The U.S. Department of the Treasury today announced the identification of Belarus-based JSC CredexBank (Credex) as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act (Section 311). Treasury took this action because it has reason to believe that Credex has engaged in high volumes of transactions that are indicative of money laundering on behalf of shell corporations, and has a history of ownership by shell corporations whose own lack of transparency contributes to considerable uncertainty surrounding Credex’s true beneficial ownership.
“This action seeks to protect the U.S. financial system from a foreign financial institution whose highly suspicious transaction patterns and pervasive lack of transparency make it virtually impossible to discern whether the bank is engaged in any legitimate business. Credex’s apparent lack of even basic anti-money laundering practices and procedures puts U.S. financial institutions at risk,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen.
Treasury’s Financial Crimes Enforcement Network (FinCEN) also today filed a Notice of Proposed Rule Making (NPRM) in which it proposes requirements with respect to recordkeeping and reporting of certain financial transactions involving Credex, including attempted transactions, and proposes to prohibit U.S. financial institutions from opening or maintaining correspondent or payable-through accounts for Credex. These measures are subject to a 60-day comment period, beginning the day the NPRM is published in the Federal Register. The Notice of Finding is effective immediately. U.S. financial institutions should take this information into account as part of their overall risk management programs.
Press release link from U.S. Treasury: here
Complete Finding against Credex link: here