29 January 1998
Source: http://www.access.gpo.gov/su_docs/aces/aces140.html

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[Federal Register: January 29, 1998 (Volume 63, Number 19)]
[Notices]
[Page 4521-4522]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29ja98-161]

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DEPARTMENT OF THE TREASURY


Financial Crimes Enforcement Network; Proposed Collection;
Comment Request

AGENCY: Financial Crimes Enforcement Network, Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury, as part of its continuing
effort to reduce paperwork and respondent burden, invites the general
public and other Federal agencies to take this opportunity to comment
on proposed and/or continuing information collections, as required by
the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C.
3506(c)(2)(A)). Currently, the Financial Crimes Enforcement Network
(``FinCEN'') is soliciting comments concerning certain regulations in
31 CFR part 103 relating to Financial Recordkeeping and Reporting of
Currency and Foreign Transactions, and TD F 90-22.1, Report of Foreign
Bank and Financial Accounts.

DATES: Written comments should be received on or before March 30, 1998
to be assured of consideration.

ADDRESSES: Direct all written comments to: Office of Legal Counsel,
Financial Crimes Enforcement Network, Department of the Treasury, Suite
200, 2070 Chain Bridge Road, Vienna, VA 22182-2536, Attention:
Extension of OMB Number 1506-0009. Comments also may be submitted by
electronic mail to the following Internet address:
``regcomments@fincen.treas.gov'' with the caption in the body of the
text, ``Attention: Extension of OMB Number 1506-0009.''

FOR FURTHER INFORMATION CONTACT: Requests for information should be
directed to Charles Klingman, Financial Institutions Policy Specialist,
FinCEN, at (703) 905-3602.

SUPPLEMENTARY INFORMATION:

    Title: Financial Recordkeeping and Reporting of Currency and
Foreign Transactions, and TD F 90-22.1, Report of Foreign Bank and
Financial Accounts.
    OMB Number: 1506-0009. (This collection was formerly assigned
Control Number 1505-0063.)
    Form Number: TD F 90-22.1.
    Abstract: The Bank Secrecy Act, Titles I and II of Pub. L. 91-508,
as amended, codified at 12 U.S.C. 1829, 12 U.S.C. 1951-1959, and 31
U.S.C. 5311-5330, authorizes the Secretary of the Treasury, inter alia,
to issue regulations requiring records and reports that are determined
to have a high degree of usefulness in criminal, tax, and regulatory
matters. Regulations implementing Title II of the Bank Secrecy Act
(codified at 31 U.S.C. 5311-5330) appear at 31 CFR part 103. The
authority of the Secretary to administer the Bank Secrecy Act
regulations has been delegated to the Director of FinCEN.
    Money laundering is a vital component of, not only drug
trafficking, but other illegal operations throughout the world. The
reporting and recordkeeping requirements of the Bank Secrecy Act,
codified at 12 U.S.C. 1829, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-
5330, aid in creating a paper trail to trace drug and other proceeds
back to their illegal sources and help to identify the sources, volume,
and movements of domestic and international currency. The Secretary of
the Treasury has determined that the records and reports required by
the Bank Secrecy Act have a high degree of usefulness in criminal, tax,
or regulatory investigations. The information collected and retained
under these regulations and the information collected on form TD F 90-
22.1 (as well as other Bank Secrecy Act reporting and recordkeeping
requirements that are not the subject of this notice) assist federal,
state and local law enforcement in the identification, investigation,
and prosecution of individuals involved in money laundering, tax
evasion, narcotics trafficking, organized crime, fraud, embezzlement
and other crimes. The information also assists in tax collection and
examination and other regulatory matters. The implementing regulations
have been issued in 31 CFR part 103 and provide, to the extent covered
by this control number, as follows:
    1. 103.22--Financial institutions must report transactions in
currency that exceed $10,000 in one business day (103.22(a); 103.27(a),
(d), (e); 103.28). Financial institutions must satisfy requirements for
exempt customers (103.22(f), (g), and (h)). Financial institutions must
keep exemption statements of customers that have been unilaterally
exempted from the reporting requirements of 103.22(a) (103.22(d)).
Financial institutions may

[[Page 4522]]

apply to the Internal Revenue Service for additional exemption
authority not granted under 103.22(b) (103.22(e)).<SUP>1</SUP>
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    \1\ The exemption system is currently being re-examined. See the
notice of proposed rulemaking published September 8, 1997. (62 FR
47156).
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    2. 103.23--Reports required on the international transportation and
receipt of currency or monetary instruments that exceed $10,000
(103.23; 103.27(b), (d), (e)).
    3. 103.24--Reports must be filed by persons with foreign bank or
other financial accounts (103.24; 103.27(c), (d), and (e)).
    4. 103.25--Reports of transactions with foreign financial agencies
are required on a targeted basis.
    5. 103.26--Reports of certain domestic coin and currency
transactions must be made as required on a geographically targeted
basis.
    6. 103.27--Reports required by 103.22, 103.23, and 103.24 must be
filed as provided in 103.27.
    7. 103.28--Before concluding any transaction with respect to which
a report must be filed under 103.22, a financial institution must
verify and record the name of the individual presenting the transaction
and must record certain other information about the individual.
    8. 103.29--Financial institutions must maintain logs of the cash
sale of bank checks or drafts, cashier's checks, money orders and
traveler's checks between $3,000-$10,000, and must provide the logs to
Treasury, upon request.
    9. 103.32--Records must be maintained by persons having financial
interests in foreign financial accounts.
    10. 103.33--This section addresses records that must be made and
retained by all financial institutions.
    11. 103.34--This section addresses additional records required to
be made and retained by banks.
    12. 103.35--This section addresses additional records required to
be made and retained by brokers or dealers in securities.
    13. 103.36--This section addresses additional records required to
be made and retained by casinos.
    14. 103.37--This section addresses additional records required to
be made and retained by currency dealers or exchangers.
    15. 103.38--This section addresses the nature of records and
retention period.
    16. 103.43--This section addresses the availability of information.
    17. 103.45--The Secretary may grant exceptions and exemptions,
including exemptions for casinos in states whose regulatory system
substantially meets the reporting and recordkeeping requirements of 31
CFR part 103.
    18. 103.54--This section addresses special rules for casinos,
including a written compliance program.
    19. 103.71, 103.72, 103.73, 103.75, 103.76, and 103.77--These
sections address administrative rulings under the Bank Secrecy Act.
They explain how to submit a ruling request (103.71), how nonconforming
requests are handled (103.72), how oral communications are treated
(103.73), how rulings are issued (103.75), how rulings are modified or
rescinded (103.76), and how information may be disclosed (103.77).
    Form TD F 90-22-1 is filed by persons with foreign bank or other
financial accounts.
    Current Actions: This document does not change the existing
regulations or the form.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Business or other for-profit institutions, not-
for-profit institutions, individuals, (and in limited situations)
federal, state, local, and tribal governments.
    Estimated Number of Respondents: 140,000.
    Estimated Total Annual Responses: 13,000,000.
    Estimated Total Annual Burden Hours: 11,529,711.
    The following paragraph applies to all of the collections of
information covered by this notice:
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid OMB control number. Records required to be
retained under the Bank Secrecy Act must be retained for five years.
Generally, information collected pursuant to the Bank Secrecy Act is
confidential, but may be shared as provided by law with regulatory and
law enforcement authorities.

Request for Comments

    Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval. All comments will
become a matter of public record. Comments are invited on: (a) Whether
the collection of information is necessary for the proper performance
of the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information to be collected; (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology, and (e) estimates
of capital or start-up costs and costs of operation, maintenance and
purchase of services to provide information.

    Dated: January 23, 1998.
Stanley E. Morris,
Director, Financial Crimes Enforcement Network.
[FR Doc. 98-2189 Filed 1-28-98; 8:45 am]
BILLING CODE 4820-03-P
