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BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

WASHINGTON, D.C. 20551 

DIVISION OF BANKING

SUPERVISION AND REGULATION

SR 16-13 

July 29, 2016 

Revised November 13, 

2017 

TO THE OFFICER IN CHARGE OF SUPERVISION AND APPROPRIATE 

SUPERVISORY AND EXAMINATION STAFF AT EACH FEDERAL RESERVE 

BANK AND EACH DOMESTIC AND FOREIGN BANKING ORGANIZATION 

SUPERVISED BY THE FEDERAL RESERVE

SUBJECT: Imposition of Special Measures by the U.S. Department of the Treasury’s 

Financial Crimes Enforcement Network (FinCEN)

Applicability: This letter on special measures is directed to all covered financial institutions 

supervised by the Federal Reserve, regardless of asset size. 

The purpose of this letter is to advise Federal Reserve supervised institutions of the 

special measures imposed by the U.S. Department of the Treasury’s Financial Crimes 

Enforcement Network (FinCEN) under section 311 of the USA PATRIOT Act 

(31 U.S.C. 5318A).1 Special measures create legal obligations for covered financial institutions

with respect to certain jurisdictions, financial institutions, or international transactions of primary 

money laundering concern to the United States (collectively, “311 entities”).

2

 

1 For background information on section 311, refer to the “Special Measures” section of the Federal Financial 

Institutions Examination Council Bank Secrecy Act/Anti-Money Laundering Examination Manual, available at 

http://www.ffiec.gov/bsa_aml_infobase/. 

2 FinCEN’s special measures rule (31 C.F.R. 1010.658(a)(3)) defines “covered financial institution” to include the 

following: (i) an insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h))); 

(ii) a commercial bank; (iii) an agency or branch of a foreign bank in the United States; (iv) a federally insured

credit union; (v) a savings association; (vi) a corporation acting under section 25A of the Federal Reserve Act

(12 U.S.C. 611 et seq.); (vii) a trust bank or trust company that is federally regulated and is subject to an anti-money

laundering program requirement; (viii) a securities broker or dealer registered, or required to be registered, with the

Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934 (“Exchange Act”)

(15 U.S.C. 78a et seq.), except persons who register pursuant to section 15(b)(11) of the Exchange Act; (ix) a futures

On November 13, 2017, the List of Entities for Which FinCEN Has Imposed Special 

Measures Under Section 311 of the USA PATRIOT Act (attachment) was updated to 

reflect current FinCEN measures.
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Under section 311 of the USA PATRIOT Act, FinCEN has authority to require covered 

financial institutions to take one or more of the following special measures with regard to a 311

entity:

1. maintain records, file reports, or both, concerning the aggregate amount of 

transactions, or concerning each transaction of the entity; 

2. obtain and retain beneficial ownership information regarding U.S. accounts that 

involves the entity; 

3. identify and obtain information comparable to U.S. customer identification 

requirements regarding customers permitted to use, or whose transactions are 

routed through, payable through accounts of financial institutions involving the 

entity;

4. identify and obtain information comparable to U.S. customer identification 

requirements regarding customers permitted to use, or whose transactions are 

routed through, correspondent accounts of financial institutions involving the 

entity; and 

5. prohibit, or impose conditions upon, the opening or maintaining in the United 

States of a correspondent account or payable-through account for the entity.

Because the specific special measures imposed regarding 311 entities can vary, covered financial 

institutions should refer to FinCEN’s rulemaking or order pertaining to each 311 entity for 

guidance regarding the nature, applicability, and scope of the imposed special measures.

3

Generally, the special measure most commonly imposed under section 311 is the fifth special 

measure. The fifth special measure must be issued by rulemaking and prohibits all covered 

financial institutions from opening or maintaining a correspondent account in the United States 

for, or on behalf of, entities identified as a primary money laundering concern. The first four 

special measures may be imposed by order, without a final rulemaking.

Attached to this SR letter is a list of the 311 entities for which a special measure is in 

place creating obligations on the part of covered financial institutions. This list will be updated 

periodically whenever FinCEN imposes a new special measure or removes, or changes an 

existing special measure.

Federal Reserve Banks are asked to distribute this letter to covered supervised domestic 

and foreign financial institutions as well as to supervisory and examination staff. For questions 

regarding these special measures, please contact Koko Ives, Manager, Bank Secrecy Act/Anti-

 commission merchant or an introducing broker registered, or required to be registered, with the Commodity Futures 

Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq.), except persons who register pursuant 

to section 4(f)(a)(2) of the Commodity Exchange Act; and (x) a mutual fund, which means an investment company 

(as defined in section 3(a)(1) of the Investment Company Act of 1940 ((“Investment Company Act”) 

(15 U.S.C. 80a-3(a)(1))) that is an open-end company (as defined in section 5(a)(1) of the Investment Company Act 

(15 U.S.C. 80a-5(a)(1))) and that is registered, or is required to register, with the SEC pursuant to the Investment 

Company Act.

3 The list of FinCEN’s findings, notices of proposed rulemakings, and final rulemakings on Special Measures for 

Jurisdictions, Financial Institutions or International Transactions of Primary Money Laundering Concerns is 

available at: http://www.fincen.gov/statutes_regs/patriot/section311.html.
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Money Laundering Compliance Section (202) 973-6163. In addition, questions may be sent via 

the Board’s public website.4

Michael Gibson

Director

Attachment:

• List of Entities for Which FinCEN Has Imposed Special Measures Under Section 311 of

the USA PATRIOT Act (Updated November 13, 2017)

Supersedes:

• SR letter 07-4, “Imposition of Special Measures against Banco Delta Asia SARL”

• SR letter 06-6, “Imposition of Special Measures against Commercial Bank of Syria”

• SR letter 04-6, “Imposition of Special Measures against Burma, Myanmar Mayflower 

Bank, and Asia Wealth Bank”

 4 See: http://www.federalreserve.gov/apps/contactus/feedback.aspx.
Attachment to SR 16-13

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List of Entities for Which FinCEN Has Imposed Special Measures Under

Section 311 of the USA PATRIOT Act

Last Updated: November 13, 2017

Entity Location Notice of 

Finding1

Final Rule 

or Order

Final Rule or

Order 

Effective Date

Notes

Bank of Dandong People’s 

Republic of 

China

7/7/17

82 FR 31537

11/8/17

82 FR 51758

12/8/17 Imposes Fifth Special Measure 

prohibiting opening or maintaining 

correspondent accounts for the 

institution.

Democratic 

People’s Republic 

of Korea

Democratic 

People’s 

Republic of 

Korea

6/3/16

81 FR 35665

11/9/16

81 FR 78715

12/9/16 Imposes Fifth Special Measure 

prohibiting opening or maintaining 

correspondent accounts for North 

Korean financial institutions.

FBME Bank Ltd. 

Formerly known 

as Federal Bank of 

the Middle East, 

Ltd.

Tanzania 

and Cyprus

7/22/14

79 FR 42486

Final rule:

3/31/16

81 FR 18480

Supplement:

12/1/16

81 FR 86577

4/14/17 Imposes Fifth Special Measure 

prohibiting opening or maintaining 

correspondent accounts for the 

institution.

Banco Delta Asia 

SARL

Macau 

Special 

Administrati

ve Region, 

China

9/20/05

70 FR 55214

3/19/07

72 FR 12730

4/18/07 Imposes Fifth Special Measure 

prohibiting opening or maintaining 

correspondent accounts for the 

institution.

Commercial Bank 

of Syria (Includes 

Damascus, 

Syria and 

5/18/04

69 FR 28098

(Contained in 

3/15/06

71 FR 13260

4/14/06 Imposes Fifth Special Measure 

prohibiting opening or maintaining 

 1 Institutions may consider information contained in FinCEN’s findings or notices of proposed rulemaking as part of their customer risk assessments. 
Attachment to SR 16-13

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Entity Location Notice of 

Finding1

Final Rule 

or Order

Final Rule or

Order 

Effective Date

Notes

Syrian Lebanese 

Commercial Bank)

Beirut, 

Lebanon

Notice of 

Proposed 

Rulemaking)

correspondent accounts for the 

institution.

Burma Burma (also 

known as 

Myanmar)

11/25/03

68 FR 66299

(Contained in 

Notice of 

Proposed 

Rulemaking)

4/12/04

69 FR 19093

5/12/04 Imposes Fifth Special Measure 

prohibiting opening or maintaining 

correspondent accounts for certain 

institutions in the jurisdiction.