81 FR 14408 - Financial Crimes Enforcement Network; Withdrawal of Notice of Proposed Rulemaking Regarding JSC CredexBank

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network

Federal Register Volume 81, Issue 52 (March 17, 2016)

This document withdraws FinCEN's proposed rulemaking to impose the first and fifth special measure regarding JSC CredexBank (``Credex''), renamed JSC InterPayBank (``InterPay''), as 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 finding regarding Credex.

[Federal Register Volume 81, Number 52 (Thursday, March 17, 2016)]
[Proposed Rules]
[Pages 14408-14409]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-04413]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Part 1010

RIN 1506-AB19


Financial Crimes Enforcement Network; Withdrawal of Notice of 
Proposed Rulemaking Regarding JSC CredexBank

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

ACTION: Proposed rule; withdrawal.

-----------------------------------------------------------------------

SUMMARY: This document withdraws FinCEN's proposed rulemaking to impose 
the first and fifth special measure regarding JSC CredexBank 
(``Credex''), renamed JSC InterPayBank (``InterPay''), as 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 finding regarding Credex.

DATES: As of March 17, 2016 the proposed rule published May 30, 2012, 
at 77 FR 31794, is withdrawn.

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 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 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''), codified at 
31 U.S.C.

[[Page 14409]]

5318A), 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.\1\ FinCEN published a notice of proposed rulemaking 
proposing 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 31794 (May 30, 2012) (RIN 1506-AB19).
---------------------------------------------------------------------------

B. Subsequent Developments

    Since FinCEN's notice of proposed rulemaking 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. (accessed January 27, 2016). http://www.nbrb.by/engl/system/ex-banks.asp (accessed January 27, 2016).
---------------------------------------------------------------------------

III. Withdrawal of the Proposed Rule

    For the reasons set forth above, FinCEN hereby withdraws the May 
30, 2012 proposed rule proposing to impose the first and fifth special 
measure authorized by 31 U.S.C. 5318A(b)(5) regarding Credex/InterPay. 
FinCEN's withdrawal of the proposed rule 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. 2016-04413 Filed 3-16-16; 8:45 am]
BILLING CODE 4810-02-P