[Federal Register Volume 80, Number 132 (Friday, July 10, 2015)]
[Rules and Regulations]
[Pages 39676-39683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16782]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 591
Venezuela 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 issuing regulations to implement the Venezuela
Defense of Human Rights and Civil Society Act of 2014 (Pub. L. 113-278)
and Executive Order 13692 of March 8, 2015 (``Blocking Property and
Suspending Entry of Certain Persons Contributing to the Situation in
Venezuela''). OFAC intends to supplement this part 591 with a more
comprehensive set of regulations, which may include additional
interpretive and definitional guidance and additional general licenses
and statements of licensing policy.
DATES: Effective: July 10, 2015.
FOR FURTHER INFORMATION CONTACT: 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,
Assistant Director for Sanctions Compliance & Evaluation, tel.: 202/
622-2490, OFAC, 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 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.
[[Page 39677]]
Background
On December 18, 2014, President Obama signed the Venezuela Defense
of Human Rights and Civil Society Act of 2014 (Pub. L. 113-278) (the
``Act'') into law. The Act required the President to impose targeted
sanctions on certain persons that he determines to be responsible for
significant acts of violence or serious human rights abuses against
antigovernment protesters in Venezuela and to have ordered or otherwise
directed the arrest or prosecution of persons in Venezuela primarily
because of the person's legitimate exercise of freedom of expression or
assembly.
On March 8, 2015, the President issued Executive Order 13692 (80 FR
12747, March 11, 2015) (E.O. 13692), invoking the authority of, inter
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.) (IEEPA), the Act, and the National Emergencies Act (50 U.S.C.
1601 et seq.) (NEA).
OFAC is issuing the Venezuela Sanctions Regulations, 31 CFR part
591 (the ``Regulations''), to implement the Act and E.O. 13692,
pursuant to authorities delegated to the Secretary of the Treasury in
E.O. 13692. A copy of E.O. 13692 appears in Appendix A to this part.
The Regulations are being published in abbreviated form at this
time for the purpose of providing immediate guidance to the public.
OFAC intends to supplement this part 591 with a more comprehensive set
of regulations, which may include additional interpretive and
definitional guidance and additional general licenses and statements of
licensing policy. The appendix to the Regulations will be removed when
OFAC supplements this part with a more comprehensive set of
regulations.
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 591
Administrative practice and procedure, Banking, Banks, Blocking of
assets, Brokers, Credit, Foreign trade, Investments, Loans, Securities,
Services, Venezuela.
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control adds part 591 to 31 CFR
chapter V to read as follows:
PART 591--VENEZUELA SANCTIONS REGULATIONS
Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
591.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
591.201 Prohibited transactions.
591.202 Effect of transfers violating the provisions of this part.
591.203 Holding of funds in interest-bearing accounts; investment
and reinvestment.
591.204 Expenses of maintaining blocked property; liquidation of
blocked property.
Subpart C--General Definitions
591.300 Applicability of definitions.
591.301 Blocked account; blocked property.
591.302 Effective date.
591.303 Entity.
591.304 Financial, material, or technological support.
591.305 Interest.
591.306 Licenses; general and specific.
591.307 OFAC.
591.308 Person.
591.309 Property; property interest.
591.310 Transfer.
591.311 United States.
591.312 United States person; U.S. person.
591.313 U.S. financial institution.
Subpart D--Interpretations
591.401 [Reserved]
591.402 Effect of amendment.
591.403 Termination and acquisition of an interest in blocked
property.
591.404 Transactions ordinarily incident to a licensed transaction.
591.405 Setoffs prohibited.
591.406 Entities owned by persons whose property and interests in
property are blocked.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
591.501 General and specific licensing procedures.
591.502 [Reserved]
591.503 Exclusion from licenses.
591.504 Payments and transfers to blocked accounts in U.S. financial
institutions.
591.505 Entries in certain accounts for normal service charges
authorized.
591.506 Provision of certain legal services authorized.
591.507 Payments for legal services from funds originating outside
the United States authorized.
591.508 Authorization of emergency medical services.
Subparts F-G--[Reserved]
Subpart H--Procedures
591.801 [Reserved]
591.802 Delegation by the Secretary of the Treasury.
Subpart I--Paperwork Reduction Act
591.901 Paperwork Reduction Act notice.
Appendix A to Part 591 Executive Order 13692 of March 8, 2015
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 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. 1705 note); Pub. L. 113-
278, 128 Stat. 3011 (50 U.S.C. 1701 note); E.O. 13692, 80 FR 12747,
March 11, 2015.
Subpart A--Relation of This Part to Other Laws and Regulations
Sec. 591.101 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 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.
Note to Sec. 591.101: This part has been published in
abbreviated form for the purpose of providing immediate guidance to
the public. OFAC intends to supplement this part with a more
comprehensive set of regulations, which may include additional
interpretive and definitional guidance and
[[Page 39678]]
additional general licenses and statements of licensing policy.
Subpart B--Prohibitions
Sec. 591.201 Prohibited transactions.
All transactions prohibited pursuant to Executive Order 13692 of
March 8, 2015, are also prohibited pursuant to this part.
Note 1 to Sec. 591.201: The names of persons designated
pursuant to Executive Order 13692, whose property and interests in
property therefore are blocked pursuant to 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 ``[VENEZUELA].'' 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. 591.406 concerning entities
that may not be listed on the SDN List but whose property and
interests in property are nevertheless blocked pursuant to this
section.
Note 2 to Sec. 591.201: 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 this section also are published in the
Federal Register and incorporated into the SDN List with the
identifier ``[BPI-VENEZUELA]''.
Note 3 to Sec. 591.201: 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 persons whose property and interests in property are
blocked pursuant to this section.
Sec. 591.202 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.
591.201, 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. 591.201, 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. 591.202: 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. 591.201.
Sec. 591.203 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. 591.201 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. 591.201 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. 591.201 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
[[Page 39679]]
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. 591.201, nor may their holder
cooperate in or facilitate the pledging or other attempted use as
collateral of blocked funds or other assets.
Sec. 591.204 Expenses of maintaining blocked 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. 591.201
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. 591.201 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.
Subpart C--General Definitions
Sec. 591.300 Applicability of definitions.
The definitions in this subpart apply throughout the entire part.
Sec. 591.301 Blocked account; blocked property.
The terms blocked account and blocked property shall mean any
account or property subject to the prohibitions in Sec. 591.201 held
in the name of a person whose property and interests in property are
blocked pursuant to Sec. 591.201, 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 a license or other authorization from OFAC expressly
authorizing such action.
Note to Sec. 591.301: See Sec. 591.406 concerning the blocked
status of property and interests in property of an entity that is 50
percent or more owned by persons whose property and interests in
property are blocked pursuant to Sec. 591.201.
Sec. 591.302 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 a person listed in the Annex to E.O. 13692 of
March 8, 2015, 12:01 a.m. eastern daylight time, March 9, 2015; and
(b) With respect to a person whose property and interests in
property are otherwise blocked pursuant to Sec. 591.201, the earlier
of the date of actual or constructive notice that such person's
property and interests in property are blocked.
Sec. 591.303 Entity.
The term entity means a partnership, association, trust, joint
venture, corporation, group, subgroup, or other organization.
Sec. 591.304 Financial, material, or technological support.
The term financial, material, or technological support, as used in
Executive Order 13692 of March 8, 2015, 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. 591.305 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. 591.306 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. 591.306: See Sec. 501.801 of this chapter on
licensing procedures.
Sec. 591.307 OFAC.
The term OFAC means the Department of the Treasury's Office of
Foreign Assets Control.
Sec. 591.308 Person.
The term person means an individual or entity.
Sec. 591.309 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. 591.310 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,
[[Page 39680]]
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, or filing of, or levy of
or under, any judgment, decree, attachment, injunction, execution, or
other judicial or administrative process or order, or the service of
any 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. 591.311 United States.
The term United States means the United States, its territories and
possessions, and all areas under the jurisdiction or authority thereof.
Sec. 591.312 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. 591.313 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 loans or credits, or purchasing or selling foreign exchange,
securities, or commodity futures or options, or procuring purchasers
and sellers thereof, as principal or agent. It includes 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.
Subpart D--Interpretations
Sec. 591.401 [Reserved]
Sec. 591.402 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. 591.403 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 a person whose property and interests in property
are blocked pursuant to Sec. 591.201, such property shall no longer be
deemed to be property blocked pursuant to Sec. 591.201, unless there
exists in the property another interest that is blocked pursuant to
Sec. 591.201, the transfer of which has not been effected pursuant to
license or other authorization.
(b) Unless otherwise specifically provided in a license or other
authorization issued pursuant to this part, if property (including any
property interest) is transferred or attempted to be transferred to a
person whose property and interests in property are blocked pursuant to
Sec. 591.201, such property shall be deemed to be property in which
such a person has an interest and therefore blocked.
Sec. 591.404 Transactions ordinarily incident to a licensed
transaction.
Any transaction ordinarily incident to a licensed transaction and
necessary to give effect thereto is also authorized, except:
(a) An ordinarily incident transaction, not explicitly authorized
within the terms of the license, by or with a person whose property and
interests in property are blocked pursuant to Sec. 591.201; or
(b) 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.
Sec. 591.405 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. 591.201 if effected after the effective date.
Sec. 591.406 Entities owned by persons whose property and interests
in property are blocked.
Persons whose property and interests in property are blocked
pursuant to Sec. 591.201 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. 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.
591.201, regardless of whether the name of the entity is incorporated
into OFAC's Specially Designated Nationals and Blocked Persons List
(SDN List).
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
Sec. 591.501 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 Venezuela sanctions page on OFAC's Web site:
www.treasury.gov/ofac.
Sec. 591.502 [Reserved]
Sec. 591.503 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. 591.504 Payments and transfers to blocked accounts in U.S.
financial institutions.
Any payment of funds or transfer of credit in which a person whose
property and interests in property are blocked pursuant to Sec.
591.201 has any interest that comes within the possession or control of
a U.S. financial institution
[[Page 39681]]
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. 591.504: See Sec. 501.603 of this chapter for
mandatory reporting requirements regarding financial transfers. See
also Sec. 591.203 concerning the obligation to hold blocked funds
in interest-bearing accounts.
Sec. 591.505 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.
Sec. 591.506 Provision of certain legal services authorized.
(a) The provision of the following legal services to or on behalf
of persons whose property and interests in property are blocked
pursuant to Sec. 591.201 or any further Executive orders relating to
the national emergency declared in Executive Order 13692 of March 8,
2015, is authorized, provided that receipt of payment of professional
fees and reimbursement of incurred expenses must be specifically
licensed or otherwise authorized pursuant to Sec. 591.507:
(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 U.S. federal, state, or local court or agency;
(3) Initiation and conduct of legal, arbitration, or administrative
proceedings before any U.S. 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; 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 persons whose
property and interests in property are blocked pursuant to Sec.
591.201 or any further Executive orders relating to the national
emergency declared in Executive Order 13692 of March 8, 2015, 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. 591.201 or any further Executive orders
relating to the national emergency declared in Executive Order 13692 of
March 8, 2015, is prohibited unless licensed pursuant to this part.
Note to Sec. 591.506: 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: www.treasury.gov/ofac.
Sec. 591.507 Payments for legal services from funds originating
outside the United States authorized.
(a) Receipts of payment of professional fees and reimbursement of
incurred expenses for the provision of legal services authorized
pursuant to Sec. 591.506(a) to or on behalf of any person whose
property and interests in property are blocked pursuant to Sec.
591.201 or any further Executive orders relating to the national
emergency declared in Executive Order 13692 of March 8, 2015, are
authorized from funds originating outside the United States, provided
that 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. 591.506(a) do 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. 591.506(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 (a) of Sec. 591.507: This paragraph
authorizes the blocked person on whose behalf the legal services
authorized pursuant to Sec. 591.506(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. 591.201 or any further Executive
orders relating to the national emergency declared in Executive
Order 13692 of March 8, 2015, any other part of this chapter, or any
Executive order has an interest.
(b) Reports. (1) U.S. persons who receive payments in connection
with legal services authorized pursuant to Sec. 591.506(a) must submit
annual reports no later than 30 days following the end of the calendar
year 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) 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 to Sec. 591.507: U.S. persons who receive payments in
connection with legal services authorized pursuant to Sec.
591.506(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
[[Page 39682]]
authorization to provide related services that are ordinarily
incident to the provision of legal services authorized pursuant to
Sec. 591.506(a).
Sec. 591.508 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. 591.201 or any further Executive orders
relating to the national emergency declared in Executive Order 13692 of
March 8, 2015, is authorized, provided that all receipt of payment for
such services must be specifically licensed.
Subparts F-G--[Reserved]
Subpart H--Procedures
Sec. 591.801 [Reserved]
Sec. 591.802 Delegation by the Secretary of the Treasury.
Any action that the Secretary of the Treasury is authorized to take
pursuant to Executive Order 13692 of March 8, 2015, and any further
Executive orders relating to the national emergency declared therein,
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.
Subpart I--Paperwork Reduction Act
Sec. 591.901 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.
APPENDIX A TO PART 591--Executive Order 13692
Executive Order 13692 of March 8, 2015
Blocking Property and Suspending Entry of Certain Persons Contributing
to the Situation in Venezuela
By the authority vested in me as President by the Constitution
and the laws of the United States of America, including the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)
(IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.)
(NEA), the Venezuela Defense of Human Rights and Civil Society Act
of 2014 (Public Law 113-278) (the ``Venezuela Defense of Human
Rights Act'') (the ``Act''), section 212(f) of the Immigration and
Nationality Act of 1952 (8 U.S.C. 1182(f)) (INA), and section 301 of
title 3, United States Code,
I, BARACK OBAMA, President of the United States of America, find
that the situation in Venezuela, including the Government of
Venezuela's erosion of human rights guarantees, persecution of
political opponents, curtailment of press freedoms, use of violence
and human rights violations and abuses in response to antigovernment
protests, and arbitrary arrest and detention of antigovernment
protestors, as well as the exacerbating presence of significant
public corruption, constitutes an unusual and extraordinary threat
to the national security and foreign policy of the United States,
and I hereby declare a national emergency to deal with that threat.
I hereby order:
Section 1. (a) All property and interests in property that are
in the United States, that hereafter come within the United States,
or that are or hereafter come within the possession or control of
any United States person 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 this order; and
(ii) any person determined by the Secretary of the Treasury, in
consultation with the Secretary of State:
(A) to be responsible for or complicit in, or responsible for
ordering, controlling, or otherwise directing, or to have
participated in, directly or indirectly, any of the following in or
in relation to Venezuela:
(1) actions or policies that undermine democratic processes or
institutions;
(2) significant acts of violence or conduct that constitutes a
serious abuse or violation of human rights, including against
persons involved in antigovernment protests in Venezuela in or since
February 2014;
(3) actions that prohibit, limit, or penalize the exercise of
freedom of expression or peaceful assembly; or
(4) public corruption by senior officials within the Government
of Venezuela;
(B) to be a current or former leader of an entity that has, or
whose members have, engaged in any activity described in subsection
(a)(ii)(A) of this section or of an entity whose property and
interests in property are blocked pursuant to this order;
(C) to be a current or former official of the Government of
Venezuela;
(D) to have materially assisted, sponsored, or provided
financial, material, or technological support for, or goods or
services to or in support of:
(1) a person whose property and interests in property are
blocked pursuant to this order; or
(2) an activity described in subsection (a)(ii)(A) of this
section; or
(E) 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 this
order.
(b) The prohibitions in subsection (a) of this section apply
except to the extent provided by statutes, or in regulations,
orders, directives, or licenses that may be issued pursuant to this
order, and notwithstanding any contract entered into or any license
or permit granted prior to the effective date of this order.
Sec. 2. I hereby find that the unrestricted immigrant and
nonimmigrant entry into the United States of aliens determined to
meet one or more of the criteria in subsection 1(a) of this order
would be detrimental to the interests of the United States, and I
hereby suspend entry into the United States, as immigrants or
nonimmigrants, of such persons, except where the Secretary of State
determines that the person's entry is in the national interest of
the United States. This section shall not apply to an alien if
admitting the alien into the United States is necessary to permit
the United States to comply with the Agreement Regarding the
Headquarters of the United Nations, signed at Lake Success June 26,
1947, and entered into force November 21, 1947, or other applicable
international obligations.
Sec. 3. I hereby determine that the making of donations of the
type of articles 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 section 1 of this
order would seriously impair my ability to deal with the national
emergency declared in this order, and I hereby prohibit such
donations as provided by section 1 of this order.
Sec. 4. The prohibitions in section 1 of this order include but
are not limited to:
(a) the making of any contribution or provision of funds, goods,
or services by, to, or for the benefit of any person whose property
and interests in property are blocked pursuant to this order; and
(b) the receipt of any contribution or provision of funds,
goods, or services from any such person.
Sec. 5. (a) Any transaction that evades or avoids, has the
purpose of evading or avoiding, causes a violation of, or attempts
to violate any of the prohibitions set forth in this order is
prohibited.
(b) Any conspiracy formed to violate any of the prohibitions set
forth in this order is prohibited.
Sec. 6. For the purposes of this order:
(a) the term ``person'' means an individual or entity;
(b) the term ``entity'' means a partnership, association, trust,
joint venture, corporation, group, subgroup, or other organization;
(c) the term ``United States person'' means any United States
citizen, permanent resident alien, entity organized under the laws
of the United States or any jurisdiction within the United States
(including foreign branches), or any person in the United States;
(d) the term ``Government of Venezuela'' means the Government of
Venezuela, any political subdivision, agency, or instrumentality
thereof, including the Central Bank of Venezuela, and any person
owned or controlled by, or acting for or on behalf of, the
Government of Venezuela.
Sec. 7. For those persons whose property and interests in
property are blocked pursuant to this order who might have a
constitutional presence in the United States, I find that because of
the ability to transfer funds or other assets instantaneously, prior
[[Page 39683]]
notice to such persons of measures to be taken pursuant to this
order would render those measures ineffectual. I therefore determine
that for these measures to be effective in addressing the national
emergency declared in this order, there need be no prior notice of a
listing or determination made pursuant to section 1 of this order.
Sec. 8. The Secretary of the Treasury, in consultation with the
Secretary of State, is hereby authorized to take such actions,
including the promulgation of rules and regulations, and to employ
all powers granted to the President by IEEPA and section 5 of the
Venezuela Defense of Human Rights Act, other than the authorities
contained in sections 5(b)(1)(B) and 5(c) of that Act, as may be
necessary to carry out the purposes of this order, with the
exception of section 2 of this order, and the relevant provisions of
section 5 of that Act. The Secretary of the Treasury may redelegate
any of these functions to other officers and agencies of the United
States Government consistent with applicable law. All agencies of
the United States Government are hereby directed to take all
appropriate measures within their authority to carry out the
provisions of this order.
Sec. 9. The Secretary of State is hereby authorized to take such
actions, including the promulgation of rules and regulations, and to
employ all powers granted to the President by IEEPA, the INA, and
section 5 of the Venezuela Defense of Human Rights Act, including
the authorities set forth in sections 5(b)(1)(B), 5(c), and 5(d) of
that Act, as may be necessary to carry out section 2 of this order
and the relevant provisions of section 5 of that Act. The Secretary
of State may redelegate any of these functions to other officers and
agencies of the United States Government consistent with applicable
law.
Sec. 10. The Secretary of the Treasury, in consultation with the
Secretary of State, is hereby authorized to determine that
circumstances no longer warrant the blocking of the property and
interests in property of a person listed in the Annex to this order,
and to take necessary action to give effect to that determination.
Sec. 11. The Secretary of the Treasury, in consultation with the
Secretary of State, is hereby authorized to submit the recurring and
final reports to the Congress on the national emergency declared in
this order, consistent with section 401(c) of the NEA (50 U.S.C.
1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).
Sec. 12. This order is not intended to, and does not, create any
right or benefit, substantive or procedural, enforceable at law or
in equity by any party against the United States, its departments,
agencies, or entities, its officers, employees, or agents, or any
other person.
Sec. 13. This order is effective at 12:01 a.m. eastern daylight
time on March 9, 2015.
Barack Obama
THE WHITE HOUSE,
March 8, 2015
Annex
1. Antonio Jos[eacute] Benavides Torres [Commander of the Central
Integral Strategic Defense Region of the National Armed Forces,
former Director of Operations for the National Guard; born June 13,
1961]
2. Gustavo Enrique Gonz[aacute]lez L[oacute]pez [Director General of
the National Intelligence Service and President of the Strategic
Center of Security and Protection of the Homeland; born November 2,
1960]
3. Justo Jos[eacute] Noguera Pietri [President of the Venezuelan
Corporation of Guayana, former General Commander of the National
Guard; born March 15, 1961]
4. Katherine Nayarith Haringhton Padron [National Level Prosecutor
of the 20th District Office of the Public Ministry; born December 5,
1971]
5. Manuel Eduardo P[eacute]rez Urdaneta [Director of the National
Police; born May 26, 1962]
6. Manuel Gregorio Bernal Mart[iacute]nez [Chief of the 31st Armored
Brigade of Caracas, former Director General of the National
Intelligence Service; born July 12, 1965]
7. Miguel Alcides Vivas Landino [Inspector General of the National
Armed Forces, former Commander of the Andes Integral Strategic
Defense Region of the National Armed Forces; born July 8, 1961]
Dated: July 2, 2015.
John E. Smith,
Acting Director, Office of Foreign Assets Control.
Approved:
Dated: July 2, 2015.
Adam J. Szubin,
Acting Under Secretary, Office of Terrorism and Financial Intelligence,
Department of the Treasury.
[FR Doc. 2015-16782 Filed 7-9-15; 8:45 am]
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