Order: Special measure prohibiting transmittals of funds involving PM2BTC (89 FR 82499)
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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.
Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations 82499
DEPARTMENT OF THE TREASURY II. Background file reports, or both, concerning the
aggregate amount of transactions or
Financial Crimes Enforcement Network A. Statutory provisions
individual transactions.5 Through
Section 9714(a) of the Combating special measures two through four, the
31 CFR Part 1010 Russian Money Laundering Act (Pub. L. Secretary may impose additional
116–283), as amended by section recordkeeping, information collection,
Imposition of Special Measure 6106(b) of the National Defense and reporting requirements on covered
Prohibiting the Transmittal of Funds Authorization Act for Fiscal Year 2022 domestic financial institutions and
Involving PM2BTC (Pub. L. 117–81) (hereafter, ‘‘section domestic financial agencies.6 Through
9714’’),2 provides, in relevant part, that, special measure five, the Secretary may
AGENCY: Financial Crimes Enforcement if the Secretary of the Treasury prohibit, or impose conditions upon, the
Network (FinCEN), Treasury. (Secretary) ‘‘determines that reasonable opening or maintaining in the United
ACTION: Final order. grounds exist for concluding that one or States of correspondent or payable-
more financial institutions operating through accounts for or on behalf of a
SUMMARY: FinCEN is issuing notice of an outside of the United States . . . is of foreign banking institution, if the class
order, pursuant to the Combating primary money laundering concern in of transactions found to be of primary
Russian Money Laundering Act, as connection with Russian illicit finance,’’ money laundering concern may be
amended by the National Defense the Secretary may, ‘‘by order, regulation, conducted through such correspondent
Authorization Act for Fiscal Year 2022, or otherwise as permitted by law’’: (1) account or payable-through account.7 In
to prohibit certain transmittals of funds require domestic financial institutions addition to the special measures set out
by any covered financial institution and domestic financial agencies to take in 31 U.S.C. 5318A, section 9714 also
involving PM2BTC, a financial 1 or more of the special measures provides that the Secretary may impose
institution operating outside of the described in 31 U.S.C. 5318A(b); 3 or (2) a special measure prohibiting, or
United States determined to be of a prohibit, or impose conditions upon, imposing conditions upon, certain
primary money laundering concern in certain transmittals of funds (as defined transmittals of funds.8
connection with Russian illicit finance. by the Secretary) by any domestic
financial institution or domestic B. PM2BTC
DATES: This order is effective October financial agency, if such transmittal of PM2BTC is a CVC exchanger, a
11, 2024. funds involves any such institution. The category of VASP, that exists as a
FOR FURTHER INFORMATION CONTACT: The authority of the Secretary to administer collection of several exchange services.
FinCEN Resource Center, 1–800–767– both section 9714 and the Bank Secrecy By its own account, PM2BTC is
2825 or electronically at [email protected]. Act (BSA) has been delegated to comprised of the following exchange
FinCEN.4 services: PM2BTC.ME, BTC2PM.ME,
SUPPLEMENTARY INFORMATION: The six special measures set out in PM2CASHIN.ME, BTC2CASHIN.ME,
I. Summary of Order section 9714 are prophylactic safeguards PM2WM.ME, and BTC2WM.ME.9
that may be employed to defend the Although PM2BTC—through each of
This order (1) sets forth FinCEN’s United States financial system from its constituent exchange services—is
determination that PM2BTC, an money laundering and terrorist advertised as an automated web
unincorporated convertible virtual financing risks with a nexus to Russian product, FinCEN assesses that this
currency (CVC) exchanger (a type of illicit finance. The Secretary may collective grouping of exchange services
virtual asset service provider or VASP), impose one or more of these special should be considered a single
is a financial institution operating measures in order to protect the U.S. organization, and for that reason,
outside of the United States that is of financial system from such threats. FinCEN will correspondingly refer to
primary money laundering concern 1 in Specifically, the Secretary may impose this collective, its activities, and its
connection with Russian illicit finance; any of the five special measures set out website as ‘‘PM2BTC’’. Indeed,
and (2) prohibits certain transmittals of in 31 U.S.C. 5318A, commonly known notwithstanding the characterization in
funds involving PM2BTC by any as section 311 of the USA PATRIOT its advertisements, PM2BTC holds itself
covered financial institution. Act. Through special measure one, the out as a legal person insofar as PM2BTC
As set out in this order, PM2BTC, a Secretary may require domestic states—in its terms of service—that use
CVC exchanger offering CVC and fiat financial institutions and domestic of its exchange services constitutes a
currency exchange services with financial agencies to maintain records, contract between parties to an
significant ties to, and connections with, agreement, with PM2BTC expressly
2 Section 9714 (as amended) may be found in a identified as a party. Consistent with
Russia, is of primary money laundering note to 31 U.S.C. 5318A. that characterization in its terms of
in connection with Russian illicit 3 31 U.S.C. 5318A grants the Secretary the
service, FinCEN assess that PM2BTC
finance through its facilitation of funds authority, upon finding that reasonable grounds
exist for concluding that one or more financial also operates as a standard organization,
transfers by illicit actors and association
institutions operating outside of the United States comprised of its founders/operators and
with a wide array of illicit activities, is of primary money laundering concern, to require employees, with consistent and
including fraud schemes, sanctions domestic financial institutions and domestic
evasion, ransomware attacks, and child financial agencies to take certain ‘‘special 5 See section 9714(a)(1); 31 U.S.C. 5318A(b)(1).
abuse. measures.’’
6 See section 9714(a)(1); 31 U.S.C. 5318A(b)(2)–
4 Pursuant to Treasury Order 180–01, the
(b)(4).
ddrumheller on DSK120RN23PROD with RULES1
authority of the Secretary of the Treasury
1 The application of FinCEN’s authorities in this 7 See section 9714(a)(1); 31 U.S.C. 5318A(b)(5).
(Secretary) to administer the BSA, including, but
order is specific only to section 9714 of the 8 See section 9714(a)(2).
not limited to, 31 U.S.C. 5318A, has been delegated
Combating Russian Money Laundering Act, as to the Director of FinCEN. Treasury Order 180–01 9 This statement was made by the BitcoinTalk
amended. It is not intended to otherwise reflect the (Jan. 14, 2020). On August 11, 2022, and in user, ‘‘pm2btc,’’ which FinCEN assesses is the
applicability of, or obligations under, any provision accordance with Treasury Order 101–05 and 31 official account for PM2BTC, on the CVC forum
of the Bank Secrecy Act (BSA) or its implementing U.S.C. 321(b), Treasury’s Under Secretary for BitcoinTalk. See BitcoinTalk, PM2BTC Post,
regulations, and FinCEN has not considered the Terrorism & Financial Intelligence re-delegated to available at https://bitcointalk.org/
extent to which PM2BTC does business in the the Director of FinCEN the authority of the index.php?topic=639799.msg7140395#msg7140395
United States. Secretary under section 9714. (last accessed Sept. 17, 2024).
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82500 Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations
coordinated internal operations and exchange between Russian Rubles of funds as defined in 31 CFR 1010.100.
customer service interfaces. As a (RUB) and various CVCs, including PM2BTC is therefore a financial
threshold matter, PM2BTC, including Bitcoin (BTC), Litecoin (LTC), and Dash institution within the meaning of
each of its constituent exchange (DASH), as well as other CVC offered by section 9714.
services, is operated, with other Russian money service businesses— Additionally, based on public and
persons, by Sergey Sergeevich Ivanov Perfect Money 14 and WebMoney.15 As a non-public information available to
(Ivanov), a Russian national with an general matter, the names of PM2BTC’s FinCEN, PM2BTC operates outside the
established history of advertising the constituent exchange services denote United States and, although it is not
use of U.S.-based money services the exchangeable direction of the incorporated in any jurisdiction,
businesses for cashouts and drops offered CVC or fiat currencies. For PM2BTC has significant ties to, and
services on various Russian-speaking example, PM2BTC as an exchange connections with, Russia. Indeed,
cybercrime forums, ties to top-tier cyber service, converts the digital currency PM2BTC presents substantial ties to the
criminals and cybercrime services, and Perfect Money—or ‘‘PM’’—into Russian financial sector and largely—
apparent ties to other online CVC Bitcoin—or BTC—and thus, taken but not exclusively—offers exchange
exchanges and an associated payment together, the name of the exchanger— services between individual, often
processing service associated with PM2BTC—captures the service and Russian users as well as Russian
ransomware, bank fraud, malware, and direction of exchange. As a general financial institutions and financial
other suspected illicit activity. In matter, transactions through PM2BTC’s services platforms. As a threshold
addition, in its daily operations, constituent exchange services follow matter, the ‘‘Exchange Regulations and
PM2BTC relies on developers and other generally similar processes. By way of AML & KYC’’ policies for certain of
personnel. As set out in its terms of illustration, PM2BTC’s official PM2BTC’s constituent exchange
service, for example, PM2BTC’s PM2BTC.ME website details a services expressly reference, and
‘‘administration’’ conducts anti-money transaction process whereby, for indicate a need to comply with, Russian
laundering (AML) checks of all the example, PM2BTC connects to a law under certain circumstances,18 as
transactions it processes, with customer’s Perfect Money (PM) account well as require users to acknowledge
corresponding authority to verify users and coordinates the conversion of PM that payments will be processed during
and suspend the execution of the into BTC, subsequently receiving a fixed the exchange’s working hours, set on
transactions, as well as to assess a fee. To carry out this type of exchange Moscow Standard Time (MSK).19 More
‘‘commission’’ for processing the transaction, a customer would enter significantly, PM2BTC provides services
transaction.10 Moreover, each of their PM account information and a that, as noted above, permit customers
PM2BTC’s constituent exchange corresponding BTC wallet address to to exchange between Russian Rubles
services offers an identical customer which PM2BTC would send BTC. Once (RUB) and various CVCs. In fact, each of
service point of contact—‘‘pm2btc’’—on the order is submitted, PM2BTC would PM2BTC’s constituent exchange
a Russian messaging platform, and the effectuate the withdrawal of PM value services automatically converts the
same email address—‘‘support@ and send BTC to the customer- value of BTC the customer is preparing
pm2btc[.]me’’—with each apparently designated wallet, completing the to send to the service to its equivalent
offering customer service support transaction.16 Although section 9714 value in Russian Rubles.20 Among its
through PM2BTC personnel.11 As such, does not expressly define the term services, PM2BTC also provides specific
FinCEN assesses that, rather than a mere ‘‘financial institution,’’ FinCEN has long services to users in, or transacting in,
automated web product, PM2BTC is an defined that term to apply to foreign and Russia, including, for instance, offering
organization that operates as a service domestic ‘‘money transmitters,’’ services to convert BTC to cash at
provider.12 including persons that accept and certain Russian banks, permitting users
Further, in light of its activities and transmit value that substitutes for only to identify Russia for ‘‘Receivers
the services it provides, PM2BTC is a currency, such as CVC.17 VASPs, such [sic] Country’’ (meaning the service will
financial institution within the meaning as PM2BTC, are ‘‘money transmitters’’ transmit funds to Russia), providing
of section 9714. According to its official because they are engaged in the transfer customers ready access to numerous
website,13 PM2BTC allows customers to Russian banks and money service
14 Perfect Money, or PM, is a Russian financial
businesses, and offering Cyrillic script
service that allows its users to make anonymous
10 See infra Part III.A.3, for further discussion of
instant payments and to make money transfers
user interfaces.
PM2BTC’s anti-money laundering program. securely throughout the internet. Perfect Money, PM2BTC can carry out such
11 PM2BTC’s websites, available at https://
available at https://perfectmoney.com/about.html transactions quickly, with most
pm2btc.me, https://pm2btc.me/terms, https:// (last accessed Sept. 17, 2024); see also Ben [LNU],
pm2wm.me, https://pm2wm.me/terms, https://
transactions up to 30,000 RUB
The unregulated Russian payment and lending
pm2cashin.me, https://pm2cashin.me/terms, platform Perfect Money!, FinTelegram (Feb. 14,
completed within 15–60 minutes,
https://pm2cashin.me/terms, https:// 2022), available at fintelegram.com/r4i-the- although PM2BTC’s website notes that
pm2cashin.me/terms, https://btc2wm.me, https:// unregulated-russian-payment-and-lending- transactions with Alfa-Bank require up
btc2wm.me/terms, https://btc2pm.me, https:// platform-perfect-money (last accessed Sept. 17,
btc2pm.me/terms, https://btc2cashin.me, https://
to two hours.21 In addition, PM2BTC
2024).
btc2cashin.me/terms, https://pm2btc.me (last 15 WebMoney, or WM, is a Russia based global
18 BTC2CASHIN Terms, available at https://
accessed Sept. 17, 2024). online payment system that facilitates online
12 All references to PM2BTC’s Terms of Service business activities. See WebMoney, Terms of Use, btc2cashin.me/terms (last accessed Sept. 17, 2024);
are sourced from https://pm2btc.me/terms (last available at https://debt.wmtransfer.com/ PM2CASHIN Terms, available at https://
accessed Sept. 17, 2024). Rules.aspx?lang=en (last accessed Sept. 17, 2024). pm2cashin.me/terms (last accessed Sept. 17, 2024).
13 Unless noted otherwise, all references to 16 PM2BTC, available at https://pm2btc.me (last 19 Id. According to the Central Intelligence
ddrumheller on DSK120RN23PROD with RULES1
PM2BTC’s official website, web page, or policies are accessed Sept. 17, 2024). Agency’s World Fact Book, UTC +3 is the time zone
sourced from pages and links accessed via https:// 17 See, e.g., 31 U.S.C. 5312; 31 CFR 1010.100(t)(3); used in Moscow, Russia. Central Intelligence
pm2btc.me, https://pm2btc.me/terms, https:// 1010.100(ff); 1010.605(f)(iv); see also FinCEN, FIN– Agency, World Factbook: Russia, available at
pm2wm.me, https://pm2wm.me/terms, https:// 2019–G001, Application of FinCEN’s Regulations to https://www.cia.gov/the-world-factbook/countries/
pm2cashin.me, https://pm2cashin.me/terms, Certain Business Models Involving Convertible russia (last accessed Sept. 17, 2024).
20 BTC2CASHIN, available at https://
https://btc2wm.me, https://btc2wm/terms, https:// Virtual Currencies (May 9, 2019); FinCEN, FIN–
btc2pm.me, https://btc2pm.me/terms, https:// 2013–G001, Application of FinCEN’s Regulations to btc2cashin.me (last accessed Sept. 17, 2024).
btc2cashin.me, https://btc2cashin.me/terms (last Persons Administering, Exchanging, or Using 21 PM2CASHIN, available at https://
accessed Sept. 17, 2024). Virtual Currencies (Mar. 18, 2013). pm2cashin.me (last accessed Sept. 17, 2024);
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Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations 82501
has ongoing arrangements with A. The Extent to Which PM2BTC Is of the top two percent of indirect receiving
numerous Russian financial institutions Money Laundering Concern in exposure to the categories deemed to be
and financial service providers, Connection With Russian Illicit Finance associated with suspected illicit
including but not limited to JSC Alfa- Based on blockchain analysis, FinCEN activity. In short, PM2BTC has
Bank (Alfa-Bank),22 Perfect Money, identified significant ties between exceedingly high exposure to, and
WebMoney, and Limited Liability PM2BTC and a broad spectrum of illicit association with, transactions associated
Company YooMoney (YooMoney).23 For actors and illicit activities. FinCEN’s with suspected illicit activity compared
instance, according to PM2BTC’s official analysis, using the combined to peer VASPs throughout the world,
BTC2CASHIN.ME website, PM2BTC’s counterparty information from two presenting a significant money
services that offer conversion of BTC to clusters attributed to PM2BTC by laundering risk.
cash for customers contain a drop-down commercially available blockchain 2. PM2BTC’s Ties to Illicit Actors
menu called ‘‘method of obtaining’’ for analytic software found that a
customers to select which of the PM2BTC’s exposure to, and
substantial percentage of transactions facilitation of, transactions associated
financial institutions they wish to processed through PM2BTC were
transact with. The dropdown menu lists with suspected illicit activity is,
associated with wallet addresses linked importantly, consistent with its long-
numerous Russian banks and money to illicit actors and activity, including
service businesses, including, but not standing associations with a wide range
fraud shops, illicit actors or of illicit actors, including, in particular,
limited to, Alfa-Bank and YooMoney. organizations, sanctioned persons and Russian ransomware groups, darknet
III. Finding That PM2BTC Is of Primary jurisdictions, ransomware attackers, markets, and sanctioned persons.
Money Laundering Concern in darknet markets (DNMs), scam For several years, PM2BTC processed,
Connection With Russian Illicit Finance operators, child abuse materials for example, a substantial volume of
traffickers, and entities that are the transactions associated with the now-
Based on public and non-public subject of FinCEN-imposed special defunct Conti and Trickbot ransomware
information available to FinCEN, measures. In addition to the specific gangs.24 According to blockchain
FinCEN finds that reasonable grounds categories of illicit activity with which analysis using commercially available
exist for concluding that PM2BTC, a PM2BTC is associated, FinCEN blockchain analytic software, between
CVC exchanger with significant ties to determined that PM2BTC facilitates a February 5, 2018, and February 2, 2021,
and connections with Russia, is a disproportionally high volume of
financial institution of primary money suspected illicit activity compared to 24 Based on public and non-public information,
laundering concern in connection with peer exchange service providers. FinCEN assesses that, on or around 2021, the Conti
Russian illicit finance through its Moreover, alarmingly, PM2BTC also and Trickbot ransomware gangs had effectively
facilitation of funds transfers by merged and were effectively one and the same. For
employs a technique that is used to further details concerning Trickbot and its relation
Russian-affiliated illicit actors and stymie the ability to trace illicit funds to to Conti or their collective Russia connections, see
associated with a wide array of illicit or from PM2BTC, which permits illicit WIRED, Leaked Ransomware Doc Show Conti
activities, including fraud schemes, actors access to a money laundering Helping Putin from Shadows (Mar. 18, 2022),
sanctions evasion, ransomware attacks, available at https://www.wired.com/story/conti-
platform and also decreases the risk of ransomware-russia/ (describing Conti’s pledged
and child abuse. this activity being identified by allegiance to Russia, its connection to Russian
investigating authorities. cybercrime and Russia’s intelligence apparatus);
BTC2CASHIN, available at https://btc2cashin.me CPO Magazine, After Declaring Support for Russian
(last accessed Sept. 17, 2024), https:// 1. PM2BTC’s Disproportionate Volume Invasion, Conti Ransomware Gang Hit With Data
Leak (Mar. 8, 2022), available at https://
pm2cashin.me (last accessed Sept. 17, 2024); of Transactions Involving Illicit www.cpomagazine.com/cyber-security/after-
BTC2CASHIN, available at https://btc2cashin.me Activities
(last accessed Sept. 17, 2024). declaring-support-for-russian-invasion-conti-
22 On April 6, 2022, Treasury’s Office of Foreign As a threshold matter, FinCEN found ransomware-gang-hit-with-data-leak/ (concerning
Conti’s relationship with Russian law enforcement);
Assets Control (OFAC) sanctioned Alfa-Bank and that a predominant percentage of CyberScoop, Conti Ransomware Group Announces
six of its subsidiaries pursuant to E.O. 14024 for transactions processed through PM2BTC Support of Russia, Threatens Retaliatory Attack
having operated in the Russian financial services (Feb. 25, 2022), available at https://
sector. Treasury, Press Release, U.S. Treasury were linked to suspected illicit activity.
cyberscoop.com/conti-ransomware-russia-ukraine-
Escalates Sanctions on Russia for its Atrocities in Based on analysis conducted using critical-infrastructure/; Reuters, Russia-Based
Ukraine (Apr. 6, 2022), available at https:// commercially available blockchain ransomware Group Conti Issues Warning to Kremlin
home.treasury.gov/news/press-releases/jy0705. analysis software A, FinCEN has Foes (Feb. 26, 2022), available at https://
23 On February 24, 2022, OFAC sanctioned
determined that, as a percentage of all www.reuters.com/technology/russia-based-
YooMoney (also known as Yoo Money, Yu Money, ransomware-group-conti-issues-warning-kremlin-
and Yandex Money). Treasury, Press Release, U.S. funds transacted before July 2023, the foes-2022-02-25/ (concerning Trickbot’s support of
Treasury Announces Unprecedented & Expansive cumulative value of suspected illicit the Russian Government); Security Week, Conti
Sanctions Against Russia, Imposing Swift and funds accounted for up to 43.1 percent Ransomware ‘Acquires’ Trickbot as it Thrives Amid
Severe Economic Costs (Feb. 24, 2022), available at Crackdowns (Feb. 21, 2022), available at https://
https://home.treasury.gov/news/press-releases/
of all CVC received by PM2BTC. Those
www.securityweek.com/conti-ransomware-acquires-
jy0608; see also Treasury, Press Release, U.S. funds were associated with suspected trickbot-it-thrives-amid-crackdowns/; WIRED,
Treasury Escalates Sanctions on Russia for Its illicit activities that include, in order of Inside Trickbot, Russia’s Notorious Ransomware
Atrocities in Ukraine (Apr. 6, 2022), available at cumulative value, fraud schemes, Gang (Feb. 1, 2022), available at https://
https://home.treasury.gov/news/press-releases/ www.wired.com/story/trickbot-malware-group-
jy0705; Treasury, Sanctions List Search, Limited
transfers of stolen funds, sanctions
internal-messages/ (concerning the connection
Liability Company YooMoney, available at https:// evasion, terrorist financing, ransomware between Trickbot and Conti); Department of Justice,
sanctionssearch.ofac.treas.gov/ payments, and child abuse materials Russian National Sentenced for Involvement in
Details.aspx?id=34597. Yoo Money is a Moscow, transactions. Significantly, further Development and Deployment of Trickbot Malware
ddrumheller on DSK120RN23PROD with RULES1
Russia based payment processor that was acquired (Jan. 25, 2024), available at https://www.justice.gov/
by PJSC Sberbank (Sberbank) on July 2, 2020,
analysis comparing transactions through opa/pr/russian-national-sentenced-involvement-
available at https://www.crunchbase.com/ PM2BTC against transactions involving development-and-deployment-trickbot-malware;
organization/yandex-money (last accessed on Sept. 1,244 other VASPs from around the Treasury, United States and United Kingdom
17, 2024). The BTC2CASHIN.ME website uses the world indicated that, after adjusting for Sanction Additional Members of the Russia-Based
spelling ‘‘Yu Money’’, but FinCEN assesses this is Trickbot Cybercrime Gang (Sept. 7, 2023), available
a transliteration variant and will subsequently refer
the relative size of the other VASPs at https://home.treasury.gov/news/press-releases/
to the entity as ‘‘Limited Liability Company analyzed, PM2BTC is in the top one jy1714 (concerning recent U.S. government actions
YooMoney’’. See id. percent of direct receiving exposure and against Trickbot).
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82502 Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations
Trickbot, including its affiliates and between 2016 and 2022, PM2BTC Bitzlato Limited (Bitzlato), a Russian-
associates, processed approximately regularly processed transactions affiliated CVC exchanger identified by
$4,299,457 of CVC through PM2BTC.25 involving Hydra and Ferum Shop. For FinCEN in January 2023 as a financial
Those transactions constituted, by instance, between June 15, 2016, and institution operating outside of the
value, a significant majority of January 30, 2021, Hydra sent a total of United States that was of primary
PM2BTC’s ransomware-related financial $41,361 worth of CVC to PM2BTC. money laundering concern in
activity during the period. In addition, Similarly, based on analysis conducted connection with Russian illicit finance,
although the Conti and Trickbot using commercially available under section 9714.33 According to
ransomware gangs are now defunct, blockchain analytic software, Ferum blockchain analysis conducted by
PM2BTC continues to process Shop sent a total of $3,453,610 worth of FinCEN using commercially available
transactions involving CVC from CVC to PM2BTC between April 6, 2021, blockchain analytic software, between
sources attributed to other variants of and February 8, 2022. In addition, May 10, 2018, and January 17, 2023,
ransomware. although Hydra and Ferum Shop have Bitzlato sent approximately $154,429
In addition to ties to ransomware- now been shut down,30 PM2BTC worth of CVC to PM2BTC and, in turn,
related transactions, PM2BTC has a long continues to process a substantial received approximately $541,307 worth
history of facilitating transactions volume of transactions, by value, of CVC from PM2BTC.
involving darknet 26 markets, including associated with darknet markets. Taken as a whole, PM2BTC’s historic
the now-defunct Russia-linked darknet Indeed, based on analysis conducted and ongoing facilitation of transactions
markets Hydra—which was sanctioned using commercially available by, and associations with, illicit actors,
by OFAC in April 2022 27—and Ferum blockchain analytic software, PM2BTC including ransomware groups, darknet
Shop.28 Darknet markets are processed transactions valued at over markets, and sanctioned persons
fundamentally illicit in nature and can $600,000 involving other darknet connected to Russian illicit finance,
operate largely as a result of the markets between July 22, 2023, and combined with its access to
inherent anonymity of the darknet January 14, 2024. international markets presents
infrastructure, facilitating illicit activity Finally, PM2BTC has long-standing substantial money laundering risk.
because of the difficulty involved for and close ties to an array of Russian or
Russian-affiliated financial institutions 3. PM2BTC’s Lax Anti-Money Launder
law enforcement in identifying users,
that are the subject of U.S. sanctions or Policies and Procedures
infrastructure, and even domains
associated with the sale of illicit goods other restrictions. As noted earlier, The risks presented by PM2BTC
and services.29 FinCEN assesses that, PM2BTC has ongoing arrangements associations with illicit actors and
with numerous Russian financial comparative high volume of
25 This analysis takes into account only direct institutions and financial service transactional activity linked to
transfers (e.g., where an address attributed to providers, including but not limited to suspected illicit activity are
Trickbot transfers directly to PM2BTC). It does not YooMoney (an affiliate of Sberbank) and compounded by PM2BTC’s lax KYC and
include indirect exposure in which Trickbot sought
to obfuscate the transactional path between their
Alfa-Bank, each of which are the subject AML policies and procedures, as well as
addresses and PM2BTC, nor does it include any of U.S. sanctions.31 In addition, since recent technical changes that have the
transfers in which Trickbot first sent to another 2020, PM2BTC has conducted an effect of obscuring PM2BTC’s
service and subsequently sent from that service to increasing volume of transactional involvement in transactions.
PM2BTC. All transaction values throughout this
Order represent the USD exchange rate of the CVC
activity with Garantex, a Russian- Although PM2BTC purports to
at the time of the transaction. affiliated VASP that was sanctioned by maintain KYC and AML policies and
26 ‘‘Darknet’’ is a term used to refer to networks the United States in April 2022.32 procedures, those policies and
that are only accessible through the use of specific Between November 11, 2020, and procedures appear inadequate and
software or network configurations. In particular, September 20, 2023, PM2BTC engaged loosely implemented. According to its
darknet content is not indexed by web search
engines, and is often accessed via anonymized,
in CVC transactions with a value of website, PM2BTC ‘‘adhere[s] to a
encrypted systems like the software The Onion nearly $300,000 involving Garantex, and number of rules and implements a
Router (TOR). Darknet markets are online markets notably, the bulk of those transactions number of procedures aimed at
only accessible with the use of software like TOR, occurred only after sanctions were preventing the use of the service for the
and because such markets are not indexed, they can
only be found if the domain name and URL are
imposed on Garantex. During largely the purpose of money laundering
already known to the user. As a result of the same period, PM2BTC also engaged in operations.’’ 34 Moreover, as set out in
inherent anonymity of the darknet infrastructure, a sizable volume of transactions with its terms of service, PM2BTC retains the
darknets facilitate criminal activity because of the ability to, and may, suspend the
difficulty involved for law enforcement in 30 In February 2022, the Russian Ministry of
identifying users, infrastructure, and even domains execution of transactions until
Internal Affairs took down four major illicit dark
associated with the sale of illicit goods and services. websites: Sky-Fraud Forum, Trump’s Dumps, UAS
verification is carried out in accordance
27 See Treasury, Press Release, Treasury
Store, and Ferum Shop. Elliptic, Elliptic Analysis:
Sanctions Russia-Based Hydra, World’s Largest Russia Seizes Four Major Dark Web Carding Sites 33 FinCEN, Imposition of Special Measure
Darknet Market, and Ransomware-Enabling Virtual with $263 million in crypto sales (Feb. 9, 2022), Prohibiting the Transmittal of Funds Involving
Currency Exchange Garantex (Apr. 5, 2022), available at https://www.elliptic.co/blog/russia- Bitzlato, 88 FR 3919 (Jan. 23, 2023) available at
available at https://home.treasury.gov/news/press- seizes-four-major-dark-web-carding-sites-with-263- https://www.federalregister.gov/documents/2023/
releases/jy0701. million-in-crypto-sales. Because the Russian 01/23/2023-01189/imposition-of-special-measure-
28 Elliptic, Elliptic Analysis: Russia Seizes Four Ministry of Internal Affairs carried out what prohibiting-the-transmittal-of-funds-involving-
Major Dark Web Carding Sites with $263 million in amounts to a coordinated, simultaneous takedown bitzlato.
crypto sales (Feb. 9, 2022), available at https:// of multiple darknet markets, but indicated no 34 PM2BTC Terms, available at https://
www.elliptic.co/blog/russia-seizes-four-major-dark- coordination with any international partners, pm2btc.me/terms (last accessed Sept. 17, 2024);
ddrumheller on DSK120RN23PROD with RULES1
web-carding-sites-with-263-million-in-crypto-sales. FinCEN assesses Ferum Shop was at least partially BTC2CASHIN Terms, available at https://
29 FinCEN, Proposal of Special Measure operated in Russia. btc2cashin.me/terms (last accessed Sept. 17, 2024);
31 See supra notes 22–23.
Regarding Convertible Virtual Currency Mixing, as BTC2WM Terms available at https://btc2wm.me/
a Class of Transactions of Primary Money 32 See Treasury, Press Release, Treasury terms (last accessed Sept. 17, 2024); BTC2PM
Laundering Concern, 88 FR 72701 (Oct. 23, 2023), Sanctions Russia-Based Hydra, World’s Largest Terms, available at https://btc2pm.me/terms (last
available at https://www.federalregister.gov/ Darknet Market, and Ransomware-Enabling Virtual accessed Sept. 17, 2024); PM2WM Terms available
documents/2023/10/23/2023-23449/proposal-of- Currency Exchange Garantex (Apr. 5, 2022), at https://pm2wm.me/terms (last accessed Sept. 17,
special-measure-regarding-convertible-virtual- available at https://home.treasury.gov/news/press- 2024); PM2CASHIN Terms available at https://
currency-mixing-as-a-class-of-transactions. releases/jy0701. pm2cashin.me/terms (last accessed Sept. 17, 2024).
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Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations 82503
with the Financial Action Task Force term transactional histories that would connection with Russian illicit finance,
(FATF) recommendations and ‘‘request allow financial institutions to identify FinCEN has determined that the
from the User identification data and PM2BTC as the counterparty to a imposition of a special measure
data confirming the source of funds.’’ 35 transaction. This typology is not wholly prohibiting certain transmittals of funds
However, in practice, PM2BTC new and, for instance, has been involving PM2BTC is warranted.39
appears to only require users to provide employed by several VASPs of concern,
the following information in order to A. Whether the Prohibition of Certain
some of whom are subjected to OFAC
conduct a transaction: (1) the type of Transmittals of Funds Involving
sanctions. In FinCEN’s assessment, this
CVC involved; (2) the value of the CVC PM2BTC Will Address the Money
typology can be, and has been, used to
to be sent or received; and (3) an email Laundering Concern in a Manner
facilitate evasion of U.S. sanctions.
address (required ‘‘in order to Consistent With U.S. National Security
Here, FinCEN assesses that PM2BTC’s
communicate with the User, if and Foreign Policy Interests
cyclical infrastructure setup is an effort
necessary, to notify about Service’s to avoid blockchain forensics-based Given PM2BTC’s extensive
profitable offers’’).36 Such limited transaction monitoring—an outcome association with suspected illicit
information is not consistent with FATF that is already evident in the precipitous activity and illicit actors, FinCEN
recommendations. There appears to be decline in observable transactions assesses that imposing a prohibition on
no requirement to provide a name, date associated with suspected illicit activity certain transmittals of funds involving
of birth, address, national identification, since July 2023. FinCEN assesses that PM2BTC is necessary to safeguard U.S.
or any other proof of identification—all this decline in such observable national security and the U.S. financial
necessary to meaningfully establish and transactions is a result of PM2BTC’s system, as well as serve key U.S.
verify the identity of users and core efforts to avoid blockchain activity national security objectives. In light of
features of the FATF’s guidance on monitoring, and is not a true reflection the predominant percentage of
necessary official identity data points of PM2BTC’s actual business activity transactions linked to known or
for an effective KYC and AML with illicit actors. suspected illicit activity processed
program.37 Indeed, in contrast to Taken together, PM2BTC’s lax through PM2BTC, prohibiting certain
PM2BTC’s claim that it adheres to FATF implementation of KYC and AML transmittals of funds involving PM2BTC
standards, it represents that it offers policies and procedures and adoption of will insulate the U.S. financial system
‘‘[c]omplete anonymity of exchanges’’ a technical arrangement that inhibits from international money laundering
and that ‘‘[t]here is no need to register effective blockchain analysis increases and other financial crimes.
or undergo any verification to make an the risk PM2BTC poses to the In particular, prohibiting certain
exchange.’’ 38 international and U.S. financial systems. transmittals of funds involving PM2BTC
Notwithstanding its purported will further ongoing U.S. efforts to
policies and procedures, FinCEN B. Whether the Money Laundering curtail suspected Russian-associated
assesses that PM2BTC has implemented Concern Posed by PM2BTC Outweighs illicit activity and financial transactions.
technical changes to its wallet Any Legitimate Business Activity It May Targeting illicit proceeds obtained by
arrangement that have the effect of Conduct ransomware actors, especially those
obscuring its involvement when The record amply demonstrates that with a nexus to Russia, is, for instance,
transacting with other VASPs. On or PM2BTC’s services are used, to an a high priority for the United States.
around July 2023, FinCEN assesses that unusually large extent by comparison to Recent actions by FinCEN, OFAC, and
PM2BTC implemented a cyclical other CVC exchanges, to facilitate illicit intergovernmental task forces have also
infrastructure setup—a continuous activities by illicit actors. Although focused on Russia-related illicit finance
creation of new wallets which are PM2BTC offers services that could threats. Prohibiting certain transmittals
rotating and temporary—that avoids the potentially be used by licit actors, those of funds involving PM2BTC will serve
reuse of wallets and, contrary to services may be found at other VASPs, the United States’ national security and
standard practice among VASPs, including VASPs located in foreign policy interests by protecting
impedes any capacity to capture long- jurisdictions with robust AML/CFT U.S. businesses and interests from
frameworks and regulatory oversight. known ransomware threat actors, by
35 BTC2WM Terms, available at https://
Legitimate actors have access to a broad publicly countering a financing
btc2wm.me/terms (last accessed Sept. 17, 2024); range of comparable services that mechanism used by illicit entities,
BTC2PM Terms available at https://btc2pm.me/ including entities that seek to further
terms (last accessed Sept. 17, 2024); BTC2CASHIN provide for appropriate transparency
Terms, available at https://btc2cashin.me/terms and can support international efforts to the Russian state’s aims of political and
(last accessed Sept. 17, 2024). protect the integrity of the international
36 BTC2CASHIN, available at https:// 39 In connection with this action, FinCEN
financial system, including transactions
btc2cashin.me (last accessed Sept. 17, 2024); see consulted with staff at the following Departments
also, BTC2PM available at https://btc2pm.me (last
involving CVC. Accordingly, given the and agencies with regard to the proposed order and
accessed Sept. 17, 2024); BTC2WM, available at extensive flow of illegitimate funds prohibition: the Department of Justice; the
https://www.btc2wm.me (last accessed Sept. 17, through PM2BTC, FinCEN assesses that Department of State; the Board of Governors of the
2024); PM2BTC, available at https://pm2btc.me the need to protect U.S. financial Federal Reserve System; the Federal Deposit
(last accessed Sept. 17, 2024); PM2CASHIN, Insurance Corporation; the Securities and Exchange
available at https://pm2cashin.me (last accessed institutions from the money laundering Commission; the Commodity Futures Trading
Sept. 17, 2024); PM2WM, available at https:// risks presented by PM2BTC outweighs Commission; the Office of the Comptroller of the
pm2wm.me (last accessed Sept. 17, 2024). any potential legitimate utility its Currency; and the National Credit Union
37 FATF, Guidance on Digital Identity (Mar. Administration Board. Those consultations
services may provide.
2020), at 63, available at https://www.fatf-gafi.org/ involved sharing drafts and information for the
ddrumheller on DSK120RN23PROD with RULES1
content/dam/fatf-gafi/guidance/Guidance-on- IV. Imposition of Special Measure purpose of obtaining interagency views on the
Digital-Identity.pdf. Prohibiting Transmittals of Funds imposition of a prohibition on certain transmittals
38 This statement was made by the BitcoinTalk of funds by any domestic financial institution from
user, ‘‘pm2btc,’’ which FinCEN assesses is the
Involving PM2BTC or to PM2BTC, or from an account or CVC address
official account for PM2BTC, on the CVC forum Having found that PM2BTC is a administered by or on behalf of PM2BTC, and the
BitcoinTalk. See BitcoinTalk PM2BTC Post, effect that such a prohibition would have on the
available at https://bitcointalk.org/
financial institution operating outside domestic and international financial system. Each
index.php?topic=639799.msg7140395#msg7140395 the United States that is of primary of the Departments and agencies concurred in the
(last accessed Sept. 17, 2024). money laundering concern in issuance of this order.
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82504 Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations
economic destabilization. Similarly, institutions and core financial markets, exposure.42 This order allows covered
such a prohibition would sever a are limited at present. Volatility and financial institutions the flexibility to
pathway that might facilitate disruptions in the CVC ecosystem have act with discretion based on the facts
circumvention of U.S. economic been contained within the CVC markets and circumstances of a particular
sanctions, supporting the efficacy of and have not significantly spilled over transaction and comply with this order,
U.S. sanctions and complementing to financial markets and even where the originating address is no
previous actions taken by the U.S. infrastructures.41 longer accessible, where, for example,
government. Given widespread availability of other (1) CVC transfers originated from
Additionally, this action reinforces VASP services, as well as PM2BTC’s PM2BTC but were held for an extended
the expectations of AML/CFT predominant use for suspected illicit period of time in an unhosted wallet, or
compliance in the virtual asset activity, imposing a prohibition on (2) the covered financial institution’s
ecosystem in order to improve the certain transmittals of funds involving risk mitigation procedures would
identification and reporting of PM2BTC will merely remove from preclude returning funds to PM2BTC.
suspicious activity by financial transaction chains a VASP that Moreover, by providing for the rejection
institutions around the world. facilitates illicit or otherwise unduly of CVC, this order ensures that covered
risky transactions that pose a risk to the financial institutions will not be subject
B. Whether the Prohibition of Certain to an undue cost or burden associated
Transmittals of Funds Involving international financial system. This
action will not have an adverse impact with compliance.
PM2BTC Would Impose Burdens on
Legitimate Activity of PM2BTC or Third on the international payment, clearance, C. Whether Any Other Reasonable
Parties and settlement system or on legitimate Alternatives or Special Measures Would
business activities currently involving Adequately Address the Money
FinCEN assesses that prohibiting PM2BTC.
certain transmittal of funds involving Laundering Concern
Moreover, FinCEN assesses that
PM2BTC will impose limited burdens imposing a prohibition on certain FinCEN considered other special
on legitimate activities currently transmittals of funds involving PM2BTC measures available pursuant to section
transacted through PM2BTC and, will not present a significant 9714 prior to selecting the prohibition
indeed, will have a positive systemic competitive disadvantage for financial reflected in this order.43 However,
impact on the international payment, institutions organized or licensed in the prohibiting certain transmittals of funds
clearance, and settlement system. United States given PM2BTC’s relatively involving PM2BTC is the only means of
By U.S. and international standards, adequately addressing the money
small size and the relatively limited
PM2BTC represents a limited laundering concern in connection with
burden that compliance with this order
percentage of total received BTC Russian illicit finance posed by
would impose. Given the small size of
(directly and indirectly). As of April 15, PM2BTC.
PM2BTC and the comparatively low
2024, PM2BTC’s total received value In particular, none of the special
value of activity between U.S. financial
was between .0002 and 0.0014 percent measures described in 31 U.S.C. 5318A
institutions and PM2BTC, FinCEN
(respectively) of the largest U.S.- would effectively address the illicit
assesses that this would impose neither
domiciled CVC VASP (hereinafter finance threat posed by PM2BTC.44 Any
an undue cost nor substantial burden
referred to as ‘‘VASP 1’’). PM2BTC’s these financial institutions. Further, 42 FinCEN notes that CVC payment systems are
transaction history with VASP 1 totals compliance with the prohibition on often designed to limit the control of specific
just over $32 million in CVC over nearly certain transmittals of funds set out in financial institutions over transactions and to
11 years. By contrast, a CVC price and this order requires no tools or prevent rejections of funds by persons or entities
volume aggregator estimates that VASP competencies other than those already other than the sender of funds. As a result, although
1 processed more than $3 billion in covered financial institutions may institute an
employed by domestic financial internal prohibition on the sending of CVC
transfers daily 40 as of April 17, 2024. By institutions to maintain their current transactions to another address or entity, FinCEN
comparison, PM2BTC’s largest U.S.- AML/CFT compliance programs. In assesses that there are few, if any, readily available
based counterparty (hereinafter referred order to ensure that is the case, FinCEN ways for covered financial institutions to ‘‘reject’’
to as ‘‘VASP 2’’) sent approximately incoming CVC transactions (prior to receipt).
has elected to provide within this order 43 Pursuant to section 9714, these measures
$147 million worth of CVC to PM2BTC for the rejection of certain transmittals include: (1) the special measures described in 31
between 2018 and 2024, which of CVC that are received from or U.S.C. 5318A, including the imposition of
amounted to approximately 0.002 originate at PM2BTC and outline the additional recordkeeping, information collection,
percent of VASP 2’s overall sending and reporting requirements on covered U.S.
steps a covered financial institution financial institutions and/or the prohibition or
activity. As such, there is no evidence should take in such circumstances. imposition of conditions upon the opening or
that PM2BTC is a major participant in In providing for the rejection of CVC maintaining of correspondent or payable-through
the international payment system or under certain limited circumstances, accounts for or on behalf of a foreign banking
relied upon by the international banking institution; and (2) the imposition of conditions on
FinCEN acknowledges that, at this time, the transmittal of funds, as an alternative to a
community. Indeed, given its size and there are technological limitations that prohibition on the transmittal of funds.
limited international presence, the may limit or preclude covered financial 44 Likewise, imposing conditions on transmittals
legitimate business services that it offers institutions from declining CVC of funds, pursuant to section 9714(a)(2), would be
would be readily available through transfers originating at addresses insufficient to address the threat. While imposing
other regulated institutions. Further, as conditions, rather than a full prohibition, may be
outside of their control, and compliant appropriate in circumstances where the institution
noted in the February 16, 2022, institutions may find themselves in provides services for legitimate business that are
ddrumheller on DSK120RN23PROD with RULES1
Financial Stability Board’s Assessment receipt of CVC from PM2BTC despite a not easily replicated or where a complete
of Risks to Financial Stability, direct desire and effort to limit such prohibition on transactional activity would
connections between CVC as a whole, otherwise unduly harm legitimate economic
activity, PM2BTC provides a service that is easily
and systemically important financial 41 Financial Stability Board, Assessment of Risks obtainable for legitimate customers through other
to Financial Stability from Crypto-assets (Feb. 16, providers, and in this case the value of any
40 CoinGecko, Exchanges, available at https:// 2022), at 5, available at https://www.fsb.org/wp- legitimate activity it may conduct is outweighed by
www.coingecko.com/en/exchanges (last accessed content/uploads/P160222.pdf (last accessed Sept. the significant proportion of illicit financial activity
Sept. 17, 2024). 17, 2024). identified and its lack of mandatory KYC.
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Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations 82505
additional recordkeeping, information V. Order 2. Rejection of Funds and Condition on
collection, or reporting requirements, as the Transfer of Rejected Funds
A. Definitions
described in 31 U.S.C 5318A(b)(1)–(4),
would be insufficient to guard against 1. PM2BTC A covered financial institution will be
the risks posed by covered financial deemed not to have violated this Order
The order defines PM2BTC, a CVC where, upon determining that it
institutions processing transmittals of exchanger comprised of a collection of received CVC that originated from
funds involving PM2BTC. Such the services PM2BTC.ME, BTC2PM.ME, PM2BTC or from an account or CVC
measures may allow such transfers to PM2CASHIN.ME, BTC2CASHIN.ME, address administered by or on behalf of
continue to benefit of illicit actors PM2WM.ME, and BTC2WM.ME, to PM2BTC, that covered financial
connected to Russian illicit finance. mean all subsidiaries, branches, and institution rejects the transaction,
Further, placing conditions upon or offices of PM2BTC operating in any preventing the intended recipient from
prohibiting the opening or maintaining jurisdiction, as well as any successor accessing such CVC and returning the
in the United States of a correspondent entity. CVC to PM2BTC, or to the account or
account or payable-through account by 2. Convertible Virtual Currency (CVC) CVC address from which the CVC
any domestic financial institution or originated.
The order defines convertible virtual
domestic financial agency for or on
currency (CVC) as a medium of C. Order Period
behalf of a foreign banking institution,
exchange that either has an equivalent
as described in 31 U.S.C 5318A(b)(5), is value as currency, or acts as a substitute The terms of this order are effective
similarly inadequate because the types for currency, but lacks legal tender October 11, 2024, with no cessation
of CVC transactions that PM2BTC status. Despite having legal tender status date.
facilitates do not rely on correspondent in at least one jurisdiction, for the
or payable-through accounts, and D. Reservation of Authority
purpose of this order, Bitcoin is
FinCEN is unaware of such included as a type of CVC. FinCEN reserves its authority
relationships between PM2BTC and pursuant to section 9714 to impose
U.S. or foreign financial institutions. In 3. Covered Financial Institution
conditions on certain transmittals of
addition, PM2BTC’s recordkeeping is The order defines a covered financial funds from or to PM2BTC, or from or to
incomplete, so imposing additional institution as having the same meaning any account or CVC address
recordkeeping requirements is not likely as ‘‘financial institution’’ in 31 CFR administered by or on behalf of
to be successful or sufficient to address 1010.100(t). PM2BTC.
the risks it poses. For these reasons, 4. CVC Exchanger E. Other Obligations
FinCEN assesses that the prohibition on
The order defines a CVC exchanger as
certain transmittals of funds, including Nothing in this order shall be
any person engaged as a business in the
CVC, involving PM2BTC is the most exchange of CVC for fiat currency, construed to modify, impair, or
appropriate special measure. funds, or other CVC. otherwise affect any requirements or
obligations to which a covered financial
D. Whether the Special Measure 5. Recipient institution is subject pursuant to the
Prohibiting Certain Transmittals of
The order defines recipient as the BSA, including, but not limited to, the
Funds Should Be Imposed by Order or
person to be paid by the recipient’s filing of Suspicious Activity Reports
Regulation (SARs), or other applicable laws or
covered financial institution.
Pursuant to section 9714, the regulations, such as the sanctions
6. Successor Entity
Secretary may impose specified special administered and enforced by the U.S.
The order defines successor entity as Department of the Treasury’s Office of
measures, including a prohibition on
any person that replaces PM2BTC by Foreign Assets Control.
certain transmittals of funds, ‘‘by order, acquiring its assets, in whole or in part,
regulation or otherwise as permitted by and/or carrying out the affairs of F. Penalties for Noncompliance
law.’’ In determining the appropriate PM2BTC under a new name.
approach in this instance, FinCEN The covered financial institution, and
considered imposing special measures 7. Transmittal of Funds any of its officers, directors, employees,
by order or regulation. Although The order defines transmittal of funds and agents, may be liable for civil or
PM2BTC is not a large participant in the as the sending and receiving of funds, criminal penalties under 31 U.S.C. 5321
including CVC. and 5322 for violating any of the terms
international payment system, FinCEN
of this order.45
determined that proceeding by an order 8. Meaning of Other Terms
is the most appropriate course of action G. Validity of Order
given the imminent threats posed by the All terms used but not otherwise
illicit actors whose transactions and defined herein shall have the meaning Any judicial determination that any
set forth in 31 CFR Chapter X and 31 provision of this order is invalid shall
access to funds PM2BTC facilitates as
U.S.C. 5312. not affect the validity of any other
well as the ongoing transactions
provision of this order, and each other
associated with suspected illicit activity B. Prohibition of the Transmittal of
that continue to be processed through Funds Involving PM2BTC 45 Section 6106(b) of the National Defense
ddrumheller on DSK120RN23PROD with RULES1
PM2BTC. 1. Prohibition Authorization Act for Fiscal Year 2022 (Pub. L.
A copy of this order will be published 117–81) amended section 9714 of the Combatting
A covered financial institution is Russian Money Laundering Act (Pub. L. 116–283)
in the Federal Register. To the extent prohibited from engaging in a to, among other things, provide that the penalties
PM2BTC or other parties have transmittal of funds from or to PM2BTC, set forth in 31 U.S.C. 5321 and 5322 shall apply to
information relevant to this order, they violations of any order, regulation, special measure,
or from or to any account or CVC or other requirement imposed under section 9714,
may submit it to FinCEN at frc@ address administered by or on behalf of in the same manner and to the same extent
fincen.gov. PM2BTC. described in sections 5321 and 5322.
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82506 Federal Register / Vol. 89, No. 198 / Friday, October 11, 2024 / Rules and Regulations
provision shall thereafter remain in full PATCOM Patrol Commander needed to protect personnel, vessels,
force and effect. § Section and the marine environment in the
SLR Special Local Regulation navigable waters within the SLR during
Jimmy L. Kirby, U.S.C. United States Code the enforcement period of this rule.
Deputy Director, Financial Crimes
Enforcement Network. II. Background Information and IV. Discussion of the Rule
Regulatory History
[FR Doc. 2024–23430 Filed 10–10–24; 8:45 am] This rule establishes an SLR from
BILLING CODE 4810–02–P The marine event sponsor of a boat noon until 4 p.m. on October 20, 2024.
parade is expecting to draw a high The SLR will cover all navigable waters
concentration of vessels to the Norfolk within the Elizabeth River from
DEPARTMENT OF HOMELAND Harbor area along the proposed parade shoreline to shoreline beginning in the
SECURITY route. Traditionally, the Norfolk Harbor vicinity of the Craney Island Flats,
area serves as a major thoroughfare for proceeding south through the Norfolk
Coast Guard commercial traffic, naval operations, Harbor Reaches, and ending at the
ferry routes, and several other Waterside District in Norfolk, Virginia,
33 CFR Part 100 recreational uses through the connecting to promote safety along the ‘‘Mid-
waters of the James River, Elizabeth Atlantic Trump Boat Parade’’ route. The
[Docket Number USCG–2024–0919]
River, and Lower Chesapeake Bay. The southern boundaries of the SLR are
RIN 1625–AA08 Coast Guard is establishing a Special bound by the following fixed structures:
Local Regulation (SLR) to monitor the all waters north of the I–264 Norfolk/
Special Local Regulation; Elizabeth parade before, during, and after the Portsmouth (Downtown Tunnel), east of
River, Norfolk Harbor, Norfolk, VA event to minimize impacts on this the West Norfolk Bridge and west of the
AGENCY: Coast Guard, DHS.
congested waterway. We must Berkley Bridge. This SLR will also
promulgate this rule by October 20, temporarily establish the southern area
ACTION: Temporary final rule.
2024, to ensure the safety of individuals, of Anchorage N (Hospital Point) as a
SUMMARY: The Coast Guard is property, and the marine environment. First Amendment area(where people
establishing a temporary regulation for The Coast Guard is issuing this may lawfully assemble and convey their
waters of the Elizabeth River, in temporary rule under authority in 5 message in a safe manner to their
Norfolk, Virginia to protect personnel, U.S.C. 553(b)(B). This statutory intended audience), to be used at the
vessels, and the marine environment provision authorizes an agency to issue discretion of the Coast Guard Patrol
from potential hazards created by a boat a rule without prior notice and Commander (PATCOM) as a spectator
parade that is scheduled for the opportunity to comment when the area.
afternoon of October 20, 2024. Parade agency for good cause finds that those The duration of the SLR has been
participants operating within the procedures are ‘‘impracticable, tailored to protect personnel, vessels,
regulated area must comply with all unnecessary, or contrary to the public and the marine environment in these
instructions given by the on-scene interest.’’ The Coast Guard finds that navigable waters when the parade is
Patrol Commander (PATCOM). Vessels good cause exists for not publishing a scheduled to occur, while minimizing
or persons entering the regulated area notice of proposed rulemaking (NPRM) the burden on routine vessel traffic.
during the enforcement period are because it would be impracticable to Vessels or persons entering the SLR
subject to the direction and control of publish an NPRM, consider comments, during the enforcement period are
the on-scene PATCOM as designated and publish a final rule before this rule subject to the direction and control of
and specifically authorized by the needs to be in place to serve its purpose. the on-scene PATCOM, as designated
Captain of the Port, Sector Virginia. This rule is necessary to accommodate and specifically authorized by the
the number of vessels expected to Captain of the Port, Virginia.
DATES: This rule is effective on October
participate in the boat parade.
20, 2024, from noon to 4 p.m. Also, under 5 U.S.C. 553(d)(3), the V. Regulatory Analyses
ADDRESSES: To view documents Coast Guard finds that good cause exists We developed this rule after
mentioned in this preamble as being for making this rule effective less than considering numerous statutes and
available in the docket, go to https:// 30 days after publication in the Federal Executive orders related to rulemaking.
www.regulations.gov, type USCG–2024– Register. Delaying the effective date of Below we summarize our analyses
0919 in the search box and click this rule would be impracticable based on a number of these statutes and
‘‘Search.’’ Next, in the Document Type because prompt action is needed to Executive orders, and we discuss First
column, select ‘‘Supporting & Related respond to the potentially significant Amendment rights of protestors.
Material.’’ increase in vessel traffic not local to the
A. Regulatory Planning and Review
FOR FURTHER INFORMATION CONTACT: If area and to the risks associated with
you have questions about this rule, call large congregations of vessels navigating Executive Orders 12866 and 13563
or email LCDR Justin Strassfield, Sector unfamiliar waters. direct agencies to assess the costs and
Virginia Waterways Management benefits of available regulatory
III. Legal Authority and Need for Rule alternatives and, if regulation is
Division, U.S. Coast Guard; telephone
757–668–5581, email The Coast Guard is issuing this rule necessary, to select regulatory
[email protected]. under authority in 46 U.S.C. 70041. approaches that maximize net benefits.
Captains of the Port are authorized by This rule has not been designated a
ddrumheller on DSK120RN23PROD with RULES1
SUPPLEMENTARY INFORMATION:
33 CFR 100.35 to issue SLRs. The ‘‘significant regulatory action,’’ under
I. Table of Abbreviations Captain of the Port (COTP), Sector section 3(f) of Executive Order 12866, as
CFR Code of Federal Regulations
Virginia has determined that potential amended by Executive Order 14094
COTP Captain of the Port hazards associated with the proposed (Modernizing Regulatory Review).
DHS Department of Homeland Security parade starting October 20, 2024, will be Accordingly, this rule has not been
FR Federal Register a safety concern for anyone within the reviewed by the Office of Management
NPRM Notice of proposed rulemaking vicinity of the parade route. This rule is and Budget (OMB).
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