Imposition of Special Measure against Lebanese Canadian Bank SAL as a financial institution of primary money laundering concern

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. northwest edge of V–465, southwest on V– 465 to the intersection of V–465 and long. 112°00′00″ W., south along long. 112°00′00″ W., to the north edge of V–4, west on V–4 to the 24.4 mile radius of the Burley VOR/ DME, thence counterclockwise via the 24.4- mile radius to the south edge of V–269, thence east along the south edge of V–269 to the 25.3-mile radius of the Pocatello VORTAC, thence clockwise via the 25.3-mile radius to lat. 43°05′46″ N., long. 113°08′15″ W.; to lat. 43°20′30″ N., long. 112°45′33″ W.; to lat. 43°32′00″ N., long. 112°35′03″ W.; to lat. 43°50′20″ N., long. 112°30′03″ W., thence to the point of beginning; excluding that airspace within Federal airways, the Jackson Hole Airport, WY, the Rexburg/Madison County Airport, ID, and the West Yellowstone Airport, MT, Class E airspace areas. Issued in Seattle, Washington, on February 9, 2011. Christine Mellon, Acting Manager, Operations Support Group, Western Service Center. [FR Doc. 2011–3557 Filed 2–16–11; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF THE TREASURY 31 CFR Part 103 RIN 1506–AB11 Financial Crimes Enforcement Network; Imposition of Special Measure Against the Lebanese Canadian Bank SAL as a Financial Institution of Primary Money Laundering Concern AGENCY: Financial Crimes Enforcement Network, Treasury (‘‘FinCEN’’), Treasury. ACTION: Notice of proposed rulemaking. SUMMARY: In a notice of finding published elsewhere in this issue of the Federal Register, the Secretary of the Treasury, through his delegate, the Director of FinCEN, found that reasonable grounds exist for concluding that the Lebanese Canadian Bank SAL (‘‘LCB’’) is a financial institution of primary money laundering concern pursuant to 31 U.S.C. 5318A. FinCEN is issuing this notice of proposed rulemaking to impose a special measure against LCB. DATES: Written comments on the notice of proposed rulemaking must be submitted on or before April 18, 2011. ADDRESSES: You may submit comments, identified by RIN 1506–XXX by any of the following methods:

• Federal e-rulemaking portal: http://
  www.regulations.gov. Follow the instructions for submitting comments.
• E-mail:
  regcomments@fincen.treas.gov. Include RIN 1506–XXX in the subject line of the message.
• Mail: The Financial Crimes
  Enforcement Network, P.O. Box 39, Vienna, VA 22183. Include RIN 1506– XXX in the body of the text. Instructions. It is preferable for comments to be submitted by electronic mail because paper mail in the Washington, DC area may be delayed. Please submit comments by one method only. All submissions received must include the agency name and the Regulatory Information Number (RIN) for this rulemaking. All comments received will be posted without change to http://www.fincen.gov, including any personal information provided. Comments may be inspected at FinCEN between 10 a.m. and 4 p.m., in the FinCEN reading room in Washington, DC. Persons wishing to inspect the comments submitted must request an appointment by telephoning (202) 354– 6400 (not a toll-free number). FOR FURTHER INFORMATION CONTACT:
  Regulatory Policy and Programs Division, FinCEN, (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 (the ‘‘USA PATRIOT Act’’), Public Law 107–56. Title III of the USA PATRIOT Act amended 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 and 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 part 103. 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’’) added section 5318A to the BSA, granting the Secretary 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’’ against the primary money laundering concern. Section 311 identifies factors for the Secretary to consider and Federal agencies to consult before the Secretary may conclude that a jurisdiction, institution, class of transaction, or type of account is of primary money laundering concern. The statute also provides similar procedures, i.e., factors and consultation requirements, for selecting the specific special measures to be imposed against the primary money laundering concern. Taken as a whole, section 311 provides the Secretary with a range of options that can be adapted to target specific money laundering and terrorist financing concerns most effectively. These options give the Secretary the authority to bring additional pressure on those jurisdictions and institutions that pose money laundering threats. Through the imposition of various special measures, the Secretary can gain more information about the jurisdictions, institutions, transactions, or accounts of concern; can more effectively monitor the respective jurisdictions, institutions, transactions, or accounts; or can protect U.S. financial institutions from involvement with jurisdictions, institutions, transactions, or accounts that are of money laundering concern. Before making a finding that reasonable grounds exist for concluding that a foreign financial institution is of primary money laundering concern, the Secretary is required to consult with both the Secretary of State and the Attorney General. The Secretary is also required by section 311 to consider ‘‘such information as the Secretary determines to be relevant, including the following potentially relevant factors:
• The extent to which such financial
  institution is used to facilitate or promote money laundering in or through the jurisdiction;
• The extent to which such financial
  institution is used for legitimate business purposes in the jurisdiction; and
• The extent to which the finding that
  the institution is of primary money laundering concern is sufficient to ensure, with respect to transactions involving the institution operating in the jurisdiction, that the purposes of the BSA continue to be fulfilled, and to guard against international money laundering and other financial crimes. If the Secretary determines that reasonable grounds exist for concluding that a financial institution is of primary money laundering concern, the Secretary must determine the appropriate special measure(s) to address the specific money laundering risks. Section 311 provides a range of