NASD Notice to Members 07-17 - April 2007

NASD and NYSE Joint Release Regarding Special Measures against Specified Banks Pursuant to Section 311 of the USA PATRIOT Act

Executive Summary

This is to inform members1 that the Financial Crimes Enforcement Network (FinCEN) has issued a final rule imposing a special measure,2 effective April 18, 2007, against Banco Delta Asia SARL, including its subsidiaries Delta Asia Credit Limited and Delta Asia Insurance Limited (Banco Delta Asia or bank).3 Banco Delta Asia is a commercial bank in Macau, Special Administrative Region, China. This measure is comparable to that imposed against the Latvian bank VEF Banka and its subsidaries, including Veiksmes lizings.4

Questions/Further Information

NASD: Patricia Albrecht, Assistant General Counsel, OGC, at (202) 728-8026.
NYSE: Stephen Kasprzak at 212-656-5226 or Cory Figman at (212) 656-4893.

1 For purposes of this joint release, the term "member" refers to NYSE member organizations and NASD members.

2 The rule was issued pursuant to the authority contained in 31 U.S.C. 5318A. Section 311 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) added Section 5318A to the Bank Secrecy Act and granted the Secretary of the Treasury, in consultation with the Departments of Justice and State and appropriate federal financial regulators, the authority, after finding that reasonable grounds exist for concluding that a foreign jurisdiction, foreign financial institution, international class of transactions or type of account is of "primary money laundering concern," to require domestic financial institutions and domestic financial agencies to take certain "special measures" against the primary money laundering concern.

3 See 72 FR 12730 (March 19, 2007).

4 See 71 FR 39554 (July 13, 2006) available at www.fincen.gov/vef_final_rule_070706.pdf.