[Federal Register Volume 86, Number 225 (Friday, November 26, 2021)]
[Rules and Regulations]
[Pages 67324-67325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25802]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 542


Syrian 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 adopting a final rule amending the Syrian Sanctions 
Regulations to expand an existing authorization related to certain 
activities of nongovernmental organizations (NGOs) in Syria.

DATES: This rule is effective November 26, 2021.

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.

Background

    On April 5, 2005, OFAC issued the Syrian Sanctions Regulations, 31 
CFR part 542 (70 FR 17201, April 5, 2005) (``the Regulations''), to 
implement Executive Order (E.O.) 13338 of May 11, 2004, ``Blocking 
Property of Certain Persons and Prohibiting the Export of Certain Goods 
to Syria'' (69 FR 26751, May 13, 2004). OFAC thereafter amended the 
Regulations on May 2, 2014 (79 FR 25414, May 2, 2014) to implement six 
additional Executive orders related to Syria.
    OFAC, in consultation with the State Department, is amending the 
Regulations to expand the existing general license at Sec.  542.516 to 
authorize NGOs to engage in certain assistance-related investment 
activities in support of certain not-for-profit activities in Syria, 
including (i) new investment in Syria that would be prohibited by Sec.  
542.206; (ii) additional dealings with a limited subset of the 
Government of Syria as defined in Sec.  542.305(a) that would be 
prohibited by Sec.  542.201(a)(1); and (iii) the purchase of refined 
petroleum products of Syrian origin that would be prohibited by Sec.  
542.209. Consistent with the Caesar Syria Civilian Protection Act of 
2019 (Pub. L. 116-92, Div. F, Title LXXIV, 133 Stat. 2290, 22 U.S.C. 
8791 note) (``the Caesar Act''), Section 7425(b), OFAC is also amending 
the general license at Sec.  542.516 to reflect that it does not apply 
to any foreign person that has been designated as a foreign terrorist 
organization under section 219 of the Immigration and Nationality Act 
(8 U.S.C. 1189), or otherwise designated as a terrorist organization by 
the Secretary of State, in consultation with or upon the request of the 
Attorney General or the Secretary of Homeland Security. Finally, OFAC 
is adding the Caesar Act to the authority citation of 31 CFR part 542.

Public Participation

    Because the amendment of the Regulations involves a foreign affairs 
function, the provisions of E.O. 12866 of September 30, 1993, 
``Regulatory Planning and Review'' (58 FR 51735, October 4, 1993), and 
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. 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 542

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Credit, Exports, Foreign trade, Investments, Nongovernmental 
organizations, Penalties, Petroleum, Reporting and recordkeeping 
requirements, Sanctions, Security, Services, Syria.

    For the reasons set forth in the preamble, OFAC amends 31 CFR part 
542 as follows:

PART 542--SYRIAN SANCTIONS REGULATIONS

0
1. The authority citation for part 542 is revised to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2332d; 22 
U.S.C. 287c; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 
Stat. 890, as amended (28 U.S.C. 2461 note); Pub. L. 116-92, Div. F, 
Title LXXIV, 133 Stat. 2290 (22 U.S.C. 8791 note); E.O. 13338, 69 FR 
26751, 3 CFR, 2004 Comp., p. 168; E.O. 13399, 71 FR 25059, 3 CFR, 
2006 Comp., p. 218; E.O. 13460, 73 FR 8991, 3 CFR 2008 Comp., p. 
181; E.O. 13572, 76 FR 24787, 3 CFR 2011 Comp., p. 236; E.O. 13573, 
76 FR 29143, 3 CFR 2011 Comp., p. 241; E.O. 13582, 76 FR 52209, 3 
CFR 2011 Comp., p. 264; E.O. 13606, 77 FR 24571, 3 CFR 2012 Comp., 
p. 243.


0
2. Amend Sec.  542.516 as follows:

[[Page 67325]]

0
a. Remove paragraph (d).
0
b. Redesignate paragraphs (a), (b), and (c) as paragraphs (b), (c), and 
(d), respectively.
0
c. Add new paragraph (a).
0
d. Revise newly redesignated paragraph (b) introductory text.
0
e. In newly redesignated paragraph (c):
0
i. Remove the text ``, except as authorized by paragraph (d) of this 
section,'';
0
ii. Remove the text ``the Government of Syria or any other'' and add in 
its place ``any''; and
0
iii. Add ``other than persons who meet the definition of the term 
Government of Syria, as defined in Sec.  542.305(a)'' after ``Sec.  
542.201(a)''.
0
f. Revise newly redesignated paragraph (d) and paragraph (e).
0
g. Add paragraph (f).
    The additions and revisions read as follows:


Sec.  542.516   Certain services in support of nongovernmental 
organizations' activities authorized.

    (a) Nongovernmental organizations are authorized to engage in the 
following transactions and activities in support of the not-for-profit 
activities described in paragraph (b) of this section:
    (1) Transactions with persons who meet the definition of the term 
Government of Syria, as defined in Sec.  542.305(a), that would be 
prohibited by Sec.  542.201(a)(1);
    (2) New investment in Syria that would be prohibited by Sec.  
542.206;
    (3) The exportation or reexportation of services to Syria that 
would be prohibited by Sec.  542.207; and
    (4) The purchase of refined petroleum products of Syrian origin for 
use in Syria that would be prohibited by Sec.  542.209.
    (b) The not-for-profit activities referenced in paragraph (a) of 
this section are:
* * * * *
    (d) U.S. persons engaging in transactions or processing transfers 
of funds to or from Syria in support of activities described in 
paragraph (b)(5) of this section are required to file quarterly reports 
no later than 30 days following the end of the calendar quarter with 
OFAC. The reports should include complete information on all activities 
and transactions undertaken pursuant to paragraphs (a) and (c) of this 
section in support of the activities described in paragraph (b)(5) of 
this section that took place during the reporting period, including the 
parties involved, the value of the transactions, the services provided, 
and the dates of the transactions. The reports should be submitted via 
email to [email protected] or via U.S. mail to the Office of 
Foreign Assets Control, Licensing Division, U.S. Treasury Department, 
1500 Pennsylvania Avenue NW, Freedman's Bank Building, Washington, DC 
20220.
    (e) This section does not authorize:
    (1) Any transactions or activities involving any person whose 
property and interests in property are blocked pursuant to Sec.  
542.201(a), other than persons who meet the definition of the term 
Government of Syria, as defined in Sec.  542.305(a);
    (2) The importation into the United States of petroleum or 
petroleum products of Syrian origin prohibited by Sec.  542.208; or
    (3) Any transactions or dealings in or related to petroleum or 
petroleum products of Syrian origin prohibited by Sec.  542.209, except 
as authorized in paragraph (a) of this section.
    (f) Nothing in this section authorizes nongovernmental 
organizations to undertake any transaction or dealing that involves any 
foreign person that has been designated as a foreign terrorist 
organization under section 219 of the Immigration and Nationality Act 
(8 U.S.C. 1189), or otherwise designated as a terrorist organization, 
by the Secretary of State, in consultation with or upon the request of 
the Attorney General or the Secretary of Homeland Security.
* * * * *

    Dated: November 22, 2021.
Bradley T. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2021-25802 Filed 11-24-21; 8:45 am]
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