Notice to Members 06-41
Special Measures against Specified Banks Pursuant to Section 311 of the USA PATRIOT Act
This Notice reminds member organizations that the Financial Crimes Enforcement Network (FinCEN) has issued a final rule imposing a special measure,1 which becomes effective August 14, 2006, against the Latvian bank VEF Banka and its subsidiaries, including Veiksmes lizings.2
1 The rule was issued pursuant to the authority contained in 31 U.S.C. § 5318A. Section 311 of the USA PATRIOT Act added section 5318A to the Bank Secrecy Act and granted the Secretary of the Treasury 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.
2 See 71 FR 39554 (July 13, 2006) available at www.fincen.gov/vef_final_rule_070706.pdf.