[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Rules and Regulations]
[Pages 74832-74834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-20674]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 501


Reporting, Procedures and Penalties

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Interim final rule; request for comments.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is issuing this interim final rule to amend the 
Reporting, Procedures and Penalties Regulations (the ``Regulations''), 
extending recordkeeping requirements for certain transactions from five 
to 10 years, consistent with the statute of limitations

[[Page 74833]]

for violations of certain sanctions administered by the Office of 
Foreign Assets Control (OFAC).

DATES: 
    Effective date: This interim final rule is effective March 12, 
2025.
    Comments due date: Written comments may be submitted on or before 
October 15, 2024.

ADDRESSES: You may submit comments via the following methods, 
electronic is preferred:
    Federal eRulemaking Portal: www.regulations.gov. Follow the 
instructions on the website for submitting comments. Refer to Docket 
Number OFAC-2024-0004.
    Mail: Office of Foreign Assets Control, U.S. Department of the 
Treasury, Treasury Annex/Freedman's Bank Building, 1500 Pennsylvania 
Avenue NW, Washington, DC 20220. Refer to Docket Number OFAC-2024-0004.
    Instructions: All submissions received must include the agency name 
and the Federal Register Doc. number that appears at the end of this 
document. All comments, including attachments and other supporting 
materials, will become part of the public record and subject to public 
disclosure. Sensitive personal information, such as account numbers or 
Social Security numbers, should not be included. Comments generally 
will not be edited to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Licensing, 202-
622-2480; Assistant Director for Regulatory Affairs, 202-622-4855; 
Assistant Director for Compliance, 202-622-2490 or https://ofac.treasury.gov/contact-ofac.

SUPPLEMENTARY INFORMATION:

Background

    On April 24, 2024, the President signed into law the 21st Century 
Peace through Strength Act, Public Law 118-50, div. D (the ``Act''). 
Section 3111 of the Act extended from five years to 10 years the 
statute of limitations for civil and criminal violations of the 
International Emergency Economic Powers Act, 50 U.S.C. 1701 et seq. 
(IEEPA), and the Trading with the Enemy Act, 50 U.S.C. 4301 et seq. 
(TWEA). Prior to the Act's enactment, civil enforcement actions brought 
by OFAC under IEEPA or TWEA were subject to the five-year statute of 
limitations set forth in 28 U.S.C. 2462. The new 10-year statute of 
limitations--codified at 50 U.S.C. 1705(d) and 4315(d)--became 
effective upon the President's signature of the Act on April 24, 2024. 
This new 10-year statute of limitations applies to any violation that 
was not time-barred at the time of its enactment. Consequently, OFAC 
may now commence an enforcement action for civil violations of IEEPA- 
or TWEA-based sanctions prohibitions within 10 years of the latest date 
of the violation if such date was after April 24, 2019. As set forth in 
the Act, the commencement of a civil enforcement action includes the 
issuance of a pre-penalty notice or a finding of violation.
    To match the new statute of limitations period, OFAC is publishing 
this interim final rule extending from five years to 10 years the 
recordkeeping requirements codified at 31 CFR 501.601, paragraph IV.B 
of appendix A to part 501, and 515.572. OFAC is soliciting public 
comments for 30 days on this interim final rule.

Electronic Availability

    This document and additional information concerning OFAC are 
available on OFAC's website: https://ofac.treasury.gov.

Public Participation

    Because the amendment of the Regulations is a rule of agency 
procedure and involves a foreign affairs function, the provisions of 
Executive Order 12866 of September 30, 1993, ``Regulatory Planning and 
Review'' (58 FR 51735, October 4, 1993), as amended, 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

    Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), 
the collections of information related to 31 CFR 501.601, paragraph 
IV.B of appendix A to part 501, and 515.572 have been previously 
approved by the Office of Management and Budget (OMB) under control 
number 1505-0164. This final rule modifies the requirements for 
recordkeeping under these sections by increasing the period for 
recordkeeping to 10 years from five years to align with a statutory 
amendment. This modification to this collection of information, as well 
as an unrelated consolidation of certain OFAC information collections, 
will be submitted to OMB for review under control number 1505-0164. 
Written comments and recommendations for the modified collection can be 
submitted by visiting https://www.reginfo.gov/public/do/PRAMain. Find 
this document by selecting ``Currently Under Review--Open for Public 
Comments'' or by using the search function. Comments are welcome and 
must be received by November 13, 2024.
    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. The likely filers and 
record-keepers affected by these collections of information contained 
in 31 CFR part 501 are financial institutions, business organizations, 
nonprofit organizations, individuals, households, non-governmental 
organizations, and legal representatives.
    The burden of the recordkeeping requirement imposed by this rule is 
minimal because the records required to be maintained are likely 
maintained under standard business practice. The recent increase in the 
recordkeeping period to 10 years from five years could impose a 
temporary incremental burden on recordkeepers while they update their 
recordkeeping practices and adjust storage requirements to maintain 
records for a longer period of time. Accordingly, the total burden for 
this collection is estimated to be:
    Estimated Number of Respondents: 2,505,086.
    Frequency of Response: When requested by OFAC.
    Estimated Total Number of Annual Responses: 2,505,086.
    Estimated Time per Response: No additional time to retain records 
for additional time.
    Comments are invited on: (a) Whether the collection of information 
is necessary for the proper performance of the functions of the agency, 
including whether the information has practical utility; (b) the 
accuracy of the agency's estimate of the burden of the collection of 
information; (c) ways to enhance the quality, utility, and clarity of 
the information to be collected; (d) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques or other forms of information 
technology; and (e) estimates of capital or start-up costs and costs of 
operation, maintenance, and purchase of services required to provide 
information.

List of Subjects in 31 CFR Part 501

    Administrative practice and procedure, Banks, Banking, Exports, 
Foreign trade, Licensing and registration, Penalties, Reporting and 
recordkeeping requirements.

    For the reasons set forth in the preamble, OFAC amends 31 CFR parts 
501 and 515 as follows:

[[Page 74834]]

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; 31 U.S.C. 321(b); 50 U.S.C. 1701 et seq., 4301-
4341; Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 
note).

Subpart C--Reports

0
2. Revise and republish Sec.  501.601 to read as follows:


Sec.  501.601  Records and recordkeeping requirements.

    Except as otherwise provided, every person engaging in any 
transaction subject to the provisions of this chapter shall keep a full 
and accurate record of each such transaction engaged in, regardless of 
whether such transaction is effected pursuant to license or otherwise, 
and such record shall be available for examination for at least 10 
years after the date of such transaction. Except as otherwise provided, 
every person holding property blocked pursuant to the provisions of 
this chapter or funds transfers retained pursuant to Sec.  596.504(b) 
of this chapter shall keep a full and accurate record of such property, 
and such record shall be available for examination for the period of 
time that such property is blocked and for at least 10 years after the 
date such property is unblocked.

0
3. Revise paragraph IV.B of appendix A to part 501 to read as follows:

Appendix A to Part 501--Economic Sanctions Enforcement Guidelines

* * * * *

IV. * * *

    B. The late filing of a required report, whether set forth in 
regulations or in a specific license, may result in a civil monetary 
penalty in an amount up to $3,550, if filed within the first 30 days 
after the report is due, and a penalty in an amount up to $7,104 if 
filed more than 30 days after the report is due. If the report 
relates to blocked assets, the penalty may include an additional 
$1,422 for every 30 days that the report is overdue, up to 10 years.
* * * * *

PART 515--CUBAN ASSETS CONTROL REGULATIONS

0
4. The authority citation for part 515 continues to read as follows:

    Authority: 22 U.S.C. 2370(a), 6001-6010, 7201-7211; 31 U.S.C. 
321(b); 50 U.S.C. 4301 et seq.; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); 22 U.S.C. 6021-6091; Pub. L. 105-277, 112 Stat. 
2681; Pub. L. 111-8, 123 Stat. 524; Pub. L. 111-117, 123 Stat. 3034; 
E.O. 9989, 13 FR 4891, 3 CFR, 1943-1948 Comp., p. 748; Proc. 3447, 
27 FR 1085, 3 CFR, 1959-1963 Comp., p. 157; E.O. 12854, 58 FR 36587, 
3 CFR, 1993 Comp., p. 614.


0
5. Revise and republish paragraph (b)(1) of Sec.  515.572 as follows:


Sec.  515.572  Provision of travel, carrier, other transportation-
related, and remittance forwarding services.

* * * * *
    (b) * * *
    (1) Persons subject to U.S. jurisdiction providing services 
authorized pursuant to paragraphs (a)(1) through (4) of this section 
must retain for at least 10 years from the date of the transaction a 
certification from each customer indicating the section of this part 
that authorizes the person to travel or send remittances to Cuba. In 
the case of a customer traveling under a specific license, the specific 
license number or a copy of the license must be maintained on file with 
the person subject to U.S. jurisdiction providing services authorized 
pursuant to this section.
* * * * *

Lisa M. Palluconi,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2024-20674 Filed 9-11-24; 8:45 am]
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