81 FR 11648 - Financial Crimes Enforcement Network; Withdrawal of Finding Regarding Banca Privada d'Andorra
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network Federal Register Volume 81, Issue 43 (March 4, 2016)
Financial Crimes Enforcement Network
Federal Register Volume 81, Issue 43 (March 4, 2016)
| Page Range | 11648-11649 | |
| FR Document | 2016-04767 |
[Federal Register Volume 81, Number 43 (Friday, March 4, 2016)] [Notices] [Pages 11648-11649] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-04767] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network Financial Crimes Enforcement Network; Withdrawal of Finding Regarding Banca Privada d'Andorra AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury. ACTION: Withdrawal of finding. ----------------------------------------------------------------------- SUMMARY: This document withdraws FinCEN's finding that Banca Privada d'Andorra (``BPA'') is a financial institution of primary money laundering concern, pursuant to Section 311 of the USA PATRIOT Act (``Section 311''), codified at 31 U.S.C. 5318A. Because of material subsequent developments that have mitigated the money laundering risks associated with BPA, FinCEN has determined that BPA is no longer a primary money laundering concern that warrants the implementation of a special measure under Section 311. Elsewhere in this issue of the Federal Register, FinCEN is publishing a withdrawal of the related notice of proposed rulemaking that would have imposed a special measure against BPA. DATES: The finding is withdrawn as of March 4, 2016. FOR FURTHER INFORMATION CONTACT: The FinCEN Resource Center at (800) 767-2825. SUPPLEMENTARY INFORMATION: I. Background On October 26, 2001, the President signed into law the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (``the USA PATRIOT Act''). Title III of the USA PATRIOT Act amends the anti- money laundering provisions of 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, 5316- 5332, to promote the prevention, detection, and prosecution of international money laundering and the financing of terrorism. Regulations implementing the BSA appear at 31 CFR Chapter X. The authority of the Secretary of the Treasury to administer the BSA and its implementing regulations has been delegated to the Director of FinCEN. Section 311 of the USA PATRIOT Act (``Section 311'') grants the Director of FinCEN the authority, upon finding that reasonable grounds exist for concluding that a foreign jurisdiction, foreign financial institution, class of transactions, or type of account is of ``primary money laundering concern,'' to require domestic financial institutions and financial agencies to take certain ``special measures'' to address the primary money laundering concern. The special measures enumerated under Section 311 are prophylactic safeguards that defend the U.S. financial system from money laundering and terrorist financing. FinCEN may impose one or more of these special measures in order to protect the U.S. financial system from these threats. To that end, special measures one through four, codified at 31 U.S.C. 5318A(b)(1)-(b)(4), impose additional recordkeeping, information collection, and information reporting requirements on covered U.S. financial institutions. The fifth special measure, codified at 31 U.S.C. 5318A(b)(5), allows the Director to prohibit or impose conditions on the opening or maintaining of correspondent or payable-through accounts by covered U.S. financial institutions. II. The Finding and Notice of Proposed Rulemaking On March 13, 2015, FinCEN provided notice in the Federal Register that it had found Banca Privada d'Andorra (``BPA''), a bank headquartered in Andorra, to be of primary money laundering concern.\1\ Based on the finding, FinCEN also published on March 13, 2015 a notice of proposed rulemaking (``NPRM'') proposing the imposition of the fifth special measure with respect to BPA, and invited public comment.\2\ Specifically, FinCEN proposed to prohibit covered financial institutions from establishing, maintaining, administering, or managing in the United States any correspondent account for, or on behalf of, BPA. FinCEN also proposed to require a covered financial institution to apply special due diligence to all of its foreign correspondent accounts that is reasonably designed to guard against processing transactions involving BPA. Among other things, covered financial institutions would have been required to notify those foreign correspondent account holders that the covered financial institutions know or have reason to know provide services to BPA that such correspondents may not provide BPA with access to the correspondent account maintained at the covered financial institution. --------------------------------------------------------------------------- \1\ 80 FR 13464 (Mar. 13, 2015). \2\ 80 FR 13304 (Mar. 13, 2015) (RIN 1506-AB30). FinCEN publicly announced the finding and NPRM on March 10, 2015. --------------------------------------------------------------------------- III. Subsequent Developments Significant developments regarding BPA have occurred since FinCEN announced its finding and related NPRM regarding BPA, as described below. As a result, BPA is no longer operating as a financial institution that poses a money laundering threat to the U.S. financial system. On March 11, 2015, the Institut Nacional Andorr[agrave] de Finances (``INAF''), the Andorran regulator and supervisor of financial institutions, appointed two INAF representatives to oversee BPA's operations. On March 12, 2015, the INAF suspended the authority of BPA's board of directors, the chief executive officer and two other senior managers and appointed special administrators to assume full control of BPA. On March 13, 2015, Andorran law enforcement arrested BPA's chief executive officer in Andorra on suspicion of money laundering. The next month, in April 2015, the Andorran parliament enacted a law regarding the restructuring and resolution of banks, which created a new government agency, Ag[egrave]ncia Estatal de Resoluci[oacute] d'Entitats Banc[agrave]ries (``AREB''), for that purpose. On April 27, 2015, AREB took over control of BPA.\3\ In June 2015, AREB approved a resolution plan for BPA, under which the bank's ``good'' and ``bad'' assets, liabilities, and clients would be separated. Under the resolution plan, the ``good'' assets, liabilities, and clients are to be transferred to a bridge bank, and the bridge bank sold.\4\ In July 2015, AREB announced the creation of the bridge bank, named Vall Banc, to receive the transfer of BPA's legitimate assets, liabilities, and clients. Vall Banc is wholly-owned by AREB, is registered with the INAF, and is supervised by [[Page 11649]] Andorran banking supervisory authorities. Vall Banc will not employ the high-level BPA managers described in FinCEN's Notice of Finding. In addition, any other person who has been or may be identified as related to the issues described in the Notice of Finding will not be employed at Vall Banc. --------------------------------------------------------------------------- \3\ Press Release, AREB, AREB Assumes the Tutelage of BPA, April 27, 2015, (http://areb.ad/images/areb/comunicats/27042015_AREB_ENG.pdf.) \4\ Press Release, AREB, AREB Will Create a `Good Bank' with Legitimate Assets and Liabilities Segregated from BPA, June 15, 2015, (http://areb.ad/images/areb/comunicats/15062015_AREB_ENG.pdf.) --------------------------------------------------------------------------- After the good assets, liabilities, and clients are transferred from BPA to Vall Banc, BPA will remain under the control of AREB. FinCEN understands that BPA will not be reactivated as an operational financial institution at any point except to facilitate the finalization of the resolution process. AREB, in coordination with other authorities in Andorra, ultimately intends to liquidate BPA following the resolution of judicial proceedings in Andorra and other jurisdictions. IV. Withdrawal of the Finding Because of these subsequent developments, BPA no longer operates in a manner that poses a money laundering threat to the U.S. financial system. FinCEN has determined that the steps taken by the authorities in Andorra sufficiently protect the U.S. financial system from the money laundering risks previously associated with BPA. FinCEN therefore has determined that BPA no longer is a primary money laundering concern and will not impose any special measures under Section 311 with respect to BPA. For these reasons, FinCEN hereby withdraws its finding that BPA is of primary money laundering concern published on March 13, 2015, and announced on March 10, 2015. Jamal El-Hindi, Deputy Director, Financial Crimes Enforcement Network. [FR Doc. 2016-04767 Filed 3-3-16; 8:45 am] BILLING CODE 4810-02-P
![11648 Federal Register / Vol. 81, No. 43 / Friday, March 4, 2016 / Notices
for NSFHP grants, project selection of international money laundering and foreign correspondent accounts that is
criteria, application requirements and the financing of terrorism. Regulations reasonably designed to guard against
the deadline for submitting implementing the BSA appear at 31 CFR processing transactions involving BPA.
applications. Chapter X. The authority of the Among other things, covered financial
Authority: The Paperwork Reduction Act Secretary of the Treasury to administer institutions would have been required
of 1995; 44 U.S.C. Chapter 35, as amended; the BSA and its implementing to notify those foreign correspondent
and 49 CFR 1:48. regulations has been delegated to the account holders that the covered
Issued in Washington, DC, on February 26,
Director of FinCEN. financial institutions know or have
2016. Section 311 of the USA PATRIOT Act reason to know provide services to BPA
(‘‘Section 311’’) grants the Director of that such correspondents may not
John Augustine,
FinCEN the authority, upon finding that provide BPA with access to the
Director, Office of Infrastructure and
reasonable grounds exist for concluding correspondent account maintained at
Innovative Finance.
that a foreign jurisdiction, foreign the covered financial institution.
[FR Doc. 2016–04802 Filed 3–3–16; 8:45 am]
financial institution, class of
BILLING CODE 4910–9X–P
transactions, or type of account is of III. Subsequent Developments
‘‘primary money laundering concern,’’ Significant developments regarding
to require domestic financial BPA have occurred since FinCEN
DEPARTMENT OF THE TREASURY institutions and financial agencies to announced its finding and related
take certain ‘‘special measures’’ to NPRM regarding BPA, as described
Financial Crimes Enforcement Network address the primary money laundering below. As a result, BPA is no longer
Financial Crimes Enforcement concern. The special measures operating as a financial institution that
Network; Withdrawal of Finding enumerated under Section 311 are poses a money laundering threat to the
Regarding Banca Privada d’Andorra prophylactic safeguards that defend the U.S. financial system.
U.S. financial system from money On March 11, 2015, the Institut
AGENCY: Financial Crimes Enforcement laundering and terrorist financing. Nacional Andorrà de Finances
Network (‘‘FinCEN’’), Treasury. FinCEN may impose one or more of (‘‘INAF’’), the Andorran regulator and
ACTION: Withdrawal of finding. these special measures in order to supervisor of financial institutions,
protect the U.S. financial system from appointed two INAF representatives to
SUMMARY: This document withdraws these threats. To that end, special oversee BPA’s operations. On March 12,
FinCEN’s finding that Banca Privada measures one through four, codified at 2015, the INAF suspended the authority
d’Andorra (‘‘BPA’’) is a financial 31 U.S.C. 5318A(b)(1)–(b)(4), impose of BPA’s board of directors, the chief
institution of primary money laundering additional recordkeeping, information executive officer and two other senior
concern, pursuant to Section 311 of the collection, and information reporting managers and appointed special
USA PATRIOT Act (‘‘Section 311’’), requirements on covered U.S. financial administrators to assume full control of
codified at 31 U.S.C. 5318A. Because of institutions. The fifth special measure, BPA. On March 13, 2015, Andorran law
material subsequent developments that codified at 31 U.S.C. 5318A(b)(5), enforcement arrested BPA’s chief
have mitigated the money laundering allows the Director to prohibit or executive officer in Andorra on
risks associated with BPA, FinCEN has impose conditions on the opening or suspicion of money laundering.
determined that BPA is no longer a maintaining of correspondent or The next month, in April 2015, the
primary money laundering concern that payable-through accounts by covered Andorran parliament enacted a law
warrants the implementation of a U.S. financial institutions. regarding the restructuring and
special measure under Section 311. resolution of banks, which created a
Elsewhere in this issue of the Federal II. The Finding and Notice of Proposed new government agency, Agència
Register, FinCEN is publishing a Rulemaking Estatal de Resolució d’Entitats Bancàries
withdrawal of the related notice of On March 13, 2015, FinCEN provided (‘‘AREB’’), for that purpose. On April
proposed rulemaking that would have notice in the Federal Register that it had 27, 2015, AREB took over control of
imposed a special measure against BPA. found Banca Privada d’Andorra BPA.3 In June 2015, AREB approved a
DATES: The finding is withdrawn as of (‘‘BPA’’), a bank headquartered in resolution plan for BPA, under which
March 4, 2016. Andorra, to be of primary money the bank’s ‘‘good’’ and ‘‘bad’’ assets,
FOR FURTHER INFORMATION CONTACT: The laundering concern.1 Based on the liabilities, and clients would be
FinCEN Resource Center at (800) 767– finding, FinCEN also published on separated. Under the resolution plan,
2825. March 13, 2015 a notice of proposed the ‘‘good’’ assets, liabilities, and clients
rulemaking (‘‘NPRM’’) proposing the are to be transferred to a bridge bank,
SUPPLEMENTARY INFORMATION:
imposition of the fifth special measure and the bridge bank sold.4 In July 2015,
I. Background with respect to BPA, and invited public AREB announced the creation of the
comment.2 Specifically, FinCEN bridge bank, named Vall Banc, to
On October 26, 2001, the President
proposed to prohibit covered financial receive the transfer of BPA’s legitimate
signed into law the Uniting and
institutions from establishing, assets, liabilities, and clients. Vall Banc
Strengthening America by Providing
maintaining, administering, or is wholly-owned by AREB, is registered
Appropriate Tools Required to Intercept
managing in the United States any with the INAF, and is supervised by
and Obstruct Terrorism Act of 2001,
correspondent account for, or on behalf
Public Law 107–56 (‘‘the USA PATRIOT
jstallworth on DSK7TPTVN1PROD with NOTICES
of, BPA. FinCEN also proposed to 3 Press Release, AREB, AREB Assumes the
Act’’). Title III of the USA PATRIOT Act Tutelage of BPA, April 27, 2015, (http://areb.ad/
require a covered financial institution to
amends the anti-money laundering images/areb/comunicats/27042015_AREB_
apply special due diligence to all of its
provisions of the Bank Secrecy Act ENG.pdf.)
4 Press Release, AREB, AREB Will Create a ‘Good
(‘‘BSA’’), codified at 12 U.S.C. 1829b, 12 1 80
FR 13464 (Mar. 13, 2015). Bank’ with Legitimate Assets and Liabilities
U.S.C. 1951–1959, and 31 U.S.C. 5311– 2 80
FR 13304 (Mar. 13, 2015) (RIN 1506–AB30). Segregated from BPA, June 15, 2015, (http://
5314, 5316–5332, to promote the FinCEN publicly announced the finding and NPRM areb.ad/images/areb/comunicats/15062015_AREB_
prevention, detection, and prosecution on March 10, 2015. ENG.pdf.)
VerDate Sep<11>2014 15:22 Mar 03, 2016 Jkt 238001 PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 E:\FR\FM\04MRN1.SGM 04MRN1](https://thefederalregister.org/doc/81_FR_11691/page/1.svg)
![Federal Register / Vol. 81, No. 43 / Friday, March 4, 2016 / Notices 11649
Andorran banking supervisory Program. In order to assist the Secretary the data collected by the Secretary; (3)
authorities. Vall Banc will not employ with the required report, Treasury an evaluation of whether any aspects of
the high-level BPA managers described requests that insurers submit certain the Program have the effect of
in FinCEN’s Notice of Finding. In insurance data and information discouraging or impeding insurers from
addition, any other person who has regarding their participation in the providing commercial property casualty
been or may be identified as related to Program. insurance coverage or coverage for acts
the issues described in the Notice of DATES: Data must be submitted not later of terrorism; (4) an evaluation of the
Finding will not be employed at Vall than April 30, 2016. impact of the Program on workers’
Banc. compensation insurers; and (5) in the
ADDRESSES: Participating insurers may
After the good assets, liabilities, and case of the data collected by the
submit the requested data and
clients are transferred from BPA to Vall Secretary regarding premiums earned on
information after registration at a Web
Banc, BPA will remain under the insurance coverage for terrorism losses,
portal that has been established for this
control of AREB. FinCEN understands an estimate of the total amount earned
data collection. A link to the Web site
that BPA will not be reactivated as an by insurers since January 1, 2003. The
where participating insurers can
operational financial institution at any initial report under this requirement is
commence the registration process can
point except to facilitate the finalization to be submitted not later than June 30,
be found at https://www.treasury.gov/
of the resolution process. AREB, in 2016.
resource-center/fin-mkts/Pages/
coordination with other authorities in program.aspx. II. Solicitation for Data
Andorra, ultimately intends to liquidate
BPA following the resolution of judicial FOR FURTHER INFORMATION CONTACT: Treasury must start collecting data for
proceedings in Andorra and other Richard Ifft, Senior Insurance the initial report required under section
jurisdictions. Regulatory Policy Analyst, Federal 111 before Treasury is able to review
Insurance Office, Room 1410, comments on proposed regulations
IV. Withdrawal of the Finding Department of the Treasury, 1500 concerning data collection, including
Because of these subsequent Pennsylvania Avenue NW., Washington, whether it has properly estimated the
developments, BPA no longer operates DC 20220, at (202) 622–2922 (this is not level of burden that this collection
in a manner that poses a money a toll-free number), or Kevin Meehan, imposes. Based on interaction with
laundering threat to the U.S. financial Policy Advisor, Federal Insurance stakeholders, Treasury anticipates that
system. FinCEN has determined that the Office, 202–622–7009 (not a toll free most participating insurers will be able
steps taken by the authorities in number). Persons who have difficulty to respond to this solicitation with all of
Andorra sufficiently protect the U.S. hearing or speaking may access these the requested data in that the data
financial system from the money numbers via TTY by calling the toll-free requested, and the form in which the
laundering risks previously associated Federal Relay Service at (800) 877–8339. data is requested, conforms to industry’s
with BPA. FinCEN therefore has SUPPLEMENTARY INFORMATION: current practice. In order to avoid
determined that BPA no longer is a inadvertently imposing an
I. Background unanticipated level of burden on
primary money laundering concern and
will not impose any special measures Section 111 directs the Secretary, participating insurers without due
under Section 311 with respect to BPA. beginning in calendar year 2016, to consideration, Treasury is requesting,
For these reasons, FinCEN hereby ‘‘require insurers participating in the and not requiring, that participating
withdraws its finding that BPA is of Program to submit to the Secretary such insurers submit the data enumerated in
primary money laundering concern information regarding insurance the section 111 data collection
published on March 13, 2015, and coverage for terrorism losses of such authorized under this emergency
announced on March 10, 2015. insurers as the Secretary considers approval. Making this collection
appropriate to analyze the effectiveness voluntary also identifies to all
Jamal El-Hindi, of the Program[.]’’ This information and participating insurers the types of
Deputy Director, Financial Crimes data includes information regarding: (1) information that Treasury will likely
Enforcement Network. Lines of insurance with exposure to seek in future collections under section
[FR Doc. 2016–04767 Filed 3–3–16; 8:45 am] such losses; (2) premiums earned on 111 and provides time to the extent
BILLING CODE 4810–02–P such coverage; (3) geographical location necessary for insurers to make any
of exposures; (4) pricing of such adjustments to ease the burden of
coverage; (5) the take-up rate for such compliance with such collections.
DEPARTMENT OF THE TREASURY coverage; (6) the amount of private Treasury, through an insurance
reinsurance for acts of terrorism statistical aggregator, has established the
Study on the Overall Effectiveness of purchased; and (7) such other matters as web portal identified above, through
the Terrorism Risk Insurance Program the Secretary considers appropriate. which insurers will be able to submit
AGENCY: Departmental Offices, U.S. Treasury plans to issue a Notice of the requested data. All information
Department of the Treasury. Proposed Rulemaking proposing rules submitted via the web portal is subject
ACTION: Request for data and that expand upon this requirement for to the confidentiality and data
information. the submission of data by participating protection provisions of section 111 as
insurers in the near future. well as to section 552 of title 5, United
SUMMARY: Section 111 of the Terrorism Section 111 also requires the States Code, including any exceptions
Risk Insurance Program Reauthorization Secretary to ‘‘submit a report to the thereunder. In accordance with the
jstallworth on DSK7TPTVN1PROD with NOTICES
Act of 2015 (Reauthorization Act) Committee on Financial Services of the Paperwork Reduction Act, (44 U.S.C
requires the Secretary of the Treasury House of Representatives and the 3501 et seq.), the information collected
(Secretary) to submit a report to the Committee on Banking, Housing, and through the web portal has been
Congress addressing the overall Urban Affairs of the Senate’’ that approved by the Office of Management
effectiveness of the Terrorism Risk includes: (1) An analysis of the overall and Budget (OMB) under control
Insurance Program (Program) and trends effectiveness of the Program; (2) an number 1505–0253. Treasury does not
the Secretary has observed within the evaluation of any changes or trends in anticipate further requests for
VerDate Sep<11>2014 15:22 Mar 03, 2016 Jkt 238001 PO 00000 Frm 00142 Fmt 4703 Sfmt 4703 E:\FR\FM\04MRN1.SGM 04MRN1](https://thefederalregister.org/doc/81_FR_11691/page/2.svg)
Document Created: 2018-02-02 15:05:26
Document Modified: 2018-02-02 15:05:26
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Withdrawal of finding. | |
| Dates | The finding is withdrawn as of March 4, 2016. | |
| Contact | The FinCEN Resource Center at (800) 767-2825. | |
| FR Citation | 81 FR 11648 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR