Final rule: Special measure regarding Huione Group (90 FR 48295) (Part 2 of 2)
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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.
domestic financial institutions to
risk, particularly related to DPRK cyber financial institution that processes
‘‘obtain and retain information
heists and TCO-run scams. Taken as a concerning the beneficial ownership of transactions that are designed to obscure
whole, Huione Group’s history of any account opened or maintained in the transactions’ true nature and are
involvement in laundering proceeds of the United States by a foreign ultimately for the benefit of DPRK and
illicit activities, and its creation of an person.’’ 113 The agency determined that TCOs. Therefore, FinCEN has
unfreezable stablecoin, presents a this special measure would likely be determined that a prohibition on
heightened risk that Huione Group will ineffective since the concerns involving opening or maintaining correspondent
continue to be used by illicit actors. A Huione Group do not involve the banking relationships is the only special
key feature of Huione Group’s service opening or maintaining of accounts in measure available under section 311
offerings includes a marketplace to sell the U.S. by foreign persons. that can adequately protect the U.S.
items that enable CVC investment FinCEN similarly assesses that merely financial system from the illicit finance
scams, and money laundering services imposing conditions under special risk posed by Huione Group. For these
to launder the proceeds of the scams. measure five would be inadequate to reasons, and after thorough
Huione Group serves as a significant address the risks posed by Huione consideration of alternate measures,
node within the money laundering Group’s activities. Special measure five FinCEN assesses that no measures short
ecosystem that enables criminals to both enables FinCEN to impose conditions as of full prohibition on correspondent or
obtain necessary items to carry out an alternative to a prohibition on the payable-through banking access would
various crimes, and the services to opening or maintaining of be sufficient to address the money
launder the proceeds of those crimes. correspondent accounts.114 Given laundering risks posed by Huione
Because of the nature, extent, and Huione Group’s longstanding ties to Group.
purpose of the obfuscation engaged in DPRK proliferation finance, coupled
by Huione Group, any special measure with money laundering tied to CVC IV. Section-by-Section Analysis
intended to mandate additional investment scams, and public A. 1010.664(a)—Definitions
information collection would likely be acknowledgment of failures of its AML/
ineffective and insufficient to determine KYC program, FinCEN determined that 1. Definition of Huione Group
the true identity of illicit finance actors imposing any condition would not be an
who transact with the group. For The final rule defines the term
effective measure to safeguard the U.S.
example, the provision under special ‘‘Huione Group’’ to mean all
financial system. FinCEN assesses that
measure one, that ‘‘the identity and subsidiaries, branches, and offices of
the billions of dollars’ worth of CVC and
address of the participants in a Huione Group operating as a financial
fiat laundered through Huione Group’s
transaction or relationship, including institution in any jurisdiction outside of
exploitation of its access to USD, and
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the identity of the originator of any the United States, including Haowang
the exposure of U.S. financial
funds transfer’’ be collected in records Guarantee (formerly known as Huione
and reports, could be circumvented by 111 31 U.S.C. 5318A(b)(1)(B)(i). Guarantee), Huione Pay PLC, and
the operations of shell companies, 112 31 U.S.C. 5318A(b)(3)(B). Huione Crypto Spó5ka Z Ograniczona˛
wherein the reported identity of the 113 31 U.S.C. 5318A(b)(2). Odpowiedzialnościa˛ (d/b/a Huione
originator serves to obscure the true 114 31 U.S.C. 5318A(b)(5). Crypto).
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Federal Register / Vol. 90, No. 198 / Thursday, October 16, 2025 / Rules and Regulations 48307
2. Definition of Correspondent Account the United States of a bank. The term Notice: Pursuant to U.S. regulations issued
does not include an agent, agency, under Section 311 of the USA PATRIOT Act,
The final rule defines the term see 31 CFR 1010.664, we are prohibited from
‘‘correspondent account’’ to have the branch, or office within the United
States of a bank organized under foreign opening or maintaining in the United States
same meaning as the definition a correspondent account for, or on behalf of,
contained in 31 CFR 1010.605(c)(1)(ii). law. Huione Group. The regulations also require
In the case of a U.S. depository 5. Definition of Subsidiary us to notify you that you may not provide
institution, this broad definition Huione Group, including any of its
The final rule defines the term subsidiaries, branches, and offices access to
includes most types of banking
‘‘subsidiary’’ to mean a company of the correspondent account you hold at our
relationships between a U.S. depository
which more than 50 percent of the financial institution. If we become aware that
institution and a foreign bank that are
voting stock or an otherwise controlling the correspondent account you hold at our
established to provide regular services,
interest is owned by another company. financial institution has processed any
dealings, and other financial transactions involving Huione Group,
transactions, including a demand B. 1010.664(b)—Prohibition on including any of its subsidiaries, branches,
deposit, savings deposit, or other Accounts and Due Diligence and offices, we will be required to take
transaction or asset account, and a Requirements for Covered Financial appropriate steps to prevent such access,
credit account or other extension of Institutions including terminating your account.
credit. FinCEN is using the same The purpose of the notice requirement
1. Prohibition on Opening or
definition of ‘‘account’’ for purposes of is to aid cooperation with correspondent
Maintaining Correspondent Accounts
this final rule as is established for account holders in preventing
depository institutions in the final rule Section 1010.664(b)(1) of the final
rule prohibits covered financial transactions involving Huione Group
implementing the provisions of section from accessing the U.S. financial
312 of the USA PATRIOT Act, requiring institutions from opening or
maintaining in the United States a system. FinCEN does not require or
enhanced due diligence for expect a covered financial institution to
correspondent accounts maintained for correspondent account for, or on behalf
of, Huione Group. obtain a certification from any of its
certain foreign banks.115 Under this correspondent account holders that
definition, ‘‘payable-through accounts’’ 2. Prohibition on Use of Correspondent access will not be provided to comply
are a type of correspondent account. Accounts Involving Huione Group with this notice requirement.
In the case of securities broker- Methods of compliance with the
dealers, futures commission merchants, Section 1010.664(b)(2) of the final
rule requires covered financial notice requirement could include, for
introducing brokers in commodities, example, transmitting a notice by mail,
and investment companies that are institutions to take reasonable steps to
not process a transaction for the fax, or email. The notice should be
open-end companies (mutual funds), transmitted whenever a covered
FinCEN is also using the same correspondent account of a foreign
banking institution in the United States financial institution knows or has
definition of ‘‘account’’ for purposes of reason to believe that a foreign
this final rule as was established for if such a transaction involves Huione
Group. Such reasonable steps are correspondent account holder provides
these entities in the final rule services to Huione Group.
described in 1010.664(b)(3), which sets
implementing the provisions of section Special due diligence also includes
forth the special due diligence
312 of the USA PATRIOT Act, requiring implementing risk-based procedures
requirements a covered financial
due diligence for correspondent designed to identify any use of
institution would be required to take
accounts maintained for certain foreign correspondent accounts to process
when it knows or has reason to believe
banks.116 transactions involving Huione Group. A
that a transaction involves Huione
3. Definition of Covered Financial Group. covered financial institution would be
Institution expected to apply an appropriate
3. Special Due Diligence for screening mechanism to identify a funds
The final rule defines the term Correspondent Accounts transfer order that on its face listed
‘‘covered financial institution’’ by
As a corollary to the prohibition set Huione Group as the financial
reference to 31 CFR 1010.605(e)(1), the
forth in section 1010.664(b)(1) and (2), institution of the originator or
same definition used in the BSA rule
section 1010.664(b)(3) of the final rule beneficiary, or otherwise referenced
(31 CFR 1010.610) requiring the requires covered financial institutions to Huione Group in a manner detectable
establishment of due diligence programs apply special due diligence to all of under the financial institution’s normal
for correspondent accounts for financial their foreign correspondent accounts screening mechanisms. An appropriate
institutions. In general, this definition that is reasonably designed to guard screening mechanism could be the
includes the following: against such accounts being used to
• a bank; mechanisms used by a covered financial
• a broker or dealer in securities; process transactions involving Huione institution to comply with various legal
• a futures commission merchant or Group. As part of that special due requirements, such as commercially
an introducing broker in commodities; diligence, covered financial institutions available software programs used to
and are required to notify those foreign comply with the economic sanctions
• a mutual fund. correspondent account holders that the programs administered by the U.S.
covered financial institutions know or Department of the Treasury’s OFAC.
4. Definition of Foreign Banking have reason to believe provide services
Institution to Huione Group, that such 4. Recordkeeping and Reporting
The final rule defines the term correspondents may not provide Huione Section 1010.664(b)(4) of the final
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‘‘foreign banking institution’’ to mean a Group with access to the correspondent rule does not impose any reporting
bank organized under foreign law, or an account maintained at the covered requirement upon any covered financial
agency, branch, or office located outside financial institution. A covered institution that is not otherwise required
financial institution may satisfy this by applicable law or regulation. A
115 See 31 CFR 1010.605(c)(2)(i). notification requirement using the covered financial institution must,
115 See 31 CFR 1010.605(c)(2)(ii)–(iv). following notice: however, document its compliance with
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48308 Federal Register / Vol. 90, No. 198 / Thursday, October 16, 2025 / Rules and Regulations
the notification requirement described A. Executive Orders with OFAC sanctions, and U.S. financial
above in section 1010.664(b)(3). Executive Orders 12866 and 13563 institutions generally have suspicious
direct agencies to assess costs and activity reporting requirements and
V. Severability systems in place to screen transactions
benefits of available regulatory
If any of the provisions of this rule, or alternatives and, if regulation is for compliance with OFAC sanctions
the application thereof to any person or necessary, to select regulatory and section 311 special measures
circumstance, is held to be invalid, such approaches that maximize net benefits administered by FinCEN. The systems
invalidity shall not affect the (including potential economic, that U.S. financial institutions have in
application of such provisions to other environmental, public health and safety place to comply with these
persons or circumstances that can be effects, distributive impacts, and requirements can easily be modified to
given effect without the invalid equity). Executive Order 13563 comply with this final rule. Thus, the
emphasizes the importance of special due diligence that is required
provision or application.
quantifying both costs and benefits, of under the final rule—i.e., preventing the
The provisions of this rule can processing of transactions involving
function sensibly if any specific reducing costs, of harmonizing rules,
and of promoting flexibility. Huione Group and the transmittal of
provision or application is invalidated, notification to certain correspondent
It has been determined that this final
enjoined or stayed. For example, if a account holders—would not impose a
rule is not a significant regulatory action
court were to hold as invalid the significant additional economic burden
under section 3(f) of Executive Order
application of the rule with respect to 12866. Accordingly, a regulatory impact upon small U.S. financial institutions.
any identified Component of Huione analysis is not required. For these reasons, FinCEN certifies that
Group, FinCEN would preserve the the requirements contained in this
finding that all other Components of B. Regulatory Flexibility Act rulemaking would not have a significant
Huione Group are foreign financial When an agency issues a final rule, impact on a substantial number of small
institutions of primary money the Regulatory Flexibility Act (RFA) businesses.
laundering concern. In such an instance, requires the agency to ‘‘prepare and C. Unfunded Mandates Reform Act
the provisions of the rule should remain make available for public comment a
in effect, as those provisions could final regulatory flexibility analysis’’ Section 202 of the Unfunded
function sensibly with respect to the (FRFA) that will ‘‘describe the impact of Mandates Reform Act of 1995 124
remainder of Huione Group. In sum, in the proposed rule on small entities.’’ 120 (Unfunded Mandates Reform Act),
the event that any of the provisions of However, section 605 of the RFA allows requires that an agency prepare a
this rule, or the application thereof to an agency to certify a rule, in lieu of budgetary impact statement before
any person or circumstance, is held to preparing an analysis, if the final rule is promulgating a rule that may result in
be invalid, FinCEN has crafted this rule not expected to have a significant expenditure by the state, local, and
with the intention to preserve its economic impact on a substantial tribal governments, in the aggregate, or
provisions to the fullest extent possible number of small entities. While this by the private sector, of USD 100
and any adverse holding should not final rule applies to all covered financial million or more in any one year,
affect other provisions. institutions as defined,121 FinCEN does adjusted for inflation.125 If a budgetary
not expect the rule to affect a substantial impact statement is required, section
VI. Regulatory Impact Analysis number of entities in practice, and 202 of the Unfunded Mandates Reform
FinCEN expects that few if any of these Act also requires an agency to identify
FinCEN has analyzed this final rule
entities would meet the criteria and consider a reasonable number of
under Executive Orders 12866, 13563,
necessary to be considered small regulatory alternatives before
the Regulatory Flexibility Act,117 the
entities for the purposes of the RFA.122 promulgating a rule.126
Unfunded Mandates Reform Act,118 and
the Paperwork Reduction Act.119 Furthermore, for the reasons described FinCEN has determined that this final
below, FinCEN assesses that even if a rule will not result in expenditures by
As discussed above, the intended small entity was affected by the final state, local, and tribal governments in
effects of the imposition of special rule these changes would not have a the aggregate, or by the private sector, of
measure five to Huione Group are significant economic impact on such an annual USD 100 million or more,
twofold. The rule is expected to: (1) entities.123 adjusted for inflation (approximately
combat and deter money laundering In addition to prohibiting covered USD 187 million).127 Accordingly,
associated with Huione Group that financial institutions from opening or FinCEN has not prepared a budgetary
facilitates proliferation financing; and maintaining in the United States a impact statement or specifically
(2) prevent Huione Group from using correspondent account for, or on behalf
the U.S. financial system to enable its of, Huione Group, this final rule 124 2 U.S.C. 1532.
illicit finance behavior. In the analysis requires covered financial institutions to 125 Id.
below, FinCEN discusses the economic take reasonable measures to detect use 126 Id.
127 The Unfunded Mandates Reform Act requires
effects that are expected to accompany of correspondent accounts they do open
an assessment of mandates that will result in an
adoption of the rule as proposed and or maintain to process transactions annual expenditure of USD 100 million or more,
assesses such expectations in more involving Huione Group. All U.S. adjusted for inflation. The U.S. Bureau of Economic
granular detail. This discussion persons, including U.S. financial Analysis reports the annual value of the gross
includes an explanation of how institutions, currently must comply domestic product (GDP) deflator for calendar year
1995, the year of the Unfunded Mandates Reform
FinCEN’s assumptions and
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120 5 U.S.C. 603(a).
Act, as 66.939, and as 125.428 for calendar year
methodological choices have influenced 2024, the most recent annual value available. See
121 See note 3; see also Section IV.A.3 defining
FinCEN’s conclusions. U.S. Bureau of Economic Analysis, ‘‘Table 1.1.9.
‘‘covered financial institution.’’ Implicit Price Deflators for Gross Domestic
122 5 U.S.C. 601(3)–(5).
Product,’’ https://www.bea.gov/itable/ (last accessed
117 5 U.S.C. 603. 123 See also infra Section V.D. annual average Oct. 3, 2025). Thus, the inflation adjusted estimate
118 2 U.S.C. 1532.
burden estimates per expected affected covered for USD 100 million is 125.428/66.939 × 100 = USD
119 44 U.S.C. 3507(a)(1)(D). financial institution. 187.377 million.
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Federal Register / Vol. 90, No. 198 / Thursday, October 16, 2025 / Rules and Regulations 48309
addressed the regulatory alternatives to aid cooperation from foreign burden and cost estimates provided in
considered. correspondent account holders in the NPRM PRA,128 and therefore, no
preventing transactions involving responsive revisions were required.
D. Paperwork Reduction Act
Huione Group from being processed by Further revisions to reflect updates to
The PRA imposes certain the U.S. financial system. The underlying data sources and harmonize
requirements on Federal agencies in information required to be maintained the final rule PRA estimates with the
connection with their conducting or by section 664(b)(4) will be used by broader portfolio of OMB control
sponsoring any collection of federal agencies and certain self- numbers assigned to 311 special
information as defined by the PRA. regulatory organizations to verify measures are explained below.
Under the PRA, an agency may not compliance by covered financial Frequency: As required.
conduct or sponsor, and a person is not institutions with the notification
required to respond to, a collection of Description of Affected Financial
requirement in section Institutions: Only those covered
information unless it displays a valid
1010.664(b)(3)(i)(A). The collection of financial institutions defined in section
OMB control number. The new
information is mandatory. 1010.664(a)(3) that are engaged in
collections of information required by
this final rule (31 CFR 1010.664) have In promulgating a final rule, FinCEN correspondent banking with, or
been approved by OMB in accordance may revise estimates of anticipated PRA processing transactions potentially
with the Paperwork Reduction Act of burden based on comments received in involving, Huione Group as defined in
1995 (PRA), 44 U.S.C. 3501 et seq., response to the NPRM and updates to section 1010.664(b)(1) and (2) would be
under control number 1506–0083. the final rule and underlying data affected.
The notification requirement in sources. FinCEN did not receive any Estimated Number of Potential
section 1010.664(b)(3)(i)(A) is intended comments with respect to the original Respondents: Approximately 15,710.129
TABLE 1—ESTIMATES OF COVERED FINANCIAL INSTITUTIONS BY TYPE
Financial institution type Number of entities
Banks with a Federal Functional Regulator (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 Sep. 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 127.130
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
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128 See supra Section II.C for discussion of and the number of active, or currently reporting, banks. Table 2 below presents an estimate of this
comment letters received. registered financial institutions. subpopulation of banks, brokers or dealers in
129 This estimate is informed by public and non- 130 While this regulation applies to all covered securities, mutual funds, futures commission
public data sources regarding both an expected institutions described in Table 1, in practice the merchants, and introducing brokers in commodities
burden will only be imposed on select institutions based on data from the most recent calendar year
maximum number of entities that may be affected
that maintain correspondent accounts for foreign end.
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48310 Federal Register / Vol. 90, No. 198 / Thursday, October 16, 2025 / Rules and Regulations
TABLE 2—ESTIMATES OF AFFECTED FINANCIAL INSTITUTIONS BY TYPE—Continued
Financial institution type Number of entities
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.
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 US 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 US 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 correspondents may not provide Huione In subsequent years, FinCEN
Hours per Affected Financial Group with access to the correspondent estimates that the average annual
Institution: Imposing special measure account maintained at the financial burden associated with the collection of
five requirements as described in this institution. information will be significantly
final rule is expected to result in a new, C. Documenting the reasonable steps reduced.133 FinCEN expects that the
incremental recordkeeping burden on the financial institution took with primary ongoing burden of compliance
certain covered financial institutions as respect to special due diligence with FinCEN special measures would
described above. Each anticipated requirements, including but not limited primarily accrue in connection with the
component of this is outlined below. to, the reasoning that informed opening of new foreign correspondent
Each affected covered financial decisions to adopt (or not adopt) new accounts, at which point a covered
institution is expected to incur a measures adding to its existing risk- financial institutions would need to
recordkeeping burden associated with based approach, and those new ensure that new account holders receive
preparing and retaining the materials measures. information on entities subject to
necessary to demonstrate compliance The estimated average annual burden special measures and agree not to
with the requirements contained in this associated with the collection of conduct transactions on their behalf.
final rule. This is expected to include information in this final rule in the first FinCEN has previously estimated that
records related to: year of operations is, in total, one financial institutions that maintain
A. Documenting the reasonable steps business day, or eight hours per affected foreign correspondent accounts will
the financial institution undertakes to financial institution. open an average of 10 new accounts per
ensure no transactions involving Huione Estimated Total Annual Burden in year.134 FinCEN expects the time
Group are processed for a foreign Year One: Approximately 1,016
correspondent account, including: hours.131 directly comparable to its eleven categories of
1. Any investigative activities Estimated Total Annual Cost in Year covered financial institutions as delineated in 31
CFR parts 1020 to 1030. The benefit factor is 1 plus
undertaken when the financial One: Approximately $121,920.132 the benefit/wages ratio, where as of June 2023, Total
institution knows or has reason to Benefits = 29.4 and Wages and salaries = 70.6 (29.4/
believe that a foreign bank’s 131 127 expected respondents multiplied by eight
70.6 = 0.42) based on the private industry workers
correspondent account has been or is hours per respondent equals 1,016 total annual series data downloaded from https://www.bls.gov/
burden hours. news.release/archives/ecec_09122023.pdf (accessed
being used to process transactions 132 The wage rate applied here is a general Dec. 22, 2024). Given that many occupations
involving Huione Group. composite hourly wage ($84.55), scaled by a provide benefits beyond cash wages (e.g., insurance,
2. Any subsequent activities private-sector benefits factor of 1.42 ($120.07 = paid leave, etc.), the private sector benefit is applied
undertaken to prevent such access, $84.55 × 1.42), that incorporates the mean wage to reflect the total cost to the employer. 1,016 total
data (available for download at https://www.bls.gov/ annual burden hours multiplied by $120 per hour
including, where necessary, termination equals a total annual cost of $121,920.
oes/tables.htm, ‘‘May 2023—National industry-
of the correspondent account.
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specific and by ownership’’) associated with the six 133 See supra Section VI.B discussion of how
B. Notifying, and documenting that occupational codes (11–1010: Chief Executives; 11– compliance with the final rule is expected to be
the financial institution has provided 3021: Computer and Information Systems integrated into covered financial institutions’
notice to, foreign correspondent account Managers; 11–3031: Financial Managers; 13–1041: broader OFAC sanctions and 311 special measures
Compliance Officers; 23–1010: Lawyers and compliance activities.
holders that the financial institution Judicial Law Clerks; 43–3099: Financial Clerks, All 134 See FinCEN, Renewal Without Change of
knows or has reason to believe provide Other) for each of the nine groupings of NAICS Prohibition on Correspondent Accounts for Foreign
services to Huione Group, that such industry codes that FinCEN determined are most Shell Banks; Records Concerning Owners of Foreign
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Federal Register / Vol. 90, No. 198 / Thursday, October 16, 2025 / Rules and Regulations 48311
burden of special measure compliance Table Three presents a summary of and provides a basis for the expected
associated with these new accounts will FinCEN’s estimates of PRA Burden as average annual costs as estimated over
not exceed 15 minutes (0.25 hours) per expected to accrue during the first three the same time horizon.
affected financial institution. years in which the final rule is effective
TABLE 3—PRA THREE-YEAR PRO FORMA BURDEN ESTIMATES
Year Number of respondents Hours per respondent Total burden hours
1 ....................................................................................................... 127 8.00 1,016.00
2 ....................................................................................................... 127 0.25 31.75
3 ....................................................................................................... 127 0.25 31.75
Average .................................................................................... 127 2.83 359.83
Estimated Three-Year Average meaning as provided in (A) Notifying those foreign
Aggregate Annual Burden: 1010.605(c)(l)(ii). correspondent account holders that the
Approximately 360 135 hours on average, (3) Covered financial institution. The covered financial institution knows or
per year. term ‘‘covered financial institution’’ has has reason to believe provide services to
Estimated Three-Year Average the same meaning as provided in Huione Group that such correspondents
Aggregate Annual Cost: Approximately 1010.605(e)(1). may not provide Huione Group with
$43,277.16.136 (4) Foreign banking institution. The access to the correspondent account
VII. Regulatory Text term ‘‘foreign banking institution’’ maintained at the covered financial
means a bank organized under foreign institution; and
List of Subjects in 31 CFR Part 1010 law, or an agency, branch, or office (B) Taking reasonable steps to identify
Administrative practice and located outside the United States of a
any use of its foreign correspondent
procedure, Banks, Banking, Brokers, bank. The term does not include an
accounts by Huione Group, to the extent
Crime, Foreign banking, Terrorism. agent, agency, branch, or office within
the United States of a bank organized that such use can be determined from
Authority and Issuance under foreign law. transactional records maintained in the
For the reasons set forth in the (5) Subsidiary. The term ‘‘subsidiary’’ covered financial institution’s normal
preamble, 31 CFR part 1010 is amended means a company of which more than course of business.
as follows: 50 percent of the voting stock or an (ii) A covered financial institution
otherwise controlling interest is owned shall take a risk-based approach when
PART 1010—GENERAL PROVISIONS by another company. deciding what, if any, other due
(b) Prohibition on accounts and due diligence measures it reasonably must
■ 1. The authority citation for part 1010
diligence requirements for covered adopt to guard against the use of its
continues to read as follows:
financial institutions— foreign correspondent accounts to
Authority: 12 U.S.C. 1829b and 1951–1959; (1) Prohibition on opening or process transactions involving Huione
31 U.S.C. 5311–5314, 5316–5336; title III,
maintaining correspondent accounts for Group.
sec. 314 Pub. L. 107–56, 115 Stat. 307; sec.
2006, Pub. L. 114–41, 129 Stat. 457; sec. 701 Huione Group. A covered financial (iii) A covered financial institution
Pub. L. 114–74, 129 Stat. 599; sec. 6403, Pub. institution shall not open or maintain in that knows or has reason to believe that
L. 116–283, 134 Stat. 3388. the United States a correspondent a foreign bank’s correspondent account
account for, or on behalf of, Huione
■ 2. Add 1010.664 to read as follows: has been or is being used to process
Group.
transactions involving Huione Group
§ 1010.664 Special measures regarding (2) Prohibition on processing shall take all appropriate steps to further
Huione Group. transactions involving Huione Group. A
investigate and prevent such access,
(a) Definitions. For purposes of this covered financial institution shall take
including the notification of its
section, the following terms have the reasonable steps not to process a
transaction for the correspondent correspondent account holder under
following meanings.
account in the United States of a foreign paragraph (b)(3)(i)(A) of this section
(1) Huione Group. The term ‘‘Huione
banking institution if such a transaction and, where necessary, termination of the
Group’’ means all subsidiaries,
branches, and offices of Huione Group involves Huione Group. correspondent account.
operating as a financial institution in (3) Special due diligence of (4) Recordkeeping and reporting. (i) A
any jurisdiction outside of the United correspondent accounts to prohibit covered financial institution is required
States, including Haowang Guarantee transactions. (i) A covered financial to document its compliance with the
(formerly known as Huione Guarantee), institution shall apply special due notification requirement set forth in this
Huione Pay PLC, and Huione Crypto diligence to its foreign correspondent section.
Spó5ka Z Ograniczona˛ accounts that is reasonably designed to (ii) Nothing in paragraph (b) of this
Odpowiedzialnościa˛ (d/b/a Huione guard against their use to process section shall require a covered financial
Crypto). transactions involving Huione Group.
institution to report any information not
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(2) Correspondent account. The term At a minimum, that special due
‘‘correspondent account’’ has the same diligence must include:
Banks and Agents for Service of Legal Process, 90 135 This estimate is the average of 1,016 expected 136 See supra note 132. An average annual burden
FR 21987, 21994 (May 22, 2025). burden hours in year one of implementation and of 63.5 hours over 3 years multiplied by $120.07 per
31.75 hours in years two and three, respectively, hour equals an average annual cost of $43,277.16.
rounded to the nearest whole hour.
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48312 Federal Register / Vol. 90, No. 198 / Thursday, October 16, 2025 / Rules and Regulations
otherwise required to be reported by law
or regulation.
Andrea M. Gacki,
Director, Financial Crimes Enforcement
Network.
[FR Doc. 2025–19571 Filed 10–15–25; 8:45 am]
BILLING CODE 4810–02–P
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