31 October 1997
Source: http://www.access.gpo.gov/su_docs/aces/aces140.html

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[Federal Register: October 31, 1997 (Volume 62, Number 211)]
[Rules and Regulations]
[Page 58909-58910]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31oc97-12]

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DEPARTMENT OF THE TREASURY

31 CFR Part 103

RIN 1506-AA12


Financial Crimes Enforcement Network; Bank Secrecy Act
Regulations; Exemption From the Requirement to Report Transactions in
Currency--Phase II; Open Working Meeting

AGENCY: Financial Crimes Enforcement Network, Treasury.

ACTION: Meeting on proposed regulations.

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SUMMARY: The Financial Crimes Enforcement Network (``FinCEN'') will
hold a working meeting to give interested persons the opportunity to
discuss with Treasury officials issues regarding proposed Bank Secrecy
Act regulations relating to exemptions from the requirement to report
transactions in currency in excess of $10,000.

DATES: November 7, 1997, 9:00 a.m. to 12 noon.

ADDRESSES: Renaissance Washington D.C. Hotel, Renaissance West Salon,
999 9th Street, NW, Washington, D.C. 20001.

FOR FURTHER INFORMATION CONTACT: Charles Klingman, Financial
Institutions

[[Page 58910]]

Policy Specialist, FinCEN, at (703) 905-3602, or Albert R. Zarate,
Attorney-Advisor, Office of Legal Counsel, FinCEN, (703) 905-3807.

SUPPLEMENTARY INFORMATION: On September 8, 1997, FinCEN issued proposed
regulations (62 FR 47156) relating to exemptions from the requirement
in 31 CFR 103.22 to report transactions in currency in excess of
$10,000.<SUP>1</SUP> The proposed regulations introduce two new classes
of exempt persons: ``non-listed businesses'' and ``payroll customers.''
The proposed regulations also provide operating rules for determining
whether a customer is an exempt person and restructure 31 CFR 103.22 to
reflect changes to the exemption system.
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    \1\ On September 8, 1997, FinCEN also issued final regulations
(62 FR 47141) exempting from the requirement to report transactions
in currency in excess of $10,000 transactions occurring between
banks and certain exempt persons. The final regulations treat the
following classes of persons as exempt if the specific requirements
of the regulations are met: (1) Banks, (2) federal, state, and local
government departments and agencies, (3) certain entities that
exercise governmental authority, (4) entities (other than banks)
listed on applicable national security exchanges, and (5) certain
subsidiaries of those listed entities. These exemptions are a step
to a simpler exemption system and implement the Money Laundering
Suppression Act of 1994.
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    FinCEN is announcing today that it will hold a meeting on November
7, 1997 to discuss issues relating to the proposed exemption
regulations. Although persons attending the meeting are encouraged to
discuss any of their concerns about the proposed regulations, FinCEN
hopes that the meeting will include discussion of the following
matters:
    1. Concerns, including specific estimates of costs, regarding the
proposed requirement to file annual reports of the aggregate currency
deposits and withdrawals by non-listed businesses and payroll
customers,
    2. Information banks currently possess about the ranges of cash
transactions by customers exempted under the administrative exemption
system (for example, the percentage and type of exempt customers with
total cash transactions of around $25,000, $50,000, $100,000, etc.),
and the potential uses of that information to assist law enforcement,
    3. Concerns regarding the prohibition against commingling personal
and business funds in the accounts of sole proprietors,
    4. suggestions on ways to shorten the list of businesses ineligible
for exemption, and
    5. Suggestions for dealing with businesses with multiple activities
one of which is not eligible for exemption, (for example, a grocery
store with both a money services business activity such as the sale of
money orders and non-money services business activities).
    The meeting is not intended as a substitute for FinCEN's request
for written comments in the notice of proposed rulemaking published
September 8, 1997. Rather, the meeting is intended to help make the
comment process as productive as possible by providing a forum between
the industry and FinCEN concerning issues relating to the proposed
regulations. The meeting will be open to the public and will be
recorded; prepared statements will be accepted for inclusion in the
record. A transcript of the meeting will be available for public
inspection and copying. Accordingly, oral or written material not
intended to be disclosed to the public should not be raised at the
meeting.

    Dated: October 27, 1997.
Stephen R. Kroll,
Federal Register Liaison Officer, Financial Crimes Enforcement Network.
[FR Doc. 97-28885 Filed 10-30-97; 8:45 am]
BILLING CODE 4820-03-P
