Re-Imposition of Certain Sanctions by the United States Against the Islamic Republic of Iran

BANOKO SeNrnaL NG PIUIpINAS OFFICE OF THE DEPUTY GOVERNOR FINANCIAL SUPERVISION SECTOR crRcutAR TETTER NO. Cr-2019- A26 To : All BSP-Supervised Financial Institutions (BSFts) Subject : Re-lmposition of Certain Sanctions by the United States Against the lslamic Republic of lran The BSP previously issued the following Circular Letters (CL) regarding lslamic Republic of lran: 1. CL-2015-058 dated 22 September 2015. disseminating to all BSFIs a copy of the full text of United Nations Security Council (UNSC) Resolution No. 2231 dated 20 July 2015 on the Joint Comprehensive Plan of Action (JCPOA), enjoining banks to monitor developments thereon and be aware of the sanctions relief provided to lran between the announcement of JCPOA (20 July 2015) and the implementation day (15 January 2016); and 2' CL-2015-075 dated 3 September 2016. disseminating to all BSFIs the Advisory approved under Anti-Money Laundering councir (AMLc) Resolution No. 69 dated L7 August 2016, relative to the proper implementation of the provisions of the Revised lmplementing Rules and Regulations (RlRRs) of Republic Act 9160, or the Anti-Money Laundering Act (AMLA), as amended, particularly Rule 9.a.9.a1 relating to Enhanced Due Diligence, and Rule 9.a.15.a2 on Unusual or Suspicious Patterns of Activity of high risk clients. on 6 August 2018, united states (US) Executive order (Eo) 139463 (copy attached) was issued containing the rules on re-imposition of certain sanctions relating to the lslamic Republic of lran, in light of the US Government's decision to cease participation from the JCPOA adopted under UNSC Resolution No. 2231 dated 20 July 20L5. The two winding down periods under EO 13846 expired last 7 August 2018 and 5 November 2018. Rule 9.a.9.a of the previous RIRR was incorporated under Section 10 (Enhanced Due Diligence), Rule 1g of the 2018 AMLA-lRR issued on 22 November 2018 Rule 9.a.15.a of the previous RIRR was incorporated under Section 8 (Ongoing Monitoring process), Rule 19 of the 2018 AMLA-lRR issued on 22 November 2018 The US Department of the Treasury, through the Office of the Foreign Assets Control (OFAC), updated its Frequently Asked Questions (FAQs) related to the US re-imposition of certain sanctions with respect to lran (https://www.treasury.gov/resource-centerfaqs/Sanctions/eagesfaq_iran,aspx#eo_reimposing)

Also, lran remains subject of Financial Action Task Force's (FATF) Public Statement as of 22 February 2OLg4. While FATF decided to continue the suspension of counter-measures against lran, FATF expressed its expectation for lran to continue to implement the measures required to address the identified deficiencies with respect to countering terrorism financing. FATF remains concerned with the terrorist financing risk emanating from lran and the threat this poses to the international financial system. In this regard, all BSFIs are advised to: L. Assess the impact of, and take appropriate measures on the correlated sanctions for foreign financial institutions under item "b" Section 2 of EO 13845 to wit: "(b) With respect to ony foreign financial institution determined by the Secretary of the Treasury in accordonce with this section to meet ony of the criteria set forth in subsections (a)(i)-(o)(v) of this section, the Secretorv of the Treasurv mav prohibit the openina. and prohibit or impose strict conditions on the maintoinino. in the United States of a correspondent account or a povable-throuah occount bv such foreian finoncial i nstituti o n." ( u n derscori ng su ppl ied for em p h asis) Undertake proper handling of customers from lran and its nationals, taking into consideration existing anti-money laundering/combating the financing of terrorism rules and regulations; and Apply enhanced due diligence (EDD) procedures for identified high risk customers and jurisdictions consistent with existing laws and regulations. For guidance and strict compliance. '4),s-. G. FONACIER 4. April2019 http://www.fatf-gafi.orglpublications/high-riskandnon-ooperativejurisdictions/documents/public-statement- february-2019.htm1

.^,,-".''"^.." z> 'ilHf,llEiiz1 cP94 38939 Federal Register Vol. 83, No. 152 Presidential Documents Tuesday, August 7,2078 Title 3- Executive Order 13846 of August 6, 2018 The President Reimposing Certain Sanctions With Respect to Iran pv the authority _vested in me as President by the constitution and the laws of the United States of America, including ihe International Emergency Economic Powers Act (50 u.s.c. t7o] et seq.)- (IEspa), the National Emei- g9n-cies Act (50 u.s.c. 1601 ef seg.) (NEA), the Iran sanctions Act of 1996 (Public Law 104-1zz) (so u.s.c. lzot note), as amended (ISA), the com- prehensive Iran sanctions, Accountability, and Divestment Act of 'zoro (pub- l!9 Law 111-195) (22 u.s.c. 8501 ef seg.), as amended (CISADA), the'Iran Threat Reduction and syria Human Rights Act of 2012 (public Law 7t2- 158) (TRA), the Iran Freedom and Counter-Proliferation Aci of zotz (subtitle D of title XII of Public Law 172-23s) (zz u.s.c. 880r. ef seg.)'(IFCA), section 272(fl of the Immigration and Nationality Act of tgsz'(a u.s.i. 1.1.82(n), and section 301 of title 3, united statei code, in ordei to take ldditional stepj with respect to the national emergency declared in Executive Order lzgsz of March 1b;1995, I'^DONALD J. TRUMP, President of the United states of America, in Iight 9f *y dec-ision on May B, zoLB, to cease the participation of the Uniied states in the Joint c-gmprehensive Plan of Action of July 14, zots (ICpoA), and to re-impose all sanctions lifted or waived in ctnnection *ith ttre lcPo+ as expeditiously _as p-ossible and in no case later than 180 days from May 8, 2018, as outlined in the National security presidential Mem"o- randum-1l 9f M_a-y 8, 2^018 (ceasing united states participation in the Joint Liompreheasive Plan of Action and Taking Additional Action to counter Iran's Malign Influencg Deny Iran Rl-i paths to a Nuclear weapon), and to advance the goal of ":d applying financial pressure on the Iranian t"gi-; in pursuit of a comp_rehensive and lasting iolution to the full rangt of the threats pos-ed !y lran, including lran's- proliferation and develop'meni of missiles and other asymmetric and conv-entional weapons capabilities, its network and campaign of regional aggression, its support foi terrorisi grcups, and the malign activities of the Iilamic Revolutionary Guard corps and its surrogates, hereby order as follows: section 1. ,Blocking^ sanctions lgl_"lirys to support for the Government of Iran's Purchase or Acquisition of u.s. Bank Noies or irrecious Metals; cenaii Iranian Persons; and_.Iran's Energy, and Shipbuilding Sectors and Port operafors. (a) The secretary of-S\ipping, th-e-trJasury, in consultafion with the secret_ary- of state, is hereby-authorized to impose on a person the measures described in subsection (b) 6f this section ,tpoti d"tu.*iniirg that: (i) on or.after August 7, 2oLB, the person has materially assisted, sponsored, or provided financial, material, or technological support for, ^or goods or services in support_ of, the purchase or acquisition bt u.S. bank "notes or precious metals by the Government of Iran; (ii) on or after November s, 201g, the person has materially assisted, 1qoryo1ed' or provided financial, materiai, or technological suppo.t f"., or goods or services in.support of, the National Iraniin oil -cbmpany (NIOC), Naftiran Intertrade eompany (NICO), or the Central g""L oiio;; (iii) on or after Novemher s, 2org, the person has materially assisted, r_!1yoT"d' or nrovided financial, materiai, or technologi""t ,,ipfori flr, or goods or services to or in support of: (A) any Iranian -- _pe.rson included on the rist of specially Designated Nationals and Blocked persons maintained by the office of F6reign i.rr"t,

38940 Federal Register/Vol. 83, No. 152lTuesday, August 7, 2018/Presidential Documents control (sDN List) (other than an Iranian depository institution whose pro-perty and interests in property are blocked solely pursuant to Executive Order 13599 of February 5, 2O1.2); or (B) any other person included on the SDN List whose property and interests in property are blocked pursuant to subsection (a) of this section or Executive order 13599 (other than an Iranian depository institution whose property and interests in property are blocked solely pursuant to Executive Order 13599); or (iv) pursuant to authority delegated by the President and in accordance with the terms of such delegation, sanctions shall be imposed on such pemon pursuant to section 12+a(cX1XA) of IFCA because the person: (A) is part of the energy, shipping, or shipbuilding sectors of Iran; (B) operates a port in lran; or {C) knowingly provides significant financial, material, technological, or other support to, or goods or services in support of any activity dr trans- action on behalf of a person determined under section 7244(i)(2)(A) of IFCA to be a part of the energy, shipping, or shipbuilding sectors of Iran; a person determined under section 1,2++(c)(z)(B) of IFCA to operate a- port in Iran; or an Iranian person included on the SDN List (other than a person described in section 72aa(c)(3) of IFCA). with respect lo aly person determined by the secretary of the Treasury . (b)accordance in with this section to meet any of the criteria set forth in s_ubsections (aXi)-(aXiv) of this section, all property and interests in property that are in the United States, that hereaftei come-within the United slates, or that are or hereafter come within the possession or control of any United states person- of such person are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in. . (c) The prohibitions in subsection (b) of this section apply except to the extent provided by statutes, or in regulations, orders] -directivei, or licenses that may be issued pursuant to ihis order, and notwithstanding any contract entered into or any license or permit granted prior to the effective date of this order or, where specifiCally provided, fhe effective date of the prohibition. sec..2. conespondent and P_ayable-Through Account sanctions Relating to Iran's Automotive sector; certain Iraniai Persons; and Trade in Iraiian Petroleum, Petroleum Products, and Petrochemical products. (a) The sec- retary 9f tlt" Treasury, in consultation with the secretary of State, is hereby authorized to impose on a foreign financial institution the sanctions describei in subsection (b) of this- sectio! upon determining that the foreign financial institution has knowingly conducted or facilitated any significairt financial transaction: (i) on or after Argust 7, ZO7B, for the sale, supply, or transfer to Iran of significant goods or services used in connectio-n- with the automotive sector oflran; (ii) on or after November s, zo1.}, on behalf of any Iranian person included on the sDN List (other than an Iranian depository institutilon whose prop- erty and interests in property are blocked soleiy pursuant to Executive order 13599) or any other person included on the Sn-N rist whose property and interests in property are blocked pursuant to subsection r(a) of this order or Executive Order 13599 (other than an Iranian depository institution yh3se plopefty_ and interests in property are blocked soleiy pursuant to Executive Order 13599); (iii) on or after November S, zOtB, with NIOC or NICO, except for a rglg_ ql provision to NIoc or NICO of the products described in' section s(al(sXAxi) of ISA provided $ql tttg fair niarket value of such products is lower than the applicable dollar threshold specified in that piovision;

Federal Register/Vol. 83, No. 152lTuesday, August 7, 2O'1.8/Presidential Documents 38941 (iv) on or after November 5, 2018, for the purchase, acquisition, sale, transport, or marketing of petroleum or petroleum produits from Iran; or (v) on or after November S, ZOIB, for the purchase, acquisition, sale, transport, or marketing of petrochemical producls from Iran. (b) with respect to any foreign financial institution determined by the ^ secretary. of the Treasury_ in accordance with this section to meet any of the criteria set forth in subsections (a)(i)-(a)(v) of this section, the secrdtary of th.e. Treasury- may prohibit the opening, and prohibit or impose strici .maintaining, in the united siates of a corriespondent conditions on the account or a payable-through account by such foreign financial inslitution. (c) Subsections (a)(ii)-(aXiv) of this section shall apply with respect to a.significant fina-ncial transaction conducted or facilitatia by foreign finan- cial institution for the purchase of petroleum or petroleum"produ"cts from Iran only if: (i) the President determines under subparagraphs (aXB) and (c) of sub- section 7245(d) of the National Defense-Authorization Act for fiical year 2012 (Public Law 7L2-81) (2012 NDAA) (22 U.S.C. 8513a) that there is.a sufficient supply of petroleum and petroleum products from countries other than Iran to permit a signific_ant reduction in fhe volume of petroleum and.petroleum products purchased from Iran by or through foreign financial institutions; and !ii) an _exception under subparagraph 4(D) of subsection 1245(d) of the 2012 NDAA from the imp.osition of sanctions under paragraph (r) ot that subsection does not apply. (d)_ subsection (aXii) of this section shall not apply with respect to a significant financial transaction conducted or facilitated by a foreign'financiai institution for the sale, supply, or transfer to or from iran of "natural gas only if the financial transaition is solely for trade between th; ;;n?t with primary- jurisdiction over the foreign financial institution and Irari, and any funds owed to Iran as a result-of such trade are credited to an account located in the country with primary jurisdiction over the roreign financial institution. (e) Subsections (a)(ii)-(a)(v) of this section shall not applv with resnect a.nV. person for conducting or facilitating a transaction^ fbi the proviiion !9 (including any sale) of agricultural commod'ities, food, medicine, oi medical devices to Iran. (f) T.he. prohibitions in subsection (b) of this section apply except to ^, the extent provided by statutes, or in regulations, orders]'directive's, or licenses .thatmay be issued pursuant to fliis order, and notwithstu"tin! any contract entered into or any license or permit granted prior to thE - effective date of this order or, where specifiially prSvided, ihe effective date of the prohibition. sec. 3. "Menu-besed" sanctions Relating to lran's Automotive sector and Ttade in lranian Petroleum, Petroleum Pr6ducts, and Petrochemical products. secretary of state, in consultation with the secretary of the T;;t, the.T" Ilt secretary of c-ommerce, the secretary of Homeland security, and tti" United states Trade Represeltative, and with the president of t'hb ild.t- lmport Bank, the chairman of the Board of Governors of the Federal ReJerve and other agencies and officials as appropriate, is h"ruby l_yr!"-' ro rmpose _on a person any of the sanctions described in section ""th;;t;; 5 of this order upon determining that the person: 4 0r (i).on o; u1r"t f,rgust 7, zo71, knowingly engaged in a significant trans- action for the sale, supply, -to .or transfei Iiai of significant good.s or services used in connection with the automotive sector oilrarr; (ii) on or after November s, 2078, knowin-gly engaged in a significant transaction for the purchase, acqrrisition, sal-e,- tranip"ort, or marfetin!-oi petroleum or petroleum products hom Iran;

38942 Federal Register/Vol. 83, No. 152lTuesday, August 7, 2078lPrcsidential Documents (iii) on or after November 5, 2018, knowingly engaged in a significant transaction for the purchase, acquisition, sale, transport, or marketing of petrochemical products from Iran; (iv) is a successor entity to a person determined by the Secretary of State in accordance with this section to meet any of the criteria set forth in subsections (aXi)-(aXiii) of this section; (v) owns or controls a person determined by the Secretary of State in accordance with this section to meet any of the criteria set forth in subsections (aXi)-(aXiii) of this section, and had knowledge that the person engaged in the activities referred to in those subsections; oi (vi) is owned or controlled by, or under common ownership or control with, a person determined by the Secretary of State in accoldance with this section to meet any of the criteria set forth in subsections (a)(i)- (aXiii) of this section, and knowingly participated in the activities referred to in those subsections. (b) Subsection (a)(ii) of this section shall apply with respect to a person only if: (i) the President determines under subparagraphs (+XB) and (C) of sub- section 7245(d) of the 2012 NDAA that there is a sufficient supply of petrole-um and petroleum products from countries other than Iran td ieimit a significan_t reduction in the volume of petroleum and petroleum pr6ducts purchased from Iran by or through foreign financial instiiutions; and (ii) an exception under subparagraph +(D) of subsection 1za5(d) of the 2012 NDAA from the imposition of sanctions under paragraph (f) of that subsection does not apply. Sec. 4. Agency Implementation Authorities for "Menu-based" Sanctions. when the secretary of state, in accordance'with the terms of section 3 of this ordet, has determined that a person meets any of the criteria described in subsections (a)(i)-(a)(vi) of that section and has ielected anv of the sanc- tions set forth below to_impose on that person, the heads of relevant agencies, in consultation with the secretary of state, as appropriate, shall tike the following actions where necessary to implement the s-anctions imposed by the Secretary of State: (a) the Board of Directors of the Export-Import Bank of the United states shall deny approval of the issuance of any guarantee, insurance, extension of credit, or participation in an extension-of credit in connection with the export of any goods or services to the sanctioned person; (b) agencies shalj not issue- any specific license or grant any other specific permission or authority rlnder any statute or regulition that requir^es the prior review and approval of the United States G-overnment as a condition for the export or reexport of goods or technology to the sanctioned person; (c) with respect to a sanctioned person that is a financial institution: (i) the Chairman of the Board of Governors of the Federal Reserve Svstem and the President of the Federal Reserve Bank of New york shali take such actions as they deem appr,opriate, including denying designation, or terminating the continuation of any prior designation of, ihe sanctioned person as a primary dealer in United States Government debt instruments: or (ii) agencies shall prevent the sanctioned person from serving as an agent of the united states Government or serving as a repositor! for Unfted States Government funds; agencies shall not procure, or enter into a contract for the procurement of,^(d) any goods or services from the sanctioned person; (e)the secretaryof ^ .sta-te shall deny a visa to, and the Secretary of Homeland security shall exclude from the united states, any alien thaf the secretary of state determines is a corporate officer or priniipal of, or a shareholde"r with a controlling interest in, a sanctioned person; or

Federal Register/Vol. s3, No. 152lTuesday, August 7, 2o7TlPresidential Documents 38943 (fl the heads of the relevant agencies, as appropriate, shall impose on the principal exe-cutive officer or officers, or persons performing similar functions and with similar authorities, of a sanctioned person the Janctions described in subsections (a)-(e) of this section, as selected bv the secretarv of State. {g) The prohibitions in subsections (a)-(0 of this section apply except to the extent provided by statutes, or in regulations, ordersi -directives, or licenses that may_be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted prior to thE effective date of this order or, where specifiCally provided, fhe effective date of the prohibition. sec. 5. Additional Implementation Authorities for "Menu-based" sanctions. (a) when the President, or the secretary of State or the secretary of the Treasury pursuant to authority delegated by the President and in aciordance with the terms of such delegation, has deiermined that sanctions described in section 6(a) of ISA shall be imposed on a person pursuant to ISA, CISADA, TRA, or IFCA and has selected one oi more -of the sanctions set forth below to impose on that person or when the secretary of state, in accordance with the terms of section 3 of this order, has determined lhgl ." p,erson meets any of the criteria described in subsections (a)(i)- (aXvi) of that section and has selected one or more of the sanctions set forth below to.imp-ose_on that person, the secretary of the Treasury, in consultation with the Secretary of State, shall take -the following aciions ryhe1e necessary to implemenf the sanctions selected and maintiined by the President, the Secretary of State, or the Secretary ofthe Treasury: (i) prohibit any United states financial institution from making loans or providing credits to the sanctioned person totaling mor:e than $10,000,000 in any- 12-month period, unless such person is engaged in activities to relieve human suffering and the loans oi credits are provided for such activities: (ii).plohibit any_transactions in foreign exchange that are subject to the jurisdiction of the united states and in which the sanctioned person has any interest; (iii) prohibit any transfers of credit or payments between financial institu- tions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the sanctioned person; Gv) block all property and interests in property that are in the United States, that hereafter come within the United Stat-es, or that are or hereafter come within the possessio-n or control of any united states person of the sanctioned peison, and provide that such- property and inlerests in property may not be transferred, paid, exported, withdiawn, or otherwise dealt in: (v) prohibit any united states p-erson from investing in or purchasing significant amounts of equity or debt instruments of isanctiotted petsonl (vi) restrict or prohibit ipn-or_ts of goods, technology, or services, directly or indirectl!, into the United States from the sanctioired person; or (vii) impose on- th^e principal executive officer or officers, or persons performing similar functionJ and with similar authorities, of a sanltioned person the-sanctions described in subsections (a)(i)-(aXvi) of this section, as selected by the President or secretary of state ot th" secretary of the Treasury, as appropriate. . (b)extent the The prohibitions in subsection (a) of this section apply except to provided by statutes, or in regulations, ordersi'directive's, or licenses that may be issued pursuant to this order, and notwithstandins any contract entered into or any license or permit granted prior to th6 effective date of this order or, where specifiially prdvided, the effective date of the prohibition.

38944 Federal Register/Vol. 83, No. 152lTuesday, August 7, z}7l/Presidential Documents Sec. 6. Sanctions Relating to the hanian fiiol. (a) The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to impose on a foreign financial institution the sanctions described in sub- section (b) of this section upon determining that the foreign financial institu- tion has, on or after August 7,2O18: (i) knowingly conducted or facilitated any significant transaction related to the -purchase or sale of Iranian rials or a derivative, swap, future, forward, or other similar contract whose value is based on the -exchange rate ofthe Iranian rial; or (ii) maintained significant funds or accounts outside the territory of Iran denominated in the Iranian rial. (b) With _ -respect to any foreign financial institution determined by the Secretary of the Treasury in accordance with this section to meet the ciiteria set forth in subsection (a)(i) or (a)(ii) of this section, the Secretarv of the Treasury may: (i) prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the united states of a correspondent account or a payable- through account by such foreign financial institution; or (ii) block all property and interests in property that are in the united states, that hereafter come within the United states, or that are or hereafter come within the possession or control of any united states person of such foreign financial institution, and provide that such proierty and interests in property may not be transferred, paid, exported, withdrawn, or otherwise dealt in. . (c) The prohibitions in subsection (b) of this section apply except to the extent provided by statutes, or in regulations, ordersl -directivei, or licenses that may be issued pursuant to tlis order, and notwithstanding any contract entered into or any license or permit granted prior to the effective date of this order or, where specifiCally provided, [he effective date of the prohibition. sec. 7. sanctions with Respect to the Diversion of Goods Intended for the Peop_le of _Iran, the Transfer of Goods or Technologies to Irqn that are U-k"ty to be us-ed to commit iluman Rights Abusesl and censorship. (a) The secretary of the Treasury, in consultation with or at the recommendation of the secretary_ of state,_ is hereby authorized to impose on a person the measures described in subsection [b) of this section upon determining that the person: (i) has engaged, on or after |anuary 2, zo1^g, in corruption or other activities relating to the diversion of goods, including agricultural commodities, food, medicine, and medical devices, intended -for the people of Iran; (ii) has engaged, on or after fanuary 2,2073, in corruption or other activities relating to the misappropriation of proceeds from the sale or resale of goods described in subsection (aXi) of lhis section; (iii) has knowingly, on or after August 1.o,2o'r.2, transferred, or facilitated the transfer_of, goods- or technologies to Iran, any entity organized under the laws of han or otherwise subiect to the jurisdiction of ttr-e Government of lran,-or any national of Iran, for use in or with respect to Iran, that are.likely to be used by the Government of Iran or any of its agencies or instrumentalities, or by any other person on behalf of the Goveinment of Iran or any of such agencies or instrumentalities, to commit serious human rights abuses against the people of lran; (iv) has knowingly, on or after August 1.o,2012, provided services, includ- ing services r-elating to hardware, software, of specialized information or prof-essional con-sulting,_ engineering, or support services, with respect to goods or technologies that have been tranifirred to Iran and thaf are likely to be_ used by the Government of Iran or any of its agencies or instrumentalities, or by any other person on behalf- of the G6vernment of lran or any of such agencies or instrumentalities, to commit serious human rights abuses against the people of Iran;

Federal Register/Vol. 83, No. 152lTuesday, August 7, 2OTSlPrcsidential Documents 38945 (v) has engaged in censorship or other activities with respect to Iran on or after June 72, 2OOg, that prohibit, limit, or penalize the exercise of freedom of expression or assembly by citizens of Iran, or that limit access to print or broadcast media, including the facilitation or support of intentional frequency manipulation by the Government of Iran of an entity owned or controlled by the Government of Iran that would jam or restrict an international signal; (vi) has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the activities described in subsections (aXi)-(aXv) of this sectioir- or anv peryon whose property and interests in property are blocked pursuant to this section; or (vii) is owned or controlled by, or has acted or purported to act for or on behalf of, directly or indirectly, *y person whbse property and interests in property are blocked pursuant to this section. With respect 10 aly person determined by the Secretary of the Treasury . (b)accordance in with this section to meet anv of the criteria set forth in subsections (aXi)-(aXvii) of this section, all property and interests in property that are in the united states, that hereaftei come-within the united siates, or that are or hereafter come within the possession or control of any United states person- of such person are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in. . (c) The prohibitions in subsection (b) of this section apply except to the extent provided by statutes, or in regulations, orders] -directivei, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted prior to the effective date of this order or, where specifiCally provided, ihe effective date of the prohibition. sec. 8. Entities owned or controlled bv a united states person and Estab- lished or Maintained Outside the IJnited States. (a) No entitv owned or controlled by a United States person and established or maintained outside the united states may knowingly engage in any transaction, directly or indirec^tly, with the Government of lran-oi any perion subiect to the luriidic- tion of the Government of lran, if that traniaction would be prohibited by Executive order 72957, Executive order 12959 of May 6, 199s, Executive order 13059 of August ]-g, lgg7, Executive order tisgg, or sections 1 or 15 of this order, or any regulation issued pursuant to the foregoing, if the transaction were engaged in by a unite-d states person or ii thi United States. (b) Penalties assessed for violations of the prohibition in subsection (a) of this section, and any related violations of iection rs of this order may be assessed against the United States person that owns or controls th"e entity that engaged in the prohibited transaction. . (c) The prohibitions in subsection (a) of this section apply, except to the extent provided by statutes, or in regulations, orders','directive's, or licenses that may be issued pursuant to ihis order, and notwithstanding an-y contract entered into or any-Iicense or permit granted prior to th6 effective date of this order or, where specifiially pr6vided, fhe effective date of the prohibition, except to the exient p.o*ria"a in subsection 20(c) of this order. !ec. 9r Reyoling and supelsedlng Prior Executive orders. The following Executive Orders are revoked and superseded: (a) Executive order 13028 of october g, zorz (Authorizing the Implementa- tion of Certain Sanctions Set Forth in the Iran Threat Reduction ind Svria Human Rights Act of 2o72 and Additional sanctions with Respect to Iran); and (b) Executive order L3z1.6 of |anuary 16, 2016 (Revocation of Executive orders 73574, 13s90, 73622, and reoa-s with Respect to Iran, Amendment

38946 Federal Register/Vol. 83, No. 152/Tuesday, August 7, z}Il/Presidential Documents of Executive order 13628 with Respect to Iran, and Provision of Implementa- tion Authorities for Aspects of Certain Statutory Sanctions Outside -the Scope of U.s. commitments under the foint comprehensive Plan of Action bf fuly 14, 2075). Sec. 10. Nofura/ Gas Project Exception Subsections 1(a), 2(aXii)-(aXv), 3(aXii)-(aXiii), and, with respect to a person determined by the Secretary of state in accordance with section 3 to meet the criteria-of 3(a)(ii)-(iiii, 3(aXiv)-(vi) of this order shall not apply with respect to any person for 'involving conducting or facilitating a transaction a project deicribed in subsection (a) of section 603 of TRA to which lhe exception under that section applies. sec. 11. Donations.I hereby determine that, to the extent section 203(bX2) of IEEPA (50 U.S.C. r7O2h)QD may apply, the making of donations of the types of articles specified in such -seclion by, to, 6r for the benefit of any person who-sg property and interests in property are blocked pursuant to this order would seriously impair my ability -to deal with the national emerg€ncy declared in Executive order lzgs7, and I hereby prohibit such donations as provided by subsections 1(b), s(aXiv), e(Uxii),^ and z(b) of this order. sec. 12. Prohibitions. The prohibitions in subsections 1(b), b(a)(iv), 6(b)(ii), and z(b) of this order include: .by,(a)to, the making of any contribution or provision of funds, goods, or services or fgr the benefit of any person whose property and interests in property are blocked pursuant to this order; and (b) the receipt of any contribution or provision of funds, goods, or services ^ any such person. from sec. .13. Entry into the tlnited states. The unrestricted immigrant and non- immigrant entry into the United states of aliens determined to meet one or more of the criteria in subsections 1(a), 3(a), and z(a) of this order would be detrimental to the interests of the united states, and the entrv of such persons into the United states, as immigrants or nonimmigrantJ, is hereby suspended. such persons shall be treited as persons c6vered by section 1 of Proclamatlon 8693 of Jrl]ry 2a, 2011 (Suspension of Entry of Aliens subject to united Nations securiiy council Travel Bans and Intei- national Emergency Economic Powers Act Sanctions). sec. 14. General Authorities. The secretary of the Treasury, in consultation with the secretary of state, is hereby authoiized to take suih actions, includ- ing__adopting and regulationi, to employ all powers granted to me -o("t(gi by IEEPA and-rules.sections o(alo), o(a)(z), o(ax-s), 6(aX1r), and 6(a)(12) of ISA, and to employ all powers granted to the united St"t"r Government by section 6(aX3) of -ISA, as may be necessary to carry out the purposes of this order, other than the purposes describ-ed in seitions 3, +] re of this order. The secretary ".rd rreasury may, consistent with applicable -of1he law, redelegate any of these functions within ttre Department of the iieasury. All.agencies of the United States shall take aII appiopriate measures within their authority to implement this order. sec. 15. Evasion and conspiracy. (a) Any transaction that evades or avoids, has !h.e purpose of-evading.-or avoiding, causes a violation of, or attempts to violate any of the prohibitions set forth in this order or in Executive order'1,2957, Executive order l2gsg, Executive order 130s9, or Executive Order 13599 is prohibited. . (b). Any conspiracy formed to violate any of the prohibitions set forth in this order or in Executive order 7zgs7, Eiecutive oider 7zssg, Executive Order 13059, or Executive Order 13599 is prohibited. Sec. 16. Definitions. For the purposes of this order: (a) the term "automotive sector of Iran" means the manufacturing or assembling in Iran of light_and hea-vy vehicles including passenger cars, trucks, buses, minibuses, pick-up trucki, and motorcycles, a"s i,r'ell as"originai

Federal Register/Vol. 83, No. 152lTuesday, August 7, 2o7l/Presidential Documents 38947 equjpm-ent_ manufacturing and after-market parts manufacturing relating to such vehicles; (b) the term "entityl' means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization; (c) the term "financial institution" includes (i) a depository institution (as defined in section 3(c)(r) of the Federal Deposit insurance Act) (12 u.s.c. 18rs(cxr)), including a branch or agency of a foreign bank (as defined in section 1(bXZ) of the International Banking Act of 1,975) (12 U.S.C. 3101(7)); (ii) a credit union; (iii) a securities firm, including a broker or dealer; (iv) an insurance company, including an agency oi underwriter; - and (v) any other company that provides financial serviies; (d) the term "foreign finan-cial institution" means any foreign entity that is engag:ed in the_ bu-siness of accepting deposits, making, gran-titrg, transfer- ring, holding, or brokering loans oi credits-, or purchasiig"or selling foreign exchang-e, securitie-s, commodity-futures or opti-ons, or pr6curing pulchase"rs and sellers thereof, as principal or agent. It includes-, but is"nbt limited to, depository institutions, banks, savings banks, money service businesses, trrrst companies,_securities brokers and dealers, commodity futures and op- tions brokers and dealers, forward contract and foreign exchange merchanti, securities and commodities exchanges, clearing corporationJ, investment companies, benefit plans, dealers in precious metals, stones, or jewels, and -employee holding companies, affiliates, or subiidiaries of any of the fore- going. The term does not include the international financiai institutions identified in 22 u.S.c. z\zr(c)(z), the International Fund for Agricultural Development, thg North American Development Bank, or any oiher inter- national financial institution so notified by the secretary of ihe Treasury; (e) the term "Government of Iran" includes the Government of lran. anv poltical subdivision, agency, or instrumentality thereof, including the centrJl Bank of Iran, and any person owned or controlled by, or for or on behalf of, the Government of Iran: "itittg (fl the term "Iran" means the Government of lran and the territory of Iran and_any other territor-]i or marine area, including the exclusive econdmic zone and continental shelf, over which the Governirent of Iran claims sov- ereignty, sovereign rights, or jurisdiction, provided that the Government of Iran exercises partial or total de facto control over the area or derives a benefit from economic activity in the area pursuant to international arrange- ments; (g) the term "Ilanian depository institution" means any entity (including ^ foreign br_anches), wherever localed, organized under the laws of Iran oi aly_ jurisdiction within Iran, or owned or controlled by the Government of Iran, or in Iran, or owned or controllgd by any of ihe foregoing, that is engaged. primarily in the business of banking (for -example, banis, J*i.rgt banks, savings associations, credit unions, trust companies, and bank holdiig companies); (h) the term "Iranian person" means an individual who is a citizen or national of Iran or an entity organized under the laws of Iran or otherwise subject to the jurisdiction olthe Government of lran: (i) the terms "knowledge" and "knowingly," with respect to conduct, a circumstance, or a result, mean that a pelion has actuil knowledge, or should have known, of the conduct, the circumstance, or the result: _ (j) the-terms "Naftiran Intertrade company" and "NICO" mean the Naftiran fntettradg 9oT"pu""y, Lt-d, 9r1a any entity-owned or controlled by, or operating tor or on behalf of, the Naftiran Intertrade Company Ltd.; (k) the terms "National Iranian Oil Company,, and ,,NIOC" mean the National Iranian oil.compafy and any_enti-ty owned or controlled by, ;; operating for or on behalf of, the National Iranian Oil Company; (t) the term "person" means an individual or entitv;

38948 Federal Register/Vol. 83, No. 152lTuesday, August 7, 2078/Presidential Documents (m) the term "petrochemical products" includes any aromatic, olefin, and synthesis gas, and any of their derivatives, including ethylene, propylene, butadiene, benzene, toluene, xylene, ammonia, methanol, and urea; (n) the term "petroleum" (also known as crude oil) means a mixture of trydrocarbons that exists in liquid phase in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities; (o) the term "petroleum products" includes unfinished oils, Iiquefied petro- .leum g_ases, pentanes plus, gasoline, -aviation motor gasoline, naphthi-type jet fuel, kerosene-type jet fuel, keroiene, distillate fuel oil, res^idud rllet oil, petrochemical feedstoc_\s, special naphthas, lubricants, waxes, petroleum coke, asphalt, road oil, still gai, and miscellaneous products obtained from the processing- of: crude oil (including lease condeisate), natural gas, and other hydrocarbon compounds. The term does not include natural ga"s, lique- fied natural gas, biofuels, methanol, and other non-petroleum fuels; " (p) the term "sanctioned person" means a person that the president, qt.th" Secretary o! staJg or the secretary of the Trehsury pursuant to authority delegated !y ttru President and in accordance with th6 t'erms of such delegi- tion, has determined is a person on whom sanctions described in secti"on 6(a) of ISA shall be imposed pursuant to ISA, CISADA, TRA, or IFCA, and on whom the President, the secretary of state, or the secretary oi the Treasury has imposed utry of the sanitions in section 6(a) of ISA or a-person on whom the Secretary of state, in accordance with the terms of section 3 of this order, has decided to impose sanctions pursuant to section 3 ofthis order: (q) the term "subject to the jurisdiction of the Government of Iran" means a pemo! organized under the laws of Iran or any jurisdiction within Iran, ordinarily resident in Iran, or in Iran, or owned or controlled by of the foregoing; ".ty (r) the term "United States financial institution" means a financial institu- tion as defined in subsection (c) of this section (including its foreign branches) orgarrized_ under the laws of the united States or an! jurisdidtion within the United States or located in the United States; and (s) the term "united states person" means any United states citizen, permanent resident alien, entity organized under the laws of the united states or any jurisdiction wifhin -the United states (including foreign branches), or any person in the United States. sec. 17. Notice. For those persons whose p-roperty and interests in property are blocked pursuant to this order who might^have a constitutio""t p."J"""6 in the united states, I find that becausJ of the ability to transfir funds or other assets instantan_eously, prior notice to such pLtson, of measures to be taken pursuant to this oidei would render those ineasures ineffectual. I therefore determine that for these measures to be effective in addressing the national emergency declared in Executive order 1,zgs7, there need bE no prior _notice of a listing ttr defslniration made pursuant to subsections 1(b), s(a)(iv), 6(bxii), and z[b) of this order. sgca 11 Delegation to Implement section fiaA of 1ISADA. The secretary "of 9f tfre Treasury, in consult-ation with the secretary st"tu, is hereby *it ized to take such actions, including adopting iules and regulations, and "i- to employ all.powers gra{rt{_to."" uy-muFn, as may be necessary to carry out section 104A of CISADA (22 IJ:s.c. Bs13b).-The secretarl, of the Treasurl consistent with tunctions withinT"I, the Department -applicable law, redelegate any of tLese of the Treasury. sec. 19. This order is not intended to, and does not, create any right or ,Rights. benefit, substantive or procedural, enforceable at law or in equity party against the united -states, its departments, agencies, or entities, lv "lJ rrs ottrcers, employees, or agents, or any other person.

Federal Register/Vol. 83, No. 152lTuesday, August 7, zol8/Presidential Documents 38949 sec. 20. Effect on Actions or Proceedings, Blocked Property, and Regulations, orders, Directives, and Licenses. (a) Pursuant to seltion 202 of-the NEA (50 u.s.c. 1622), the revocation of Executive orders '1.s776 and 1362g as set forth in section 9 of this order, shall not affect any action taken or proceeding pending not finally concluded or determined as of the effective date of this order, or any action or proceeding based on any act committed prior to the effective date of this order, or any rights or duties that matured or penalties that were incurred prior to the eflective date of this order. (b) Except to the extent provided in statutes or regulations, orders, direc- . tives, or licenses that may be issued pursuant to tf,is order, and notwith- standing^ any contract entered into or any license or permit granted prior to the effective date of this order, the foilowing are biocked ind may not be transferred,.paid, exported, withdra-r,rm, or oth-erwise dealt in: all property and intere.sts in property that were blocked pursuant to Executive Order '13628 and remained blocked immediately piior to the effective date of this order. _ (c) Except to the extent provided in regulations, orders, directives, or licenses that may be issued-pursuant to this order, all regulatiorrr, ord"rr, directives, or licenses that were issued pursuant to Execulive order fi62d and remained in effect immediately prior to the effective date of this order are. hereby authorized to remain in -effect-subject . to their existing terms and conditions-pursuant to this order, which continues in effect"certain sanctions set forth in Executive Order 1,Z628, sec. 21. Relationship to Algiers Accords. The measures taken pursuant to this order are in teipons" Io actions of the Government oi rrair occurring after the conclusion of the 1981 Algiers Accords, and are intended solel! as a rcsponse to those later actions. s:c, 22. Effective Dafe. This order is effective 12:01 a.m. eastern daylight time on August 7,2078. THE WHITE HOUSE. August 6, 2078. IFR Doc. 2078-77068 Filsd 8-6-18; 2:00 pml Billing code 3295-F8-P