[Federal Register Volume 77, Number 149 (Thursday, August 2, 2012)]
[Presidential Documents]
[Pages 45897-45902]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19055]
Presidential Documents
Federal Register / Vol. 77, No. 149 / Thursday, August 2, 2012 /
Presidential Documents
[[Page 45897]]
Executive Order 13622 of July 30, 2012
Authorizing Additional Sanctions With Respect to
Iran
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.), and
section 301 of title 3, United States Code,
I, BARACK OBAMA, President of the United States of
America, in order to take additional steps with respect
to the national emergency declared in Executive Order
12957 of March 15, 1995, as relied upon for additional
steps in subsequent Executive Orders, particularly in
light of the Government of Iran's use of revenues from
petroleum, petroleum products, and petrochemicals for
illicit purposes, Iran's continued attempts to evade
international sanctions through deceptive practices,
and the unacceptable risk posed to the international
financial system by Iran's activities, hereby order:
Section 1. (a) The Secretary of the Treasury, in
consultation with the Secretary of State, is hereby
authorized to impose on a foreign financial institution
the sanctions described in subsection (b) of this
section upon determining that the foreign financial
institution has knowingly conducted or facilitated any
significant financial transaction:
(i) with the National Iranian Oil Company (NIOC) or Naftiran Intertrade
Company (NICO), except for a sale or provision to NIOC or NICO of the
products described in section 5(a)(3)(A)(i) of the Iran Sanctions Act of
1996 (Public Law 104-172), as amended, provided that the fair market value
of such products is lower than the applicable dollar threshold specified in
that provision;
(ii) for the purchase or acquisition of petroleum or petroleum products
from Iran; or
(iii) for the purchase or acquisition of petrochemical products from Iran.
(b) With respect to any foreign financial
institution determined by the Secretary of the Treasury
in accordance with this section to meet the criteria
set forth in subsection (a)(i), (a)(ii), or (a)(iii) of
this section, the Secretary of the Treasury may
prohibit the opening, and prohibit or impose strict
conditions on the maintaining, in the United States of
a correspondent account or a payable-through account by
such foreign financial institution.
(c) Subsections (a)(i) and (ii) of this section
shall apply with respect to a significant financial
transaction conducted or facilitated by a foreign
financial institution only if:
(i) the President determines under subparagraphs (4)(B) and (C) of
subsection 1245(d) of the National Defense Authorization Act for Fiscal
Year 2012 (Public Law 112-81) (NDAA) that there is a sufficient supply of
petroleum and petroleum products from countries other than Iran to permit a
significant reduction in the volume of petroleum and petroleum products
purchased from Iran by or through foreign financial institutions; and
(ii) an exception under subparagraph 4(D) of subsection 1245(d) of the NDAA
from the imposition of sanctions under paragraph (1) of that subsection
does not apply with respect to the country with primary jurisdiction over
the foreign financial institution.
(d) Subsection (a) of this section shall not apply
with respect to any person for conducting or
facilitating a transaction for the sale of food,
[[Page 45898]]
medicine, or medical devices to Iran or when the
underlying transaction has been authorized by the
Secretary of the Treasury.
(e) The prohibitions in subsection (b) 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 prior to the effective date
of this order.
Sec. 2. (a) The Secretary of State, in consultation
with the Secretary of the Treasury, the Secretary of
Commerce, and the United States Trade Representative,
and with the President of the Export-Import Bank, the
Chairman of the Board of Governors of the Federal
Reserve System, and other agencies and officials as
appropriate, is hereby authorized to impose on a person
any of the sanctions described in section 3 or 4 of
this order upon determining that the person:
(i) knowingly, on or after the effective date of this order, engaged in a
significant transaction for the purchase or acquisition of petroleum or
petroleum products from Iran;
(ii) knowingly, on or after the effective date of this order, engaged in a
significant transaction for the purchase or acquisition of petrochemical
products from Iran;
(iii) is a successor entity to a person determined by the Secretary of
State in accordance with this subsection to meet the criteria in subsection
(a)(i) or (a)(ii) of this section;
(iv) owns or controls a person determined by the Secretary of State in
accordance with this subsection to meet the criteria in subsection (a)(i)
or (a)(ii) of this section, and had knowledge that the person engaged in
the activities referred to in that subsection; or
(v) is owned or controlled by, or under common ownership or control with, a
person determined by the Secretary of State in accordance with this
subsection to meet the criteria in subsection (a)(i) or (a)(ii) of this
section, and knowingly participated in the activities referred to in that
subsection.
(b) Subsection (a)(i) of this section shall apply
with respect to a person only if:
(i) the President determines under subparagraphs (4)(B) and (C) of
subsection 1245(d) of the NDAA that there is a sufficient supply of
petroleum and petroleum products from countries other than Iran to permit a
significant reduction in the volume of petroleum and petroleum products
purchased from Iran by or through foreign financial institutions; and
(ii) an exception under subparagraph 4(D) of subsection 1245(d) of the NDAA
from the imposition of sanctions under paragraph (1) of that subsection
does not apply with respect to the country with primary jurisdiction over
the person.
Sec. 3. When the Secretary of State, in accordance with
the terms of section 2 of this order, has determined
that a person meets any of the criteria described in
section 2 and has selected any of the sanctions set
forth below to impose on that person, the heads of
relevant agencies, in consultation with the Secretary
of State, shall take the following actions where
necessary to implement the sanctions imposed by the
Secretary of State:
(a) the Board of Directors of the Export-Import
Bank shall deny approval of the issuance of any
guarantee, insurance, extension of credit, or
participation in an extension of credit in connection
with the export of any goods or services to the
sanctioned person;
(b) agencies shall not issue any specific license
or grant any other specific permission or authority
under any statute 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;
(c) with respect to a sanctioned person that is a
financial institution:
[[Page 45899]]
(i) the Chairman of the Board of Governors of the Federal Reserve System
and the President of the Federal Reserve Bank of New York shall take such
actions as they deem appropriate, including denying designation, or
terminating the continuation of any prior designation of, the sanctioned
person as a primary dealer in United States Government debt instruments; or
(ii) agencies shall prevent the sanctioned person from serving as an agent
of the United States Government or serving as a repository for United
States Government funds; or
(d) agencies shall not procure, or enter into a
contract for the procurement of, any goods or services
from the sanctioned person.
(e) The prohibitions in subsections (a)-(d) 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 prior to the effective date
of this order.
Sec. 4. (a) When the Secretary of State, in accordance
with the terms of section 2 of this order, has
determined that a person meets any of the criteria
described in section 2 and has selected any of the
sanctions set forth below to impose on that person, the
Secretary of the Treasury, in consultation with the
Secretary of State, shall take the following actions
where necessary to implement the sanctions imposed by
the Secretary of State:
(i) prohibit any United States financial institution from making loans or
providing credits to the sanctioned person totaling more than $10,000,000
in any 12-month period, unless such person is engaged in activities to
relieve human suffering and the loans or credits are provided for such
activities;
(ii) 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;
(iii) prohibit any transfers of credit or payments between financial
institutions or by, through, or to any financial institution, to the extent
that such transfers or payments are subject to the jurisdiction of the
United States and involve any interest of the sanctioned person;
(iv) block all property and interests in property that are in the United
States, that come within the United States, or that are or come within the
possession or control of any United States person, including any foreign
branch, of the sanctioned person, and provide that such property and
interests in property may not be transferred, paid, exported, withdrawn, or
otherwise dealt in; or
(v) restrict or prohibit imports of goods, technology, or services,
directly or indirectly, into the United States from the sanctioned person.
(b) The prohibitions in subsections (a)(i)-(a)(v)
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 prior to the effective date
of this order.
Sec. 5. (a) The Secretary of the Treasury, in
consultation with the Secretary of State, is hereby
authorized to impose on a person the measures described
in subsection (b) of this section upon determining that
the person has materially assisted, sponsored, or
provided financial, material, or technological support
for, or goods or services in support of, NIOC, NICO, or
the Central Bank of Iran, or the purchase or
acquisition of U.S. bank notes or precious metals by
the Government of Iran.
(b) With respect to any person determined by the
Secretary of the Treasury in accordance with subsection
(a) to meet the criteria set forth in subsection (a) of
this section, all property and interests in property
that are in the United States, that hereafter come
within the United States, or that are
[[Page 45900]]
or hereafter come within the possession or control of
any United States person, including any foreign branch,
of such person are blocked and may not be transferred,
paid, exported, withdrawn, or otherwise dealt in.
(c) The prohibitions in subsection (b) 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 prior to the effective date
of this order.
Sec. 6. Subsection 1(a), section 2, and subsection 5(a)
of this order shall not apply with respect to any
person for conducting or facilitating a transaction
involving a natural gas development and pipeline
project initiated prior to the effective date of this
order to bring gas from Azerbaijan to Europe and Turkey
in furtherance of a production sharing agreement or
license awarded by a sovereign government other than
the Government of Iran before the effective date of
this order.
Sec. 7. I hereby determine that, to the extent section
203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) may apply,
the making of donations of the type of articles
specified in such section by, to, or for the benefit of
any person whose property and interests in property are
blocked pursuant to subsection (a)(iv) of section 4 or
subsection (b) of section 5 of this order would
seriously impair my ability to deal with the national
emergency declared in Executive Order 12957, and I
hereby prohibit such donations as provided by
subsection (a)(iv) of section 4 and subsection (b) of
section 5 of this order.
Sec. 8. The prohibitions in subsection (a)(iv) of
section 4 and subsection (b) of section 5 of this order
include, but are not limited to:
(i) 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
(ii) the receipt of any contribution or provision of funds, goods, or
services from any such person.
Sec. 9. (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. 10. For the purposes of this order:
(a) the term ``person'' means an individual or
entity;
(b) the term ``entity'' means a partnership,
association, trust, joint venture, corporation, group,
subgroup, or other organization;
(c) the term ``United States person'' means any
United States citizen, permanent resident alien, 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;
(d) the term ``financial institution,'' as used in
sections 3 and 4 of this order, includes (i) a
depository institution (as defined in section 3(c)(1)
of the Federal Deposit Insurance Act) (12 U.S.C.
1813(c)(1)), including a branch or agency of a foreign
bank (as defined in section 1(b)(7) of the
International Banking Act of 1978) (12 U.S.C. 3101(7));
(ii) a credit union; (iii) a securities firm, including
a broker or dealer; (iv) an insurance company,
including an agency or underwriter; and (v) any other
company that provides financial services;
(e) the term ``foreign financial institution,'' as
used in section 1 of this order, means any foreign
entity 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, commodity futures or
options, or procuring purchasers and sellers thereof,
as principal or agent. It includes, but is not limited
to, depository institutions, banks, savings
[[Page 45901]]
banks, money service businesses, trust companies,
securities brokers and dealers, commodity futures and
options brokers and dealers, forward contract and
foreign exchange merchants, securities and commodities
exchanges, clearing corporations, investment companies,
employee benefit plans, and holding companies,
affiliates, or subsidiaries of any of the foregoing.
The term does not include the international financial
institutions identified in 22 U.S.C. 262r(c)(2), the
International Fund for Agricultural Development, the
North American Development Bank, or any other
international financial institution so notified by the
Secretary of the Treasury;
(f) the term ``United States financial
institution'' means a financial institution as defined
in subsection (d) of this section (including its
foreign branches) organized under the laws of the
United States or any jurisdiction within the United
States or located in the United States;
(g) the term ``Iran'' means the Government of Iran
and the territory of Iran and any other territory or
marine area, including the exclusive economic zone and
continental shelf, over which the Government of Iran
claims sovereignty, sovereign rights, or jurisdiction,
provided that the Government of Iran exercises partial
or total de facto control over the area or derives a
benefit from economic activity in the area pursuant to
international arrangements;
(h) the term ``Government of Iran'' includes the
Government of Iran, any political subdivision, agency,
or instrumentality thereof, including the Central Bank
of Iran, and any person owned or controlled by, or
acting for or on behalf of, the Government of Iran;
(i) the terms ``knowledge'' and ``knowingly,'' with
respect to conduct, a circumstance, or a result, mean
that a person has actual knowledge, or should have
known, of the conduct, the circumstance, or the result;
(j) the term ``sanctioned person'' means a person
on whom the Secretary of State, in accordance with the
terms of section 2 of this order, has determined to
impose sanctions pursuant to section 2;
(k) the term ``petroleum'' (also known as crude
oil) means a mixture of hydrocarbons that exists in
liquid phase in natural underground reservoirs and
remains liquid at atmospheric pressure after passing
through surface separating facilities;
(l) the term ``petroleum products'' includes
unfinished oils, liquefied petroleum gases, pentanes
plus, aviation gasoline, motor gasoline, naphtha-type
jet fuel, kerosene-type jet fuel, kerosene, distillate
fuel oil, residual fuel oil, petrochemical feedstocks,
special naphthas, lubricants, waxes, petroleum coke,
asphalt, road oil, still gas, and miscellaneous
products obtained from the processing of: crude oil
(including lease condensate), natural gas, and other
hydrocarbon compounds. The term does not include
natural gas, liquefied natural gas, biofuels, methanol,
and other non-petroleum fuels;
(m) the term ``petrochemical products'' includes
any aromatic, olefin, and synthesis gas, and any of
their derivatives, including ethylene, propylene,
butadiene, benzene, toluene, xylene, ammonia, methanol,
and urea;
(n) the terms ``National Iranian Oil Company'' and
``NIOC'' mean the National Iranian Oil Company and any
entity owned or controlled by, or operating for or on
behalf of, the National Iranian Oil Company; and
(o) the terms ``Naftiran Intertrade Company'' and
``NICO'' mean the Naftiran Intertrade Company and any
entity owned or controlled by, or operating for or on
behalf of, the Naftiran Intertrade Company.
Sec. 11. For those persons whose property and interests
in property are blocked pursuant to this order who
might have a constitutional presence in the United
States, I find that because of the ability to transfer
funds or other assets instantaneously, prior notice to
such persons of measures to be taken pursuant to
subsection (a)(iv) of section 4 or subsection (b) of
section 5 of this order would render those measures
ineffectual. I therefore determine that for these
measures to be effective in addressing the national
[[Page 45902]]
emergency declared in Executive Order 12957, there need
be no prior notice of an action taken pursuant to
subsection (a)(iv) of section 4 or subsection (b) of
section 5 of this order.
Sec. 12. The Secretary of the Treasury, in consultation
with the Secretary of State, is hereby 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 sections 1, 4, and 5 of this order. The
Secretary of the Treasury may redelegate any of these
functions to other officers and agencies of the United
States Government consistent with applicable law. All
agencies of the United States Government are hereby
directed to take all appropriate measures within their
authority to carry out the provisions of this order.
Sec. 13. 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.
Sec. 14. The measures taken pursuant to this order are
in response to actions of the Government of Iran
occurring after the conclusion of the 1981 Algiers
Accords, and are intended solely as a response to those
later actions.
Sec. 15. This order is effective at 12:01 a.m. eastern
daylight time on July 31, 2012.
(Presidential Sig.)
THE WHITE HOUSE,
Washington, July 30, 2012.
[FR Doc. 2012-19055
Filed 8-1-12; 8:45 am]
Billing code 3295-F2-P