Order Imposing Recordkeeping and Reporting Obligations on Certain U.S. Financial Institutions With Respect to Transactions Involving Halawi Exchange Co. as a Financial Institution of Primary Money Laundering Concern, 24601-24602 [2013-09786]

Download as PDF Federal Register / Vol. 78, No. 80 / Thursday, April 25, 2013 / Notices Dated: April 20, 2013. Jennifer Shasky Calvery, Director, Financial Crimes Enforcement Network. Part 3—Definitions tkelley on DSK3SPTVN1PROD with NOTICES2 Financial Institution’s Address, Incoming Correspondent Financial Institution’s Identifier, Incoming Correspondent Financial Institution’s Name, Incoming Correspondent Financial Institution’s Address, Outgoing Correspondent Financial Institution’s Identifier, Outgoing Correspondent Financial Institution’s Name, Outgoing Correspondent Financial Institution’s Address, Recipient’s Financial Institution’s Identifier, Recipient’s Financial Institution’s Name, Recipient’s Financial Institution’s Address, Recipient’s Account Number, Recipient’s Full Name, Recipient’s Address, Payment Instructions. AGENCY: [FR Doc. 2013–09779 Filed 4–23–13; 11:15 am] BILLING CODE 4810–02–P DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network Order Imposing Recordkeeping and Reporting Obligations on Certain U.S. Financial Institutions With Respect to Transactions Involving Halawi Exchange Co. as a Financial Institution of Primary Money Laundering Concern When used in this Order, where not otherwise distinctly defined or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in 31 CFR 1010.100. For purposes of this Order, the following terms shall have the following meanings: (1) Kassem Rmeiti & Co. For Exchange means all branches, offices, and subsidiaries of Kassem Rmeiti & Co. For Exchange operating in any jurisdiction, including the Rmaiti Group SAL in Lebanon and Societe Rmaiti SARL (STE Rmeiti) located in Benin specifically identified in the Finding. (2) Financial institution subject to the Order means a covered financial institution as defined in 31 CFR 1010.605(e)(1) or a money transmitter required to register under 31 CFR 1022.380. (3) Subsidiary means a company of which more than 50 percent of the voting stock or analogous equity interest is owned by Kassem Rmeiti & Co. For Exchange. (4) Transaction Reference Number means a reference number assigned to a transaction by the reporting financial institution. (5) Incoming Correspondent Financial Institution means the financial institution that sent the transmittal order to the reporting financial institution. (6) Outgoing Correspondent Financial Institution means the financial institution to which the reporting financial institution will send a transmittal order. (7) Payment Instructions means any information provided by the originator to be included in the transmittal order that describes the purpose of the transaction for the beneficiary. VerDate Mar<15>2010 18:10 Apr 24, 2013 Jkt 229001 Financial Crimes Enforcement Network, Treasury (‘‘FinCEN’’). ACTION: Order. The Director of FinCEN found on April 22, 2013, that Halawi Exchange Co. (‘‘Halawi Exchange’’) is a financial institution operating outside the United States that is of primary money laundering concern. The Director of FinCEN is issuing an order imposing certain recordkeeping and reporting obligations with respect to transactions involving Halawi Exchange (the ‘‘Order’’). DATES: The Order is effective on April 23, 2013. The Order will remain in effect until August 21, 2013. FOR FURTHER INFORMATION CONTACT: Regulatory Policy and Programs Division, FinCEN, (800) 949–2732. SUPPLEMENTARY INFORMATION: On April 22, 2013, the Director of FinCEN, pursuant to 31 U.S.C. 5318A, found Halawi Exchange to be a Financial Institution of Primary Money Laundering Concern (the ‘‘Finding’’). Notice of the Finding is published elsewhere in this issue of the Federal Register. Also published elsewhere in this issue of the Federal Register is a notice of proposed rulemaking (‘‘NPRM’’) proposing to apply the first and fifth special measures provided in 31 U.S.C. 5318A to any transaction or attempted transaction involving Halawi Exchange. The explanations and interpretations found in the NPRM are applicable to this Order to the extent that this Order imposes the same obligations proposed in the NPRM. This Order addresses FinCEN’s concern that Halawi Exchange may continue to be involved in transactions that present a substantial money laundering risk prior to any implementation of the proposed rule. This Order applies to covered financial institutions as defined in 31 SUMMARY: PO 00000 Frm 00009 Fmt 4701 Sfmt 4703 24601 CFR 1010.605(e)(1), and money transmitters that are required to register under 31 CFR 1022.380 (‘‘principal money transmitters’’), that are requested to process transactions involving Halawi Exchange. This Order requires covered financial institutions and principal money transmitters to report the information listed in Part 2 below in a comma separated value (‘‘CSV’’) file. Covered financial institutions and principal money transmitters are required to load the CSV file on an encrypted CD–ROM and mail the CD– ROM on or before the 15th day following the date of the transaction or the date the covered financial institution or principal money transmitter became aware of the attempted transaction to the Department of the Treasury, Financial Crimes Enforcement Network, Post Office Box 39, Vienna, Virginia 22183–0039 (Attn: 311 Reporting). Information of a contact person from whom FinCEN may obtain the encryption password should be enclosed in the mailing. To ease regulatory burden and as appropriate, reports filed as Bank Secrecy ActSuspicious Activity Reports (‘‘BSA– SARs’’) will be deemed to comply with this reporting requirement if filed within 15 days with all required information included in an attached CSV file and containing both in the narrative and field 35z the text ‘‘Halawi Exchange SM1 Report’’. As long as transactions or attempted transactions are reported within the fifteen-day requirement and the attached CSV file does not exceed one megabyte, multiple transactions may be reported on the same BSA–SAR. This Order imposes requirements with respect to entities identified as primary money laundering concern for their involvement in laundering the proceeds of narcotics traffickers and money launderers. Because advanced notice of this action could result in the loss of reporting information related to these entities, and section 311 of the USA PATRIOT Act authorizes the issuance of this Order without a prior notice of proposed rulemaking, it is found to be impracticable, unnecessary, and contrary to the public interest to comply with notice and public procedure under 5 U.S.C. 553(b). For these reasons, the Order is made effective before 30 days have passed after its publication date. See 5 U.S.C. 553(d). In addition, the provisions of the Regulatory Flexibility Act relating to initial and final regulatory flexibility analysis (5 U.S.C. 604) are not applicable to this Order because FinCEN was not required to publish a prior E:\FR\FM\25APN2.SGM 25APN2 24602 Federal Register / Vol. 78, No. 80 / Thursday, April 25, 2013 / Notices notice of proposed rulemaking under 5 U.S.C. 553 or any other law. By virtue of the authority contained in 31 U.S.C. 5318A and delegated to the Director of FinCEN, I hereby order, for the period from April 23, 2013 through August 21, 2013 that: tkelley on DSK3SPTVN1PROD with NOTICES2 Part 1—Requirements for financial institutions subject to this Order (1) Identifying Transactions or Attempted Transactions Involving Halawi Exchange Co. A financial institution subject to this Order is required to use its existing anti-money laundering programs and processes to identify transactions or attempted transactions involving Halawi Exchange Co. U.S. financial institutions generally apply some degree of due diligence in screening their transactions and accounts, often through the use of commercially available software such as that used for compliance with the economic sanctions programs administered by the Office of Foreign Assets Control of the Department of the Treasury. The identification required by this Order may be accomplished by relying on these same automated programs and filters used to identify sanctioned entities. (2) Reporting. A financial institution subject to this Order is required to take reasonable steps to collect and report to FinCEN on the following information with respect to any transaction or attempted transaction involving Halawi Exchange Co.: (i) The identity and address of the participants in the transaction or attempted transaction, including the identity of the originator and beneficiary of any funds transfer; (ii) the legal capacity in which Halawi Exchange Co. is acting with respect to the transaction or attempted transaction and, to the extent to which Halawi Exchange Co. is not acting on its own behalf, the customer or other person on whose behalf Halawi Exchange Co. is acting; and (iii) a description of the transaction or attempted transaction and its purpose. (3) When to file. A report required this Order shall be filed by the financial institution subject to the Order within fifteen business days following the day VerDate Mar<15>2010 18:10 Apr 24, 2013 Jkt 229001 when the financial institution subject to the Order engaged in the transaction or became aware of an attempted transaction. Willful failure to provide timely, accurate, and complete information in such reporting may constitute a violation of this Order subject to civil and criminal penalties under 31 U.S.C. 5321 and 5322. (4) Form of Reporting. A report required by this Order shall be filed on an encrypted CD–ROM sent to the Department of the Treasury, Financial Crimes Enforcement Network, Post Office Box 39, Vienna, Virginia 22183– 0039 (Attn: 311 Reporting) However, if a financial institution subject to this Order determines the reportable transaction to be suspicious, filing FinCEN Form 111 within 15 days with all required information included in an attached CSV file and containing both in the narrative and field 35z the text ‘‘Halawi Exchange SM1 Report’’ will be deemed to comply with this Order. The collection of information required by this Order is approved under OMB Control Number 1506–0065. An agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a valid OMB control number. Part 2—Specifications for Reporting. (1) Financial institutions subject to this Order shall place the required information in a CSV file in the following format: Transaction Reference Number, Payment Date, Instruction Date, Payment Amount, Transmittor’s Account Number, Transmittors’s Full Name, Transmittors’s Address, Transmittor’s Financial Institution’s Identifier, Transmittor’s Financial Institution’s Name, Transmittor’s Financial Institution’s Address, Incoming Correspondent Financial Institution’s Identifier, Incoming Correspondent Financial Institution’s Name, Incoming Correspondent Financial Institution’s Address, Outgoing Correspondent Financial Institution’s Identifier, Outgoing Correspondent Financial Institution’s Name, Outgoing Correspondent Financial Institution’s Address, PO 00000 Frm 00010 Fmt 4701 Sfmt 9990 Recipient’s Financial Institution’s Identifier, Recipient’s Financial Institution’s Name, Recipient’s Financial Institution’s Address, Recipient’s Account Number, Recipient’s Full Name, Recipient’s Address, Payment Instructions. Part 3—Definitions. When used in this Order, where not otherwise distinctly defined or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in 31 CFR 1010.100. For purposes of this Order, the following terms shall have the following meanings: (1) Halawi Exchange Co. means all branches, offices, and subsidiaries of Halawi Exchange Co. operating in any jurisdiction. (2) Financial institution subject to the Order means a covered financial institution as defined in 31 CFR 1010.605(e)(1) or a money transmitter required to register under 31 CFR 1022.380. (3) Subsidiary means a company of which more than 50 percent of the voting stock or analogous equity interest is owned by Halawi Exchange Co. (4) Transaction Reference Number means a reference number assigned to a transaction by the reporting financial institution. (5) Incoming Correspondent Financial Institution means the financial institution that sent the transmittal order to the reporting financial institution. (6) Outgoing Correspondent Financial Institution means the financial institution to which the reporting financial institution will send a transmittal order. (7) Payment Instructions means any information provided by the originator to be included in the transmittal order that describes the purpose of the transaction for the beneficiary. Dated: April 20, 2013. Jennifer Shasky Calvery, Director, Financial Crimes Enforcement Network. [FR Doc. 2013–09786 Filed 4–23–13; 11:15 am] BILLING CODE 4810–02–P E:\FR\FM\25APN2.SGM 25APN2

Agencies

[Federal Register Volume 78, Number 80 (Thursday, April 25, 2013)]
[Notices]
[Pages 24601-24602]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09786]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Order Imposing Recordkeeping and Reporting Obligations on Certain 
U.S. Financial Institutions With Respect to Transactions Involving 
Halawi Exchange Co. as a Financial Institution of Primary Money 
Laundering Concern

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

ACTION: Order.

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SUMMARY: The Director of FinCEN found on April 22, 2013, that Halawi 
Exchange Co. (``Halawi Exchange'') is a financial institution operating 
outside the United States that is of primary money laundering concern. 
The Director of FinCEN is issuing an order imposing certain 
recordkeeping and reporting obligations with respect to transactions 
involving Halawi Exchange (the ``Order'').

DATES: The Order is effective on April 23, 2013. The Order will remain 
in effect until August 21, 2013.

FOR FURTHER INFORMATION CONTACT: Regulatory Policy and Programs 
Division, FinCEN, (800) 949-2732.

SUPPLEMENTARY INFORMATION:  On April 22, 2013, the Director of FinCEN, 
pursuant to 31 U.S.C. 5318A, found Halawi Exchange to be a Financial 
Institution of Primary Money Laundering Concern (the ``Finding''). 
Notice of the Finding is published elsewhere in this issue of the 
Federal Register.
    Also published elsewhere in this issue of the Federal Register is a 
notice of proposed rulemaking (``NPRM'') proposing to apply the first 
and fifth special measures provided in 31 U.S.C. 5318A to any 
transaction or attempted transaction involving Halawi Exchange. The 
explanations and interpretations found in the NPRM are applicable to 
this Order to the extent that this Order imposes the same obligations 
proposed in the NPRM.
    This Order addresses FinCEN's concern that Halawi Exchange may 
continue to be involved in transactions that present a substantial 
money laundering risk prior to any implementation of the proposed rule.
    This Order applies to covered financial institutions as defined in 
31 CFR 1010.605(e)(1), and money transmitters that are required to 
register under 31 CFR 1022.380 (``principal money transmitters''), that 
are requested to process transactions involving Halawi Exchange. This 
Order requires covered financial institutions and principal money 
transmitters to report the information listed in Part 2 below in a 
comma separated value (``CSV'') file. Covered financial institutions 
and principal money transmitters are required to load the CSV file on 
an encrypted CD-ROM and mail the CD-ROM on or before the 15th day 
following the date of the transaction or the date the covered financial 
institution or principal money transmitter became aware of the 
attempted transaction to the Department of the Treasury, Financial 
Crimes Enforcement Network, Post Office Box 39, Vienna, Virginia 22183-
0039 (Attn: 311 Reporting). Information of a contact person from whom 
FinCEN may obtain the encryption password should be enclosed in the 
mailing. To ease regulatory burden and as appropriate, reports filed as 
Bank Secrecy Act-Suspicious Activity Reports (``BSA-SARs'') will be 
deemed to comply with this reporting requirement if filed within 15 
days with all required information included in an attached CSV file and 
containing both in the narrative and field 35z the text ``Halawi 
Exchange SM1 Report''. As long as transactions or attempted 
transactions are reported within the fifteen-day requirement and the 
attached CSV file does not exceed one megabyte, multiple transactions 
may be reported on the same BSA-SAR.
    This Order imposes requirements with respect to entities identified 
as primary money laundering concern for their involvement in laundering 
the proceeds of narcotics traffickers and money launderers. Because 
advanced notice of this action could result in the loss of reporting 
information related to these entities, and section 311 of the USA 
PATRIOT Act authorizes the issuance of this Order without a prior 
notice of proposed rulemaking, it is found to be impracticable, 
unnecessary, and contrary to the public interest to comply with notice 
and public procedure under 5 U.S.C. 553(b). For these reasons, the 
Order is made effective before 30 days have passed after its 
publication date. See 5 U.S.C. 553(d). In addition, the provisions of 
the Regulatory Flexibility Act relating to initial and final regulatory 
flexibility analysis (5 U.S.C. 604) are not applicable to this Order 
because FinCEN was not required to publish a prior

[[Page 24602]]

notice of proposed rulemaking under 5 U.S.C. 553 or any other law.
    By virtue of the authority contained in 31 U.S.C. 5318A and 
delegated to the Director of FinCEN, I hereby order, for the period 
from April 23, 2013 through August 21, 2013 that:

Part 1--Requirements for financial institutions subject to this Order

    (1) Identifying Transactions or Attempted Transactions Involving 
Halawi Exchange Co. A financial institution subject to this Order is 
required to use its existing anti-money laundering programs and 
processes to identify transactions or attempted transactions involving 
Halawi Exchange Co. U.S. financial institutions generally apply some 
degree of due diligence in screening their transactions and accounts, 
often through the use of commercially available software such as that 
used for compliance with the economic sanctions programs administered 
by the Office of Foreign Assets Control of the Department of the 
Treasury. The identification required by this Order may be accomplished 
by relying on these same automated programs and filters used to 
identify sanctioned entities.
    (2) Reporting. A financial institution subject to this Order is 
required to take reasonable steps to collect and report to FinCEN on 
the following information with respect to any transaction or attempted 
transaction involving Halawi Exchange Co.:
    (i) The identity and address of the participants in the transaction 
or attempted transaction, including the identity of the originator and 
beneficiary of any funds transfer;
    (ii) the legal capacity in which Halawi Exchange Co. is acting with 
respect to the transaction or attempted transaction and, to the extent 
to which Halawi Exchange Co. is not acting on its own behalf, the 
customer or other person on whose behalf Halawi Exchange Co. is acting; 
and
    (iii) a description of the transaction or attempted transaction and 
its purpose.
    (3) When to file. A report required this Order shall be filed by 
the financial institution subject to the Order within fifteen business 
days following the day when the financial institution subject to the 
Order engaged in the transaction or became aware of an attempted 
transaction. Willful failure to provide timely, accurate, and complete 
information in such reporting may constitute a violation of this Order 
subject to civil and criminal penalties under 31 U.S.C. 5321 and 5322.
    (4) Form of Reporting. A report required by this Order shall be 
filed on an encrypted CD-ROM sent to the Department of the Treasury, 
Financial Crimes Enforcement Network, Post Office Box 39, Vienna, 
Virginia 22183-0039 (Attn: 311 Reporting) However, if a financial 
institution subject to this Order determines the reportable transaction 
to be suspicious, filing FinCEN Form 111 within 15 days with all 
required information included in an attached CSV file and containing 
both in the narrative and field 35z the text ``Halawi Exchange SM1 
Report'' will be deemed to comply with this Order. The collection of 
information required by this Order is approved under OMB Control Number 
1506-0065. An agency may not conduct or sponsor and a person is not 
required to respond to a collection of information unless it displays a 
valid OMB control number.

Part 2--Specifications for Reporting.

    (1) Financial institutions subject to this Order shall place the 
required information in a CSV file in the following format:
    Transaction Reference Number, Payment Date, Instruction Date, 
Payment Amount, Transmittor's Account Number, Transmittors's Full Name, 
Transmittors's Address, Transmittor's Financial Institution's 
Identifier, Transmittor's Financial Institution's Name, Transmittor's 
Financial Institution's Address, Incoming Correspondent Financial 
Institution's Identifier, Incoming Correspondent Financial 
Institution's Name, Incoming Correspondent Financial Institution's 
Address, Outgoing Correspondent Financial Institution's Identifier, 
Outgoing Correspondent Financial Institution's Name, Outgoing 
Correspondent Financial Institution's Address, Recipient's Financial 
Institution's Identifier, Recipient's Financial Institution's Name, 
Recipient's Financial Institution's Address, Recipient's Account 
Number, Recipient's Full Name, Recipient's Address, Payment 
Instructions.

Part 3--Definitions.

    When used in this Order, where not otherwise distinctly defined or 
manifestly incompatible with the intent thereof, terms shall have the 
meanings ascribed in 31 CFR 1010.100. For purposes of this Order, the 
following terms shall have the following meanings:
    (1) Halawi Exchange Co. means all branches, offices, and 
subsidiaries of Halawi Exchange Co. operating in any jurisdiction.
    (2) Financial institution subject to the Order means a covered 
financial institution as defined in 31 CFR 1010.605(e)(1) or a money 
transmitter required to register under 31 CFR 1022.380.
    (3) Subsidiary means a company of which more than 50 percent of the 
voting stock or analogous equity interest is owned by Halawi Exchange 
Co.
    (4) Transaction Reference Number means a reference number assigned 
to a transaction by the reporting financial institution.
    (5) Incoming Correspondent Financial Institution means the 
financial institution that sent the transmittal order to the reporting 
financial institution.
    (6) Outgoing Correspondent Financial Institution means the 
financial institution to which the reporting financial institution will 
send a transmittal order.
    (7) Payment Instructions means any information provided by the 
originator to be included in the transmittal order that describes the 
purpose of the transaction for the beneficiary.

    Dated: April 20, 2013.
Jennifer Shasky Calvery,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2013-09786 Filed 4-23-13; 11:15 am]
BILLING CODE 4810-02-P