[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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