[Federal Register Volume 79, Number 157 (Thursday, August 14, 2014)]
[Notices]
[Page 47726]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-19252]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Publication of Revised Guidance on Entities Owned by Persons
Whose Property and Interests in Property Are Blocked
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Notice, publication of revised guidance.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is publishing Revised Guidance on Entities Owned by
Persons Whose Property and Interests in Property are Blocked.
DATES: Effective Date: August 14, 2014.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Licensing,
tel.: 202-622-2480, Assistant Director for Policy, tel.: 202-622-2402,
Assistant Director for Regulatory Affairs, tel.: 202-622-4855,
Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-
622-2490, 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
The text of the Revised Guidance on Entities Owned by Persons Whose
Property and Interests in Property are Blocked and additional
information concerning 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
OFAC today is publishing Revised Guidance on Entities Owned by
Persons Whose Property and Interests in Property are Blocked. This
revised guidance replaces the Guidance on Entities Owned by Persons
Whose Property and Interests in Property are Blocked previously posted
on OFAC's Web site on February 14, 2008.
Guidance
U.S. Department of the Treasury
Revised Guidance on Entities Owned by Persons Whose Property and
Interests in Property Are Blocked
This guidance responds to inquiries received by the Department of
the Treasury's Office of Foreign Assets Control (OFAC) relating to the
status of entities owned by individuals or entities designated under
Executive orders and regulations administered by OFAC. This document
sets forth new guidance with respect to entities owned 50 percent or
more in the aggregate by more than one blocked person.
Property blocked pursuant to an Executive order or regulations
administered by OFAC is broadly defined to include any property or
interest in property, tangible or intangible, including present, future
or contingent interests. A property interest subject to blocking
includes interests of any nature whatsoever, direct or indirect.
Persons whose property and interests in property are blocked
pursuant to an Executive order or regulations administered by OFAC
(blocked persons) are considered to have an interest in all property
and interests in property of an entity in which such blocked persons
own, whether individually or in the aggregate, directly or indirectly,
a 50 percent or greater interest. Consequently, any entity owned in the
aggregate, directly or indirectly, 50 percent or more by one or more
blocked persons is itself considered to be a blocked person. The
property and interests in property of such an entity are blocked
regardless of whether the entity itself is listed in the annex to an
Executive order or otherwise placed on OFAC's list of Specially
Designated Nationals (``SDNs''). Accordingly, a U.S. person generally
may not engage in any transactions with such an entity, unless
authorized by OFAC. In certain OFAC sanctions programs (e.g., Cuba and
Sudan), there is a broader category of entities whose property and
interests in property are blocked based on, for example, ownership or
control.
U.S. persons are advised to act with caution when considering a
transaction with a non-blocked entity in which one or more blocked
persons has a significant ownership interest that is less than 50
percent or which one or more blocked persons may control by means other
than a majority ownership interest. Such entities may be the subject of
future designation or enforcement action by OFAC. Furthermore, a U.S.
person may not procure goods, services, or technology from, or engage
in transactions with, a blocked person directly or indirectly
(including through a third-party intermediary).
OFAC will incorporate this guidance as it issues regulations
implementing new sanctions programs. In addition, OFAC expects to amend
regulations implementing existing sanctions programs to reflect this
guidance.
Issued: August 14, 2014.
Dated: August 7, 2014.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2014-19252 Filed 8-13-14; 8:45 am]
BILLING CODE 4810-AL-P