81 FR 9139 - Financial Crimes Enforcement Network; Withdrawal of Finding and Notice of Proposed Rulemaking Regarding Liberty Reserve S.A.

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network

Federal Register Volume 81, Issue 36 (February 24, 2016)

Page Range		9139-9139
FR Document		2016-03830

This document withdraws FinCEN's finding that Liberty Reserve S.A. (``Liberty Reserve'') is a financial institution of primary money laundering concern and the related notice of proposed rulemaking seeking to impose the fifth special measure regarding Liberty Reserve, 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 Liberty Reserve, FinCEN has determined that Liberty Reserve is no longer a primary money laundering concern that warrants the implementation of a special measure under Section 311.

Federal Register, Volume 81 Issue 36 (Wednesday, February 24, 2016)

[Federal Register Volume 81, Number 36 (Wednesday, February 24, 2016)]
[Proposed Rules]
[Page 9139]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-03830]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Part 1010

RIN 1506-AB23


Financial Crimes Enforcement Network; Withdrawal of Finding and 
Notice of Proposed Rulemaking Regarding Liberty Reserve S.A.

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

ACTION: Withdrawal of finding and notice of proposed rulemaking.

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SUMMARY: This document withdraws FinCEN's finding that Liberty Reserve 
S.A. (``Liberty Reserve'') is a financial institution of primary money 
laundering concern and the related notice of proposed rulemaking 
seeking to impose the fifth special measure regarding Liberty Reserve, 
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 Liberty Reserve, FinCEN has 
determined that Liberty Reserve is no longer a primary money laundering 
concern that warrants the implementation of a special measure under 
Section 311.

DATES: The finding and notice of proposed rulemaking are withdrawn as 
of February 24, 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) through 
(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 
Liberty Reserve S.A. (``Liberty Reserve'') was a financial institution 
of primary money laundering concern. FinCEN published a proposed rule 
proposing the imposition of the fifth special measure on June 6, 2013, 
pursuant to the authority under 31 U.S.C. 5318A.\1\
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    \1\ See 78 FR 34008 (June 6, 2013) (RIN 1506-AB23).
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B. Subsequent Developments

    Since FinCEN's finding and related NPRM regarding Liberty Reserve, 
material facts regarding the circumstances of the proposed rulemaking 
have changed. Liberty Reserve was a web-based money transfer system 
when FinCEN published notice of its finding and NPRM on June 6, 2013. 
The Department of Justice announced on May 28, 2013 that it had charged 
seven of Liberty Reserve's principals and employees with money-
laundering, seized five domain names, including ``LibertyReserve.com,'' 
and seized or restricted the activity of 45 bank accounts related to 
Liberty Reserve. In light of these actions, Liberty Reserve has since 
ceased to function as a financial institution.

III. Withdrawal of the Finding and NPRM

    For the reasons set forth above, FinCEN hereby withdraws its 
finding that Liberty Reserve is of primary money laundering concern and 
the related NPRM published on June 6, 2013, seeking to impose the fifth 
special measure regarding Liberty Reserve.

Jamal El-Hindi,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2016-03830 Filed 2-23-16; 8:45 am]
 BILLING CODE 4810-02-P

Federal Register / Vol. 81, No. 36 / Wednesday, February 24, 2016 / Proposed Rules 9139

For the Commission. the BSA and its implementing of its finding and NPRM on June 6,
Cynthia G. Pierre, regulations has been delegated to the 2013. The Department of Justice
Chief Operating Officer. Director of FinCEN. announced on May 28, 2013 that it had
[FR Doc. 2016–03530 Filed 2–23–16; 8:45 am] Section 311 of the USA PATRIOT Act charged seven of Liberty Reserve’s
BILLING CODE 6570–01–P
(‘‘Section 311’’) grants the Director of principals and employees with money-
FinCEN the authority, upon finding that laundering, seized five domain names,
reasonable grounds exist for concluding including ‘‘LibertyReserve.com,’’ and
that a foreign jurisdiction, foreign seized or restricted the activity of 45
DEPARTMENT OF THE TREASURY
financial institution, class of bank accounts related to Liberty
Financial Crimes Enforcement Network transactions, or type of account is of Reserve. In light of these actions, Liberty
‘‘primary money laundering concern,’’ Reserve has since ceased to function as
31 CFR Part 1010 to require domestic financial a financial institution.
institutions and financial agencies to
RIN 1506–AB23 take certain ‘‘special measures’’ to III. Withdrawal of the Finding and
address the primary money laundering NPRM
Financial Crimes Enforcement concern. The special measures For the reasons set forth above,
Network; Withdrawal of Finding and enumerated under Section 311 are FinCEN hereby withdraws its finding
Notice of Proposed Rulemaking prophylactic safeguards that defend the that Liberty Reserve is of primary
Regarding Liberty Reserve S.A. U.S. financial system from money money laundering concern and the
AGENCY: Financial Crimes Enforcement laundering and terrorist financing. related NPRM published on June 6,
Network (‘‘FinCEN’’), Treasury. FinCEN may impose one or more of 2013, seeking to impose the fifth special
ACTION: Withdrawal of finding and these special measures in order to measure regarding Liberty Reserve.
notice of proposed rulemaking. protect the U.S. financial system from
these threats. To that end, special Jamal El-Hindi,
SUMMARY: This document withdraws measures one through four, codified at Deputy Director, Financial Crimes
FinCEN’s finding that Liberty Reserve 31 U.S.C. 5318A(b)(1) through (4), Enforcement Network.
S.A. (‘‘Liberty Reserve’’) is a financial impose additional recordkeeping, [FR Doc. 2016–03830 Filed 2–23–16; 8:45 am]
institution of primary money laundering information collection, and information BILLING CODE 4810–02–P
concern and the related notice of reporting requirements on covered U.S.
proposed rulemaking seeking to impose financial institutions. The fifth special
the fifth special measure regarding measure, codified at 31 U.S.C. DEPARTMENT OF THE INTERIOR
Liberty Reserve, pursuant to section 311 5318A(b)(5), allows the Director to
of the USA PATRIOT Act (‘‘Section prohibit or impose conditions on the National Park Service
311’’). Because of material subsequent opening or maintaining of
developments that have mitigated the correspondent or payable-through 36 CFR Part 7
money laundering risks associated with accounts for the identified institution by
U.S. financial institutions. [NPS–GOGA–19691; PX.XGOGA1604.00.1]
Liberty Reserve, FinCEN has determined
that Liberty Reserve is no longer a II. The Finding and Notice of Proposed RIN 1024–AE16
primary money laundering concern that Rulemaking
warrants the implementation of a Special Regulations, Areas of the
special measure under Section 311. A. The Finding and Notice of Proposed National Park Service, Golden Gate
DATES: The finding and notice of
Rulemaking National Recreation Area, Dog
proposed rulemaking are withdrawn as Based upon review and analysis of Management
of February 24, 2016. relevant information, consultations with
AGENCY: National Park Service, Interior.
FOR FURTHER INFORMATION CONTACT: The relevant Federal agencies and
departments, and after consideration of ACTION: Proposed rule.
FinCEN Resource Center at (800) 767–
2825. the factors enumerated in Section 311, SUMMARY: The National Park Service
the Director of FinCEN found that proposes to amend its special
SUPPLEMENTARY INFORMATION:
reasonable grounds existed for regulations for Golden Gate National
I. Background concluding that Liberty Reserve S.A. Recreation Area regarding dog walking.
(‘‘Liberty Reserve’’) was a financial
On October 26, 2001, the President The rule would apply to 22 locations
institution of primary money laundering
signed into law the Uniting and within the park and would designate
concern. FinCEN published a proposed
Strengthening America by Providing areas within these locations for on-leash
rule proposing the imposition of the
Appropriate Tools Required to Intercept and regulated (i.e., voice and sight
fifth special measure on June 6, 2013,
and Obstruct Terrorism Act of 2001, control) off-leash dog walking. Areas in
pursuant to the authority under 31
Public Law 107–56 (the ‘‘USA PATRIOT these 22 locations that are not
U.S.C. 5318A.1
Act’’). Title III of the USA PATRIOT Act designated as open to dogs would be
amends the anti-money laundering B. Subsequent Developments closed to dogs, except for service
provisions of the Bank Secrecy Act Since FinCEN’s finding and related animals in accordance with National
(BSA), codified at 12 U.S.C. 1829b, 12 Park Service regulations. The rule
mstockstill on DSK4VPTVN1PROD with PROPOSALS

NPRM regarding Liberty Reserve,
U.S.C. 1951–1959, and 31 U.S.C. 5311– material facts regarding the would modify and, in some
5314, 5316–5332, to promote the circumstances of the proposed circumstances, relax the National Park
prevention, detection, and prosecution rulemaking have changed. Liberty System-wide pet regulations for these 22
of international money laundering and Reserve was a web-based money transfer locations. To the extent not modified by
the financing of terrorism. Regulations system when FinCEN published notice this rule, dog walking in all NPS-
implementing the BSA appear at 31 CFR managed areas within the park would
chapter X. The authority of the 1 See 78 FR 34008 (June 6, 2013) (RIN 1506– continue to be regulated under National
Secretary of the Treasury to administer AB23). Park System-wide pet regulations.

VerDate Sep<11>2014 17:26 Feb 23, 2016 Jkt 238001 PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 E:\FR\FM\24FEP1.SGM 24FEP1

Document Created: 2016-02-23 23:55:53
Document Modified: 2016-02-23 23:55:53

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		Proposed Rules
Action		Withdrawal of finding and notice of proposed rulemaking.
Dates		The finding and notice of proposed rulemaking are withdrawn as of February 24, 2016.
Contact		The FinCEN Resource Center at (800) 767-2825.
FR Citation		81 FR 9139
RIN Number		1506-AB23

81 FR 9139 - Financial Crimes Enforcement Network; Withdrawal of Finding and Notice of Proposed Rulemaking Regarding Liberty Reserve S.A.

DEPARTMENT OF THE TREASURYFinancial Crimes Enforcement Network

Federal Register Volume 81, Issue 36 (February 24, 2016)

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network