[Federal Register Volume 79, Number 85 (Friday, May 2, 2014)]
[Rules and Regulations]
[Pages 25413-25433]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-09998]



[[Page 25413]]

Vol. 79

Friday,

No. 85

May 2, 2014

Part IV





Department of the Treasury





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Office of Foreign Assets Control





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31 CFR Part 542





 Syrian Sanctions Regulations; Final Rule

Federal Register / Vol. 79 , No. 85 / Friday, May 2, 2014 / Rules and 
Regulations

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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 542


Syrian Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (``OFAC'') is amending the Syrian Sanctions Regulations (the 
``Regulations'') and reissuing them in their entirety, in order to 
implement Executive Order 13399 of April 25, 2006, ``Blocking Property 
of Additional Persons in Connection With the National Emergency With 
Respect to Syria,'' Executive Order 13460 of February 13, 2008, 
``Blocking Property of Additional Persons in Connection With the 
National Emergency With Respect to Syria,'' Executive Order 13572 of 
April 29, 2011, ``Blocking Property of Certain Persons with Respect to 
Human Rights Abuses in Syria,'' Executive Order 13573 of May 18, 2011, 
``Blocking Property of Senior Officials of the Government of Syria,'' 
Executive Order 13582 of August 17, 2011, ``Blocking Property of the 
Government of Syria and Prohibiting Certain Transactions with Respect 
to Syria,'' and Executive Order 13606 of April 22, 2012, ``Blocking the 
Property and Suspending Entry Into the United States of Certain Persons 
with Respect to Grave Human Rights Abuses by the Governments of Iran 
and Syria via Information Technology.'' OFAC is also incorporating into 
the Regulations several new general licenses, some of which have, until 
now, appeared only on OFAC's Web site on the Syria sanctions page. 
Finally, OFAC is updating certain provisions of the Regulations and 
making other technical and conforming changes.

DATES: Effective Date: May 2, 2014.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Sanctions 
Compliance & Evaluation, tel.: 202/622-2490, Assistant Director for 
Licensing, tel.: 202/622-2480, Assistant Director for Policy, tel.: 
202/622-6746, Assistant Director for Regulatory Affairs, tel.: 202/622-
4855, Office of Foreign Assets Control, or Chief Counsel (Foreign 
Assets Control), tel.: 202/622-2410, Office of the General Counsel, 
Department of the Treasury (not toll free numbers).

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning the Office of 
Foreign Assets Control (OFAC) are available from OFAC's Web site 
(www.treasury.gov/ofac). Certain general information pertaining to 
OFAC's sanctions programs also is available via facsimile through a 24-
hour fax-on-demand service, tel.: 202/622-0077.

Background

    On April 5, 2005, OFAC issued the Syrian Sanctions Regulations, 31 
CFR part 542 (the ``Regulations'') (70 FR 17201, April 5, 2005), to 
implement Executive Order 13338 of May 11, 2004 (69 FR 26751, May 13, 
2004) (``E.O. 13338''). OFAC today is amending the Regulations to 
implement Executive Order 13399 of April 25, 2006 (71 FR 25059, April 
28, 2006) (``E.O. 13399''), Executive Order 13460 of February 13, 2008 
(73 FR 8991, February 15, 2008) (``E.O. 13460''), Executive Order 13572 
of April 29, 2011 (76 FR 24787, May 3, 2011) (``E.O. 13572''), 
Executive Order 13573 of May 18, 2011 (76 FR 29143, May 20, 2011) 
(``E.O. 13573''), Executive Order 13582 of August 17, 2011 (76 FR 
52209, August 22, 2011) (``E.O. 13582''), and Executive Order 13606 of 
April 22, 2012 (77 FR 24571, April 24, 2012) (``E.O. 13606''). OFAC 
also is incorporating into the Regulations several new general 
licenses, some of which have, until now, appeared only on OFAC's Web 
site on the Syria sanctions page. Finally, OFAC is updating certain 
provisions of the Regulations and making other technical and conforming 
changes. Due to the extensive nature of these amendments, OFAC is 
reissuing the Regulations in their entirety.
    On April 25, 2006, to take additional steps with respect to the 
national emergency with respect to Syria declared in E.O. 13338, the 
President issued E.O. 13399, invoking the authority of, inter alia, the 
International Emergency Economic Powers Act (50 U.S.C. 1701-1706) 
(``IEEPA''), the National Emergencies Act (50 U.S.C. 1601 et seq.) (the 
``NEA''), and section 5 of the United Nations Participation Act, as 
amended (22 U.S.C. 287c) (``UNPA''), and in view of United Nations 
Security Council Resolution (``UNSCR'') 1636 of October 31, 2005. UNSCR 
1636 requires member states to freeze the assets of individuals 
designated by the international independent investigation commission 
(the ``Commission'') established by UNSCR 1595 of April 7, 2005, or by 
the Government of Lebanon as suspected of involvement in the planning, 
sponsoring, organizing, or perpetrating of the terrorist bombing in 
Beirut, Lebanon, on February 14, 2005, that killed former Lebanese 
Prime Minister Rafiq Hariri and 22 others.
    Section 1(a) of E.O. 13399 blocks, with certain exceptions, 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 
overseas branch, of any person determined by the Secretary of the 
Treasury, after consultation with the Secretary of State: (1) To be, or 
to have been, involved in the planning, sponsoring, organizing, or 
perpetrating of (a) the terrorist act in Beirut, Lebanon, that resulted 
in the assassination of former Lebanese Prime Minister Rafiq Hariri and 
the deaths of 22 others; or (b) any other bombing, assassination, or 
assassination attempt in Lebanon since October 1, 2004, that is related 
to Hariri's assassination or that implicates the Government of Syria or 
its officers or agents; (2) to have obstructed or otherwise impeded the 
work of the Commission established pursuant to UNSCR 1595; (3) to have 
materially assisted, sponsored, or provided financial, material, or 
technological support for, or goods or services in support of, any such 
terrorist act, bombing, or assassination attempt, or any person 
designated pursuant to E.O. 13399; or (4) to be owned or controlled by, 
or acting or purporting to act for or on behalf of, directly or 
indirectly, any person designated pursuant to E.O. 13399. The property 
and interests in property of such persons may not be transferred, paid, 
exported, withdrawn, or otherwise dealt in.
    The President issued E.O. 13460 on February 13, 2008, pursuant to 
the authority of, inter alia, IEEPA and the NEA, to take additional 
steps with respect to the national emergency declared in E.O. 13338. 
Section 1(a) of E.O. 13460 blocks, with certain exceptions, 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 
overseas branch, of any person determined by the Secretary of the 
Treasury, after consultation with the Secretary of State, to be 
responsible for, to have engaged in, to have facilitated, or to have 
secured improper advantage as a result of, public corruption by senior 
officials within the Government of Syria. The property and interests in 
property of such persons may not be transferred, paid, exported, 
withdrawn, or otherwise dealt in.

[[Page 25415]]

    In addition, Section 2 of E.O. 13460 amends one of the criteria for 
designation pursuant to E.O. 13338 relating to undermining efforts to 
stabilize Iraq.
    The President issued E.O. 13572 on April 29, 2011, pursuant to the 
authority of, inter alia, IEEPA and the NEA. In E.O. 13572, the 
President expanded the scope of the national emergency declared in E.O. 
13338, finding that the Government of Syria's human rights abuses, 
including those related to the repression of the people of Syria, 
manifested most recently by the use of violence and torture against, 
and arbitrary arrests and detentions of, peaceful protestors by police, 
security forces, and other entities that have engaged in human rights 
abuses, constitute an unusual and extraordinary threat to the national 
security, foreign policy, and economy of the United States.
    Section 1 of E.O. 13572 blocks 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 overseas branch, of the persons 
listed in the Annex to E.O. 13572 and any person determined by the 
Secretary of the Treasury, in consultation with the Secretary of State: 
(1) To be responsible for or complicit in, or responsible for ordering, 
controlling, or otherwise directing, or to have participated in, the 
commission of human rights abuses in Syria, including those related to 
repression; (2) to be a senior official of an entity whose property and 
interests in property are blocked pursuant to E.O. 13572; (3) to have 
materially assisted, sponsored, or provided financial, material, or 
technological support for, or goods or services in support of, the 
activities described in (1) above or any person whose property and 
interests in property are blocked pursuant to E.O. 13338, E.O. 13460, 
or E.O. 13572; or (4) to be owned or controlled by, or to have acted or 
purported to act for or on behalf of, directly or indirectly, any 
person whose property and interests in property are blocked pursuant to 
E.O. 13460 or E.O. 13572. The property and interests in property of 
such persons may not be transferred, paid, exported, withdrawn, or 
otherwise dealt in.
    The President issued E.O. 13573 on May 18, 2011, pursuant to the 
authority of, inter alia, IEEPA and the NEA, to take additional steps 
with respect to the national emergency declared in E.O. 13338 and 
expanded in scope in E.O. 13572.
    Section 1 of E.O. 13573 blocks 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 overseas branch, of the persons 
listed in the Annex to E.O. 13573 and any person determined by the 
Secretary of the Treasury, in consultation with the Secretary of State: 
(1) To be a senior official of the Government of Syria; (2) to be an 
agency or instrumentality of the Government of Syria, or owned or 
controlled, directly or indirectly, by the Government of Syria or by an 
official or officials of the Government of Syria; (3) to have 
materially assisted, sponsored, or provided financial, material, or 
technological support for, or goods or services in support of, any 
person whose property and interests in property are blocked pursuant to 
E.O. 13573; or (4) to be owned or controlled by, or to have acted or 
purported to act for or on behalf of, directly or indirectly, any 
person whose property and interests in property are blocked pursuant to 
E.O. 13573. The property and interests in property of such persons may 
not be transferred, paid, exported, withdrawn, or otherwise dealt in.
    The President issued E.O. 13582 on August 17, 2011, pursuant to the 
authority of, inter alia, IEEPA and the NEA, to take additional steps 
with respect to the national emergency declared in E.O. 13338 and 
expanded in scope in E.O. 13572.
    Section 1(a) of E.O. 13582 blocks 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 overseas branch, of the Government 
of Syria. The term Government of Syria is defined in section 8(d) of 
E.O. 13582 to mean the Government of the Syrian Arab Republic, its 
agencies, instrumentalities, and controlled entities. The property and 
interests in property of the Government of Syria may not be 
transferred, paid, exported, withdrawn, or otherwise dealt in.
    Section 1(b) of E.O. 13582 blocks 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 overseas branch, of any person 
determined by the Secretary of the Treasury, in consultation with the 
Secretary of State: (1) To have materially assisted, sponsored, or 
provided financial, material, or technological support for, or goods or 
services in support of, any person whose property and interests in 
property are blocked pursuant to E.O. 13582; or (2) to be owned or 
controlled by, or to have acted or purported to act for or on behalf 
of, directly or indirectly, any person whose property and interests in 
property are blocked pursuant to E.O. 13582. The property and interests 
in property of such persons may not be transferred, paid, exported, 
withdrawn, or otherwise dealt in.
    Section 2 of E.O. 13582 prohibits (1) new investment in Syria by a 
United States person, wherever located; (2) the exportation, 
reexportation, sale, or supply, directly or indirectly from the United 
States, or by a United States person, wherever located, of any services 
to Syria; (3) the importation into the United States of petroleum or 
petroleum products of Syrian origin; (4) any transaction or dealing by 
a United States person, wherever located, including purchasing, 
selling, transporting, swapping, brokering, approving, financing, 
facilitating, or guaranteeing, in or related to petroleum or petroleum 
products of Syrian origin; (5) any approval, financing, facilitation, 
or guarantee by a United States person, wherever located, of a 
transaction by a foreign person where the transaction by that foreign 
person would be prohibited by section 2 of E.O. 13582 if performed by a 
United States person or within the United States.
    Section 7 of E.O. 13582 provides that nothing in sections 1 or 2 of 
the order shall prohibit transactions for the conduct of the official 
business of the Federal Government by employees, grantees, or 
contractors thereof.
    The President issued E.O. 13606 on April 22, 2012, pursuant to the 
authority of, inter alia, IEEPA and the NEA, to take additional steps 
with respect to, inter alia, the national emergency declared in E.O. 
13338 and expanded in scope in E.O. 13572.
    Section 1 of E.O. 13606 blocks, in relevant part, 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 
persons listed in the Annex to E.O. 13606 and any person determined by 
the Secretary of the Treasury, in consultation with or at the 
recommendation of the Secretary of State: (1) To have operated, or to 
have directed the operation of, information and communications 
technology that facilitates computer or network disruption, monitoring, 
or tracking that could assist in or enable serious human rights abuses 
by or on behalf of the Government of Syria; (2) to have sold, leased, 
or otherwise provided, directly or indirectly, goods, services, or

[[Page 25416]]

technology to Syria likely to be used to facilitate computer or network 
disruption, monitoring, or tracking that could assist in or enable 
serious human rights abuses by or on behalf of the Government of Syria; 
(3) to have materially assisted, sponsored, or provided financial, 
material, or technological support for, or goods or services to or in 
support of, the activities described in (1) or (2) above or any person 
whose property and interests in property are blocked pursuant to E.O. 
13606; or (4) to be owned or controlled by, or to have acted or 
purported to act for or on behalf of, directly or indirectly, any 
person whose property and interests in property are blocked pursuant to 
E.O. 13606. The property and interests in property of such persons may 
not be transferred, paid, exported, withdrawn, or otherwise dealt in.
    Section 6 of E.O. 13606 provides that nothing in section 1 of the 
order shall prohibit transactions for the conduct of the official 
business of the United States Government by employees, contractors, or 
grantees thereof.
    In section 1(b) of E.O. 13399, section 5 of E.O. 13460, section 2 
of E.O.s 13572, 13573, and 13606, and section 3 of E.O. 13582, the 
President determined that the making of donations of certain articles, 
such as food, clothing, and medicine, intended to be used to relieve 
human suffering, as 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 those orders would 
seriously impair his ability to deal with the national emergency 
declared in E.O. 13338. The President therefore prohibited such 
donations as provided by the orders.
    Section 1(c) of E.O. 13399, section 1(b) of E.O. 13460, section 3 
of E.O.s 13572, 13573, and 13606, and section 4 of E.O. 13582 provide 
that the prohibition on any transaction or dealing in blocked property 
or interests in property includes, but is not limited to, 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 those orders, and the receipt of any 
contribution or provision of funds, goods, or services from any such 
person.
    Section 5 of E.O. 13399, section 7 of E.O. 13460, section 8 of 
E.O.s 13572 and 13573, section 9 of E.O. 13606, and section 10 of E.O. 
13582 authorize the Secretary of the Treasury, in consultation with the 
Secretary of State, 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 
those orders. These sections also authorize the Secretary of the 
Treasury to redelegate any of these functions to other officers and 
agencies of the U.S. Government consistent with applicable law.
    Subpart A of the Regulations clarifies the relation of this part to 
other laws and regulations. Subpart B of the Regulations sets forth the 
prohibitions contained in the various Executive orders. Accordingly, 
section 542.201 in subpart B has been expanded to include the blocking 
prohibitions in E.O.s 13399, 13460, 13572, 13573, 13582, and 13606. New 
sections 542.206 through 542.210 are being added to subpart B to set 
forth additional prohibitions imposed in section 2 of E.O. 13582. In 
subpart C, which defines key terms used throughout the Regulations, new 
sections 542.304 through 542.306, 542.310, 542.311, 542.312, 542.314, 
542.316, 542.320, 542.322, and 542.323 are being added to define key 
terms used in the new blocking prohibitions or elsewhere in the 
Regulations. Because these new definitions were inserted in 
alphabetical order, certain previously existing definitions have been 
renumbered. In subpart D, which contains interpretive sections 
regarding the Regulations, new sections 542.411 through 542.413 are 
being added, and former section 542.405 is being expanded.
    Transactions otherwise prohibited under the Regulations but found 
to be consistent with U.S. policy may be authorized by one of the 
general licenses contained in subpart E of the Regulations or by a 
specific license issued pursuant to the procedures described in subpart 
E of 31 CFR part 501. Subpart E of the Regulations also contains 
certain statements of licensing policy in addition to the general 
licenses. New general licenses that previously had been posted only on 
OFAC's Web site are being added in sections 542.509 through 542.520 and 
542.523. In addition, sections 542.508, 542.521, 542.522, 542.524, 
542.525, and 542.526 incorporate new general licenses and sections 
542.527, 542.528, and 542.529 incorporate new statements of licensing 
policy. Revisions also are being made to the authorizations in section 
542.507.
    In addition to the authorizations in Subpart E, on September 9, 
2011, OFAC issued a general license on its Web site (Syria General 
License No. 7), which authorized the wind down of contracts involving 
the Government of Syria and the divestiture of a U.S. person's 
investments or winding down of contracts involving Syria. This general 
license expired on November 26, 2011.
    Additionally, the general license formerly found at section 
542.508, which authorizes the provision of nonscheduled emergency 
medical services in the United States to persons whose property or 
interests in property are blocked pursuant to section 542.201(a), can 
now be found at section 542.531.
    Subpart F of the Regulations refers to subpart C of part 501 for 
recordkeeping and reporting requirements. Subpart G of the Regulations 
describes the civil and criminal penalties applicable to violations of 
the Regulations, as well as the procedures governing the potential 
imposition of a civil monetary penalty.
    Subpart H of the Regulations refers to subpart E of part 501 for 
applicable provisions relating to administrative procedures and 
contains a delegation of authority by the Secretary of the Treasury. 
Subpart I of the Regulations sets forth a Paperwork Reduction Act 
notice.

Public Participation

    Because the Regulations involve a foreign affairs function, the 
provisions of Executive Order 12866 and the Administrative Procedure 
Act (5 U.S.C. 553) requiring notice of proposed rulemaking, opportunity 
for public participation, and delay in effective date are inapplicable. 
Because no notice of proposed rulemaking is required for this rule, the 
Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The collections of information related to the Regulations are 
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties 
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507), those collections of information have been approved by 
the Office of Management and Budget under control number 1505-0164. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection of 
information displays a valid control number.

List of Subjects in 31 CFR Part 542

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Credit, Investments, Penalties, Reporting and recordkeeping 
requirements, Securities, Services, Syria.

    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR chapter V by

[[Page 25417]]

revising 31 CFR part 542 to read as follows:

PART 542--SYRIAN SANCTIONS REGULATIONS

Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
542.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
542.201 Prohibited transactions involving blocked property.
542.202 Effect of transfers violating the provisions of this part.
542.203 Holding of funds in interest-bearing accounts; investment 
and reinvestment.
542.204 Expenses of maintaining blocked physical property; 
liquidation of blocked property.
542.205 Evasions; attempts; causing violations; conspiracies.
542.206 Prohibited new investment in Syria.
542.207 Prohibited exportation, reexportation, sale, or supply of 
services to Syria.
542.208 Prohibited importation of petroleum or petroleum products of 
Syrian origin.
542.209 Prohibited transactions or dealings in or related to 
petroleum or petroleum products of Syrian origin.
542.210 Prohibited facilitation.
542.211 Exempt transactions.
Subpart C--General Definitions
542.300 Applicability of definitions.
542.301 Blocked account; blocked property.
542.302 Effective date.
542.303 Entity.
542.304 Financial, material, or technological support.
542.305 Government of Syria.
542.306 Information and communications technology.
542.307 Information or informational materials.
542.308 Interest.
542.309 Licenses; general and specific.
542.310 Loans or other extensions of credit.
542.311 New investment.
542.312 OFAC.
542.313 Person.
542.314 Petroleum or petroleum products of Syrian origin.
542.315 Property; property interest.
542.316 Syria; Syrian.
542.317 Transfer.
542.318 United States.
542.319 United States person; U.S. person.
542.320 U.S. depository institution.
542.321 U.S. financial institution.
542.322 U.S. registered broker or dealer in securities.
542.323 U.S. registered money transmitter.
Subpart D--Interpretations
542.401 Reference to amended sections.
542.402 Effect of amendment.
542.403 Termination and acquisition of an interest in blocked 
property.
542.404 Transactions ordinarily incident to a licensed transaction.
542.405 Exportation, reexportation, sale, or supply of services; 
provision of services.
542.406 Offshore transactions involving blocked property.
542.407 Payments from blocked accounts to satisfy obligations 
prohibited.
542.408 Charitable contributions.
542.409 Credit extended and cards issued by U.S. financial 
institutions.
542.410 Setoffs prohibited.
542.411 Entities owned by a person whose property and interests in 
property are blocked.
542.412 Transactions relating to Syrian petroleum or petroleum 
products from third countries; transshipments.
542.413 Facilitation; change of policies and procedures; referral of 
business opportunities offshore.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
542.501 General and specific licensing procedures.
542.502 Effect of license or authorization.
542.503 Exclusion from licenses.
542.504 Payments and transfers to blocked accounts in U.S. financial 
institutions.
542.505 Entries in certain accounts for normal service charges 
authorized.
542.506 Investment and reinvestment of certain funds authorized.
542.507 Provision of certain legal services authorized.
542.508 Payments from funds originating outside the United States 
authorized.
542.509 Syrian diplomatic missions in the United States.
542.510 Exports or reexports to Syria of items licensed or otherwise 
authorized by the Department of Commerce authorized; exports or 
reexports of certain services authorized.
542.511 Exportation of certain services incident to Internet-based 
communications authorized.
542.512 Noncommercial, personal remittances authorized.
542.513 Official activities of certain international organizations 
authorized.
542.514 Transactions related to U.S. persons residing in Syria 
authorized.
542.515 Operation of accounts authorized.
542.516 Certain services in support of nongovernmental 
organizations' activities authorized.
542.517 Third-country diplomatic and consular funds transfers 
authorized.
542.518 Payments for overflights of Syrian airspace or emergency 
landings in Syria authorized.
542.519 Transactions related to telecommunications and mail 
authorized.
542.520 Certain transactions related to patents, trademarks, 
copyrights, and other intellectual property authorized.
542.521 Activities and services related to certain nonimmigrant and 
immigrant categories authorized.
542.522 Official business of the Federal Government authorized.
542.523 Certain services to the National Coalition of Syrian 
Revolutionary and Opposition Forces authorized.
542.524 Bunkering and emergency repairs.
542.525 Exportation or reexportation of services to Syria related to 
the exportation or reexportation of certain non-U.S. origin goods 
authorized.
542.526 Exportation of services related to conferences in the United 
States or third countries authorized.
542.527 Policy on activities related to the telecommunications 
sector of Syria.
542.528 Policy on activities related to the agricultural sector of 
Syria.
542.529 Policy on activities related to petroleum and petroleum 
products of Syrian origin for the benefit of the National Coalition 
of Syrian Revolutionary and Opposition Forces.
542.530 Transactions incident to importations from Syria authorized.
542.531 Authorization of emergency medical services.
Subpart F--Reports
542.601 Records and reports.
Subpart G--Penalties
542.701 Penalties.
542.702 Pre-Penalty Notice; settlement.
542.703 Penalty imposition.
542.704 Administrative collection; referral to United States 
Department of Justice.
Subpart H--Procedures
542.801 Procedures.
542.802 Delegation by the Secretary of the Treasury.
Subpart I--Paperwork Reduction Act
542.901 Paperwork Reduction Act notice.

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2332d; 22 
U.S.C. 287c; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 
Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 
U.S.C. 1701 note); E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 
168; E.O. 13399, 71 FR 25059, 3 CFR, 2006 Comp., p. 218; E.O. 13460, 
73 FR 8991, 3 CFR 2008 Comp., p. 181; E.O. 13572, 76 FR 24787, 3 CFR 
2011 Comp., p. 236; E.O. 13573, 76 FR 29143, 3 CFR 2011 Comp., p. 
241; E.O. 13582, 76 FR 52209, 3 CFR 2011 Comp., p. 264; E.O. 13606, 
77 FR 24571, 3 CFR 2012 Comp., p. 243.

Subpart A--Relation of This Part to Other Laws and Regulations


Sec.  542.101  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 of this chapter, 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

[[Page 25418]]

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.

Subpart B--Prohibitions


Sec.  542.201  Prohibited transactions involving blocked property.

    (a)(1) 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 Government of Syria and of the following 
persons are blocked and may not be transferred, paid, exported, 
withdrawn, or otherwise dealt in: Any person determined by the 
Secretary of the Treasury, in consultation with the Secretary of State:
    (i) To have materially assisted, sponsored, or provided financial, 
material, or technological support for, or goods or services in support 
of, the Government of Syria or any other person whose property and 
interests in property are blocked pursuant to paragraph (a)(1) of this 
section; or
    (ii) To be owned or controlled by, or to have acted or purported to 
act for or on behalf of, directly or indirectly, the Government of 
Syria or any other person whose property and interests in property are 
blocked pursuant to paragraph (a)(1) of this section.
    (2) 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 following persons are blocked and may not be 
transferred, paid, exported, withdrawn, or otherwise dealt in:
    (i) The persons listed in the Annex to Executive Order 13572 of 
April 29, 2011, and the Annex to Executive Order 13573 of May 18, 2011; 
and
    (ii) Any person determined by the Secretary of the Treasury, in 
consultation with the Secretary of State:
    (A) To be or to have been directing or otherwise significantly 
contributing to the Government of Syria's provision of safe haven to or 
other support for any person whose property and interests in property 
are blocked under United States law for terrorism-related reasons, 
including, but not limited to, Hamas, Hizballah, Palestinian Islamic 
Jihad, the Popular Front for the Liberation of Palestine, the Popular 
Front for the Liberation of Palestine-General Command, and any persons 
designated pursuant to Executive Order 13224 of September 23, 2001;
    (B) To be or to have been directing or otherwise significantly 
contributing to the Government of Syria's military or security presence 
in Lebanon;
    (C) To be or to have been directing or otherwise significantly 
contributing to the Government of Syria's pursuit of the development 
and production of chemical, biological, or nuclear weapons and medium- 
and long-range surface-to-surface missiles;
    (D) To be or to have been responsible for or otherwise 
significantly contributing to actions taken or decisions made by the 
Government of Syria that have the purpose or effect of undermining 
efforts to stabilize Iraq or of allowing the use of Syrian territory or 
facilities to undermine efforts to stabilize Iraq;
    (E) To be or to have been involved in the planning, sponsoring, 
organizing, or perpetrating of:
    (1) The terrorist act in Beirut, Lebanon, that resulted in the 
assassination of former Lebanese Prime Minister Rafiq Hariri and the 
deaths of 22 others; or
    (2) Any other bombing, assassination, or assassination attempt in 
Lebanon since October 1, 2004, that is related to Hariri's 
assassination or that implicates the Government of Syria or its 
officers or agents;
    (F) To have obstructed or otherwise impeded the work of the 
Commission established pursuant to United Nations Security Council 
Resolution 1595 of April 7, 2005;
    (G) To be responsible for, to have engaged in, to have facilitated, 
or to have secured improper advantage as a result of, public corruption 
by senior officials within the Government of Syria;
    (H) To be responsible for or complicit in, or responsible for 
ordering, controlling, or otherwise directing, or to have participated 
in, the commission of human rights abuses in Syria, including those 
related to repression;
    (I) To be a senior official of an entity whose property and 
interests in property are blocked pursuant to paragraph (a)(2)(ii)(H) 
of this section or any other entity whose property and interests in 
property are blocked pursuant to E.O. 13572;
    (J) To be a senior official of the Government of Syria;
    (K) To be an agency or instrumentality of the Government of Syria, 
or owned or controlled, directly or indirectly, by the Government of 
Syria or by an official or officials of the Government of Syria;
    (L) To have materially assisted, sponsored, or provided financial, 
material, or technological support for, or goods or services in support 
of, the activities described in paragraph (a)(2)(ii)(E) or (H) of this 
section, or any person whose property and interests in property are 
blocked pursuant to paragraph (a)(2) of this section; or
    (M) To be owned or controlled by, or to have acted or purported to 
act for or on behalf of, directly or indirectly, any person whose 
property and interests in property are blocked pursuant to paragraph 
(a)(2) of this section.
    (3) 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 following persons are blocked and may not be 
transferred, paid, exported, withdrawn, or otherwise dealt in:
    (i) The persons listed in the Annex to Executive Order 13606 of 
April 22, 2012; and
    (ii) Any person determined by the Secretary of the Treasury, in 
consultation with or at the recommendation of the Secretary of State:
    (A) To have operated, or to have directed the operation of, 
information and communications technology that facilitates computer or 
network disruption, monitoring, or tracking that could assist in or 
enable serious human rights abuses by or on behalf of the Government of 
Syria;
    (B) To have sold, leased, or otherwise provided, directly or 
indirectly, goods, services, or technology to Syria likely to be used 
to facilitate computer or network disruption, monitoring, or tracking 
that could assist in or enable serious human rights abuses by or on 
behalf of the Government of Syria;
    (C) To have materially assisted, sponsored, or provided financial, 
material, or technological support for, or goods or services in support 
of, the activities described in paragraph (a)(3)(ii)(A) or (B) of this 
section, or any person whose property and interests in property are 
blocked pursuant to paragraph (a)(3) of this section; or
    (D) To be owned or controlled by, or to have acted or purported to 
act for or on behalf of, directly or indirectly, any person whose 
property and interests in property are blocked pursuant to paragraph 
(a)(3) of this section.

    Note 1 to paragraph (a) of Sec.  542.201:  The names of persons 
listed in or designated pursuant to Executive Order 13338 of May 11, 
2004, Executive Order 13399 of April 25,

[[Page 25419]]

2006, Executive Order 13460 of February 13, 2008, Executive Order 
13572 of April 29, 2011, Executive Order 13573 of May 18, 2011, 
Executive Order 13582 of August 17, 2011, or identified pursuant to 
E.O. 13582, whose property and interests in property are blocked 
pursuant to paragraph (a)(1) or (2) of this section, are published 
in the Federal Register and incorporated into OFAC's Specially 
Designated Nationals and Blocked Persons List (``SDN List'') with 
the identifier ``[SYRIA].'' The names of persons listed in or 
designated pursuant to Executive Order 13606 of April 22, 2012, 
whose property and interests in property therefore are blocked 
pursuant to paragraph (a)(3) of this section, are published in the 
Federal Register and incorporated into the SDN List with the 
identifier ``[HRIT-SY].'' The SDN List is accessible through the 
following page on OFAC's Web site: www.treasury.gov/sdn. Additional 
information pertaining to the SDN List can be found in Appendix A to 
this chapter. See Sec.  542.411 concerning entities that may not be 
listed on the SDN List but whose property and interests in property 
are nevertheless blocked pursuant to paragraph (a) of this section. 
Executive Order 13582 blocks the property and interests in property 
of the Government of Syria, as defined in Sec.  542.305. The 
property and interests in property of persons falling within the 
definition of the term Government of Syria are blocked pursuant to 
paragraph (a) of this section regardless of whether the names of 
such persons are published in the Federal Register or incorporated 
into the SDN List.


    Note 2 to paragraph (a) of Sec.  542.201:  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 paragraph (a) of this 
section also are published in the Federal Register and incorporated 
into the SDN List with the identifier ``[BPI-SYRIA]'' or ``[BPI-
HRIT-SY],'' as applicable.


    Note 3 to paragraph (a) of Sec.  542.201:  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 the Government of Syria or any 
other person whose property and interests in property are blocked 
pursuant to paragraph (a) of this section.

    (b) The prohibitions in paragraph (a) of this section include, but 
are not limited to, prohibitions on the following transactions:
    (1) 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 paragraph (a) of this 
section; and
    (2) The receipt of any contribution or provision of funds, goods, 
or services from any person whose property and interests in property 
are blocked pursuant to paragraph (a) of this section.
    (c) Unless authorized by this part or by a specific license 
expressly referring to this section, any dealing in any security (or 
evidence thereof) held within the possession or control of a U.S. 
person and either registered or inscribed in the name of, or known to 
be held for the benefit of, or issued by, the Government of Syria or 
any other person whose property and interests in property are blocked 
pursuant to paragraph (a) of this section is prohibited. This 
prohibition includes but is not limited to the transfer (including the 
transfer on the books of any issuer or agent thereof), disposition, 
transportation, importation, exportation, or withdrawal of, or the 
endorsement or guaranty of signatures on, any such security on or after 
the effective date. This prohibition applies irrespective of the fact 
that at any time (whether prior to, on, or subsequent to the effective 
date) the registered or inscribed owner of any such security may have 
or might appear to have assigned, transferred, or otherwise disposed of 
the security.
    (d) The prohibitions in paragraph (a) of this section apply except 
to the extent transactions are authorized by regulations, orders, 
directives, rulings, instructions, licenses, or otherwise, and 
notwithstanding any contracts entered into or any license or permit 
granted prior to the effective date.


Sec.  542.202  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.  
542.201(a), 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 property interest.
    (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.  542.201(a), 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 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.

    Note to paragraph (d) of Sec.  542.202:  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.

    (e) 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 and interests in 
property blocked pursuant to Sec.  542.201(a).

[[Page 25420]]

Sec.  542.203  Holding of funds in interest-bearing accounts; 
investment and reinvestment.

    (a) Except as provided in paragraphs (e) or (f) of this section, or 
as otherwise directed by OFAC, any U.S. person holding funds, such as 
currency, bank deposits, or liquidated financial obligations, subject 
to Sec.  542.201(a) shall hold or place such funds in a blocked 
interest-bearing account located in the United States.
    (b)(1) For 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 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 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 subject to Sec.  542.201(a) 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 paragraphs 
(a) or (f) of this section.
    (f) Blocked funds held in accounts or instruments outside the 
United States at the time the funds become subject to Sec.  542.201(a) 
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 chattels or real estate, 
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 subject to this section may not be held, invested, or 
reinvested in a manner that provides immediate financial or economic 
benefit or access to any person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a), nor may their holder 
cooperate in or facilitate the pledging or other attempted use as 
collateral of blocked funds or other assets.


Sec.  542.204  Expenses of maintaining blocked physical 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 physical property blocked pursuant to Sec.  
542.201(a) 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.  542.201(a) 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.  542.205  Evasions; attempts; causing violations; conspiracies.

    (a) Any transaction by a U.S. person or within the United States 
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 part is prohibited.
    (b) Any conspiracy formed to violate any of the prohibitions set 
forth in this part is prohibited.


Sec.  542.206  Prohibited new investment in Syria.

    Except as otherwise authorized, new investment, as defined in Sec.  
542.311, in Syria by a United States person, wherever located, is 
prohibited.


Sec.  542.207  Prohibited exportation, reexportation, sale, or supply 
of services to Syria.

    Except as otherwise authorized, the exportation, reexportation, 
sale, or supply, directly or indirectly, from the United States, or by 
a United States person, wherever located, of any services to Syria is 
prohibited.


Sec.  542.208  Prohibited importation of petroleum or petroleum 
products of Syrian origin.

    Except as otherwise authorized, the importation into the United 
States of petroleum or petroleum products of Syrian origin is 
prohibited.


Sec.  542.209  Prohibited transactions or dealings in or related to 
petroleum or petroleum products of Syrian origin.

    Except as otherwise authorized, any transaction or dealing by a 
United States person, wherever located, including purchasing, selling, 
transporting, swapping, brokering, approving, financing, facilitating, 
or guaranteeing, in or related to petroleum or petroleum products of 
Syrian origin is prohibited.


Sec.  542.210  Prohibited facilitation.

    Except as otherwise authorized, United States persons, wherever 
located, are prohibited from approving, financing, facilitating, or 
guaranteeing a transaction by a foreign person where the transaction by 
that foreign person would be prohibited by Sec. Sec.  542.206, 542.207, 
542.208, or 542.209 of this part if performed by a United States person 
or within the United States.


Sec.  542.211  Exempt transactions.

    (a) Personal communications. Except as set forth in paragraph (e) 
of this section, 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) Information or informational materials. (1) Except as set forth 
in paragraph (e) of this section, the prohibitions contained in this 
part do not apply to the importation from any country and the 
exportation to any country of any information or informational 
materials, as defined in Sec.  542.307, whether commercial or 
otherwise, regardless of format or medium of transmission.
    (2) This section does not exempt from regulation or authorize 
transactions related to information or informational materials not 
fully created and in existence at the date of the transactions, or to 
the substantive or artistic alteration or enhancement of informational 
materials, or to the provision of marketing and business consulting 
services. Such prohibited transactions include, but are not limited to, 
payment of advances for information or informational materials not yet 
created and completed (with the exception of prepaid subscriptions for 
widely circulated magazines and other periodical publications); 
provision of services to market, produce or co-produce, create, or 
assist in the creation of information or informational materials; and 
payment of royalties with respect to income received for enhancements 
or alterations made by

[[Page 25421]]

U.S. persons to such information or informational materials.
    (3) This section does not exempt or authorize transactions incident 
to the exportation of software subject to the Export Administration 
Regulations, 15 CFR parts 730 through 774, or to the exportation of 
goods (including software) or technology for use in the transmission of 
any data, or to the provision, sale, or leasing of capacity on 
telecommunications transmission facilities (such as satellite or 
terrestrial network connectivity) for use in the transmission of any 
data. The exportation of such items or services and the provision, 
sale, or leasing of such capacity or facilities to Syria or to the 
Government of Syria or any other person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a) are prohibited.

    Note 1 to paragraph (b)(3) of Sec.  542.211: See Sec.  542.510 
for a general license authorizing the exportation or reexportation 
of certain items and services to Syria.


    Note 2 to paragraph (b)(3) of Sec.  542.211:  See Sec.  542.511 
for a general license authorizing the exportation to persons in 
Syria of certain services incident to the exchange of personal 
communications over the Internet.

    (c) Travel. Except as set forth in paragraph (e) of this section, 
the prohibitions contained in this part do not apply to transactions 
ordinarily incident to travel to or from any country, including 
importation or exportation of accompanied baggage for personal use, 
maintenance within any country including payment of living expenses and 
acquisition of goods or services for personal use, and arrangement or 
facilitation of such travel including nonscheduled air, sea, or land 
voyages.
    (d) Official business. The prohibitions contained in this part, 
other than those in Sec.  542.201(a)(2), do not apply to transactions 
for the conduct of the official business of the Federal Government by 
employees, grantees, or contractors thereof.

    Note to paragraph (d) of Sec.  542.211:  See Sec.  542.522 for a 
general license authorizing transactions for the conduct of the 
official business of the Federal Government prohibited by Sec.  
542.201(a)(2).

    (e) The exemptions described in this section do not apply to any 
transactions involving property or interests in property of certain 
persons whose property and interests in property are blocked pursuant 
to E.O. 13399.

    Note to paragraph (e) of Sec.  542.211:  As of the date of 
publication in the Federal Register, no persons have been designated 
by OFAC pursuant to E.O. 13399.

Subpart C--General Definitions


Sec.  542.300  Applicability of definitions.

    The definitions in this subpart apply throughout the entire part.


Sec.  542.301  Blocked account; blocked property.

    The terms blocked account and blocked property shall mean any 
account or property subject to the prohibitions in Sec.  542.201 held 
in the name of the Government of Syria or any other person whose 
property and interests in property are blocked pursuant to Sec.  
542.201(a), 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 an 
authorization or license from OFAC expressly authorizing such action.

    Note to Sec.  542.301:  See Sec.  542.411 concerning the blocked 
status of property and interests in property of an entity that is 50 
percent or more owned by a person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a).

Sec.  542.302  Effective date.

    The term effective date refers to the effective date of the 
applicable prohibitions and directives contained in this part as 
follows:
    (a) With respect to prohibited transfers or other dealings in 
blocked property and interests in property of the Government of Syria, 
as defined in Sec.  542.305, 12:01 a.m. eastern daylight time, August 
18, 2011;
    (b) With respect to a person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a)(2)(i), 1:00 p.m. 
eastern daylight time, April 29, 2011, for persons listed in the Annex 
to Executive Order 13572 of April 29, 2011, and 1:00 p.m. eastern 
daylight time, May 18, 2011, for persons listed in the Annex to 
Executive Order 13573 of May 18, 2011;
    (c) With respect to a person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a)(3)(i), 12:01 a.m. 
eastern daylight time, April 23, 2012;
    (d) With respect to a person whose property and interests in 
property are otherwise blocked pursuant to Sec.  542.201(a), the 
earlier of the date of actual or constructive notice that such person's 
property and interests in property are blocked; and
    (e) With respect to the prohibitions set forth in Sec. Sec.  
542.206 through 542.210, 12:01 a.m. eastern daylight time, August 18, 
2011.


Sec.  542.303  Entity.

    The term entity means a partnership, association, trust, joint 
venture, corporation, group, subgroup, or other organization.


Sec.  542.304  Financial, material, or technological support.

    The term financial, material, or technological support, as used in 
Sec.  542.201(a)(1)(i), (a)(2)(ii)(L), and (a)(3)(ii)(C), means any 
property, tangible or intangible, including but not limited to 
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 
definition 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.  542.305  Government of Syria.

    The term Government of Syria includes:
    (a) The state and the Government of the Syrian Arab Republic, as 
well as any political subdivision, agency, or instrumentality thereof, 
including the Central Bank of Syria;
    (b) Any entity owned or controlled, directly or indirectly, by the 
foregoing, including any corporation, partnership, association, or 
other entity in which the Government of Syria owns a 50 percent or 
greater interest or a controlling interest, and any entity which is 
otherwise controlled by that government;
    (c) Any person that is, or has been, acting or purporting to act, 
directly or indirectly, for or on behalf of any of the foregoing; and
    (d) Any other person determined by OFAC to be included within 
paragraphs (a) through (c) of this section.

    Note 1 to Sec.  542.305: The names of persons that OFAC has 
determined fall within this definition are published in the Federal 
Register and incorporated into OFAC's Specially Designated Nationals 
and Blocked Persons List (``SDN List'') with the identifier 
``[SYRIA].'' The SDN List is accessible through the following page 
on OFAC's Web site: www.treasury.gov/sdn. However, the property and 
interests in property of persons falling within the definition of 
the term Government of Syria are blocked pursuant to

[[Page 25422]]

Sec.  542.201(a) regardless of whether the names of such persons are 
published in the Federal Register or incorporated into the SDN List.


    Note 2 to Sec.  542.305: Section 501.807 of this chapter 
describes the procedures to be followed by persons seeking 
administrative reconsideration of OFAC's determination that they 
fall within the definition of the term Government of Syria.

Sec.  542.306  Information and communications technology.

    The term information and communications technology means any 
hardware, software, or other product or service primarily intended to 
fulfill or enable the function of information processing and 
communication by electronic means, including transmission and display, 
including via the Internet.


Sec.  542.307  Information or informational materials.

    (a) The term information or informational materials includes, but 
is not limited to, publications, films, posters, phonograph records, 
photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, 
artworks, and news wire feeds.

    Note to paragraph (a) of Sec.  542.307: To be considered 
information or informational materials, artworks must be classified 
under chapter subheading 9701, 9702, or 9703 of the Harmonized 
Tariff Schedule of the United States.

    (b) The term information or informational materials, with respect 
to exports, does not include items:
    (1) That were, as of April 30, 1994, or that thereafter become, 
controlled for export pursuant to section 5 of the Export 
Administration Act of 1979, 50 U.S.C. App. 2401-2420 (1979) (the 
``EAA''), or section 6 of the EAA to the extent that such controls 
promote the nonproliferation or antiterrorism policies of the United 
States; or
    (2) With respect to which acts are prohibited by 18 U.S.C. chapter 
37.


Sec.  542.308  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.  542.309  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 Web site: 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 Web site: www.treasury.gov/ofac.

    Note to Sec.  542.309: See Sec.  501.801 of this chapter on 
licensing procedures.

Sec.  542.310  Loans or other extensions of credit.

    The term loans or other extensions of credit means any transfer or 
extension of funds or credit on the basis of an obligation to repay, or 
any assumption or guarantee of the obligation of another to repay an 
extension of funds or credit, including but not limited to: Overdrafts; 
currency swaps; purchases of debt securities issued by the Government 
of Syria; purchases of a loan made by another person; sales of 
financial assets subject to an agreement to repurchase; renewals or 
refinancings whereby funds or credits are transferred to or extended to 
a prohibited borrower or prohibited recipient; the issuance of standby 
letters of credit; and drawdowns on existing lines of credit.


Sec.  542.311  New investment.

    The term new investment means a transaction after 12:01 a.m. 
eastern daylight time, August 18, 2011, that constitutes:
    (a) A commitment or contribution of funds or other assets; or
    (b) A loan or other extension of credit as defined in Sec.  
542.310.


Sec.  542.312  OFAC.

    The term OFAC means the Department of the Treasury's Office of 
Foreign Assets Control.


Sec.  542.313  Person.

    The term person means an individual or entity.


Sec.  542.314  Petroleum or petroleum products of Syrian origin.

    The term petroleum or petroleum products of Syrian origin means 
petroleum or petroleum products of Syrian origin pursuant to Country of 
Origin definitions of U.S. Customs and Border Protection.


Sec.  542.315  Property; property interest.

    The terms property and property interest include, but are not 
limited to, 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.  542.316  Syria; Syrian.

    The term Syria means the territory of Syria and any other territory 
or marine area, including the exclusive economic zone and continental 
shelf, over which the Government of Syria claims sovereignty, sovereign 
rights, or jurisdiction, provided that the Government of Syria 
exercises partial or total de facto control over the area or derives a 
benefit from economic activity in the area pursuant to an international 
agreement. The term Syrian means pertaining to Syria, as defined in 
this section.


Sec.  542.317  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

[[Page 25423]]

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.  542.318  United States.

    The term United States means the United States, its territories and 
possessions, and all areas under the jurisdiction or authority thereof.


Sec.  542.319  United States person; U.S. person.

    The term United States person or U.S. 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.


Sec.  542.320  U.S. depository institution.

    The term U.S. depository institution means any entity (including 
its foreign branches) organized under the laws of the United States or 
any jurisdiction within the United States, or any agency, office, or 
branch located in the United States of a foreign entity, that is 
engaged primarily in the business of banking (for example, banks, 
savings banks, savings associations, credit unions, trust companies, 
and United States bank holding companies) and is subject to regulation 
by federal or state banking authorities.


Sec.  542.321  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 a loan or other extension of credit, 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 
banks, 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 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.


Sec.  542.322  U.S. registered broker or dealer in securities.

    The term U.S. registered broker or dealer in securities means any 
U.S. citizen, permanent resident alien, or entity organized under the 
laws of the United States or of any jurisdiction within the United 
States (including its foreign branches), or any agency, office, or 
branch of a foreign entity located in the United States, that:
    (a) Is a ``broker'' or ``dealer'' in securities within the meanings 
set forth in the Securities Exchange Act of 1934;
    (b) Holds or clears customer accounts; and
    (c) Is registered with the Securities and Exchange Commission under 
the Securities Exchange Act of 1934.


Sec.  542.323  U.S. registered money transmitter.

    The term U.S. registered money transmitter means any U.S. citizen, 
permanent resident alien, or entity organized under the laws of the 
United States or of any jurisdiction within the United States, 
including its foreign branches, or any agency, office, or branch of a 
foreign entity located in the United States, that is a money 
transmitter, as defined in 31 CFR 1010.100(ff)(5), and that is 
registered pursuant to 31 CFR 1022.380.

Subpart D--Interpretations


Sec.  542.401  Reference to amended sections.

    Except as otherwise specified, reference to any provision in or 
appendix to this part or chapter or to any regulation, ruling, order, 
instruction, directive, or license issued pursuant to this part refers 
to the same as currently amended.


Sec.  542.402  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.  542.403  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 the Government of Syria or any other person whose 
property and interests in property are blocked pursuant to Sec.  
542.201(a), such property shall no longer be deemed to be property 
blocked pursuant to Sec.  542.201(a), unless there exists in the 
property another interest that is blocked pursuant to Sec.  542.201(a), 
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 the 
Government of Syria or any other person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a), such property shall 
be deemed to be property in which such a person has an interest and 
therefore blocked.


Sec.  542.404  Transactions ordinarily incident to a licensed 
transaction.

    (a) Any transaction ordinarily incident to a licensed transaction 
and necessary to give effect thereto is also authorized, except:
    (1) An ordinarily incident transaction, not explicitly authorized 
within the terms of the license, by or with the Government of Syria or 
any other person whose property and interests in property are blocked 
pursuant to Sec.  542.201(a); or
    (2) 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.
    (b) Example. A license authorizing a person to complete a 
securities sale involving Company A, whose property and interests in 
property are blocked pursuant to Sec.  542.201(a), also authorizes 
other persons to engage in activities that are ordinarily incident and 
necessary to complete the sale, including transactions by the buyer, 
broker, transfer agents, and banks, provided that such other persons 
are not themselves persons whose property and interests in property are 
blocked pursuant to Sec.  542.201(a).


Sec.  542.405  Exportation, reexportation, sale, or supply of services; 
provision of services.

    (a) The prohibition on the exportation, reexportation, sale, or 
supply of services contained in Sec.  542.207 applies to services 
performed

[[Page 25424]]

on behalf of a person in Syria or the Government of Syria or where the 
benefit of such services is otherwise received in Syria, if such 
services are performed:
    (1) In the United States, or
    (2) Outside the United States by a United States person, including 
by a foreign branch of an entity located in the United States.
    (b) The benefit of services performed anywhere in the world on 
behalf of the Government of Syria is presumed to be received in Syria.
    (c) The prohibitions contained in Sec.  542.201 apply to services 
performed in the United States or by U.S. persons, wherever located, 
including by a foreign branch of an entity located in the United 
States:
    (1) On behalf of or for the benefit of the Government of Syria or 
any other person whose property and interests in property are blocked 
pursuant to Sec.  542.201(a);
    (2) With respect to property interests of the Government of Syria 
or any other person whose property and interests in property are 
blocked pursuant to Sec.  542.201(a).
    (d) Examples. (1) U.S. persons may not, except as authorized by or 
pursuant to this part, provide legal, accounting, financial, brokering, 
freight forwarding, transportation, public relations, or other services 
to any person in Syria or to the Government of Syria or any other 
person whose property and interests in property are blocked pursuant to 
Sec.  542.201(a).
    (2) A U.S. person is engaged in a prohibited exportation of 
services to Syria when it extends credit to a third-country firm 
specifically to enable that firm to manufacture goods for sale to Syria 
or the Government of Syria.

    Note to Sec.  542.405: See Sec. Sec.  542.507 and 542.531 on 
licensing policy with regard to the provision of certain legal and 
medical services.

Sec.  542.406  Offshore transactions involving blocked property.

    The prohibitions in Sec.  542.201 on transactions or dealings 
involving blocked property apply to transactions by any U.S. person in 
a location outside the United States with respect to property held in 
the name of the Government of Syria or any other person whose property 
and interests in property are blocked pursuant to Sec.  542.201(a).


Sec.  542.407  Payments from blocked accounts to satisfy obligations 
prohibited.

    Pursuant to Sec.  542.201, no debits may be made to a blocked 
account to pay obligations to U.S. persons or other persons, except as 
authorized by or pursuant to this part.

    Note to Sec.  542.407: See also Sec.  542.502(e), which provides 
that no license or other authorization contained in or issued 
pursuant to this part authorizes transfers of or payments from 
blocked property or debits to blocked accounts unless the license or 
other authorization explicitly authorizes the transfer of or payment 
from blocked property or the debit to a blocked account.

Sec.  542.408  Charitable contributions.

    Unless specifically authorized by OFAC pursuant to this part, no 
charitable contribution of funds, goods, services, or technology, 
including contributions to relieve human suffering, such as food, 
clothing, or medicine, may be made by, to, or for the benefit of, or 
received from, the Government of Syria or any other person whose 
property and interests in property are blocked pursuant to Sec.  
542.201(a). For the purposes of this part, a contribution is made by, 
to, or for the benefit of, or received from, the Government of Syria or 
any other person whose property and interests in property are blocked 
pursuant to Sec.  542.201(a) if made by, to, or in the name of, or 
received from or in the name of, such a person; if made by, to, or in 
the name of, or received from or in the name of, an entity or 
individual acting for or on behalf of, or owned or controlled by, such 
a person; or if made in an attempt to violate, to evade, or to avoid 
the bar on the provision of contributions by, to, or for the benefit of 
such a person, or the receipt of contributions from such a person.


Sec.  542.409  Credit extended and cards issued by U.S. financial 
institutions.

    The prohibition in Sec.  542.201 on dealing in property subject to 
that section and the prohibition in Sec.  542.207 on exporting services 
to Syria prohibit U.S. financial institutions from performing under any 
existing credit agreements, including, but not limited to, charge 
cards, debit cards, or other credit facilities issued by a U.S. 
financial institution to the Government of Syria or any other person 
whose property and interests in property are blocked pursuant to Sec.  
542.201(a).


Sec.  542.410  Setoffs prohibited.

    A setoff against blocked property (including a blocked account), 
whether by a U.S. bank or other U.S. person, is a prohibited transfer 
under Sec.  542.201 if effected after the effective date.


Sec.  542.411  Entities owned by a person whose property and interests 
in property are blocked.

    A person whose property and interests in property are blocked 
pursuant to Sec.  542.201(a) has an interest in all property and 
interests in property of an entity in which it owns, directly or 
indirectly, 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.  542.201(a), regardless of whether the entity 
itself is listed in the Annex to Executive Order 13572, the Annex to 
Executive Order 13573, or the Annex to Executive Order 13606, or 
designated pursuant to Sec.  542.201(a).

    Note to Sec.  542.411: This section, which deals with the 
consequences of ownership of entities, in no way limits the 
definition of the Government of Syria in Sec.  542.305, which 
includes within its definition other persons whose property and 
interests in property are blocked but who are not on the SDN list.

Sec.  542.412  Transactions relating to Syrian petroleum or petroleum 
products from third countries; transshipments.

    (a) Transactions relating to goods containing petroleum or 
petroleum products of Syrian origin are not prohibited by Sec.  542.208 
or Sec.  542.209 if the petroleum or petroleum products have been 
incorporated into manufactured products or substantially transformed in 
a third country by a person other than a United States person.
    (b) Transactions relating to petroleum or petroleum products of 
Syrian origin that have not been incorporated into manufactured 
products or substantially transformed in a third country, including 
those that have been transshipped through a third country, are 
prohibited.


Sec.  542.413  Facilitation; change of policies and procedures; 
referral of business opportunities offshore.

    With respect to Sec.  542.210, a prohibited facilitation or 
approval of a transaction by a foreign person occurs, among other 
instances, when a United States person:
    (a) Alters its operating policies or procedures, or those of a 
foreign affiliate, to permit a foreign affiliate to accept or perform a 
specific contract, engagement or transaction involving Syria or the 
Government of Syria without the approval of the United States person, 
where such transaction previously required approval by the United 
States person and such transaction by the foreign affiliate

[[Page 25425]]

would be prohibited by this part if performed directly by a United 
States person or from the United States;
    (b) Refers to a foreign person purchase orders, requests for bids, 
or similar business opportunities involving Syria or the Government of 
Syria to which the United States person could not directly respond as a 
result of the prohibitions contained in this part; or
    (c) Changes the operating policies and procedures of a particular 
affiliate with the specific purpose of facilitating transactions that 
would be prohibited by this part if performed by a United States person 
or from the United States.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  542.501  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 Syria sanctions page on OFAC's Web site 
www.treasury.gov/ofac.


Sec.  542.502  Effect of license or authorization.

    (a) No license or other authorization contained in this part, or 
otherwise issued by OFAC, authorizes or validates any transaction 
effected prior to the issuance of such license or other authorization, 
unless specifically provided in such license or authorization.
    (b) No regulation, ruling, instruction, or license authorizes any 
transaction prohibited under this part unless the regulation, ruling, 
instruction, or license is issued by OFAC and specifically refers to 
this part. No regulation, ruling, instruction, or license referring to 
this part shall be deemed to authorize any transaction prohibited by 
any other part of this chapter unless the regulation, ruling, 
instruction, or license specifically refers to such part.
    (c) Any regulation, ruling, instruction, or license authorizing any 
transaction otherwise prohibited under this part has the effect of 
removing a prohibition contained in this part from the transaction, but 
only to the extent specifically stated by its terms. Unless the 
regulation, ruling, instruction, or license otherwise specifies, such 
an authorization does not create any right, duty, obligation, claim, or 
interest in, or with respect to, any property which would not otherwise 
exist under ordinary principles of law.
    (d) Nothing contained in this part shall be construed to supersede 
the requirements established under any other provision of law or to 
relieve a person from any requirement to obtain a license or other 
authorization from another department or agency of the U.S. Government 
in compliance with applicable laws and regulations subject to the 
jurisdiction of that department or agency. For example, exports of 
goods, services, or technical data which are not prohibited by this 
part or which do not require a license by OFAC, nevertheless may 
require authorization by the U.S. Department of Commerce, the U.S. 
Department of State, or other agencies of the U.S. Government. See also 
Sec.  542.701(f).
    (e) No license or other authorization contained in or issued 
pursuant to this part authorizes transfers of or payments from blocked 
property or debits to blocked accounts unless the license or other 
authorization explicitly authorizes the transfer of or payment from 
blocked property or the debit to a blocked account.
    (f) Any payment relating to a transaction authorized in or pursuant 
to this part that is routed through the U.S. financial system should 
reference the relevant OFAC general or specific license authorizing the 
payment to avoid the blocking or rejection of the transfer.


Sec.  542.503  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.  542.504  Payments and transfers to blocked accounts in U.S. 
financial institutions.

    Any payment of funds or transfer of credit in which the Government 
of Syria or any other person whose property and interests in property 
are blocked pursuant to Sec.  542.201(a) 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 to Sec.  542.504: See Sec.  501.603 of this chapter for 
mandatory reporting requirements regarding financial transfers. See 
also Sec.  542.203 concerning the obligation to hold blocked funds 
in interest-bearing accounts.

Sec.  542.505  Entries in certain accounts for normal service charges 
authorized.

    (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.
    (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.

    Note to Sec.  542.505:  See Sec.  542.515 which authorizes, 
subject to certain restrictions, the operation of an account in a 
U.S. financial institution for an individual in Syria other than an 
individual whose property and interests in property are blocked 
pursuant to Sec.  542.201(a).

Sec.  542.506  Investment and reinvestment of certain funds authorized.

    Subject to the requirements of Sec.  542.203, U.S. financial 
institutions are authorized to invest and reinvest assets blocked 
pursuant to Sec.  542.201(a), subject to the following conditions:
    (a) The assets representing such investments and reinvestments are 
credited to a blocked account or subaccount that is held in the same 
name at the same U.S. financial institution, or within the possession 
or control of a U.S. person, but funds shall not be transferred outside 
the United States for this purpose;
    (b) The proceeds of such investments and reinvestments shall not be 
credited to a blocked account or subaccount under any name or 
designation that differs from the name or designation of the specific 
blocked account or subaccount in which such funds or securities were 
held; and
    (c) No immediate financial or economic benefit accrues (e.g., 
through pledging or other use) to the

[[Page 25426]]

Government of Syria or any other person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a).


Sec.  542.507  Provision of certain legal services authorized.

    (a) The provision of the following legal services to or on behalf 
of the Government of Syria or any other person whose property and 
interests in property are blocked pursuant to Sec.  542.201(a), or to 
or on behalf of a person in Syria, or in circumstances in which the 
benefit is otherwise received in Syria is authorized, provided that 
receipt of payment of professional fees and reimbursement of incurred 
expenses are authorized by or pursuant to paragraph (d) of this section 
or otherwise authorized 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 United States federal, state, or local court or agency;
    (3) Initiation and conduct of legal, arbitration, or administrative 
proceedings before any United States 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 or Syria; 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 the Government of 
Syria or any other person whose property and interests in property are 
blocked pursuant to Sec.  542.201(a), or to or on behalf of a person in 
Syria, or in circumstances in which the benefit is otherwise received 
in Syria, not otherwise authorized in this part, requires the issuance 
of a specific license.
    (c) 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.  542.201(a) is prohibited unless licensed 
pursuant to this part.
    (d) Receipts of payment. (1) Legal services to or on behalf of 
blocked persons. All receipts of payment of professional fees and 
reimbursement of incurred expenses for the provision of legal services 
authorized pursuant to paragraph (a) of this section to or on behalf of 
the Government of Syria or any other person whose property and 
interests in property are blocked pursuant to Sec.  542.201(a) must be 
specifically licensed or otherwise authorized pursuant to Sec.  
542.508, which authorizes certain payments from funds originating 
outside the United States.
    (2) Legal services to or on behalf of all others. All receipts of 
payment of professional fees and reimbursement of incurred expenses for 
the provision of legal services authorized pursuant to paragraph (a) of 
this section to or on behalf of a person in Syria, or in circumstances 
in which the benefit is otherwise received in Syria, other than those 
described in paragraph (d)(1) of this section, are authorized, except 
that nothing in this section authorizes the debiting of any blocked 
account or the transfer of any blocked property.

    Note to Sec.  542.507: 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 a limited 
amount of blocked funds for the payment of legal fees where 
alternative funding sources are not available. For more information, 
see OFAC's Guidance on the Release of Limited Amounts of Blocked 
Funds for Payment of Legal Fees and Costs Incurred in Challenging 
the Blocking of U.S. Persons in Administrative or Civil Proceedings, 
which is available on OFAC's Web site at: www.treasury.gov/ofac.

Sec.  542.508  Payments from funds originating outside the United 
States authorized.

    Receipts of payment of professional fees and reimbursement of 
incurred expenses for the provision of legal services authorized 
pursuant to Sec.  542.507(a) to or on behalf of the Government of Syria 
or any other person whose property and interests in property are 
blocked pursuant to Sec.  542.201(a) are authorized from funds 
originating outside the United States, provided that:
    (a) Prior to receiving payment for legal services authorized 
pursuant to Sec.  542.507(a) rendered to the Government of Syria or any 
other person whose property and interests in property are blocked 
pursuant to Sec.  542.201(a), the U.S. person that is an attorney, law 
firm, or legal services organization provides to OFAC a copy of a 
letter of engagement or a letter of intent to engage specifying the 
services to be performed and signed by the individual to whom such 
services are to be provided or, where services are to be provided to an 
entity, by a legal representative of the entity. The copy of a letter 
of engagement or a letter of intent to engage, accompanied by 
correspondence referencing this paragraph (a), is to be mailed to: 
Licensing Division, Office of Foreign Assets Control, U.S. Department 
of the Treasury, 1500 Pennsylvania Avenue NW., Annex, Washington, DC 
20220;
    (b) The funds received by U.S. persons as payment of professional 
fees and reimbursement of incurred expenses for the provision of legal 
services authorized pursuant to Sec.  542.507(a) must not originate 
from:
    (1) A source within the United States;
    (2) Any source, wherever located, within the possession or control 
of a U.S. person; or
    (3) Any individual or entity, other than the person on whose behalf 
the legal services authorized pursuant to Sec.  542.507(a) are to be 
provided, whose property and interests in property are blocked pursuant 
to any part of this chapter or any Executive order.

    Note to paragraph (b) of Sec.  542.508: This paragraph 
authorizes the blocked person on whose behalf the legal services 
authorized pursuant to Sec.  542.507(a) are to be provided to make 
payments for authorized legal services using funds originating 
outside the United States that were not previously blocked. Nothing 
in this paragraph authorizes payments for legal services using funds 
in which any other person whose property and interests in property 
are blocked pursuant to Sec.  542.201(a), any other part of this 
chapter, or any Executive order holds an interest.

    (c) Reports. (1) U.S. persons who receive payments in connection 
with legal services authorized pursuant to Sec.  542.507(a) must submit 
quarterly reports no later than 30 days following the end of the 
calendar quarter 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) In the event that no transactions occur or no funds are 
received during

[[Page 25427]]

the reporting period, a statement is to be filed to that effect; and
    (3) The reports, which must reference this section, are to be 
mailed to: Licensing Division, Office of Foreign Assets Control, U.S. 
Department of the Treasury, 1500 Pennsylvania Avenue NW., Annex, 
Washington, DC 20220.

    Note 1 to Sec.  542.508: U.S. persons who receive payments in 
connection with legal services authorized pursuant to Sec.  
542.507(a) 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. 
Additionally, U.S. persons do not need to obtain specific 
authorization to provide related services that are ordinarily 
incident to the provision of legal services authorized pursuant to 
Sec.  542.507(a).


    Note 2 to Sec.  542.508: Any payment authorized in or pursuant 
to this paragraph that is routed through the U.S. financial system 
should reference this Sec.  542.508 to avoid the blocking of the 
transfer.


    Note 3 to Sec.  542.508: Nothing in this section authorizes the 
transfer of any blocked property, the debiting of any blocked 
account, the entry of any judgment or order that effects a transfer 
of blocked property, or the execution of any judgment against 
property blocked pursuant to any part of this chapter or any 
Executive order.

Sec.  542.509  Syrian diplomatic missions in the United States.

    (a) The provision of goods or services in the United States to the 
diplomatic missions of the Government of Syria to the United States and 
to international organizations in the United States and payment for 
such goods or services are authorized, provided that:
    (1) The goods or services are for the conduct of the official 
business of the missions, or for personal use of the employees of the 
missions, and are not for resale;
    (2) The transaction does not involve the purchase, sale, financing, 
or refinancing of real property; and
    (3) The transaction is not otherwise prohibited by law.

    Note 1 to paragraph (a) of Sec.  542.509: U.S. financial 
institutions are reminded of their obligation to comply with 31 CFR 
501.603.


    Note 2 to paragraph (a) of Sec.  542.509: U.S. financial 
institutions are required to obtain specific licenses to operate 
accounts for, or extend credit to, the diplomatic missions of the 
Government of Syria to the United States and to international 
organizations in the United States.

    (b) The provision of goods or services in the United States to the 
employees of the diplomatic missions of the Government of Syria to the 
United States and to international organizations in the United States 
and payment for such goods or services are authorized, provided that:
    (1) The goods or services are for personal use of the employees of 
the missions, and are not for resale; and
    (2) The transaction is not otherwise prohibited by law.

    Note to Sec.  542.509: Nothing in this section authorizes the 
transfer of any property to the Government of Syria, or any other 
person whose property and interests in property are blocked pursuant 
to Sec.  542.201(a), other than the diplomatic missions of the 
Government of Syria to the United States and to international 
organizations in the United States.

Sec.  542.510  Exports or reexports to Syria of items licensed or 
otherwise authorized by the Department of Commerce authorized; exports 
or reexports of certain services authorized.

    (a) The exportation or reexportation of items to Syria from the 
United States or by a U.S. person, wherever located, to the Government 
of Syria or any other person whose property and interests in property 
are blocked pursuant to Sec.  542.201(a), and all transactions 
ordinarily incident thereto, are authorized, provided that the 
exportation or reexportation of such items to Syria is licensed or 
otherwise authorized by the Department of Commerce.
    (b) The exportation, reexportation, sale, or supply, directly or 
indirectly, from the United States or by a U.S. person, wherever 
located, to Syria, including to the Government of Syria or any other 
person whose property and interests in property are blocked pursuant to 
Sec.  542.201(a), of services that are ordinarily incident to the 
exportation or reexportation of items to Syria, or of services to 
install, repair, or replace such items, is authorized, provided that 
the exportation or reexportation of such items to Syria is licensed or 
otherwise authorized by the Department of Commerce.
    (c) This section does not authorize any debit to a blocked account.

    Note to Sec.  542.510: This section does not authorize the 
exportation or reexportation of any item not subject to the Export 
Administration Regulations, 15 CFR parts 730-774 (the ``EAR''), or 
the exportation or reexportation of services related thereto. See 15 
CFR 734.3 for a definition of ``items subject to the EAR.'' See 31 
CFR 542.525 for a general license authorizing the exportation or 
reexportation of services to Syria related to the exportation or 
reexportation of certain non-U.S.-origin goods.

Sec.  542.511  Exportation of certain services incident to Internet-
based communications authorized.

    (a) To the extent that such transactions are not exempt from the 
prohibitions of this part, and except as provided in paragraph (b) of 
this section, the exportation from the United States or by U.S. 
persons, wherever located, to persons in Syria of services incident to 
the exchange of personal communications over the Internet, such as 
instant messaging, chat and email, social networking, sharing of photos 
and movies, web browsing, and blogging, is authorized, provided that 
such services are publicly available at no cost to the user.
    (b) This section does not authorize:
    (1) The direct or indirect exportation of services with knowledge 
or reason to know that such services are intended for the Government of 
Syria or any other person whose property and interests in property are 
blocked pursuant to Sec.  542.201(a);
    (2) The direct or indirect exportation of Internet connectivity 
services or telecommunications transmission facilities (such as 
satellite or terrestrial network connectivity);
    (3) The direct or indirect exportation of web-hosting services that 
are for purposes other than personal communications (e.g., web-hosting 
services for commercial endeavors) or of domain name registration 
services; or
    (4) The direct or indirect exportation of any items to Syria.

    Note to paragraph (b)(4) of Sec.  542.511: See Sec.  542.510 for 
a general license authorizing the exportation or reexportation of 
certain items and services to Syria.

    (c) Specific licenses may be issued on a case-by-case basis for the 
exportation of other, including fee-based, services incident to the 
sharing of information over the Internet.


Sec.  542.512  Noncommercial, personal remittances authorized.

    (a)(1) U.S. persons are authorized to send and receive, and U.S. 
depository institutions, U.S. registered brokers or dealers in 
securities, and U.S. registered money transmitters are authorized to 
process transfers of, funds to or from Syria or for or on behalf of an 
individual ordinarily resident in Syria in cases in which the transfer 
involves a noncommercial, personal remittance, provided the transfer is 
not by, to, or through the Government of Syria or any other person 
whose property and interests in property are blocked pursuant to Sec.  
542.201(a).
    (2) Noncommercial, personal remittances do not include charitable 
donations of funds to or for the benefit

[[Page 25428]]

of an entity or funds transfers for use in supporting or operating a 
business, including a family-owned business.
    (b) The transferring institutions identified in paragraph (a) of 
this section may rely on the originator of a funds transfer with regard 
to compliance with paragraph (a) of this section, provided that the 
transferring institution does not know or have reason to know that the 
funds transfer is not in compliance with paragraph (a) of this section.
    (c) An individual who is a U.S. person is authorized to carry funds 
as a noncommercial, personal remittance, as described in paragraph (a) 
of this section, to an individual in Syria or ordinarily resident in 
Syria, other than an individual whose property and interests in 
property are blocked pursuant to Sec.  542.201(a), provided that the 
individual who is a U.S. person is carrying the funds on his or her 
behalf, but not on behalf of another person.


Sec.  542.513  Official activities of certain international 
organizations authorized.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
all transactions and activities otherwise prohibited by this part that 
are for the conduct of the official business of the United Nations, its 
Specialized Agencies, Programmes, Funds, and Related Organizations by 
employees, contractors, or grantees thereof are authorized.

    Note 1 to paragraph (a) of Sec.  542.513: See the United Nations 
System Organizational Chart at http://www.un.org/en/aboutun/structure/pdfs/un-system-chart-color-sm.pdf for a listing of 
Specialized Agencies, Programmes, Funds, and Related Organizations 
of the United Nations.

    (b) Contractors or grantees conducting transactions authorized 
pursuant to paragraph (a) of this section must provide a copy of their 
contract or grant with the United Nations, or its Specialized Agencies, 
Programmes, Funds, and Related Organizations to any U.S. person before 
the U.S. person engages in or facilitates any transaction or activity 
prohibited by this part. If the contract or grant contains any 
sensitive or proprietary information, such information may be redacted 
or removed from the copy given to the U.S. person, provided that the 
information is not necessary to demonstrate that the transaction is 
authorized pursuant to paragraph (a) of this section.
    (c) This section does not authorize any transactions or activities 
with or involving persons whose property and interests in property are 
blocked pursuant to Sec.  542.201(a), other than the Government of 
Syria.

    Note to Sec.  542.513: See Sec.  542.510 for a general license 
authorizing the exportation or reexportation of certain items and 
services to Syria.

Sec.  542.514  Transactions related to U.S. persons residing in Syria 
authorized.

    (a) Except as provided in paragraph (b) of this section, 
individuals who are U.S. persons residing in Syria are authorized to 
pay their personal living expenses in Syria and to engage in other 
transactions, including with the Government of Syria, otherwise 
prohibited by this part that are ordinarily incident and necessary to 
their personal maintenance within Syria, including, but not limited to, 
payment of housing expenses, acquisition of goods or services for 
personal use, payment of taxes or fees to the Government of Syria, and 
purchase or receipt of permits, licenses, or public utility services 
from the Government of Syria.
    (b) This section does not authorize:
    (1) Any debit to a blocked account of the Government of Syria on 
the books of a U.S. financial institution or to any other account 
blocked pursuant to Sec.  542.201(a);
    (2) Any transaction with a person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a) other than the 
Government of Syria; or
    (3) Transactions or services ordinarily incident to operating or 
supporting a business in Syria, employment in Syria, or any new 
investment in Syria prohibited by Sec.  542.206.


Sec.  542.515  Operation of accounts authorized.

    The operation of an account in a U.S. financial institution for an 
individual in Syria other than an individual whose property and 
interests in property are blocked pursuant to Sec.  542.201(a), is 
authorized, provided that transactions processed through the account:
    (a) Are of a personal nature and not for use in supporting or 
operating a business;
    (b) Do not involve transfers directly or indirectly to Syria or for 
the benefit of individuals ordinarily resident in Syria unless 
authorized by Sec.  542.512; and
    (c) Are not otherwise prohibited by this part.


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

    (a) Nongovernmental organizations are authorized to export or 
reexport services to Syria that would otherwise be prohibited by Sec.  
542.207 in support of the following not-for-profit activities:
    (1) Activities to support humanitarian projects to meet basic human 
needs in Syria, including, but not limited to, drought relief, 
assistance to refugees, internally displaced persons, and conflict 
victims, food and medicine distribution, and the provision of health 
services;
    (2) Activities to support democracy building in Syria, including, 
but not limited to, rule of law, citizen participation, government 
accountability, and civil society development projects;
    (3) Activities to support education in Syria, including, but not 
limited to, combating illiteracy, increasing access to education, and 
assisting education reform projects;
    (4) Activities to support non-commercial development projects 
directly benefiting the Syrian people, including, but not limited to, 
preventing infectious disease and promoting maternal/child health, 
sustainable agriculture, and clean water assistance; and
    (5) Activities to support the preservation and protection of 
cultural heritage sites in Syria, including, but not limited to, 
museums, historic buildings, and archaeological sites.
    (b) U.S. depository institutions, U.S. registered brokers or 
dealers in securities, and U.S. registered money transmitters are 
authorized to process transfers of funds on behalf of U.S. or third-
country non-governmental organizations to or from Syria in support of 
the activities authorized by paragraph (a), provided that, except as 
authorized by paragraph (d) of this section, the transfer is not by, 
to, or through the Government of Syria or any other person whose 
property and interests in property are blocked pursuant to Sec.  
542.201(a).
    (c) U.S. persons engaging in transactions pursuant to paragraph 
(a)(5) or processing transfers of funds to or from Syria in support of 
activities authorized by paragraph (a)(5) of this section are required 
to file quarterly reports no later than 30 days following the end of 
the calendar quarter with OFAC. The reports should include complete 
information on all activities and transactions undertaken pursuant to 
paragraph (a)(5) and paragraph (b) in support of the activities 
authorized by paragraph (a)(5) of this section that took place during 
the reporting period, including the parties involved, the value of the 
transactions, the services provided, and the dates of the transactions. 
The reports should be addressed to the Office of Foreign Assets 
Control, Licensing Division, U.S. Treasury Department, 1500

[[Page 25429]]

Pennsylvania Avenue NW.-Annex, Washington, DC 20220.
    (d) Nongovernmental organizations are authorized to engage in 
transactions with the Government of Syria that are necessary for the 
activities authorized by paragraph (a) of this section, including, but 
not limited to, payment of taxes, fees, and import duties to, and 
purchase or receipt of permits, licenses, or public utility services 
from, the Government of Syria.
    (e) Except as authorized in paragraph (d), this section does not 
authorize the exportation or reexportation of services to, charitable 
donations to or for the benefit of, or any other transactions 
involving, the Government of Syria or any other person whose property 
and interests in property are blocked pursuant to Sec.  542.201(a). 
Specific licenses may be issued on a case-by-case basis for these 
purposes.

    Note to Sec.  542.516: See Sec.  542.510 for a general license 
authorizing the exportation or reexportation of certain items and 
services to Syria.

Sec.  542.517  Third-country diplomatic and consular funds transfers 
authorized.

    U.S. depository institutions, U.S. registered brokers or dealers in 
securities, and U.S. registered money transmitters are authorized to 
process funds transfers for the operating expenses or other official 
business of third-country diplomatic or consular missions in Syria, 
provided that the transfer is not by, to, or through the Government of 
Syria or any other person whose property and interests in property are 
blocked pursuant to Sec.  542.201(a).


Sec.  542.518  Payments for overflights of Syrian airspace or emergency 
landings in Syria authorized.

    Payments to Syria of charges for services rendered by the 
Government of Syria in connection with the overflight of Syria or 
emergency landing in Syria of aircraft owned or operated by a United 
States person or registered in the United States are authorized, 
provided that no payment may be made by, to, or through any person 
whose property and interests in property are blocked pursuant to Sec.  
542.201(a) other than the Government of Syria.


Sec.  542.519  Transactions related to telecommunications and mail 
authorized.

    (a)(1) Except as provided in paragraph (a)(2) of this section, all 
transactions with respect to the receipt and transmission of 
telecommunications involving Syria are authorized, provided that no 
payment pursuant to this section may involve any debit to a blocked 
account of the Government of Syria on the books of a U.S. financial 
institution, or any transaction with a person whose property and 
interests in property are blocked pursuant to Sec.  542.201(a) other 
than the Government of Syria.
    (2) This section does not authorize:
    (i) The provision, sale, or lease of telecommunications equipment 
or technology; or
    (ii) The provision, sale, or lease of capacity on 
telecommunications transmission facilities (such as satellite or 
terrestrial network connectivity).
    (b) All transactions of common carriers incident to the receipt or 
transmission of mail and packages between the United States and Syria 
are authorized, provided that the importation or exportation of such 
mail and packages is exempt from or authorized pursuant to this part.


Sec.  542.520  Certain transactions related to patents, trademarks, 
copyrights, and other intellectual property authorized.

    (a) All of the following transactions in connection with patent, 
trademark, copyright or other intellectual property protection in the 
United States or Syria are authorized, including exportation of 
services to Syria, payment for such services, and payment to persons in 
Syria directly connected to such intellectual property protection:
    (1) The filing and prosecution of any application to obtain a 
patent, trademark, copyright or other form of intellectual property 
protection;
    (2) The receipt of a patent, trademark, copyright, or other form of 
intellectual property protection;
    (3) The renewal or maintenance of a patent, trademark, copyright or 
other form of intellectual property protection;
    (4) The filing and prosecution of opposition or infringement 
proceedings with respect to a patent, trademark, copyright or other 
form of intellectual property protection, or the entrance of a defense 
to any such proceedings; and
    (5) The assignment or transfer of a patent, trademark, copyright, 
or other form of intellectual property protection.
    (b) This section authorizes the payment of fees currently due to 
the United States Government or the Government of Syria, or of the 
reasonable and customary fees and charges currently due to attorneys or 
representatives within the United States or Syria, in connection with 
the transactions authorized in paragraph (a) of this section, except 
that payment effected pursuant to the terms of this paragraph may not 
be made from a blocked account.


Sec.  542.521  Activities and services related to certain nonimmigrant 
and immigrant categories authorized.

    (a) U.S. persons are authorized to engage in all transactions in 
the United States with persons otherwise eligible for non-immigrant 
classification under categories A-3 and G-5 (attendants, servants and 
personal employees of aliens in the United States on diplomatic 
status), D (crewmen), F (students), I (information media 
representatives), J (exchange visitors), M (non-academic students), O 
(aliens with extraordinary ability), P (athletes, artists, and 
entertainers), Q (international cultural exchange visitors), R 
(religious workers), or S (witnesses), to the extent such a visa has 
been granted by the U.S. Department of State or such non-immigrant 
status, or related benefit, has been granted by the U.S. Department of 
Homeland Security.
    (b) U.S. persons are authorized to engage in all transactions in 
the United States with persons otherwise eligible for non-immigrant 
classification under categories E-2 (treaty investor), H (temporary 
worker), or L (intra-company transferee) and all immigrant 
classifications, to the extent such a visa has been granted by the U.S. 
Department of State or such non-immigrant or immigrant status, or 
related benefit, has been granted by the U.S. Department of Homeland 
Security, and provided that the persons are not coming to the United 
States to work as an agent, employee, or contractor of the Government 
of Syria or an entity in Syria.
    (c) U.S. persons are authorized to export services to persons in 
Syria in connection with the filing of an individual's application for 
the visa categories listed in paragraphs (a) and (b) of this section.
    (d)(1) Accredited U.S. graduate and undergraduate degree-granting 
academic institutions are authorized to export services to Syria for 
the filing and processing of applications to enroll, and the acceptance 
of payments for submitted applications to enroll and tuition from 
persons ordinarily resident in Syria, provided that any transfer of 
funds is not by, to, or through the Government of Syria or any other 
person whose property and interests in property are blocked pursuant to 
Sec.  542.201(a).
    (2) In the event services are exported under paragraph (d)(1) of 
this section in connection with an application to enroll that is denied 
or withdrawn, U.S. persons are authorized to transfer, in a lump sum 
back to Syria or to a third country, any funds paid by the applicant in 
connection with such an

[[Page 25430]]

application, provided that any transfer of funds is not by, to, or 
through the Government of Syria or any other person whose property and 
interests in property are blocked pursuant to Sec.  542.201(a).
    (e)(1) U.S. persons are authorized to engage in all transactions 
necessary to export financial services to Syria in connection with an 
individual's application for a non-immigrant visa under category E-2 
(treaty investor) or an immigrant visa under category EB-5 (immigrant 
investor), provided that any transfer of funds is not by, to, or 
through the Government of Syria or any other person whose property and 
interests in property are blocked pursuant to Sec.  542.201(a).
    (2) In the event services are exported under paragraph (e)(1) of 
this section in connection with an application for an E-2 or EB-5 visa 
that is denied, withdrawn, or otherwise does not result in the issuance 
of such visa, U.S. persons are authorized to transfer, in a lump sum 
back to Syria or to a third country, any funds belonging to the 
applicant that are held in an escrow account during the pendency of, 
and in connection with such a visa application, provided that any 
transfer of funds is not by, to, or through the Government of Syria or 
any other person whose property and interests in property are blocked 
pursuant to Sec.  542.201(a).
    (3) Paragraph (d)(1) of this section does not authorize:
    (i) The exportation of financial services by U.S. persons other 
than in connection with funds used in pursuit of an E-2 or EB-5 visa;
    (ii) Any investment in Syria by a U.S. person; or
    (iii) The provision of services to any persons coming to the United 
States to work as an agent, employee, or contractor of the Government 
of Syria or an entity in Syria.


Sec.  542.522  Official business of the Federal Government authorized.

    (a) All transactions otherwise prohibited by Sec.  542.201(a)(2) 
that are for the conduct of the official business of the Federal 
Government by employees, grantees, or contractors thereof, are 
authorized.
    (b) Grantees or contractors conducting transactions authorized 
pursuant to paragraph (a) of this section must provide a copy of their 
grant or contract with the United States Government to any U.S. person 
before the U.S. person engages in or facilitates any transaction 
prohibited by this part. If the grant or contract contains any 
sensitive or proprietary information, such information may be redacted 
or removed from the copy given to the U.S. person, provided that the 
information is not necessary to demonstrate that the transaction is 
authorized pursuant to paragraph (a) of this section.

    Note to Sec.  542.522:  Section 542.211(d) exempts transactions 
for the conduct of the official business of the Federal Government 
by employees, grantees, or contractors thereof to the extent such 
transactions are subject to the prohibitions contained in this part 
other than those in Sec.  542.201(a)(2).

Sec.  542.523  Certain services to the National Coalition of Syrian 
Revolutionary and Opposition Forces authorized.

    (a) Except as provided in paragraphs (b) and (c) of this section, 
U.S. persons are authorized to export, reexport, sell, or supply, 
directly or indirectly, to the National Coalition of Syrian 
Revolutionary and Opposition Forces (``the Coalition'') services 
otherwise prohibited by Sec.  542.207.

    Note to paragraph (a):   See Sec.  542.510 for a general license 
authorizing the exportation and reexportation of certain items and 
services to Syria.

    (b) This section does not authorize:
    (1) Any transaction with a person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a); or
    (2) The exportation, reexportation, sale, or supply, directly or 
indirectly, of any services in support of the exportation or 
reexportation to Syria of any item listed on the United States 
Munitions List (22 CFR part 121).
    (c) Any transfer of funds to or from the Coalition under this 
section must be conducted through the Coalition's U.S. office through 
an account of the Coalition at a U.S. financial institution 
specifically licensed for that purpose by OFAC.

    Note to paragraph (c): For additional information on the bank 
account that is specifically licensed for receipt of funds 
transfers, please contact the U.S. office of the Coalition at 1101 
Pennsylvania Avenue NW., Ste  6620, Washington, DC 20004, 
ATTN: OFAC-authorized bank account, or by phone at (202) 800-1130.


    Note 1 to Sec.  542.523:  Financial institutions transferring 
funds to or from the Coalition pursuant to this section may rely on 
the originator of a funds transfer with regard to compliance with 
paragraph (b), provided that the transferring institution does not 
know or have reason to know that the funds transfer is not in 
compliance with paragraph (b) of this section.


    Note 2 to Sec.  542.523:  Consistent with sections Sec.  542.101 
and Sec.  542.502, this section does not authorize any transaction 
prohibited by any part of 31 CFR Chapter V other than Sec.  542.207. 
For example, this section does not authorize any transaction with a 
person whose property and interests in property are blocked pursuant 
to Sec.  594.201 of this chapter, such as al-Nusrah.

Sec.  542.524  Bunkering and emergency repairs.

    (a) Except as provided in paragraph (b) of this section, services 
provided in the United States to a non-Syrian carrier transporting 
passengers or goods to or from Syria are permissible if they are:
    (1) Bunkers or bunkering services;
    (2) Supplied or performed in the course of emergency repairs; or
    (3) Supplied or performed under circumstances which could not be 
anticipated prior to the carrier's departure for the United States.
    (b) This section does not authorize the provision of services in 
connection with the transport of any goods to or from the Government of 
Syria or any other person whose property and interests in property are 
blocked pursuant to Sec.  542.201(a).


Sec.  542.525  Exportation or reexportation of services to Syria 
related to the exportation or reexportation of certain non-U.S.-origin 
goods authorized.

    The exportation, reexportation, sale, or supply, directly or 
indirectly, from the United States or by a U.S. person, wherever 
located, to Syria, including to the Government of Syria, of services 
that are ordinarily incident to the exportation or reexportation to 
Syria, including to the Government of Syria, of non-U.S.-origin food, 
medicine, and medical devices that would be designated as EAR 99 under 
the Export Administration Regulations, 15 CFR parts 730-774 (the 
``EAR''), if it were subject to the EAR, are authorized.

    Note to Sec.  542.525:  See Sec.  542.510 for a general license 
authorizing the exportation or reexportation of certain items and 
services to Syria from the United States or by a U.S. person.

Sec.  542.526  Exportation of services related to conferences in the 
United States or third countries authorized.

    (a) The exportation, reexportation, sale, or supply of services 
from the United States or by a U.S. person are authorized where such 
services are performed or provided in the United States by or for a 
person who is ordinarily resident in Syria, other than the Government 
of Syria or any other person whose property and interests in property 
are blocked pursuant to Sec.  542.201(a), is authorized, for the 
purpose of, or which directly relate to, participating in a conference, 
performance, exhibition or similar event, and such services are 
consistent with that purpose.

[[Page 25431]]

    (b) To the extent not otherwise exempt from the prohibitions of 
this part, the exportation, reexportation, sale, or supply of services 
directly related to the sponsorship by a U.S. person of a conference or 
other similar event in a third country that is attended by persons who 
are ordinarily resident in Syria, other than the Government of Syria or 
any other person whose property and interests in property are blocked 
pursuant to Sec.  542.201(a), is authorized, provided that the 
conference or other similar event is not tailored in whole or in part 
to or for Syria or persons who are ordinarily resident in Syria.


Sec.  542.527  Policy on activities related to the telecommunications 
sector of Syria.

    (a) Specific licenses may be issued on a case-by-case basis to 
authorize U.S. persons to engage in transactions involving Syria's 
telecommunications sector that are otherwise prohibited by Sec.  
542.206, Sec.  542.207, or Sec.  542.210, and that are not otherwise 
authorized by this part. The purpose of this policy is to enable 
private persons in Syria to better and more securely access the 
Internet.
    (b) Specific licenses issued pursuant to this policy will not 
authorize any transaction or activity, directly or indirectly, with the 
Government of Syria or any other person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a).


Sec.  542.528  Policy on activities related to the agricultural sector 
of Syria.

    (a) Specific licenses may be issued on a case-by-case basis to 
authorize U.S. persons to engage in transactions involving Syria's 
agricultural sector that are otherwise prohibited by Sec.  542.206, 
Sec.  542.207, or Sec.  542.210. The purpose of this policy is to 
enable projects to benefit and support the people of Syria by enhancing 
and strengthening the agricultural sector in a food insecure country.
    (b) Specific licenses issued pursuant to this policy will not 
authorize any transaction or activity, directly or indirectly, with the 
Government of Syria or any other person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a).


Sec.  542.529  Policy on activities related to petroleum and petroleum 
products of Syrian origin for the benefit of the National Coalition of 
Syrian Revolutionary and Opposition Forces.

    (a) Specific licenses may be issued on a case-by-case basis to 
authorize U.S. persons to engage in any transaction otherwise 
prohibited by Sec.  542.206, Sec.  542.207, Sec.  542.208, Sec.  
542.209, or Sec.  542.210, including but not limited to new investment, 
involving the purchase, trade, export, import, or production of 
petroleum or petroleum products of Syrian origin for the benefit of the 
National Coalition of Syrian Revolutionary and Opposition Forces.
    (b) Specific licenses issued pursuant to this policy will not 
authorize any transaction or activity, directly or indirectly, with the 
Government of Syria or any other person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a).


Sec.  542.530  Transactions incident to importations from Syria 
authorized.

    All transactions otherwise prohibited by Sec.  542.207 that are 
ordinarily incident to an importation into the United States from 
Syria, directly or indirectly, of goods technology, or services, are 
authorized, provided the importation is not from or on behalf of, 
directly or indirectly, a person whose property and interests in 
property are blocked pursuant to Sec.  542.201(a).

    Note to Sec.  542.530: This section does not authorize 
transactions that are ordinarily incident to an importation that is 
prohibited pursuant to 542.208 or any transaction prohibited 
pursuant to 542.209.

Sec.  542.531  Authorization of emergency medical services.

    The provision of nonscheduled emergency medical services in the 
United States to persons whose property and interests in property are 
blocked pursuant to Sec.  542.201(a) is authorized, provided that all 
receipt of payment for such services must be specifically licensed.

Subpart F--Reports


Sec.  542.601  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


Sec.  542.701  Penalties.

    (a) Attention is directed to section 206 of the International 
Emergency Economic Powers Act (50 U.S.C. 1705) (``IEEPA''), which is 
applicable to violations of the provisions of any license, ruling, 
regulation, order, directive, or instruction issued by or pursuant to 
the direction or authorization of the Secretary of the Treasury 
pursuant to this part or otherwise under IEEPA.
    (1) A civil penalty not to exceed the amount set forth in section 
206 of IEEPA may be imposed on any person who violates, attempts to 
violate, conspires to violate, or causes a violation of any license, 
order, regulation, or prohibition issued under IEEPA.

    Note to paragraph (a)(1) of Sec.  542.701: As of the date of 
publication in the Federal Register of the final rule amending and 
reissuing this part (May 2, 2014), IEEPA provides for a maximum 
civil penalty not to exceed the greater of $250,000 or an amount 
that is twice the amount of the transaction that is the basis of the 
violation with respect to which the penalty is imposed.

    (2) A person who willfully commits, willfully attempts to commit, 
or willfully conspires to commit, or aids or abets in the commission of 
a violation of any license, order, regulation, or prohibition may, upon 
conviction, be fined not more than $1,000,000, or if a natural person, 
be imprisoned for not more than 20 years, or both.
    (b) Attention is directed to section 5 of the United Nations 
Participation Act, as amended (22 U.S.C. 287c(b)), which provides that 
any person who willfully violates or evades or attempts to violate or 
evade any order, rule, or regulation issued by the President pursuant 
to the authority granted in that section shall, upon conviction, be 
fined not more than $1,000,000 or, if a natural person, be imprisoned 
for not more than 20 years, or both.
    (c) Violations involving transactions described at section 
203(b)(1),(3), and (4) of IEEPA shall be subject only to the penalties 
set forth in paragraph (b) of this section.
    (d) Adjustments to penalty amounts. (1) The civil penalties 
provided in IEEPA are subject to adjustment pursuant to the Federal 
Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as 
amended, 28 U.S.C. 2461 note).
    (2) The criminal penalties provided in IEEPA and the United Nations 
Participation Act, as amended (22 U.S.C. 287c) (``UNPA''), are subject 
to adjustment pursuant to 18 U.S.C. 3571.
    (e) Attention is directed to 18 U.S.C. 2332d, which provides that, 
except as provided in regulations issued by the Secretary of the 
Treasury, in consultation with the Secretary of State, a U.S. person, 
knowing or having reasonable cause to know that a country is designated 
under section 6(j) of the Export Administration Act of 1979, 50 U.S.C. 
App. 2405, as a country supporting international terrorism, engages in 
a financial transaction with the government of that country, shall be 
fined under title 18, United States Code,

[[Page 25432]]

or imprisoned for not more than 10 years, or both.
    (f) Attention is also directed to 18 U.S.C. 1001, which provides 
that whoever, in any matter within the jurisdiction of the executive, 
legislative, or judicial branch of the Government of the United States, 
knowingly and willfully falsifies, conceals, or covers up by any trick, 
scheme, or device a material fact, or makes any materially false, 
fictitious, or fraudulent statement or representation, or makes or uses 
any false writing or document knowing the same to contain any 
materially false, fictitious, or fraudulent statement or entry shall be 
fined under title 18, United States Code, or imprisoned, or both.
    (g) Violations of this part may also be subject to other applicable 
laws.


Sec.  542.702  Pre-Penalty Notice; settlement.

    (a) When required. If the Office of Foreign Assets Control has 
reason to believe that there has occurred a violation of any provision 
of this part or a violation of the provisions of any license, ruling, 
regulation, order, directive, or instruction issued by or pursuant to 
the direction or authorization of the Secretary of the Treasury 
pursuant to this part or otherwise under the International Emergency 
Economic Powers Act (``IEEPA'') and determines that a civil monetary 
penalty is warranted, the Office of Foreign Assets Control will issue a 
Pre-Penalty Notice informing the alleged violator of the agency's 
intent to impose a monetary penalty. A Pre-Penalty Notice shall be in 
writing. The Pre-Penalty Notice may be issued whether or not another 
agency has taken any action with respect to the matter. For a 
description of the contents of a Pre-Penalty Notice, see Appendix A to 
part 501 of this chapter.
    (b)(1) Right to respond. An alleged violator has the right to 
respond to a Pre-Penalty Notice by making a written presentation to the 
Office of Foreign Assets Control. For a description of the information 
that should be included in such a response, see Appendix A to part 501 
of this chapter.
    (2) Deadline for response. A response to a Pre-Penalty Notice must 
be made within the applicable 30-day period set forth in this 
paragraph. The failure to submit a response within the applicable time 
period set forth in this paragraph shall be deemed to be a waiver of 
the right to respond.
    (i) Computation of time for response. A response to a Pre-Penalty 
Notice must be postmarked or date-stamped by the U.S. Postal Service 
(or foreign postal service, if mailed abroad) or courier service 
provider (if transmitted to the Office of Foreign Assets Control by 
courier) on or before the 30th day after the postmark date on the 
envelope in which the Pre-Penalty Notice was mailed. If the Pre-Penalty 
Notice was personally delivered by a non-U.S. Postal Service agent 
authorized by the Office of Foreign Assets Control, a response must be 
postmarked or date-stamped on or before the 30th day after the date of 
delivery.
    (ii) Extensions of time for response. If a due date falls on a 
federal holiday or weekend, that due date is extended to include the 
following business day. Any other extensions of time will be granted, 
at the discretion of the Office of Foreign Assets Control, only upon 
specific request to the Office of Foreign Assets Control.
    (3) Form and method of response. A response to a Pre-Penalty Notice 
need not be in any particular form, but it must be typewritten and 
signed by the alleged violator or a representative thereof, must 
contain information sufficient to indicate that it is in response to 
the Pre-Penalty Notice, and must include the Office of Foreign Assets 
Control identification number listed on the Pre-Penalty Notice. A copy 
of the written response may be sent by facsimile, but the original also 
must be sent to the Office of Foreign Assets Control Enforcement 
Division by mail or courier and must be postmarked or date-stamped in 
accordance with paragraph (b)(2) of this section.
    (c) Settlement. Settlement discussion may be initiated by the 
Office of Foreign Assets Control, the alleged violator, or the alleged 
violator's authorized representative. For a description of practices 
with respect to settlement, see Appendix A to part 501 of this chapter.
    (d) Guidelines. Guidelines for the imposition or settlement of 
civil penalties by the Office of Foreign Assets Control are contained 
in Appendix A to part 501 of this chapter.
    (e) Representation. A representative of the alleged violator may 
act on behalf of the alleged violator, but any oral communication with 
the Office of Foreign Assets Control prior to a written submission 
regarding the specific allegations contained in the Pre-Penalty Notice 
must be preceded by a written letter of representation, unless the Pre-
Penalty Notice was served upon the alleged violator in care of the 
representative.


Sec.  542.703  Penalty imposition.

    If, after considering any written response to the Pre-Penalty 
Notice and any relevant facts, the Office of Foreign Assets Control 
determines that there was a violation by the alleged violator named in 
the Pre-Penalty Notice and that a civil monetary penalty is 
appropriate, the Office of Foreign Assets Control may issue a Penalty 
Notice to the violator containing a determination of the violation and 
the imposition of the monetary penalty. For additional details 
concerning issuance of a Penalty Notice, see Appendix A to part 501 of 
this chapter. The issuance of the Penalty Notice shall constitute final 
agency action. The violator has the right to seek judicial review of 
that final agency action in federal district court.


Sec.  542.704  Administrative collection; referral to United States 
Department of Justice.

    In the event that the violator does not pay the penalty imposed 
pursuant to this part or make payment arrangements acceptable to the 
Office of Foreign Assets Control, the matter may be referred for 
administrative collection measures by the Department of the Treasury or 
to the United States Department of Justice for appropriate action to 
recover the penalty in a civil suit in a federal district court.

Subpart H--Procedures


Sec.  542.801  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.  542.802  Delegation by the Secretary of the Treasury.

    Any action that the Secretary of the Treasury is authorized to take 
pursuant to E.O. 13338 of May 11, 2004 (69 FR 26751, May 13, 2004) 
(``E.O. 13338''), E.O. 13399 of April 25, 2006 (71 FR 25059, April 28, 
2006), E.O. 13460 of February 13, 2008 (73 FR 8991, February 15, 2008), 
E.O. 13572 of April 29, 2011 (76 FR 24787, May 3, 2011), E.O. 13573 of 
May 18, 2011 (76 FR 29143, May 20, 2011), E.O. 13582 of August 17, 2011 
(76 FR 52209, August 22, 2011), and E.O. 13606 of April 22, 2012 (77 FR 
24571, April 24, 2012), and any further Executive orders relating to 
the national emergency declared in E.O. 13338, 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.

[[Page 25433]]

Subpart I--Paperwork Reduction Act


Sec.  542.901  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 (including those pursuant to statements of 
licensing policy), and other procedures, see 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.

    Dated: April 24, 2014.
Adam J. Szubin,
Director, Office of Foreign Assets Control.

    Approved: April 24, 2014.
David S. Cohen,
Under Secretary, Office of Terrorism and Financial Intelligence, 
Department of the Treasury.
[FR Doc. 2014-09998 Filed 5-1-14; 8:45 am]
BILLING CODE 4810-AL-P