[Federal Register Volume 73, Number 76 (Friday, April 18, 2008)]
[Notices]
[Page 21178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-8390]



[[Page 21177]]

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Part II





Department of the Treasury





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31 CFR Part 103



Financial Crimes Enforcement Network; Withdrawal of Notice and Proposed 
Rulemaking Against the Republic of Nauru; Notice and Proposed Rule

  Federal Register / Vol. 73, No. 76 / Friday, April 18, 2008 / 
Notices  

[[Page 21178]]


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DEPARTMENT OF THE TREASURY


Financial Crimes Enforcement Network; Withdrawal of Notice of the 
Finding of the Republic of Nauru as a Primary Money Laundering Concern

AGENCY: Financial Crimes Enforcement Network, Department of the 
Treasury.

ACTION: Withdrawal of the finding.

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SUMMARY: This document withdraws the Department of the Treasury's 
December 26, 2002 notice of the finding of the Republic of Nauru 
(``Nauru'') as a jurisdiction of primary money laundering concern 
pursuant to the authority contained in 31 U.S.C. 5318A of the Bank 
Secrecy Act.\1\
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    \1\ The Department of Treasury's December 26, 2002 notice with 
respect to Nauru was characterized as a ``designation'' rather than 
a ``finding.'' In subsequent notices pertaining to similar actions, 
including in the present withdrawal, we have replaced the word 
``designation'' with ``finding.''

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DATES: The finding is withdrawn as of April 18, 2008.

FOR FURTHER INFORMATION CONTACT: Regulatory Policy and Programs 
Division, Financial Crimes Enforcement Network, (800) 949-2732.

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 (``USA 
PATRIOT Act''). Title III of the USA PATRIOT Act amends the anti-money 
laundering provisions of the Bank Secrecy Act, codified at 12 U.S.C. 
1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5314 and 5316-5332, to 
promote the prevention, detection, and prosecution of money laundering 
and the financing of terrorism. Regulations implementing the Bank 
Secrecy Act appear at 31 CFR part 103. The authority of the Secretary 
of the Treasury (``the Secretary'') to administer the Bank Secrecy Act 
and its implementing regulations has been delegated to the Director of 
the Financial Crimes Enforcement Network.\2\
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    \2\ Therefore, references to the authority of the Secretary 
under section 311 of the USA PATRIOT Act apply equally to the 
Director of the Financial Crimes Enforcement Network.
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    Section 311 of the USA PATRIOT Act added section 5318A to the Bank 
Secrecy Act, granting the Secretary the authority to find a foreign 
jurisdiction, financial institution, class of transactions, or type of 
account as being of ``primary money laundering concern,'' and to impose 
one or more of five ``special measures'' with respect to such a 
jurisdiction, financial institution, class of transactions, or type of 
account.\3\ Section 5318A specifies those factors that the Secretary 
must consider before finding a jurisdiction, financial institution, 
transaction, or account as of ``primary money laundering concern.''
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    \3\ Available special measures include requiring: (1) 
Recordkeeping and reporting of certain financial transactions; (2) 
collection of information relating to beneficial ownership; (3) 
collection of information relating to certain payable-through 
accounts; (4) collection of information relating to certain 
correspondent accounts; and (5) prohibition or conditions on the 
opening or maintaining of correspondent or payable-through accounts. 
31 U.S.C. 5318A(b)(1)-(5). For a complete discussion of the range of 
possible countermeasures, see 68 FR 18917 (April 17, 2003) 
(proposing to impose special measures against Nauru).
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II. The 2002 Finding and Subsequent Developments

A. The 2002 Finding

    Based upon review and analysis of relevant information, 
consultations with relevant Federal agencies and departments, and after 
consideration of the factors enumerated in section 5318A, the Secretary 
found that reasonable grounds existed for concluding that Nauru was a 
jurisdiction of primary money laundering concern. This finding was 
published on December 26, 2002,\4\ pursuant to the authority under 31 
U.S.C. 5318A. The Department of the Treasury based its finding on the 
veil of secrecy surrounding the Republic of Nauru's banking system, its 
practice of selling offshore banking licenses, and its continued 
failure to enact adequate procedures for licensing, regulating, and 
supervising offshore banks. For many of the same reasons, the Financial 
Action Task Force had placed the Republic of Nauru on the Non-
Cooperative Countries and Territories list in June 2000.
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    \4\ 67 FR 78859 (Dec. 26, 2002).
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B. Subsequent Jurisdictional Developments

    Since the Department of the Treasury's December 20, 2002 finding, 
Nauru has taken remedial measures to address the deficiencies in its 
anti-money laundering regime. In consideration of Nauru's remedial 
measures and in light of actions taken by the Financial Action Task 
Force we have decided to withdraw the finding of Nauru as a 
jurisdiction of primary money laundering concern under 31 U.S.C. 
5318A.\5\
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    \5\ For a discussion of Nauru's remedial measures and of the 
actions taken by the Financial Action Task Force, refer to Financial 
Crimes Enforcement Network; Withdrawal of the Notice of Proposed 
Rulemaking against the Republic of Nauru, published elsewhere in 
this issue of the Federal Register.
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III. Withdrawal of the Finding of Nauru as a Primary Laundering Concern

    For the foregoing reasons, the finding that the Republic of Nauru 
is a jurisdiction of primary money laundering concern for purposes of 
section 5318A of title 31 as published in the Federal Register on 
December 26, 2002 (67 FR 78859), is hereby withdrawn.

    Dated: April 14, 2008.
James H. Freis, Jr.,
Director, Financial Crimes Enforcement Network.
 [FR Doc. E8-8390 Filed 4-17-08; 8:45 am]
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