[Federal Register Volume 81, Number 52 (Thursday, March 17, 2016)]
[Rules and Regulations]
[Pages 14389-14390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04412]



Financial Crimes Enforcement Network

31 CFR Part 1010

RIN 1506-AB19

Financial Crimes Enforcement Network; Withdrawal of Finding 
Regarding JSC CredexBank

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

ACTION: Withdrawal of finding.


SUMMARY: This document withdraws FinCEN's finding that JSC CredexBank 
(``Credex''), renamed JSC InterPayBank (``InterPay''), is a financial 
institution of primary money laundering concern, 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 Credex, FinCEN has determined that Credex 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 two special 
measures against Credex.

DATES: The finding is withdrawn as of March 17, 2016.



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,'' codified at 31 U.S.C. 5318A). 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)(1-4), 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 JSC 
CredexBank (``Credex'') was a financial institution of primary money 
laundering concern, as published in the Federal Register on May 25, 
2012.\1\ FinCEN published a notice of proposed rulemaking proposing 
(``NPRM'') to impose the first and fifth special measures on May 30, 
2012, pursuant to the authority under 31 U.S.C. 5318A.\2\

    \1\ See 77 FR 31434 (May 25, 2012).
    \2\ See 77 FR 31795 (May 30, 2012) (RIN 1506-AB19).

B. Subsequent Developments

    Since FinCEN's finding and related NPRM regarding Credex, material 
facts regarding the circumstances of the proposed rulemaking have 
changed. On May 8, 2015, the National Bank of the Republic of Belarus 
(``NBRB''), the Belarusian central bank and monetary authority with 
control over bank supervision and regulation, revoked the banking 
license of InterPay, the successor of Credex, and delisted InterPay 
from the list of banks published by the NBRB.\3\ In late January 2016, 
InterPay was also listed by the NBRB as being in the process of 
bankruptcy and liquidation.\4\ Because of the actions taken by the 
Belarusian banking authorities and the ongoing liquidation of 
InterPay's assets, InterPay no longer operates as a foreign financial 

    \3\ See Press Release, National Bank of the Republic of Belarus. 
About Revocation of the Banking License from `InterPayBank' Joint 
Stock Company. (May 8, 2015). http://www.nbrb.by/Press/?nId=101&l=en 
(accessed January 27, 2016); see also Press Release, National Bank 
of the Republic of Belarus. Register of Banking Licenses as at 27 
January 2016. (January 27, 2016). http://www.nbrb.by/engl/system/register.asp (accessed January 27, 2016).
    \4\ See Press Release, National Bank of the Republic of Belarus. 
Information on Banks Under Bankruptcy or Liquidation in the Republic 
of Belarus as of 27.01.2016. (January 27, 2016). http://www.nbrb.by/engl/system/ex-banks.asp (accessed January 27, 2016).

III. Withdrawal of the Finding

    For the reasons set forth above, FinCEN hereby withdraws its 
finding that Credex/InterPay is of primary

[[Page 14390]]

money laundering concern, published on May 25, 2012. FinCEN's 
withdrawal of the finding does not acknowledge any remedial measure 
taken by Credex/InterPay, but results from the fact that Credex/
InterPay no longer operates as a foreign financial institution.

Jamal El-Hindi,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2016-04412 Filed 3-16-16; 8:45 am]