Imposition of Special Measure Against the Islamic Republic of Iran as a Jurisdiction 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. individual also holds an interest in the partnership that is not an interest in a limited partnership as a limited partner (as defined in paragraph (e)(3)(i) of this
section), such as a state-law general
partnership interest, at all times during the entity’s taxable year ending with or within the individual’s taxable year (or the portion of the entity’s taxable year during which the individual (directly or indirectly) owns such interest in a limited partnership as a limited partner). (4) Effective/applicability date. This
section applies to taxable years
beginning on or after the date of publication of the Treasury decision adopting these rules as a final regulation in the Federal Register.

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Par. 4. Section 1.469–5T paragraph (e) is revised to read as follows:
§ 1.469–5T Material participation (temporary).

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(e) Treatment of Limited Partners. [Reserved]. See § 1.469–5(e) for rules relating to this paragraph (e).

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Par. 5. Section 1.469–9 paragraph (f)(1) is revised to read as follows:
§ 1.469–9 Rules for certain rental real estate activities.

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(f) Limited partnership interests in rental real estate activities—(1) In general. If a taxpayer elects under paragraph (g) of this section to treat all interests in rental real estate as a single rental real estate activity, and at least one interest in rental real estate is held by the taxpayer as an interest in a limited partnership as a limited partner (within the meaning of § 1.469–5(e)(3)), the combined rental real estate activity of the taxpayer will be treated as an interest in a limited partnership as a limited partner for purposes of determining material participation. Accordingly, the taxpayer will not be treated under this section as materially participating in the combined rental real estate activity unless the taxpayer materially participates in the activity under the tests listed in § 1.469–5(e)(2) (dealing with the tests for determining the material participation of a limited partner).

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Steven T. Miller,
Deputy Commissioner for Services and Enforcement. [FR Doc. 2011–30611 Filed 11–25–11; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY 31 CFR Chapter X RIN 1506–AB16 Financial Crimes Enforcement Network; Amendment to the Bank Secrecy Act Regulations—Imposition of Special Measure Against the Islamic Republic of Iran as a Jurisdiction 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 Islamic Republic of Iran (‘‘Iran’’) is a jurisdiction 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 Iran. DATES: Written comments on the notice of proposed rulemaking must be submitted on or before January 27, 2012. ADDRESSES: You may submit comments, identified by RIN 1506–AB16, by any of the following methods:

• Federal E-rulemaking Portal:
  http:/www.regulations.gov. Follow the instructions for submitting comments. Include 1506–AB16 in the submission. Refer to Docket Number FINCEN–2011– 0008.
• Mail: The Financial Crimes
  Enforcement Network, P.O. Box 39, Vienna, VA 22183. Include RIN 1506– AB16 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 as soon as possible 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 FUTHER INFORMATION CONTACT: The FinCEN regulatory helpline at (800) 949–2732 and select Option 6. 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
    amends the anti-money laundering provisions of the Bank Secrecy Act (‘‘BSA’’), codified at 12 U.S.C. 1829b and 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
    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’’) 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, pmangrum on DSK3VPTVN1PROD with PROPOSALS-1