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plan by a firm may give rise to

circumstances indicating a lack of

independence with respect to the

employee benefit plan (e.g., result in the

accountant or firm providing services

that are subject to audit procedures as

part of the plan’s audit), and, in

accordance with paragraph (a) of this

section, in determining whether an

accountant or accounting firm is not, in

fact, independent with respect to a

particular plan, the Department will

give appropriate consideration to all

relevant circumstances, including

evidence bearing on all relationships

between the accountant or accounting

firm and that of the plan sponsor or any

affiliate thereof.

(3) Rendering multiple services to a

plan by a firm also may involve

prohibited transactions under ERISA

and requirements to comply with

conditions in prohibited transaction

exemptions such as prohibited

transaction exemption in ERISA section

408(b)(2) for ERISA section 406(a)(1)(C)

service provider transactions.

(d) Definitions. For purposes of this

section:

(1) Member means all partners or

shareholder employees in the firm and

all professional employees participating

in the audit or located in an office of the

firm participating in a significant

portion of the audit; the firm’s employee

benefit plans; or an entity whose

operating, financial, or accounting

policies can be controlled by any of the

individuals or entities described in this

paragraph (d)(1) or by two or more such

individuals or entities acting together.

(2) Office means a reasonably distinct

subgroup within a firm, whether

constituted by formal organization or

informal practice, in which personnel

who make up the subgroup generally

serve the same group of clients or work

on the same categories of matters

regardless of the physical location of the

individuals who comprise such

subgroup. Substance should govern the

office classification, and the expected

regular personnel interactions and

assigned reporting channels of an

individual may well be more important

than an individual’s physical location.

(3) Period of professional engagement

means the period beginning when an

accountant either signs an initial

engagement letter or other agreement to

perform the audit or begins to perform

any audit, review or attest procedures

(including planning the audit of the

plan’s financial statements), whichever

is earlier, and ending with the formal

notification, either by the member or

client, of the termination of the

professional relationship or the issuance

of the audit report for which the

accountant was engaged, whichever is

later. In the case of an auditor that

performs a plan’s audit for two or more

years, in evaluating independence, the

Department would not view the period

of professional engagement as ending

with the issuance of each year’s audit

report and recommencing with the

beginning of the following year’s audit

engagement.

Signed at Washington, DC, this 26th day of

August, 2022.

Ali Khawar,

Acting Assistant Secretary, Employee Benefits

Security Administration, U.S. Department of

Labor.

[FR Doc. 2022–18898 Filed 9–2–22; 8:45 am]

BILLING CODE 4510–29–P

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 578

Cyber-Related 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 amending the Cyber-

Related Sanctions Regulations and

reissuing them in their entirety to

further implement an April 1, 2015

cyber-related Executive order, as

amended by a December 28, 2016 cyber-

related Executive order, as well as

certain provisions of the Countering

America’s Adversaries Through

Sanctions Act. This final rule replaces

the regulations that were published in

abbreviated form on December 31, 2015,

and includes additional interpretive

guidance and definitions, general

licenses, and other regulatory provisions

that will provide further guidance to the

public. Due to the number of regulatory

sections being updated or added, OFAC

is reissuing the Cyber-Related Sanctions

Regulations in their entirety.

DATES

: This rule is effective September

6, 2022.

FOR FURTHER INFORMATION CONTACT

OFAC: Assistant Director for Licensing,

202–622–2480; Assistant Director for

Regulatory Affairs, 202–622–4855; or

Assistant Director for Sanctions

Compliance & Evaluation, 202–622–

2490.

SUPPLEMENTARY INFORMATION

Electronic Availability

This document and additional

information concerning OFAC are

available on OFAC’s website:

www.treas.gov/ofac.

Background

On December 31, 2015, OFAC issued

the Cyber-Related Sanctions

Regulations, 31 CFR part 578 (80 FR

81752, December 31, 2015) (the

‘‘Regulations’’) to implement Executive

Order (E.O.) 13694 of April 1, 2015,

‘‘Blocking the Property of Certain

Persons Engaging in Significant

Malicious Cyber-Enabled Activities’’ (80

FR 18077, April 2, 2015), pursuant to

authorities delegated to the Secretary of

the Treasury in E.O. 13694. The

Regulations were initially issued in

abbreviated form for the purpose of

providing immediate guidance to the

public. OFAC is revising the

Regulations to further implement E.O.

13694, as amended by E.O. 13757 of

December 28, 2016, ‘‘Taking Additional

Steps to Address the National

Emergency With Respect to Significant

Malicious Cyber-Enabled Activities’’ (82

FR 1, January 3, 2017), as well as certain

provisions of title II of the Countering

America’s Adversaries Through

Sanctions Act (Pub. L. 115–44, 131 Stat.

886 (codified in scattered sections of 22

U.S.C.)) (CAATSA). OFAC is amending

and reissuing the Regulations as a more

comprehensive set of regulations that

includes additional interpretive

guidance and definitions, general

licenses, and other regulatory provisions

that will provide further guidance to the

public. Due to the number of regulatory

sections being updated or added, OFAC

is reissuing the Regulations in their

entirety.

E.O. 13694, as Amended by E.O. 13757

On April 1, 2015, 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. 13694. In E.O.

13694, the President determined that

the increasing prevalence and severity

of malicious cyber-enabled activities

originating from, or directed by persons

located, in whole or in substantial part,

outside the United States constitute an

unusual and extraordinary threat to the

national security, foreign policy, and

economy of the United States, and

declared a national emergency to deal

with that threat.

On December 28, 2016, the President

issued E.O. 13757 to take additional

steps to deal with the national

emergency with respect to significant

malicious cyber-enabled activities

declared in E.O. 13694. E.O. 13757

added an Annex to E.O. 13694 and

amended section 1 of E.O. 13694 by

replacing section 1(a) in its entirety.

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New subsection 1(a) of E.O. 13694, as

amended by E.O. 13757 (‘‘amended E.O.

13694’’), 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) the

persons listed in the Annex to amended

E.O. 13694; (ii) any person determined

by the Secretary of the Treasury, in

consultation with the Attorney General

and the Secretary of State, to be

responsible for or complicit in, or to

have engaged in, directly or indirectly,

cyber-enabled activities originating

from, or directed by persons located, in

whole or in substantial part, outside the

United States that are reasonably likely

to result in, or have materially

contributed to, a significant threat to the

national security, foreign policy, or

economic health or financial stability of

the United States and that have the

purpose or effect of: (A) harming, or

otherwise significantly compromising

the provision of services by, a computer

or network of computers that support

one or more entities in a critical

infrastructure sector; (B) significantly

compromising the provision of services

by one or more entities in a critical

infrastructure sector; (C) causing a

significant disruption to the availability

of a computer or network of computers;

(D) causing a significant

misappropriation of funds or economic

resources, trade secrets, personal

identifiers, or financial information for

commercial or competitive advantage or

private financial gain; or (E) tampering

with, altering, or causing a

misappropriation of information with

the purpose or effect of interfering with

or undermining election processes or

institutions; and (iii) any person

determined by the Secretary of the

Treasury, in consultation with the

Attorney General and the Secretary of

State: (A) to be responsible for or

complicit in, or to have engaged in, the

receipt or use for commercial or

competitive advantage or private

financial gain, or by a commercial

entity, outside the United States of trade

secrets misappropriated through cyber-

enabled means, knowing they have been

misappropriated, where the

misappropriation of such trade secrets is

reasonably likely to result in, or has

materially contributed to, a significant

threat to the national security, foreign

policy, or economy of the United States;

(B) 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 subsections

(1)(a)(ii) or (iii)(A) of amended E.O.

13694, or any person whose property

and interests in property are blocked

pursuant to amended E.O. 13694; (C) 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

amended E.O. 13694; or (D) to have

attempted to engage in any of the

activities described in subsections

(1)(a)(ii) and (iii)(A)–(C) of amended

E.O. 13694.

In section 2 of amended E.O. 13694,

the President determined 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

amended E.O. 13694 would seriously

impair the President’s ability to deal

with the national emergency declared in

amended E.O. 13694. The President

therefore prohibited the donation of

such items except to the extent provided

by statutes, or in regulations, orders,

directives, or licenses that may be

issued pursuant to amended E.O. 13694.

Section 3 of amended E.O. 13694

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

amended E.O. 13694, and the receipt of

any contribution or provision of funds,

goods, or services from any such person.

Section 5 of amended E.O. 13694

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 amended E.O.

13694, as well as any conspiracy formed

to violate such prohibitions.

Section 8 of amended E.O. 13694

authorizes the Secretary of the Treasury,

in consultation with the Attorney

General and 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

amended E.O. 13694. Section 8 of

amended E.O. 13694 also provides that

the Secretary of the Treasury may

redelegate any of these functions to

other officers and agencies of the U.S.

Government.

Cyber-Related CAATSA Provisions

CAATSA, which was signed into law

on August 2, 2017, established new

sanctions authorities and exceptions, in

addition to amending, modifying, or

otherwise affecting certain Ukraine-/

Russia-related Executive orders and

directives, the Ukraine Freedom

Support Act of 2014 (22 U.S.C. 8921–

8930) (UFSA), and the Support for the

Sovereignty, Integrity, Democracy, and

Economic Stability of Ukraine Act of

2014 (22 U.S.C. 8901–8910) (SSIDES).

Title II of CAATSA also required the

imposition of sanctions with respect to,

among others, activities of the Russian

Federation that undermine

cybersecurity and persons who

knowingly provide financial services in

support of activities that undermine

cybersecurity. Section 224(a)(1) of

CAATSA requires the President, on or

after 60 days after the enactment of

CAATSA, to block all property and

interests in property that are in the

United States, that come within the

United States, or that are or come within

the possession or control of any U.S.

person of any person that the President

determines: (A) knowingly engages in

significant activities undermining

cybersecurity against any person,

including a democratic institution, or

government on behalf of the

Government of the Russian Federation;

or (B) is owned or controlled by, or acts

or purports to act for or on behalf of,

directly or indirectly, such a person.

Section 224(a)(2) of CAATSA imposes

menu-based sanctions described in

section 235 of CAATSA with respect to

any person that the President

determines knowingly materially

assists, sponsors, or provides financial,

material, or technological support for, or

goods or services (except financial

services) in support of, significant

activities undermining cybersecurity

against any person, including a

democratic institution, or government

on behalf of the Government of the

Russian Federation. Section 228 of

CAATSA added section 10 to SSIDES,

which requires the imposition of

sanctions on, among others, foreign

persons that the President determines,

on or after August 2, 2017, knowingly

materially violate, attempt to violate,

conspire to violate, or cause a violation

of any license, order, regulation, or

prohibition contained in or issued

pursuant to E.O. 13694, relating to the

Russian Federation, or E.O. 13757,

relating to the Russian Federation.

OFAC is incorporating the

prohibitions in section 224(a)(1) of

CAATSA, as well as the exceptions

listed in section 236 of CAATSA, into

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the Regulations. OFAC has already

implemented section 10 of SSIDES, as

amended by section 228 of CAATSA, in

31 CFR part 589. OFAC anticipates

incorporating the menu-based

provisions of section 224(a)(2) of

CAATSA into 31 CFR chapter V at a

later date.

Current Regulatory Action

In furtherance of the purposes of

amended E.O. 13694, E.O. 13757, and

the provisions of CAATSA described

above, OFAC is reissuing the

Regulations. The Regulations implement

targeted sanctions that are directed at

persons determined to meet the criteria

set forth in § 578.201 of the Regulations,

as well as sanctions that may be set

forth in any future Executive orders

issued pursuant to the national

emergency declared in E.O. 13694. The

sanctions in amended E.O. 13694 and

CAATSA apply where the transaction or

service in question involves property or

interests in property that are blocked

pursuant to these sanctions.

Subpart A of the Regulations clarifies

the relation of this part to other laws

and regulations. Subpart B of the

Regulations implements the

prohibitions contained in sections 1 and

2 of amended E.O. 13694, as well as the

prohibitions contained in any further

Executive orders issued pursuant to the

national emergency declared in E.O.

13694. See, e.g., §§ 578.201 and 578.205.

Persons identified in the Annex to

amended E.O. 13694, designated by or

under the authority of the Secretary of

the Treasury pursuant to amended E.O.

13694, or otherwise subject to the

blocking provisions of amended E.O.

13694, or the blocking provisions of

section 224 of CAATSA, as well as

persons who are blocked pursuant to

any further Executive orders issued

pursuant to the national emergency

declared in E.O. 13694, are referred to

throughout the Regulations as ‘‘persons

whose property and interests in

property are blocked pursuant to

§ 578.201.’’ The names of such persons

are published on OFAC’s Specially

Designated Nationals and Blocked

Persons List (SDN List), which is

accessible via OFAC’s website. Those

names also are published in the Federal

List.

Sections 578.202 and 578.203 of

subpart B detail the effect of transfers of

blocked property in violation of the

Regulations and set forth the

requirement to hold blocked funds, such

as currency, bank deposits, or liquidated

financial obligations, in interest-bearing

blocked accounts. Section 578.204 of

subpart B provides that all expenses

incident to the maintenance of blocked

tangible property shall be the

responsibility of the owners and

operators of such property, and that

such expenses shall not be met from

blocked funds, unless otherwise

authorized. The section further provides

that blocked property may, in OFAC’s

discretion, be sold or liquidated and the

net proceeds placed in a blocked

interest-bearing account in the name of

the owner of the property.

Section 578.205 of subpart B 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 § 578.201 of the Regulations, and any

conspiracy formed to violate such

prohibitions. Section 578.206 of subpart

B details transactions that are exempt

from the prohibitions of the Regulations

pursuant to section 203(b)(1) of IEEPA

(50 U.S.C. 1702(b)(1)), which relates to

personal communications; section 236

of CAATSA (22 U.S.C. 9530), which

relates to U.S. intelligence activities;

and section 237 of CAATSA (22 U.S.C.

9531), which relates to activities of the

National Aeronautics and Space

Administration.

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. Subpart D contains

interpretive sections regarding the

Regulations. OFAC is redesignating the

interpretive on setoffs previously at

§ 578.405 as §578.410. New § 578.405

explains that the prohibition on

transactions with blocked persons in

§ 578.201 applies to services performed

by U.S. persons on behalf of a person

whose property and interests in

property are blocked pursuant to

§ 578.201, as well as to services received

by U.S. persons where the service is

performed by, or at the direction of, a

person whose property and interests in

property are blocked pursuant to

§ 578.201. OFAC is redesignating the

section previously at § 578.406,

regarding entities owned by persons

whose property and interests in

property are blocked, as § 578.411. New

§ 578.411 explains that the property and

interests in property of an entity are

blocked if the entity 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,

whether or not the entity itself is

incorporated into OFAC’s SDN List.

New § 578.406 discusses offshore

transactions. New §§ 578.407, 578.408,

and 578.409 discuss payments from

blocked accounts to satisfy obligations,

charitable contributions, and credit

extended by financial institutions to a

person whose property and interests in

property are blocked, respectively.

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 redesignating the

authorization for the provision of

certain legal services previously in

§ 578.506 as § 578.507, redesignating the

authorization for payments for legal

services from funds originating outside

the United States previously in

§ 578.507 as § 578.508, and

redesignating the authorization for

emergency medical services previously

in § 578.508 as § 578.509. OFAC is

adding three new general licenses to the

Regulations: a general license

authorizing the investment and

reinvestment of certain funds in new

§ 578.506, a general license authorizing

the official business of the U.S.

government in § 578.510, and a general

license authorizing certain official

business of international entities and

organizations in § 578.511. General

licenses and statements of licensing

policy relating to this part also may be

available through the Sanctions Related

to Significant Malicious Cyber-Enabled

Activities page on OFAC’s website:

www.treas.gov/ofac.

Subpart F of the Regulations refers to

subpart C of part 501 for recordkeeping

and reporting requirements. Subpart G

of the Regulations describes the civil

and criminal penalties applicable to

violations of the Regulations, as well as

the procedures governing the potential

imposition of a civil monetary penalty

or issuance of a Finding of Violation.

Subpart G also refers to appendix A of

part 501 for a more complete

description of these procedures.

Subpart H of the Regulations refers to

subpart E of part 501 for applicable

provisions relating to administrative

procedures and contains a delegation of

certain authorities of the Secretary of

the Treasury. Subpart I of the

Regulations sets forth a Paperwork

Reduction Act notice.

Public Participation

Because the Regulations involve a

foreign affairs function, the provisions

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

‘‘Regulatory Planning and Review’’ (58

FR 51735, October 4, 1993), and the

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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 578

Administrative practice and

procedure, Banks, Banking, Blocking of

assets, Critical infrastructure, Cyber,

Cybersecurity, Credit, Foreign trade,

Penalties, Reporting and recordkeeping

requirements, Sanctions, Securities,

Services.

■ For the reasons set forth in the

preamble, OFAC revises 31 CFR part

578 to read as follows:

PART 578—CYBER-RELATED

SANCTIONS REGULATIONS

Subpart A—Relation of This Part to Other

Laws and Regulations

Sec.

578.101 Relation of this part to other laws

and regulations.

Subpart B—Prohibitions

578.201 Prohibited transactions.

578.202 Effect of transfers violating the

provisions of this part.

578.203 Holding of funds in interest-

bearing accounts; investment and

reinvestment.

578.204 Expenses of maintaining blocked

tangible property; liquidation of blocked

property.

578.205 Evasions; attempts; causing

violations; conspiracies.

578.206 Exempt transactions.

Subpart C—General Definitions

578.300 Applicability of definitions.

578.301 Blocked account; blocked property.

578.302 Critical infrastructure sector.

578.303 Cyber-enabled activities.

578.304 Effective date.

578.305 Entity.

578.306 Financial, material, or

technological support.

578.307 Foreign person.

578.308 [Reserved]

578.309 Interest.

578.310 Licenses; general and specific.

578.311 Misappropriation.

578.312 OFAC.

578.313 Person.

578.314 Property; property interest.

578.315 Significant activities undermining

cybersecurity.

578.316 Transfer.

578.317 United States.

578.318 United States person; U.S. person.

578.319 U.S. financial institution.

Subpart D—Interpretations

578.401 Reference to amended sections.

578.402 Effect of amendment.

578.403 Termination and acquisition of an

interest in blocked property.

578.404 Transactions ordinarily incident to

a licensed transaction.

578.405 Provision and receipt of services.

578.406 Offshore transactions involving

blocked property.

578.407 Payments from blocked accounts to

satisfy obligations prohibited.

578.408 Charitable contributions.

578.409 Credit extended and cards issued

by financial institutions to a person

whose property and interests in property

are blocked.

578.410 Setoffs prohibited.

578.411 Entities owned by one or more

persons whose property and interests in

property are blocked.

Subpart E—Licenses, Authorizations, and

Statements of Licensing Policy

578.501 General and specific licensing

procedures.

578.502 Effect of license or other

authorization.

578.503 Exclusion from licenses.

578.504 Payments and transfers to blocked

accounts in U.S. financial institutions.

578.505 Entries in certain accounts for

normal service charges.

578.506 Investment and reinvestment of

certain funds.

578.507 Provision of certain legal services.

578.508 Payments for legal services from

funds originating outside the United

States.

578.509 Emergency medical services.

578.510 Official business of the United

States Government.

578.511 Official business of certain

international organizations and entities.

Subpart F—Reports

578.601 Records and reports.

Subpart G—Penalties and Findings of

Violation

578.701 Penalties.

578.702 Pre-Penalty Notice; settlement.

578.703 Penalty imposition.

578.704 Administrative collection; referral

to United States Department of Justice.

578.705 Findings of Violation.

Subpart H—Procedures

578.801 Procedures.

578.802 Delegation of certain authorities of

the Secretary of the Treasury.

Subpart I—Paperwork Reduction Act

578.901 Paperwork Reduction Act notice.

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, as amended (28

U.S.C. 2461 note); Pub. L. 115–44, 131 Stat.

886 (codified in scattered sections of 22

U.S.C.); E.O. 13694, 80 FR 18077, 3 CFR 2015

Comp., p. 297; E.O. 13757, 82 FR 1, 3 CFR

2016 Comp., p. 659.

Subpart A—Relation of This Part to

Other Laws and Regulations

§ 578.101 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.

Subpart B—Prohibitions

§ 578.201 Prohibited transactions.

(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) Annex to E.O. 13694, as amended

by E.O. 13757 (‘‘amended E.O. 13694’’).

The persons listed in the Annex to

amended E.O. 13694;

(2) Amended E.O. 13694. Any person

determined by the Secretary of the

Treasury, in consultation with the

Attorney General and the Secretary of

State:

(i) To be responsible for or complicit

in, or to have engaged in, directly or

indirectly, cyber-enabled activities

originating from, or directed by persons

located, in whole or in substantial part,

outside the United States that are

reasonably likely to result in, or have

materially contributed to, a significant

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threat to the national security, foreign

policy, or economic health or financial

stability of the United States and that

have the purpose or effect of:

(A) Harming, or otherwise

significantly compromising the

provision of services by, a computer or

network of computers that support one

or more entities in a critical

infrastructure sector;

(B) Significantly compromising the

provision of services by one or more

entities in a critical infrastructure

sector;

the availability of a computer or

network of computers;

(D) Causing a significant

misappropriation of funds or economic

resources, trade secrets, personal

identifiers, or financial information for

commercial or competitive advantage or

private financial gain; or

(E) Tampering with, altering, or

causing a misappropriation of

information with the purpose or effect

of interfering with or undermining

election processes or institutions;

(ii) To be responsible for or complicit

in, or to have engaged in, the receipt or

use for commercial or competitive

advantage or private financial gain, or

by a commercial entity, outside the

United States of trade secrets

misappropriated through cyber-enabled

means, knowing they have been

misappropriated, where the

misappropriation of such trade secrets is

reasonably likely to result in, or has

materially contributed to, a significant

threat to the national security, foreign

policy, or economy of the United States;

(iii) 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)(2)(i)

or (ii) of this section or any person

whose property and interests in

property are blocked pursuant to

paragraph (a)(1) of this section or this

paragraph (a)(2);

(iv) 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)(1) of this section or this

paragraph (a)(2); or

(v) To have attempted to engage in

any of the activities described in

paragraphs (a)(2)(i) through (iv) of this

section; and

(3) Section 224(a)(1) of the Countering

America’s Adversaries Through

Sanctions Act (22 U.S.C. 9524)

(CAATSA). Any person that the

Secretary of the Treasury, in

consultation with the Secretary of State,

determines:

(i) Knowingly engages in significant

activities undermining cybersecurity

against any person, including a

democratic institution, or government

on behalf of the Government of the

Russian Federation; or

(ii) Is owned or controlled by, or acts

or purports to act for or on behalf of,

directly or indirectly, a person

described in paragraph (a)(3)(i) of this

section.

(b) The prohibitions in paragraph (a)

of this section include prohibitions on

the following transactions:

(1) The making of any contribution or

provision of funds, goods, or services

by, to, or for the benefit of any person

whose property and interests in

property are blocked pursuant to

paragraph (a) of this section; and

(2) The receipt of any contribution or

provision of funds, goods, or services

from any person whose property and

interests in property are blocked

pursuant to paragraph (a) of this section.

by a specific license expressly referring

to this part, any dealing in securities (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

paragraph (a) of this section is

prohibited. This prohibition includes

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 securities 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 securities

may have or might appear to have

assigned, transferred, or otherwise

disposed of the securities.

(d) The prohibitions in paragraph (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 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 December 28, 2016, pursuant to the

national emergency declared in E.O.

13694 of April 1, 2015, are prohibited

pursuant to this part.

Note 1 to § 578.201. The names of persons

designated or identified as blocked pursuant

to amended E.O. 13694, 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 amended E.O. 13694:

‘‘[CYBER2]’’; and for any further Executive

orders issued pursuant to the national

emergency declared in E.O. 13694: using the

identifier formulation ‘‘[CYBER–E.O.[E.O.

number pursuant to which the person’s

property and interests in property are

blocked]].’’ Persons designated pursuant to

Section 224(a)(1) of CAATSA will have the

identifier ‘‘[CAATSA–RUSSIA]’’. Certain

transactions with persons blocked pursuant

to paragraph (a) of this section relating to the

Russian Federation may result in the

imposition of secondary sanctions, and

therefore such blocked persons’ entries on

the SDN List will include the descriptive

prefix text ‘‘Secondary sanctions risk:’’

followed by information about the applicable

secondary sanctions authority. The SDN List

is accessible through the following page on

OFAC’s website: www.treas.gov/sdn.

Additional information pertaining to the SDN

List can be found in appendix A to this

chapter. See § 578.411 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 § 578.201. The International

Emergency Economic Powers Act (50 U.S.C.

1701 et seq.) 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 using the following identifiers:

for amended E.O. 13694: ‘‘[BPI–CYBER2]’’;

for CAATSA: ‘‘[BPI–CAATSA–RUSSIA]’’;

and for any further Executive orders issued

pursuant to the national emergency declared

in E.O. 13694: ‘‘[BPI–CYBER–E.O.[E.O.

number pursuant to which the person’s

property and interests in property are

blocked pending investigation]].’’

Note 3 to § 578.201. 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.

Note 4 to § 578.201. Section 216 of

CAATSA (22 U.S.C. 9511) requires

congressional review prior to the termination

of sanctions imposed pursuant to amended

E.O. 13694. Section 222 of CAATSA (22

U.S.C. 9522) describes the congressional

notification required prior to the termination

of sanctions imposed pursuant to amended

E.O. 13694 and CAATSA section 224.

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§ 578.202 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 § 578.201,

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.

(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

§ 578.201, 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.

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.

(e) 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.

(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 § 578.201.

§ 578.203 Holding of funds in interest-

bearing accounts; investment and

reinvestment.

(a) Except as provided in paragraph

(e) or (f) of this section, or as otherwise

directed or authorized by OFAC, any

U.S. person holding funds, such as

currency, bank deposits, or liquidated

financial obligations, subject to

§ 578.201 shall hold or place such funds

in a blocked interest-bearing account

located in the United States.

(b)(1) For the 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.

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 the 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

§ 578.201 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 paragraph (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

§ 578.201 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 real

or personal property, or of other blocked

property, such as debt or equity

securities, to sell or liquidate such

property. However, OFAC may issue

licenses permitting or directing such

sales or liquidation in appropriate cases.

(h) Funds blocked pursuant to

§ 578.201 may not be held, invested, or

reinvested in a manner that provides

financial or economic benefit or access

to any person whose property and

interests in property are blocked

pursuant to § 578.201, nor may their

holder cooperate in or facilitate the

pledging or other attempted use as

collateral of blocked funds or other

assets.

§ 578.204 Expenses of maintaining

blocked tangible 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 tangible property

blocked pursuant to § 578.201 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

§ 578.201 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.

§ 578.205 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.

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(b) Any conspiracy formed to violate

the prohibitions set forth in this part is

prohibited.

§ 578.206 Exempt transactions.

(a) Personal communications. The

prohibitions contained in this part do

not apply to any postal, telegraphic,

telephonic, or other personal

communication that does not involve

the transfer of anything of value.

(b) U.S. intelligence activities. The

prohibitions contained in this part do

not apply to activities subject to the

reporting requirements under title V of

the National Security Act of 1947 (50

U.S.C. 3091 et seq.), or any authorized

intelligence activities of the United

States.

Aeronautics and Space Administration.

The prohibitions contained in this part

do not apply to activities of the National

Aeronautics and Space Administration

(NASA), including the supply by any

entity of the Russian Federation of any

product or service, or the procurement

of such product or service by any

contractor or subcontractor of the

United States or any other entity,

relating to or in connection with any

space launch conducted for NASA or

any other non-Department of Defense

customer.

Subpart C—General Definitions

§ 578.300 Applicability of definitions.

The definitions in this subpart apply

throughout the entire part.

§ 578.301 Blocked account; blocked

property.

The terms blocked account and

blocked property mean any account or

property subject to the prohibitions in

§ 578.201 held in the name of a person

whose property and interests in

property are blocked pursuant to

§ 578.201, 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 § 578.301. See § 578.411

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 § 578.201.

§ 578.302 Critical infrastructure sector.

The term critical infrastructure sector

means any of the designated critical

infrastructure sectors identified in

Presidential Policy Directive 21 of

February 12, 2013.

§ 578.303 Cyber-enabled activities.

The term cyber-enabled activities

includes any act that is primarily

accomplished through or facilitated by

computers or other electronic devices.

§ 578.304 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 listed in

the Annex to E.O. 13694, as amended by

E.O. 13757, 12:01 eastern standard time,

December 29, 2016.

(2) With respect to a person whose

property and interests in property are

otherwise blocked pursuant to

§ 578.201, 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

§ 578.305 Entity.

The term entity means a partnership,

association, trust, joint venture,

corporation, group, subgroup, or other

organization.

§ 578.306 Financial, material, or

technological support.

The term financial, material, or

technological support, as used in this

part, means any property, tangible or

intangible, including 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 section 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.

§ 578.307 Foreign person.

The term foreign person means any

person that is not a U.S. person.

§ 578.308 [Reserved]

§ 578.309 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.

§ 578.310 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

website: www.treas.gov/ofac.

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: www.treas.gov/ofac.

Note 1 to § 578.310. See § 501.801 of this

chapter on licensing procedures.

§ 578.311 Misappropriation.

The term misappropriation includes

any taking or obtaining by improper

means, without permission or consent,

or under false pretenses.

§ 578.312 OFAC.

The term OFAC means the

Department of the Treasury’s Office of

Foreign Assets Control.

§ 578.313 Person.

The term person means an individual

or entity.

§ 578.314 Property; property interest.

The terms property and property

interest include 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

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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.

§ 578.315 Significant activities

undermining cybersecurity.

The term significant activities

undermining cybersecurity includes:

significant efforts to deny access to or

degrade, disrupt, or destroy an

information and communications

technology system or network; or to

exfiltrate, degrade, corrupt, destroy, or

release information from such a system

or network without authorization for

purposes of conducting influence

operations; or causing a significant

misappropriation of funds, economic

resources, trade secrets, personal

identifications, or financial information

for commercial or competitive

advantage or private financial gain;

significant destructive malware attacks;

and significant denial of service

activities.

§ 578.316 Transfer.

The term transfer means any actual or

purported act or transaction, whether or

not evidenced by writing, and whether

or not done or performed within the

United States, the purpose, intent, or

effect of which is to create, surrender,

release, convey, transfer, or alter,

directly or indirectly, any right, remedy,

power, privilege, or interest with respect

to any property. Without limitation on

the foregoing, it shall include the

making, execution, or delivery of any

assignment, power, conveyance, check,

declaration, deed, deed of trust, power

of attorney, power of appointment, bill

of sale, mortgage, receipt, agreement,

contract, certificate, gift, sale, affidavit,

or statement; the making of any

payment; the setting off of any

obligation or credit; the appointment of

any agent, trustee, or fiduciary; the

creation or transfer of any lien; the

issuance, docketing, filing, or levy of or

under any judgment, decree,

attachment, injunction, execution, or

other judicial or administrative process

or order, or the service of any

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.

§ 578.317 United States.

The term United States means the

United States, its territories and

possessions, and all areas under the

jurisdiction or authority thereof.

§ 578.318 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.

§ 578.319 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,

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

§ 578.401 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 ruling, order,

instruction, direction, or license issued

pursuant to this part is a reference to the

same as currently amended unless

otherwise so specified.

§ 578.402 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.

§ 578.403 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 § 578.201, such property

shall no longer be deemed to be

property blocked pursuant to § 578.201,

unless there exists in the property

another interest that is blocked pursuant

to § 578.201, the transfer of which has

not been effected pursuant to license or

other authorization.

(b) Unless otherwise specifically

provided in a license or authorization

issued pursuant to this part, if property

(including any property interest) is

transferred or attempted to be

transferred to a person whose property

and interests in property are blocked

pursuant to § 578.201, such property

shall be deemed to be property in which

such person has an interest and

therefore blocked.

§ 578.404 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

§ 578.201; 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 § 578.201, 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

§ 578.201.

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§ 578.405 Provision and receipt of

services.

(a) The prohibitions contained in

§ 578.201 apply to services performed in

the United States or by U.S. persons,

wherever located:

(1) On behalf of or for the benefit of

any person whose property and interests

in property are blocked pursuant to

§ 578.201; or

(2) With respect to property interests

of any person whose property and

interests in property are blocked

pursuant to § 578.201.

(b) The prohibitions on transactions

contained in § 578.201 apply to services

received in the United States or by U.S.

persons, wherever located, where the

service is performed by, or at the

direction of, a person whose property

and interests in property are blocked

pursuant to § 578.201.

not, except as authorized by or pursuant

to this part, provide legal, accounting,

financial, brokering, freight forwarding,

transportation, public relations, or other

services to any person whose property

and interests in property are blocked

pursuant to § 578.201, or negotiate with

or enter into contracts signed by a

person whose property and interests in

property are blocked pursuant to

§ 578.201.

Note 1 to § 578.405. See §§ 578.507 and

578.509 for general licenses authorizing the

provision of certain legal and emergency

medical services.

§ 578.406 Offshore transactions involving

blocked property.

The prohibitions in § 578.201 on

transactions or dealings involving

blocked property, as defined in

§ 578.301, apply to transactions by any

U.S. person in a location outside the

United States.

§ 578.407 Payments from blocked

accounts to satisfy obligations prohibited.

Pursuant to § 578.201, no debits may

be made to a blocked account to pay

obligations to U.S. persons or other

persons, except as authorized by or

pursuant to this part.

Note 1 to § 578.407. See also § 578.502(e),

which provides that no license or other

authorization contained in or issued

pursuant to this part authorizes transfers of

or payments from blocked property or debits

to blocked accounts unless the license or

other authorization explicitly authorizes the

transfer of or payment from blocked property

or the debit to a blocked account.

§ 578.408 Charitable contributions.

Unless specifically authorized by

OFAC pursuant to this part, no

charitable contribution of funds, goods,

services, or technology, including

contributions to relieve human

suffering, such as food, clothing, or

medicine, may be made by, to, or for the

benefit of, or received from, a person

whose property and interests in

property are blocked pursuant to

§ 578.201. For the purposes of this part,

a contribution is made by, to, or for the

benefit of, or received from, a person

whose property and interests in

property are blocked pursuant to

§ 578.201 if made by, to, or in the name

of, or received from or in the name of,

such a person; if made by, to, or in the

name of, or received from or in the

name of, an entity or individual acting

for or on behalf of, or owned or

controlled by, such a person; or if made

in an attempt to violate, to evade, or to

avoid the bar on the provision of

contributions by, to, or for the benefit of

such a person, or the receipt of

contributions from such a person.

§ 578.409 Credit extended and cards

issued by financial institutions to a person

whose property and interests in property

are blocked.

The prohibition in § 578.201 on

dealing in property subject to that

section prohibits U.S. financial

institutions from performing under any

existing credit agreements, including

charge cards, debit cards, or other credit

facilities issued by a financial

institution to a person whose property

and interests in property are blocked

pursuant to § 578.201.

§ 578.410 Setoffs prohibited.

A setoff against blocked property

(including a blocked account), whether

by a U.S. financial institution or other

U.S. person, is a prohibited transfer

under § 578.201 if effected after the

effective date.

§ 578.411 Entities owned by one or more

persons whose property and interests in

property are blocked.

Persons whose property and interests

in property are blocked pursuant to

§ 578.201 have an interest in all

property and interests in property of an

entity in which such persons directly or

indirectly own, whether individually or

in the aggregate, 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

§ 578.201, 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

§ 578.501 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 Sanctions Related

to Significant Malicious Cyber-Enabled

Activities page on OFAC’s website:

www.treas.gov/ofac.

Note 1 to § 578.501. Section 216 of the

Countering America’s Adversaries Through

Sanctions Act (22 U.S.C. 9511) requires

congressional review prior to the issuance of

a license that significantly alters the United

States’ foreign policy with regard to the

Russian Federation.

§ 578.502 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,

or license authorizes any transaction

prohibited under this part unless the

regulation, ruling, instruction, or license

is issued by OFAC and specifically

refers to this part. No regulation, ruling,

instruction, or license referring to this

part shall be deemed to authorize any

transaction prohibited by any other part

of this chapter unless the regulation,

ruling, instruction, or license

specifically refers to such part.

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, 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

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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

relevant OFAC general or specific

license authorizing the payment to

avoid the blocking or rejection of the

transfer.

§ 578.503 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.

§ 578.504 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 § 578.201 has any interest

that comes within the possession or

control of a U.S. financial institution

must be blocked in an account on the

books of that financial institution. A

transfer of funds or credit by a U.S.

financial institution between blocked

accounts in its branches or offices is

authorized, provided that no transfer is

made from an account within the

United States to an account held outside

the United States, and further provided

that a transfer from a blocked account

may be made only to another blocked

account held in the same name.

Note 1 to § 578.504. See § 501.603 of this

chapter for mandatory reporting

requirements regarding financial transfers.

See also § 578.203 concerning the obligation

to hold blocked funds in interest-bearing

accounts.

§ 578.505 Entries in certain accounts for

normal service charges.

(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.

§ 578.506 Investment and reinvestment of

certain funds.

Subject to the requirements of

§ 578.203, U.S. financial institutions are

authorized to invest and reinvest assets

blocked pursuant to § 578.201, subject

to the following conditions:

(a) The assets representing such

investments and reinvestments are

credited to a blocked account or

subaccount that is held in the same

name at the same U.S. financial

institution, or within the possession or

control of a U.S. person, but funds shall

not be transferred outside the United

States for this purpose;

(b) The proceeds of such investments

and reinvestments shall not be credited

to a blocked account or subaccount

under any name or designation that

differs from the name or designation of

the specific blocked account or

subaccount in which such funds or

securities were held; and

economic benefit accrues (e.g., through

pledging or other use) to a person whose

property and interests in property are

blocked pursuant to § 578.201.

§ 578.507 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

§ 578.201 is authorized, provided that

any receipt of payment of professional

fees and reimbursement of incurred

expenses must be authorized pursuant

to § 578.508, 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

§ 578.201, 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 § 578.404.

(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 § 578.201

is prohibited unless licensed pursuant

to this part.

Note 1 to § 578.507. 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

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legal services where alternative funding

sources are not available.

§ 578.508 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

§ 578.507(a) to or on behalf of any

person whose property and interests in

property are blocked pursuant to

§ 578.201, 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

§ 578.506(a) are to be provided, whose

property and interests in property are

blocked pursuant to any part of this

chapter or any Executive order 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

§ 578.201, any other part of this chapter,

or any Executive order or statute has an

interest.

(b) Reports. (1) U.S. persons who

receive payments pursuant to paragraph

(a) of this section 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

connection with such services.

(2) The reports, which must reference

this section, are to be submitted to

OFAC using one of the following

methods:

(i) Email (preferred method):

[email protected]; or

(ii) U.S. mail: OFAC Regulations

Reports, Office of Foreign Assets

Control, U.S. Department of the

Treasury, 1500 Pennsylvania Avenue

NW, Freedman’s Bank Building,

Washington, DC 20220.

§ 578.509 Emergency medical services.

The provision and receipt of

nonscheduled emergency medical

services that are prohibited by this part

are authorized.

§ 578.510 Official business of the United

States Government.

All transactions prohibited by this

part that are for the conduct of the

official business of the United States

Government by employees, grantees, or

contractors thereof are authorized.

§ 578.511 Official business of certain

international organizations and entities.

All transactions prohibited by this

part that are for the conduct of the

official business of the following entities

by employees, grantees, or contractors

thereof are authorized:

(a) The United Nations, including its

Programmes, Funds, and Other Entities

and Bodies, as well as its Specialized

Agencies and Related Organizations;

(b) The International Centre for

Settlement of Investment Disputes

(ICSID) and the Multilateral Investment

Guarantee Agency (MIGA);

Group, the Asian Development Bank,

the European Bank for Reconstruction

and Development, and the Inter-

American Development Bank Group

(IDB Group), including any fund entity

administered or established by any of

the foregoing; and

(d) The International Committee of

the Red Cross and the International

Federation of Red Cross and Red

Crescent Societies.

Subpart F—Reports

§ 578.601 Records and reports.

For provisions relating to required

records and reports, see part 501,

subpart C, of this chapter.

Recordkeeping and reporting

requirements imposed by part 501 of

this chapter with respect to the

prohibitions contained in this part are

considered requirements arising

pursuant to this part.

Subpart G—Penalties and Findings of

Violation

§ 578.701 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

license, ruling, regulation, order,

directive, or instruction issued by or

pursuant to the direction or

authorization of the Secretary of the

Treasury pursuant to this part or

otherwise under IEEPA.

(1) A civil penalty not to exceed the

amount set forth in section 206 of IEEPA

may be imposed on any person who

violates, attempts to violate, conspires

to violate, or causes a violation of any

license, order, regulation, or prohibition

issued under IEEPA.

(2) IEEPA provides for a maximum

civil penalty not to exceed the greater of

$311,562 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

license, order, regulation, or prohibition

may, upon conviction, be fined not

more than $1,000,000, or if a natural

person, be imprisoned for not more than

20 years, or both.

(b)(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) Violations of this part may also be

subject to other applicable laws.

§ 578.702 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

license, ruling, regulation, order,

directive, or instruction issued by or

pursuant to the direction or

authorization of the Secretary of the

Treasury pursuant to this part or

otherwise under the International

Emergency Economic Powers Act (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

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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 Office

of Compliance and Enforcement by mail

or courier or email and must be

postmarked or 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.

§ 578.703 Penalty imposition.

If, after considering any written

response to the Pre-Penalty Notice and

any relevant facts, OFAC determines

that there was a violation by the alleged

violator named in the Pre-Penalty

Notice and that a civil monetary penalty

is appropriate, OFAC may issue a

Penalty Notice to the violator containing

a determination of the violation and the

imposition of the monetary penalty. For

additional details concerning issuance

of a Penalty Notice, see appendix A to

part 501 of this chapter. The issuance of

the Penalty Notice shall constitute final

agency action. The violator has the right

to seek judicial review of that final

agency action in Federal district court.

§ 578.704 Administrative collection;

referral to United States Department of

Justice.

In the event that the violator does not

pay the penalty imposed pursuant to

this part or make payment arrangements

acceptable to OFAC, the matter may be

referred for administrative collection

measures by the Department of the

Treasury or to the United States

Department of Justice for appropriate

action to recover the penalty in a civil

suit in a Federal district court.

§ 578.705 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

license, ruling, regulation, order,

directive, or instruction issued by or

pursuant to the direction or

authorization of the Secretary of the

Treasury pursuant to this part or

otherwise under the International

Emergency Economic Powers Act (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 Office

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Federal Register / Vol. 87, No. 171 / Tuesday, September 6, 2022 / Rules and Regulations

of Compliance and Enforcement 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

§ 578.801 Procedures.

For license application procedures

and procedures relating to amendments,

modifications, or revocations of

licenses; administrative decisions;

rulemaking; and requests for documents

pursuant to the Freedom of Information

and Privacy Acts (5 U.S.C. 552 and

552a), see part 501, subpart E, of this

chapter.

§ 578.802 Delegation of certain authorities

of the Secretary of the Treasury.

Any action that the Secretary of the

Treasury is authorized to take pursuant

to E.O. 13694 of April 1, 2015, as

amended by E.O. 13757 of December 28,

2016, and any further Executive orders

relating to the national emergency

declared therein, and any action that the

Secretary of the Treasury is authorized

to take pursuant to Presidential

Memorandum of September 29, 2017:

Delegation of Certain Functions and

Authorities under the Countering

America’s Adversaries Through

Sanctions Act of 2017, the Ukraine

Freedom Support Act of 2014, and the

Support for the Sovereignty, Integrity,

Democracy, and Economic Stability of

Ukraine Act of 2014, 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

§ 578.901 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, and other procedures, see

§ 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.

Andrea M. Gacki,

Director, Office of Foreign Assets Control.

[FR Doc. 2022–19138 Filed 9–2–22; 8:45 am]

BILLING CODE 4810–AL–P

DEPARTMENT OF HOMELAND

SECURITY

Coast Guard

33 CFR Part 83

[Docket No. USCG–2022–0071]

RIN 1625–AC81

State Enforcement of Inland Navigation

Rules

AGENCY

: Coast Guard, DHS.

ACTION

: Interim rule and request for

comment.

SUMMARY

: The Coast Guard is issuing

this interim rule to remove an incorrect

statement about field preemption of

State or local regulations regarding

inland navigation. The incorrect

language was added in a 2014

rulemaking, and the error was recently

discovered. By removing the language,

this rule clarifies the ability of States to

regulate inland navigation as they have

historically done. This rule does not

require States to take any action.

DATES

: This interim rule is effective

September 6, 2022. Comments and

related material must be received by the

Coast Guard on or before December 5,

2022.

ADDRESSES

: You may submit comments

identified by docket number USCG–

2022–0071 using the Federal Decision

Making Portal at https://

www.regulations.gov. See the ‘‘Public

Participation and Request for

Comments’’ portion of the

SUPPLEMENTARY INFORMATION

section for

further instructions on submitting

comments.

FOR FURTHER INFORMATION CONTACT

: For

information about this document call or

email Jeffrey Decker, Coast Guard Office

of Auxiliary and Boating Safety (CG–

BSX); telephone 202–372–1507, email

[email protected].

SUPPLEMENTARY INFORMATION

Table of Contents for Preamble

I. Abbreviations

II. Basis and Purpose, and Regulatory History

III. Background

IV. Discussion of the Rule

V. Regulatory Analyses

A. Regulatory Planning and Review

B. Small Entities

C. Assistance for Small Entities

D. Collection of Information

E. Federalism

F. Unfunded Mandates

G. Taking of Private Property

H. Civil Justice Reform

I. Protection of Children

J. Indian Tribal Governments

K. Energy Effects

L. Technical Standards

M. Environment

VI. Public Participation and Request for

Comments

I. Abbreviations

APA Administrative Procedure Act

COLREGS International Regulations for

Prevention of Collisions at Sea, 1972

CFR Code of Federal Regulations

DHS Department of Homeland Security

FR Federal Register

Inland Rules Inland Navigation Rules

NAICS North American Industry

Classification System

NPRM Notice of proposed rulemaking

OMB Office of Management and Budget

§ Section

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