81 FR 14389 - Financial Crimes Enforcement Network; Withdrawal of Finding Regarding JSC CredexBank
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network Federal Register Volume 81, Issue 52 (March 17, 2016)
Financial Crimes Enforcement Network
Federal Register Volume 81, Issue 52 (March 17, 2016)
| Page Range | 14389-14390 | |
| FR Document | 2016-04412 |
[Federal Register Volume 81, Number 52 (Thursday, March 17, 2016)] [Rules and Regulations] [Pages 14389-14390] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-04412] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network 31 CFR Part 1010 RIN 1506-AB19 Financial Crimes Enforcement Network; Withdrawal of Finding Regarding JSC CredexBank AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury. ACTION: Withdrawal of finding. ----------------------------------------------------------------------- SUMMARY: This document withdraws FinCEN's finding that JSC CredexBank (``Credex''), renamed JSC InterPayBank (``InterPay''), is a financial institution of primary money laundering concern, pursuant to Section 311 of the USA PATRIOT Act (``Section 311''). Because of material subsequent developments that have mitigated the money laundering risks associated with Credex, FinCEN has determined that Credex 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 two special measures against Credex. DATES: The finding is withdrawn as of March 17, 2016.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,'' codified at 31 U.S.C. 5318A). 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)(1-4), 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 for the identified institution by U.S. financial institutions. II. The Finding and Notice of Proposed Rulemaking A. The 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 JSC CredexBank (``Credex'') was a financial institution of primary money laundering concern, as published in the Federal Register on May 25, 2012.\1\ FinCEN published a notice of proposed rulemaking proposing (``NPRM'') to impose the first and fifth special measures on May 30, 2012, pursuant to the authority under 31 U.S.C. 5318A.\2\ --------------------------------------------------------------------------- \1\ See 77 FR 31434 (May 25, 2012). \2\ See 77 FR 31795 (May 30, 2012) (RIN 1506-AB19). --------------------------------------------------------------------------- B. Subsequent Developments Since FinCEN's finding and related NPRM regarding Credex, material facts regarding the circumstances of the proposed rulemaking have changed. On May 8, 2015, the National Bank of the Republic of Belarus (``NBRB''), the Belarusian central bank and monetary authority with control over bank supervision and regulation, revoked the banking license of InterPay, the successor of Credex, and delisted InterPay from the list of banks published by the NBRB.\3\ In late January 2016, InterPay was also listed by the NBRB as being in the process of bankruptcy and liquidation.\4\ Because of the actions taken by the Belarusian banking authorities and the ongoing liquidation of InterPay's assets, InterPay no longer operates as a foreign financial institution. --------------------------------------------------------------------------- \3\ See Press Release, National Bank of the Republic of Belarus. About Revocation of the Banking License from `InterPayBank' Joint Stock Company. (May 8, 2015). http://www.nbrb.by/Press/?nId=101&l=en (accessed January 27, 2016); see also Press Release, National Bank of the Republic of Belarus. Register of Banking Licenses as at 27 January 2016. (January 27, 2016). http://www.nbrb.by/engl/system/register.asp (accessed January 27, 2016). \4\ See Press Release, National Bank of the Republic of Belarus. Information on Banks Under Bankruptcy or Liquidation in the Republic of Belarus as of 27.01.2016. (January 27, 2016). http://www.nbrb.by/engl/system/ex-banks.asp (accessed January 27, 2016). --------------------------------------------------------------------------- III. Withdrawal of the Finding For the reasons set forth above, FinCEN hereby withdraws its finding that Credex/InterPay is of primary [[Page 14390]] money laundering concern, published on May 25, 2012. FinCEN's withdrawal of the finding does not acknowledge any remedial measure taken by Credex/InterPay, but results from the fact that Credex/ InterPay no longer operates as a foreign financial institution. Jamal El-Hindi, Deputy Director, Financial Crimes Enforcement Network. [FR Doc. 2016-04412 Filed 3-16-16; 8:45 am] BILLING CODE 4810-02-P
![Federal Register / Vol. 81, No. 52 / Thursday, March 17, 2016 / Rules and Regulations 14389
injunctive relief and compensatory implementation of a special measure identified institution by U.S. financial
damages, including: under Section 311. Elsewhere in this institutions.
(1) Reinstatement with the same issue of the Federal Register, FinCEN is
II. The Finding and Notice of Proposed
seniority status that the employee publishing a withdrawal of the related
Rulemaking
would have had, but for the discharge notice of proposed rulemaking that
or discrimination; would have imposed two special A. The Finding and Notice of Proposed
(2) The amount of back pay, with measures against Credex. Rulemaking
interest; DATES: The finding is withdrawn as of Based upon review and analysis of
(3) Compensation for any special March 17, 2016. relevant information, consultations with
damages sustained as a result of the FOR FURTHER INFORMATION CONTACT: The relevant Federal agencies and
discharge or discrimination; and FinCEN Resource Center at (800) 767– departments, and after consideration of
(4) Litigation costs, expert witness 2825. the factors enumerated in Section 311,
fees, and reasonable attorney fees. the Director of FinCEN found that
(d) Within seven days after filing a SUPPLEMENTARY INFORMATION:
reasonable grounds existed for
complaint in federal court, a I. Background concluding that JSC CredexBank
complainant must file with OSHA, the (‘‘Credex’’) was a financial institution of
On October 26, 2001, the President
ALJ, or the ARB, depending on where primary money laundering concern, as
signed into law the Uniting and
the proceeding is pending, a copy of the published in the Federal Register on
Strengthening America by Providing
file-stamped complaint. In all cases, a May 25, 2012.1 FinCEN published a
Appropriate Tools Required to Intercept
copy of the complaint also must be notice of proposed rulemaking
and Obstruct Terrorism Act of 2001,
served on the OSHA official who issued proposing (‘‘NPRM’’) to impose the first
Public Law 107–56 (the ‘‘USA PATRIOT
the findings and/or preliminary order, and fifth special measures on May 30,
Act,’’ codified at 31 U.S.C. 5318A). Title
the Assistant Secretary, and the 2012, pursuant to the authority under 31
III of the USA PATRIOT Act amends the
Associate Solicitor, Division of Fair U.S.C. 5318A.2
anti-money laundering provisions of the
Labor Standards, U.S. Department of
Bank Secrecy Act (‘‘BSA’’), codified at B. Subsequent Developments
Labor.
12 U.S.C. 1829b, 12 U.S.C. 1951–1959,
and 31 U.S.C. 5311–5314, 5316–5332, to Since FinCEN’s finding and related
§ 1985.115 Special circumstances; waiver
of rules. promote the prevention, detection, and NPRM regarding Credex, material facts
prosecution of international money regarding the circumstances of the
In special circumstances not
laundering and the financing of proposed rulemaking have changed. On
contemplated by the provisions of these
terrorism. Regulations implementing the May 8, 2015, the National Bank of the
rules, or for good cause shown, the ALJ
BSA appear at 31 CFR chapter X. The Republic of Belarus (‘‘NBRB’’), the
or the ARB on review may, upon Belarusian central bank and monetary
application, after three days’ notice to authority of the Secretary of the
authority with control over bank
all parties, waive any rule or issue such Treasury to administer the BSA and its
supervision and regulation, revoked the
orders that justice or the administration implementing regulations has been
banking license of InterPay, the
of CFPA requires. delegated to the Director of FinCEN.
Section 311 of the USA PATRIOT Act successor of Credex, and delisted
[FR Doc. 2016–05415 Filed 3–16–16; 8:45 am] InterPay from the list of banks
(‘‘Section 311’’) grants the Director of
BILLING CODE 4510–26–P
FinCEN the authority, upon finding that published by the NBRB.3 In late January
reasonable grounds exist for concluding 2016, InterPay was also listed by the
that a foreign jurisdiction, foreign NBRB as being in the process of
DEPARTMENT OF THE TREASURY financial institution, class of bankruptcy and liquidation.4 Because of
transactions, or type of account is of the actions taken by the Belarusian
Financial Crimes Enforcement Network banking authorities and the ongoing
‘‘primary money laundering concern,’’
to require domestic financial liquidation of InterPay’s assets, InterPay
31 CFR Part 1010 no longer operates as a foreign financial
institutions and financial agencies to
RIN 1506–AB19 take certain ‘‘special measures’’ to institution.
address the primary money laundering III. Withdrawal of the Finding
Financial Crimes Enforcement concern. The special measures
Network; Withdrawal of Finding For the reasons set forth above,
enumerated under Section 311 are FinCEN hereby withdraws its finding
Regarding JSC CredexBank prophylactic safeguards that defend the that Credex/InterPay is of primary
AGENCY: Financial Crimes Enforcement U.S. financial system from money
Network (‘‘FinCEN’’), Treasury. laundering and terrorist financing. 1 See 77 FR 31434 (May 25, 2012).
ACTION: Withdrawal of finding. FinCEN may impose one or more of 2 See 77 FR 31795 (May 30, 2012) (RIN 1506–
these special measures in order to AB19).
SUMMARY: This document withdraws protect the U.S. financial system from 3 See Press Release, National Bank of the Republic
FinCEN’s finding that JSC CredexBank these threats. To that end, special of Belarus. About Revocation of the Banking
License from ‘InterPayBank’ Joint Stock Company.
(‘‘Credex’’), renamed JSC InterPayBank measures one through four, codified at (May 8, 2015). http://www.nbrb.by/Press/
(‘‘InterPay’’), is a financial institution of 31 U.S.C. 5318A(b)(1–4), impose ?nId=101&l=en (accessed January 27, 2016); see
primary money laundering concern, additional recordkeeping, information also Press Release, National Bank of the Republic
asabaliauskas on DSK3SPTVN1PROD with RULES
pursuant to Section 311 of the USA collection, and information reporting of Belarus. Register of Banking Licenses as at 27
January 2016. (January 27, 2016). http://
PATRIOT Act (‘‘Section 311’’). Because requirements on covered U.S. financial www.nbrb.by/engl/system/register.asp (accessed
of material subsequent developments institutions. The fifth special measure, January 27, 2016).
that have mitigated the money codified at 31 U.S.C. 5318A(b)(5), 4 See Press Release, National Bank of the Republic
laundering risks associated with Credex, allows the Director to prohibit or of Belarus. Information on Banks Under Bankruptcy
or Liquidation in the Republic of Belarus as of
FinCEN has determined that Credex is impose conditions on the opening or 27.01.2016. (January 27, 2016). http://www.nbrb.by/
no longer a primary money laundering maintaining of correspondent or engl/system/ex-banks.asp (accessed January 27,
concern that warrants the payable-through accounts for the 2016).
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![14390 Federal Register / Vol. 81, No. 52 / Thursday, March 17, 2016 / Rules and Regulations
money laundering concern, published Saint Lawrence Seaway Development Regulatory Evaluation
on May 25, 2012. FinCEN’s withdrawal Corporation, 180 Andrews Street, This regulation involves a foreign
of the finding does not acknowledge any Massena, New York 13662; 315/764– affairs function of the United States and
remedial measure taken by Credex/ 3200. therefore Executive Order 12866 does
InterPay, but results from the fact that not apply and evaluation under the
Credex/InterPay no longer operates as a SUPPLEMENTARY INFORMATION: The Saint
Lawrence Seaway Development Department of Transportation’s
foreign financial institution. Regulatory Policies and Procedures is
Corporation (SLSDC) and the St.
Jamal El-Hindi, Lawrence Seaway Management not required.
Deputy Director, Financial Crimes Corporation (SLSMC) of Canada, under Regulatory Flexibility Act
Enforcement Network. international agreement, jointly publish Determination
[FR Doc. 2016–04412 Filed 3–16–16; 8:45 am] and presently administer the St. I certify this regulation will not have
BILLING CODE 4810–02–P Lawrence Seaway Tariff of Tolls a significant economic impact on a
(Schedule of Fees and Charges in substantial number of small entities.
Canada) in their respective jurisdictions. The St. Lawrence Seaway Tariff of Tolls
DEPARTMENT OF TRANSPORTATION A Notice of Proposed Rulemaking was primarily relate to commercial users of
published in the Federal Register on the Seaway, the vast majority of whom
Saint Lawrence Seaway Development February 9, 2016. No comments were
Corporation are foreign vessel operators. Therefore,
received. The joint regulations will any resulting costs will be borne mostly
become effective in Canada on March by foreign vessels.
33 CFR Part 402 21, 2016. For consistency, because these
[Docket No. SLSDC 2016–0003] are joint regulations under international Environmental Impact
agreement, and to avoid confusion This regulation does not require an
RIN 2135–AA38
among users of the Seaway, the SLSDC environmental impact statement under
Tariff of Tolls finds that there is good cause to make the National Environmental Policy Act
the U.S. version of the amendments (49 U.S.C. 4321, et seq.) because it is not
AGENCY: Saint Lawrence Seaway effective on the same date. a major federal action significantly
Development Corporation, DOT. The Tariff sets forth the level of tolls affecting the quality of the human
ACTION: Final rule. assessed on all commodities and vessels environment.
SUMMARY: The Saint Lawrence Seaway transiting the facilities operated by the Federalism
Development Corporation (SLSDC) and SLSDC and the SLSMC. The SLSDC is
revising 33 CFR 402.12, ‘‘Schedule of The Corporation has analyzed this
the St. Lawrence Seaway Management rule under the principles and criteria in
Corporation (SLSMC) of Canada, under tolls’’, to reflect the fees and charges
levied by the SLSMC in Canada Executive Order 13132, dated August 4,
international agreement, jointly publish 1999, and has determined that this rule
and presently administer the St. beginning in the 2016 navigation
does not have sufficient federalism
Lawrence Seaway Tariff of Tolls in their season. With one exception, the changes
implications to warrant a Federalism
respective jurisdictions. The Tariff sets affect the tolls for commercial vessels
Assessment.
forth the level of tolls assessed on all and are applicable only in Canada. The
commodities and vessels transiting the collection of tolls by the SLSDC on Unfunded Mandates
facilities operated by the SLSDC and the commercial vessels transiting the U.S. The Corporation has analyzed this
SLSMC. The SLSDC is revising its locks is waived by law (33 U.S.C. rule under Title II of the Unfunded
regulations to reflect the fees and 988a(a)). Accordingly, no notice or Mandates Reform Act of 1995 (Pub. L.
charges levied by the SLSMC in Canada comment is necessary on these 104–4, 109 Stat. 48) and determined that
starting in the 2016 navigation season, amendments. it does not impose unfunded mandates
which are effective only in Canada. An The SLSDC is amending 33 CFR on State, local, and tribal governments
amendment to increase the minimum 402.12, ‘‘Schedule of tolls’’, to increase and the private sector requiring a
charge per lock for those vessels that are the minimum charge per vessel per lock written statement of economic and
not pleasure craft or subject in Canada for full or partial transit of the Seaway regulatory alternatives.
to tolls under items 1 and 2 of the Tariff from $26.92 to $27.46. This charge is for
for full or partial transit of the Seaway Paperwork Reduction Act
vessels that are not pleasure craft or
will apply in the U.S. (See subject in Canada to the tolls under This regulation has been analyzed
SUPPLEMENTARY INFORMATION.) items 1 and 2 of the Tariff. This increase under the Paperwork Reduction Act of
DATES: This rule will become effective is due to higher operating costs at the 1995 and does not contain new or
on March 21, 2016. locks. modified information collection
ADDRESSES: Docket: For access to the
requirements subject to the Office of
Regulatory Notices: Privacy Act: Management and Budget review.
docket to read background documents Anyone is able to search the electronic
or comments received, go to http:// form of all comments received into any List of Subjects in 33 CFR Part 402
www.Regulations.gov; or in person at of our dockets by the name of the Vessels, Waterways.
the Docket Management Facility; U.S. individual submitting the comment (or Accordingly, the Saint Lawrence
asabaliauskas on DSK3SPTVN1PROD with RULES
Department of Transportation, 1200 signing the comment, if submitted on
New Jersey Avenue SE., West Building Seaway Development Corporation is
behalf of an association, business, labor amending 33 CFR part 402, Tariff of
Ground Floor, Room W12–140, union, etc.). You may review DOT’s
Washington, DC 20590–001, between 9 Tolls, as follows:
complete Privacy Act Statement in the
a.m. and 5 p.m., Monday through Federal Register published on April 11, PART 402—TARIFF OF TOLLS
Friday, except Federal Holidays. 2000 (Volume 65, Number 70; Pages
FOR FURTHER INFORMATION CONTACT: 19477–78) or you may visit http:// ■ 1. The authority citation for part 402
Carrie Mann Lavigne, Chief Counsel, dms.dot.gov. continues to read as follows:
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Document Created: 2016-03-17 00:58:37
Document Modified: 2016-03-17 00:58:37
| 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 | Rules and Regulations | |
| Action | Withdrawal of finding. | |
| Dates | The finding is withdrawn as of March 17, 2016. | |
| Contact | The FinCEN Resource Center at (800) 767-2825. | |
| FR Citation | 81 FR 14389 | |
| RIN Number | 1506-AB19 |
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