Amendment to the Bank Secrecy Act Regulations Relating to Orders for Transmittals of Funds by Financial Institutions

FEDERAL RESERVE SYSTEM

DEPARTMENT OF THE TREASURY

31 CFR Part 103

RIN 1506-AA17

Amendment to the Bank Secrecy Act Regulations Relating to Orders

for Transmittals of Funds by Financial Institutions

AGENCY: Financial Crimes Enforcement Network, Treasury.

ACTION: Final rule; delay of effective date.

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SUMMARY: On January 3, 1995 (60 FR 234), the Financial Crimes

Enforcement Network (FinCEN) of the Department of the Treasury

(Treasury) and the Board of Governors of the Federal Reserve System

(Board) jointly adopted a final rule (the joint rule) requiring

financial institutions to collect and retain certain information

pertaining to transmittals of funds, and Treasury adopted a final rule

(the travel rule) requiring financial institutions to include in

transmittal orders certain information collected under the joint rule.

On August 24, 1995 (60 FR 44144), Treasury delayed the effective date

of the travel rule until April 1, 1996. In response to industry

concerns about the application of the

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joint rule and the travel rule to transmittals of funds involving

foreign financial institutions, Treasury and the Board have amended the

joint rule to conform certain of the definitions of the parties to

transmittals of funds to definitions found in Article 4A of the Uniform

Commercial Code. Treasury has also amended the travel rule: To clarify

that the exceptions applicable for the joint rule are also applicable

for the travel rule; and to accommodate a compliance concern raised by

the banking industry after the close of the comment period. To ensure

that there is an adequate implementation period following final action

on the proposed amendments, which are published elsewhere in today's

Federal Register, the Treasury has delayed the effective date of the

final travel rule until May 28, 1996.

EFFECTIVE DATE: Effective April 1, 1996, the effective date of the

final rule published on January 3, 1995, at 60 FR 234, is further

delayed until May 28, 1996.

FOR FURTHER INFORMATION CONTACT: Charles D. Klingman, Office of

Financial Institutions Policy, at (703) 905-3920, or Joseph M. Myers,

Office of Legal Counsel, (703) 905-3590.

Therefore, the effective date of the final rule issued by Treasury

and published at 60 FR 234, January 3, 1995, delayed from January 1,

1996 to April 1, 1996 (60 FR 44144, August 24, 1995), is further

dalayed until May 28, 1996.

Dated: March 26, 1996.

Stanley E. Morris,

Director, Financial Crimes Enforcement Network.

[FR Doc. 96-7680 Filed 3-29-96; 8:45 am]

BILLING CODE 4820-03-P