13304 Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Proposed Rules 

TABLE E–1—FILTER LENS SHADE

NUMBERS FOR PROTECTION

AGAINST RADIANT ENERGY—Continued 

Welding operation Shade 

No. 

Shielded metal-arc welding 3⁄16-, 7⁄32-, 1⁄4-inch diameter electrodes.12. 

5⁄16-, 3⁄8-inch diameter electrodes .... 14. 

Atomic hydrogen welding ................. 10–14. 

Carbon-arc welding .......................... 14. 

Soldering .......................................... 2. 

Torch brazing ................................... 3 or 4. 

Light cutting, up to 1 inch ................ 3 or 4. 

Medium cutting, 1 inch to 6 inches .. 4 or 5. 

Heavy cutting, over 6 inches ........... 5 or 6. 

Gas welding (light), up to 1⁄8-inch .... 4 or 5. 

Gas welding (medium), 1⁄8-inch to 1⁄2-inch.5 or 6. 

Gas welding (heavy), over 1⁄2-inch .. 6 or 8. 

(2) Laser protection. (i) Employees 

whose occupation or assignment 

requires exposure to laser beams shall 

be furnished suitable laser safety goggles 

which will protect for the specific 

wavelength of the laser and be of optical 

density (O.D.) adequate for the energy 

involved. Table E–2 lists the maximum 

power or energy density for which 

adequate protection is afforded by 

glasses of optical densities from 5 

through 8. 

TABLE E–2—SELECTING LASER

SAFETY GLASS

Intensity, CW 

maximum power 

density 

(watts/cm2) 

Attenuation 

Optical 

density 

(O.D.) 

Attenuation 

factor 

10¥2 ........................ 5 105

10¥1 ........................ 6 106

1.0 ........................... 7 107

10.0 ......................... 8 108

Output levels falling between lines in 

this table shall require the higher optical 

density. 

(ii) All protective goggles shall bear a 

label identifying the following data: 

(A) The laser wavelengths for which 

use is intended; 

(B) The optical density of those 

wavelengths; 

(C) The visible light transmission. 

[FR Doc. 2015–05521 Filed 3–12–15; 8:45 am] 

BILLING CODE 4510–26–P 

DEPARTMENT OF THE TREASURY 

Financial Crimes Enforcement Network 

31 CFR Part 1010 

RIN 1506–AB30 

Imposition of Special Measure against 

Banca Privada d’Andorra as a 

Financial Institution of Primary Money 

Laundering Concern 

AGENCY: Financial Crimes Enforcement 

Network (‘‘FinCEN’’), Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: In a finding, notice of which 

is published elsewhere in this issue of 

the Federal Register (‘‘Notice of 

Finding’’), the Director of FinCEN found 

that Banca Privada d’Andorra (‘‘BPA’’) 

is a financial institution operating 

outside of the United States that is of 

primary money laundering concern. 

FinCEN is issuing this notice of 

proposed rulemaking (‘‘NPRM’’) to 

propose the imposition of a special 

measure against BPA. 

DATES: Written comments on this NPRM 

must be submitted on or before May 12, 

2015. 

ADDRESSES: You may submit comments, 

identified by 1506–AB30, by any of the 

following methods: 

• Federal E-rulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

Include 1506–AB30 in the submission. 

• Mail: The Financial Crimes 

Enforcement Network, P.O. Box 39, 

Vienna, VA 22183. Include 1506–AB30 

in the body of the text. Please submit 

comments by one method only. 

• Comments submitted in response to 

this NPRM will become a matter of 

public record. Therefore, you should 

submit only information that you wish 

to make publicly available. 

Inspection of comments: Public 

comments received electronically or 

through the U.S. Postal Service sent in 

response to a notice and request for 

comment will be made available for 

public review on http://

www.regulations.gov. Comments 

received may be physically inspected in 

the FinCEN reading room located in 

Vienna, Virginia. Reading room 

appointments are available weekdays 

(excluding holidays) between 10 a.m. 

and 3 p.m., by calling the Disclosure 

Officer at (703) 905–5034 (not a toll-free 

call). 

FOR FURTHER INFORMATION CONTACT: The 

FinCEN Resource Center at (800) 767– 

2825. 

SUPPLEMENTARY INFORMATION: 

I. Statutory Provisions 

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 (the 

‘‘USA PATRIOT Act’’), Public Law 107– 

56. 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 (the 

‘‘Secretary’’) 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’’), codified at 31 U.S.C. 

5318A, grants the Director of FinCEN 

the authority, upon finding that 

reasonable grounds exist for concluding 

that a foreign jurisdiction, institution, 

class of transaction, 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. 

II. Imposition of a Special Measure 

Against BPA as a Financial Institution 

of Primary Money Laundering Concern 

A. Special Measure 

As noticed elsewhere in this issue of 

the Federal Register, on March 6, 2015, 

the Director of FinCEN found that BPA 

is a financial institution operating 

outside the United States that is of 

primary money laundering concern 

(‘‘Finding’’). Based upon that Finding, 

the Director of FinCEN is authorized to 

impose one or more special measures. 

Following the consideration of all 

factors relevant to the Finding and to 

selecting the special measure proposed 

in this NPRM, the Director of FinCEN 

proposes to impose the special measure 

authorized by section 5318A(b)(5) (the 

‘‘fifth special measure’’). In connection 

with this action, FinCEN consulted with 

representatives of the Federal functional 

regulators, the Department of Justice, 

and the Department of State, among 

others. 

B. Discussion of Section 311 Factors 

In determining which special 

measures to implement to address the 

primary money laundering concern, 

FinCEN considered the following 

factors. 


tkelley on DSK3SPTVN1PROD with PROPOSALS
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1See 31 CFR 1010.605(c)(2)(i). 

1. Whether Similar Action Has Been or 

Will Be Taken by Other Nations or 

Multilateral Groups Against BPA 

Other countries or multilateral groups 

have not yet taken action similar to the 

action proposed in this rulemaking that 

would: (1) Prohibit domestic financial 

institutions and agencies from opening 

or maintaining a correspondent account 

for or on behalf of BPA; and (2) require 

certain covered financial institutions to 

screen their correspondent accounts in 

a manner that is reasonably designed to 

guard against processing transactions 

involving BPA. FinCEN encourages 

other countries to take similar action 

based on the information contained in 

this NPRM and the Notice of Finding. 

2. Whether the Imposition of the Fifth 

Special Measure Would Create a 

Significant Competitive Disadvantage, 

Including Any Undue Cost or Burden 

Associated With Compliance, for 

Financial Institutions Organized or 

Licensed in the United States 

The fifth special measure proposed by 

this rulemaking would prohibit covered 

financial institutions from opening or 

maintaining correspondent accounts for 

or on behalf of BPA after the effective 

date of the final rule implementing the 

fifth special measure. Currently, only 

four U.S. covered financial institutions 

maintain an account for BPA; therefore, 

FinCEN believes this action will not 

present an undue regulatory burden. As 

a corollary to this measure, covered 

financial institutions also would be 

required to take reasonable steps to 

apply special due diligence, as set forth 

below, to all of their correspondent 

accounts to help ensure that no such 

account is being used to provide 

services to BPA. For direct 

correspondent relationships, this would 

involve a minimal burden in 

transmitting a one-time notice to certain 

foreign correspondent account holders 

concerning the prohibition on 

processing transactions involving BPA 

through the U.S. correspondent account. 

U.S. financial institutions generally 

apply some level of screening and, 

when required, conduct some level of 

reporting of their transactions and 

accounts, often through the use of 

commercially-available software such as 

that used for compliance with the 

economic sanctions programs 

administered by the Office of Foreign 

Assets Control (‘‘OFAC’’) of the 

Department of the Treasury and to 

detect potential suspicious activity. To 

ensure that U.S. financial institutions 

are not being used unwittingly to 

process payments for or on behalf of 

BPA, directly or indirectly, some 

additional burden will be incurred by 

U.S. financial institutions to be vigilant 

in their suspicious activity monitoring 

procedures. As explained in more detail 

in the section-by-section analysis below, 

financial institutions should be able to 

leverage these current screening and 

reporting procedures to detect 

transactions involving BPA. 

3. The Extent to Which the Proposed 

Action or Timing of the Action Would 

Have a Significant Adverse Systemic 

Impact on the International Payment, 

Clearance, and Settlement System, or on 

Legitimate Business Activities of BPA 

The requirements proposed in this 

NPRM would target BPA specifically; 

they would not target a class of financial 

transactions (such as wire transfers) or 

a particular jurisdiction. BPA is not a 

major participant in the international 

payment system and is not relied upon 

by the international banking community 

for clearance or settlement services. 

Additionally, it is difficult to assess on 

the information available the extent to 

which BPA is used for legitimate 

business purposes. BPA provides 

services in private banking, personal 

banking, and corporate banking. These 

services include typical bank products 

such as savings accounts, corporate 

accounts, credit cards, and financing. 

BPA provides services to high-risk 

customers including international 

foreign operated shell companies, 

businesses likely engaged in unlicensed 

money transmission, and senior foreign 

political officials. Because of the 

demonstrated cooperation of high level 

management at BPA with TPMLs, BPA’s 

legitimate business activity is at high 

risk of being abused by money 

launderers. Given this risk, FinCEN 

believes that any impact on the 

legitimate business activities of BPA is 

outweighed by the need to protect the 

US financial system. Moreover, the 

imposition of the fifth special measure 

against BPA would not have a 

significant adverse systemic impact on 

the international payment, clearance, 

and settlement system. 

4. The Effect of the Proposed Action on 

United States National Security and 

Foreign Policy 

The exclusion of BPA from the U.S. 

financial system as proposed in this 

NPRM would enhance national security 

by making it more difficult for money 

launderers, transnational criminal 

organizations, human traffickers, and 

other criminals to access the U.S. 

financial system. More generally, the 

imposition of the fifth special measure 

would complement the U.S. 

Government’s worldwide efforts to 

expose and disrupt international money 

laundering. 

Therefore, pursuant to the Finding 

that BPA is a financial institution 

operating outside of the United States of 

primary money laundering concern, and 

after conducting the required 

consultations and weighing the relevant 

factors, the Director of FinCEN proposes 

to impose the fifth special measure. 

III. Section-by-Section Analysis for 

Imposition of the Fifth Special Measure 

A. 1010.662(a)—Definitions 

1. Banca Privada d’Andorra 

Section 1010.662(a)(1) of the 

proposed rule would define BPA to 

include all domestic and international 

branches, offices, and subsidiaries of 

BPA wherever located. 

Covered financial institutions should 

take commercially reasonable measures 

to determine whether a customer is a 

branch, office, or subsidiary of BPA. 

2. Correspondent Account 

Section 1010.662(a)(2) of the 

proposed rule would define the term 

‘‘correspondent account’’ by reference to 

the definition contained in 31 CFR 

1010.605(c)(1)(ii). Section 

1010.605(c)(1)(ii) defines a 

correspondent account to mean an 

account established to receive deposits 

from, or make payments or other 

disbursements on behalf of, a foreign 

bank, or to handle other financial 

transactions related to the foreign bank. 

Under this definition, ‘‘payable through 

accounts’’ are a type of correspondent 

account. 

In the case of a U.S. depository 

institution, this broad definition 

includes most types of banking 

relationships between a U.S. depository 

institution and a foreign bank that are 

established to provide regular services, 

dealings, and other financial 

transactions, including a demand 

deposit, savings deposit, or other 

transaction or asset account, and a 

credit account or other extension of 

credit. FinCEN is using the same 

definition of ‘‘account’’ for purposes of 

this rule as was established for 

depository institutions in the final rule 

implementing the provisions of section 

312 of the USA PATRIOT Act requiring 

enhanced due diligence for 

correspondent accounts maintained for 

certain foreign banks.1

In the case of securities brokerdealers, futures commission merchants, 

introducing brokers-commodities, and 

investment companies that are open-end 

companies (‘‘mutual funds’’), FinCEN is 


tkelley on DSK3SPTVN1PROD with PROPOSALS
13306 Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Proposed Rules 

2See 31 CFR 1010.605(c)(2)(ii)–(iv). 

3See 31 CFR 1010.605(e)(1). 

also using the same definition of 

‘‘account’’ for purposes of this rule as 

was established for these entities in the 

final rule implementing the provisions 

of section 312 of the USA PATRIOT Act 

requiring enhanced due diligence for 

correspondent accounts maintained for 

certain foreign banks.2

3. Covered Financial Institution 

Section 1010.662(a)(3) of the 

proposed rule would define ‘‘covered 

financial institution’’ with the same 

definition used in the final rule 

implementing the provisions of section 

312 of the USA PATRIOT Act,3 which 

in general includes the following: 

• An insured bank (as defined in 

section 3(h) of the Federal Deposit 

Insurance Act (12 U.S.C. 1813(h)); 

• a commercial bank; 

• an agency or branch of a foreign 

bank in the United States; 

• a Federally insured credit union; 

• a savings association; 

• a corporation acting under section 

25A of the Federal Reserve Act (12 

U.S.C. 611); 

• a trust bank or trust company; 

• a broker or dealer in securities; 

• a futures commission merchant or 

an introducing broker-commodities; and 

• a mutual fund. 

4. Subsidiary 

Section 1010.662(a)(4) of the 

proposed rule would define 

‘‘subsidiary’’ as a company of which 

more than 50 percent of the voting stock 

or analogous equity interest is owned by 

BPA. 

B. 1010.662(b)—Prohibition on 

Accounts and Due Diligence 

Requirements for Covered Financial 

Institutions 

1. Prohibition on Opening or 

Maintaining Correspondent Accounts 

Section 1010.662(b)(1) of the 

proposed rule imposing the fifth special 

measure would prohibit covered 

financial institutions from establishing, 

maintaining, administering, or 

managing in the United States any 

correspondent account for or on behalf 

of BPA. 

2. Special Due Diligence for 

Correspondent Accounts To Prohibit 

Use 

As a corollary to the prohibition on 

maintaining correspondent accounts for 

or on behalf of BPA, section 

1010.662(b)(2) of the proposed rule 

would 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. 

As part of that special due diligence, 

covered financial institutions must 

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. 

Covered financial institutions should 

implement appropriate risk-based 

procedures to identify transactions 

involving BPA. 

A covered financial institution may 

satisfy the notification requirement by 

transmitting the following notice to its 

foreign correspondent account holders 

that it knows or has reason to know 

provide services to BPA: 

Notice: Pursuant to U.S. regulations issued 

under Section 311 of the USA PATRIOT Act, 

see 31 CFR 1010.662, we are prohibited from 

establishing, maintaining, administering, or 

managing a correspondent account for or on 

behalf of Banca Privada d’Andorra. The 

regulations also require us to notify you that 

you may not provide Banca Privada 

d’Andorra or any of its subsidiaries with 

access to the correspondent account you hold 

at our financial institution. If we become 

aware that the correspondent account you 

hold at our financial institution has 

processed any transactions involving Banca 

Privada d’Andorra or any of its subsidiaries, 

we will be required to take appropriate steps 

to prevent such access, including terminating 

your account. 

A covered financial institution may, 

for example, have knowledge through 

transaction screening software that a 

correspondent processes transactions for 

BPA. The purpose of the notice 

requirement is to aid cooperation with 

correspondent account holders in 

preventing transactions involving BPA 

from accessing the U.S. financial 

system. However, FinCEN would not 

require or expect a covered financial 

institution to obtain a certification from 

any of its correspondent account 

holders that access will not be provided 

to comply with this notice requirement. 

Methods of compliance with the notice 

requirement could include, for example, 

transmitting a one-time notice by mail, 

fax, or email. FinCEN specifically 

solicits comments on the form and 

scope of the notice that would be 

required under the rule. 

The special due diligence would also 

include implementing risk-based 

procedures designed to identify any use 

of correspondent accounts to process 

transactions involving BPA. A covered 

financial institution would be expected 

to apply an appropriate screening 

mechanism to identify a funds transfer 

order that on its face listed BPA as the 

financial institution of the originator or 

beneficiary, or otherwise referenced 

BPA in a manner detectable under the 

financial institution’s normal screening 

mechanisms. An appropriate screening 

mechanism could be the mechanism 

used by a covered financial institution 

to comply with various legal 

requirements, such as the commercially 

available software programs used to 

comply with the economic sanctions 

programs administered by OFAC. 

A covered financial institution would 

also be required to implement riskbased procedures to identify indirect 

use of its correspondent accounts, 

including through methods used to 

disguise the originator or originating 

institution of a transaction. Specifically, 

FinCEN is concerned that BPA may 

attempt to disguise its transactions by 

relying on types of payments and 

accounts that would not explicitly 

identify BPA as an involved party. A 

financial institution may develop a 

suspicion of such misuse based on other 

information in its possession, patterns 

of transactions, or any other method 

available to it based on its existing 

systems. Under the proposed rule, a 

covered financial institution that 

suspects or has reason to suspect use of 

a correspondent account to process 

transactions involving BPA must take 

all appropriate steps to attempt to verify 

and prevent such use, including a 

notification to its correspondent account 

holder requesting further information 

regarding a transaction, requesting 

corrective action to address the 

perceived risk and, where necessary, 

terminating the correspondent account. 

A covered financial institution may reestablish an account closed under the 

rule if it determines that the account 

will not be used to process transactions 

involving BPA. FinCEN specifically 

solicits comments on the requirement 

under the proposed rule that covered 

financial institutions take reasonable 

steps to prevent any processing of 

transactions involving BPA. 

3. Recordkeeping and Reporting 

Section 1010.662(b)(3) of the 

proposed rule would clarify that 

paragraph (b) of the rule does not 

impose any reporting requirement upon 

any covered financial institution that is 

not otherwise required by applicable 

law or regulation. A covered financial 

institution must, however, document its 

compliance with the requirement that it 

notify those correspondent account 

holders that the covered financial 

institution knows, or has reason to 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Proposed Rules 13307 

4Table of Small Business Size Standards 

Matched to North American Industry Classification 

System Codes, Small Business Administration Size 

Standards (SBA Jan. 22, 2014) [hereinafter SBA Size 

Standards]. 

5Federal Deposit Insurance Corporation, Find an 

Institution, http://www2.fdic.gov/idasp/main.asp; 

select Size or Performance: Total Assets, type Equal 

or less than $: ‘‘500000’’ and select Find. 

6National Credit Union Administration, Credit 

Union Data, http://webapps.ncua.gov/customquery/ 

; select Search Fields: Total Assets, select Operator: 

Less than or equal to, type Field Values: 

‘‘500000000’’ and select Go. 

7 17 CFR 240.0–10(c). 

8 76 FR 37572, 37602 (June 27, 2011) (the SEC 

estimates 871 small broker-dealers of the 5,063 total 

registered broker-dealers). 

9 47 FR 18618, 18619 (Apr. 30, 1982). 

10SBA Size Standards at 28. 

11 17 CFR 270.0–10. 

12 78 FR 23637, 23658 (April 19, 2013). 

know, provide services to BPA, that 

such correspondents may not process 

any transaction involving BPA through 

the correspondent account maintained 

at the covered financial institution. 

IV. Request for Comments 

FinCEN invites comments on all 

aspects of the proposal to impose the 

fifth special measure against BPA and 

specifically invites comments on the 

following matters: 

1. The impact of the proposed special 

measure upon legitimate transactions 

using BPA involving, in particular, U.S. 

persons and entities; foreign persons, 

entities, and governments; and 

multilateral organizations doing 

legitimate business. 

2. The form and scope of the notice 

to certain correspondent account 

holders that would be required under 

the rule; 

3. The appropriate scope of the 

proposed requirement for a covered 

financial institution to take reasonable 

steps to identify any use of its 

correspondent accounts to process 

transactions involving BPA; and 

4. The appropriate steps a covered 

financial institution should take once it 

identifies use of one of its 

correspondent accounts to process 

transactions involving BPA. 

V. Regulatory Flexibility Act 

When an agency issues a rulemaking 

proposal, the Regulatory Flexibility Act 

(‘‘RFA’’) requires the agency to ‘‘prepare 

and make available for public comment 

an initial regulatory flexibility analysis’’ 

that will ‘‘describe the impact of the 

proposed rule on small entities.’’ (5 

U.S.C. 603(a)). Section 605 of the RFA 

allows an agency to certify a rule, in lieu 

of preparing an analysis, if the proposed 

rulemaking is not expected to have a 

significant economic impact on a 

substantial number of small entities. 

A. Proposal To Prohibit Covered 

Financial Institutions From Opening or 

Maintaining Correspondent Accounts 

With Certain Foreign Banks Under the 

Fifth Special Measure 

1. Estimate of the Number of Small 

Entities to Whom the Proposed Fifth 

Special Measure Will Apply 

For purposes of the RFA, both banks 

and credit unions are considered small 

entities if they have less than 

$500,000,000 in assets.4 Of the 

estimated 7,000 banks, 80 percent have 

less than $500,000,000 in assets and are 

considered small entities.5 Of the 

estimated 7,000 credit unions, 94 

percent have less than $500,000,000 in 

assets.6

Broker-dealers are defined in 31 CFR 

1010.100(h) as those broker-dealers 

required to register with the Securities 

and Exchange Commission (‘‘SEC’’). 

Because FinCEN and the SEC regulate 

substantially the same population, for 

the purposes of the RFA, FinCEN relies 

on the SEC’s definition of small 

business as previously submitted to the 

Small Business Administration 

(‘‘SBA’’). The SEC has defined the term 

‘‘small entity’’ to mean a broker or 

dealer that: ‘‘(1) had total capital (net 

worth plus subordinated liabilities) of 

less than $500,000 on the date in the 

prior fiscal year as of which its audited 

financial statements, were prepared 

pursuant to Rule 17a–5(d) or, if not 

required to file such statements, a 

broker or dealer that had total capital 

(net worth plus subordinated debt) of 

less than $500,000 on the last business 

day of the preceding fiscal year (or in 

the time that it has been in business if 

shorter); and (2) is not affiliated with 

any person (other than a natural person) 

that is not a small business or small 

organization as defined in this 

release.’’ 7 Based on SEC estimates, 17 

percent of broker-dealers are classified 

as ‘‘small’’ entities for purposes of the 

RFA.8

Futures commission merchants 

(‘‘FCMs’’) are defined in 31 CFR 

1010.100(x) as those FCMs that are 

registered or required to be registered as 

a FCM with the Commodity Futures 

Trading Commission (‘‘CFTC’’) under 

the Commodity Exchange Act (‘‘CEA’’), 

except persons who register pursuant to 

section 4f(a)(2) of the CEA, 7 U.S.C. 

6f(a)(2). Because FinCEN and the CFTC 

regulate substantially the same 

population, for the purposes of the RFA, 

FinCEN relies on the CFTC’s definition 

of small business as previously 

submitted to the SBA. In the CFTC’s 

‘‘Policy Statement and Establishment of 

Definitions of ‘Small Entities’ for 

Purposes of the Regulatory Flexibility 

Act,’’ the CFTC concluded that 

registered FCMs should not be 

considered to be small entities for 

purposes of the RFA.9 The CFTC’s 

determination in this regard was based, 

in part, upon the obligation of registered 

FCMs to meet the capital requirements 

established by the CFTC. 

For purposes of the RFA, an 

introducing broker-commodities dealer 

is considered small if it has less than 

$35,500,000 in gross receipts 

annually.10 Based on information 

provided by the National Futures 

Association (‘‘NFA’’), 95 percent of 

introducing brokers-commodities 

dealers have less than $35.5 million in 

Adjusted Net Capital and are considered 

to be small entities. 

Mutual funds are defined in 31 CFR 

1010.100(gg) as those investment 

companies that are open-end investment 

companies that are registered or are 

required to register with the SEC. 

Because FinCEN and the SEC regulate 

substantially the same population, for 

the purposes of the RFA, FinCEN relies 

on the SEC’s definition of small 

business as previously submitted to the 

SBA. The SEC has defined the term 

‘‘small entity’’ under the Investment 

Company Act to mean ‘‘an investment 

company that, together with other 

investment companies in the same 

group of related investment companies, 

has net assets of $50 million or less as 

of the end of its most recent fiscal 

year.’’ 11 Based on SEC estimates, 7 

percent of mutual funds are classified as 

‘‘small entities’’ for purposes of the RFA 

under this definition.12

As noted above, 80 percent of banks, 

94 percent of credit unions, 17 percent 

of broker-dealers, 95 percent of 

introducing brokers-commodities, zero 

FCMs, and 7 percent of mutual funds 

are small entities. The limited number 

of foreign banking institutions with 

which BPA maintains or will maintain 

accounts will likely limit the number of 

affected covered financial institutions to 

the largest U.S. banks, which actively 

engage in international transactions. 

Thus, the prohibition on maintaining 

correspondent accounts for foreign 

banking institutions that engage in 

transactions involving BPA under the 

fifth special measure would not impact 

a substantial number of small entities. 

2. Description of the Projected Reporting 

and Recordkeeping Requirements of the 

Fifth Special Measure 

The proposed fifth special measure 

would require covered financial 

institutions to provide a notification 


tkelley on DSK3SPTVN1PROD with PROPOSALS
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intended to aid cooperation from foreign 

correspondent account holders in 

preventing transactions involving BPA 

from accessing the U.S. financial 

system. FinCEN estimates that the 

burden on institutions providing this 

notice is one hour. Covered financial 

institutions would also be required to 

take reasonable measures to detect use 

of their correspondent accounts to 

process transactions involving BPA. All 

U.S. persons, including U.S. financial 

institutions, currently must exercise 

some degree of due diligence to comply 

with OFAC sanctions and suspicious 

activity reporting requirements. The 

tools used for such purposes, including 

commercially available software used to 

comply with the economic sanctions 

programs administered by OFAC, can 

easily be modified to identify 

correspondent accounts with foreign 

banks that involve BPA. Thus, the 

special due diligence that would be 

required by the imposition of the fifth 

special measure—i.e., the one-time 

transmittal of notice to certain 

correspondent account holders, the 

screening of transactions to identify any 

use of correspondent accounts, and the 

implementation of risk-based measures 

to detect use of correspondent 

accounts—would not impose a 

significant additional economic burden 

upon small U.S. financial institutions. 

B. Certification 

For these reasons, FinCEN certifies 

that the proposals contained in this 

rulemaking would not have a significant 

impact on a substantial number of small 

businesses. 

FinCEN invites comments from 

members of the public who believe 

there would be a significant economic 

impact on small entities from the 

imposition of the fifth special measure 

regarding BPA. 

VI. Paperwork Reduction Act 

The collection of information 

contained in this proposed rule is being 

submitted to the Office of Management 

and Budget for review in accordance 

with the Paperwork Reduction Act of 

1995 (44 U.S.C. 3507(d)). Comments on 

the collection of information should be 

sent to the Desk Officer for the 

Department of Treasury, Office of 

Information and Regulatory Affairs, 

Office of Management and Budget, 

Paperwork Reduction Project (1506), 

Washington, DC 20503 (or by email to 

oira submission@omb.eop.gov) with a 

copy to FinCEN by mail or email at the 

addresses previously specified. 

Comments should be submitted by one 

method only. Comments on the 

collection of information should be 

received by May 12, 2015. In accordance 

with the requirements of the Paperwork 

Reduction Act and its implementing 

regulations, 5 CFR 1320, the following 

information concerning the collection of 

information as required by 31 CFR 

1010.662 is presented to assist those 

persons wishing to comment on the 

information collection. 

A. Proposed Information Collection 

Under the Fifth Special Measure 

The notification requirement in 

section 1010.662(b)(2)(i) is intended to 

aid cooperation from correspondent 

account holders in denying BPA access 

to the U.S. financial system. The 

information required to be maintained 

by section 1010.662(b)(3)(i) would be 

used by federal agencies and certain 

self-regulatory organizations to verify 

compliance by covered financial 

institutions with the provisions of 31 

CFR 1010.662. The collection of 

information would be mandatory. 

Description of Affected Financial 

Institutions: Banks, broker-dealers in 

securities, futures commission 

merchants and introducing brokerscommodities, and mutual funds. 

Estimated Number of Affected 

Financial Institutions: 5,000. 

Estimated Average Annual Burden in 

Hours Per Affected Financial 

Institution: The estimated average 

burden associated with the collection of 

information in this proposed rule is one 

hour per affected financial institution. 

Estimated Total Annual Burden: 

5,000 hours. 

FinCEN specifically invites comments 

on: (a) Whether the proposed collection 

of information is necessary for the 

proper performance of the mission of 

FinCEN, including whether the 

information would have practical 

utility; (b) the accuracy of FinCEN’s 

estimate of the burden of the proposed 

collection of information; (c) ways to 

enhance the quality, utility, and clarity 

of the information required to be 

maintained; (d) ways to minimize the 

burden of the required collection of 

information, including through the use 

of automated collection techniques or 

other forms of information technology; 

and (e) estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to report the information. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid OMB control 

number. 

VII. Executive Order 12866 

Executive Orders 12866 and 13563 

direct agencies to assess costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. It has been 

determined that the proposed rule is not 

a ‘‘significant regulatory action’’ for 

purposes of Executive Order 12866. 

List of Subjects in 31 CFR Part 1010 

Administrative practice and 

procedure, banks and banking, brokers, 

counter-money laundering, counterterrorism, foreign banking. 

Authority and Issuance 

For the reasons set forth in the 

preamble, part 1010, chapter X of title 

31 of the Code of Federal Regulations, 

is proposed to be amended as follows: 

■ 1. The authority citation for part 1010 

is revised to read as follows: 

Authority: 12 U.S.C. 1829b and 1951–1959; 

31 U.S.C. 5311–5314, 5316–5332 Title III, 

secs. 311, 312, 313, 314, 319, 326, 352, Pub. 

L. 107–56, 115 Stat. 307. 

■ 2. Add § 1010.662 to read as follows: 

§ 1010.662 Special measures against 

Banca Privada d’Andorra. 

(a) Definitions. For purposes of this 

section: 

(1) Banca Privada d’Andorra means 

all branches, offices, and subsidiaries of 

Banca Privada d’Andorra wherever 

located. 

(2) Correspondent account has the 

same meaning as provided in 

§ 1010.605(c)(1)(ii). 

(3) Covered financial institution has 

the same meaning as provided in 

§ 1010.605(e)(1). 

(4) Subsidiary means a company of 

which more than 50 percent of the 

voting stock or analogous equity interest 

is owned by another company. 

(b) Prohibition on accounts and due 

diligence requirements for covered 

financial institutions—(1) Prohibition 

on use of correspondent accounts. A 

covered financial institution shall 

terminate any correspondent account 

that is established, maintained, 

administered, or managed in the United 

States for, or on behalf of, Banca Privada 

d’Andorra. 

(2) Special due diligence of 

correspondent accounts to prohibit use. 

(i) A covered financial institution shall 

apply special due diligence to its foreign 

correspondent accounts that is 

reasonably designed to guard against 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 80, No. 49 / Friday, March 13, 2015 / Proposed Rules 13309 

their use to process transactions 

involving Banca Privada d’Andorra. At 

a minimum, that special due diligence 

must include: 

(A) Notifying those foreign 

correspondent account holders that the 

covered financial institution knows or 

has reason to know provide services to 

Banca Privada d’Andorra that such 

correspondents may not provide Banca 

Privada d’Andorra with access to the 

correspondent account maintained at 

the covered financial institution; and 

(B) Taking reasonable steps to identify 

any use of its foreign correspondent 

accounts by Banca Privada d’Andorra, 

to the extent that such use can be 

determined from transactional records 

maintained in the covered financial 

institution’s normal course of business. 

(ii) A covered financial institution 

shall take a risk-based approach when 

deciding what, if any, other due 

diligence measures it reasonably must 

adopt to guard against the use of its 

foreign correspondent accounts to 

process transactions involving Banca 

Privada d’Andorra. 

(iii) A covered financial institution 

that obtains knowledge that a foreign 

correspondent account may be being 

used to process transactions involving 

Banca Privada d’Andorra shall take all 

appropriate steps to further investigate 

and prevent such access, including the 

notification of its correspondent account 

holder under paragraph (b)(2)(i)(A) and, 

where necessary, termination of the 

correspondent account. 

(3) Recordkeeping and reporting. (i) A 

covered financial institution is required 

to document its compliance with the 

notice requirement set forth in 

paragraph (b)(2)(i)(A) of this section. 

(ii) Nothing in this paragraph (b) shall 

require a covered financial institution to 

report any information not otherwise 

required to be reported by law or 

regulation. 

Dated: March 6, 2015. 

Jennifer Shasky Calvery, 

Financial Crimes Enforcement Network. 

[FR Doc. 2015–05724 Filed 3–12–15; 8:45 am] 

BILLING CODE 4810–2–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2014–1044] 

RIN 1625–AA00 

Safety Zone; Shore (Belt) Parkway 

Bridge Construction, Mill Basin; 

Brooklyn, NY 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

establish a safety zone on the navigable 

waters of Mill Basin surrounding the 

Belt Parkway Bridge. In response to a 

planned Belt Parkway Bridge 

construction project, this rule would 

allow the Coast Guard to prohibit all 

vessel traffic through the safety zone 

during bridge replacement operations, 

both planned and unforeseen, that could 

pose an imminent hazard to persons and 

vessels operating in the area. This rule 

is necessary to provide for the safety of 

life in the vicinity of the construction of 

the Belt Parkway Bridge. 

DATES: Comments and related material 

must be received by the Coast Guard on 

or before May 12, 2015. 

Requests for public meetings must be 

received by the Coast Guard on or before 

April 3, 2015. 

ADDRESSES: You may submit comments 

identified by docket number using any 

one of the following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Fax: (202) 493–2251. 

(3) Mail or Delivery: Docket 

Management Facility (M–30), U.S. 

Department of Transportation, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue SE., 

Washington, DC 20590–0001. Deliveries 

accepted between 9 a.m. and 5 p.m., 

Monday through Friday, except federal 

holidays. The telephone number is 

(202)366–9329. 

See the ‘‘Public Participation and 

Request for Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section 

below for further instructions on 

submitting comments. To avoid 

duplication, please use only one of 

these three methods. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, contact 

LT Hannah Eko, Coast Guard Sector 

New York; telephone (718) 354–4114, or 

email hannah.o.eko@uscg.mil. If you 

have questions on viewing or submitting 

material to the docket, call Cheryl 

Collins, Program Manager, Docket 

Operations, telephone (202) 366–9826. 

SUPPLEMENTARY INFORMATION: 

Table of Acronyms 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of Proposed Rulemaking 

A. Public Participation and Request for 

Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments and related materials. All 

comments received will be posted 

without change to http://

www.regulations.gov and will include 

any personal information you have 

provided. 

1. Submitting Comments 

If you submit a comment, please 

include the docket number for this 

rulemaking, indicate the specific section 

of this document to which each 

comment applies, and provide a reason 

for each suggestion or recommendation. 

You may submit your comments and 

material online at http://

www.regulations.gov, or by fax, mail, or 

hand delivery, but please use only one 

of these means. If you submit a 

comment online, it will be considered 

received by the Coast Guard when you 

successfully transmit the comment. If 

you fax, hand deliver, or mail your 

comment, it will be considered as 

having been received by the Coast 

Guard when it is received at the Docket 

Management Facility. We recommend 

that you include your name and a 

mailing address, an email address, or a 

telephone number in the body of your 

document so that we can contact you if 

we have questions regarding your 

submission. 

To submit your comment online, go to 

http://www.regulations.gov, type the 

docket number [USCG–2014–1044] in 

the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on ‘‘Submit a 

Comment’’ on the line associated with 

this rulemaking. 

If you submit your comments by mail 

or hand delivery, submit them in an 

unbound format, no larger than 81⁄2 by 

11 inches, suitable for copying and 

electronic filing. If you submit 

comments by mail and would like to 

know that they reached the Facility, 

please enclose a stamped, self-addressed 

postcard or envelope. We will consider 

all comments and material received 

during the comment period and may 

change the rule based on your 

comments. 


tkelley on DSK3SPTVN1PROD with PROPOSALS