NPRM: Special measure regarding Huione Group (90 FR 18934) (Part 2 of 2)
Document text
Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
98 31 U.S.C 5318A(b)(3)(B). 101 See 31 CFR 1010.605(c)(2)(i).
99 31 U.S.C. 5318A(b)(2). 100 31 U.S.C. 5318A(b)(5). 102 See 31 CFR 1010.605(c)(2)(ii)–(iv).
VerDate Sep<11>2014 16:16 May 02, 2025 Jkt 265001 PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 E:\FR\FM\05MYP1.SGM 05MYP1
Federal Register / Vol. 90, No. 85 / Monday, May 5, 2025 / Proposed Rules 18945
3. Definition of Covered Financial 3. Special Due Diligence for covered financial institution would be
Institution Correspondent Accounts expected to apply an appropriate
As a corollary to the prohibition set screening mechanism to identify a funds
The term ‘‘covered financial transfer order that on its face listed
institution’’ is defined by reference to 31 forth in section 1010.664(b)(1) and (2),
section 1010.664(b)(3) of the proposed Huione Group as the financial
CFR 1010.605(e)(1), the same definition institution of the originator or
used in the BSA rule (31 CFR 1010.610) rule would require covered financial
institutions to apply special due beneficiary, or otherwise referenced
requiring the establishment of due Huione Group in a manner detectable
diligence programs for correspondent diligence to all of their foreign
correspondent accounts that is under the financial institution’s normal
accounts for financial institutions. In screening mechanisms. An appropriate
general, this definition includes the reasonably designed to guard against
such accounts being used to process screening mechanism could be the
following: mechanisms used by a covered financial
• a bank; transactions involving Huione Group.
As part of that special due diligence, institution to comply with various legal
• a broker or dealer in securities; covered financial institutions would be requirements, such as commercially
• a futures commission merchant or required to notify those foreign available software programs used to
an introducing broker in commodities; correspondent account holders that the comply with the economic sanctions
and covered financial institutions know or programs administered by the U.S.
• a mutual fund. have reason to believe provide services Department of the Treasury’s OFAC.
to Huione Group, that such 4. Recordkeeping and Reporting
4. Definition of Foreign Banking
correspondents may not provide Huione
Institution Section 1010.664(b)(4) of the
Group with access to the correspondent
The term ‘‘foreign banking account maintained at the covered proposed rule would clarify that the
institution’’ means a bank organized financial institution. A covered proposed rule does not impose any
under foreign law, or an agency, branch, financial institution may satisfy this reporting requirement upon any covered
or office located outside the United notification requirement using the financial institution that is not
States of a bank. The term does not following notice: otherwise required by applicable law or
include an agent, agency, branch, or regulation. A covered financial
Notice: Pursuant to U.S. regulations issued institution must, however, document its
office within the United States of a bank under Section 311 of the USA PATRIOT Act,
organized under foreign law. compliance with the notification
see 31 CFR 1010.664, we are prohibited from
opening or maintaining in the United States requirement described above in section
5. Definition of Subsidiary a correspondent account for, or on behalf of, 1010.664(b)(3).
The term ‘‘subsidiary’’ means a Huione Group. The regulations also require VII. Request for Comments
us to notify you that you may not provide
company of which more than 50 percent Huione Group, including any of its FinCEN is requesting comments for 30
of the voting stock or an otherwise subsidiaries, branches, and offices access to days after the publication of this NPRM.
controlling interest is owned by another the correspondent account you hold at our Given Huione Group’s consistent and
company. financial institution. If we become aware that longstanding ties to facilitating
the correspondent account you hold at our
B. 1010.664(b)—Prohibition on transactions for DPRK proliferation
financial institution has processed any
Accounts and Due Diligence transactions involving Huione Group, finance and cyber scams including CVC
Requirements for Covered Financial including any of its subsidiaries, branches, investment scams, and its track record
Institutions and offices, we will be required to take of facilitating and promoting money
appropriate steps to prevent such access, laundering in support of DPRK and
1. Prohibition on Opening or including terminating your account. TCOs’ illicit activity, FinCEN assesses
Maintaining Correspondent Accounts
The purpose of the notice requirement that a 30-day comment period for this
Section 1010.664(b)(1) of the is to aid cooperation with correspondent NPRM strikes an appropriate balance
proposed rule would prohibit covered account holders in preventing between ensuring sufficient time for
financial institutions from opening or transactions involving Huione Group notice to the public and opportunity for
maintaining in the United States a from accessing the U.S. financial comment on the proposed rule, while
correspondent account for, or on behalf system. FinCEN does not require or minimizing undue risk posed to the U.S.
of, Huione Group. expect a covered financial institution to financial system in processing illicit
obtain a certification from any of its transfers that are likely to finance DPRK
2. Prohibition on Use of Correspondent WMD proliferation, funds derived from
Accounts Involving Huione Group correspondent account holders that
access will not be provided to comply cyber scams, including CVC investment
Section 1010.664(b)(2) of the with this notice requirement. scams carried out by TCOs, and other
proposed rule would require covered Methods of compliance with the illicit activity. FinCEN invites
financial institutions to take reasonable notice requirement could include, for comments on all aspects of the proposed
steps to not process a transaction for the example, transmitting a notice by mail, rule, including the following specific
correspondent account of a foreign fax, or email. The notice should be matters:
banking institution in the United States transmitted whenever a covered 1. FinCEN’s proposal of a prohibition
ddrumheller on DSK120RN23PROD with PROPOSALS1
if such a transaction involves Huione financial institution knows or has under the fifth special measure under 31
Group. Such reasonable steps are reason to believe that a foreign U.S.C. 5318A(b), as opposed to
described in 1010.664(b)(3), which sets correspondent account holder provides imposing special measures one through
forth the special due diligence services to Huione Group. four or imposing conditions under the
requirements a covered financial Special due diligence also includes fifth special measure;
institution would be required to take implementing risk-based procedures 2. The form and scope of the notice
when it knows or has reason to believe designed to identify any use of to certain correspondent account
that a transaction involves Huione correspondent accounts to process holders that would be required under
Group. transactions involving Huione Group. A the rule; and
VerDate Sep<11>2014 16:16 May 02, 2025 Jkt 265001 PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 E:\FR\FM\05MYP1.SGM 05MYP1
18946 Federal Register / Vol. 90, No. 85 / Monday, May 5, 2025 / Proposed Rules
3. The appropriate scope of the due an agency to certify a rule, in lieu of impact statement is required, section
diligence requirements in this proposed preparing an analysis, if the proposed 202 of the Unfunded Mandates Reform
rule. rulemaking is not expected to have a Act also requires an agency to identify
significant economic impact on a and consider a reasonable number of
VIII. Regulatory Impact Analysis
substantial number of small entities. regulatory alternatives before
FinCEN has analyzed this proposed This proposed rule would apply to all promulgating a rule.110
rule under Executive Orders 12866, covered financial institutions and FinCEN has determined that this
13563, the Regulatory Flexibility Act,103 would affect a substantial number of proposed rule will not result in
the Unfunded Mandates Reform Act,104 small entities. Nevertheless, for the expenditures by state, local, and tribal
and the Paperwork Reduction Act.105 reasons described below, FinCEN governments in the aggregate, or by the
As discussed above, the intended assesses that these changes would be private sector, of an annual USD 100
effects of the imposition of special unlikely to have a significant economic million or more, adjusted for inflation
measure five to Huione Group are impact on such entities. (USD 188.9 million).111 Accordingly,
twofold. The rule is expected to: (1) Covered financial institutions would FinCEN has not prepared a budgetary
combat and deter money laundering in also be required to take reasonable impact statement or specifically
facilitation of proliferation financing measures to detect use of their addressed the regulatory alternatives
associate with Huione Group; and (2) correspondent accounts to process considered.
prevent Huione Group from using the transactions involving Huione Group.
U.S. financial system to enable its illicit D. Paperwork Reduction Act
All U.S. persons, including U.S.
finance behavior. In the analysis below, financial institutions, currently must The recordkeeping and reporting
FinCEN discusses the economic effects comply with OFAC sanctions, and U.S. requirements, referred to by the Office
that are expected to accompany financial institutions generally have of Management and Budget (OMB) as a
adoption of the rule as proposed and suspicious activity reporting collection of information, contained in
assesses such expectations in more requirements and systems in place to this proposed rule will be submitted by
granular detail. This discussion screen transactions to comply with FinCEN to the OMB for review in
includes an explanation of how OFAC sanctions and section 311 special accordance with the Paperwork
FinCEN’s assumptions and measures administered by FinCEN. The Reduction Act of 1995 (PRA).112 Under
methodological choices have influenced systems that U.S. financial institutions the PRA, an agency may not conduct or
FinCEN’s conclusions. The public is have in place to comply with these sponsor, and a person is not required to
invited to comment on all aspects of requirements can easily be modified to respond to, a collection of information
FinCEN’s practice.106 adapt to this proposed rule. Thus, the unless it displays a valid control
special due diligence that would be number assigned by the OMB. Written
A. Executive Orders
required under the proposed rule—i.e., comments and recommendations for the
Executive Orders 12866 and 13563 proposed prohibition can be submitted
direct agencies to assess costs and preventing the processing of
transactions involving Huione Group by visiting www.reginfo.gov/public/do/
benefits of available regulatory PRAMain. Find this particular
alternatives and, if regulation is and the transmittal of notification to
certain correspondent account holders— document by selecting ‘‘Currently under
necessary, to select regulatory Review—Open for Public Comments’’ or
approaches that maximize net benefits would not impose a significant
additional economic burden upon small by using the search function. Comments
(including potential economic, are welcome and must be received by
environmental, public health and safety U.S. financial institutions. For these
June 4, 2025. In accordance with
effects, distributive impacts, and reasons, FinCEN certifies that the
requirements of the PRA and its
equity). Executive Order 13563 proposals contained in this rulemaking
implementing regulations, 5 CFR part
emphasizes the importance of would not have a significant impact on
1320, the following information
quantifying both costs and benefits, of a substantial number of small
concerning the collection of information
reducing costs, of harmonizing rules, businesses.
FinCEN invites comments from as required by 31 CFR 1010.664 is
and of promoting flexibility. presented to assist those persons
It has been determined that this members of the public who believe
there would be a significant economic wishing to comment on the information
proposed rule is not a significant collections.
regulatory action under section 3(f) of impact on small entities from the
The provisions in this proposed rule
Executive Order 12866. Accordingly, a imposition of a prohibition under the
pertaining to the collection of
regulatory impact analysis is not fifth special measure regarding Huione
information can be found in sections
required. Group.
1010.664(b)(3)(i)(A) and 1010.664(b)(4).
B. Regulatory Flexibility Act C. Unfunded Mandates Reform Act The notification requirement in section
When an agency issues a rulemaking Section 202 of the Unfunded
110 Id.
proposal, the Regulatory Flexibility Act Mandates Reform Act of 1995 108 111 The Unfunded Mandates Reform Act requires
(RFA) requires the agency to ‘‘prepare (Unfunded Mandates Reform Act), an assessment of mandates that will result in an
and make available for public comment requires that an agency prepare a annual expenditure of USD 100 million or more,
an initial regulatory flexibility analysis’’ budgetary impact statement before adjusted for inflation. The U.S. Bureau of Economic
promulgating a rule that may result in Analysis reports the annual value of the gross
ddrumheller on DSK120RN23PROD with PROPOSALS1
(IRFA) that will ‘‘describe the impact of domestic product (GDP) deflator in the first quarter
the proposed rule on small entities.’’ 107 expenditure by the state, local, and of 1995, the year of the Unfunded Mandates Reform
However, section 605 of the RFA allows tribal governments, in the aggregate, or Act, as 66.452, and as 125.532 in the third quarter
by the private sector, of USD 100 of 2024, the most recent available. See U.S. Bureau
103 5 U.S.C. 603. million or more in any one year, of Economic Analysis, ‘‘Table 1.1.9. Implicit Price
Deflators for Gross Domestic Product,’’ https://
104 12 U.S.C. 1532, Public Law 104–4 (Mar. 22, adjusted for inflation.109 If a budgetary www.bea.gov/itable/ (last accessed Jan. 17, 2025).
1995). Thus, the inflation adjusted estimate for USD 100
105 44 U.S.C. 3507(a)(1)(D). 108 12 U.S.C. 1532, Public Law 104–4 (Mar. 22, million is 125.532/66.452 × 100 = USD 188.9
106 See Section VII; see also Section VIII.D. 1995). million.
107 5 U.S.C. 603(a). 109 Id. 112 44 U.S.C. 3507(a)(1)(D).
VerDate Sep<11>2014 16:16 May 02, 2025 Jkt 265001 PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 E:\FR\FM\05MYP1.SGM 05MYP1
Federal Register / Vol. 90, No. 85 / Monday, May 5, 2025 / Proposed Rules 18947
1010.664(b)(3)(i)(A) is intended to aid organizations to verify compliance by 1010.664(a)(3) that are engaged in
cooperation from foreign correspondent covered financial institutions with the correspondent banking with, or
account holders in preventing notification requirement in section processing transactions potentially
transactions involving Huione Group 1010.664(b)(3)(i)(A). The collection of involving, Huione Group as defined in
from being processed by the U.S. information would be mandatory. section 1010.664(b)(1) and (2) would be
financial system. The information Frequency: As required. affected.
required to be maintained by section Description of Affected Financial
664(b)(4) will be used by federal Institutions: Only those covered Estimated Number of Potential
agencies and certain self-regulatory financial institutions defined in section Respondents: Approximately 15,710.113
TABLE 1—ESTIMATES OF COVERED FINANCIAL INSTITUTIONS BY TYPE
Financial institution type Number of entities
Banks with an FFR a ............................................................................................................................................................ b 8,995
Banks without an FFR c ....................................................................................................................................................... d 395
Broker-dealers in securities e ............................................................................................................................................... f 3,320
Open end mutual funds g ..................................................................................................................................................... h 2,036
Futures commission merchants i ......................................................................................................................................... j 65
Introducing brokers in commodities k ................................................................................................................................... l 899
a See 31 CFR 1010.100(t)(1); see also 31 CFR 1010.100(d).
b Bank data is as of Jan. 17, 2025, from Federal Deposit Insurance Corporation BankFind (https://banks.data.fdic.gov/bankfind-suite/bankfind).
Credit union data is as of Sept. 2024 from the National Credit Union Administration Quarterly Data Summary Reports (https://ncua.gov/analysis/
credit-union-corporate-call-report-data/quarterly-data-summary-reports).
c 31 CFR 1020.210(b).
d The Board of Governors of the Federal Reserve System Master Account and Services Database contains data on financial institutions that
utilize Reserve Bank financial services, including those with no federal regulator. FinCEN used this data to identify 395 banks and credit unions
utilizing Reserve Bank financial services with no federal regulator. (https://www.federalreserve.gov/paymentsystems/master-account-and-services-
database-existing-access.htm).
e 31 CFR 1010.100(t)(2).
f According to the Securities and Exchange Commission (SEC), there are 3,320 broker-dealers in securities as of Mar. 2025 from website
‘‘Company Information About Active Broker-Dealers’’ (https://www.sec.gov/foia-services/frequently-requested-documents/company-information-
about-active-broker-dealers).
g See 31 CFR 1010.100(t)(10); see also 31 CFR 1010.100(gg).
h According to the SEC, in 2024 there were 2,036 open-end registered investment companies that report on Form N–CEN. (https://
www.sec.gov/dera/data/form-ncen-data-sets).
i 31 CFR 1010.100(t)(8).
j According to the Commodity Futures Trading Commission (CFTC), there are 65 futures commission merchants as of November 30, 2024.
See Financial Data for FCMs, https://www.cftc.gov/MarketReports/financialfcmdata/index.htm.
k 31 CFR 1010.100(t)(9).
l According to the National Futures Association, there are 899 introducing brokers in commodities as of Dec. 31, 2024 from website ‘‘NFA
Membership Totals’’ (https://www.nfa.futures.org/registration-membership/membership-and-directories.html).
Estimated Number of Expected
Respondents: Approximately 127.114
TABLE 2—ESTIMATES OF AFFECTED FINANCIAL INSTITUTIONS BY TYPE
Financial institution type Number of entities
Banks with an FFR .............................................................................................................................................................. a 60
Banks without an FFR ......................................................................................................................................................... b 17
Broker-dealers in securities ................................................................................................................................................. c 26
Open end mutual funds ....................................................................................................................................................... d 16
Futures commission merchants ........................................................................................................................................... e1
Introducing brokers in commodities ..................................................................................................................................... f7
a Data are from the FFIEC Central Data Repository for Reports of Condition and Income (Call Reports) and Uniform Bank Performance Re-
ports (UBPRs), available for most FDIC-insured institutions. Using this source of data, FinCEN determines that as of Q3 2024, approximately 60
banks (as defined by FinCEN regulations, see 31 CFR 1010.100(d)) will be affected by this rule on any given year. Specifically, we determine
that there are approximately 60 banks that report non-zero values for deposit liabilities of banks in foreign countries. Deposit liabilities in a foreign
country is an indication that a bank maintains correspondent accounts with a foreign financial institution.
b The Board of Governors of the Federal Reserve System Master Account and Services Database contains data on financial institutions that
utilize Reserve Bank financial services, including those with no federal regulator. FinCEN used this data to identify an additional 17 international
banking entities with no federal regulator and that do not file Call Reports, but that are also likely to maintain correspondent accounts with a for-
eign financial institution.
ddrumheller on DSK120RN23PROD with PROPOSALS1
113 This estimate is informed by public and non- 114 While this regulation applies to all covered subpopulation of banks, brokers or dealers in
public data sources regarding both an expected institutions described in Table 1, in practice the securities, mutual funds, futures commission
maximum number of entities that may be affected burden will only be imposed on select institutions merchants, and introducing brokers in commodities
and the number of active, or currently reporting, that maintain correspondent accounts for foreign based on data from the most recent calendar year
registered financial institutions. banks. Table 2 below presents an estimate of this end.
VerDate Sep<11>2014 16:16 May 02, 2025 Jkt 265001 PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 E:\FR\FM\05MYP1.SGM 05MYP1
18948 Federal Register / Vol. 90, No. 85 / Monday, May 5, 2025 / Proposed Rules
c Broker dealers, unless they are publicly traded, are not required to make reports indicating whether or not they have foreign correspondent
accounts or hold foreign deposits. FinCEN reviewed financial statement data from 10–Q and 6–K filings with the SEC, and identified nine publicly
traded broker dealers with U.S. operations that reported foreign deposits. FinCEN also examined Suspicious Activity Reports (SARs) filed by
broker dealers in 2024 to identify another two non-publicly traded broker dealers who appeared likely to be maintaining foreign deposits. How-
ever, because many broker dealers are not publicly traded and did not file SARs, FinCEN conservatively estimates that the proportion of broker
dealers with foreign correspondent accounts will be similar to the proportion for banks (approximately 0.8%). 0.8% of 3,320 active broker dealers
is approximately 26 broker dealers assumed to have foreign correspondent accounts.
d Mutual funds, futures commission merchants, and introducing brokers in commodities generally use intermediary U.S. banks to move and
maintain client deposits and funds for investment. Therefore, it is unlikely that many of these institutions will maintain direct correspondent ac-
counts with foreign financial institutions outside of their existing upstream banking relationships. However, because these institutions may in
some cases receive deposits from, make payments or other disbursements, or otherwise transact directly with foreign financial institutions,
FinCEN conservatively estimates that the proportion of mutual funds with foreign correspondent accounts will be similar to the proportion for
banks (approximately 0.8%). 0.8% of 2,036 active mutual funds is approximately 16 mutual funds assumed to have foreign correspondent ac-
counts.
e 0.8% of 65 active futures commission merchants is approximately one futures commission merchants assumed to have foreign correspondent
accounts.
f 0.8% of 899 active introducing brokers in commodities is approximately seven introducing brokers in commodities assumed to have foreign
correspondent accounts.
Estimated Average Annual Burden in information in this proposed rule is, in maintenance, and purchase of services
Hours per Affected Financial total, one business day, or eight hours to report the information.
Institution: per affected financial institution.
Imposing special measure five List of Subjects in 31 CFR Part 1010
Estimated Total Annual Burden:
requirements as described in this Approximately 1,016 hours.115 Administrative practice and
proposed rule is expected to result in a Estimated Total Annual Cost: procedure, Banks, Banking, Brokers,
new, incremental recordkeeping burden Approximately $121,920.116 Crime, Foreign banking, Terrorism.
on certain covered financial institutions FinCEN invites comments on: (a) Authority and Issuance
as described above. Each anticipated whether the proposed collection of
component of this is outlined below. information found in section For the reasons set forth in the
Each affected covered financial 1010.664(b)(4) is necessary for the preamble, FinCEN proposes amending
institution is expected to incur a proper performance of the mission of 31 CFR part 1010 as follows:
recordkeeping burden associated with FinCEN, including whether the
preparing and retaining the materials Part 1010—GENERAL PROVISIONS
information would have practical
necessary to demonstrate compliance utility; (b) the accuracy of FinCEN’s ■ 1. The authority citation for part 1010
with the proposed requirements. This is estimate of the burden of the proposed
expected to include records related to: continues to read as follows:
collection of information; (c) ways to
B. Documenting the reasonable steps enhance the quality, utility, and clarity Authority: 12 U.S.C. 1829b and 1951–
the financial institution undertakes to 1959; 31 U.S.C. 5311–5314, 5316–5336; title
of the information required to be III, sec. 314, Pub. L. 107–56, 115 Stat. 307;
ensure no transactions involving Huione maintained; (d) ways to minimize the
Group are processed for a foreign sec. 2006, Pub. L. 114–41, 129 Stat. 458–459;
burden of the required collection of sec. 701 Pub. L. 114–74, 129 Stat. 599; sec.
correspondent account, including: information, including through the use 6403, Pub. L. 116–283, 134 Stat. 3388.
1. Any investigative activities
of automated collection techniques or
undertaken when the financial ■ 2. Add § 1010.664 to read as follows:
other forms of information technology;
institution knows or has reason to
and (e) estimates of capital or start-up § 1010.664 Special measures regarding
believe that a foreign bank’s
costs and costs of operation, Huione Group.
correspondent account has been or is
being used to process transactions (a) Definitions. For purposes of this
115 127 expected respondents multiplied by eight
involving Huione Group. section, the following terms have the
hours per respondent equals 1,016 total annual
2. Any subsequent activities burden hours.
following meanings.
undertaken to prevent such access, 116 The wage rate applied here is a general (1) Huione Group. The term ‘‘Huione
including, where necessary, termination composite hourly wage ($85.55), scaled by a Group’’ means all subsidiaries,
of the correspondent account. private-sector benefits factor of 1.42 ($120.07 = branches, and offices of Huione Group
$85.55 × 1.42), that incorporates the mean wage operating as a financial institution in
C. Notifying, and documenting that data (available for download at https://www.bls.gov/
the financial institution has provided oes/tables.htm, ‘‘May 2023—National industry- any jurisdiction outside of the United
notice to, foreign correspondent account specific and by ownership’’) associated with the six States, including Haowang Guarantee
holders that the financial institution occupational codes (11–1010: Chief Executives; 11– (formerly known as Huione Guarantee),
3021: Computer and Information Systems Huione Pay PLC, and Huione Crypto
knows or has reason to believe provide Managers; 11–3031: Financial Managers; 13–1041:
services to Huione Group, that such Compliance Officers; 23–1010: Lawyers and Spó5ka Z Ograniczona˛
correspondents may not provide Huione Judicial Law Clerks; 43–3099: Financial Clerks, All Odpowiedzialnościa˛ (d/b/a Huione
Group with access to the correspondent Other) for each of the nine groupings of NAICS Crypto).
industry codes that FinCEN determined are most (2) Correspondent account. The term
account maintained at the financial directly comparable to its eleven categories of
institution. covered financial institutions as delineated in 31 ‘‘correspondent account’’ has the same
D. Documenting the reasonable steps CFR parts 1020 to 1030. The benefit factor is 1 plus meaning as provided in
ddrumheller on DSK120RN23PROD with PROPOSALS1
it took with respect to special due the benefit/wages ratio, where as of June 2023, Total 1010.605(c)(l)(ii).
diligence requirements, including but Benefits = 29.4 and Wages and salaries = 70.6 (29.4/ (3) Covered financial institution. The
70.6 = 0.42) based on the private industry workers
not limited to, the reasoning that series data downloaded from https://www.bls.gov/
term ‘‘covered financial institution’’ has
informed decisions to adopt (or not news.release/archives/ecec_09122023.pdf (accessed the same meaning as provided in
adopt) new measures adding to its Dec. 22, 2024). Given that many occupations 1010.605(e)(1).
existing risk-based approach, and those provide benefits beyond cash wages (e.g., insurance, (4) Foreign banking institution. The
paid leave, etc.), the private sector benefit is applied
new measures, if adopted. to reflect the total cost to the employer. 1,016 total
term ‘‘foreign banking institution’’
The estimated average annual burden annual burden hours multiplied by $120 per hour means a bank organized under foreign
associated with the collection of equals a total annual cost of $121,920. law, or an agency, branch, or office
VerDate Sep<11>2014 16:16 May 02, 2025 Jkt 265001 PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 E:\FR\FM\05MYP1.SGM 05MYP1
Federal Register / Vol. 90, No. 85 / Monday, May 5, 2025 / Proposed Rules 18949
located outside the United States of a correspondent account holder under New Jersey Avenue SE, between 9 a.m.
bank. The term does not include an paragraph (b)(3)(i)(A) of this section and 5 p.m., Monday through Friday,
agent, agency, branch, or office within and, where necessary, termination of the except Federal holidays.
the United States of a bank organized correspondent account. Fax: 1–202–493–2251.
under foreign law. (4) Recordkeeping and reporting. (i) A Instructions: Please include the
(5) Subsidiary. The term ‘‘subsidiary’’ covered financial institution is required docket number PHMSA–2019–0091 at
means a company of which more than to document its compliance with the the beginning of your comments. If you
50 percent of the voting stock or an notification requirement set forth in this submit your comments by mail, submit
otherwise controlling interest is owned section. two copies. If you wish to receive
by another company. (ii) Nothing in paragraph (b) of this confirmation that PHMSA received your
(b) Prohibition on accounts and due section shall require a covered financial comments, include a self-addressed
diligence requirements for covered institution to report any information not stamped postcard. Internet users may
financial institutions—(1) Prohibition otherwise required to be reported by law submit comments at https://
on opening or maintaining or regulation. www.regulations.gov.
correspondent accounts for Huione
Dated: May 1, 2025. Note: Comments are posted without
Group. A covered financial institution
Andrea M. Gacki, changes or edits to https://
shall not open or maintain in the United www.regulations.gov, including any personal
States a correspondent account for, or Director, Financial Crimes Enforcement
information provided. There is a privacy
on behalf of, Huione Group. Network.
statement published on https://
(2) Prohibition on processing [FR Doc. 2025–07837 Filed 5–2–25; 8:45 am] www.regulations.gov.
transactions involving Huione Group. A BILLING CODE 4810–02–P
covered financial institution shall take Privacy Act: In accordance with 5
reasonable steps not to process a U.S.C. 553(c), DOT solicits comments
transaction for the correspondent from the public to inform its rulemaking
DEPARTMENT OF TRANSPORTATION
account in the United States of a foreign process. DOT posts these comments,
banking institution if such a transaction Pipeline and Hazardous Materials without edit, including any personal
involves Huione Group. Safety Administration information the commenter provides, to
(3) Special due diligence of https://www.regulations.gov, as
correspondent accounts to prohibit 49 CFR Part 193 described in the system of records
transactions. (i) A covered financial notice (DOT/ALL–14 FDMS), which can
[Docket No. PHMSA–2019–0091] be reviewed at https://www.dot.gov/
institution shall apply special due
diligence to its foreign correspondent RIN 2137–AF45 privacy.
accounts that is reasonably designed to Confidential Business Information:
guard against their use to process Pipeline Safety: Amendments to Confidential Business Information (CBI)
transactions involving Huione Group. Liquefied Natural Gas Facilities is commercial or financial information
At a minimum, that special due that is both customarily and actually
AGENCY: Pipeline and Hazardous treated as private by its owner. Under
diligence must include: Materials Safety Administration
(A) Notifying those foreign the Freedom of Information Act (FOIA,
(PHMSA), Department of Transportation 5 U.S.C. 552), CBI is exempt from public
correspondent account holders that the (DOT).
covered financial institution knows or disclosure. It is important that you
has reason to believe provide services to ACTION: Advance notice of proposed clearly designate the comments
Huione Group that such correspondents rulemaking (ANPRM). submitted as CBI if: your comments
may not provide Huione Group with responsive to this document contain
SUMMARY: PHMSA is publishing this
access to the correspondent account commercial or financial information
advance notice of proposed rulemaking that is customarily treated as private;
maintained at the covered financial (ANPRM) to solicit stakeholder feedback
institution; and you actually treat such information as
on potential amendments to the private; and your comment is relevant
(B) Taking reasonable steps to identify pipeline safety regulations governing
any use of its foreign correspondent or responsive to this notice. Pursuant to
liquefied natural gas (LNG). 49 Code of Federal Regulations (CFR)
accounts by Huione Group, to the extent
that such use can be determined from DATES: Comments on this ANPRM must 190.343, you may ask PHMSA to
transactional records maintained in the be submitted by July 7, 2025. provide confidential treatment to
covered financial institution’s normal ADDRESSES: You may submit comments information you give to the agency by
course of business. identified by the Docket Number taking the following steps: (1) mark each
(ii) A covered financial institution PHMSA–2019–0091 using any of the page of the original document
shall take a risk-based approach when following methods: submission containing CBI as
deciding what, if any, other due E-Gov Web: https:// ‘‘Confidential’’; (2) send PHMSA, along
diligence measures it reasonably must www.regulations.gov. This site allows with the original document, a second
adopt to guard against the use of its the public to enter comments on any copy of the original document with the
foreign correspondent accounts to Federal Register notice issued by any CBI deleted; and (3) explain why the
process transactions involving Huione agency. Follow the online instructions information that you are submitting is
ddrumheller on DSK120RN23PROD with PROPOSALS1
Group. for submitting comments. CBI. Submissions containing CBI should
(iii) A covered financial institution Mail: Docket Management System: be sent to Brianna Wilson, Office of
that knows or has reason to believe that U.S. Department of Transportation, 1200 Pipeline Safety (PHP–30), Pipeline and
a foreign bank’s correspondent account New Jersey Avenue SE, West Building Hazardous Materials Safety
has been or is being used to process Ground Floor, Room W12–140, Administration (PHMSA), 2nd Floor,
transactions involving Huione Group Washington, DC 20590–0001. 1200 New Jersey Avenue SE,
shall take all appropriate steps to further Hand Delivery: U.S. DOT Docket Washington, DC 20590–0001, or by
investigate and prevent such access, Management System: West Building email at [email protected]. Any
including the notification of its Ground Floor, Room W12–140, 1200 materials PHMSA receives that is not
VerDate Sep<11>2014 16:16 May 02, 2025 Jkt 265001 PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 E:\FR\FM\05MYP1.SGM 05MYP1