80 FR 60575 - Financial Crimes Enforcement Network; Withdrawal of the Proposed Rulemaking Against Lebanese Canadian Bank SAL

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network

Federal Register Volume 80, Issue 194 (October 7, 2015)

This document withdraws FinCEN's February 17, 2011, proposed rulemaking to impose the fifth special measure against Lebanese Canadian Bank SAL (``LCB'') as a financial institution of primary money laundering concern, pursuant to the United States Code (U.S.C.).

[Federal Register Volume 80, Number 194 (Wednesday, October 7, 2015)]
[Proposed Rules]
[Pages 60575-60576]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-24912]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Part 1010

RIN 1506-AB11


Financial Crimes Enforcement Network; Withdrawal of the Proposed 
Rulemaking Against Lebanese Canadian Bank SAL

AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.

ACTION: Proposed rule; withdrawal.

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SUMMARY: This document withdraws FinCEN's February 17, 2011, proposed 
rulemaking to impose the fifth special measure against Lebanese 
Canadian Bank SAL (``LCB'') as a financial institution of primary money 
laundering concern, pursuant to the United States Code (U.S.C.).

DATES: As of October 7, 2015 the proposed rule published February 17, 
2011, at 76 FR 9268, is withdrawn.

[[Page 60576]]


FOR FURTHER INFORMATION CONTACT: The FinCEN Resource Center at (800) 
767-2825.

SUPPLEMENTARY INFORMATION:

I. Background

    The Bank Secrecy Act (``BSA''), codified at 12 U.S.C. 1829b, 12 
U.S.C. 1951-1959, and 31 U.S.C. 5311-5314 and 5316-5332, promotes the 
prevention, detection, and prosecution of money laundering, tax 
evasion, the financing of terrorism, and other financial crimes. 
Regulations implementing the BSA appear at 31 CFR Chapter X. The 
authority of the Secretary of the Treasury (``the Secretary'') to 
administer the BSA and its implementing regulations has been delegated 
to the Director of FinCEN.
    Section 5318A of the BSA grants the Secretary authority, upon 
finding that reasonable grounds exist for concluding that a foreign 
jurisdiction, foreign financial institution, class of international 
transactions, or type of account is of ``primary money laundering 
concern,'' to require domestic financial institutions and domestic 
financial agencies to take certain ``special measures'' against the 
primary money laundering concern.

II. The Finding, Notice of Proposed Rulemaking, and Subsequent 
Developments

A. The Notice of Finding and Notice of Proposed Rulemaking

    Based upon review and analysis of relevant information, 
consultations with relevant Federal agencies and departments, and after 
consideration of the factors enumerated in section 311, the Director of 
FinCEN found that reasonable grounds existed for concluding that LCB 
was a financial institution of primary money laundering concern. FinCEN 
published a proposed rule proposing to impose the fifth special measure 
on February 17, 2011, pursuant to the authority under 31 U.S.C. 
5318A.\1\
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    \1\ See 76 FR 9268 (February 17, 2011, RIN 1506-AB11).
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B. Subsequent Developments

    Since FinCEN's notice of proposed rulemaking, material facts 
regarding the circumstances of the proposed rulemaking have changed. On 
September 20, 2011, the Lebanese central bank and monetary authority, 
with control over bank supervision and regulation, the Banque du Liban 
(BDL), revoked the banking license of LCB and delisted LCB from the 
list of banks published by BDL. LCB's former shareholders sold its 
assets and liabilities to the Societ[eacute] Generale de Banque au 
Liban SAL (SGBL). Because of the action taken by the Lebanese banking 
authorities and the liquidation of the LCB's assets, LCB no longer 
exists as a foreign financial institution. FinCEN will therefore not 
proceed with the rule proposed on February 17, 2011.

III. Withdrawal of the Proposed Rule

    For the reasons set forth above, FinCEN hereby withdraws the 
February 17, 2011 proposed rule proposing to impose the fifth special 
measure authorized by 31 U.S.C. 5318A(b)(5) regarding LCB. FinCEN's 
withdrawal of the proposed rule does not acknowledge any remedial 
measure taken by LCB, but results from the fact that LCB no longer 
exists as a foreign financial institution due to the decision by its 
former shareholders to liquidate the bank and the revocation of its 
banking license.

Jennifer Shasky Calvery,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2015-24912 Filed 10-6-15; 8:45 am]
 BILLING CODE 4810-02-P