[Federal Register Volume 77, Number 198 (Friday, October 12, 2012)]
[Presidential Documents]
[Pages 62139-62145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25236]


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  Federal Register / Vol. 77, No. 198 / Friday, October 12, 2012 / 
Presidential Documents  

[[Page 62139]]


                Executive Order 13628 of October 9, 2012

                
Authorizing the Implementation of Certain 
                Sanctions Set Forth in the Iran Threat Reduction and 
                Syria Human Rights Act of 2012 and Additional Sanctions 
                With Respect to Iran

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, including the International Emergency Economic 
                Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the 
                National Emergencies Act (50 U.S.C. 1601 et seq.), the 
                Iran Sanctions Act of 1996 (Public Law 104-172) (50 
                U.S.C. 1701 note), as amended (ISA), the Comprehensive 
                Iran Sanctions, Accountability, and Divestment Act of 
                2010 (Public Law 111-195) (22 U.S.C. 8501 et seq.), as 
                amended (CISADA), the Iran Threat Reduction and Syria 
                Human Rights Act of 2012 (Public Law 112-158) 
                (ITRSHRA), section 212(f) of the Immigration and 
                Nationality Act of 1952, as amended (8 U.S.C. 1182(f)), 
                and section 301 of title 3, United States Code, and in 
                order to take additional steps with respect to the 
                national emergency declared in Executive Order 12957 of 
                March 15, 1995,

                I, BARACK OBAMA, President of the United States of 
                America, hereby order:

                Section 1. (a) When the President, or the Secretary of 
                State or the Secretary of the Treasury pursuant to 
                authority delegated by the President and in accordance 
                with the terms of such delegation, has determined that 
                sanctions shall be imposed on a person pursuant to ISA, 
                CISADA, or ITRSHRA and has, in accordance with those 
                authorities, selected one or more of the sanctions set 
                forth in section 6 of ISA to impose on that person, the 
                Secretary of the Treasury, in consultation with the 
                Secretary of State, shall take the following actions 
                with respect to the sanctions selected and maintained 
                by the President, the Secretary of State, or the 
                Secretary of the Treasury:

(i) with respect to section 6(a)(3) of ISA, prohibit any United States 
financial institution from making loans or providing credits to the 
sanctioned person consistent with that section;

(ii) with respect to section 6(a)(6) of ISA, prohibit any transactions in 
foreign exchange that are subject to the jurisdiction of the United States 
and in which the sanctioned person has any interest;

(iii) with respect to section 6(a)(7) of ISA, prohibit any transfers of 
credit or payments between financial institutions or by, through, or to any 
financial institution, to the extent that such transfers or payments are 
subject to the jurisdiction of the United States and involve any interest 
of the sanctioned person;

(iv) with respect to section 6(a)(8) of ISA, block 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, including any foreign branch, of the sanctioned 
person, and provide that such property and interests in property may not be 
transferred, paid, exported, withdrawn, or otherwise dealt in;

(v) with respect to section 6(a)(9) of ISA, prohibit any United States 
person from investing in or purchasing significant amounts of equity or 
debt instruments of a sanctioned person;

(vi) with respect to section 6(a)(11) of ISA, impose on the principal 
executive officer or officers, or persons performing similar functions and 
with

[[Page 62140]]

similar authorities, of a sanctioned person the sanctions described in 
sections 6(a)(3), 6(a)(6), (6)(a)(7), 6(a)(8), 6(a)(9), or 6(a)(12) of ISA, 
as selected by the President, Secretary of State, or Secretary of the 
Treasury, as appropriate; or

(vii) with respect to section 6(a)(12) of ISA, restrict or prohibit imports 
of goods, technology, or services, directly or indirectly, into the United 
States from the sanctioned person.

                (b) The prohibitions in subsection (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 order, and notwithstanding 
                any contract entered into or any license or permit 
                granted prior to the date of this order.

                Sec. 2. (a) 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, 
                including any foreign branch, of the following persons 
                are blocked and may not be transferred, paid, exported, 
                withdrawn, or otherwise dealt in: any person determined 
                by the Secretary of the Treasury, in consultation with 
                or at the recommendation of the Secretary of State:

(i) to have knowingly, on or after August 10, 2012, transferred, or 
facilitated the transfer of, goods or technologies to Iran, any entity 
organized under the laws of Iran or otherwise subject to the jurisdiction 
of the Government of Iran, or any national of Iran, for use in or with 
respect to Iran, that are likely to be used by the Government of Iran or 
any of its agencies or instrumentalities, or by any other person on behalf 
of the Government of Iran or any of such agencies or instrumentalities, to 
commit serious human rights abuses against the people of Iran;

(ii) to have knowingly, on or after August 10, 2012, provided services, 
including services relating to hardware, software, or specialized 
information or professional consulting, engineering, or support services, 
with respect to goods or technologies that have been transferred to Iran 
and that are likely to be used by the Government of Iran or any of its 
agencies or instrumentalities, or by any other person on behalf of the 
Government of Iran or any of such agencies or instrumentalities, to commit 
serious human rights abuses against the people of Iran;

(iii) to have materially assisted, sponsored, or provided financial, 
material, or technological support for, or goods or services to or in 
support of, the activities described in subsection (a)(i) or (a)(ii) of 
this section or any person whose property and interests in property are 
blocked pursuant to this section; or

(iv) 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 this section.

                (b) The prohibitions in subsection (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 order, and notwithstanding 
                any contract entered into or any license or permit 
                granted prior to the date of this order.

                Sec. 3. (a) 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, 
                including any foreign branch, of the following persons 
                are blocked and may not be transferred, paid, exported, 
                withdrawn, or otherwise dealt in: any person determined 
                by the Secretary of the Treasury, in consultation with 
                or at the recommendation of the Secretary of State:

(i) to have engaged in censorship or other activities with respect to Iran 
on or after June 12, 2009, that prohibit, limit, or penalize the exercise 
of freedom of expression or assembly by citizens of Iran, or that limit 
access to print or broadcast media, including the facilitation or support

[[Page 62141]]

of intentional frequency manipulation by the Government of Iran or an 
entity owned or controlled by the Government of Iran that would jam or 
restrict an international signal;

(ii) to have materially assisted, sponsored, or provided financial, 
material, or technological support for, or goods or services to or in 
support of, the activities described in subsection (a)(i) of this section 
or any person whose property and interests in property are blocked pursuant 
to 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 this section.

                (b) The prohibitions in subsection (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 order, and notwithstanding 
                any contract entered into or any license or permit 
                granted prior to the date of this order.

                Sec. 4. (a) No entity owned or controlled by a United 
                States person and established or maintained outside the 
                United States may knowingly engage in any transaction, 
                directly or indirectly, with the Government of Iran or 
                any person subject to the jurisdiction of the 
                Government of Iran, if that transaction would be 
                prohibited by Executive Order 12957, Executive Order 
                12959 of May 6, 1995, Executive Order 13059 of August 
                19, 1997, Executive Order 13599 of February 5, 2012, 
                section 5 of Executive Order 13622 of July 30, 2012, or 
                section 12 of this order, or any regulation issued 
                pursuant to the foregoing, if the transaction were 
                engaged in by a United States person or in the United 
                States.

                (b) Penalties assessed for violations of the 
                prohibition in subsection (a) of this section, and any 
                related violations of section 12 of this order, may be 
                assessed against the United States person that owns or 
                controls the entity that engaged in the prohibited 
                transaction.

                (c) Penalties for violations of the prohibition in 
                subsection (a) of this section shall not apply if the 
                United States person that owns or controls the entity 
                divests or terminates its business with the entity not 
                later than February 6, 2013.

                (d) The prohibitions in subsection (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 order, and notwithstanding 
                any contract entered into or any license or permit 
                granted prior to the date of this order.

                Sec. 5. The Secretary of State, in consultation with 
                the Secretary of the Treasury, the Secretary of 
                Commerce, and the United States Trade Representative, 
                and with the President of the Export-Import Bank of the 
                United States, the Chairman of the Board of Governors 
                of the Federal Reserve System, and other agencies and 
                officials as appropriate, is hereby authorized to 
                impose on a person any of the sanctions described in 
                section 6 or 7 of this order upon determining that the 
                person:

                (a) knowingly, between July 1, 2010, and August 10, 
                2012, sold, leased, or provided to Iran goods, 
                services, technology, information, or support with a 
                fair market value of $1,000,000 or more, or with an 
                aggregate fair market value of $5,000,000 or more 
                during a 12-month period, and that could directly and 
                significantly facilitate the maintenance or expansion 
                of Iran's domestic production of refined petroleum 
                products, including any direct and significant 
                assistance with respect to the construction, 
                modernization, or repair of petroleum refineries;

                (b) knowingly, between July 1, 2010, and August 10, 
                2012, sold or provided to Iran refined petroleum 
                products with a fair market value of $1,000,000 or 
                more, or with an aggregate fair market value of 
                $5,000,000 or more during a 12-month period;

[[Page 62142]]

                (c) knowingly, between July 1, 2010, and August 10, 
                2012, sold, leased, or provided to Iran goods, 
                services, technology, information, or support with a 
                fair market value of $1,000,000 or more, or with an 
                aggregate fair market value of $5,000,000 or more 
                during a 12-month period, and that could directly and 
                significantly contribute to the enhancement of Iran's 
                ability to import refined petroleum products;

                (d) is a successor entity to a person determined by the 
                Secretary of State in accordance with this section to 
                meet the criteria in subsection (a), (b), or (c) of 
                this section;

                (e) owns or controls a person determined by the 
                Secretary of State in accordance with this section to 
                meet the criteria in subsection (a), (b), or (c) of 
                this section, and had knowledge that the person engaged 
                in the activities referred to in that subsection; or

                (f) is owned or controlled by, or under common 
                ownership or control with, a person determined by the 
                Secretary of State in accordance with this section to 
                meet the criteria in subsection (a), (b), or (c) of 
                this section, and knowingly participated in the 
                activities referred to in that subsection.

                Sec. 6. (a) When the Secretary of State, in accordance 
                with the terms of section 5 of this order, has 
                determined that a person meets any of the criteria 
                described in section 5 and has selected any of the 
                sanctions set forth below to impose on that person, the 
                heads of relevant agencies, in consultation with the 
                Secretary of State, shall take the following actions 
                where necessary to implement the sanctions imposed by 
                the Secretary of State:

(i) the Board of Directors of the Export-Import Bank shall deny approval of 
the issuance of any guarantee, insurance, extension of credit, or 
participation in an extension of credit in connection with the export of 
any goods or services to the sanctioned person;

(ii) agencies shall not issue any specific license or grant any other 
specific permission or authority under any statute that requires the prior 
review and approval of the United States Government as a condition for the 
export or reexport of goods or technology to the sanctioned person;

(iii) with respect to a sanctioned person that is a financial institution:

(1) the Chairman of the Board of Governors of the Federal Reserve System 
and the President of the Federal Reserve Bank of New York shall take such 
actions as they deem appropriate, including denying designation, or 
terminating the continuation of any prior designation of, the sanctioned 
person as a primary dealer in United States Government debt instruments; or

(2) agencies shall prevent the sanctioned person from serving as an agent 
of the United States Government or serving as a repository for United 
States Government funds; or

(iv) agencies shall not procure, or enter into a contract for the 
procurement of, any goods or services from the sanctioned person.

                (b) The prohibitions in subsections (a)(i)-(a)(iv) 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 order, and 
                notwithstanding any contract entered into or any 
                license or permit granted prior to the date of this 
                order.

                Sec. 7. (a) When the Secretary of State, in accordance 
                with the terms of section 5 of this order, has 
                determined that a person meets any of the criteria 
                described in section 5 and has selected any of the 
                sanctions set forth below to impose on that person, the 
                Secretary of the Treasury, in consultation with the 
                Secretary of State, shall take the following actions 
                where necessary to implement the sanctions imposed by 
                the Secretary of State:

(i) prohibit any United States financial institution from making loans or 
providing credits to the sanctioned person totaling more than

[[Page 62143]]

$10,000,000 in any 12-month period, unless such person is engaged in 
activities to relieve human suffering and the loans or credits are provided 
for such activities;

(ii) prohibit any transactions in foreign exchange that are subject to the 
jurisdiction of the United States and in which the sanctioned person has 
any interest;

(iii) prohibit any transfers of credit or payments between financial 
institutions or by, through, or to any financial institution, to the extent 
that such transfers or payments are subject to the jurisdiction of the 
United States and involve any interest of the sanctioned person;

(iv) block 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, including any foreign 
branch, of the sanctioned person, and provide that such property and 
interests in property may not be transferred, paid, exported, withdrawn, or 
otherwise dealt in; or

(v) restrict or prohibit imports of goods, technology, or services, 
directly or indirectly, into the United States from the sanctioned person.

                (b) The prohibitions in subsections (a)(i)-(a)(v) 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 order, and 
                notwithstanding any contract entered into or any 
                license or permit granted prior to the date of this 
                order.

                Sec. 8. I hereby determine that, to the extent that 
                section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) may 
                apply, the making of donations of the types of articles 
                specified in such section by, to, or for the benefit of 
                any person whose property and interests in property are 
                blocked pursuant to this order would seriously impair 
                my ability to deal with the national emergency declared 
                in Executive Order 12957, and I hereby prohibit such 
                donations as provided by subsections 1(a)(iv), 2(a), 
                3(a), and 7(a)(iv) of this order.

                Sec. 9. The prohibitions in subsections 1(a)(iv), 2(a), 
                3(a), and 7(a)(iv) of this order include but are not 
                limited to:

                (a) 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 this order; and

                (b) the receipt of any contribution or provision of 
                funds, goods, or services from any such person.

                Sec. 10. I hereby find that the unrestricted immigrant 
                and nonimmigrant entry into the United States of aliens 
                who meet one or more of the criteria in subsections 
                2(a) and 3(a) of this order would be detrimental to the 
                interests of the United States, and I hereby suspend 
                the entry into the United States, as immigrants or 
                nonimmigrants, of such persons. Such persons shall be 
                treated as persons covered by section 1 of Proclamation 
                8693 of July 24, 2011 (Suspension of Entry of Aliens 
                Subject to United Nations Security Council Travel Bans 
                and International Emergency Economic Powers Act 
                Sanctions).

                Sec. 11. The Secretary of the Treasury, in consultation 
                with the Secretary of State, is hereby authorized to 
                take such actions, including the promulgation of rules 
                and regulations, and to employ all powers granted to 
                the President by IEEPA and sections 6(a)(6), 6(a)(7), 
                6(a)(8), 6(a)(9), 6(a)(11), and 6(a)(12) of ISA, and to 
                employ all powers granted to the United States 
                Government by section 6(a)(3) of ISA, as may be 
                necessary to carry out the purposes of this order. The 
                Secretary of the Treasury may redelegate any of these 
                functions to other officers and agencies of the United 
                States Government consistent with applicable law.

                Sec. 12. (a) Any transaction that evades or avoids, has 
                the purpose of evading or avoiding, causes a violation 
                of, or attempts to violate any of

[[Page 62144]]

                the prohibitions set forth in this order or in 
                Executive Order 12957, Executive Order 12959, Executive 
                Order 13059, or Executive Order 13599 is prohibited.

                (b) Any conspiracy formed to violate any of the 
                prohibitions set forth in this order or in Executive 
                Order 12957, Executive Order 12959, Executive Order 
                13059, or Executive Order 13599 is prohibited.

                Sec. 13. For the purposes of this order:

                (a) the term ``entity'' means a partnership, 
                association, trust, joint venture, corporation, group, 
                subgroup, or other organization;

                (b) the term ``Government of Iran'' includes the 
                Government of Iran, any political subdivision, agency, 
                or instrumentality thereof, including the Central Bank 
                of Iran, and any person owned or controlled by, or 
                acting for or on behalf of, the Government of Iran;

                (c) the term ``Iran'' means the Government of Iran and 
                the territory of Iran and any other territory or marine 
                area, including the exclusive economic zone and 
                continental shelf, over which the Government of Iran 
                claims sovereignty, sovereign rights, or jurisdiction, 
                provided that the Government of Iran exercises partial 
                or total de facto control over the area or derives a 
                benefit from economic activity in the area pursuant to 
                international arrangements;

                (d) the terms ``knowledge'' and ``knowingly,'' with 
                respect to conduct, a circumstance, or a result, mean 
                that a person has actual knowledge, or should have 
                known, of the conduct, the circumstance, or the result;

                (e) the term ``person'' means an individual or entity;

                (f) the term ``sanctioned person'' means a person that 
                the President, or the Secretary of State or the 
                Secretary of the Treasury pursuant to authority 
                delegated by the President and in accordance with the 
                terms of such delegation, has determined is a person on 
                whom sanctions shall be imposed pursuant to IEEPA, ISA, 
                CISADA, or ITRSHRA, and on whom the President, the 
                Secretary of State, or the Secretary of the Treasury 
                has imposed any of the sanctions in section 6 of ISA;

                (g) for the purposes of section 4 of this order, the 
                term ``subject to the jurisdiction of the Government of 
                Iran'' means a person organized under the laws of Iran 
                or any jurisdiction within Iran, ordinarily resident in 
                Iran, or in Iran, or owned or controlled by any of the 
                foregoing;

                (h) the term ``United States financial institution'' 
                means a financial institution (including its foreign 
                branches) organized under the laws of the United States 
                or any jurisdiction within the United States or located 
                in the United States; and

                (i) the term ``United States 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.

                Sec. 14. For those persons whose property and interests 
                in property are blocked pursuant to this order who 
                might have a constitutional presence in the United 
                States, I find that because of the ability to transfer 
                funds or other assets instantaneously, prior notice to 
                such persons of measures to be taken pursuant to this 
                order would render those measures ineffectual. I 
                therefore determine that for these measures to be 
                effective in addressing the national emergency declared 
                in Executive Order 12957, there need be no prior notice 
                of an action taken pursuant to subsections 1(a)(iv), 
                2(a), 3(a), and 7(a)(iv) of this order.

                Sec. 15. Executive Order 13622 is hereby amended as 
                follows:

                (a) Subsection (1)(c)(ii) is amended by deleting the 
                words ``with respect to the country with primary 
                jurisdiction over the foreign financial institution.''

[[Page 62145]]

                (b) Subsection (2)(b)(ii) is amended by deleting the 
                words ``with respect to the country with primary 
                jurisdiction over the person.''

                (c) Subsection 1(d) is amended by inserting the words 
                ``agricultural commodities,'' after the words ``sale 
                of.''

                Sec. 16. The Secretary of the Treasury, in consultation 
                with the Secretary of State, is hereby authorized 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 section 104A of CISADA (22 U.S.C. 8514). The 
                Secretary of the Treasury may redelegate any of these 
                functions to other officers and agencies of the United 
                States Government consistent with applicable law.

                Sec. 17. All agencies of the United States Government 
                are hereby directed to take all appropriate measures 
                within their authority to carry out the provisions of 
                this order.

                Sec. 18. This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.

                Sec. 19. The measures taken pursuant to this order are 
                in response to actions of the Government of Iran 
                occurring after the conclusion of the 1981 Algiers 
                Accords, and are intended solely as a response to those 
                later actions.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, October 9, 2012.

[FR Doc. 2012-25236
Filed 10-11-12; 8:45 am]
Billing code 3295-F3