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|FOR IMMEDIATE RELEASE
April 27, 2011
|CONTACT: Steve Hudak
FinCEN to Implement CISADA Provision
Seeks U.S. Banks’ Assistance in Uncovering Iranian Financial Ties
VIENNA, Va. – The Financial Crimes Enforcement Network (FinCEN) today proposed regulations to implement section 104(e) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA) to impose a reporting requirement that would be invoked, as necessary, to elicit information valuable in the implementation of CISADA.
The proposed regulations would require a U.S. bank to report to FinCEN the following information about foreign banks for which the U.S. bank maintains a correspondent account:
(1) Whether the foreign bank maintains a correspondent account for an Iranian-linked financial institution designated under the International Emergency Economic Powers Act (IEEPA);
(2) Whether the foreign bank has processed one or more transfers of funds within the preceding 90 calendar days related to an Iranian-linked financial institution designated under IEEPA, other than through a correspondent account; or
(3) Whether the foreign bank has processed one or more transfers of funds within the preceding 90 calendar days related to Iran’s Islamic Revolutionary Guard Corps (IRGC) or any of its agents or affiliates designated under IEEPA.
The proposed regulations would work in tandem with other financial provisions of CISADA to isolate financial institutions designated by the U.S. Government in connection with Iran’s proliferation of weapons of mass destruction (WMD) or delivery systems for WMD, or in connection with its support for international terrorism.
[Update: The NPRM was published in the Federal Register on May 2, 2011. Written comments are welcome and must be received on or before June 1, 2011.]
This document has been submitted to the Office of the Federal Register (OFR) for publication and is currently pending placement on public display at the OFR and publication in the Federal Register. The document may vary slightly from the published document if minor editorial changes have been made during the OFR review process. Upon publication in the Federal Register, the regulation can be found at http://www.gpoaccess.gov/fr/, www.regulations.gov, and at www.FinCEN.gov. The document published in the Federal Register is the official document. Public comments are welcome for 30 days after publication in the Federal Register.