[Federal Register Volume 87, Number 27 (Wednesday, February 9, 2022)]
[Rules and Regulations]
[Pages 7374-7382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02722]
[[Page 7374]]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 550
Ethiopia 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 adding regulations to implement a September 17, 2021
Ethiopia-related Executive order. OFAC intends to supplement these
regulations with a more comprehensive set of regulations, which may
include additional interpretive guidance and definitions, general
licenses, and other regulatory provisions.
DATES: This rule is effective February 9, 2022.
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 September 17, 2021, the President, invoking the authority of,
inter alia, the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.) (IEEPA), issued Executive Order (E.O.) 14046 of September
17, 2021, ``Imposing Sanctions on Certain Persons With Respect to the
Humanitarian and Human Rights Crisis in Ethiopia'' (86 FR 52389,
September 21, 2021).
In E.O. 14046, the President found that the situation in and in
relation to northern Ethiopia, which has been marked by activities that
threaten the peace, security, and stability of Ethiopia and the greater
Horn of Africa region--in particular, widespread violence, atrocities,
and serious human rights abuse, including those involving ethnic-based
violence, rape and other forms of gender-based violence, and
obstruction of humanitarian operations--constitutes an unusual and
extraordinary threat to the national security and foreign policy of the
United States and declared a national emergency to deal with that
threat.
OFAC is issuing the Ethiopia Sanctions Regulations, 31 CFR part 550
(the ``Regulations''), to implement E.O. 14046, pursuant to authorities
delegated to the Secretary of the Treasury in E.O. 14046. A copy of
E.O. 14046 appears in appendix A to this part.
Additionally, OFAC is incorporating three general licenses that
were previously issued on OFAC's website into the Regulations. Sections
550.510 through 550.512 incorporate General Licenses 1, 2, and 3, which
authorize, respectively: Official business of certain international
organizations and entities; certain transactions in support of
nongovernmental organizations' activities; and transactions related to
the exportation or reexportation of agricultural commodities, medicine,
medical devices, replacement parts and components, or software updates.
General Licenses 1, 2, and 3 were each issued on September 17, 2021 on
OFAC's website, and each will be removed from OFAC's website upon
publication of this rule.
The Regulations are being published in abbreviated form at this
time for the purpose of providing immediate guidance to the public.
OFAC intends to supplement this part 550 with a more comprehensive set
of regulations, which may include additional interpretive guidance and
definitions, general licenses, and other regulatory provisions. The
appendix to the Regulations will be removed when OFAC supplements this
part with a more comprehensive set of regulations.
Public Participation
Because the Regulations involve 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 550
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Eritrea, Ethiopia, Foreign trade, Penalties, Prohibitions on
certain credit, investments, loans, purchases, or other transactions,
Reporting and recordkeeping requirements, Sanctions, Services.
0
For the reasons set forth in the preamble, OFAC adds part 550 to 31 CFR
chapter V to read as follows:
PART 550--ETHIOPIA SANCTIONS REGULATIONS
Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
550.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
550.201 Prohibited transactions.
550.202 Effect of transfers violating the provisions of this part.
550.203 Holding of funds in interest-bearing accounts; investment
and reinvestment.
550.204 Expenses of maintaining blocked tangible property;
liquidation of blocked property.
550.205 Exempt transactions.
Subpart C--General Definitions
550.300 Applicability of definitions.
550.301 Blocked account; blocked property.
550.302 Effective date.
550.303 Entity.
550.304 Financial, material, or technological support.
550.305 [Reserved]
550.306 Government of Eritrea
550.307 Government of Ethiopia
550.308 Interest.
550.309 Licenses; general and specific.
550.310 OFAC.
550.311 Person.
550.312 Property; property interest.
550.313 Sanctioned person.
550.314 Transfer.
550.315 United States.
550.316 United States person; U.S. person.
550.317 U.S. financial institution.
Subpart D--Interpretations
550.401 [Reserved]
550.402 Effect of amendment.
550.403 Termination and acquisition of an interest in blocked
property.
550.404 Transactions ordinarily incident to a licensed transaction.
550.405 Setoffs prohibited.
550.406 Status of entities owned by one or more persons whose
property and interests in property are blocked.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
550.501 General and specific licensing procedures.
[[Page 7375]]
550.502 [Reserved]
550.503 Exclusion from licenses.
550.504 Payments and transfers to blocked accounts in U.S. financial
institutions.
550.505 Entries in certain accounts for normal service charges.
550.506 Provision of certain legal services.
550.507 Payments for legal services from funds originating outside
the United States.
550.508 Emergency medical services.
550.509 Official business of the United States Government.
550.510 Official business of certain international organizations and
entities.
550.511 Certain transactions in support of nongovernmental
organizations' activities.
550.512 Transactions related to the exportation or reexportation of
agricultural commodities, medicine, medical devices, replacement
parts and components, or software updates.
Subpart F--Reports
550.601 Records and reports.
Subpart G--Penalties and Findings of Violation
550.701 Penalties and Findings of Violation.
Subpart H--Procedures
550.801 Procedures.
550.802 Delegation of certain authorities of the Secretary of the
Treasury.
Subpart I--Paperwork Reduction Act
550.901 Paperwork Reduction Act notice.
Appendix A to Part 550--Executive Order 14046 of September 17, 2021
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, as amended (28 U.S.C.
2461 note); E.O. 14046, 86 FR 52389, September 21, 2021.
Subpart A--Relation of This Part to Other Laws and Regulations
Sec. 550.101 Relation of this part to other laws and regulations.
This part is separate from, and independent of, the other parts of
this chapter, with the exception of part 501, the recordkeeping and
reporting requirements and license application and other procedures of
which apply to this part. Actions taken pursuant to part 501 of this
chapter with respect to the prohibitions contained in this part are
considered actions taken pursuant to this part. Differing foreign
policy and national security circumstances may result in differing
interpretations of similar language among the parts of this chapter. No
license or authorization contained in or issued pursuant to those other
parts authorizes any transaction prohibited by this part. No license or
authorization contained in or issued pursuant to any other provision of
law or regulation authorizes any transaction prohibited by this part.
No license or authorization contained in or issued pursuant to this
part relieves the involved parties from complying with any other
applicable laws or regulations.
Note 1 to Sec. 550.101. This part has been published in
abbreviated form for the purpose of providing immediate guidance to
the public. OFAC intends to supplement this part with a more
comprehensive set of regulations, which may include additional
interpretive guidance and definitions, general licenses, and other
regulatory provisions.
Subpart B--Prohibitions
Sec. 550.201 Prohibited transactions.
(a) All transactions prohibited pursuant to Executive Order (E.O.)
14046 of September 17, 2021 are prohibited pursuant to this part.
(b) All transactions prohibited pursuant to any further Executive
orders issued pursuant to the national emergency declared in E.O. 14046
are prohibited pursuant to this part.
Note 1 to Sec. 550.201. The names of persons whose property
and interests in property are blocked pursuant to this section are
published in the Federal Register and incorporated into OFAC's
Specially Designated Nationals and Blocked Persons List (SDN List)
using the following identifier formulation: ``[ETHIOPIA-E.O.[E.O.
number pursuant to which the person's property and interests in
property are blocked]].'' The SDN List is accessible through the
following page on OFAC's website: www.treasury.gov/sdn. Additional
information pertaining to the SDN List can be found in appendix A to
this chapter. See Sec. 550.406(a) concerning the status of property
and interests in property of an entity that is directly or
indirectly owned, whether individually or in the aggregate, by one
or more persons whose property and interests in property are blocked
pursuant to Sec. 550.201(a).
Note 2 to Sec. 550.201. The International Emergency Economic
Powers Act (50 U.S.C. 1701-1706), in Section 203 (50 U.S.C. 1702),
authorizes the blocking of property and interests in property of a
person during the pendency of an investigation. The names of persons
whose property and interests in property are blocked pending
investigation pursuant to this section also are published in the
Federal Register and incorporated into the SDN List using the
following identifier formulation: ``[BPI-ETHIOPIA-E.O.[E.O. number
pursuant to which the person's property and interests in property
are blocked pending investigation]].''
Note 3 to Sec. 550.201. Sections 501.806 and 501.807 of this
chapter describe the procedures to be followed by persons seeking,
respectively, the unblocking of funds that they believe were blocked
due to mistaken identity, or administrative reconsideration of their
status as persons whose property and interests in property are
blocked pursuant to this section.
Note 4 to Sec. 550.201. The names of persons on whom non-
blocking sanctions implemented by the Department of the Treasury are
imposed pursuant to this section are incorporated into a data file
containing OFAC's Consolidated Non-SDN data and are provided in a
human readable format on OFAC's Non-SDN Menu-Based Sanctions List
(NS-MBS List) on the following page on OFAC's website:
www.treasury.gov/consolidated-sanctions-list-non-sdn-lists. These
listings are published in the Federal Register and include specific
information on the non-blocking sanctions imposed on such persons.
However, for any persons on whom blocking and non-blocking sanctions
are imposed pursuant to this section, such persons' names are
instead incorporated into OFAC's SDN List using the identifier
``[ETHIOPIA-E.O.[E.O. number pursuant to which the person's property
and interests in property are blocked]].''
Note 5 to Sec. 550.201. Section 501.807 of this chapter
describes the procedures to be followed by persons seeking
administrative reconsideration of their inclusion on the NS-MBS List
for the imposition of non-blocking sanctions pursuant to this
section.
Sec. 550.202 Effect of transfers violating the provisions of this
part.
(a) Any transfer after the effective date that is in violation of
any provision of this part or of any regulation, order, directive,
ruling, instruction, or license issued pursuant to this part, and that
involves any property or interest in property blocked pursuant to Sec.
550.201, is null and void and shall not be the basis for the assertion
or recognition of any interest in or right, remedy, power, or privilege
with respect to such property or interest in property.
(b) No transfer before the effective date shall be the basis for
the assertion or recognition of any right, remedy, power, or privilege
with respect to, or any interest in, any property or interest in
property blocked pursuant to Sec. 550.201, unless the person who holds
or maintains such property, prior to that date, had written notice of
the transfer or by any written evidence had recognized such transfer.
(c) Unless otherwise provided, a license or other authorization
issued by OFAC before, during, or after a transfer shall validate such
transfer or make it enforceable to the same extent that it would be
valid or enforceable but for the provisions of this part and any
regulation, order, directive, ruling, instruction, or license issued
pursuant to this part.
(d) Transfers of property that otherwise would be null and void or
unenforceable by virtue of the provisions of this section shall not be
deemed to be null and void or unenforceable as to any person with
[[Page 7376]]
whom such property is or was held or maintained (and as to such person
only) in cases in which such person is able to establish to the
satisfaction of OFAC each of the following:
(1) Such transfer did not represent a willful violation of the
provisions of this part by the person with whom such property is or was
held or maintained (and as to such person only);
(2) The person with whom such property is or was held or maintained
did not have reasonable cause to know or suspect, in view of all the
facts and circumstances known or available to such person, that such
transfer required a license or authorization issued pursuant to this
part and was not so licensed or authorized, or, if a license or
authorization did purport to cover the transfer, that such license or
authorization had been obtained by misrepresentation of a third party
or withholding of material facts or was otherwise fraudulently
obtained; and
(3) The person with whom such property is or was held or maintained
filed with OFAC a report setting forth in full the circumstances
relating to such transfer promptly upon discovery that:
(i) Such transfer was in violation of the provisions of this part
or any regulation, ruling, instruction, license, or other directive or
authorization issued pursuant to this part;
(ii) Such transfer was not licensed or authorized by OFAC; or
(iii) If a license did purport to cover the transfer, such license
had been obtained by misrepresentation of a third party or withholding
of material facts or was otherwise fraudulently obtained.
(e) The filing of a report in accordance with the provisions of
paragraph (d)(3) of this section shall not be deemed evidence that the
terms of paragraphs (d)(1) and (2) of this section have been satisfied.
(f) Unless licensed pursuant to this part, any attachment,
judgment, decree, lien, execution, garnishment, or other judicial
process is null and void with respect to any property or interest in
property blocked pursuant to Sec. 550.201.
Sec. 550.203 Holding of funds in interest-bearing accounts;
investment and reinvestment.
(a) Except as provided in paragraph (e) or (f) of this section, or
as otherwise directed or authorized by OFAC, any U.S. person holding
funds, such as currency, bank deposits, or liquidated financial
obligations, blocked pursuant to Sec. 550.201 shall hold or place such
funds in a blocked interest-bearing account located in the United
States.
(b)(1) For the purposes of this section, the term blocked interest-
bearing account means a blocked account:
(i) In a federally insured U.S. bank, thrift institution, or credit
union, provided the funds are earning interest at rates that are
commercially reasonable; or
(ii) With a broker or dealer registered with the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.), provided the funds are invested in a money market
fund or in U.S. Treasury bills.
(2) Funds held or placed in a blocked account pursuant to paragraph
(a) of this section may not be invested in instruments the maturity of
which exceeds 180 days.
(c) For the purposes of this section, a rate is commercially
reasonable if it is the rate currently offered to other depositors on
deposits or instruments of comparable size and maturity.
(d) For the purposes of this section, if interest is credited to a
separate blocked account or subaccount, the name of the account party
on each account must be the same.
(e) Blocked funds held in instruments the maturity of which exceeds
180 days at the time the funds become blocked pursuant to Sec. 550.201
may continue to be held until maturity in the original instrument,
provided any interest, earnings, or other proceeds derived therefrom
are paid into a blocked interest-bearing account in accordance with
paragraph (a) or (f) of this section.
(f) Blocked funds held in accounts or instruments outside the
United States at the time the funds become blocked pursuant to Sec.
550.201 may continue to be held in the same type of accounts or
instruments, provided the funds earn interest at rates that are
commercially reasonable.
(g) This section does not create an affirmative obligation for the
holder of blocked tangible property, such as real or personal property,
or of other blocked property, such as debt or equity securities, to
sell or liquidate such property. However, OFAC may issue licenses
permitting or directing such sales or liquidation in appropriate cases.
(h) Funds blocked pursuant to Sec. 550.201 may not be held,
invested, or reinvested in a manner that provides financial or economic
benefit or access to any person whose property and interests in
property are blocked pursuant to Sec. 550.201, nor may their holder
cooperate in or facilitate the pledging or other attempted use as
collateral of blocked funds or other assets.
Sec. 550.204 Expenses of maintaining blocked tangible property;
liquidation of blocked property.
(a) Except as otherwise authorized, and notwithstanding the
existence of any rights or obligations conferred or imposed by any
international agreement or contract entered into or any license or
permit granted prior to the effective date, all expenses incident to
the maintenance of tangible property blocked pursuant to Sec. 550.201
shall be the responsibility of the owners or operators of such
property, which expenses shall not be met from blocked funds.
(b) Property blocked pursuant to Sec. 550.201 may, in the
discretion of OFAC, be sold or liquidated and the net proceeds placed
in a blocked interest-bearing account in the name of the owner of the
property.
Sec. 550.205 Exempt transactions.
(a) Personal communications. The prohibitions contained in this
part do not apply to any postal, telegraphic, telephonic, or other
personal communication that does not involve the transfer of anything
of value.
(b) Official business. The prohibitions contained in Sec.
550.201(a) do not apply to any transactions for the conduct of the
official business of the United States Government by employees,
grantees, or contractors thereof.
Subpart C--General Definitions
Sec. 550.300 Applicability of definitions.
The definitions in this subpart apply throughout the entire part.
Sec. 550.301 Blocked account; blocked property.
The terms blocked account and blocked property mean any account or
property subject to the prohibitions in Sec. 550.201 held in the name
of a person whose property and interests in property are blocked
pursuant to Sec. 550.201, or in which such person has an interest, and
with respect to which payments, transfers, exportations, withdrawals,
or other dealings may not be made or effected except pursuant to a
license or other authorization from OFAC expressly authorizing such
action.
Note 1 to Sec. 550.301. See Sec. 550.406 concerning the
status of property and interests in property of an entity that is
directly or indirectly owned, whether individually or in the
aggregate, by one or more persons whose property and interests in
property are blocked pursuant to Sec. 550.201.
Sec. 550.302 Effective date.
(a) The term effective date refers to the effective date of the
applicable
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prohibitions and directives contained in this part, and with respect to
a person whose property and interests in property are blocked pursuant
to Sec. 550.201 or on whom other sanctions are imposed, the earlier of
the date of actual or constructive notice that such person's property
and interests in property are blocked or that other sanctions are
imposed on such person.
(b) For the purposes of this section, constructive notice is the
date that a notice of the blocking of the relevant person's property
and interests in property or imposition of other sanctions is published
in the Federal Register.
Sec. 550.303 Entity.
The term entity means a partnership, association, trust, joint
venture, corporation, group, subgroup, or other organization.
Sec. 550.304 Financial, material, or technological support.
The term financial, material, or technological support means any
property, tangible or intangible, including currency, financial
instruments, securities, or any other transmission of value; weapons or
related materiel; chemical or biological agents; explosives; false
documentation or identification; communications equipment; computers;
electronic or other devices or equipment; technologies; lodging; safe
houses; facilities; vehicles or other means of transportation; or
goods. ``Technologies'' as used in this section means specific
information necessary for the development, production, or use of a
product, including related technical data such as blueprints, plans,
diagrams, models, formulae, tables, engineering designs and
specifications, manuals, or other recorded instructions.
Sec. 550.305 [Reserved]
Sec. 550.306 Government of Eritrea.
The term Government of Eritrea means the Government of Eritrea, any
political subdivision, agency, or instrumentality thereof, including
the Bank of Eritrea, and any person owned, controlled, or directed by,
or acting for or on behalf of, the Government of Eritrea.
Sec. 550.307 Government of Ethiopia.
The term Government of Ethiopia means the Government of Ethiopia,
any political subdivision, agency, or instrumentality thereof,
including the National Bank of Ethiopia, and any person owned,
controlled, or directed by, or acting for or on behalf of, the
Government of Ethiopia.
Sec. 550.308 Interest.
Except as otherwise provided in this part, the term interest, when
used with respect to property (e.g., ``an interest in property''),
means an interest of any nature whatsoever, direct or indirect.
Sec. 550.309 Licenses; general and specific.
(a) Except as otherwise provided in this part, the term license
means any license or authorization contained in or issued pursuant to
this part.
(b) The term general license means any license or authorization the
terms of which are set forth in subpart E of this part or made
available on OFAC's website: www.treasury.gov/ofac.
(c) The term specific license means any license or authorization
issued pursuant to this part but not set forth in subpart E of this
part or made available on OFAC's website: www.treasury.gov/ofac.
Note 1 to Sec. 550.309. See Sec. 501.801 of this chapter on
licensing procedures.
Sec. 550.310 OFAC.
The term OFAC means the Department of the Treasury's Office of
Foreign Assets Control.
Sec. 550.311 Person.
The term person means an individual or entity.
Sec. 550.312 Property; property interest.
The terms property and property interest include money, checks,
drafts, bullion, bank deposits, savings accounts, debts, indebtedness,
obligations, notes, guarantees, debentures, stocks, bonds, coupons, any
other financial instruments, bankers acceptances, mortgages, pledges,
liens or other rights in the nature of security, warehouse receipts,
bills of lading, trust receipts, bills of sale, any other evidences of
title, ownership, or indebtedness, letters of credit and any documents
relating to any rights or obligations thereunder, powers of attorney,
goods, wares, merchandise, chattels, stocks on hand, ships, goods on
ships, real estate mortgages, deeds of trust, vendors' sales
agreements, land contracts, leaseholds, ground rents, real estate and
any other interest therein, options, negotiable instruments, trade
acceptances, royalties, book accounts, accounts payable, judgments,
patents, trademarks or copyrights, insurance policies, safe deposit
boxes and their contents, annuities, pooling agreements, services of
any nature whatsoever, contracts of any nature whatsoever, and any
other property, real, personal, or mixed, tangible or intangible, or
interest or interests therein, present, future, or contingent.
Sec. 550.313 Sanctioned person.
The term sanctioned person means a foreign person that the
Secretary of the Treasury, in consultation with the Secretary of State,
has determined meets any of the criteria described in section 1 of E.O.
14046 and has selected, in consultation with the Secretary of State,
one or more of the sanctions set forth in section 2(a) of E.O. 14046 to
impose on that foreign person.
Sec. 550.314 Transfer.
The term transfer means any actual or purported act or transaction,
whether or not evidenced by writing, and whether or not done or
performed within the United States, the purpose, intent, or effect of
which is to create, surrender, release, convey, transfer, or alter,
directly or indirectly, any right, remedy, power, privilege, or
interest with respect to any property. Without limitation on the
foregoing, it shall include the making, execution, or delivery of any
assignment, power, conveyance, check, declaration, deed, deed of trust,
power of attorney, power of appointment, bill of sale, mortgage,
receipt, agreement, contract, certificate, gift, sale, affidavit, or
statement; the making of any payment; the setting off of any obligation
or credit; the appointment of any agent, trustee, or fiduciary; the
creation or transfer of any lien; the issuance, docketing, filing, or
levy of or under any judgment, decree, attachment, injunction,
execution, or other judicial or administrative process or order, or the
service of any garnishment; the acquisition of any interest of any
nature whatsoever by reason of a judgment or decree of any foreign
country; the fulfillment of any condition; the exercise of any power of
appointment, power of attorney, or other power; or the acquisition,
disposition, transportation, importation, exportation, or withdrawal of
any security.
Sec. 550.315 United States.
The term United States means the United States, its territories and
possessions, and all areas under the jurisdiction or authority thereof.
Sec. 550.316 United States person; U.S. person.
The term United States person or U.S. person means any United
States citizen, lawful permanent resident, entity organized under the
laws of the United States or any jurisdiction within the United States
(including foreign branches), or any person in the United States.
[[Page 7378]]
Sec. 550.317 U.S. financial institution.
The term U.S. financial institution means any U.S. entity
(including its foreign branches) that is engaged in the business of
accepting deposits, making, granting, transferring, holding, or
brokering loans or credits, or purchasing or selling foreign exchange,
securities, futures or options, or procuring purchasers and sellers
thereof, as principal or agent. It includes depository institutions,
banks, savings banks, money services businesses, trust companies,
insurance companies, securities brokers and dealers, futures and
options brokers and dealers, forward contract and foreign exchange
merchants, securities and commodities exchanges, clearing corporations,
investment companies, employee benefit plans, dealers in precious
metals, stones, or jewels, and U.S. holding companies, U.S. affiliates,
or U.S. subsidiaries of any of the foregoing. This term includes those
branches, offices, and agencies of foreign financial institutions that
are located in the United States, but not such institutions' foreign
branches, offices, or agencies.
Subpart D--Interpretations
Sec. 550.401 [Reserved]
Sec. 550.402 Effect of amendment.
Unless otherwise specifically provided, any amendment,
modification, or revocation of any provision in or appendix to this
part or chapter or of any order, regulation, ruling, instruction, or
license issued by OFAC does not affect any act done or omitted, or any
civil or criminal proceeding commenced or pending, prior to such
amendment, modification, or revocation. All penalties, forfeitures, and
liabilities under any such order, regulation, ruling, instruction, or
license continue and may be enforced as if such amendment,
modification, or revocation had not been made.
Sec. 550.403 Termination and acquisition of an interest in blocked
property.
(a) Whenever a transaction licensed or authorized by or pursuant to
this part results in the transfer of property (including any property
interest) away from a person whose property and interests in property
are blocked pursuant to Sec. 550.201, such property shall no longer be
deemed to be property blocked pursuant to Sec. 550.201, unless there
exists in the property another interest that is blocked pursuant to
Sec. 550.201, the transfer of which has not been effected pursuant to
license or other authorization.
(b) Unless otherwise specifically provided in a license or
authorization issued pursuant to this part, if property (including any
property interest) is transferred or attempted to be transferred to a
person whose property and interests in property are blocked pursuant to
Sec. 550.201, such property shall be deemed to be property in which
such person has an interest and therefore blocked.
Sec. 550.404 Transactions ordinarily incident to a licensed
transaction.
Any transaction ordinarily incident to a licensed transaction and
necessary to give effect thereto is also authorized, except:
(a) An ordinarily incident transaction, not explicitly authorized
within the terms of the license, by or with a person whose property and
interests in property are blocked pursuant to Sec. 550.201; or
(b) An ordinarily incident transaction, not explicitly authorized
within the terms of the license, involving a debit to a blocked account
or a transfer of blocked property.
Sec. 550.405 Setoffs prohibited.
A setoff against blocked property (including a blocked account),
whether by a U.S. financial institution or other U.S. person, is a
prohibited transfer under Sec. 550.201 if effected after the effective
date.
Sec. 550.406 Status of entities owned by one or more persons whose
property and interests in property are blocked.
(a) No entity shall be blocked pursuant to Sec. 550.201(a) solely
because it is owned in whole or in part, directly or indirectly, by one
or more sanctioned persons, unless the entity is itself a sanctioned
person and the sanctions in section 2(a)(i)(A) of E.O. 14046 are
imposed on the entity.
(b) Unless otherwise stated in the relevant Executive order,
persons whose property and interests in property are blocked pursuant
to Sec. 550.201(b) have an interest in all property and interests in
property of an entity in which such persons directly or indirectly own,
whether individually or in the aggregate, a 50 percent or greater
interest. The property and interests in property of such an entity,
therefore, are blocked, and such an entity is a person whose property
and interests in property are blocked pursuant to Sec. 550.201(b),
regardless of whether the name of the entity is incorporated into
OFAC's Specially Designated Nationals and Blocked Persons List (SDN
List).
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
Sec. 550.501 General and specific licensing procedures.
For provisions relating to licensing procedures, see part 501,
subpart E, of this chapter. Licensing actions taken pursuant to part
501 of this chapter with respect to the prohibitions contained in this
part are considered actions taken pursuant to this part. General
licenses and statements of licensing policy relating to this part also
may be available through the Ethiopia sanctions page on OFAC's website:
www.treasury.gov/ofac.
Sec. 550.502 [Reserved]
Sec. 550.503 Exclusion from licenses.
OFAC reserves the right to exclude any person, property,
transaction, or class thereof from the operation of any license or from
the privileges conferred by any license. OFAC also reserves the right
to restrict the applicability of any license to particular persons,
property, transactions, or classes thereof. Such actions are binding
upon actual or constructive notice of the exclusions or restrictions.
Sec. 550.504 Payments and transfers to blocked accounts in U.S.
financial institutions.
Any payment of funds or transfer of credit in which a person whose
property and interests in property are blocked pursuant to Sec.
550.201 has any interest that comes within the possession or control of
a U.S. financial institution must be blocked in an account on the books
of that financial institution. A transfer of funds or credit by a U.S.
financial institution between blocked accounts in its branches or
offices is authorized, provided that no transfer is made from an
account within the United States to an account held outside the United
States, and further provided that a transfer from a blocked account may
be made only to another blocked account held in the same name.
Note 1 to Sec. 550.504. See Sec. 501.603 of this chapter for
mandatory reporting requirements regarding financial transfers. See
also Sec. 550.203 concerning the obligation to hold blocked funds
in interest-bearing accounts.
Sec. 550.505 Entries in certain accounts for normal service charges.
(a) A U.S. financial institution is authorized to debit any blocked
account held at that financial institution in payment or reimbursement
for normal service charges owed it by the owner of that blocked
account.
[[Page 7379]]
(b) As used in this section, the term normal service charges shall
include charges in payment or reimbursement for interest due; cable,
telegraph, internet, or telephone charges; postage costs; custody fees;
small adjustment charges to correct bookkeeping errors; and, but not by
way of limitation, minimum balance charges, notary and protest fees,
and charges for reference books, photocopies, credit reports,
transcripts of statements, registered mail, insurance, stationery and
supplies, and other similar items.
Sec. 550.506 Provision of certain legal services.
(a) The provision of the following legal services to or on behalf
of persons whose property and interests in property are blocked
pursuant to Sec. 550.201 is authorized, provided that any receipt of
payment of professional fees and reimbursement of incurred expenses
must be authorized pursuant to Sec. 550.507, which authorizes certain
payments for legal services from funds originating outside the United
States; via specific license; or otherwise pursuant to this part:
(1) Provision of legal advice and counseling on the requirements of
and compliance with the laws of the United States or any jurisdiction
within the United States, provided that such advice and counseling are
not provided to facilitate transactions in violation of this part;
(2) Representation of persons named as defendants in or otherwise
made parties to legal, arbitration, or administrative proceedings
before any U.S. federal, state, or local court or agency;
(3) Initiation and conduct of legal, arbitration, or administrative
proceedings before any U.S. federal, state, or local court or agency;
(4) Representation of persons before any U.S. federal, state, or
local court or agency with respect to the imposition, administration,
or enforcement of U.S. sanctions against such persons; and
(5) Provision of legal services in any other context in which
prevailing U.S. law requires access to legal counsel at public expense.
(b) The provision of any other legal services to or on behalf of
persons whose property and interests in property are blocked pursuant
to Sec. 550.201, not otherwise authorized in this part, requires the
issuance of a specific license.
(c) U.S. persons do not need to obtain specific authorization to
provide related services, such as making filings and providing other
administrative services, that are ordinarily incident to the provision
of services authorized by this section. Additionally, U.S. persons who
provide services authorized by this section do not need to obtain
specific authorization to contract for related services that are
ordinarily incident to the provision of those legal services, such as
those provided by private investigators or expert witnesses, or to pay
for such services. See Sec. 550.404.
(d) Entry into a settlement agreement or the enforcement of any
lien, judgment, arbitral award, decree, or other order through
execution, garnishment, or other judicial process purporting to
transfer or otherwise alter or affect property or interests in property
blocked pursuant to Sec. 550.201 is prohibited unless licensed
pursuant to this part.
Note 1 to Sec. 550.506. Pursuant to part 501, subpart E, of
this chapter, U.S. persons seeking administrative reconsideration or
judicial review of their designation or the blocking of their
property and interests in property may apply for a specific license
from OFAC to authorize the release of certain blocked funds for the
payment of professional fees and reimbursement of incurred expenses
for the provision of such legal services where alternative funding
sources are not available.
Sec. 550.507 Payments for legal services from funds originating
outside the United States.
(a) Professional fees and incurred expenses. (1) Receipt of payment
of professional fees and reimbursement of incurred expenses for the
provision of legal services authorized pursuant to Sec. 550.506(a) to
or on behalf of any person whose property and interests in property are
blocked pursuant to Sec. 550.201 is authorized from funds originating
outside the United States, provided that the funds do not originate
from:
(i) A source within the United States;
(ii) Any source, wherever located, within the possession or control
of a U.S. person; or
(iii) Any individual or entity, other than the person on whose
behalf the legal services authorized pursuant to Sec. 550.506(a) are
to be provided, whose property and interests in property are blocked
pursuant to any part of this chapter or any Executive order or statute.
(2) Nothing in this paragraph (a) authorizes payments for legal
services using funds in which any other person whose property and
interests in property are blocked pursuant to Sec. 550.201, any other
part of this chapter, or any Executive order or statute has an
interest.
(b) Reports. (1) U.S. persons who receive payments pursuant to
paragraph (a) of this section must submit annual reports no later than
30 days following the end of the calendar year during which the
payments were received providing information on the funds received.
Such reports shall specify:
(i) The individual or entity from whom the funds originated and the
amount of funds received; and
(ii) If applicable:
(A) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(B) A general description of the services provided; and
(C) The amount of funds paid in connection with such services.
(2) The reports, which must reference this section, are to be
submitted to OFAC using one of the following methods:
(i) Email (preferred method): [email protected]; or
(ii) U.S. mail: OFAC Regulations Reports, Office of Foreign Assets
Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW,
Freedman's Bank Building, Washington, DC 20220.
Sec. 550.508 Emergency medical services.
The provision and receipt of nonscheduled emergency medical
services that are prohibited by this part are authorized.
Sec. 550.509 Official business of the United States Government.
All transactions prohibited by this part that are for the conduct
of the official business of the United States Government by employees,
grantees, or contractors thereof are authorized.
Sec. 550.510 Official business of certain international organizations
and entities.
All transactions prohibited by this part that are for the conduct
of the official business of the following entities by employees,
grantees, or contractors thereof are authorized:
(a) The United Nations, including its Programmes, Funds, and Other
Entities and Bodies, as well as its Specialized Agencies and Related
Organizations;
(b) The International Centre for Settlement of Investment Disputes
(ICSID) and the Multilateral Investment Guarantee Agency (MIGA);
(c) The African Development Bank Group, the Asian Development Bank,
the European Bank for Reconstruction and Development, and the Inter-
American Development Bank Group (IDB Group), including any fund entity
administered or established by any of the foregoing;
[[Page 7380]]
(d) The International Committee of the Red Cross and the
International Federation of Red Cross and Red Crescent Societies; and
(e) The African Union, including the African Union Commission and
other subsidiary bodies and organs.
Sec. 550.511 Certain transactions in support of nongovernmental
organizations' activities.
All transactions prohibited by this part that are ordinarily
incident and necessary to the following activities by nongovernmental
organizations are authorized, including the processing and transfer of
funds; payment of taxes, fees, and import duties; and purchase or
receipt of permits, licenses, or public utility services:
(a) Activities to support humanitarian projects to meet basic human
needs in Ethiopia or Eritrea, including drought and flood relief; food,
nutrition, and medicine distribution; the provision of health services;
assistance for vulnerable or displaced populations, including
individuals with disabilities, the elderly, and survivors of sexual-
and gender-based violence; and environmental programs;
(b) Activities to support democracy building in Ethiopia or
Eritrea, including activities to support rule of law, citizen
participation, government accountability and transparency, human rights
and fundamental freedoms, access to information, and civil society
development projects;
(c) Activities to support education in Ethiopia or Eritrea,
including combating illiteracy, increasing access to education,
international exchanges, and assisting education reform projects;
(d) Activities to support non-commercial development projects in
Ethiopia or Eritrea directly benefitting the people of such countries,
including related to health, food security, and water and sanitation;
and
(e) Activities to support environmental and natural resource
protection in Ethiopia or Eritrea, including the preservation and
protection of threatened or endangered species, responsible and
transparent management of natural resources, and the remediation of
pollution or other environmental damage.
Sec. 550.512 Transactions related to the exportation or reexportation
of agricultural commodities, medicine, medical devices, replacement
parts and components, or software updates.
(a) All transactions prohibited by this part that are ordinarily
incident and necessary to the exportation or reexportation of
agricultural commodities, medicine, medical devices, replacement parts
and components for medical devices, or software updates for medical
devices to Ethiopia or Eritrea, or to persons in third countries
purchasing specifically for resale to Ethiopia or Eritrea, are
authorized.
(b) For the purposes of this section, agricultural commodities,
medicine, and medical devices are defined as follows:
(1) Agricultural commodities. For the purposes of this section,
agricultural commodities are:
(i) Products that fall within the term ``agricultural commodity''
as defined in section 102 of the Agricultural Trade Act of 1978 (7
U.S.C. 5602); and
(ii) That are intended for ultimate use in Ethiopia or Eritrea as:
(A) Food for humans (including raw, processed, and packaged foods;
live animals; vitamins and minerals; food additives or supplements; and
bottled drinking water) or animals (including animal feeds);
(B) Seeds for food crops;
(C) Fertilizers or organic fertilizers; or
(D) Reproductive materials (such as live animals, fertilized eggs,
embryos, and semen) for the production of food animals.
(2) Medicine. For the purposes of this section, medicine is an item
that falls within the definition of the term ``drug'' in section 201 of
the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321).
(3) Medical devices. For the purposes of this this section, a
medical device is an item that falls within the definition of
``device'' in section 201 of the Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 321).
Note 1 to Sec. 550.512. Nothing in this section relieves any
person from compliance with the requirements of other Federal
agencies, including the Department of Commerce's Bureau of Industry
and Security.
Subpart F--Reports
Sec. 550.601 Records and reports.
For provisions relating to required records and reports, see part
501, subpart C, of this chapter. Recordkeeping and reporting
requirements imposed by part 501 of this chapter with respect to the
prohibitions contained in this part are considered requirements arising
pursuant to this part.
Subpart G--Penalties and Findings of Violation
Sec. 550.701 Penalties and Findings of Violation.
(a) The penalties available under section 206 of the International
Emergency Economic Powers Act (50 U.S.C. 1701-1706) (IEEPA), as
adjusted annually pursuant to the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461
note) or, in the case of criminal violations, as adjusted pursuant to
18 U.S.C. 3571, are applicable to violations of the provisions of this
part.
(b) OFAC has the authority, pursuant to IEEPA, to issue Pre-Penalty
Notices, Penalty Notices, and Findings of Violation; impose monetary
penalties; engage in settlement discussions and enter into settlements;
refer matters to the United States Department of Justice for
administrative collection; and, in appropriate circumstances, refer
matters to appropriate law enforcement agencies for criminal
investigation and/or prosecution. For more information, see appendix A
to part 501 of this chapter, which provides a general framework for the
enforcement of all economic sanctions programs administered by OFAC,
including enforcement-related definitions, types of responses to
apparent violations, general factors affecting administrative actions,
civil penalties for failure to comply with a requirement to furnish
information or keep records, and other general civil penalties
information.
Subpart H--Procedures
Sec. 550.801 Procedures.
For license application procedures and procedures relating to
amendments, modifications, or revocations of licenses; administrative
decisions; rulemaking; and requests for documents pursuant to the
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see
part 501, subpart E, of this chapter.
Sec. 550.802 Delegation of certain authorities of the Secretary of
the Treasury.
Any action that the Secretary of the Treasury is authorized to take
pursuant to Executive Order 14046 of September 17, 2021, and any
further Executive orders issued pursuant to the national emergency
declared therein, may be taken by the Director of OFAC or by any other
person to whom the Secretary of the Treasury has delegated authority so
to act.
Subpart I--Paperwork Reduction Act
Sec. 550.901 Paperwork Reduction Act notice.
For approval by the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3507) of information
collections relating to recordkeeping and reporting requirements,
licensing procedures, and other procedures, see
[[Page 7381]]
Sec. 501.901 of this chapter. An agency may not conduct or sponsor,
and a person is not required to respond to, a collection of information
unless it displays a valid control number assigned by OMB.
Appendix A to Part 550--Executive Order 14046 of September 17, 2021
Executive Order 14046 of September 17, 2021, Imposing Sanctions on
Certain Persons With Respect to the Humanitarian and Human Rights
Crisis in Ethiopia
By the authority vested in me as President by the Constitution
and the laws of the United States of America, including the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)
(IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.)
(NEA), sections 212(f) and 215(a) of the Immigration and Nationality
Act of 1952 (8 U.S.C. 1182(f) and 1185(a)), and section 301 of title
3, United States Code,
I, JOSEPH R. BIDEN JR., President of the United States of
America, find that the situation in and in relation to northern
Ethiopia, which has been marked by activities that threaten the
peace, security, and stability of Ethiopia and the greater Horn of
Africa region--in particular, widespread violence, atrocities, and
serious human rights abuse, including those involving ethnic-based
violence, rape and other forms of gender-based violence, and
obstruction of humanitarian operations--constitutes an unusual and
extraordinary threat to the national security and foreign policy of
the United States. I hereby declare a national emergency to deal
with that threat.
The widespread humanitarian crisis precipitated by the violent
conflict in northern Ethiopia has left millions of people in need of
humanitarian assistance and has placed an entire region on the brink
of famine. While maintaining pressure on those persons responsible
for the crisis, the United States will seek to ensure that
appropriate personal remittances to non-blocked persons and
humanitarian assistance to at-risk populations can flow to Ethiopia
and the greater Horn of Africa region through legitimate and
transparent channels, including governments, international
organizations, and non-profit organizations. The United States
supports ongoing international efforts to promote a negotiated
ceasefire and political resolution of this crisis, to ensure the
withdrawal of Eritrean forces from Ethiopia, and to promote the
unity, territorial integrity, and stability of Ethiopia.
Accordingly, I hereby order:
Section 1. The Secretary of the Treasury is authorized to impose
any of the sanctions described in section 2(a) of this order on any
foreign person determined by the Secretary of the Treasury, in
consultation with the Secretary of State:
(a) To be responsible for or complicit in, or to have directly
or indirectly engaged or attempted to engage in, any of the
following:
(i) Actions or policies that threaten the peace, security, or
stability of Ethiopia, or that have the purpose or effect of
expanding or extending the crisis in northern Ethiopia or
obstructing a ceasefire or a peace process;
(ii) corruption or serious human rights abuse in or with respect
to northern Ethiopia;
(iii) the obstruction of the delivery or distribution of, or
access to, humanitarian assistance in or with respect to northern
Ethiopia, including attacks on humanitarian aid personnel or
humanitarian projects;
(iv) the targeting of civilians through the commission of acts
of violence in or with respect to northern Ethiopia, including
involving abduction, forced displacement, or attacks on schools,
hospitals, religious sites, or locations where civilians are seeking
refuge, or any conduct that would constitute a violation of
international humanitarian law;
(v) planning, directing, or committing attacks in or with
respect to northern Ethiopia against United Nations or associated
personnel or African Union or associated personnel;
(vi) actions or policies that undermine democratic processes or
institutions in Ethiopia; or
(vii) actions or policies that undermine the territorial
integrity of Ethiopia;
(b) to be a military or security force that operates or has
operated in northern Ethiopia on or after November 1, 2020;
(c) to be an entity, including any government entity or a
political party, that has engaged in, or whose members have engaged
in, activities that have contributed to the crisis in northern
Ethiopia or have obstructed a ceasefire or peace process to resolve
such crisis;
(d) to be a political subdivision, agency, or instrumentality of
the Government of Ethiopia, the Government of Eritrea or its ruling
People's Front for Democracy and Justice, the Tigray People's
Liberation Front, the Amhara regional government, or the Amhara
regional or irregular forces;
(e) to be a spouse or adult child of any sanctioned person;
(f) to be or have been a leader, official, senior executive
officer, or member of the board of directors of any of the
following, where the leader, official, senior executive officer, or
director is responsible for or complicit in, or who has directly or
indirectly engaged or attempted to engage in, any activity
contributing to the crisis in northern Ethiopia:
(i) An entity, including a government entity or a military or
security force, operating in northern Ethiopia during the tenure of
the leader, official, senior executive officer, or director;
(ii) an entity that has, or whose members have, engaged in any
activity contributing to the crisis in northern Ethiopia or
obstructing a ceasefire or a peace process to resolve such crisis
during the tenure of the leader, official, senior executive officer,
or director; or
(iii) the Government of Ethiopia, the Government of Eritrea or
its ruling People's Front for Democracy and Justice, the Tigray
People's Liberation Front, the Amhara regional government, or the
Amhara regional or irregular forces, on or after November 1, 2020;
(g) to have materially assisted, sponsored, or provided
financial, material, or technological support for, or goods or
services to or in support of, any sanctioned person; or
(h) to be owned or controlled by, or to have acted or purported
to act for or on behalf of, directly or indirectly, any sanctioned
person.
Sec. 2. (a) When the Secretary of the Treasury, in consultation
with the Secretary of State, has determined that a foreign person
meets any of the criteria described in section 1(a)-(h) of this
order, the Secretary of the Treasury is authorized to select, in
consultation with the Secretary of State, one or more of the
sanctions set forth in subsections (a)(i)(A)-(E) or (a)(ii)(A)-(B)
of this section to impose on that foreign person:
(i) The Secretary of the Treasury shall take the following
actions as necessary to implement the selected sanctions:
(A) Block all property and interests in property of the
sanctioned person that are in the United States, that hereafter come
within the United States, or that are or hereafter come within the
possession or control of any United States person, and provide that
such property and interests in property may not be transferred,
paid, exported, withdrawn, or otherwise dealt in;
(B) prohibit any United States person from investing in or
purchasing significant amounts of equity or debt instruments of the
sanctioned person;
(C) prohibit any United States financial institution from making
loans or providing credit to the sanctioned person;
(D) prohibit any transactions in foreign exchange that are
subject to the jurisdiction of the United States and in which the
sanctioned person has any interest; or
(E) impose on the leader, official, senior executive officer, or
director of the sanctioned person, or on persons performing similar
functions and with similar authorities as such leader, official,
senior executive officer, or director, any of the sanctions
described in subsections (a)(i)(A)-(D) of this section that are
applicable.
(ii) the heads of the relevant executive departments and
agencies, in consultation with the Secretary of the Treasury, shall
take the following actions as necessary and appropriate to implement
the sanctions selected by the Secretary of the Treasury:
(A) Actions required to deny any specific license, grant, or any
other specific permission or authority under any statute or
regulation that requires the prior review and approval of the United
States Government as a condition for the export or reexport of goods
or technology to the sanctioned person; or
(B) actions required to deny a visa to and exclude from the
United States any noncitizen whom the Secretary of the Treasury, in
consultation with the Secretary of State, determines is a leader,
official, senior executive officer, or director, or a shareholder
with a controlling interest in, the sanctioned person.
(b) The prohibitions in subsection (a) of this section apply
except to the extent provided by statutes, or in regulations,
orders, directives, or licenses that may be issued pursuant to this
order, and notwithstanding any contract entered into or any license
or permit granted before the date of this order. No entity shall be
blocked
[[Page 7382]]
pursuant to this order solely because it is owned in whole or in
part, directly or indirectly, by one or more sanctioned persons,
unless the entity is itself a sanctioned person and the sanctions in
section 2(a)(i)(A) of this order are imposed on the entity.
Sec. 3. The prohibitions in section 2(a) of this order include:
(a) The making of any contribution or provision of funds, goods,
or services by, to, or for the benefit of any person whose property
and interests in property are blocked pursuant to this order; and
(b) the receipt of any contribution or provision of funds,
goods, or services from any such person.
Sec. 4. (a) The unrestricted immigrant and nonimmigrant entry
into the United States of noncitizens determined to meet one or more
of the criteria in section l of this order, and for whom the
sanctions described in section 2(a)(i)(A) or section 2(a)(ii)(B) of
this order have been selected, would be detrimental to the interests
of the United States, and the entry of such persons into the United
States, as immigrants or nonimmigrants, is hereby suspended, except
when the Secretary of State or the Secretary of Homeland Security,
as appropriate, determines that the person's entry would not be
contrary to the interests of the United States, including when the
Secretary of State or the Secretary of Homeland Security, as
appropriate, so determines, based on a recommendation of the
Attorney General, that the person's entry would further important
United States law enforcement objectives.
(b) The Secretary of State shall implement this order as it
applies to visas pursuant to such procedures as the Secretary of
State, in consultation with the Secretary of Homeland Security, may
establish.
(c) The Secretary of Homeland Security shall implement this
order as it applies to the entry of noncitizens pursuant to such
procedures as the Secretary of Homeland Security, in consultation
with the Secretary of State, may establish.
(d) Such persons shall be treated by this section in the same
manner as persons covered by section 1 of Proclamation 8693 of July
24, 2011 (Suspension of Entry of Aliens Subject to United Nations
Security Council Travel Bans and International Emergency Economic
Powers Act Sanctions).
Sec. 5. (a) Any transaction that evades or avoids, has the
purpose of evading or avoiding, causes a violation of, or attempts
to violate any of the prohibitions set forth in this order is
prohibited.
(b) Any conspiracy formed to violate any of the prohibitions set
forth in this order is prohibited.
Sec. 6. I hereby determine that the making of donations of the
types of articles specified in section 203(b)(2) of IEEPA (50 U.S.C.
1702(b)(2)) by, to, or for the benefit of any person whose property
and interests in property are blocked pursuant to this order would
seriously impair my ability to deal with the national emergency
declared in this order, and I hereby prohibit such donations as
provided by section 2 of this order.
Sec. 7. For the purposes of this order:
(a) The term ``entity'' means a partnership, association, trust,
joint venture, corporation, group, subgroup, or other organization;
(b) the term ``Government of Ethiopia'' means the Government of
Ethiopia, any political subdivision, agency, or instrumentality
thereof, including the National Bank of Ethiopia, and any person
owned, controlled, or directed by, or acting for or on behalf of,
the Government of Ethiopia;
(c) the term ``Government of Eritrea'' means the Government of
Eritrea, any political subdivision, agency, or instrumentality
thereof, including the Bank of Eritrea, and any person owned,
controlled, or directed by, or acting for or on behalf of, the
Government of Eritrea;
(d) the term ``noncitizen'' means any person who is not a
citizen or noncitizen national of the United States;
(e) the term ``person'' means an individual or entity;
(f) the term ``sanctioned person'' means a foreign person that
the Secretary of the Treasury, in consultation with the Secretary of
State, has determined meets any of the criteria described in section
1 of this order and has selected, in consultation with the Secretary
of State, one or more of the sanctions set forth in section 2(a) of
this order to impose on that foreign person; and
(g) the term ``United States person'' means any United States
citizen, lawful permanent resident, entity organized under the laws
of the United States or any jurisdiction within the United States
(including foreign branches), or any person in the United States.
Sec. 8. For those persons whose property and interests in
property are blocked or affected by this order who might have a
constitutional presence in the United States, I find that because of
the ability to transfer funds and other assets instantaneously,
prior notice to such persons of measures to be taken pursuant to
this order would render those measures ineffectual. I therefore
determine that for these measures to be effective in addressing the
national emergency declared in this order, there need be no prior
notice of a listing or determination made pursuant to section 1 of
this order.
Sec. 9. The Secretary of the Treasury, in consultation with the
Secretary of State, is authorized to take such actions, including
the promulgation of rules and regulations, and to employ all powers
granted to the President by IEEPA as may be necessary to carry out
the purposes of this order. The Secretary of the Treasury may,
consistent with applicable law, redelegate any of these functions
within the Department of the Treasury. All executive departments and
agencies of the United States shall take all appropriate measures
within their authority to implement this order.
Sec. 10. Nothing in this order shall prohibit transactions for
the conduct of the official business of the Federal Government by
employees, grantees, and contractors thereof.
Sec. 11. The Secretary of the Treasury, in consultation with the
Secretary of State, is authorized to submit recurring and final
reports to the Congress on the national emergency declared in this
order, consistent with section 401(c) of the NEA (50 U.S.C. 1641(c))
and section 204(c) of IEEPA (50 U.S.C. 1703(c)).
Sec. 12. (a) Nothing in this order shall be construed to impair
or otherwise affect:
(i) The authority granted by law to an executive department or
agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management
and Budget relating to budgetary, administrative, or legislative
proposals.
(b) This order shall be implemented consistent with applicable
law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any
right or benefit, substantive or procedural, enforceable at law or
in equity by any party against the United States, its departments,
agencies, or entities, its officers, employees, or agents, or any
other person.
JOSEPH R. BIDEN JR.
THE WHITE HOUSE,
September 17, 2021.
Andrea M. Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2022-02722 Filed 2-8-22; 8:45 am]
BILLING CODE 4810-AL-P