Financial Crimes Enforcement Network; Proposed Collection; Comment Request

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:

``[email protected]'' 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)).1

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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