[Federal Register Volume 90, Number 54 (Friday, March 21, 2025)]
[Rules and Regulations]
[Pages 13286-13287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-04864]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 501 and 515
Reporting, Procedures and Penalties 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 issuing this final rule to adopt, without change, an
interim final rule to amend the Reporting, Procedures and Penalties
Regulations (the ``Regulations''), extending certain recordkeeping
requirements from five to 10 years, consistent with the statute of
limitations for violations of certain sanctions administered by OFAC.
DATES: Effective March 21, 2025.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Licensing, 202-
622-4570; 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).
On September 13, 2024, OFAC published an interim final rule (89 FR
74832, September 13, 2024) with a 30-day public comment period to
solicit public comments on amending the Regulations to extend from five
to 10 years the recordkeeping requirements codified at 31 CFR 501.601,
paragraph IV.B of appendix A to part 501, and 515.572, consistent with
the statute of limitations for violations of certain sanctions
prohibitions administered by OFAC. OFAC received three relevant written
submissions on the proposed rule, which are available on the public
rulemaking docket at https://www.regulations.gov. OFAC considered each
submission but made no revisions in this rule in response to the
comments.
The first comment was general in nature, for example, supporting
OFAC's efforts to extend recordkeeping requirements for certain
transactions from five to 10 years, consistent with the statute of
limitations for violations of certain sanctions administered by OFAC.
That comment also stated that the rule has a broad scope and sought
additional guidance on the applicability of the rule.
The second comment suggested that OFAC postpone enacting the new
recordkeeping requirements to give stakeholders more time to acquire
additional resources and storage capacity and to adjust their current
recordkeeping practices to conform to the new recordkeeping
requirements of OFAC. However, OFAC believes that it has provided
sufficient time for recordkeepers to adjust because the relevant
statute was signed into law in April 2024, and OFAC published the
interim final rule with a six-month delay in effective date (March 12,
2025).
Finally, the third comment noted that financial institutions
subject to European Union (EU) regulations on anti-money laundering and
counter-terrorism financing may face difficulties in complying with
this new 10-year recordkeeping requirement. Specifically, the comment
states that article 40 of EU Directive 2015/849, on the prevention of
the use of the financial system for the purposes of money laundering or
terrorist financing, mandates that records of transactions must be
deleted five years after the end of a business relationship with
regular clients, or after the transaction for occasional clients,
because this data is considered ``personal'' by EU authorities. OFAC is
mindful that this may create instances in which there is potential
tension between EU and U.S. retention requirements and has accounted
for potential conflict of laws issues in assessing apparent violations
in General Factor K of OFAC's Enforcement Guidelines. See 74 FR 57593.
Based on the rationale set forth in the interim final rule and this
final rule, OFAC is adopting the interim final rule with no changes.
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
[[Page 13287]]
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 Sec. 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. On September 12, 2024, OFAC issued a Federal Register notice
and requests for comments on this information collection, as well as an
unrelated consolidation of certain OFAC information collections under
OMB control number 1505-0164, and received no public comments. The
request has been submitted to OMB for review. 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
31 CFR Part 501
Administrative practice and procedure, Banks, Banking, Exports,
Foreign trade, Licensing and registration, Penalties, Reporting and
recordkeeping requirements.
31 CFR Part 515
Administrative practice and procedure, Banks, Banking, Cuba,
Exports, Foreign trade, Imports, Licensing and registration, Penalties,
Reporting and recordkeeping requirements.
PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS
PART 515--CUBAN ASSETS CONTROL REGULATIONS
0
Accordingly, the interim final rule amending 31 CFR parts 501 and 515
published at 89 FR 74832 on September 13, 2024, is adopted as final
without change.
Lisa M. Palluconi,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2025-04864 Filed 3-19-25; 8:45 am]
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