[Federal Register Volume 86, Number 68 (Monday, April 12, 2021)]
[Rules and Regulations]
[Pages 18895-18896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07427]


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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 a technical amendment 
to the 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 a technical change to 
this definition to ensure the applicable schedule amount values 
continue to correspond appropriately to OFAC's CMPs.

DATES: This rule is effective April 12, 2021.

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) (the FCPIA Act), OFAC has adjusted its CMPs six 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); an additional initial 
catch-up adjustment related to CMPs for failure to comply with a 
requirement to furnish information, the late filing of a required 
report, and failure to maintain records (``recordkeeping CMPs'') that 
were inadvertently omitted from the August 1, 2016 initial catch-up 
adjustment on October 5, 2020 (85 FR 54911, September 3, 2020); 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, on 
August 11, 2020, OFAC issued a final rule 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 to correspond with OFAC's recent CMP 
adjustments required by the FCPIA Act (85 FR 48474, August 11, 2020).
    By a separate rule, OFAC has published its annual adjustment of 
CMPs pursuant to the FCPIA Act for 2021. Related to that action, today 
OFAC is again amending the definition of ``applicable schedule amount'' 
in section I.B. of appendix A to 31 CFR part 501 to adjust the 
applicable schedule amount value for transactions valued at $200,000 or 
more to correspond with OFAC's recent CMP adjustments. Specifically, 
OFAC is amending section I.B.7. such that in the case of transactions 
valued at $200,000 or more, the applicable schedule amount is now 
$311,562, 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). This change is not required pursuant to the FCPIA 
Act; however, OFAC is making this change to ensure the applicable 
schedule amount value continues to correspond appropriately to OFAC's 
CMPs as the CMPs are adjusted pursuant to the FCPIA annually.

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 of September 30, 1993, ``Regulatory 
Planning and Review'' (58 FR 51735, October 4, 1993). 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:

[[Page 18896]]

PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS

0
1. The authority citation for part 501 continues 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, 2370(a), 6009, 6032, 
7205, 8501-8551; Pub. L. 101-410, 104 Stat. 890, as amended (28 
U.S.C. 2461 note); 31 U.S.C. 321(b); 50 U.S.C. 1701-1706, 4301-4341.

Appendix A to Part 501 [Amended]

0
2. In section I.B. 7. of appendix A to part 501, remove ``$307,922'' 
and add in its place ``$311,562''.

Bradley T. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2021-07427 Filed 4-9-21; 8:45 am]
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