[Federal Register Volume 84, Number 226 (Friday, November 22, 2019)]
[Rules and Regulations]
[Pages 64415-64417]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25343]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 591


Venezuela 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 Venezuela Sanctions Regulations to 
incorporate additional Executive orders, add a general license 
authorizing U.S. Government activities, and add an interpretive 
provision.

DATES: Effective Date: November 22, 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 on OFAC's website (www.treasury.gov/ofac).

[[Page 64416]]

Background

    On July 10, 2015, OFAC issued the Venezuela Sanctions Regulations, 
31 CFR part 591 (the ``Regulations'') (80 FR 39676, July 10, 2015) to 
implement the Venezuela Defense of Human Rights and Civil Society Act 
of 2014 (Pub. L. 113-278) and Executive Order 13692 of March 8, 2015 
(``Blocking Property and Suspending Entry of Certain Persons 
Contributing to the Situation in Venezuela'') (E.O. 13692). The 
Regulations were published in abbreviated form for the purpose of 
providing immediate guidance to the public. Since then, the President 
has issued six additional Executive orders pursuant to the national 
emergency declared in E.O. 13692: Executive Order 13808 of August 24, 
2017 (``Imposing Additional Sanctions With Respect to the Situation in 
Venezuela'') (82 FR 41155, August 29, 2017); Executive Order 13827 of 
March 19, 2018 (``Taking Additional Steps to Address the Situation in 
Venezuela'') (83 FR 12469, March 21, 2018); Executive Order 13835 of 
May 21, 2018 (``Prohibiting Certain Additional Transactions With 
Respect to Venezuela'') (83 FR 24001, May 24, 2018); Executive Order 
13850 of November 1, 2018 (``Blocking Property of Additional Persons 
Contributing to the Situation in Venezuela'') (83 FR 55243, November 2, 
2018); Executive Order 13857 of January 25, 2019 (``Taking Additional 
Steps To Address the National Emergency With Respect to Venezuela'') 
(84 FR 509, January 30, 2019); and Executive Order 13884 of August 5, 
2019 (``Blocking Property of the Government of Venezuela'') (84 FR 
38843, August 7, 2019).
    In subpart B of the Regulations, OFAC is expanding existing Sec.  
591.201 to specify that the prohibitions in that section include all 
transactions prohibited pursuant to E.O. 13692 of March 8, 2015 or any 
further Executive order issued pursuant to the national emergency 
declared in E.O. 13692. In subpart C of the Regulations, OFAC is making 
a technical amendment to the definition of financial, material, or 
technological support at Sec.  591.304 to reflect the changes being 
made to Sec.  591.201.
    OFAC also is incorporating a general license into subpart E that 
was previously posted only on OFAC's website. This general license, 
which is being added as new Sec.  591.509, authorizes the U.S. 
Government to engage in certain activities related to Venezuela. OFAC 
is adding a new interpretative provision at Sec.  591.407 regarding 
settlement agreements and the enforcement of liens, judgments, arbitral 
awards, decrees, or other orders through execution, garnishment, or 
other judicial process. This interpretive provision clarifies that, 
notwithstanding the existence of any general license issued under 31 
CFR part 591, or issued under any Executive order issued pursuant to 
the national emergency declared in E.O. 13692, the 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 Sec.  591.201 is 
prohibited unless authorized pursuant to a specific license issued by 
OFAC. Finally, OFAC is making certain technical and conforming edits.
    OFAC intends to supplement part 591 with a more comprehensive set 
of regulations, which may include additional interpretive and 
definitional guidance and additional general licenses and statements of 
licensing policy.

Public Participation

    Because the Regulations 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 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 591

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Legal services, Penalties, Reporting and recordkeeping 
requirements, Sanctions.

    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR chapter V as 
follows:

PART 591--VENEZUELA SANCTIONS REGULATIONS

0
1. The authority citation for part 591 is revised 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. 113-
278, 128 Stat. 3011 (50 U.S.C. 1701 note); E.O. 13692, 80 FR 12747, 
March 11, 2015, 3 CFR, 2015 Comp., p. 276; E.O. 13808, 82 FR 41155, 
August 29, 2017, 3 CFR, 2017 Comp., p. 377; E.O. 13827, 83 FR 12469, 
March 21, 2018, 3 CFR, 2018 Comp., p. 794; E.O. 13835, 83 FR 24001, 
May 24, 2018, 3 CFR, 2018 Comp., p. 817; E.O. 13850, 83 FR 55243, 
November 2, 2018, 3 CFR, 2018 Comp., p. 881; E.O. 13857, 84 FR 509, 
January 30, 2019; E.O. 13884, 84 FR 38843, August 7, 2019.

Subpart B--Prohibitions

0
2. Revise Sec.  591.201 to read as follows:


Sec.  591.201   Prohibited transactions.

    All transactions prohibited pursuant to Executive Order 13692 of 
March 8, 2015, or any further Executive orders issued pursuant to the 
national emergency declared in Executive Order 13692, are prohibited 
pursuant to this part.

    Note 1 to Sec.  591.201:  The names of persons designated 
pursuant to Executive Order 13692, or pursuant to any further 
Executive orders issued pursuant to the national emergency declared 
in Executive Order 13692, 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 identifier 
formulation ``[VENEZEULA-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.treasury.gov/sdn. Additional information pertaining to the SDN 
List can be found in appendix A to this chapter. See Sec.  591.406 
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 Sec.  591.201:  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 
identifier formulation ``[BPI-VENEZEULA-E.O. [E.O. number pursuant 
to which the person's property and

[[Page 64417]]

interests in property are blocked pending investigation]].''


    Note 3 to Sec.  591.201:  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.

Subpart C--General Definitions


Sec.  591.304   [Amended]

0
3. In Sec.  591.304, remove the text ``, as used in Executive Order 
13692 of March 8, 2015,''.

Subpart D--Interpretations

0
4. Add Sec.  591.407 to read as follows:


Sec.  591.407   Settlement agreements and enforcement of certain orders 
through judicial process.

    Notwithstanding the existence of any general license issued under 
this part, or issued under any Executive order issued pursuant to the 
national emergency declared in E.O. 13692, the 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 Sec.  591.201, as 
referenced in Sec.  591.506(c), is prohibited unless authorized 
pursuant to a specific license issued by OFAC pursuant to this part.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  591.506   [Amended]

0
5. In Sec.  591.506(a), (b), and (c), remove the text ``or any further 
Executive orders relating to the national emergency declared in 
Executive Order 13692 of March 8, 2015.''


Sec.  591.507   [Amended]

0
6. In Sec.  591.507(a) and the note to paragraph (a), remove the text 
``or any further Executive orders relating to the national emergency 
declared in Executive Order 13692 of March 8, 2015.''


Sec.  591.508  [Amended]

0
7. In Sec.  591.508, remove the text ``or any further Executive orders 
relating to the national emergency declared in Executive Order 13692 of 
March 8, 2015.''

0
8. Add Sec.  591.509 to read as follows:


Sec.  591.509   Official business of the United States Government.

    All transactions that are for the conduct of the official business 
of the United States Government by employees, grantees, or contractors 
thereof are authorized.

    Note 1 to Sec.  591.509:  For additional information regarding 
requirements relating to the 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 Sec.  591.201, see 
Sec.  591.407.

Subpart H--Procedures

0
9. Revise Sec.  591.802 to read as follows:


Sec.  591.802  Delegation of certain authorities of the Secretary of 
the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to Executive Order 13692 of March 8, 2015, Executive Order 
13808 of August 24, 2017, Executive Order 13827 of March 19, 2018, 
Executive Order 13835 of May 21, 2018, Executive Order 13850 of 
November 1, 2018, Executive Order 13857 of January 25, 2019, Executive 
Order 13884 of August 5, 2019, and any further Executive orders issued 
pursuant to the national emergency declared in Executive Order 13692 of 
March 8, 2015, 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.

    Dated: November 18, 2019.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2019-25343 Filed 11-21-19; 8:45 am]
 BILLING CODE 4810-AL-P