Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Rules and Regulations 51757 

‘‘significant regulatory action’’ under 

Executive Order 12866; (2) is not a 

‘‘significant rule’’ under DOT 

Regulatory Policies and Procedures (44 

FR 11034; February 26, 1979); and (3) 

does not warrant preparation of a 

regulatory evaluation as the anticipated 

impact is so minimal. Since this is a 

routine matter that only affects air traffic 

procedures and air navigation, it is 

certified that this rule, when 

promulgated, does not have a significant 

economic impact on a substantial 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

Environmental Review 

The FAA has determined that this 

action qualifies for categorical exclusion 

under the National Environmental 

Policy Act in accordance with FAA 

Order 1050.1F, ‘‘Environmental 

Impacts: Policies and Procedures,’’ 

paragraph 5–6.5.a. This airspace action 

is not expected to cause any potentially 

significant environmental impacts, and 

no extraordinary circumstances exist 

that warrant preparation of an 

environmental assessment. 

Lists of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

Adoption of the Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR part 71 as follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g); 40103, 

40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 

1959–1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.11B, 

Airspace Designations and Reporting 

Points, dated August 3, 2017, and 

effective September 15, 2017, is 

amended as follows: 

Paragraph 6005 Class E Airspace Areas 

Extending Upward From 700 Feet or More 

Above the Surface of the Earth. 

* * * * * 

ASW TX E5 Cisco, TX [New] 

Gregory M. Simmons Memorial Airport, TX 

(Lat. 32°21′57′′ N., long. 99°01′25′′ W.) 

That airspace extending upward from 700 

feet above the surface within a 6.6-mile 

radius of Gregory M. Simmons Memorial 

Airport. 

Issued in Fort Worth, Texas, on November 

1, 2017. 

Walter Tweedy, 

Acting Manager, Operations Support Group, 

ATO Central Service Center. 

[FR Doc. 2017–24222 Filed 11–7–17; 8:45 am] 

BILLING CODE 4910–13–P 

TENNESSEE VALLEY AUTHORITY 

18 CFR Part 1301 

Privacy Act Regulations 

AGENCY: Tennessee Valley Authority 

(TVA). 

ACTION: Final rule. 

SUMMARY: The Tennessee Valley 

Authority issues this final rule 

amending its Privacy Act (PA) 

regulation to redesignate section 

numbering. 

DATES: This rule is effective November 

8, 2017. 

ADDRESSES: Tennessee Valley Authority, 

400 W. Summit Hill Drive, Knoxville, 

TN 37902–1401. 

FOR FURTHER INFORMATION CONTACT: 

Christopher A. Marsalis, Senior Privacy 

Program Manager, Tennessee Valley 

Authority, 400 W. Summit Hill Drive 

(WT 5D), Knoxville, Tennessee 47902– 

1401; telephone (865) 632–2467 or by 

email to camarsalis@tva.gov. 

SUPPLEMENTARY INFORMATION: TVA’s 

Privacy Act Regulations originally were 

published at §§ 1301.11 through 

1301.24. With this amendment TVA is 

redesignating these sections to be 

numbered §§ 1301.21 through 1301.34. 

Lists of Subjects in 18 CFR Part 1301 

Freedom of Information, Privacy, 

Government in the Sunshine. 

For the reasons stated in the 

preamble, TVA amends 18 CFR part 

1301 as follows: 

PART 1301—PROCEDURES 

■ 1. The authority citation for part 1301 

is revised to read as follows: 

Authority: 5 U.S.C. 552 and 552a; 16 

U.S.C. 831–831dd. 

§ § 1301.20 through 1301.24 [Removed] 

■ 2. Amend subpart B by removing 

§§ 1301.20 through 1301.24. 

§ § 1301.11 through 1301.24 [Redesignated 

as §§ 1301.21 through 1301.34] 

■ 3. Amend subpart B, by redesignating 

§§ 1301.11 through 1301.24 as 

§§ 1301.21 through 1301.34 as 

demonstrated in the following table: 

Subpart B—Privacy Act 

Redesignate §§ 1301.11 through 

1301.24 as follows: 

Old section New section 

1301.11 1301.21 

1301.12 1301.22 

1301.13 1301.23 

1301.14 1301.24 

1301.15 1301.25 

1301.16 1301.26 

1301.17 1301.27 

1301.18 1301.28 

1301.19 1301.29 

1301.20 1301.30 

1301.21 1301.31 

1301.22 1301.32 

1301.23 1301.33 

1301.24 1301.34 

§ 1301.21 [Amended] 

■ 4. Amend newly redesignated 

§ 1301.21 as follows: 

■ a. In paragraph (a), by removing 

‘‘1301.11 to 1301.24’’ and adding in its 

place ‘‘1301.21 to 1301.34’’. 

■ b. In paragraph (b), by removing 

‘‘1301.11 to 1301.24’’ and adding in its 

place ‘‘1301.21 to 1301.34’’. 

§ 1301.22 [Amended] 

■ 5. Amend newly redesignated 

§ 1301.22 as follows: 

■ a. In the introductory text, by 

removing ‘‘1301.11 to 1301.24’’ and 

adding in its place ‘‘1301.21 to 

1301.34’’. 

■ b. In paragraph (e), by removing 

‘‘1301.19(a)’’ and adding in its place 

‘‘1301.29(a)’’. 

■ c. In paragraph (f), by removing 

‘‘1301.19’’ and adding in its place 

‘‘1301.29’’. 

§ 1301.23 [Amended] 

■ 6. Amend newly redesignated 

§ 1301.23 by wrapping the undesignated 

sentence following paragraph (b)(6) into 

paragraph (b)(6), removing ‘‘1301.14’’ 

and adding in its place ‘‘1301.24’’, and 

removing ‘‘1301.14(g)’’ and adding in its 

place ‘‘1301.24(g)’’. 

§ 1301.24 [Amended] 

■ 7. Amend newly designated § 1301.24 

in paragraph (a) by removing ‘‘1301.15’’ 

and adding in its place ‘‘1301.25’’ and 

removing ‘‘1301.13’’ and adding in its 

place ‘‘1301.23’’. 

§ 1301.25 [Amended] 

■ 8. Amend newly redesignated 

§ 1301.25 as follows: 

■ a. In paragraph (a), by removing 

‘‘1301.21’’ and adding in its place 

‘‘1301.31’’. 

■ b. In paragraph (b), removing 

‘‘1301.14’’ and adding in its place 


ethrower on DSK3G9T082PROD with RULES
51758 Federal Register / Vol. 82, No. 215 / Wednesday, November 8, 2017 / Rules and Regulations 

1Therefore, references to the authority of the 

Secretary of the Treasury under Section 311 of the 

USA PATRIOT Act apply equally to the Director of 

FinCEN. 2 81 FR 78715 (November 9, 2016). 

‘‘1301.24’’ and removing ‘‘1301.21’’ and 

adding in its place ‘‘1301.31’’. 

§ 1301.27 [Amended] 

■ 9. Amend newly redesignated 

§ 1301.27 as follows: 

■ a. In paragraph (b), by removing 

‘‘1301.14’’ and adding in its place 

‘‘1301.24’’. 

■ b. In paragraph (d), by removing 

‘‘1301.11 to 1301.24’’ and adding in its 

place ‘‘1301.21 to 1301.34’’. 

§ 1301.30 [Amended] 

■ 10. Amend newly redesignated 

§ 1301.30 by removing ‘‘1301.11 to 

1301.24’’ and adding in its place 

‘‘1301.21 to 1301.34’’. 

Christopher A. Marsalis, 

Senior Privacy Program Manager Enterprise 

Information Security & Policy, Tennessee 

Valley Authority. 

[FR Doc. 2017–24300 Filed 11–7–17; 8:45 am] 

BILLING CODE 8120–08–P 

DEPARTMENT OF THE TREASURY 

Financial Crimes Enforcement Network 

31 CFR Part 1010 

RIN 1506–AB38 

Imposition of Special Measure Against 

Bank of Dandong as a Financial 

Institution of Primary Money 

Laundering Concern 

AGENCY: Financial Crimes Enforcement 

Network (‘‘FinCEN’’), Treasury. 

ACTION: Final rule. 

SUMMARY: FinCEN is issuing this final 

rule to prohibit covered U.S. financial 

institutions from opening or 

maintaining a correspondent account 

for, or on behalf of, Bank of Dandong 

Co., Ltd. (Bank of Dandong) as a 

financial institution of primary money 

laundering concern pursuant to Section 

311 of the USA PATRIOT Act (Section 

311). The rule further requires covered 

U.S. financial institutions to take 

reasonable steps not to process 

transactions for the correspondent 

account of a foreign banking institution 

in the United States if such a transaction 

involves Bank of Dandong. It also 

requires covered institutions to apply 

special due diligence to their foreign 

correspondent accounts that is 

reasonably designed to guard against 

their use to process transactions 

involving Bank of Dandong. 

DATES: This final rule is effective 

December 8, 2017. 

FOR FURTHER INFORMATION CONTACT: The 

FinCEN Resource Center, (800) 949– 

2732. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. 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, 

Public Law 107–56 (the USA PATRIOT 

Act). Title III of the USA PATRIOT Act 

amended the anti-money laundering 

(AML) 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.1

Section 311 of the USA PATRIOT Act 

(Section 311), codified at 31 U.S.C. 

5318A, grants FinCEN the authority, 

upon finding that reasonable grounds 

exist for concluding that a foreign 

jurisdiction, 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 protect 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. Special measures one 

through four, codified at 31 U.S.C. 

5318A(b)(1)–(b)(4), impose additional 

recordkeeping, information collection, 

and reporting requirements on covered 

U.S. financial institutions. The fifth 

special measure, codified at 31 U.S.C. 

5318A(b)(5), allows FinCEN 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. Section 311 identifies 

factors for the Secretary to consider and 

requires consultations with certain 

Federal agencies before making a 

finding that reasonable grounds exist for 

concluding that a jurisdiction, 

institution, class of transactions or type 

of account is of primary money 

laundering concern. The statute also 

provides similar procedures, including 

factors to consider and consultation 

requirements for selecting and imposing 

special measures. 

II. Background on North Korea 

Sanctions Evasion and Bank of 

Dandong 

A. North Korea’s Evasion of Sanctions 

North Korea continues to advance its 

nuclear and ballistic missile programs 

despite international censure and U.S. 

and international sanctions. In response 

to North Korea’s continued actions to 

proliferate weapons of mass destruction 

(WMDs), the United Nations Security 

Council (UNSC) has issued a number of 

United Nations Security Council 

resolutions (UNSCRs), including 1718 

(2006), 1874 (2009), 2087 (2013), 2094 

(2013), 2270 (2016), 2321 (2016), 2371 

(2017), and 2375 (2017) that restrict 

North Korea’s financial and operational 

activities related to its nuclear and 

ballistic missile programs. Additionally, 

Executive Orders 13466, 13551, 13570, 

13687, 13722, and 13810 have been 

issued to impose economic sanctions on 

North Korea pursuant to the 

International Emergency Economic 

Powers Act, and the U.S. Department of 

the Treasury has designated North 

Korean persons for asset freezes 

pursuant to other Executive Orders, 

such as Executive Order 13382, which 

targets WMD proliferators worldwide. 

To further protect the United States 

from North Korea’s illicit financial 

activity, FinCEN has issued multiple 

advisories since 2005 detailing its 

concerns surrounding the deceptive 

financial practices used by North Korea 

and North Korean entities and called on 

U.S. financial institutions to take 

appropriate risk mitigation measures. 

Moreover, on November 9, 2016, 

FinCEN finalized a rule under Section 

311 prohibiting the opening or 

maintaining of correspondent accounts 

in the United States by covered 

financial institutions for, or on behalf of, 

North Korean banks.2 The final rule also 

requires U.S. financial institutions to 

apply additional due diligence measures 

in order to prevent North Korean 

financial institutions from gaining 

improper indirect access to U.S. 

correspondent accounts. The notice of 

finding associated with the final rule 

highlighted North Korea’s use of statecontrolled financial institutions and 


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