ANTI-MONEY LAUNDERING MEASURES

Monday,

March 4, 2002

Part III

Department of the

Treasury

31 CFR Part 103

Financial Crimes Enforcement Network;

Special Information Sharing Procedures

To Deter Money Laundering and Terrorist

Activity; Final Rule and Proposed Rule

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Federal Register / Vol. 67, No. 42 / Monday, March 4, 2002 / Rules and Regulations

1 See 31 U.S.C. 5312(a)(2).

2 Treasury and FinCEN are proposing to apply

section 314(a) to all BSA financial institutions. See

the proposed rule implementing section 314(a)

published elsewhere in this issue of the Federal

Register.

3 See Act sections 314(b) and (c), which provide

protections from federal and State prohibitions on

the disclosure of information to financial

institutions that engage in information sharing

consistent with the requirements of section 314(b)

and its implementing regulations.

DEPARTMENT OF THE TREASURY

31 CFR Part 103

RIN 1506–AA26

Financial Crimes Enforcement

Network; Special Information Sharing

Procedures to Deter Money

Laundering and Terrorist Activity

AGENCY: Financial Crimes Enforcement

Network (FinCEN), Treasury.

ACTION: Interim rule.

SUMMARY: FinCEN, a bureau of the

Treasury Department, is issuing

regulations to implement the provision

in the Uniting and Strengthening

America by Providing Appropriate

Tools Required to Intercept and

Obstruct Terrorism (USA PATRIOT) Act

of 2001 that encourages information

sharing among financial institutions for

purposes of identifying and reporting

activities that may involve terrorist acts

or money laundering activities.

DATES: This rule is effective March 4,

2002.

FOR FURTHER INFORMATION CONTACT:

Judith R. Starr, Chief Counsel (FinCEN),

Providing Appropriate

Tools Required to Intercept and

Obstruct Terrorism (USA PATRIOT) Act

of 2001 that encourages information

sharing among financial institutions for

purposes of identifying and reporting

activities that may involve terrorist acts

or money laundering activities.

DATES: This rule is effective March 4,

2002.

FOR FURTHER INFORMATION CONTACT:

Judith R. Starr, Chief Counsel (FinCEN),

(703) 905–3590; William Langford,

Senior Counsel for Financial Crimes,

Office of the Assistant General Counsel

(Enforcement), (202) 622–1932; or Gary

W. Sutton, Senior Banking Counsel,

Office of the Assistant General Counsel

(Banking & Finance), (202) 622–1976

(not toll-free numbers). Financial

institutions with questions about their

coverage or compliance obligations

under this rule should contact their

appropriate federal regulator.

SUPPLEMENTARY INFORMATION:

I. Background

On October 26, 2001, the President

signed into law the USA PATRIOT Act

of 2001 (Public Law 107–56) (the Act).

Of the Act’s many goals, the facilitation

of information sharing among

governmental entities and financial

institutions for the purpose of

combating terrorism and money

laundering is of paramount importance.

Section 314 of the Act furthers this goal

by providing for the sharing of

information between the government

and financial institutions, and among

financial institutions themselves. As

with many other provisions of the Act,

Congress has charged Treasury with

developing regulations to implement

these information-sharing provisions.

Section 314(b) of the Act permits

financial institutions, upon providing

notice to Treasury, to share information

with one another in order to better

identify and report to the federal

government concerning activities that

may involve money laundering or

terrorist activities. This interim rule

implements section 314(b). The

Congress authorized financial

institutions to share information to

assist in the identification of suspected

terrorists and money launderers only

after providing notice to Treasury

rmation

with one another in order to better

identify and report to the federal

government concerning activities that

may involve money laundering or

terrorist activities. This interim rule

implements section 314(b). The

Congress authorized financial

institutions to share information to

assist in the identification of suspected

terrorists and money launderers only

after providing notice to Treasury. The

notice provision outlined below—a

yearly certification to FinCEN that

information will be shared and

protected from inappropriate

disclosure—combined with the

requirement that any money laundering

or terrorist activities uncovered be

reported to FinCEN or other law

enforcement, will allow for the sharing

of information while protecting the

privacy interests of customers of

financial institutions.

Published elsewhere in this issue of

the Federal Register is a notice of

proposed rulemaking that solicits

comments on proposed provisions that

are identical to this interim rule, as well

as proposed regulations to implement

the provisions of section 314(a) the Act,

which concerns enhanced cooperation

between financial institutions and

federal law enforcement agencies to

detect terrorist and money laundering

activities. Please refer to the notice of

proposed rulemaking for instructions for

submitting comments on the proposed

provisions that are identical to this

interim rule.

II. Analysis of the Interim Rule

A. General Definitions

Section 103.90—Definitions

As noted above, section 314(b) of the

Act permits financial institutions, upon

providing notice to Treasury, to share

information with one another in order to

identify and report to the federal

government activities that may involve

money laundering or terrorist activity.

Although section 314 does not define

‘‘money laundering’’ or ‘‘terrorist

activity,’’ each of these terms has well-

established definitions

ove, section 314(b) of the

Act permits financial institutions, upon

providing notice to Treasury, to share

information with one another in order to

identify and report to the federal

government activities that may involve

money laundering or terrorist activity.

Although section 314 does not define

‘‘money laundering’’ or ‘‘terrorist

activity,’’ each of these terms has well-

established definitions. Accordingly,

and consistent with the broad intent

underlying section 314(b), section

103.90(a) defines ‘‘money laundering’’

to mean any activity described in

section 1956 or 1957 of title 18, United

States Code. Similarly, section 103.90(b)

defines ‘‘terrorist activity’’ to mean an

act of domestic terrorism or

international terrorism as defined in

section 2331 of title 18, United States

Code.

B. Information Sharing Among

Financial Institutions

Section 103.110—Voluntary Information

Sharing Among Financial Institutions

The Act does not define the term

‘‘financial institution’’ for purposes of

the information sharing provisions of

314(b). Under the Bank Secrecy Act

(BSA), which is concerned with

information reporting to detect and

prevent financial crimes, the term

‘‘financial institution’’ is defined

broadly.1 Unlike section 314(a), which

involves financial institutions

responding to requests for information

from federal law enforcement agencies,2

section 314(b) involves the sharing of

information among financial institutions

and raises issues concerning

information privacy.3 For these reasons,

Treasury and FinCEN believe that it is

appropriate to define the term ‘‘financial

institution’’ for purposes of section

314(b) in a manner that is most likely to

further the identification of terrorist and

money laundering activities while

minimizing the likelihood that

information sharing will inappropriately

intrude on the privacy interests of the

customers of those institutions

r these reasons,

Treasury and FinCEN believe that it is

appropriate to define the term ‘‘financial

institution’’ for purposes of section

314(b) in a manner that is most likely to

further the identification of terrorist and

money laundering activities while

minimizing the likelihood that

information sharing will inappropriately

intrude on the privacy interests of the

customers of those institutions.

Accordingly, section 103.110(a)(2)

defines ‘‘financial institution’’ for

purposes of section 314(b) to mean (1)

a financial institution that is subject to

SAR reporting that is not a money

services business, which includes

banks, savings associations, and credit

unions; (2) a broker or dealer registered

with the Securities and Exchange

Commission under the Securities

Exchange Act of 1934 (15 U.S.C. 78a et

seq.); (3) an issuer of traveler’s checks or

money orders, (4) a registered money

transmitter, or (5) an operator of a credit

card system that is not a money services

business. Treasury and FinCEN

specifically request comment, in

connection with the proposed rule

published elsewhere in this issue of the

Federal Register, concerning whether

these entities should be included within

the definition for purposes of section

314(b) of the Act and regulation section

103.110, and whether the definition

should be expanded to include other

categories of BSA financial institutions.

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Federal Register, concerning whether

these entities should be included within

the definition for purposes of section

314(b) of the Act and regulation section

103.110, and whether the definition

should be expanded to include other

categories of BSA financial institutions.

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Federal Register / Vol. 67, No. 42 / Monday, March 4, 2002 / Rules and Regulations

Section 103.110(b) provides that upon

providing the appropriate certification

to Treasury, as described below, a

financial institution may share

information with other financial

institutions regarding individuals,

entities, organizations, and countries for

purposes of detecting, identifying, or

reporting activities that the financial

institution or association suspects may

involve money laundering or terrorist

activity. Because associations of such

financial institutions can enhance the

sharing of information among its

members, this section also permits these

associations to participate in the

information sharing process.

Prior to engaging in information

sharing, a financial institution or

association of financial institutions

must submit to FinCEN a certification

described in new Appendix B to 31 CFR

part 103, that confirms: the name of the

financial institution or association of

financial institutions; that the financial

institution is a financial institution as

defined in section 103.110(a), or in the

case of an association, that the

association’s members that intend to

engage in information sharing are

financial institutions as defined in

section 103.110(a); that the institution

or association will maintain adequate

procedures to protect the security and

confidentiality of such information; that

the institution or association will not

use any shared information for any

purpose other than as authorized in

section 103.110; and the identity of a

contact person at the financial

institution or association for matters

pertaining to in

in

section 103.110(a); that the institution

or association will maintain adequate

procedures to protect the security and

confidentiality of such information; that

the institution or association will not

use any shared information for any

purpose other than as authorized in

section 103.110; and the identity of a

contact person at the financial

institution or association for matters

pertaining to information sharing.

To streamline the certification

process, FinCEN has established a

special page on its existing Internet

website, http://www.treas.gov/fincen,

where financial institutions can enter

the appropriate information. If a

financial institution or association does

not have access to the Internet, the

certification may be mailed to FinCEN

at the address specified in the rule.

By requiring notice to Treasury before

information is shared among financial

institutions, Congress has injected

Treasury into what would otherwise be

a purely private communication. The

statute did not indicate clearly whether

prior notice to Treasury was required

before each individual communication

or whether a general notice would be

sufficient. After considering both the

need for flexibility for financial

institutions as well as the need to

ensure that the right to share

information under this section is not

being used improperly, Treasury and

FinCEN determined that the

certification should be effective for a

one-year period beginning on the date of

the certification. A re-certification,

provided to FinCEN in the same

manner, is required if a financial

institution or association intends to

continue to share information. An

annual certification will help Treasury

determine which financial institutions

are sharing information, and it will

reinforce the need for financial

institutions to protect information

shared under this section

the date of

the certification. A re-certification,

provided to FinCEN in the same

manner, is required if a financial

institution or association intends to

continue to share information. An

annual certification will help Treasury

determine which financial institutions

are sharing information, and it will

reinforce the need for financial

institutions to protect information

shared under this section. Treasury and

FinCEN balanced the minimal burden

associated with completing the brief

electronic or paper certification against

its role in protecting the privacy

interests of customers of financial

institutions.

Section 103.110(c) requires each

financial institution or association of

financial institutions that engages in the

sharing of information to maintain

adequate procedures to protect the

security and confidentiality of such

information. This section also provides

that information received by a financial

institution or association of financial

institutions pursuant to this section

shall only be used for identifying and

reporting on activities that may involve

terrorist or money laundering activities,

or determining whether to close or

maintain an account, or to engage in a

transaction. A financial institution that

fails to comply with these restrictions

on the use of shared information may

have its certification revoked or

suspended. See 103.110(g).

Section 103.110(d) provides that a

financial institution or association of

financial institutions that engages in the

sharing of information and that

complies with sections 103.110(b) and

in an account, or to engage in a

transaction. A financial institution that

fails to comply with these restrictions

on the use of shared information may

have its certification revoked or

suspended. See 103.110(g).

Section 103.110(d) provides that a

financial institution or association of

financial institutions that engages in the

sharing of information and that

complies with sections 103.110(b) and

(c) shall not be liable to any person

under any law or regulation of the

United States, under any constitution,

law, or regulation of any State or

political subdivision thereof, or under

any contract or other legally enforceable

agreement (including any arbitration

agreement), for such sharing, or for any

failure to provide notice of such sharing,

to an individual, entity, or organization

that is the subject of such sharing.

Section 103.110(e) provides a means

for financial institutions to voluntarily

report information to law enforcement

concerning suspicious transactions that

may relate to money laundering or

terrorist activity that may come to the

financial institution’s attention as a

result of discussions with other

financial institutions, or otherwise. In

order to accord the highest priority to

suspected terrorist activity, a financial

institution should report such

information to FinCEN by calling the

Financial Institutions Hotline (1–866–

556–3974). The purpose of the Financial

Institutions Hotline is to facilitate the

immediate transmittal of this

information to law enforcement.

Financial institutions identifying other

suspicious transactions should report

such transactions by promptly filing a

SAR in accordance with applicable

regulations, even if they provide

information over the Financial

Institutions Hotline. The Financial

Institutions Hotline is intended to

provide to law enforcement and other

authorized recipients of SAR

information the essence of the

suspicious activity in an expedited

fashion

fying other

suspicious transactions should report

such transactions by promptly filing a

SAR in accordance with applicable

regulations, even if they provide

information over the Financial

Institutions Hotline. The Financial

Institutions Hotline is intended to

provide to law enforcement and other

authorized recipients of SAR

information the essence of the

suspicious activity in an expedited

fashion. Use of the Financial

Institutions Hotline is voluntary and

does not affect an institution’s

responsibility to file a SAR in

accordance with applicable regulations.

Section 103.110(f) clarifies that

voluntary reporting under section

103.110 does not relieve a financial

institution from any obligation it may

have to file a Suspicious Activity Report

pursuant to a regulatory requirement, or

to otherwise directly contact a federal

agency concerning individuals, entities,

or organizations suspected of engaging

in money laundering or terrorist

activities.

Section 103.110(g) provides that a

federal regulator of a financial

institution, or FinCEN in the case of a

financial institution that does not have

a federal regulator, may revoke or

suspend a certification provided by a

financial institution under this section if

the regulator or FinCEN determines that

the financial institution has failed to

comply with the requirements of

paragraph (c) of this section. Treasury

and FinCEN believe this provision is

necessary to preclude further

participation in information sharing

under the authority of section 103.110

by a financial information that fails to

accord confidentiality to shared

information, or uses that information for

purposes other than as permitted by

section 103.110(c). A financial

institution with respect to which a

certification has been revoked or

suspended may not engage in

information sharing under this section

during the period of such revocation or

suspension.

III

rity of section 103.110

by a financial information that fails to

accord confidentiality to shared

information, or uses that information for

purposes other than as permitted by

section 103.110(c). A financial

institution with respect to which a

certification has been revoked or

suspended may not engage in

information sharing under this section

during the period of such revocation or

suspension.

III. Administrative Procedure Act

In Executive Order 13224 (September

23, 2001), the President found that the

continuing and immediate threat of

further attacks on the United States

constitutes an unusual and

extraordinary threat to the national

security, foreign policy, and economy of

the United States. The interim rule

implements statutory provisions

intended to prevent terrorist activity by

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Federal Register / Vol. 67, No. 42 / Monday, March 4, 2002 / Rules and Regulations

uncovering and disrupting the financing

of terrorist acts. In light of the exigent

circumstances described in Executive

Order 13224, Treasury has determined,

pursuant to 5 U.S.C. 553(b), that it

would be contrary to the public interest

to delay the publication of this rule in

final form during the pendency of an

opportunity for public comment. For the

same reason, pursuant to 5 U.S.C.

553(d), it has been determined that there

is good cause for the interim rule to

become effective immediately upon

publication.

IV. Regulatory Flexibility Act

The provisions of the Regulatory

Flexibility Act, 5 U.S.C. 601 et seq., do

not apply to this interim rule because a

notice of proposed rulemaking is not

required under 5 U.S.C. 553 or any other

law.

V

For the

same reason, pursuant to 5 U.S.C.

553(d), it has been determined that there

is good cause for the interim rule to

become effective immediately upon

publication.

IV. Regulatory Flexibility Act

The provisions of the Regulatory

Flexibility Act, 5 U.S.C. 601 et seq., do

not apply to this interim rule because a

notice of proposed rulemaking is not

required under 5 U.S.C. 553 or any other

law.

V. Paperwork Reduction Act

The requirement in section

103.110(b)(2), concerning notification to

FinCEN that a financial institution that

intends to engage in information

sharing, and the accompanying

certification in Appendix B to 31 CFR

part 103, do not constitute a collection

of information for purposes of the

Paperwork Reduction Act. See 5 CFR

1320.3(h)(1).

The collection of information

contained in section 103.110(e),

concerning reports to the federal

government as a result of information

sharing among financial institutions,

will necessarily involve the reporting of

a subset of information currently

contained in a Suspicious Activity

Report (SAR). SAR reporting has been

previously reviewed and approved by

the Office of Management and Budget

(OMB) pursuant to the Paperwork

Reduction Act and assigned OMB

Control No. 1506–0001. An agency may

not conduct or sponsor, and a person is

not required to respond to, a collection

of information unless it displays a

currently valid OMB control number.

VI. Executive Order 12866

This interim rule is not a ‘‘significant

regulatory action’’ for purposes of

Executive Order 12866. Accordingly, a

regulatory assessment is not required.

List of Subjects in 31 CFR Part 103

Authority delegations (Government

agencies), Banks and banking, Currency,

Investigations, Law enforcement,

Reporting and recordkeeping

requirements.

Dated: February 26, 2002.

James F. Sloan,

Director, Financial Crimes Enforcement

Network

‘‘significant

regulatory action’’ for purposes of

Executive Order 12866. Accordingly, a

regulatory assessment is not required.

List of Subjects in 31 CFR Part 103

Authority delegations (Government

agencies), Banks and banking, Currency,

Investigations, Law enforcement,

Reporting and recordkeeping

requirements.

Dated: February 26, 2002.

James F. Sloan,

Director, Financial Crimes Enforcement

Network.

Authority and Issuance

For the reasons set forth in the

preamble, 31 CFR part 103 is amended

as follows:

PART 103—FINANCIAL

RECORDKEEPING AND REPORTING

OF CURRENCY AND FOREIGN

TRANSACTIONS

1. The authority citation for part 103

is revised to read as follows:

Authority: 12 U.S.C. 1829b and 1951–1959;

31 U.S.C. 5311–5331; title III, sec. 314, Pub.

L. 107–56, 115 Stat. 307.

2. Add new subpart H to part 103 to

read as follows:

Subpart H—Special Information Sharing

Procedures To Deter Money Laundering

and Terrorist Activity

Sec.

103.90

Definitions.

103.100

Information sharing with federal

law enforcement agencies. [Reserved]

103.110

Voluntary information sharing

among financial institutions.

Subpart H—Special Information

Sharing Procedures To Deter Money

Laundering and Terrorist Activity

§ 103.90

Definitions.

For purposes of this subpart, the

following definitions apply:

(a) Money laundering means an

activity described in 18 U.S.C. 1956 or

1957.

(b) Terrorist activity means an act of

domestic terrorism or international

terrorism as those terms are defined in

18 U.S.C. 2331.

§ 103.100

Information sharing with federal

law enforcement agencies. [Reserved]

§ 103.110

Voluntary information sharing

among financial institutions.

(a) Definitions. For purposes of this

section:

(1) The definitions in § 103.90 apply;

(2) The term financial institution

means any financial institution

described in 31 U.S.C. 5312(a)(2) that:

l

terrorism as those terms are defined in

18 U.S.C. 2331.

§ 103.100

Information sharing with federal

law enforcement agencies. [Reserved]

§ 103.110

Voluntary information sharing

among financial institutions.

(a) Definitions. For purposes of this

section:

(1) The definitions in § 103.90 apply;

(2) The term financial institution

means any financial institution

described in 31 U.S.C. 5312(a)(2) that:

(i) Is subject to a suspicious activity

reporting requirement of subpart B of

this part and is not a money services

business, as defined in § 103.11(uu);

(ii) Is a broker or dealer in securities,

as defined in § 103.11(f);

(iii) Is an issuer of traveler’s checks or

money orders, as defined in

§ 103.11(uu)(3);

(iv) Is a money transmitter, as defined

in § 103.11(uu)(5), and is required to

register as such pursuant to § 103.41; or

(v) Is an operator of a credit card

system and is not a money services

business, as defined in § 103.11(uu); and

(3) The term association of financial

institutions means a group or

organization the membership of which

is comprised entirely of financial

institutions as defined in paragraph

(a)(2) of this section.

(b) Information sharing among

financial institutions—(1) In general.

Subject to paragraphs (b)(2) and (g) of

this section, a financial institution or an

association of financial institutions may

engage in the sharing of information

with any other financial institution (as

defined in paragraph (a)(2) of this

section) or association of financial

institutions (as defined in paragraph (a)

(3) of this section) regarding

individuals, entities, organizations, and

countries for purposes of detecting,

identifying, or reporting activities that

the financial institution or association

suspects may involve possible money

laundering or terrorist activities.

(2) Notice requirement—(i)

Certification. A financial institution or

association of financial institutions that

intends to engage in the sharing of

information as described in paragraph

es, organizations, and

countries for purposes of detecting,

identifying, or reporting activities that

the financial institution or association

suspects may involve possible money

laundering or terrorist activities.

(2) Notice requirement—(i)

Certification. A financial institution or

association of financial institutions that

intends to engage in the sharing of

information as described in paragraph

(b)(1) of this section shall submit to

FinCEN a certification described in

Appendix B of this part.

(ii) Address. Completed certifications

may be submitted to FinCEN:

(A) By accessing FinCEN’s Internet

website, http://www.treas.gov/fincen,

and entering the appropriate

information as directed; or

(B) If a financial institution does not

have Internet access, by mail to:

FinCEN, PO Box 39, Mail Stop 100,

Vienna, VA 22183.

(iii) One year duration of certification.

Each certification provided pursuant to

paragraph (b)(2)(i) of this section shall

be effective for the one year period

beginning on the date of the

certification. In order to continue to

engage in the sharing of information

after the end of the one year period, a

financial institution or association of

financial institutions must submit a new

certification.

(c) Security and confidentiality of

information—(1) Procedures required.

Each financial institution or association

of financial institutions that engages in

the sharing of information pursuant to

this section shall maintain adequate

procedures to protect the security and

confidentiality of such information.

(2) Use of information. Information

received by a financial institution or

association of financial institutions

pursuant to this section shall not be

used for any purpose other than:

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Federal Register / Vol. 67, No. 42 / Monday, March 4, 2002 / Rules and Regulations

(2) Use of information. Information

received by a financial institution or

association of financial institutions

pursuant to this section shall not be

used for any purpose other than:

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(i) Detecting, identifying and

reporting on activities that may involve

terrorist or money laundering activities;

or

(ii) Determining whether to establish

or maintain an account, or to engage in

a transaction.

(d) Safe harbor from certain liability—

(1) In general. A financial institution or

association of financial institutions that

engages in the sharing of information

pursuant to this section shall not be

liable to any person under any law or

regulation of the United States, under

any constitution, law, or regulation of

any State or political subdivision

thereof, or under any contract or other

legally enforceable agreement (including

any arbitration agreement), for such

sharing, or for any failure to provide

notice of such sharing, to an individual,

entity, or organization that is identified

in of such sharing.

(2) Limitation. Paragraph (d)(1) of this

section shall not apply to a financial

institution or association of financial

institutions to the extent such

institution or association fails to comply

with paragraph (b) or (c) of this section.

(e) Information sharing between

financial institutions and the federal

government—(1) Terrorist activity. If, as

a result of information sharing pursuant

to this section, a financial institution

suspects that an individual, entity, or

organization is involved in, or may be

involved in terrorist activity, such

information should be reported to

FinCEN:

mply

with paragraph (b) or (c) of this section.

(e) Information sharing between

financial institutions and the federal

government—(1) Terrorist activity. If, as

a result of information sharing pursuant

to this section, a financial institution

suspects that an individual, entity, or

organization is involved in, or may be

involved in terrorist activity, such

information should be reported to

FinCEN:

(i) By calling the toll-free Financial

Institutions Hotline (1–866–556–3974);

and

(ii) If appropriate, by filing a

Suspicious Activity Report pursuant to

subpart B of this part or other applicable

regulations.

(2) Money laundering. If as a result of

information sharing pursuant to this

section, a financial institution suspects

that an individual, entity, or

organization is involved in, or may be

involved in money laundering, such

information should generally be

reported by filing a Suspicious Activity

Report in accordance with subpart B of

this part or other applicable regulations.

If circumstances indicate a need for the

expedited reporting of this information,

a financial institution may use the

Financial Institutions Hotline (1–866–

556–3974).

(f) No limitation on financial

institution reporting obligations.

Nothing in this subpart affects the

obligation of a financial institution to

file a Suspicious Activity Report

pursuant to subpart B of this part or any

other applicable regulations, or to

otherwise directly contact a federal

agency concerning individuals or

entities suspected of engaging in money

laundering or terrorist activities.

(f) No limitation on financial

institution reporting obligations.

Nothing in this subpart affects the

obligation of a financial institution to

file a Suspicious Activity Report

pursuant to subpart B of this part or any

other applicable regulations, or to

otherwise directly contact a federal

agency concerning individuals or

entities suspected of engaging in money

laundering or terrorist activities.

(g) Revocation or suspension of

certification—(1) Authority of federal

regulator or FinCEN. Notwithstanding

any other provision of this section, a

federal regulator of a financial

institution, or FinCEN in the case of a

financial institution that does not have

a federal regulator, may revoke or

suspend a certification provided by a

financial institution pursuant to

paragraph (b)(2) of this section if the

concerned federal regulator or FinCEN,

as appropriate, determines that the

financial institution has failed to

comply with the requirements of

paragraph (c) of this section. Nothing in

this paragraph (g)(1) shall be construed

to affect the authority of any federal

regulator with respect to any financial

institution.

(2) Effect of revocation or suspension.

A financial institution with respect to

which a certification has been revoked

or suspended may not engage in

information sharing under the authority

of this section during the period of such

revocation or suspension.

3. The Appendix to part 103 is

redesignated as Appendix A to part 103

and the heading is revised to read as

follows:

Appendix A to Part 103—

Administrative Rulings

*

*

*

*

*

4. Appendix B is added to part 103 to

read as follows:

Appendix B to Part 103—Certification

for Purposes of Section 314(b) of the

USA Patriot Act and 31 CFR 103.110

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ised to read as

follows:

Appendix A to Part 103—

Administrative Rulings

*

*

*

*

*

4. Appendix B is added to part 103 to

read as follows:

Appendix B to Part 103—Certification

for Purposes of Section 314(b) of the

USA Patriot Act and 31 CFR 103.110

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9878

Federal Register / Vol. 67, No. 42 / Monday, March 4, 2002 / Rules and Regulations

[FR Doc. 02–5006 Filed 3–1–02; 8:45 am]

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