15744 - Federal Register/Vol. 89, No. 44/Tuesday, March 5, 2024

15744

Federal Register / Vol. 89, No. 44 / Tuesday, March 5, 2024 / Rules and Regulations

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 546

Updates to the Darfur Sanctions

Regulations

AGENCY

: Office of Foreign Assets

Control, Treasury.

ACTION

: Final rule.

SUMMARY

: The Department of the

Treasury’s Office of Foreign Assets

Control (OFAC) is changing the heading

of the Darfur Sanctions Regulations to

the Sudan Stabilization Sanctions

Regulations and amending the renamed

regulations to implement a May 4, 2023

Sudan-related Executive Order. This

rule also updates or adds new

definitions, general licenses, and

interpretative guidance, among other

regulatory provisions.

DATES

: This rule is effective March 5,

2024.

FOR FURTHER INFORMATION CONTACT

OFAC: Assistant Director for Licensing,

202–622–2480; Assistant Director for

Regulatory Affairs, 202–622–4855; or

Assistant Director for Compliance, 202–

622–2490.

SUPPLEMENTARY INFORMATION

Electronic Availability

This document and additional

information concerning OFAC are

available on OFAC’s website: https://

ofac.treasury.gov/.

Background

On May 28, 2009, OFAC issued the

Darfur Sanctions Regulations, 31 CFR

part 546 (74 FR 25432, May 28, 2009)

(the ‘‘Regulations’’) to implement

Executive Order (E.O.) 13400 of April

26, 2006, ‘‘Blocking Property of Persons

in Connection with the Conflict in

Sudan’s Darfur Region’’ (71 FR 25483,

May 1, 2006). The Regulations were

issued pursuant to authorities delegated

to the Secretary of the Treasury in E.O.

13400, which expanded the scope of the

national emergency declared in E.O.

13067 of November 3, 1997, ‘‘Blocking

Sudanese Government Property and

Prohibiting Transactions with Sudan’’

(62 FR 59989, November 5, 1997) with

respect to the policies and actions of the

Government of Sudan. Since then,

OFAC has amended the Regulations

several times. OFAC is now amending

the Regulations to implement provisions

of E.O. 14098, ‘‘Imposing Sanctions on

Certain Persons Destabilizing Sudan and

Undermining the Goal of a Democratic

Transition’’ (88 FR 29529, May 5, 2023).

In addition, OFAC is amending the

Regulations to update or add new

definitions, general licenses, and

interpretative guidance, among other

regulatory provisions. Furthermore,

OFAC is renaming the Darfur Sanctions

Regulations as the Sudan Stabilization

Sanctions Regulations to reflect the

expanded scope of the national

emergency, as set forth in E.O. 14098.

On May 4, 2023, the President,

invoking the authority of, inter alia, the

International Emergency Economic

Powers Act (50 U.S.C. 1701 et seq.)

(IEEPA), issued E.O. 14098. In E.O.

14098, the President expanded the

scope of the national emergency

declared in E.O. 13067, and expanded

by E.O. 13400, finding that the situation

in Sudan, including the military’s

seizure of power in October 2021 and

the outbreak of inter-service fighting in

April 2023, constitutes an unusual and

extraordinary threat to the national

security and foreign policy of the United

States.

Section 1(a) of E.O. 14098 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 U.S.

person of: (i) any foreign person

determined by the Secretary of the

Treasury, in consultation with the

Secretary of State, to be responsible for,

or complicit in, or to have directly or

indirectly engaged or attempted to

engage in, any of the following: (A)

actions or policies that threaten the

peace, security, or stability of Sudan; (B)

actions or policies that obstruct,

undermine, delay, or impede, or pose a

significant risk of obstructing,

undermining, delaying, or impeding, the

formation or operation of a civilian

transitional government, Sudan’s

transition to democracy, or a future

democratically elected government; (C)

actions or policies that have the purpose

or effect of undermining democratic

processes or institutions in Sudan; (D)

censorship or other actions or policies

that prohibit, limit, or penalize the

exercise of freedoms of expression,

association, or peaceful assembly by

individuals in Sudan, or that limit

access to free and independent news or

information in or with respect to Sudan;

(E) corruption, including bribery,

misappropriation of state assets, and

interference with public processes such

as government oversight of parastatal

budgets and revenues for personal

benefit; (F) serious human rights abuse,

including serious human rights abuse

related to political repression, in or with

respect to Sudan; (G) the targeting of

women, children, or any other civilians

through the commission of acts of

violence (including killing, maiming,

torture, or rape or other sexual

violence), abduction, forced

displacement, or attacks on schools,

hospitals, religious sites, or locations

where civilians are seeking refuge, or

through conduct that would constitute a

serious abuse or violation of human

rights or a violation of international

humanitarian law; (H) the obstruction of

the activities of United Nations

missions—including peacekeeping

missions, as well as diplomatic or

humanitarian missions—in Sudan, or of

the delivery of, distribution of, or access

to humanitarian assistance; or (I) attacks

against United Nations missions,

including peacekeeping operations; (ii)

any foreign person determined by the

Secretary of the Treasury, in

consultation with the Secretary of State,

to be or have been a leader, official,

senior executive officer, or member of

the board of directors of any entity: (A)

that has, or whose members have,

engaged in any activity described in

subsection (a)(i) of E.O. 14098 relating

to the tenure of such leader, official,

senior executive officer, or member of

the board of directors; or (B) whose

property and interests in property are

blocked pursuant to E.O. 14098 relating

to the tenure of such leader, official,

senior executive officer, or member of

the board of directors; (iii) any foreign

person determined by the Secretary of

the Treasury, in consultation with the

Secretary of State, to be a spouse or

adult child of any person whose

property and interests in property are

blocked pursuant to E.O. 14098; (iv) any

foreign person determined by the

Secretary of the Treasury, in

consultation with the Secretary of State,

to have materially assisted, sponsored,

or provided financial, material, or

technological support for, or goods or

services to or in support of, any activity

described in section 1(a)(i) of E.O. 14098

or any person whose property and

interests in property are blocked

pursuant to E.O. 14098; or (v) any

foreign person determined by the

Secretary of the Treasury, in

consultation with the Secretary of State,

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.

14098. The blocked property and

interests in property of the persons

described above may not be transferred,

paid, exported, withdrawn, or otherwise

dealt in.

Section 1(b) of E.O. 14098 provides

that the prohibitions in section 1(a) of

E.O. 14098 apply except to the extent

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provided by statutes, or in regulations,

orders, directives, or licenses that may

be issued pursuant to E.O. 14098, and

notwithstanding any contract entered

into or any license or permit granted

before the date of E.O. 14098.

Section 3 of E.O. 14098 provides that

the prohibition on any transaction or

dealing in blocked property or interests

in property includes 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 E.O. 14098, and the receipt

of any contribution or provision of

funds, goods, or services from any such

person.

In Section 4 of E.O. 14098, the

President determined that the making of

donations of the types 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 E.O. 14098 would seriously

impair the President’s ability to deal

with the national emergency declared in

E.O. 13067, as expanded. The President

therefore prohibited the donation of

such items except to the extent provided

by statutes, or in regulations, rulings,

instructions, orders, directives, or

licenses that may be issued pursuant to

E.O. 14098.

Section 5 of E.O. 14098 prohibits 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 E.O. 14098, as well as any conspiracy

formed to violate such prohibitions.

Section 9 of E.O. 14098 authorizes 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 E.O. 14098.

Section 9 of E.O. 14098 also provides

that the Secretary of the Treasury may,

consistent with applicable law,

redelegate any of these functions within

the Department of the Treasury.

Current Regulatory Action

In furtherance of the purposes of E.O.

14098, OFAC is changing the heading of

the Darfur Sanctions Regulations, 31

CFR part 546, to the Sudan Stabilization

Sanctions Regulations and amending

the renamed Regulations to implement

E.O. 14098, among other changes. In

particular, in subpart B of the

Regulations, OFAC is revising § 546.201

to incorporate the new designation

criteria provided in E.O. 14098, as well

as adding § 546.201(e) to implement any

future Executive orders issued pursuant

to E.O. 13067. Accordingly, throughout

the Regulations, OFAC is amending all

references to § 546.201(a) to references

to § 546.201. In addition, OFAC is

adding § 546.206 to detail transactions

that are exempt from the prohibitions of

the Regulations pursuant to section

203(b) of IEEPA (50 U.S.C. 1702(b)).

In subpart C of the Regulations, new

definitions are being added to other key

terms used throughout the Regulations.

Because these new definitions were

inserted in alphabetical order, the

definitions that were in the prior

abbreviated set of regulations have been

renumbered. Specifically, OFAC is

clarifying that the term OFAC means the

Office of Foreign Assets Control,

providing a definition for foreign person

at § 546.306, and adding definitional

guidance at § 546.300 clarifying that the

terms defined in subpart C apply

throughout the Regulations.

Furthermore, OFAC is updating

multiple definitions, including its

definition of the term effective date at

§ 546.303.

In subpart D, which contains

interpretive sections regarding the

Regulations, OFAC is amending several

interpretive provisions to align with the

aforementioned changes to subpart B, as

well as updating several provisions for

clarity. OFAC has also added an

interpretive provision at § 546.412 to

clarify that the property and interests in

property of an entity, including any

political subdivision, agency, or

instrumentality of a governmental

entity, are not blocked solely because

one or more persons whose property

and interests in property are blocked

pursuant to § 546.201 is a member,

leader, official, senior executive officer,

or otherwise exercises control.

Transactions otherwise prohibited by

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. OFAC is updating § 546.502 to

conform with current statements of

licensing policy and revising § 546.511,

which authorizes certain transactions

for the official business of certain

international organizations and entities,

and § 546.513, which authorizes certain

transactions related to the provision of

agricultural commodities, medicine,

medical devices, replacement parts and

components, or software updates, and

the extraction, processing, transport,

sale, or distribution of water in Sudan.

OFAC has also added § 546.508, which

authorizes certain payments for legal

services from funds originating outside

the United States. In addition, the

interpretive provisions that were in the

prior set of regulations have been

renumbered.

In subpart G of the Regulations, OFAC

is revising several sections to describe

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 or issuance of a

Finding of Violation. OFAC is adding

§ 546.705 describing the procedures

governing the potential issuance of a

Finding of Violation. Finally, in subpart

H of the Regulations, OFAC is updating

a section heading at § 546.802 to reflect

the delegation of certain authorities of

the Secretary of the Treasury.

Throughout the Regulations, OFAC is

changing references to ‘‘the Office of

Foreign Assets Control’’ and ‘‘the

Director of the Office of Foreign Assets

Control’’ to ‘‘OFAC’’ for purposes of

clarity and simplicity.

Public Participation

Because the Regulations involve a

foreign affairs function, the provisions

of E.O. 12866 of September 30, 1993,

‘‘Regulatory Planning and Review’’ (58

FR 51735, October 4, 1993), as

amended, and the Administrative

Procedure Act (5 U.S.C. 553) requiring

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 546

Administrative practice and

procedure, Banks, banking, Blocking of

assets, Credit, Foreign trade, Penalties,

Reporting and recordkeeping

requirements, Sanctions, Securities,

Services, Sudan.

For the reasons set forth in the

preamble, OFAC amends 31 CFR part

546 as follows:

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PART 546—SUDAN STABILIZATION

SANCTIONS REGULATIONS

■ 1. Revise the heading of part 546 to

read as set forth above.

■ 2. The authority citation for part 546

is revised to read as follows:

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b);

50 U.S.C. 1601–1651, 1701–1706; 22 U.S.C.

287c; Pub. L. 101–410, 104 Stat. 890, as

amended (28 U.S.C. 2461 note); E.O. 13067,

62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O.

13400, 71 FR 25483, 3 CFR, 2006 Comp., p.

220; E.O. 14098, 88 FR 29529.

Subpart B—Prohibitions

■ 3. Revise § 546.201 to read as follows:

§ 546.201 Prohibited transactions

involving blocked property.

(a) 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 U.S. person of the

following persons are blocked and may

not be transferred, paid, exported,

withdrawn, or otherwise dealt in:

(1) E.O. 13400 Annex. The persons

listed in the Annex to Executive Order

13400 of April 26, 2006.

(2) E.O. 13400. Any person

determined by the Secretary of the

Treasury, after consultation with the

Secretary of State:

(i) To have constituted a threat to the

peace process in Darfur;

(ii) To have constituted a threat to

stability in Darfur and the region;

(iii) To be responsible for conduct

related to the conflict in Darfur that

violates international law;

(iv) To be responsible for heinous

conduct with respect to human life or

limb related to the conflict in Darfur;

(v) To have directly or indirectly

supplied, sold, or transferred arms or

any related materiel, or any assistance,

advice, or training related to military

activities to:

(A) The Government of Sudan;

(B) The Sudan Liberation Movement/

Army;

Movement;

(D) The Janjaweed; or

(E) Any person (other than a person

listed in paragraph (a)(2)(v)(A) through

(D) of this section) operating in the

states of North Darfur, South Darfur, or

West Darfur that is a belligerent, a

nongovernmental entity, or an

individual;

(vi) To be responsible for offensive

military overflights in and over the

Darfur region;

(vii) To have materially assisted,

sponsored, or provided financial,

material, or technological support for, or

goods or services to or in support of, any

activity described in paragraph (a)(3)(i)

of this section or any person whose

property and interests in property are

blocked pursuant to paragraph (a)(3) of

this section; or

(v) 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.

(b) The prohibitions in this section

include, but are not limited to,

prohibitions on the following

transactions when engaged in by a

United States person or within the

United States:

(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.

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, any person whose property

and interests in property are blocked

pursuant to this section is prohibited.

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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

provided by statutes, or in regulations,

rulings, instructions, orders, directives,

or licenses that may be issued pursuant

to this part, and notwithstanding any

contract entered into or any license or

permit granted prior to the effective

date.

(e) All transactions prohibited

pursuant to any Executive order issued

after May 4, 2023 pursuant to the

national emergency declared in E.O.

13067 of November 3, 1997 and

expanded by E.O. 13400 of April 26,

2006 and E.O. 14098 of May 4, 2023 are

prohibited pursuant to this part.

Note 1 to § 546.201. The names of persons

listed in, or designated or identified as

blocked pursuant to E.O. 13067, or any

further Executive orders issued pursuant to

the national emergency declared therein,

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) using the following

identifiers: for E.O. 13400: ‘‘[DARFUR]’’; for

E.O. 14098: ‘‘[SUDAN–EO14098]’’; and for

any further Executive orders issued pursuant

to the national emergency declared in E.O.

13067 using the identifier formulation

‘‘[SUDAN–E.O.[E.O. number pursuant to

which the person’s property and interests in

property are blocked]].’’ The SDN List is

accessible through the following page on

OFAC’s website: www.treasury.gov/sdn.

Additional information pertaining to the SDN

List can be found in appendix A to this

chapter. See § 546.411 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 § 546.201. Section 203 of the

International Emergency Economic Powers

Act (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

using the following identifiers: for E.O.

13400: ‘‘[BPI–DARFUR]’’; for E.O. 14098,

‘‘[BPI–SUDAN–EO14098]’’; and for any

further Executive orders issued pursuant to

the national emergency declared in E.O.

13067: using the identifier formulation

‘‘[BPI–SUDAN-[E.O. number pursuant to

which the person’s property and interests in

property are blocked pending

investigation]].’’

Note 3 to § 546.201. 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.

■ 4. Amend § 546.202 by:

■ a. Revising and republishing

paragraph (a);

■ b. In paragraph (b), removing

‘‘§ 546.201(a)’’ and adding in its place

‘‘§ 546.201’’.

■ c. Revising paragraph (c).

■ d. In paragraph (d)(3)(i), removing

‘‘license, or other directive’’ and adding

in its place ‘‘order, directive, license,’’.

■ e. Redesignating paragraph (e) as

paragraph (f).

■ f. Redesignating Note to paragraph (d)

of § 546.202 as paragraph (e).

■ g. In newly redesignated paragraph

(e), removing ‘‘(d)(1) and (d)(2)’’ and

adding in its place ‘‘(d)(1) and (2)’’.

■ h. Revising newly redesignated

paragraph (f);

■ i. Removing ‘‘the Director of the Office

of Foreign Assets Control’’ wherever it

appears and adding in its place

‘‘OFAC’’.

The revisions read as follows:

§ 546.202 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, ruling,

instruction, order, directive, or license

issued pursuant to this part, and that

involves any property or interest in

property blocked pursuant to § 546.201,

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 interest in property.

* * * * *

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, ruling, instruction, order,

directive, or license issued pursuant to

this part.

* * * * *

(f) 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 or interest in

property blocked pursuant to § 546.201.

■ 5. Revise § 546.205 to read as follows:

§ 546.205 Evasions; attempts; causing

violations; conspiracies.

(a) Any transaction on or after the

effective date 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

the prohibitions set forth in this part is

prohibited.

■ 6. Add § 546.206 to read as follows:

§ 546.206 Exempt transactions.

(a) United Nations Participation Act.

The exemptions described in this

section do not apply to transactions

involving property or interests in

property of persons whose property and

interests in property are blocked

pursuant to the authority of the United

Nations Participation Act, as amended

(22 U.S.C. 287c) (UNPA).

Note 1 to paragraph (a). Persons whose

property and interests in property are

blocked pursuant to the authority of the

UNPA include those listed on both OFAC’s

Specially Designated Nationals and Blocked

Persons List (SDN List) and the Consolidated

United Nations Security Council Sanctions

List (UN List) (see https://www.un.org), as

well as persons listed on the SDN List for

being owned or controlled by, or acting for

or on behalf of, persons listed on both the

SDN List and the UN List.

(b) International Emergency Economic

Powers Act. The prohibitions contained in

this part do not apply to any transactions that

are exempt pursuant to section 203(b) of the

International Emergency Economic Powers

Act (50 U.S.C. 1702(b)).

contained in § 546.201(a)(3) do not apply to

transactions for the conduct of the official

business of the United States Government or

the United Nations (and its Specialized

Agencies, Programmes, Funds, and Related

Organizations) by employees, grantees, or

contractors thereof.

Note 2 to § 546.206. See § 546.510 for a

general license authorizing transactions for

the conduct of the official business of the

United States Government not otherwise

exempt.

Note 3 to § 546.206. See § 546.511 for a

general license authorizing transactions for

the conduct of the official business of certain

international organizations and entities not

otherwise exempt.

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Subpart C—General Definitions

§§ 546.305 through 546.313

[Redesignated]

■ 7. Redesignate §§ 546.305 through

546.313 as follows:

Old section New section

546.305 546.308

546.306 546.309

546.307 546.311

546.308 546.312

546.309 546.313

546.310 546.314

546.311 546.315

546.312 546.316

546.313 546.305

■ 8. Add § 546.300 to read as follows:

§ 546.300 Applicability of definitions.

The definitions in this subpart apply

throughout the entire part.

■ 9. Revise and republish § 546.302 to

read as follows:

§ 546.302 Blocked account; blocked

property.

The terms blocked account and

blocked property mean any account or

property subject to the prohibitions in

§ 546.201 held in the name of a person

whose property and interests in

property are blocked pursuant to

§ 546.201, 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 1 to § 546.302: See § 546.411

concerning the blocked status of property

and interests in property of an entity that is

directly or indirectly owned, whether

individually or in the aggregate, 50 percent

or more by one or more persons whose

property and interests in property are

blocked pursuant to § 546.201.

■ 10. Revise § 546.303 to read as

follows:

§ 546.303 Effective date.

(a) The term effective date refers to

the effective date of the applicable

prohibitions and directives contained in

this part as follows:

(1) With respect to a person whose

property and interests in property are

blocked pursuant to § 546.201(a)(1),

12:01 a.m. eastern daylight time, April

27, 2006;

(2) With respect to a person whose

property and interests in property are

otherwise blocked pursuant to

§ 546.201, the earlier of the date of

actual or constructive notice that such

person’s property and interests in

property are blocked.

(b) For the purposes of this section,

constructive notice is the date that a

notice of the blocking of the relevant

person’s property and interests in

property is published in the Federal

§ 546.305 [Amended]

■ 11. Amend newly designated

§ 546.305 as follows:

■ a. Remove ‘‘, as used in

§ 546.201(a)(2)(vii) of this part,’’.

■ b. Remove ’’ but not limited to’’.

■ 12. Add § 546.306 to read as follows:

§ 546.306 Foreign person.

The term foreign person means any

person that is not a U.S. person.

§ 546.307 [Reserved]

■ 13. Add and reserve § 546.307.

§ 546.309 [Amended]

■ 14. Revise newly designated § 546.309

as follows:

(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

website: https://ofac.treasury.gov/.

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 website: https://

ofac.treasury.gov.

■ 15. Add § 546.310 to read as follows:

§ 546.310 OFAC.

The term OFAC means the

Department of the Treasury’s Office of

Foreign Assets Control.

§ 546.312 [Amended]

■ 16. In newly designated § 546.312,

remove ‘‘, but are not limited to,’’.

§ 546.313 [Amended]

■ 17. Amend newly designated

§ 546.313 by removing ‘‘ and, without

limitation upon the foregoing’’ and

adding, in its place, ‘‘. Without

limitation on the foregoing, it’’.

■ 18. Revise newly redesignated

§ 546.315 to read as follows:

§ 546.315 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, purchasing or

selling foreign exchange, securities,

futures or options, or procuring

purchasers and sellers thereof, as

principal or agent. It includes

depository institutions, banks, savings

banks, money services businesses,

operators of credit card systems, trust

companies, insurance companies,

securities brokers and dealers, futures

and options brokers and dealers,

forward contract and foreign exchange

merchants, securities and commodities

exchanges, clearing corporations,

investment companies, employee

benefit plans, dealers in precious

metals, stones, or jewels, 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

■ 19. Revise § 546.401 to read as

follows:

§ 546.401 Reference to amended sections.

(a) Reference to any section in this

part is a reference to the same as

currently amended, unless the reference

includes a specific date. See 44 U.S.C.

1510.

(b) Reference to any regulation, ruling,

instruction, order, directive, or license

issued pursuant to this part is a

reference to the same as currently

amended unless otherwise specified.

■ 20. Revise § 546.402 to read as

follows:

§ 546.402 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 regulation, ruling,

instruction, order, directive, 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

regulation, ruling, instruction, order,

directive, or license continue and may

be enforced as if such amendment,

modification, or revocation had not

been made.

§ 546.403 [Amended]

■ 21. Amend § 546.403 as follows:

■ a. In paragraph (a),

■ i. Add ‘‘ whose property and interests

in property are blocked pursuant to

§ 546.201’’ after ‘‘away from a person’’;

and

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■ ii. Remove ‘‘or any other part of this

chapter’’; and

■ b. Remove ‘‘§ 546.201(a)’’ wherever it

appears and add in its place

‘‘§ 546.201’’.

■ 22. Revise § 546.404 to read as

follows:

§ 546.404 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 a person

whose property and interests in

property are blocked pursuant to

§ 546.201; 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) For example, a license authorizing

a person to complete a securities sale

involving Company A, whose property

and interests in property are blocked

pursuant to § 546.201, 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

§ 546.201.

§ 546.405 [Amended]

■ 23. Amend § 546.405 as follows:

■ a. In both places where it occurs,

remove ‘‘§ 546.201(a)’’ and add in its

place ‘‘§ 546.201’’.

■ b. In Note to § 546.405, remove

‘‘§§ 546.507 and 546.508’’ and add in its

place ‘‘§§ 546.507 and 546.509’’.

§ 546.410 [Amended]

■ 24. Amend § 546.410 by removing

‘‘bank’’ and adding in its place

‘‘financial institution’’.

■ 25. Add § 546.412 to read as follows:

§ 546.412 Entities of which one or more

blocked persons is a member, leader,

official, senior executive officer, or

otherwise exercises control.

(a) The property and interests in

property of an entity, including any

political subdivision, agency, or

instrumentality of a governmental

entity, are not blocked solely because

one or more persons whose property

and interests in property are blocked

pursuant to § 546.201 is a member,

leader, official, senior executive officer,

or otherwise exercises control.

Note 1 to paragraph (a). See § 546.411

concerning the blocked status of property

and interests in property of an entity that is

directly or indirectly owned, whether

individually or in the aggregate, 50 percent

or more by one or more persons whose

property and interests in property are

blocked pursuant to § 546.201.

(b) For example, U.S. persons may not,

except as authorized or exempt pursuant to

this part, engage in the following transactions

with a person whose property and interests

in property are blocked pursuant to

§ 546.201: enter into contracts that are signed

by a blocked person, enter into negotiations

with a blocked person, or process

transactions, directly or indirectly, on behalf

of a person whose property and interests in

property are blocked pursuant to § 546.201.

However, U.S. persons are not prohibited

from engaging in a routine interaction with

an agency in which a blocked person is an

official, but which does not involve the

blocked person directly or indirectly.

Note 2 to § 546.412. OFAC encourages U.S.

persons to be cautious in engaging in

transactions with any entity of which a

person whose property and interests in

property are blocked pursuant to § 546.201 is

a member, leader, official, senior executive

officer, or otherwise exercises control to

ensure that U.S. persons are not engaged in

transactions, directly or indirectly, with a

blocked person, except as authorized or

exempt pursuant to this part.

Subpart E—Licenses, Authorizations,

and Statements of Licensing Policy

■ 26. Redesignate §§ 546.508 through

546.512 as follows:

Old section New section

546.508 546.509

546.509 546.510

546.510 546.511

546.511 546.512

546.512 546.513

■ 27. Revise and republish § 546.501 to

read as follows:

§ 546.501 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 Sudan

Stabilization Sanctions Regulations

sanctions page on OFAC’s website:

https://ofac.treasury.gov.

■ 28. Revise § 546.502 to read as

follows:

§ 546.502 Effect of license or other

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,

order, directive, or license authorizes

any transaction prohibited under this

part unless the regulation, ruling,

instruction, order, directive, or license

is issued by OFAC and specifically

refers to this part. No regulation, ruling,

instruction, order, directive, 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, order,

directive, or license specifically refers to

such part.

order, directive, or license authorizing

any transaction 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, order,

directive, or license otherwise specifies,

such an authorization does not create

any right, duty, obligation, claim, or

interest in, or with respect to, any

property that 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 that are not

prohibited by this part or that 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.

(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

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relevant OFAC general or specific

license authorizing the payment to

avoid the blocking or rejection of the

transfer.

■ 29. Revise § 546.507 to read as

follows:

§ 546.507 Provision of certain legal

services.

(a) The provision of the following

legal services to or on behalf of persons

whose property and interests in

property are blocked pursuant to

§ 546.201 is authorized, provided that

any receipt of payment of professional

fees and reimbursement of incurred

expenses must be authorized pursuant

to § 546.508, which authorizes certain

payments for legal services from funds

originating outside the United States;

via specific license; or otherwise

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

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 or on behalf of persons

whose property and interests in

property are blocked pursuant to

§ 546.201, not otherwise authorized in

this part, requires the issuance of a

specific license.

specific authorization to provide related

services, such as making filings and

providing other administrative services,

that are ordinarily incident to the

provision of services authorized by

paragraph (a) of this section.

Additionally, U.S. persons who provide

services authorized by paragraph (a) of

this section 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.

See § 546.404.

(d) 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 § 546.201

is prohibited unless licensed pursuant

to this part.

Note 1 to § 546.507. Pursuant to part 501,

subpart E, of this chapter, 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 certain

blocked funds for the payment of

professional fees and reimbursement of

incurred expenses for the provision of such

legal services where alternative funding

sources are not available.

■ 30. Add § 546.508 to read as follows:

§ 546.508 Payments for legal services from

funds originating outside the United States.

(a) Professional fees and incurred

expenses. (1) Receipt of payment of

professional fees and reimbursement of

incurred expenses for the provision of

legal services authorized pursuant to

§ 546.507(a) to or on behalf of any

person whose property and interests in

property are blocked pursuant to

§ 546.201, is authorized from funds

originating outside the United States,

provided that the funds do not originate

from:

(i) A source within the United States;

(ii) Any source, wherever located,

within the possession or control of a

U.S. person; or

(iii) Any individual or entity, other

than the person on whose behalf the

legal services authorized pursuant to

§ 546.507(a) are to be provided, whose

property and interests in property are

blocked pursuant to any part of this

chapter or any Executive order or

statute.

(2) Nothing in this paragraph (a)

authorizes payments for legal services

using funds in which any other person

whose property and interests in

property are blocked pursuant to

§ 546.201, any other part of this chapter,

or any Executive order or statute has an

interest.

(b) Records. Consistent with § 501.601

of this chapter, U.S. persons who

receive payments pursuant to paragraph

(a) of this section must retain for five

years from the date of the relevant

payment a record that specifies the

following for each payment:

(1) The individual or entity from

whom the funds originated and the

amount of funds received; and

(2) If applicable:

(i) 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;

(ii) A general description of the

services provided; and

(iii) The amount of funds paid in

connection with such services.

(3) These records must be furnished to

OFAC on demand consistent with

§ 501.602 of this chapter.

■ 31. Revise newly redesignated

§ 546.509 to read as follows:

§ 546.509 Emergency medical services.

The provision and receipt of

nonscheduled emergency medical

services that are prohibited by this part

are authorized.

■ 32. Amend newly redesignated

§ 546.511 by:

■ a. In paragraph (a)(5), removing

‘‘and’’;

■ b. In paragraph (a)(6), removing ‘‘.’’

and adding in its place ‘‘; and’’; and

■ c. Adding paragraph (a)(7).

The addition reads as follows:

§ 546.511 Official business of certain

international organizations and entities.

* * * * *

(a) * * *

(7) The African Union, including the

African Union Commission and other

subsidiary bodies and organs.

* * * * *

■ 33. Revise newly redesignated

§ 546.513 to read as follows:

§ 546.513 Transactions related to the

provision of agricultural commodities,

medicine, medical devices, replacement

parts and components, or software

updates, and the extraction, processing,

transport, sale, or distribution of water in

Sudan.

(a) All transactions prohibited by this

part that are related to the provision of

agricultural commodities, medicine,

medical devices, replacement parts and

components for medical devices, or

software updates for medical devices to

Sudan or to persons in third countries

purchasing specifically for resale to

Sudan, or to an individual whose

property and interests in property are

blocked pursuant to this part in

quantities consistent with personal,

non-commercial use, are authorized.

(b) All transactions prohibited by this

part that are related to the extraction,

processing, transport, sale, or

distribution of water, including the

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maintenance or repair of water

pipelines, are authorized.

license, agricultural commodities,

medicine, and medical devices are

defined as follows:

(1) Agricultural commodities.

Agricultural commodities are products:

(i) That fall within the term

‘‘agricultural commodity’’ as defined in

section 102 of the Agricultural Trade

Act of 1978 (7 U.S.C. 5602); and

(ii) That are intended for ultimate use

in Sudan as:

(A) Food for humans (including raw,

processed, and packaged foods; live

animals; vitamins and minerals; food

additives or supplements; and bottled

drinking water) or animals (including

animal feeds);

(B) Seeds for food crops;

(D) Reproductive materials (such as

live animals, fertilized eggs, embryos,

and semen) for the production of food

animals.

(2) Medicine. Medicine is an item that

falls within the definition of the term

‘‘drug’’ in section 201 of the Federal

Food, Drug, and Cosmetic Act (21 U.S.C.

321).

(3) Medical devices. A medical device

is an item that falls within the definition

of ‘‘device’’ in section 201 of the Federal

Food, Drug, and Cosmetic Act (21 U.S.C.

321).

Note 1 to § 546.513. This general license

does not relieve any person authorized

thereunder from complying with any other

applicable laws or regulations.

Subpart G—Penalties and Findings of

Violation

■ 34. Revise the heading of subpart G to

read as set forth above.

■ 35. Revise § 546.701 to read as

follows:

§ 546.701 Penalties.

(a) Section 206 of the International

Emergency Economic Powers Act (50

U.S.C. 1705) (IEEPA) is applicable to

violations of the provisions of any

regulation, ruling, instruction, order,

directive, or license 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

regulation, ruling, instruction, order,

directive, license, or prohibition issued

under IEEPA.

(2) IEEPA provides for a maximum

civil penalty not to exceed the greater of

$368,136 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.

(3) A person who willfully commits,

willfully attempts to commit, willfully

conspires to commit, or aids or abets in

the commission of a violation of any

regulation, ruling, instruction, order,

directive, license, 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)(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 are subject to adjustment

pursuant to 18 U.S.C. 3571.

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, imprisoned, or

both.

(d) Section 5(b) of the United Nations

Participation Act, as amended (22

U.S.C. 287c(b)) (UNPA), 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 Section 5(a) of

the UNPA shall, upon conviction, be

fined not more than $1,000,000 and, if

a natural person, be imprisoned for not

more than 20 years, or both.

(e) 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 (d) of

this section.

(f) Violations of this part may also be

subject to other applicable laws.

■ 36. Revise § 546.702 to read as

follows:

§ 546.702 Pre-Penalty Notice; settlement.

(a) When required. If OFAC has

reason to believe that there has occurred

a violation of any provision of this part

or a violation of the provisions of any

regulation, ruling, instruction, order,

directive, or license 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 (50

U.S.C. 1701 et seq.) and determines that

a civil monetary penalty is warranted,

OFAC 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) Response—(1) Right to respond.

An alleged violator has the right to

respond to a Pre-Penalty Notice by

making a written presentation to OFAC.

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 30 days as set forth in paragraphs

(b)(2)(i) and (ii) of this section. The

failure to submit a response within 30

days 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 OFAC

by courier), or dated if sent by email, on

or before the 30th day after the postmark

date on the envelope in which the Pre-

Penalty Notice was mailed or date the

Pre-Penalty Notice was emailed. If the

Pre-Penalty Notice was personally

delivered by a non-U.S. Postal Service

agent authorized by OFAC, 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 OFAC, only upon

specific request to OFAC.

(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 (electronic signature is

acceptable), contain information

sufficient to indicate that it is in

response to the Pre-Penalty Notice, and

include the OFAC identification number

listed on the Pre-Penalty Notice. The

response must be sent to OFAC’s

Enforcement Division by mail or courier

or email and must be postmarked or

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date-stamped in accordance with

paragraph (b)(2) of this section.

may be initiated by OFAC, 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 OFAC 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 OFAC 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.

■ 37. Add § 546.705 to read as follows:

§ 546.705 Findings of Violation.

(a) When issued. (1) OFAC may issue

an initial Finding of Violation that

identifies a violation if OFAC:

(i) Determines that there has occurred

a violation of any provision of this part,

or a violation of the provisions of any

regulation, ruling, instruction, order,

directive, or license 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 (50

U.S.C. 1701 et seq);

(ii) Considers it important to

document the occurrence of a violation;

and

(iii) Based on the Guidelines

contained in appendix A to part 501 of

this chapter, concludes that an

administrative response is warranted

but that a civil monetary penalty is not

the most appropriate response.

(2) An initial Finding of Violation

shall be in writing and may be issued

whether or not another agency has taken

any action with respect to the matter.

For additional details concerning

issuance of a Finding of Violation, see

appendix A to part 501 of this chapter.

(b) Response—(1) Right to respond.

An alleged violator has the right to

contest an initial Finding of Violation

by providing a written response to

OFAC.

(2) Deadline for response; default

determination. A response to an initial

Finding of Violation must be made

within 30 days as set forth in paragraphs

(b)(2)(i) and (ii) of this section. The

failure to submit a response within 30

days shall be deemed to be a waiver of

the right to respond, and the initial

Finding of Violation will become final

and will constitute final agency action.

The violator has the right to seek

judicial review of that final agency

action in federal district court.

(i) Computation of time for response.

A response to an initial Finding of

Violation 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 OFAC by courier), or

dated if sent by email, on or before the

30th day after the postmark date on the

envelope in which the initial Finding of

Violation was served or date the Finding

of Violation was sent by email. If the

initial Finding of Violation was

personally delivered by a non-U.S.

Postal Service agent authorized by

OFAC, 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 OFAC, only upon

specific request to OFAC.

(3) Form and method of response. A

response to an initial Finding of

Violation need not be in any particular

form, but it must be typewritten and

signed by the alleged violator or a

representative thereof (electronic

signature is acceptable), contain

information sufficient to indicate that it

is in response to the initial Finding of

Violation, and include the OFAC

identification number listed on the

initial Finding of Violation. The

response must be sent to OFAC’s

Enforcement Division by mail or courier

or email and must be postmarked or

date-stamped in accordance with

paragraph (b)(2) of this section.

(4) Information that should be

included in response. Any response

should set forth in detail why the

alleged violator either believes that a

violation of the regulations did not

occur and/or why a Finding of Violation

is otherwise unwarranted under the

circumstances, with reference to the

General Factors Affecting

Administrative Action set forth in the

Guidelines contained in appendix A to

part 501 of this chapter. The response

should include all documentary or other

evidence available to the alleged

violator that supports the arguments set

forth in the response. OFAC will

consider all relevant materials

submitted in the response.

that a Finding of Violation is warranted.

If, after considering the response, OFAC

determines that a final Finding of

Violation should be issued, OFAC will

issue a final Finding of Violation that

will inform the violator of its decision.

A final Finding of Violation shall

constitute final agency action. The

violator has the right to seek judicial

review of that final agency action in

federal district court.

(2) Determination that a Finding of

Violation is not warranted. If, after

considering the response, OFAC

determines a Finding of Violation is not

warranted, then OFAC will inform the

alleged violator of its decision not to

issue a final Finding of Violation.

Note 1 to paragraph (c)(2). A

determination by OFAC that a final Finding

of Violation is not warranted does not

preclude OFAC from pursuing other

enforcement actions consistent with the

Guidelines contained in appendix A to part

501 of this chapter.

(d) Representation. A representative of the

alleged violator may act on behalf of the

alleged violator, but any oral communication

with OFAC prior to a written submission

regarding the specific alleged violations

contained in the initial Finding of Violation

must be preceded by a written letter of

representation, unless the initial Finding of

Violation was served upon the alleged

violator in care of the representative.

Subpart H—Procedures. [Amended]

■ 38. Revise and republish § 546.802 to

read as follows:

§ 546.802 Delegation of certain authorities

of the Secretary of the Treasury

Any action that the Secretary of the

Treasury is authorized to take pursuant

to Executive Order 13400, Executive

Order 14098, and any further Executive

orders relating to the national

emergency declared in Executive Order

13067, 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.

§ § 546.503, 546.704. [Amended]

■ 39. In addition to the amendments set

forth above, in 31 CFR part 546, remove

the words ‘‘the Director of the Office of

Foreign Assets Control’’ and add, in

their place, the words ‘‘OFAC’’ in the

following places:

■ a. Section 546.503; and

■ b. Section 546.704.

§§ 546.203, 546.204, 546.408, 546.703.

[Amended]

■ 40. In addition to the amendments set

forth above, in 31 CFR part 546, remove

the words ‘‘the Office of Foreign Assets

Control’’ and add, in their place, the

words ‘‘OFAC’’ in the following places:

■ a. Section 546.203(a) and (c);

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Federal Register / Vol. 89, No. 44 / Tuesday, March 5, 2024 / Rules and Regulations

■ b. Section 546.204(b);

■ c. Section 546.408; and

■ d. Section 546.703.

§§ 546.203, 546.204, 546.406, 546.408,

546.409, 546.504, and 546.506. [Amended]

■ 41. In addition to the amendments set

forth above, in 31 CFR part 546, remove

the words ‘‘546.201(a)’’ and add, in their

place, the words ‘‘546.201’’ in the

following places:

■ a. Section 546.203(a), (c), (d), and (f);

■ b. Section 546.204(a) and (b);

■ c. Section 546.406;

■ d. Section 546.408;

■ e. Section 546.409;

■ f. Section 546.504; and

■ g. Section 546.506.

Bradley T. Smith,

Director, Office of Foreign Assets Control.

[FR Doc. 2024–04500 Filed 3–1–24; 8:45 am]

BILLING CODE 4810–AL–P

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 3

Processing Applications for Health

Care, Sergeant First Class Heath

Robinson Honoring Our Promise To

Address Comprehensive Toxics Act of

2022, or the Honoring Our PACT Act of

2022

AGENCY

: Department of Veterans Affairs.

ACTION

: Notification of sub-regulatory

guidance.

SUMMARY

: This notice informs the public

of the Department of Veterans Affairs

(VA) implementation of the Honoring

our PACT Act of 2022, which expands

health care to three new cohorts of

toxic-exposed veterans.

DATES

: The guidance is effective upon

publication. VA invites comments on

this notice and its plan for

implementation. To ensure VA

considers your comment, comments are

to be submitted on or before April 4,

2024.

ADDRESSES

: Comments must be

submitted through www.regulations.gov.

Except as provided below, comments

received before the close of the

comment period will be available at

www.regulations.gov for public viewing,

inspection, or copying, including any

personally identifiable or confidential

business information that is included in

a comment. We post the comments

received before the close of the

comment period on

www.regulations.gov as soon as possible

after they have been received. VA will

not post on www.regulations.gov public

comments that make threats to

individuals or institutions or suggest

that the commenter will take actions to

harm an individual. VA encourages

individuals not to submit duplicative

comments; however, we will post

comments from multiple unique

commenters even if the content is

identical or nearly identical to other

comments. Any public comment

received after the comment period’s

closing date is considered late and will

not be considered.

FOR FURTHER INFORMATION CONTACT

Ralph Weishaar, Director, Business

Support Office, VHA Member Services

(15MEM) Business Policy, Department

of Veterans Affairs, 810 Vermont

Avenue NW, Washington, DC 20420,

202–461–9700 (this is not a toll-free

number).

SUPPLEMENTARY INFORMATION

: On August

10, 2022, the President signed into law

the Honoring our PACT Act of 2022 (the

PACT Act), Public Law 117–168.

Section 103(a)(1) of the PACT Act

amended section 1710(e)(1) of title 38,

United States Code (U.S.C.) to establish

eligibility for hospital care, medical

services, and nursing home care for

three new cohorts of toxic-exposed

veterans. Sections 1710(e)(1)(G) through

(I) describe these three new cohorts of

toxic-exposed veterans as follows:

• Cohort 1: Veterans who participated

in a toxic exposure risk activity while

serving on active duty, active duty for

training, or inactive duty training. (See

38 U.S.C. 1710(e)(1)(G)).

• Cohort 2: Covered veterans as

defined in 38 U.S.C. 1119(c). (See 38

U.S.C. 1710(e)(1)(H)). Covered veterans

are those veterans who:

Æ Performed active military, naval,

air, or space service on or after August

2, 1990, while assigned to a duty station

in (including airspace above): Bahrain,

Iraq, Kuwait, Oman, Qatar, Saudi

Arabia, Somalia, or the United Arab

Emirates; or

Æ Performed active military, naval,

air, or space service on or after

September 11, 2001, while assigned to

a duty station in (including airspace

above) Afghanistan, Djibouti, Egypt,

Jordan, Lebanon, Syria, Yemen,

Uzbekistan, or any other country

determined relevant by VA (note: VA

has not determined any other country

relevant at this time).

• Cohort 3: Veterans who deployed in

support of Operation Enduring

Freedom, Operation Freedom’s Sentinel,

Operation Iraqi Freedom, Operation

New Dawn, Operation Inherent Resolve,

and Resolute Support Mission. (See 38

U.S.C. 1710(e)(1)(I)).

Section 1710(e)(6)(A), as added by

section 103(a) of the PACT Act,

established a specific schedule for

eligibility for these veterans depending

upon their cohort and their date of

discharge or release from the Armed

Forces. However, section

1710(e)(6)(B)(i) authorizes VA to

modify, to an earlier date, the start dates

of VA health care eligibility for the three

new cohorts of toxic-exposed veterans.

The Secretary has determined

modifying these dates is appropriate

based on the number of veterans

receiving hospital care, medical

services, and nursing home care under

section 1710(e)(1)(G) through (I) and the

resources available to VA.

Consequently, VA is announcing that,

effective March 5, 2024, veterans in the

three cohorts described above,

corresponding to section 1710(e)(1)(G)

through (I), are eligible to enroll in VA

health care on this basis. Modifying the

phased-in schedule to an earlier single

eligibility expansion date will provide

an all-at-once approach for newly

eligible veterans based on the

amendments made by section 103(a) of

the PACT Act.

To help expedite the VA health care

Priority Group upgrade process, VA is

developing and will implement system

enhancements to VHA’s Enrollment

System (VES) to assess the enrollment

records of veterans who VA enrolled in

Priority Group 6 based on their status as

a combat veteran (as described in 38

U.S.C. 1710(e)(1)(D)) to determine their

eligibility for continued assignment to

Priority Group 6 based on their

qualification in Cohort 2 or 3.

Additionally, VES will assess the

enrollment records of veterans enrolled

in Priority Groups 7 and 8 to determine

their eligibility for assignment to

Priority Group 6 under Cohort 2 or 3. By

the end of fiscal year 2024, VA will

begin conducting targeted outreach to

veterans currently enrolled in Priority

Groups 7 and 8 whom VA could not

determine eligibility for assignment to

Priority Group 6 based on being in

Cohorts 1, 2, or 3. VA will provide

guidance to these veterans on the new

authorities, along with instructions on

how to submit a VA Form 10–10EZR,

Health Benefits Update Form, for

consideration of an upgrade to their

enrollment Priority Group.

Eligibility Based on Toxic Exposure

Risk Activity (TERA)

Background: Cohort 1 veterans are

those who participated in a toxic

exposure risk activity (TERA) while

serving on active duty, active duty for

training, or inactive duty training. If the

veteran only participated in a TERA

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