Financial Crimes Enforcement Network; Withdrawal of the Notice of Finding Involving Banco Delta Asia SARL (BDA), 48104-48105 [2020-17144]

Download as PDF 48104 Federal Register / Vol. 85, No. 154 / Monday, August 10, 2020 / Rules and Regulations the inspection required by paragraph (g) of this AD, within 25 hours TIS after August 17, 2020 (the effective date of this AD) and thereafter at intervals not to exceed 200 hours TIS, do a fluorescent penetrant, dye penetrant, or open-hole eddy current inspection of the NLG fork for cracks by following section 5. Instructions in Quest Aircraft Field Service Instruction FSI–147, Revision 00, Release Date January 29, 2018. (2) If you find any cracks of the NLG fork during any inspection required by paragraph (h)(1) of this AD, before further flight, replace the NLG fork with an NLG fork P/N 100–410– 7013 (type B). Replacement of the NLG fork with an NLG fork P/N 100–410–7013 (type B) terminates the repetitive inspections required by paragraphs (h)(1) and (i)(1) of this AD. (i) Inspection of the Shimmy Damper Bracket (1) If you have not replaced an NLG fork P/N 100–410–7001 (type A) per the initial inspection and replacement requirements in paragraph (h) of this AD, then within 25 hours TIS after August 17, 2020 (the effective date of this AD) and thereafter at intervals not to exceed 200 hours TIS (until the NLG fork is replaced with a P/N 100–410–7013 (type B) fork), inspect the shimmy damper bracket for looseness, and inspect the shimmy damper system for damaged (loose, leaking, corroded, or worn) components, by following pages 32_110 and 32_111, section 3252, Shimmy Damper, found in Chapter 32, Landing Gear, of Quest Aircraft Company Kodiak 100 Maintenance Manual, Revision No. 21, dated February 15, 2017. (2) If a loose shimmy damper bracket is found during any inspection required by paragraph (i)(1) of this AD, rework the shimmy damper bracket with interference-fit bolts by following Quest Aircraft Field Service Instruction FSI–146, Revision 00, Release Date April 18, 2017. Reworking the shimmy damper bracket with the interference-fit bolts terminates the repetitive inspections required by paragraph (i)(1) of this AD. (3) If any other damaged components are found in the shimmy damper system during any inspection required by paragraph (i)(1) of this AD, before further flight, replace the damaged components. (j) Optional Terminating Action In lieu of the NLG fork and shimmy damper bracket inspections required by paragraphs (h)(1) and (i)(1) of this AD, you may replace the NLG fork P/N 100–410–7001 (type A) with an NLG fork P/N 100–410–7013 (type B). This replacement terminates the inspection requirements of this AD, and no further actions are required. jbell on DSKJLSW7X2PROD with RULES (k) Restriction of NLG Fork P/N 100–410– 7001 (Type A) Installation Once an NLG fork P/N 100–410–7013 (type B) is installed on an airplane, do not install an NLG fork P/N 100–410–7001 (type A). If an NLG fork P/N 100–410–7013 (type B) is removed from the airplane for any reason (for example, to install floats), you must reinstall an NLG fork P/N 100–410–7013 (type B) when operating with wheels. VerDate Sep<11>2014 15:58 Aug 07, 2020 Jkt 250001 (l) Alternative Methods of Compliance (AMOCs) (1) The Manager, Seattle ACO Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the certification office, send it to the attention of the person identified in paragraph (m) of this AD. Information may also be emailed to: 9ANM-Seattle-ACO-AMOC-Requests@faa.gov. (2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/ certificate holding district office. (m) Related Information For more information about this AD, contact Wade Sullivan, Aerospace Engineer, Aerospace Engineer, Airframe Section, FAA, Seattle ACO Branch, 2200 South 216th St., Des Moines, WA 98198; phone and fax: 206– 231–3530; email: Wade.Sullivan@faa.gov. (n) Material Incorporated by Reference (1) The Director of the Federal Register approved the incorporation by reference of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51. (2) You must use this service information as applicable to do the actions required by this AD, unless the AD specifies otherwise. (3) The following service information was approved for IBR on August 17, 2020 (85 FR 41906, July 13, 2020). (i) Pages 32_110 and 32_111, section 3252, Shimmy Damper, Chapter 32, Landing Gear, of Quest Aircraft Company Kodiak 100 Maintenance Manual, Revision No. 21, dated February 15, 2017. (ii) Quest Aircraft Field Service Instruction FSI–146, Revision 00, Release Date April 18, 2017. Note 1 to paragraph (n)(2)(ii) of this AD: The Release Date is a pen-and-ink addition that appears only on the Revision Notice transmitted with FSI–146. (iii) Quest Aircraft Field Service Instruction FSI–147, Revision 00, Release Date January 29, 2018. Note 2 to paragraph (n)(2)(iii) of this AD: The Release Date is a pen-and-ink addition that appears only on the Revision Notice transmitted with FSI–147. (4) For service information identified in this AD, contact Kodiak Aircraft Company, Inc., 1200 Turbine Drive, Sandpoint, Idaho 83864; phone: (208) 263–1111 or 1 (866) 263– 1112; email: KodiakCare@daher.com; internet: http://Kodiak.aero/support. (5) You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 901 Locust, Kansas City, Missouri 64106. For information on the availability of this material at the FAA, call 816–329–4148. (6) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 the availability of this material at NARA, email fedreg.legal@nara.gov, or go to https:// www.archives.gov/federal-register/cfr/ ibrlocations.html. Issued on August 3, 2020. Ross Landes, Deputy Director for Regulatory Operations, Compliance & Airworthiness Division, Aircraft Certification Service. [FR Doc. 2020–17273 Filed 8–7–20; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network 31 CFR Part 1010 Financial Crimes Enforcement Network; Withdrawal of the Notice of Finding Involving Banco Delta Asia SARL (BDA) Financial Crimes Enforcement Network (FinCEN), Treasury. ACTION: Withdrawal of finding. AGENCY: This document withdraws FinCEN’s finding that BDA is a financial institution of primary money laundering concern, which was issued pursuant to Section 311 of the USA PATRIOT Act (Section 311). Subsequent to the issuance of this withdrawal, FinCEN will reassess whether BDA is presently a financial institution of primary money laundering concern and additional rulemaking is warranted. Elsewhere in this issue of the Federal Register, FinCEN is publishing a repeal of the related rulemaking, published March 19, 2007, imposing the fifth special measure against BDA. DATES: As of August 10, 2020, the Notice of Finding, published September 20, 2005, at 70 FR 55214, is withdrawn. FOR FURTHER INFORMATION CONTACT: The FinCEN Resource Center at frc@ fincen.gov. SUMMARY: I. Statutory 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 (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 E:\FR\FM\10AUR1.SGM 10AUR1 Federal Register / Vol. 85, No. 154 / Monday, August 10, 2020 / Rules and Regulations 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 grants the Secretary 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 five 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 Secretary to prohibit or impose conditions on the opening or maintaining of correspondent or payable-through accounts by covered U.S. financial institutions for or on behalf of a foreign banking institution. Taken as a whole, Section 311 provides the Secretary with a range of options that can be adapted to target specific money laundering and terrorist financing concerns most effectively. These options provide the authority to bring additional and necessary pressure on those jurisdictions and institutions that pose money-laundering threats and the ability to take steps to protect the U.S. financial system. Through the imposition of various special measures, FinCEN can: Gain more information about the concerned jurisdictions, financial institutions, transactions, and accounts; monitor more effectively the respective jurisdictions, financial institutions, transactions, and accounts; and, ultimately, protect U.S. financial institutions from involvement with jurisdictions, financial institutions, transactions, or accounts that pose a money laundering concern. jbell on DSKJLSW7X2PROD with RULES II. Administrative Background On September 20, 2005 (70 FR 55214), FinCEN published a finding in the Federal Register that reasonable grounds existed to conclude that BDA was a foreign financial institution of primary money laundering concern VerDate Sep<11>2014 15:58 Aug 07, 2020 Jkt 250001 (Notice of Finding).1 Simultaneous with publication of the Notice of Finding, FinCEN published a Notice of Proposed Rulemaking proposing the imposition of the fifth special measure against BDA.2 On March 19, 2007 (72 FR 12730), FinCEN published a final rule in the Federal Register imposing the fifth special measure against BDA, codified at 31 CFR 103.193 (subsequently renumbered as 31 CFR 1010.655) (Final Rule).3 Shortly after FinCEN concluded its rulemaking proceedings, in April 2007, BDA submitted a petition requesting the immediate rescission of the Final Rule. The following month, Stanley Au and Delta Asia Group (Holdings) Ltd., the owners of BDA, filed a separate petition for rescission of the Final Rule. FinCEN denied both petitions on September 21, 2007. On November 16, 2010, BDA again petitioned FinCEN to repeal the Final Rule. As part of an ongoing dialogue between FinCEN and BDA from 2012 through 2019, BDA agreed to arrange for two independent reviews of the bank, the results of which were subsequently shared with FinCEN. By letter dated September 26, 2019, FinCEN ultimately denied BDA’s November 2010 petition, providing BDA a memorandum thoroughly explaining its decision. In its denial, FinCEN discussed the results of the independent reviews of BDA and identified the limitations in these reviews. FinCEN acknowledged that BDA had taken steps to address some of the deficiencies highlighted in the Notice of Finding and Final Rule, but concluded that BDA had failed to correct other significant deficiencies. FinCEN ultimately determined that BDA’s AML compliance efforts remained inadequate to address the risks identified in the Notice of Finding and Final Rule. In addition to petitioning FinCEN to withdraw the Final Rule, BDA filed suit on March 14, 2013, in the United States District Court for the District of Columbia challenging the Notice of Finding and the Final Rule. This litigation was stayed for many years so that the dialogue described above could continue. Both FinCEN and BDA have since agreed that there are advantages to FinCEN’s revisiting the Final Rule and to settling this litigation. This course of action allows BDA to submit any remaining additional comments and permits FinCEN to take stock of the present circumstances and, if appropriate, to avail itself of the informal rulemaking process (providing 1 70 FR 55214 (Sept. 20, 2005). at 55217. 3 72 FR 12731 (Mar. 19, 2007). 2 Id. PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 48105 the public with an opportunity for notice and comment, in contrast to action on a petition) if it decides to take further action. As part of this settlement, FinCEN has agreed to reassess whether BDA is presently a financial institution of primary money laundering concern. BDA will be permitted to submit comments to FinCEN regarding the September 26, 2019 petition denial prior to FinCEN’s engaging in any additional Section 311 rulemaking involving BDA. In the event that FinCEN determines that the imposition of any special measures may be warranted, it will undertake a new rulemaking effort (including the publication of a new notice of proposed rulemaking). Any such proposed rule will allow for 30 days of comment, and as part of the rulemaking proceeding, FinCEN will make available for comment the unclassified, non-protected material relied upon by FinCEN in connection with any such rulemaking. If FinCEN determines that a final rule is appropriate, FinCEN will publish such a final rule 60 days following the close of the comment period. If the extent of submitted comments requires additional time, or if COVID–19-related issues hinder the agency’s ability to satisfy the proposed timeframes, FinCEN will so announce in the Federal Register. III. Withdrawal of the Notice of Finding For the reasons set forth above, FinCEN hereby withdraws the Notice of Finding that BDA is of primary money laundering concern published on September 20, 2005. Michael Mosier, Deputy Director, Financial Crimes Enforcement Network. [FR Doc. 2020–17144 Filed 8–7–20; 8:45 am] BILLING CODE 4810–02–P DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network 31 CFR Part 1010 RIN 1506–AA83 Financial Crimes Enforcement Network; Repeal of Special Measure Involving Banco Delta Asia (BDA) Financial Crimes Enforcement Network (FinCEN), Treasury. ACTION: Final rule. AGENCY: This rule repeals regulations concerning Special measures against Banco Delta Asia, which were issued pursuant to Section 311 of the USA PATRIOT Act (Section 311). Subsequent to the issuance of this rule, FinCEN will SUMMARY: E:\FR\FM\10AUR1.SGM 10AUR1

Agencies

[Federal Register Volume 85, Number 154 (Monday, August 10, 2020)]
[Rules and Regulations]
[Pages 48104-48105]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17144]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Part 1010


Financial Crimes Enforcement Network; Withdrawal of the Notice of 
Finding Involving Banco Delta Asia SARL (BDA)

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

ACTION: Withdrawal of finding.

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

SUMMARY: This document withdraws FinCEN's finding that BDA is a 
financial institution of primary money laundering concern, which was 
issued pursuant to Section 311 of the USA PATRIOT Act (Section 311). 
Subsequent to the issuance of this withdrawal, FinCEN will reassess 
whether BDA is presently a financial institution of primary money 
laundering concern and additional rulemaking is warranted. Elsewhere in 
this issue of the Federal Register, FinCEN is publishing a repeal of 
the related rulemaking, published March 19, 2007, imposing the fifth 
special measure against BDA.

DATES: As of August 10, 2020, the Notice of Finding, published 
September 20, 2005, at 70 FR 55214, is withdrawn.

FOR FURTHER INFORMATION CONTACT: The FinCEN Resource Center at 
[email protected].

I. Statutory 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 (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

[[Page 48105]]

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 grants the Secretary 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 five 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 
Secretary to prohibit or impose conditions on the opening or 
maintaining of correspondent or payable-through accounts by covered 
U.S. financial institutions for or on behalf of a foreign banking 
institution.
    Taken as a whole, Section 311 provides the Secretary with a range 
of options that can be adapted to target specific money laundering and 
terrorist financing concerns most effectively. These options provide 
the authority to bring additional and necessary pressure on those 
jurisdictions and institutions that pose money-laundering threats and 
the ability to take steps to protect the U.S. financial system. Through 
the imposition of various special measures, FinCEN can: Gain more 
information about the concerned jurisdictions, financial institutions, 
transactions, and accounts; monitor more effectively the respective 
jurisdictions, financial institutions, transactions, and accounts; and, 
ultimately, protect U.S. financial institutions from involvement with 
jurisdictions, financial institutions, transactions, or accounts that 
pose a money laundering concern.

II. Administrative Background

    On September 20, 2005 (70 FR 55214), FinCEN published a finding in 
the Federal Register that reasonable grounds existed to conclude that 
BDA was a foreign financial institution of primary money laundering 
concern (Notice of Finding).\1\ Simultaneous with publication of the 
Notice of Finding, FinCEN published a Notice of Proposed Rulemaking 
proposing the imposition of the fifth special measure against BDA.\2\ 
On March 19, 2007 (72 FR 12730), FinCEN published a final rule in the 
Federal Register imposing the fifth special measure against BDA, 
codified at 31 CFR 103.193 (subsequently renumbered as 31 CFR 1010.655) 
(Final Rule).\3\
---------------------------------------------------------------------------

    \1\ 70 FR 55214 (Sept. 20, 2005).
    \2\ Id. at 55217.
    \3\ 72 FR 12731 (Mar. 19, 2007).
---------------------------------------------------------------------------

    Shortly after FinCEN concluded its rulemaking proceedings, in April 
2007, BDA submitted a petition requesting the immediate rescission of 
the Final Rule. The following month, Stanley Au and Delta Asia Group 
(Holdings) Ltd., the owners of BDA, filed a separate petition for 
rescission of the Final Rule. FinCEN denied both petitions on September 
21, 2007. On November 16, 2010, BDA again petitioned FinCEN to repeal 
the Final Rule. As part of an ongoing dialogue between FinCEN and BDA 
from 2012 through 2019, BDA agreed to arrange for two independent 
reviews of the bank, the results of which were subsequently shared with 
FinCEN.
    By letter dated September 26, 2019, FinCEN ultimately denied BDA's 
November 2010 petition, providing BDA a memorandum thoroughly 
explaining its decision. In its denial, FinCEN discussed the results of 
the independent reviews of BDA and identified the limitations in these 
reviews. FinCEN acknowledged that BDA had taken steps to address some 
of the deficiencies highlighted in the Notice of Finding and Final 
Rule, but concluded that BDA had failed to correct other significant 
deficiencies. FinCEN ultimately determined that BDA's AML compliance 
efforts remained inadequate to address the risks identified in the 
Notice of Finding and Final Rule.
    In addition to petitioning FinCEN to withdraw the Final Rule, BDA 
filed suit on March 14, 2013, in the United States District Court for 
the District of Columbia challenging the Notice of Finding and the 
Final Rule. This litigation was stayed for many years so that the 
dialogue described above could continue. Both FinCEN and BDA have since 
agreed that there are advantages to FinCEN's revisiting the Final Rule 
and to settling this litigation. This course of action allows BDA to 
submit any remaining additional comments and permits FinCEN to take 
stock of the present circumstances and, if appropriate, to avail itself 
of the informal rulemaking process (providing the public with an 
opportunity for notice and comment, in contrast to action on a 
petition) if it decides to take further action. As part of this 
settlement, FinCEN has agreed to reassess whether BDA is presently a 
financial institution of primary money laundering concern. BDA will be 
permitted to submit comments to FinCEN regarding the September 26, 2019 
petition denial prior to FinCEN's engaging in any additional Section 
311 rulemaking involving BDA.
    In the event that FinCEN determines that the imposition of any 
special measures may be warranted, it will undertake a new rulemaking 
effort (including the publication of a new notice of proposed 
rulemaking). Any such proposed rule will allow for 30 days of comment, 
and as part of the rulemaking proceeding, FinCEN will make available 
for comment the unclassified, non-protected material relied upon by 
FinCEN in connection with any such rulemaking. If FinCEN determines 
that a final rule is appropriate, FinCEN will publish such a final rule 
60 days following the close of the comment period. If the extent of 
submitted comments requires additional time, or if COVID-19-related 
issues hinder the agency's ability to satisfy the proposed timeframes, 
FinCEN will so announce in the Federal Register.

III. Withdrawal of the Notice of Finding

    For the reasons set forth above, FinCEN hereby withdraws the Notice 
of Finding that BDA is of primary money laundering concern published on 
September 20, 2005.

Michael Mosier,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2020-17144 Filed 8-7-20; 8:45 am]
BILLING CODE 4810-02-P