[Federal Register Volume 84, Number 141 (Tuesday, July 23, 2019)]
[Rules and Regulations]
[Pages 35307-35313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15600]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 566, 590, and 594
Global Terrorism Sanctions Regulations; Transnational Criminal
Organizations Sanctions Regulations; and Hizballah Financial 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 amending the Global Terrorism Sanctions Regulations
(GTSR), and the Transnational Criminal Organizations Sanctions
Regulations (TCOSR), to implement and reference the Hizballah
International Financing Prevention Amendments Act of 2018 (HIFPAA).
OFAC is also amending the GTSR to implement and reference the
Sanctioning the Use of Civilians as Defenseless Shields Act of 2018
(Shields Act). OFAC is further amending the TCOSR to implement
Executive Order 13863 of March 15, 2019 (``Taking Additional Steps to
Address the National Emergency with respect to Significant
Transnational Criminal Organizations''). Finally, OFAC is amending the
Hizballah Financial Sanctions Regulations (HFSR), to make certain
technical and conforming changes and to update certain provisions.
DATES: Effective: July 23, 2019.
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 from OFAC's website (www.treasury.gov/ofac).
[[Page 35308]]
Background
Implementing HIFPAA and the Shields Act in the GTSR and Implementing
HIFPAA in the TCOSR
HIFPAA. On October 25, 2018, the President signed HIFPAA into law.
HIFPAA amends the Hizballah International Financing Prevention Act of
2015 (HIFPA), Public Law 114-102, to impose certain specified sanctions
on: (1) Foreign persons that knowingly assist in or provide significant
support for fundraising or recruitment activities for Hizballah
(section 101(a) of HIFPAA); (2) agencies of foreign states that
knowingly provide certain significant support to Hizballah (section
103(a) of HIFPAA); and (3) affiliated networks of Hizballah (section
201(b) of HIFPAA).
More specifically, section 101(a) of HIFPAA provides for blocking
sanctions on any foreign person that the President determines knowingly
provides significant financial, material, or technological support for
or to: (1) Bayt al-Mal, Jihad al-Bina, the Islamic Resistance Support
Association, the Foreign Relations Department of Hizballah, the
External Security Organization of Hizballah, or any successor or
affiliate thereof as designated by the President; (2) al-Manar TV, al
Nour Radio, or the Lebanese Media Group, or any successor or affiliate
thereof as designated by the President; (3) a foreign person determined
by the President to be engaged in fundraising or recruitment activities
for Hizballah; or (4) a foreign person owned or controlled by a person
described in paragraph (1), (2), or (3). Section 103(a) of HIFPAA
provides for blocking sanctions on any agency or instrumentality of a
foreign state that the President determines has, on or after October
25, 2018 (the date of the enactment of HIFPAA), knowingly: (A)
Conducted significant joint combat operations with, or significantly
supported combat operations of, Hizballah; or (B) provided significant
financial support for or to, or significant arms or related materiel
to, Hizballah.
Section 201(b) of HIFPAA provides for specified sanctions with
respect to affiliated networks of Hizballah, including, as appropriate,
by reason of significant transnational criminal activities engaged in
by such networks. Section 201(b) requires the President to impose on
such networks sanctions applicable with respect to Hizballah pursuant
to any provision of law, including Executive Order (E.O.) 13581
(relating to blocking property of transnational organizations).
Section 301 of HIFPAA provides authority for the President to
promulgate regulations ``as necessary for the implementation of this
Act and the amendments made by this Act.'' Pursuant to the Presidential
Memorandum of May 24, 2019, ``Delegation of Function under the
Hizballah International Financing Prevention Act of 2015, as Amended''
(84 FR 24975, May 30, 2019), the President delegated the function
vested in the President by section 102(d) of HIFPA, as amended by
HIFPAA, to the Secretary of the Treasury, in consultation with the
Secretary of State. Pursuant to the 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''
(84 FR 3963, February 13, 2019), the President delegated, among other
things, the functions and authorities set forth in sections 101(a),
101(b)(1), 102(a), 102(c), 102(d), 103(a), 201(a-b), 204(b), and 302 of
HIFPA, as amended by HIFPAA, as well as section 301 of HIFPAA, to the
Secretary of the Treasury, in coordination with the State Department
and other relevant departments and agencies.
Section 302(a) of HIFPAA provides for exemptions from the
prohibitions in sections 101, 102, 103 and 201 for certain activities,
including authorized U.S. intelligence, law enforcement or national
security activities as well as transactions necessary for the U.S. to
comply with United Nations obligations. These exemptions are being
added to the GTSR in Sec. 594.207.
Shields Act. On December 21, 2018, the President signed the Shields
Act into law. The Shields Act states that it shall be U.S. policy to
condemn the use of innocent civilians as human shields. Section 3(b) of
the Shields Act provides that the President shall submit to Congress
within one year, and annually thereafter until the expiration of the
Shields Act on December 31, 2023, a list of: (1) Each foreign person
that the President determines on or after December 21, 2018, is (A) a
member of Hizballah or HAMAS or is knowingly acting on behalf of
Hizballah or HAMAS and (B) knowingly orders, controls, or otherwise
directs the use of civilians protected as such by the law of war to
shield military objectives from attack; and (2) each foreign person or
agency or instrumentality of a foreign state, that the President
determines on or after December 21, 2018, knowingly and materially
directs or supports any such act by such a person. Sections 3(a)(1) and
(d) require the President, with certain exceptions, to exercise powers
granted by the International Emergency Economic Powers Act (IEEPA) to
the extent necessary to block, and prohibit all transactions in, 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 a listed person.
Section 3(c) of the Shields Act urges the President to submit to
Congress within one year, and annually thereafter until the expiration
of the Shields Act on December 31, 2023, a list of each foreign person
that the President determines on or after December 21, 2018, knowingly
directs the use of civilians protected by the law of war to shield
military objectives from attack, excluding those foreign persons
included in the most recent mandatory sanctions list under Section
3(b). Sections 3(a)(2) and (d) provide that the President may, with
certain exceptions, exercise powers granted by IEEPA to the extent
necessary to block, and prohibit all transactions in, 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 a listed person.
Section 3(h)(2) of the Shields Act provides authority for the
President to promulgate regulations ``as may be necessary to implement
this section.'' Pursuant to the ``Delegation of Functions and
Authorities under the Sanctioning the Use of Civilians as Defenseless
Shields Act,'' May 24, 2019, and Public Law 115-348, the President
delegated to the Secretary of the Treasury, in consultation with the
Secretary of State, the functions and authorities vested in the
President by sections 3(a), 3(b), 3(c), 3(d)(1), and 3(h) of the
Shields Act.
Regulatory Amendments. The GTSR, 31 CFR part 594, implements E.O.
13224 of September 23, 2001 (``Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support
Terrorism''), in which the President declared a national emergency
generally with respect to ``grave acts of terrorism and threats of
terrorism committed by foreign terrorists.''
Subpart B of the GTSR implements the prohibitions contained in E.O.
13224. See Sec. [thinsp]594.201. This rule amends Sec. 594.201 of the
GTSR to implement the additional sanctions prohibitions of HIFPAA and
the Shields Act. Persons designated by or under the authority of the
Secretary of the Treasury, in
[[Page 35309]]
consultation with the Secretary of State, pursuant to these amendments
or otherwise subject to blocking pursuant to the GTSR are referred to
throughout the GTSR as ``persons whose property and interests in
property are blocked pursuant to Sec. [thinsp]594.201(a).'' The names
of persons designated pursuant to the HIFPAA, the Shields Act, or E.O.
13224 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.
In addition, in subpart C, which defines key terms used throughout
the GTSR, OFAC is adding several definitions. Specifically, OFAC is
adding definitions for agency or instrumentality of a foreign state in
new Sec. 594.318, HAMAS in new Sec. 594.319, Hizballah in new Sec.
594.320, knowingly in new Sec. 594.321, and arms or related material
in new Sec. 594.322.
As noted above, section 201(b) of HIFPAA also provides for blocking
sanctions with respect to affiliated networks of Hizballah, including,
as appropriate, by reason of significant transnational criminal
activities engaged in by such networks. The TCOSR, 31 CFR part 590,
implement E.O. 13581 of July 24, 2011 (``Blocking Property of
Transnational Criminal Organizations''), in which the President
declared a national emergency generally with respect to the activities
of ``significant transnational criminal organizations.'' Accordingly,
OFAC is amending the TCOSR to reference the authorities from section
201(b) of HIFPAA.
The President, through the issuance of E.O. 13224 and E.O. 13581,
has put in place prohibitions and designation criteria that encompass
all of the prohibitions and designation criteria contained in the
provisions of HIFPAA and the Shields Act discussed above and has
thereby already taken the steps necessary to implement those
provisions. OFAC is issuing these amendments to the GTSR and the TCOSR
to reflect the various provisions of HIFPAA and the Shields Act in the
GTSR and the TCOSR.
Implementing E.O. 13863
On March 15, 2019, the President, invoking the authority of, inter
alia, IEEPA, issued E.O.13863 (84 FR 10255, March 15, 2019) (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 amends subsection (e) of section 3 of
E.O. 13581 to define the term ``significant transnational criminal
organization'' to mean ``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.''
OFAC is amending the TCOSR to implement E.O. 13863, pursuant to
authorities delegated to the Secretary of the Treasury in E.O. 13581.
Specifically, OFAC is amending Sec. 590.201 of the TCOSR to reference
E.O. 13863 and is incorporating the amended definition of significant
transnational criminal organization into the TCOSR by adding new Sec.
590.315. The TCOSR were published in abbreviated form for the purpose
of providing immediate guidance to the public. A copy of E.O. 13581
appears in appendix A and a copy of E.O. 13863 is being added in a new
appendix B to part 590. OFAC intends to supplement part 590 with a more
comprehensive set of regulations, which may include additional
interpretive and definitional guidance, general licenses, and
statements of licensing policy. The appendices to part 590 will be
removed at that time.
Technical Amendments to the Hizballah Financial Sanctions Regulations
(HFSR)
On April 15, 2016, OFAC published the HFSR (81 FR 22185, April 15,
2016) to implement the requirements of the HIFPA. This rule amends the
HFSR to make certain technical and conforming changes and to update
certain provisions.
First, in Sec. 566.309, this rule corrects two internal references
to Sec. 566.304 to read: ``covered financial institution, as defined
in Sec. 566.303.'' Second, in subpart G of the HFSR, which describes
the civil and criminal penalties applicable to violations of the HFSR,
OFAC is adding new Sec. 566.705 regarding the procedures governing the
potential issuance of a Finding of Violation and makes conforming
changes by removing other references to a Finding of Violation in
Sec. Sec. 566.702 and 566.703. Third, OFAC is revising Sec. 501.901
to reflect approval by the Office of Management and Budget (OMB) of the
information collection set forth in Sec. 566.504(b).
Finally, section 302(a) of HIFPAA provides for exemptions from the
prohibitions in sections 101, 102, 103, and 201 for certain activities,
including authorized U.S. intelligence, law enforcement or national
security activities as well as transactions necessary for the U.S. to
comply with United Nations obligations. These exemptions are being
added to the HFSR in Sec. 566.203.
Public Participation
Because the amendments of the GTSR, the TCOSR, and the HFSR involve
a foreign affairs function, the provisions of Executive Order 12866 and
the Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date, as well as the provisions of Executive Order 13771, 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 in the TCOSR, the GTSR, and Sec.
566.601 of the HFSR are made pursuant to the Reporting, Procedures and
Penalties Regulations (RPPR), 31 CFR part 501, and have been approved
by OMB under control number 1505-0164. The collection of information in
Sec. 566.504(b) of the HFSR has been approved by OMB under control
number 1505-0255.
With respect to all of the foregoing collections of information, 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
31 CFR Part 566
Administrative practice and procedure, Banks, banking, Brokers,
Foreign trade, Hizballah, Investments, Loans, Money laundering,
Penalties, Securities, Services.
31 CFR Part 590
Administrative practice and procedure, Banks, banking, Blocking of
assets, Credit, Foreign financial institutions, Foreign trade, Loans,
Money laundering, Penalties, Reporting
[[Page 35310]]
and recordkeeping requirements, Services.
31 CFR Part 594
Administrative practice and procedure, Banks, banking, Blocking of
assets, Penalties, Reporting and recordkeeping requirements, Sanctions,
Terrorism.
Authority and Issuance
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR parts 566,
590 and 594 as follows:
PART 566--HIZBALLAH FINANCIAL SANCTIONS REGULATIONS
0
1. Revise the authority citation for part 566 to read as follows:
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 (28 U.S.C. 2461 note);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 114-
102, 129 Stat. 2205 (50 U.S.C. 1701 note); Pub. L. 115-272, 132
Stat. 4144 (50 U.S.C. 1701 note).
Subpart B--Prohibitions
0
2. Add Sec. 566.203 to read as follows:
Sec. 566.203 Exempt transactions.
Sanctions will not be imposed under Sec. 566.201 with respect to:
(a) Any authorized intelligence, law enforcement, or national
security activities of the United States.
(b) Any transaction necessary to comply with United States
obligations under the Agreement between the United Nations and the
United States of America regarding the Headquarters of the United
States, signed at Lake Success June 26, 1947, and entered into force
November 21, 1947, or the Convention on Consular Relations, done at
Vienna April 24, 1963, and entered into force March 19, 1967, or any
other United States international agreement.
Subpart C--General Definitions
0
3. Revise Sec. 566.309(a)(2) and (3) to read as follows:
Sec. 566.309 Foreign financial institution.
(a) * * *
(2) Any branch or office located outside the United States of a
covered financial institution, as defined in Sec. 566.303;
(3) Any other person organized under foreign law (other than a
branch or office of such person in the United States) that, if it were
located in the United States, would be a covered financial institution,
as defined in Sec. 566.303; and
* * * * *
0
4. Revise the heading for subpart G to read as follows:
Subpart G--Penalties and Finding of Violation
0
5. Revise Sec. 566.702(a) and (d) to read as follows:
Sec. 566.702 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. 1701-1706)
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.
* * * * *
(d) Guidelines. Guidelines for the imposition or settlement of
civil penalties by OFAC are contained in appendix A to part 501 of this
chapter.
* * * * *
0
6. Revise Sec. 566.703 to read as follows:
Sec. 566.703 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.
0
7. Add Sec. 566.705 to read as follows:
Sec. 566.705 Finding 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. 1701-1706);
(ii) Considers it important to document the occurrence of a
violation; and,
(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 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) on or before the
30th day after the postmark date on the envelope in which the initial
Finding of Violation was served. 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.
[[Page 35311]]
(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, 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. A
copy of the written response may be sent by facsimile, but the original
also must be sent to OFAC by mail or courier 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 the alleged violation 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 I--Paperwork Reduction Act
0
8. Revise Sec. 566.901 to read as follows:
Sec. 566.901 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 Sec. 501.901 of this
chapter. The information collection in Sec. 566.504(b) has been
approved by OMB and assigned control number 1505-0255. 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.
PART 590--TRANSNATIONAL CRIMINAL ORGANIZATIONS SANCTIONS
REGULATIONS
0
9. Revise the authority citation for part 590 to read as follows:
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 (28 U.S.C. 2461 note);
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 115-
272, 132 Stat. 4144 (50 U.S.C. 1701 note); E.O. 13581, 76 FR 44757,
3 CFR, 2011 Comp., p. 260; E.O. 13863, 84 FR 10255, March 15, 2019.
Subpart B--Prohibitions
Sec. 590.201 [Amended]
0
10. Amend Sec. 590.201 by adding the text ``, as amended by Executive
Order 13863 of March 15, 2019 (84 FR 10255, March 15, 2019),'' before
the text ``are also prohibited.''
Subpart C--Definitions
0
11. Add Sec. 590.315 to read as follows:
Sec. 590.315 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.
0
12. Add Sec. 590.316 to read as follows:
Sec. 590.316 Hizballah.
The term Hizballah means:
(a) The entity known as Hizballah and designated by the Secretary
of State as a foreign terrorist organization pursuant to section 219 of
the Immigration and Nationality Act (8 U.S.C. 1189); or
(b) Any person:
(1) The property and interests in property of which are blocked
pursuant to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.); and
(2) Who is identified on the Specially Designated Nationals and
Blocked Persons List (SDN List) maintained by OFAC as an agent,
instrumentality, or affiliate of Hizballah.
0
13. Add appendix B to part 590 to read as follows:
Appendix B to Part 590--Executive Order 13863
Executive Order 13863 of March 15, 2019
Taking Additional Steps To Address the National Emergency With Respect
to Significant Transnational Criminal Organizations
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.), the National Emergencies Act (50 U.S.C. 1601 et seq.), and
section 301 of title 3, United States Code;
I, DONALD J. TRUMP, President of the United States of America,
in order to take additional steps to deal with the national
emergency with respect to significant transnational criminal
organizations declared in Executive Order 13581 of July 24, 2011
(Blocking Property of Transnational Criminal Organizations), 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, hereby order:
Section 1. Subsection (e) of section 3 of Executive Order 13581
is hereby amended to read as follows:
``(e) 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.''
Sec. 2. (a) Nothing in this order shall be construed to impair
or otherwise affect:
(i) the authority granted by law to an executive department or
agency, or the head thereof; or
[[Page 35312]]
(ii) the functions of the Director of the Office of Management
and Budget relating to budgetary, administrative, or legislative
proposals.
(b) This order shall be implemented consistent with applicable
law and subject to the availability of appropriations.
(c) 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.
DONALD J. TRUMP
THE WHITE HOUSE
March 15, 2019
PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS
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14. Revise the authority citation for part 594 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 (28
U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705
note); Pub. L. 115-44, 131 Stat 886 (22 U.S.C. 9401 et seq.); 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;
Pub. L. 115-348, 132 Stat. 5055 (50 U.S.C. 1701 note); Pub. L. 115-
272, 132 Stat. 4144 (50 U.S.C. 1701 note).
Subpart B--Prohibitions
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15. Amend Sec. 594.201 by:
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a. Revising paragraph (a)(4)(ii).
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b. In paragraph (a)(5), removing the period at the end of the paragraph
and adding a semicolon in its place.
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c. Adding paragraphs (a)(6) through (11) and (c).
The revision and additions read as follows:
Sec. 594.201 Prohibited transactions involving blocked property.
(a) * * *
(4) * * *
(ii) To be otherwise associated with any person whose property or
interests in property are blocked pursuant to paragraph (a)(1), (2), or
(3) or (a)(4)(i) of this section;
* * * * *
(6) Foreign persons determined by the Secretary of the Treasury, in
consultation with the Secretary of State, to knowingly provide
significant financial, material, or technological support for or to:
(i) Bayt al-Mal, Jihad al-Bina, the Islamic Resistance Support
Association, the Foreign Relations Department of Hizballah, the
External Security Organization of Hizballah, or any successor or
affiliate thereof as designated by the Secretary of the Treasury, in
consultation with the Secretary of State;
(ii) Al-Manar TV, al Nour Radio, or the Lebanese Media Group, or
any successor or affiliate thereof as designated by the Secretary of
the Treasury, in consultation with the Secretary of State;
(iii) A foreign person determined by the Secretary of the Treasury,
in consultation with the Secretary of State, to be engaged in
fundraising or recruitment activities for Hizballah; or
(iv) A foreign person owned or controlled by a person described in
paragraph (a)(6)(i), (ii), or (iii) of this section;
(7) Agencies or instrumentalities of a foreign state determined by
the Secretary of the Treasury, in consultation with the Secretary of
State, to have, on or after October 25, 2018, knowingly:
(i) Conducted significant joint combat operations with, or
significantly supported combat operations of, Hizballah; or
(ii) Provided significant financial support for or to, or
significant arms or related materiel to, Hizballah;
(8) Foreign persons included on a list provided to Congress under
paragraph (b) of Section 3 of the Sanctioning the Use of Civilians as
Defenseless Shields Act of 2018 (Pub. L. 115-348) (Shields Act) because
they have been determined by the Secretary of the Treasury, in
consultation with the Secretary of State, on or after December 21,
2018:
(i) To be a member of Hizballah or to be knowingly acting on behalf
of Hizballah; and
(ii) To knowingly order, control, or otherwise direct the use of
civilians protected as such by the law of war to shield military
objectives from attack;
(9) Foreign persons included on a list provided to Congress under
paragraph (b) of Section 3 of the Shields Act because they have been
determined by the Secretary of the Treasury, in consultation with the
Secretary of State, on or after December 21, 2018:
(i) To be a member of HAMAS or to be knowingly acting on behalf of
Hamas; and
(ii) To knowingly order, control, or otherwise direct the use of
civilians protected as such by the law of war to shield military
objectives from attack;
(10) Foreign persons, agencies, or instrumentalities of a foreign
state, included on a list provided to Congress under paragraph (b) of
Section 3 of the Shields Act because they have been determined by the
Secretary of the Treasury, in consultation with the Secretary of State,
on or after December 21, 2018, to knowingly and materially support,
order, control, direct, or otherwise engage in:
(i) Any act described in paragraph (a)(8)(ii) of this section by a
person described in paragraph (a)(8) of this section; or
(ii) Any act described in paragraph (a)(9)(ii) of this section by a
person described in paragraph (a)(9) of this section; or
(11) Foreign persons included on a list provided to Congress under
paragraph (c) of Section 3 of the Shields Act because they have been
determined by the Secretary of the Treasury, in consultation with the
Secretary of State, on or after December 21, 2018, to knowingly order,
control, or otherwise direct the use of civilians protected as such by
the law of war to shield military objectives from attack, and with
respect to which the Secretary of the Treasury, in consultation with
the Secretary of State, has exercised the authority to block all
property and interests in property.
* * * * *
(c) The prohibitions in paragraph (a) of this section do not apply
to the importation of any goods that would otherwise be prohibited
solely due to the interest of a person whose property and interests in
property are blocked solely pursuant to paragraph (a)(6) or (7) of this
section. For the purposes of this paragraph (c), the term ``goods''
means any articles, natural or manmade substance, material, supply or
manufactured product, including inspection and test equipment, and
excluding technical data.
* * * * *
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16. Add Sec. 594.207 to read as follows:
Sec. 594.207 Exempt transactions.
The prohibitions contained in Sec. 594.201(a)(6) and (7) do not
apply to the following activities:
(a) Any authorized intelligence, law enforcement, or national
security activities of the United States; or
(b) Any transaction necessary to comply with United States
obligations under the Agreement between the United Nations and the
United States of America regarding the Headquarters of the United
States, signed at Lake Success June 26, 1947, and entered into force
November 21, 1947, or the Convention on Consular Relations, done at
Vienna April 24, 1963, and entered into force March 19, 1967, or any
other United States international agreement.
Subpart C--Definitions
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17. Add Sec. 594.318 to read as follows:
[[Page 35313]]
Sec. 594.318 Agency or instrumentality of a foreign state.
The term agency or instrumentality of a foreign state has the
meaning given that term in section 1603(b) of title 28, United States
Code.
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18. Add Sec. 594.319 to read as follows:
Sec. 594.319 HAMAS.
The term HAMAS means:
(a) The entity known as HAMAS and designated by the Secretary of
State as a foreign terrorist organization pursuant to section 219 of
the Immigration and Nationality Act (8 U.S.C. 1189); or
(b) Any person:
(1) The property and interests in property of which are blocked
pursuant to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.); and
(2) Who is identified on the Specially Designated Nationals and
Blocked Persons List (SDN List) maintained by OFAC as an agent,
instrumentality, or affiliate of HAMAS.
Note 1 to Sec. 594.319: The SDN List is accessible through the
following page on OFAC's website: www.treasury.gov/sdn. Additional
information pertaining to the SDN List can be found in appendix A to
this chapter. Persons on the SDN List based on conduct described in
Sec. 594.201(a)(9), (10), (11) are identified by a special
reference at the end of their entries on the SDN List--``[SHIELD-
ACT]''--in addition to the reference to the regulatory part of this
chapter pursuant to which their property and interests in property
are blocked. For example, a person whose property and interests in
property are blocked pursuant to the Global Terrorism Sanctions
Regulations, Sec. 594.201(a)(9), (10), or (11), and identified on
the SDN List will have the program tag ``[SDGT]'' and ``[SHIELD-
ACT].''
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19. Add Sec. 594.320 to read as follows:
Sec. 594.320 Hizballah.
The term Hizballah means:
(a) The entity known as Hizballah and designated by the Secretary
of State as a foreign terrorist organization pursuant to section 219 of
the Immigration and Nationality Act (8 U.S.C. 1189); or
(b) Any person:
(1) The property and interests in property of which are blocked
pursuant to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.); and
(2) Who is identified on the Specially Designated Nationals and
Blocked Persons List (SDN List) maintained by OFAC as an agent,
instrumentality, or affiliate of Hizballah.
Note 1 to Sec. 594.320: The SDN List is accessible through the
following page on OFAC's website: www.treasury.gov/sdn. Additional
information pertaining to the SDN List can be found in appendix A to
this chapter. Persons on the SDN List based on conduct described in
Sec. 594.201(a)(8), (10), and (11) are identified by a special
reference at the end of their entries on the SDN List--``[SHIELD-
ACT]''--in addition to the reference to the regulatory part of this
chapter pursuant to which their property and interests in property
are blocked. For example, a person whose property and interests in
property are blocked pursuant to the Global Terrorism Sanctions
Regulations, Sec. 594.201(a)(8), (10), or (11), and identified on
the SDN List will have the program tag ``[SDGT]'' and ``[SHIELD-
ACT]''. Persons on the SDN List based on conduct described in Sec.
594.201(a)(6) and (7) are identified by a special reference at the
end of their entries on the SDN List--``[HIFPAA]''--in addition to
the reference to the regulatory part of this chapter pursuant to
which their property and interests in property are blocked. For
example, a person whose property and interests in property are
blocked pursuant to the Global Terrorism Sanctions Regulations,
Sec. 594.201(a)(6) or (7), and identified on the SDN List will have
the program tag ``[SDGT]'' and ``[HIFPAA]''.
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20. Add Sec. 594.321 to read as follows:
Sec. 594.321 Knowingly.
The term knowingly, with respect to conduct, a circumstance, or a
result, means that a person has actual knowledge, or should have known,
of the conduct, the circumstance, or the result.
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21. Add Sec. 594.322 to read as follows:
Sec. 594.322 Arms or related materiel.
The term arms or related materiel means:
(a) Nuclear, biological, chemical, or radiological weapons or
materials or components of such weapons;
(b) Ballistic or cruise missile weapons or materials or components
of such weapons; or
(c) Destabilizing numbers and types of advanced conventional
weapons.
Dated: July 18, 2019.
Bradley Smith,
Deputy Director, Office of Foreign Assets Control.
[FR Doc. 2019-15600 Filed 7-22-19; 8:45 am]
BILLING CODE 4810-AL-P