[Federal Register Volume 85, Number 155 (Tuesday, August 11, 2020)]
[Rules and Regulations]
[Pages 48474-48475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17424]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 501


Adjustment of Applicable Schedule Amount

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 issuing this final rule to make technical amendments 
to the

[[Page 48475]]

definition of ``applicable schedule amount'' in its regulations. In 
recent years, OFAC has adjusted its civil monetary penalties (CMPs) as 
required by the Federal Civil Penalties Inflation Adjustment Act, as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015. While OFAC's ``applicable schedule amount'' 
values are not civil monetary penalties that are required to be 
adjusted pursuant to such statute, OFAC is making technical changes to 
this definition to ensure the applicable schedule amount values 
continue to correspond appropriately to OFAC's CMPs.

DATES: This rule is effective August 11, 2020.

FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for 
Licensing, tel.: 202-622-2480; Assistant Director for Regulatory 
Affairs, tel.: 202-622-4855; or Assistant Director for Sanctions 
Compliance & Evaluation, tel.: 202-622-2490.

SUPPLEMENTARY INFORMATION:

Electronic Availability

    This document and additional information concerning OFAC are 
available on OFAC's website (www.treasury.gov/ofac).

Background

    On September 8, 2008, OFAC issued as an interim final rule the 
``Economic Sanctions Enforcement Guidelines'' (Enforcement Guidelines) 
as appendix A to the Reporting, Procedures and Penalties Regulations at 
31 CFR part 501 (73 FR 51933, September 8, 2008). On November 9, 2009, 
OFAC re-issued as a final rule the Enforcement Guidelines (74 FR 57593, 
November 9, 2009). OFAC's Enforcement Guidelines provide a general 
framework for the enforcement of all economic sanctions programs 
administered by OFAC. Section V.B.2.a.ii. of the Enforcement Guidelines 
states that the base amount of a proposed civil penalty in a Pre-
Penalty Notice shall be the ``applicable schedule amount,'' subject to 
certain caps noted in that section, where the case is deemed non-
egregious and the apparent violation has come to OFAC's attention by 
means other than a voluntary self-disclosure. Section I.B. of the 
Enforcement Guidelines provides a definition of ``applicable schedule 
amount.''
    Separately, as required by the Federal Civil Penalties Inflation 
Adjustment Act (1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 
note), as amended by the Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C. 
2461 note) (collectively, the FCPIA Act), OFAC has adjusted its CMPs 
five times since the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act went into effect on November 2, 2015: An initial 
catch-up adjustment on August 1, 2016 (81 FR 43070, July 1, 2016), and 
annual adjustments on February 10, 2017 (82 FR 10434, February 10, 
2017), March 19, 2018 (83 FR 11876, March 19, 2018), June 14, 2019 (84 
FR 27714, June 14, 2019), and April 9, 2020 (85 FR 19884, April 9, 
2020).
    OFAC's applicable schedule amount values in the Enforcement 
Guidelines, while not required to be adjusted pursuant to the FCPIA 
Act, correspond in certain ways with OFAC's CMPs. As a result, to 
correspond with OFAC's recent CMP adjustments required by the FCPIA 
Act, OFAC is now amending the definition of ``applicable schedule 
amount'' in section I.B. of appendix A to 31 CFR part 501, to adjust 
applicable schedule amount values for transactions valued at $100,000 
or more. Specifically, OFAC is amending sections I.B.6. and I.B.7., 
such that in the case of transactions valued at $100,000 or more but 
less than $200,000, the applicable schedule amount is now $200,000, and 
in the case of transactions valued at $200,000 or more, the applicable 
schedule amount is now $307,922, which corresponds with the current 
maximum CMP amount for a violation of the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1706, at 1705). These changes are 
not required pursuant to the FCPIA; however, OFAC is making these 
changes to ensure the applicable schedule amount values continue to 
correspond appropriately to OFAC's CMPs as the CMPs are adjusted 
pursuant to the FCPIA annually. Additionally, OFAC is amending the 
authorities section of 31 CFR part 501 to shorten citations to conform 
to Federal Register guidance.

Public Participation

    Because this final rule imposes no obligations on any person, but 
only amends OFAC's enforcement policy and procedures based on existing 
substantive rules, provisions of 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. 
Further, this final rule is not a significant regulatory action for 
purposes of Executive Order 12866. Accordingly, 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 Paperwork Reduction Act does not apply because this rule does 
not impose information collection requirements that would require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501 et 
seq.

List of Subjects in 31 CFR Part 501

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.

    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR part 501 as 
follows:

PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS

0
1. The authority citation for part 501 is revised to read as follows:

    Authority:  8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C. 
3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a), 
6009, 6032, 7205; 28 U.S.C. 2461 note; 31 U.S.C. 321(b); 50 U.S.C. 
1701-1706; 50 U.S.C. 4301-4341; 22 U.S.C. 8501-8551.

Appendix A to Part 501 [Amended]

0
2. Amend appendix A to part 501 as follows:
0
a. In section I.B.6., remove ``$170,000'' in both places it appears and 
add in its place ``$200,000'' in both places.
0
b. In section I.B.7., remove ``$250,000'' and add in its place 
``$307,922'', and remove ``$170,000'' and add in its place 
``$200,000''.

    Dated: August 5, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020-17424 Filed 8-10-20; 8:45 am]
BILLING CODE 4810-AL-P