[Federal Register Volume 85, Number 191 (Thursday, October 1, 2020)]
[Rules and Regulations]
[Pages 61823-61825]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21734]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 544 and 560


Weapons of Mass Destruction Proliferators Sanctions Regulations 
and Iranian Transactions and 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 Weapons of Mass Destruction 
Proliferators Sanctions Regulations (WMD Regulations) to update a note 
to describe how persons designated pursuant to the WMD Regulations for 
North Korea-related activities are identified on OFAC's Specially 
Designated Nationals and Blocked Persons List (SDN List). Specifically, 
OFAC is amending the note to explain that SDN List entries for these 
designated persons will include additional information regarding 
certain risks associated with dealings with such persons. Separately, 
OFAC is amending the Iranian Transactions and Sanctions Regulations to 
refine the list of organizations whose activities are authorized under 
the general license for the official business of certain international 
organizations, and to make a technical correction. OFAC is also making 
technical edits to the authority citations in both sets of regulations 
to conform to Federal Register guidance.

DATES: This rule is effective October 1, 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

Weapons of Mass Destruction Proliferators Sanctions Regulations

    On April 13, 2009, OFAC issued the Weapons of Mass Destruction 
Proliferators Sanctions Regulations, 31 CFR part 544 (74 FR 16771, 
April 13, 2009) (``WMD Regulations''), to implement Executive Order 
13382 of

[[Page 61824]]

June 28, 2005 (``Blocking Property of Weapons of Mass Destruction 
Proliferators and Their Supporters'') (E.O. 13382). Note 1 to paragraph 
(a) of Sec.  544.201 of the WMD Regulations states that the names of 
persons listed in or designated pursuant to E.O. 13382 will be 
incorporated into OFAC's SDN List with the identifier ``[NPWMD].'' OFAC 
is amending this note to add text to explain that certain persons who 
are incorporated into OFAC's SDN List pursuant to Sec.  544.201(a) of 
the WMD Regulations for engaging in North Korea-related WMD activities 
will have additional information in their SDN List entries about 
relevant provisions under the North Korea Sanctions Regulations, 31 CFR 
part 510 (NKSR). Specifically, engaging in certain transactions with 
persons blocked pursuant to Sec.  544.201(a) in connection with North 
Korea-related WMD activities may result in the imposition of secondary 
sanctions, and therefore such blocked persons' entries on the SDN List 
will also include the descriptive prefix text ``Secondary sanctions 
risk:'', followed by information about the applicable secondary 
sanctions authority. Additionally, pursuant to Sec.  510.214 of the 
NKSR, persons owned or controlled by a U.S. financial institution are 
subject to certain prohibitions under the NKSR; as a result, the 
entries of certain persons blocked pursuant to Sec.  544.201(a) of the 
WMD Regulations in connection with North-Korea related activities will 
also include the descriptive prefix text ``Transactions Prohibited For 
Persons Owned or Controlled By U.S. Financial Institutions:'', followed 
by information about the applicable sanctions authority. Additionally, 
OFAC is amending the authority citation of the WMD Regulations to 
shorten citations to conform to Federal Register guidance.

Iranian Transactions and Sanctions Regulations

    On October 22, 2012, OFAC published a final rule in the Federal 
Register reissuing the Iranian Transactions and Sanctions Regulations, 
31 CFR part 560 in their entirety (77 FR 64664, October 22, 2012) 
(``ITSR''). Since then, OFAC has amended the ITSR on several occasions. 
This rule amends the general license at Sec.  560.539 of the ITSR, 
which authorizes transactions for the conduct of the official business 
of several international organizations. OFAC is amending the list of 
organizations whose activities are authorized under the general license 
to include the United Nations' Specialized Agencies, Programmes, Funds, 
and Related Organizations, as well as to refer to the World Bank as the 
``World Bank Group.'' OFAC is also correcting a sequencing error of two 
identically numbered paragraphs in the ITSR, at Sec.  560.701(a)(3), by 
redesignating the second occurrence of Sec.  560.701(a)(3) as Sec.  
560.701(a)(4), and modifying a cross-reference accordingly. Finally, 
OFAC is amending the authority citation in the ITSR to shorten 
citations to conform to Federal Register guidance.

Public Participation

    Because the amendment of the WMD Regulations and the ITSR involves 
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 WMD Regulations and 
the ITSR 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

31 CFR Part 544

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Foreign trade, Penalties, Proliferation, Reporting and 
recordkeeping requirements, Sanctions, Securities, Services, Weapons of 
mass destruction.

31 CFR Part 560

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Credit, Foreign trade, Iran, Penalties, Reporting and 
recordkeeping requirements, Sanctions, Securities, Services.

    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR parts 544 and 
560 as follows:

PART 544--WEAPONS OF MASS DESTRUCTION PROLIFERATORS SANCTIONS 
REGULATIONS

0
1. The authority citation for part 544 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); 
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 
FR 40803, 3 CFR, 1998 Comp., p. 200; E.O. 13382, 70 FR 38567, 3 CFR, 
2005 Comp., p. 170.

Subpart B--Prohibitions

0
2. Revise Note 1 to paragraph (a) of Sec.  544.201 to read as follows:


Sec.  544.201  Prohibited transactions involving blocked property.

    (a) * * *

    Note 1 to paragraph (a):  The names of persons listed in or 
designated pursuant to Executive Order 13382, whose property and 
interests in property therefore are blocked pursuant to paragraph 
(a) of this section, are published in the Federal Register and 
incorporated into the Office of Foreign Assets Control's (OFAC) 
Specially Designated Nationals and Blocked Persons List (``SDN 
List'') with the identifier ``[NPWMD].'' Certain transactions with 
persons blocked pursuant to E.O. 13382 for activities involving 
North Korea or for activities involving persons designated pursuant 
to a North Korea sanctions authority may result in the imposition of 
secondary sanctions, and therefore such blocked persons' entries on 
the SDN List will include the descriptive prefix text ``Secondary 
sanctions risk:'', followed by information about the applicable 
secondary sanctions authority. Pursuant to 31 CFR 510.214 (the North 
Korea Sanctions Regulations (NKSR)), persons owned or controlled by 
a U.S. financial institution are subject to certain prohibitions 
under the NKSR; as a result, the entries of persons blocked pursuant 
to E.O. 13382 in connection with North Korea-related activities will 
also include the descriptive prefix text ``Transactions Prohibited 
For Persons Owned or Controlled By U.S. Financial Institutions:'', 
followed by information about the applicable sanctions authority. 
The SDN List is accessible through the following page on OFAC's 
website: http://www.treasury.gov/sdn. Additional information 
pertaining to the SDN List can be found in appendix A to this 
chapter. See Sec.  544.411 concerning entities that may not be 
listed on the SDN List but whose property and interests in property 
are nevertheless blocked pursuant to paragraph (a) of this section.

* * * * *

PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS

0
3. The authority citation for part 560 is revised to read as follows:

    Authority:  3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 
2349aa-9; 22 U.S.C. 7201-

[[Page 61825]]

7211; 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); 22 U.S.C. 8501-8551; 22 
U.S.C. 8513a; 22 U.S.C. 8701-8795; E.O. 12613, 52 FR 41940, 3 CFR, 
1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 
332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 
62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3 
CFR, 2012 Comp., p. 215; E.O. 13846, 83 FR 38939, 3 CFR, 2018 Comp., 
p. 854.


Sec.  560.215  [Amended]

0
4. In Sec.  560.215:
0
a. Remove ``Note to paragraph (a) of Sec.  560.215'' and add ``Note 1 
to paragraph (a)'' in its place.
0
b. Remove ``Note to paragraph (b) of Sec.  560.215'' and add ``Note 2 
to paragraph (b)'' in its place.
0
c. Remove ``Note to paragraph (c) of Sec.  560.215'' and add ``Note 3 
to paragraph (c)'' in its place.
0
d. Remove ``Note to Sec.  560.215'' and add ``Note 4 to Sec.  560.215'' 
in its place.
0
e. In newly designated note 4, remove ``Sec.  560.701(a)(3) of this 
part'' and add in its place ``Sec.  560.701(a)(4)''.

0
5. Amend Sec.  560.539 as follows:
0
a. In paragraph (a) introductory text, remove ``United Nations,'' and 
add ``United Nations and its Specialized Agencies, Programmes, Funds, 
and Related Organizations, including'' in its place and add ``Group'' 
after ``the World Bank''.
0
b. Add Note 1 to paragraph (a).
    The addition reads as follows:


Sec.  560.539  Official activities of certain international 
organizations.

    (a) * * *

    Note 1 to paragraph (a):  For an organizational chart listing 
the Specialized Agencies, Programmes, Funds, and Related 
Organizations of the United Nations, see the following page on the 
United Nations website: http://www.unsceb.org/directory.

* * * * *


Sec.  560.701  [Amended]

0
6. Amend Sec.  560.701 by redesignating the second occurrence of 
paragraph (a)(3) as paragraph (a)(4).

    Dated: September 28, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020-21734 Filed 9-30-20; 8:45 am]
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