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