OFAC Codifies Iran Human Rights Abuses Sanctions Regulations
The Office of Foreign Assets Control has issued a final rule, effective February 11, 2011, which adds a new Part 562 to 31 CFR, the “Iranian Human Rights Abuses Sanctions Regulations.”
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Regulations Further Implement EO 13553 Sanctions Against Certain Iran Officials
OFAC is issuing these regulations in order to further implement Executive Order 13553, which, among other things, blocks transactions and imposes sanctions on Iranian officials determined to be responsible for or complicit in serious human rights abuses involving Iran. See ITT's Online Archives or 09/30/10 news, 10093034, for BP summary.
Issued in Abbreviated Form, to be Supplemented
OFAC states that the regulations are being published in abbreviated form at this time for the purpose of providing immediate guidance to the public. OFAC intends to supplement 31 CFR Part 562 with a more comprehensive set of regulations, which may include additional interpretive and definitional guidance and additional general licenses and statements of licensing policy.
New Part 562 Includes Prohibited Transactions, Definitions, Authorizations, Etc.
The contents of new 31 CFR Part 562 are:
Subpart A - Relation of This Part to Other Laws and Regulations
562.101 Relation of this part to other laws and regulations.
Subpart B - Prohibitions
562.201 Prohibited transactions.
562.202 Effect of transfers violating the provisions of this part.
562.203 Holding of funds in interest-bearing accounts; investment and reinvestment.
Subpart C - General Definitions
562.301 Blocked account; blocked property.
562.302 Effective date.
562.303 Entity.
562.304 Interest.
562.305 Licenses; general and specific.
562.306 Person.
562.307 Property; property interest.
562.308 Transfer.1
562.309 U.S..
562.310 U.S. financial institution.
562.311 U.S. person; U.S. person.
Subpart D - Interpretations
562.401 [Reserved]
562.402 Effect of amendment.
562.403 Termination and acquisition of an interest in blocked property.
562.404 Transactions ordinarily incident to a licensed
transaction authorized.
562.405 Setoffs prohibited.
562.406 Entities owned by a person whose property and
interests in property are blocked.
Subpart E - Licenses, Authorizations, and Statements of Licensing Policy
562.501 [Reserved]
562.502 [Reserved]
562.503 Exclusion from licenses.
562.504 Payments and transfers to blocked accounts in U.S. financial institutions.
562.505 Entries in certain accounts for normal service charges authorized.
562.506 Provision of certain legal services authorized.
562.507 Authorization of emergency medical services.
Subpart F - [Reserved]
Subpart G - [Reserved]
Subpart H - Procedures
562.801 [Reserved]
562.802 Delegation by the Secretary of the Treasury.
Subpart I - Paperwork Reduction Act
562.901 Paperwork Reduction Act notice.
Prohibitions Under EO 13553
Relevant prohibitions in EO 13553 include the following:
(a) All property and interests in property that are in the U.S., that hereafter come within the U.S., or that are or hereafter come within the possession or control of any U.S. person, including any overseas branch, of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in:
(i) the persons listed in the Annex to the order; and
(ii) any person determined by the Secretary of the Treasury, in consultation with or at the recommendation of the Secretary of State:
(A) to be an official of the Government of Iran or a person acting on behalf of the Government of Iran (including members of paramilitary organizations) who is responsible for or complicit in, or responsible for ordering, controlling, or otherwise directing, the commission of serious human rights abuses against persons in Iran or Iranian citizens or residents, or the family members of the foregoing, on or after June 12, 2009, regardless of whether such abuses occurred in Iran;
(B) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the activities described in subsection (a)(ii)(A) of this section or any person whose property and interests in property are blocked pursuant to the order; or
(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 this order.
1"Transfer" is defined in 31 CFR 562.308 as any actual or purported act or transaction…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 acquisition, disposition, transportation, importation, exportation, or withdrawal of any security, among other things.
OFAC contact - Compliance, Outreach & Implementation (202) 622-2490
(FR Pub 02/11/11)