Financial Crimes Enforcement Network; Withdrawal of Finding Regarding Banca Privada d'Andorra, 11648-11649 [2016-04767]
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Federal Register / Vol. 81, No. 43 / Friday, March 4, 2016 / Notices
for NSFHP grants, project selection
criteria, application requirements and
the deadline for submitting
applications.
Authority: The Paperwork Reduction Act
of 1995; 44 U.S.C. Chapter 35, as amended;
and 49 CFR 1:48.
Issued in Washington, DC, on February 26,
2016.
John Augustine,
Director, Office of Infrastructure and
Innovative Finance.
[FR Doc. 2016–04802 Filed 3–3–16; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Financial Crimes Enforcement
Network; Withdrawal of Finding
Regarding Banca Privada d’Andorra
Financial Crimes Enforcement
Network (‘‘FinCEN’’), Treasury.
ACTION: Withdrawal of finding.
AGENCY:
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DATES: The finding is withdrawn as of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.
SUMMARY:
SUPPLEMENTARY INFORMATION:
jstallworth on DSK7TPTVN1PROD with NOTICES
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
VerDate Sep<11>2014
15:22 Mar 03, 2016
Jkt 238001
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
1 80
FR 13464 (Mar. 13, 2015).
FR 13304 (Mar. 13, 2015) (RIN 1506–AB30).
FinCEN publicly announced the finding and NPRM
on March 10, 2015.
2 80
PO 00000
Frm 00141
Fmt 4703
Sfmt 4703
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.
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 Andorra 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, Agencia
´
`
Estatal de Resolucio d’Entitats Bancaries
(‘‘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
3 Press Release, AREB, AREB Assumes the
Tutelage of BPA, April 27, 2015, (https://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, (https://
areb.ad/images/areb/comunicats/15062015_AREB_
ENG.pdf.)
E:\FR\FM\04MRN1.SGM
04MRN1
Federal Register / Vol. 81, No. 43 / Friday, March 4, 2016 / Notices
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.
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
DEPARTMENT OF THE TREASURY
Study on the Overall Effectiveness of
the Terrorism Risk Insurance Program
Departmental Offices, U.S.
Department of the Treasury.
ACTION: Request for data and
information.
AGENCY:
Section 111 of the Terrorism
Risk Insurance Program Reauthorization
Act of 2015 (Reauthorization Act)
requires the Secretary of the Treasury
(Secretary) to submit a report to the
Congress addressing the overall
effectiveness of the Terrorism Risk
Insurance Program (Program) and trends
the Secretary has observed within the
jstallworth on DSK7TPTVN1PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
15:22 Mar 03, 2016
Jkt 238001
Program. In order to assist the Secretary
with the required report, Treasury
requests that insurers submit certain
insurance data and information
regarding their participation in the
Program.
DATES: Data must be submitted not later
than April 30, 2016.
ADDRESSES: Participating insurers may
submit the requested data and
information after registration at a Web
portal that has been established for this
data collection. A link to the Web site
where participating insurers can
commence the registration process can
be found at https://www.treasury.gov/
resource-center/fin-mkts/Pages/
program.aspx.
FOR FURTHER INFORMATION CONTACT:
Richard Ifft, Senior Insurance
Regulatory Policy Analyst, Federal
Insurance Office, Room 1410,
Department of the Treasury, 1500
Pennsylvania Avenue NW., Washington,
DC 20220, at (202) 622–2922 (this is not
a toll-free number), or Kevin Meehan,
Policy Advisor, Federal Insurance
Office, 202–622–7009 (not a toll free
number). Persons who have difficulty
hearing or speaking may access these
numbers via TTY by calling the toll-free
Federal Relay Service at (800) 877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
Section 111 directs the Secretary,
beginning in calendar year 2016, to
‘‘require insurers participating in the
Program to submit to the Secretary such
information regarding insurance
coverage for terrorism losses of such
insurers as the Secretary considers
appropriate to analyze the effectiveness
of the Program[.]’’ This information and
data includes information regarding: (1)
Lines of insurance with exposure to
such losses; (2) premiums earned on
such coverage; (3) geographical location
of exposures; (4) pricing of such
coverage; (5) the take-up rate for such
coverage; (6) the amount of private
reinsurance for acts of terrorism
purchased; and (7) such other matters as
the Secretary considers appropriate.
Treasury plans to issue a Notice of
Proposed Rulemaking proposing rules
that expand upon this requirement for
the submission of data by participating
insurers in the near future.
Section 111 also requires the
Secretary to ‘‘submit a report to the
Committee on Financial Services of the
House of Representatives and the
Committee on Banking, Housing, and
Urban Affairs of the Senate’’ that
includes: (1) An analysis of the overall
effectiveness of the Program; (2) an
evaluation of any changes or trends in
PO 00000
Frm 00142
Fmt 4703
Sfmt 4703
11649
the data collected by the Secretary; (3)
an evaluation of whether any aspects of
the Program have the effect of
discouraging or impeding insurers from
providing commercial property casualty
insurance coverage or coverage for acts
of terrorism; (4) an evaluation of the
impact of the Program on workers’
compensation insurers; and (5) in the
case of the data collected by the
Secretary regarding premiums earned on
insurance coverage for terrorism losses,
an estimate of the total amount earned
by insurers since January 1, 2003. The
initial report under this requirement is
to be submitted not later than June 30,
2016.
II. Solicitation for Data
Treasury must start collecting data for
the initial report required under section
111 before Treasury is able to review
comments on proposed regulations
concerning data collection, including
whether it has properly estimated the
level of burden that this collection
imposes. Based on interaction with
stakeholders, Treasury anticipates that
most participating insurers will be able
to respond to this solicitation with all of
the requested data in that the data
requested, and the form in which the
data is requested, conforms to industry’s
current practice. In order to avoid
inadvertently imposing an
unanticipated level of burden on
participating insurers without due
consideration, Treasury is requesting,
and not requiring, that participating
insurers submit the data enumerated in
the section 111 data collection
authorized under this emergency
approval. Making this collection
voluntary also identifies to all
participating insurers the types of
information that Treasury will likely
seek in future collections under section
111 and provides time to the extent
necessary for insurers to make any
adjustments to ease the burden of
compliance with such collections.
Treasury, through an insurance
statistical aggregator, has established the
web portal identified above, through
which insurers will be able to submit
the requested data. All information
submitted via the web portal is subject
to the confidentiality and data
protection provisions of section 111 as
well as to section 552 of title 5, United
States Code, including any exceptions
thereunder. In accordance with the
Paperwork Reduction Act, (44 U.S.C
3501 et seq.), the information collected
through the web portal has been
approved by the Office of Management
and Budget (OMB) under control
number 1505–0253. Treasury does not
anticipate further requests for
E:\FR\FM\04MRN1.SGM
04MRN1
]]>Agencies
[Federal Register Volume 81, Number 43 (Friday, March 4, 2016)]
[Notices]
[Pages 11648-11649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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, (https://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, (https://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
