TSX Delisting Review – INSCAPE Corporation (INQ)

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OCC Announces Deputy Comptroller for Systemic Risk Identification and Support

WASHINGTON — The Office of the Comptroller of the Currency (OCC) today announced Melissa Love-Greenfield as Deputy Comptroller for Systemic Risk Identification and Support (SyRIS) within the Supervision Risk & Analysis division. She will assume these duties January 29, 2023.

In this role, Ms. Love-Greenfield will oversee the staff responsible for identifying, evaluating, and holistically addressing risks that impact the Agency’s mission, providing subject matter expertise across all risk disciplines, assisting in resource prioritization focusing on the highest risk financial institutions and companies, and providing direct supervision to service providers. This includes playing a critical role overseeing the Supervision Risk Management team and managing the National Risk Committee processes.

She most recently served as Associate Deputy Comptroller for Operational Risk, Governance, and Technology for SyRIS where she managed lead expert teams covering the risk disciplines of enterprise governance, operational risk and technology. She also oversaw the agency’s participation in the interagency coordinated cybersecurity review and the significant service provider programs.

Ms. Love-Greenfield has more than 30 years of supervision experience serving in a variety of roles across Midsize and Community Bank Supervision, Large Bank Supervision, Bank Supervision Policy, and SyRIS. She is a graduate of Auburn University and The George Washington University. She holds the Certified Information Systems Auditor (CISA) professional certification from ISACA.

Media Advisory: Under Secretary of the Treasury Brian E. Nelson to Travel to Washington and California

WASHINGTON – During the week of January 9th, Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson will travel to Seattle, Washington and San Francisco and San Diego, California. While on the West Coast, he will meet with the private sector to discuss illicit finance and financial inclusion. Under Secretary Nelson will discuss ways to reduce de-risking that results in the indiscriminate loss of financial access for entire categories of customers – rather than assessing risks and potential for mitigation in a targeted way – and how to mitigate the impact it has on diaspora communities, certain kinds of small businesses, and humanitarian organizations.

Under Secretary Nelson’s trip reflects the Biden-Harris administration’s priority to shape a safer, more transparent, and more accessible financial system, while at the same time maintaining robust frameworks to protect the U.S. financial system from illicit actors and bolstering national security. Striking the appropriate balance between these two important objectives is a critical part of making the U.S. anti-money-laundering (AML) framework effective. In particular, the administration places a high priority on addressing de-risking, as it not only hurts certain communities but can pose a national security risk by driving financial activity outside of regulated channels.

The foundation of U.S. AML and sanctions regimes is the risk-based approach, which calls for financial institutions to assess their money laundering, terrorist financing, and sanctions risks as well as their ability to mitigate, identify, and address such risks and allocate compliance resources accordingly. In the coming weeks, Treasury will release its National De-Risking Strategy with recommendations to tackle these challenges.

Ahead of the report’s release, in Seattle and San Francisco Under Secretary Nelson will meet with community banks and money services businesses (MSBs), including those that serve diaspora communities affected by de-risking, to hear their perspectives. He will also meet with technology companies to discuss innovations that can expand financial inclusion and equitable access to financial services, as well counter illicit finance.

Under Secretary Nelson will also travel to San Diego to support Treasury’s ongoing work to combat drug trafficking, particularly the illegal fentanyl trade, as well as human smuggling and human trafficking.

Seattle

On Monday, January 9th, Under Secretary Nelson will meet with members of the Independent Community Bankers of America and the Community Bankers of Washington.

On Tuesday, January 10th, Under Secretary Nelson will participate in a de-risking roundtable hosted by the office of Congressman Adam Smith with MSBs and the Washington State Department of Financial Institutions. This meeting is closed press, but Under Secretary Nelson will be available for interviews afterwards on-site. Email [email protected] to arrange an interview.

San Francisco

On Wednesday, January 12th and Thursday, January 13th, Under Secretary Nelson will meet with technology companies to discuss financial innovation and ways to leverage new technologies to protect the U.S. financial system from abuse while advancing financial inclusion, as well as members of the Independent Community Bankers of America and the California Community Banking Network.

San Diego

On Friday, January 14th, Under Secretary Nelson will meet with federal law enforcement partners to discuss Treasury’s ongoing work to combat drug trafficking, particularly the illegal fentanyl trade, as well as human smuggling and human trafficking.

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Remarks by Secretary of the Treasury Janet L. Yellen at Bilateral Meeting with Canadian Deputy Prime Minister and Minister of Finance Chrystia Freeland

As prepared for delivery

Deputy Prime Minister Freeland, it’s a pleasure to welcome you back to DC for today’s meeting.

Canada is a key ally and one of our closest economic partners.  The strength of that relationship will be furthered by President Biden and Prime Minister Trudeau at the North American Leaders Summit today in Mexico City. 

As I said when I visited Toronto last year, America seeks to deepen our economic ties with Canada, strengthen our supply chains, and mitigate against global challenges through friend-shoring.

We have a particular opportunity to do so by enhancing our collaboration on clean energy technologies that will increase our energy security against autocrats like Putin, power our clean energy transition, and create good-paying jobs.

I also want to thank you for your unwavering support for the people of Ukraine in the face of Russia’s unprovoked and barbaric invasion. Together, the United States and Canada have worked with a global coalition to impose on Russia some of the toughest sanctions in history.

Our goal has been to disrupt military supply chains and deny Russia the weapons they need to wage their illegal war, and to limit the revenue they’re using to pay for it. We’ve seen significant progress on both fronts with Russia’s fiscal outlook becoming increasingly grim, and with Russian soldiers being forced to rely on outdated technology and suppliers of last resort like North Korea and Iran.

We have also worked closely together on the G7’s price cap on Russian oil, which seeks to both promote stable global energy markets while limiting the Kremlin’s most important source of revenue. While the crude oil price cap has only been in effect for around a month, we have already seen early progress towards both of those goals – with senior Russian officials having admitted that the price cap is cutting into Russia’s energy revenue. Global energy markets have also remained well-supplied, and public reports indicate that countries are using the price cap to drive steep bargains on the price of Russian oil imports. 

We have much more to discuss today and I look forward to our conversation.  With that, I invite Deputy Prime Minister Freeland to provide opening remarks.

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Treasury Sanctions Suppliers of Iranian UAVs Used to Target Ukraine’s Civilian Infrastructure

Degraded by Western Sanctions, Russia Turns to Iran for Military Support

WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating six executives and board members of U.S. designated Qods Aviation Industries (QAI), a key Iranian defense manufacturer responsible for the design and production of unmanned aerial vehicles (UAVs).  Iran has transferred these UAVs for use in Russia’s unprovoked war of aggression in Ukraine. OFAC is also updating QAI’s entry on the Specially Designated Nationals and Blocked Persons List (SDN List) to include its new alias, Light Airplanes Design and Manufacturing Industries. Finally, OFAC is designating the director of Iran’s Aerospace Industries Organization (AIO), the key organization responsible for overseeing Iran’s ballistic missile programs.

“We will continue to use every tool at our disposal to deny Putin the weapons that he is using to wage his barbaric and unprovoked war on Ukraine,” said Secretary of the Treasury Janet L. Yellen. “The Kremlin’s reliance on suppliers of last resort like Iran shows their desperation in the face of brave Ukrainian resistance and the success of our global coalition in disrupting Russian military supply chains and denying them the inputs they need to replace weapons lost on the battlefield. The United States will act swiftly against individuals and entities supporting Iran’s UAV and ballistic missile programs and will stand resolutely in support of the people of Ukraine.”

Treasury is acting today pursuant to Executive Order (E.O.) 13382, “Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters.” It follows the December 9, 2022, November 15, 2022 and September 8, 2022 designations of individuals and entities involved in the production and transfer of Iranian Shahed- and Mohajer-series UAVs, which Moscow is using in attacks targeting Ukraine’s critical infrastructure.

QAI Name Change

QAI, which is involved in the production of UAVs and is overseen by Iran’s Ministry of Defense and Armed Forces Logistics (MODAFL), was designated pursuant to E.O. 13382 on December 12, 2013. MODAFL and the U.S.-designated Islamic Revolutionary Guard Corps (IRGC) contract with QAI for aviation and air defense-related projects, most notably the design and manufacture of the Mohajer-6 UAVs that have been transferred to Russia for use in its unprovoked war of aggression in Ukraine. As a result of its role producing UAVs supplied to Russia, QAI was also designated pursuant to E.O. 14024, “Blocking Property With Respect To Specified Harmful Foreign Activities of the Government of the Russian Federation,” on November 15, 2022.

As of mid-2020, QAI has operated under its new alias, Light Airplanes Design and Manufacturing Industries. As QAI and its affiliated individuals and entities continue to engage in sanctions evasion such as procurement of sensitive UAV parts and technology and proliferation of these UAVs, OFAC is updating QAI’s entry on the SDN List to add Light Airplanes Design and Manufacturing Industries as an alias used by QAI.

QAI Executives

Seyed Hojatollah Ghoreishi (Ghoreishi) serves as the Chairman of the Board of Directors of QAI. As the head of the Supply, Research, and Industry Affairs section of MODAFL, and Deputy Minister of Defense, he has led Iran’s military research and development efforts and was responsible for negotiating Iran’s agreement with Russia for the supply of Iranian UAVs for Russia’s war in Ukraine.

Ghoreishi is being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, both MODAFL and QAI.

Ghassem Damavandian (Damavandian) is the Managing Director of QAI and a member of the firm’s board. In his role as Managing Director, Damavandian has likely facilitated QAI’s supply of UAVs to Iranian military services in addition to training Russian personnel on the use of QAI-manufactured UAVs.

Damavandian is being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, QAI.

Hamidreza Sharifi-Tehrani (Sharifi-Tehrani) has served as a primary member of the Board of Directors of QAI. He has traveled for international conferences related to UAVs and has undoubtedly been involved in the supply of UAVs and related equipment to Iranian military services. Reza Khaki (Khaki), Majid Reza Niyazi-Angili (Niyazi-Angili), and Vali Arlanizadeh (Arlanizadeh) have also served as members of the Board of Directors for QAI.

Sharifi-Tehrani, Khaki, Niyazi-Angili, and Arlanizadeh are all being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, QAI.

AIO Director

Nader Khoon Siavash (Siavash) is the Director of AIO, the U.S. designated organization that oversees Iran’s ballistic missile programs. In his role as AIO Director, Siavash oversees AIO’s ballistic missile production and testing and deals with international suppliers. AIO was sanctioned under E.O. 13382 on June 28, 2005. Iran’s Central Bank has siphoned millions in discounted foreign currency — ostensibly earmarked for importers of essential goods — to AIO per year, underscoring the regime’s prioritization of its missile programs at the expense of its own citizens.

Siavash is being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, AIO.

Sanctions Implications

As a result of today’s action, all property and interests in property of the individuals and entities that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. OFAC sanctions generally prohibit all dealings by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.

In addition, persons that engage in certain transactions with the individuals or entities designated today may themselves be exposed to sanctions. Furthermore, any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for any of the individuals or entities designated today pursuant to E.O. 13382 could be subject to U.S. sanctions.

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s FAQ 897.

Identifying information on the individuals and entities designated today.

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OCC Issues Annual Report for 2022

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today published its 2022 Annual Report. The OCC Annual Report provides Congress with an overview of the condition of the federal banking system, discusses the OCC’s strategic priorities and initiatives, and shares the agency’s financial management and condition.

The report specifically highlights the OCC’s work to foster and safeguard trust – trust between financial providers and their consumers, trust between regulators and supervised institutions, trust that banks will not exploit working or vulnerable Americans, and trust among financial regulators to work together to solve broad problems.

Related Links

The United States and Türkiye Take Joint Action to Disrupt ISIS Financing

WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated critical nodes of a key financial facilitation network of the Islamic State of Iraq and Syria (ISIS), which included four individuals and two entities in Türkiye, who have enabled the terrorist group’s recruitment and financial transfers to and from Iraq and Syria. This network played a key role in money management, transfer, and distribution for ISIS in the region. Concurrently, the Turkish Ministry of Treasury and Finance, together with the Ministry of Interior, have implemented an asset freeze against members of this network.

“Today’s action reaffirms Treasury’s commitment to degrade ISIS’s ability to operate globally,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “These designations and accompanying asset freezes are a result of close coordination and collaboration with our Turkish partners to target ISIS activity in the region.”

This follows OFAC’s November 7, 2022 designation of four individuals and eight companies as part of an ISIS cell in South Africa, which was providing technical, financial, or material support to the terrorist group. These individuals and entities are being designated pursuant to Executive Order (E.O.) 13224, as amended, which targets terrorist groups and their supporters.

ISIS FINANCIAL FACILITATOR BRUKAN AL-KHATUNI

Abd Al Hamid Salim Ibrahim Ismail Brukan al-Khatuni (Brukan al-Khatuni) is an Iraqi national illegally living in Türkiye, who has engaged in financial facilitation and recruitment activities for ISIS. Brukan al-Khatuni has played a significant role in transferring funds through his network in support of ISIS and ISIS senior leaders.

Brukan al-Khatuni has served as the head of foreign financing in ISIS’s so-called Wilayat al-Jazirah in Iraq.  In 2016, Brukan al-Khatuni moved to Türkiye to manage ISIS’s financial facilitation network there and transferred funds from Arabian Gulf-based donors to ISIS. Also in 2016, Brukan al-Khatuni joined an ISIS recruitment cell, which was tasked with spreading the ideology of ISIS’s previous emir Abu Bakr al-Baghdadi.

As of 2018, Brukan al-Khatuni had assumed an important role in managing ISIS financing in Türkiye. That same year, ISIS transferred millions of dollars to Brukan al-Khatuni. Brukan al-Khatuni managed hawala offices and played roles in ISIS money management, transfer, and distribution.

In 2021, Brukan al-Khatuni sent funds to Yasir ‘Ali Ahmad Nuwayran al-Farraji, an ISIS cell member arrested by the Kurdistan Regional Government Counterterrorism Directorate on March 29, 2021 for planning attacks against Kurdish military and security forces in Erbil, Iraq. Al-Farraji later confessed to planning attacks in Erbil in a public statement on April 12, 2021.

Abd Al Hamid Salim Ibrahim Ismail Brukan al-Khatuni is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material or technological support for, or goods or services to or in support of, ISIS.

AL-KHATUNI NETWORK

Muhammad Abd Al Hamid Salim Brukan al-Khatuni (Muhammad Abd Al Hamid) and Umar Abd Al Hamid Salim Brukan al-Khatuni (Umar Abd Al Hamid), Brukan al-Khatuni’s sons, coordinated with an ISIS finance official to facilitate the transfer of over $500,000 in June 2021. Muhammad Abd Al Hamid and Umar Abd Al Hamid were both affiliated with a money service business in Mersin, Türkiye, which Brukan al-Khatuni later re-branded as Wadi Alrrafidayn for Foodstuffs (Wadi Alrrafidayn). Brukan al-Khatuni and his sons all worked at Wadi Alrrafidayn.

Umar Abd Al Hamid Salim Brukan al-Khatuni, and Muhammad Abd Al Hamid Salim Brukan al-Khatuni are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material or technological support for, or goods or services to or in support of, ISIS.

Wadi Alrrafidayn for Foodstuffs is being designated for being owned, controlled, or directed by, directly or indirectly, Brukan al-Khatuni.

Türkiye-based Sham Express, a company founded in 2020 by Brukan al-Khatuni, has also been used by ISIS-affiliated individuals to transfer funds for the group. Particularly, ISIS financial facilitator Lu’ay Jasim Hammadi al-Juburi (Lu’ay Jasim) used Sham Express to transfer money on behalf of ISIS between Türkiye, Syria, and Iraq.

Prior to his arrest in July 2021, then-ISIS finance leader ‘Abd-al-Rahman ‘Ali al-Ahmad al-Rawi (al-Rawi) established financial channels throughout Russia, Europe, China, and Africa to transfer existing ISIS funds and generate additional ISIS revenue. Al-Rawi worked with Sham Express in connection with these activities. Treasury designated al-Rawi pursuant to E.O. 13224 on April 15, 2019.

ISIS financial facilitators also used Sham Express to support the smuggling of gold from Syria and Sudan via Iraq, Egypt, and Libya to generate additional revenue for ISIS. Sham Express is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material or technological support for, or goods or services to or in support of, ISIS.

Lu’ay Jasim, previously an al-Qa’ida member since 2008, joined ISIS in 2014 and worked in ISIS’s financial administration for several years until he moved to Mersin, Türkiye, where he managed a business used by ISIS members in Türkiye to illegally transfer funds throughout the region, notably Iraq and Egypt.

Lu’ay Jasim Hammadi al-Juburi is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material or technological support for, or goods or services to or in support of, ISIS.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the persons named above, and of any entities that are owned, directly or indirectly, 50 percent or more by them, individually, or with other blocked persons, that are in the United States or in the possession or control of U.S. persons, must be blocked and reported to OFAC. Unless authorized by a general or specific license issued by OFAC or otherwise exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of designated or otherwise blocked persons. The prohibitions include the making or receiving of any contribution of funds, goods, or services to or for the benefit of those persons.

Furthermore, engaging in certain transactions with the persons designated today entails risk of secondary sanctions pursuant to E.O. 13224, as amended. Pursuant to this authority, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account of a foreign financial institution that has knowingly conducted or facilitated any significant transaction on behalf of a Specially Designated Global Terrorist (SDGT).

The power and integrity of OFAC sanctions derive not only from its ability to designate and add persons to the List of Specially Designated Nationals or Blocked Persons (“SDN List”), but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list.

View identifying information on the persons designated today.

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Agencies Issue Joint Statement on Crypto-Asset Risks to Banking Organizations

Federal bank regulatory agencies today issued a statement highlighting key risks for banking organizations associated with crypto-assets and the crypto-asset sector and describing the agencies’ approaches to supervision in this area.

In particular, the statement describes several key risks associated with crypto-assets and the crypto-asset sector, as demonstrated by the significant volatility and vulnerabilities over the past year. Given these risks, the agencies continue to take a careful and cautious approach related to current and proposed crypto-asset-related activities and exposures at banking organizations. The agencies continue to assess whether or how current and proposed crypto-asset-related activities by banking organizations can be conducted in a manner that is safe and sound, legally permissible, and in compliance with applicable laws and regulations, including those designed to protect consumers.

The agencies will continue to closely monitor crypto-asset-related exposures of banking organizations, and, as warranted, will issue additional statements related to engagement by banking organizations in crypto-asset related activities.

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Year in Review: Treasury’s Top Accomplishments During Year Two of the Biden-Harris Administration

WASHINGTON – In the second year of the Biden-Harris Administration, the U.S. Department of the Treasury has made significant strides in implementing President Biden’s economic agenda. This included efforts to lower costs for American families and bolster our nation’s economic resilience by addressing lingering challenges resulting from the pandemic and unanticipated global threats including Russia’s war in Ukraine. As a result of the actions taken by the Biden-Harris Administration, we enter 2023 with an economy that is on track for stable and sustainable growth while maintaining a healthy and strong labor market.

Throughout 2022, Treasury supported the passage of the Inflation Reduction Act, the Bipartisan Infrastructure Law, and the CHIPS and Science Act, including through numerous engagements with Members of Congress, ongoing technical assistance, and a wide-ranging effort to build support across the country and communicate the importance of this trifecta of legislation that is strengthening the foundations of our economy. In September, Secretary Janet L. Yellen delivered a speech in Detroit laying out how these key legislative accomplishments taken together authorize some of the most significant investments America has ever made. 

As the Department worked to bring down costs for American families in the immediate-term, it also begun enacting a forward-looking economic agenda that makes critical investments in our nation’s future and workforce. By working across the federal government and in partnership with state, local, and Tribal governments to implement President Biden’s economic plan, Treasury has helped expand our economy’s capacity for sustainable, resilient growth going into 2023.

Below is a look at just some of the ways Treasury delivered for the American people in 2022:

Supporting families and the middle class

  • To help level the playing field for American workers, Treasury joined the U.S. Department of Justice, the U.S. Department of Labor, and the Federal Trade Commission in issuing a new report on the state of competition in the labor market and U.S. economy, which recommended market reforms.

 

Spearheading economic recovery and ensuring American Rescue Plan funding reaches those who need it the most

  • In 2022, Treasury continued to deploy funds from the American Rescue Plan to aid those impacted by the pandemic and to support a strong, equitable recovery. The State and Local Fiscal Recovery Funds (SLFRF) continue to play a crucial role in allowing state, local, Tribal, and territorial governments to invest in their communities, stabilize their budgets, and respond to the pandemic. The program is also supporting and expanding the workforce with more than 3,000 projects covering $10 billion in order to assist workers impacted by the pandemic and prepare more Americans for the critical jobs being created by the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act.
    • Treasury approved 26 state plans to invest over $3.7 billion of broadband funding under ARP’s Capital Projects Fund (CPF). Together, these states have estimated that this funding will connect more than 936,000 homes and businesses to affordable, high-speed internet.
    • Treasury also made significant progress in deploying funds from the American Rescue Plan’s $10 billion State Small Business Credit Initiative (SSBCI), which aims to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities. Treasury has now approved plans for 43 states and obligated over 77% of capital funds.
    • The Emergency Rental Assistance (ERA) program continues to play a key role in preventing mass evictions and keeping families in their homes. Today, ERA has made over 8 million payments to renters and their families at risk of eviction while making landlords whole and meeting equity goals. Over 80 percent of assistance has gone to very low-income renters. Additionally, Treasury has disbursed over $9 billion through the Homeowner Assistance Fund (HAF) to state, territorial, and Tribal governments, providing a lifeline to homeowners at a time when refinancing or other workout options are limited.

Implementing the Inflation Reduction Act in partnership with the IRS

  • The Inflation Reduction Act is the single most significant legislation to combat climate change in our nation’s history, and nearly three-quarters of its climate change investment – $270 billion – is delivered through tax incentives, putting Treasury at the forefront of this landmark legislation.
  • Since the Inflation Reduction Act was signed into law in August, Treasury has worked expeditiously to write the rules that will make real the promise of this legislation.
  • Within days of the law’s enactment, Treasury issued guidance on the electric vehicle tax credit and worked closely with DOT and DOE so consumers could easily find a list of eligible vehicles online.
  • In the fall, Treasury held a series of stakeholder discussions with Secretary Yellen and Deputy Secretary Adeyemo to solicit input from key groups representing millions of workers, thousands of companies, and trillions of dollars in investment assets, as well as climate and environmental justice advocates, community-based organizations, and other key actors that are critical to the success of the Inflation Reduction Act.
  • Treasury also hosted three formal consultations with Tribal governments and Alaska Native Corporations to hear firsthand from Tribal leaders about provisions in the law that directly affect Tribal nations.
  • In November, Treasury published initial guidance on the prevailing wage and apprenticeship standards. And in December, Treasury and the IRS issued several pieces of guidance to help taxpayers access tax benefits from the law’s clean vehicles and energy efficient commercial buildings and homes provisions. 
  • Treasury, in partnership with the IRS, has also begun work on a strategic operating plan to set out a path for the historic ten-year investment in the IRS to modernize tax administration, improve taxpayer services and make the tax code fairer.

Responding to Russia’s war in Ukraine

  • Treasury, in coordination with partners and allies around the world, marshaled a historic sanctions coalition of over 30 countries to disrupt Russia’s military supply chains and deny Putin the revenue he needs to wage his war, resulting in major impact to the Russian economy and defense sector.
  • Treasury also coordinated with allies bilaterally and multilaterally at forums like the G20 to condemn Russia’s actions and address the global headwinds they’ve created, including issues like food security, as well as distributing $13 billion in bilateral economic assistance to Ukraine. In addition, Treasury pressed allies and international financial institutions to also step up to support Ukraine’s funding needs and medium- and long-term reconstruction.
  • Treasury, along with the U.S. Department of Justice, led the Russian Elites, Proxies, and Oligarchs (REPO) Task Force to freeze and seize billions of dollars of assets held by sanctioned Russian elites around the world.
  • Treasury worked closely with the G7, European Union, and Australia to jointly set a cap on the price of seaborne Russian oil to restrict Vladimir Putin’s primary source of revenue for his illegal war while simultaneously preserving the stability of global energy supplies.

 

Protecting Consumers and the Financial System from Risks Posed by Digital Assets While Fostering Innovation

  • As part of President Biden’s Executive Order, Treasury published multiple reports on digital assets, offering recommendations on topics including implications for the future of money and payments, illicit finance, consumer protection, and financial stability. This work built on the 2021 stablecoin report produced by the President’s Working Group on Financial Markets and was produced in consultation with financial regulatory agencies and other interagency partners. 
  • Soon after the failure of FTX, Secretary Yellen noted that, “Some of the risks we identified . . . including comingling of customer assets, lack of transparency, and conflicts of interest, were at the center of the crypto market stresses observed over the past week.” Treasury continues to monitor the rise in usage of digital assets, and implications for consumers, investors and the financial system.
  • Treasury also issued new and innovative sanctions on virtual currency exchanges used for illicit activity, such as laundering proceeds from cyber heists.

 

Bolstering Treasury Market Resilience and Maintaining a Competitive Economy

  • Treasury continued to make progress on enhancing the resilience of the Treasury Market, working with regulatory partners on steps to improve market intermediation, require more dealers to register, and make transactions more transparent.
  • Treasury released a report on the impact of non-bank fintech firms on competition in consumer finance markets, identifying opportunities and risks and recommending  new protections for consumers, businesses, and the financial system.

 

Tackling the climate crisis

  • As noted above, Treasury is playing a significant role in the implementation of the Inflation Reduction Act’s historic climate change investments.
  • The Financial Stability Oversight Council, chaired by Treasury, has developed and advanced 30+ recommendations to address climate-related financial risk to the U.S. financial system. FSOC also this year created a climate-related advisory committee to receive information and analysis on climate-related financial risks from a broad array of stakeholders.
  • Treasury led the U.S. government’s engagement with donor countries and South Africa to establish a novel and impactful climate partnership model, the Just Energy Transition Partnership (JETP).  Treasury then co-led donor engagement on and development of the $20 billion Indonesia JETP, the largest-ever standalone climate finance deal.
  • Through a nearly $1 billion loan to the Climate Investment Funds’ (CIF) Clean Technology Fund (CTF), Treasury is helping to deliver on President Biden’s pledge to quadruple the United States’ international public climate finance pledge by FY24.

 

Strengthening our Nation’s Commitment to Tribal Communities

  • In June, Secretary Yellen traveled to the Rosebud Indian Reservation in South Dakota—the first time in history a U.S. Treasury Secretary visited a Tribal nation. During the visit, Secretary Yellen heard first-hand from Tribal citizens about the unique challenges they and Tribal nations around the country face and discuss how Tribal communities and the federal government can partner together to accelerate the economic recovery for all Tribal citizens.
  • During the visit to the Rosebud Indian Reservation, President Biden announced his intent to appoint Lynn Malerba, Lifetime Chief of the Mohegan Indian Tribe, as Treasurer of the United States, the first Native American to hold that position. Chief Malerba was sworn in as Treasurer in September.
  • Treasury has issued a historic level of financial support to provide critical recovery assistance and improve the health and well-being of Tribal citizens. The $20 billion in State and Local Fiscal Recovery Funds allocated to Tribal governments through the American Rescue Plan represents the largest single infusion of federal funding into Indian Country and is already being used to jumpstart their recovery and invest in transformative initiatives for their economies.
  • In June, Treasury established a new Office of Tribal and Native Affairs, which reports to the Treasurer and coordinates Tribal relations throughout the Department.

 

Fostering equity in our economic landscape

  • Treasury has made over $8.28 billion of investments in 162 Community Development Financial Institutions and Minority Depository Institutions across the country through the Emergency Capital Investment Program (ECIP). These funds support the efforts of community financial institutions to provide loans, grants, and other assistance to small and minority-owned businesses and consumers, especially in low-income and financially underserved communities. In its implementation of ECIP, Treasury is providing additional incentives to participants for “deep impact lending,” including loans to low-income borrowers and underserved small businesses.
  • In October, the Department formed the Treasury Advisory Committee on Racial Equity. The first-of-its-kind committee will provide advice and recommendations to Treasury on efforts to advance racial equity in the economy and address acute disparities for communities of color. 

Implementing historic new transparency standards to protect the U.S. financial system from abuse

  • Building on years of bipartisan work by Congress, the Administration, national security and law enforcement agencies, and other stakeholders, Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a new rule on beneficial ownership reporting under the Corporate Transparency Act to crack down on criminals, corrupt individuals, and other bad actors who seek to take advantage of America’s financial system for illicit purposes.
  • This rule will help strengthen U.S. national security by making it more difficult for oligarchs, terrorists, and other global threat actors to use complex legal structures to launder money, traffic humans and drugs, and commit other crimes that threaten harm to the American people.
  • The rule also will help level the playing field for honest businesses that play by the rules but are at a disadvantage when competing against bad actors who use shell companies to evade taxes, hide their illicit wealth, and defraud customers and employees.

 

Treasury Releases Additional Information on Clean Vehicle Provisions of Inflation Reduction Act

WASHINGTON, D.C. – Today the U.S. Treasury Department and the IRS released the following information on certain clean vehicle provisions of the Inflation Reduction Act. The information provides greater clarity to consumers and businesses that, beginning January 1, 2023, will be able to access tax benefits from the law’s clean vehicle provisions. 

  • FAQs for consumers on the clean vehicle tax credits that will help them better understand how to access the various tax incentives for the purchase of new and used electric vehicles available beginning January 1.  These FAQs include a link containing a list of clean vehicles that manufacturers have indicated to the IRS meet the requirements to claim the new clean vehicle tax credit beginning January 1, 2023. This list will be updated over the coming days and weeks so consumers looking to purchase a new clean vehicle in the new year should be sure to check it regularly.  
  • A notice on the “incremental cost” of vehicles eligible for the commercial clean vehicle tax credit. For vehicles under 14,000 pounds, this tax credit is the lesser of $7,500, 15% of a qualifying vehicle’s cost (30% if the vehicle is not gas- or diesel-powered), or the “incremental cost” of the vehicle relative to a solely gas- or diesel-powered vehicle of comparable size and use. Today’s notice clarifies the incremental cost in 2023 for commercial clean vehicles. 
  • A notice of intent to propose regulations on the tax credit for new clean vehicles. This includes definitions that will provide clarity to manufacturers and buyers around the changes that take effect automatically on January 1, such as Manufacturer’s Suggested Retail Price limits. Importantly, the notice specifies that a vehicle is considered to be “placed in service” for the purposes of the tax credit on the date the taxpayer takes possession of the vehicle, which may or may not be the same date as the purchase date. 

 

In addition to the above pieces of guidance, which taxpayers may rely on beginning January 1, Treasury also released a white paper on the anticipated direction of Treasury and the IRS’s upcoming proposed guidance on the critical minerals and battery components requirements and the process for determining whether vehicles qualify under these requirements. While this preliminary information is not proposed guidance, it will help manufacturers prepare to be able to identify vehicles eligible for the tax credit when the new requirements go into effect after Treasury and the IRS issue a Notice of Proposed Rulemaking in March. This paper reflects months of working through significant complexities and consulting with technical experts across the federal government on battery components and critical minerals. 

 

Background on Treasury’s work to implement the Inflation Reduction Act

Since the Inflation Reduction act was signed into law in August, Treasury has worked expeditiously to write the rules that will make real the promise of this legislation. Within days of the law’s enactment, Treasury issued guidance on the electric vehicle tax credit and worked closely with DOT and DOE so consumers could easily find a list of eligible vehicles online.  

In the fall, Treasury held a series of stakeholder discussions with Secretary Yellen and Deputy Secretary Adeyemo to solicit input from key groups representing millions of workers, thousands of companies, and trillions of dollars in investment assets, as well as climate and environmental justice advocates, community-based organizations, and other key actors that are critical to the success of the Inflation Reduction Act. Treasury also hosted three formal consultations with Tribal governments and Alaska Native Corporations to hear first-hand from Tribal leaders about provisions in the law that directly affect Tribal nations. 

In addition, Treasury has solicited and is reviewing thousands of public comments from trade associations, carmakers, labor groups, state and municipal leaders, consumers, foreign governments, utility companies, climate advocacy organizations, think tanks, and more. 

Last month, Treasury published initial guidance on the prevailing wage and apprenticeship standards. Earlier this month, Treasury and the IRS set out key procedures for manufacturers and sellers of clean vehicles that are required in order for vehicles to be eligible for tax incentives. And last week, Treasury and the IRS issued guidance on the new Sustainable Aviation Fuel (SAF) credit and FAQs on energy efficient home improvement projects and residential clean energy property credits. 

For more information on Treasury’s implementation work around the Inflation Reduction Act, see below.  

 

August 16, 2022: Treasury Releases Initial Information on Electric Vehicle Tax Credit Under Newly Enacted Inflation Reduction Act  

October 5, 2022: Treasury Seeks Public Input on Implementing the Inflation Reduction Act’s Clean Energy Tax Incentives  

FACT SHEET: Treasury, IRS Open Public Comment on Implementing the Inflation Reduction Act’s Clean Energy Tax Incentives  

October 26, 2022: READOUT: Stakeholder Roundtable on Clean Power Generation and the Inflation Reduction Act  

October 27, 2022: READOUT: Stakeholder Roundtable on Climate Impact, Equity, and the Inflation Reduction Act  

FACT SHEET: Four ways the Inflation Reduction Act’s Tax Incentives Will Support Building an Equitable Clean Energy Economy  

October 31, 2022: READOUT: Stakeholder Roundtable on Investor Perspectives on Climate Change, Clean Energy, and the Inflation Reduction Act  

November 3, 2022: Treasury Seeks Public Input on Additional Clean Energy Tax Provisions of the Inflation Reduction Act  

November 4, 2022: READOUT: Stakeholder Roundtable on Clean Vehicles and the Inflation Reduction Act  

November 29, 2022: Treasury Announces Guidance on Inflation Reduction Act’s Strong Labor Protections  

December 12, 2022: Treasury and IRS set out procedures for manufacturers, sellers of clean vehicles  

December 19, 2022: Treasury, IRS issue guidance on new Sustainable Aviation Fuel Credit 

December 22, 2022: IRS releases frequently asked questions about energy efficient home improvements and residential clean energy property credits