by 
E.O. 13099 of August 20, 1998, ``Prohibiting Transactions With 
Terrorists Who Threaten To Disrupt the Middle East Peace Process'' (63 
FR 45167, August 25, 1998). In addition, the President amended E.O. 
13224, in order to build upon initial steps taken in E.O. 12947, to 
further strengthen and consolidate sanctions to combat the continuing 
threat posed by international terrorism, and in order to take 
additional steps to deal with the national emergency declared in E.O. 
13224, with respect to the continuing and immediate threat of grave 
acts of terrorism and threats of terrorism committed by foreign 
terrorists, which include acts of terrorism that threaten the Middle 
East peace process.
    Section 1 of E.O. 13886 replaces in its entirety section 1 of E.O. 
13224, which had been amended by a number of prior Executive orders 
(E.O. 13224, as amended by all such authorities, is referred to herein 
as ``amended E.O. 13224''), but does not amend the Annex to E.O. 13224, 
which was previously amended by E.O. 13268 of July 2, 2002, 
``Termination of Emergency With Respect to the Taliban and Amendment of 
Executive Order 13224 of September 23, 2001'' (67 FR 44751, July 3, 
2002) (``amended Annex to E.O. 13224''). New section 1(a) of amended 
E.O. 13224 blocks all property and interests in property that are in 
the United States, that hereafter come within the United States, or 
that are or hereafter come within the possession or control of any 
United States person of: (i) the persons listed in the amended Annex to 
E.O. 13224; (ii) foreign persons determined by the Secretary of State, 
in consultation with the Secretary of the Treasury, the Attorney 
General, and the Secretary of Homeland Security: (A) to have committed 
or have attempted to commit, to pose a significant risk of committing, 
or to have participated in training to commit acts of terrorism that 
threaten the security of United States nationals or the national 
security, foreign policy, or economy of the United States; or (B) to be 
leader of an entity: (1) listed in the amended Annex to E.O. 13224; or 
(2) whose property and interests in property are blocked pursuant to a 
determination by the Secretary of State pursuant to amended E.O. 13224; 
(iii) persons determined by the Secretary of the Treasury, in 
consultation with the Secretary of State, the Secretary of Homeland 
Security, and the Attorney General: (A) to be owned, controlled, or 
directed by, or to have acted or purported to act for or on behalf

[[Page 39338]]

of, directly or indirectly, or any person whose property and interests 
in property are blocked pursuant to amended E.O. 13224; (B) to own or 
control, directly or indirectly, any person whose property and 
interests in property are blocked pursuant to amended E.O. 13224; (C) 
to have materially assisted, sponsored, or provided financial, 
material, or technological support for, or goods or services to or in 
support of, an act of terrorism as defined in section 3(d) of amended 
E.O. 13224, or any person whose property and interests in property are 
blocked pursuant to amended E.O. 13224; (D) to have participated in 
training related to terrorism provided by any person whose property and 
interests in property are blocked pursuant to amended E.O. 13224; (E) 
to be a leader or official of an entity whose property and interests in 
property are blocked pursuant to: (1) a determination by the Secretary 
of the Treasury pursuant to amended E.O. 13224; or (2) section (a)(iv) 
of section 1 of amended E.O. 13224; or (F) to have attempted or 
conspired to engage in any of the activities described in sections 
(a)(iii)(A) through (E) of section 1 of amended E.O. 13224; and (iv) 
persons whose property and interests in property were blocked pursuant 
to E.O. 12947, as amended, on or after January 23, 1995 and remained 
blocked immediately prior to September 24, 2001 (the effective date of 
amended E.O. 13224). The property and interests in property of the 
persons described above may not be transferred, paid, exported, 
withdrawn, or otherwise dealt in.
    New section 1(b) of amended E.O. 13224 authorizes the Secretary of 
the Treasury to prohibit the opening, and prohibit or impose strict 
conditions on the maintaining, in the United States, of a correspondent 
account or payable-through account of any foreign financial institution 
that the Secretary of the Treasury, in consultation with the Secretary 
of State, has determined, on or after September 24, 2001 (the effective 
date of amended E.O. 13224), has knowingly conducted or facilitated any 
significant transaction on behalf of any person whose property and 
interests in property are blocked pursuant to amended E.O. 13224.
    Section 2 of E.O. 13886 amends section 5 of E.O. 13224 by replacing 
the reference to section 1(d) with a reference to section 1(a)(iii) to 
make a conforming change to reference the similar, but expanded, 
designation criteria in new section 1(a)(iii) of amended E.O. 13224.

Regulatory Amendments

    OFAC is amending the Regulations to implement the provisions of 
E.O. 13886 that amend sections 1(a) and 5 of E.O. 13224, as well as to 
make other technical and conforming changes for this amendment. 
Specifically, OFAC is amending the Regulations as follows: (i) amending 
the authority citation to incorporate E.O. 13886 as a new authority and 
the Hizballah International Financing Prevention Act of 2015 (Pub. L. 
114-102, 129 Stat. 2205, 50 U.S.C. 1701 note), as amended; (ii) 
amending Sec.  594.201 to reflect the new designation criteria 
contained in section 1(a) of amended E.O. 13224; (iii) updating the 
definition of the term effective date in Sec.  594.302 to account for 
revisions to Sec.  594.201; (iv) adjusting or removing cross-references 
in Sec.  594.301 and elsewhere in the Regulations to certain 
subparagraphs of revised Sec.  594.201; and (v) updating Sec.  594.802 
to add certain presidential delegations. OFAC anticipates implementing 
section 1(b) of amended E.O. 13224 at a later date.

Public Participation

    Because the amendment of the Regulations involves 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 15015-0164. 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 594

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Credit, Exports, Foreign Trade, Penalties, Reporting and 
recordkeeping requirements, Sanctions, Security, Services, Terrorism.

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

PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS

0
1. The authority citation for part 594 is revised to read as follows:

    Authority:  3 U.S.C. 301; 22 U.S.C. 287c; 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); Pub. L. 114-102, 129 Stat. 2205, as 
amended (50 U.S.C. 1701 note); Pub. L. 115-44, 131 Stat 886 
(codified in scattered sections of 22 U.S.C.); Pub. L. 115-348, 132 
Stat. 5055 (50 U.S.C. 1701 note); E.O. 13224, 66 FR 49079, 3 CFR, 
2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR 2002 Comp., p. 
240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 161; E.O. 13372, 
70 FR 8499, 3 CFR, 2006 Comp., p. 159; E.O. 13886, 84 FR 48041, 3 
CFR, 2019 Comp., p. 356.

Subpart B--Prohibitions


Sec.  594.201   [Amended]

0
2. Amend Sec.  594.201 by:
0
a. Revise paragraphs (a)(1), (2), (3), and (4);
0
b. In Note 1 to paragraph (a):
0
i. Remove the reference ``paragraph (a)(4)'' and add in its place 
``paragraph (a)(3)'';
0
ii. Remove ``his'' and add in its place ``their'';
0
iii. Remove ``he'' and add in its place ``the Secretary of the 
Treasury'';
0
iv. Add ``,'' after ``Secretary of Homeland Security'' wherever it 
appears.
    The revisions read as follows:


Sec.  594.201  Prohibited transactions involving blocked property.

    (a) * * *
    (1) Persons listed in the Annex to Executive Order (E.O.) 13224 of 
September 23, 2001, as amended;
    (2) Foreign persons determined by the Secretary of State, in 
consultation with the Secretary of the Treasury, the Attorney General, 
and the Secretary of Homeland Security:
    (i) To have committed or have attempted to commit, to pose a 
significant risk of committing, or to have participated in training to 
commit acts of terrorism that threaten the security of U.S. nationals 
or the national security, foreign policy, or economy of the United 
States; or
    (ii) To be a leader of an entity:
    (A) Described in paragraph (a)(1) of this section; or
    (B) Whose property and interests in property are blocked pursuant 
to a determination by the Secretary of State pursuant to E.O. 13224, as 
amended;
    (3) Persons determined by the Secretary of the Treasury, in

[[Page 39339]]

consultation with the Secretary of State, the Secretary of Homeland 
Security, and the Attorney General:
    (i) To be owned, controlled, or directed by, or to have acted or 
purported to act for or on behalf of, directly or indirectly, any 
person whose property and interests in property are blocked pursuant to 
paragraphs (a)(1) through (a)(4) of this section;
    (ii) To own or control, directly or indirectly, any person whose 
property and interests in property are blocked pursuant to paragraphs 
(a)(1) through (a)(4) of this section;
    (iii) To have materially assisted, sponsored, or provided 
financial, material, or technological support for, or goods or services 
to or in support of, an act of terrorism as defined in Sec.  594.311, 
or any person whose property and interest in property are blocked 
pursuant to paragraphs (a)(1) through (a)(4) of this section;
    (iv) To have participated in training related to terrorism provided 
by any person whose property and interests in property are blocked 
pursuant to paragraphs (a)(1) through (a)(4) of this section;
    (v) To be a leader or official of an entity whose property and 
interests in property are blocked pursuant to:
    (A) A determination by the Secretary of the Treasury pursuant to 
paragraph (a)(3) of this section; or
    (B) Paragraph (a)(4) of this section; or
    (vi) To have attempted or conspired to engage in any of the 
activities described in paragraphs (a)(3)(i) through (a)(3)(v) of this 
section;
    (4) Persons whose property and interests in property were blocked 
pursuant to E.O. 12947, as amended, on or after January 23, 1995, and 
remained blocked immediately prior to 12:01 a.m. eastern daylight time 
on September 24, 2001;
* * * * *

Subpart C--Definitions

0
3. Revise Sec.  594.302 to read as follows:


Sec.  594.302  Effective Date

    The term effective date refers to the effective date of the 
applicable prohibitions and directives contained in this part as 
follows:
    (a)(1) With respect to a person whose property and interests in 
property are blocked pursuant to Sec.  594.201(a)(1) and who appeared 
on the Annex to E.O. 13224 as issued on September 23, 2001, 12:01 a.m. 
eastern daylight time, September 24, 2001;
    (2) With respect to a person whose property and interests in 
property are blocked pursuant to Sec.  594.201(a)(1) and who was added 
to the Annex to E.O. 13224 after September 23, 2001, the date the 
person was added to the Annex to E.O. 13224, as amended;
    (b) With respect to a person whose property or interests in 
property are blocked pursuant to Sec.  594.201(a)(2) through (a)(11), 
the earlier of the date of actual or constructive notice that such 
person's property and interests in property are blocked pursuant to one 
or more of these sections.
    (c) 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.


Sec.  594.316  [Removed and Reserved]

0
4. Remove and reserve Sec.  594.316.


Sec.  594.317   [Amended]

0
5. Amend Sec.  594.317 by removing ``Sec.  594.201(a)(4)(i) of''.


Sec.  594.802   [Amended]

0
6. In Sec.  594.802, add '' Presidential Memorandum of January 15, 
2019: Delegation of Functions and Authorities Under the Hizballah 
International Financing Prevention Act of 2015, as Amended, and the 
Hizballah International Financing Prevention Amendments Act of 2018, 
and Presidential Memorandum of May 24, 2019: Delegation of Functions 
and Authorities Under the Sanctioning the Use of Civilians as 
Defenseless Shields Act,'' after ``(Pub. L. 115-44),''.

Andrea M. Gacki,
Director, Office of Foreign Assets Control.
Brian E. Nelson,
Under Secretary, Office of Terrorism and Financial Intelligence, 
Department of the Treasury.
[FR Doc. 2022-13969 Filed 6-30-22; 8:45 am]
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