Filing FinCEN’s new Currency Transaction Report and Suspicious Activity Report

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Federal Register / Vol. 77, No. 40 / Wednesday, February 29, 2012 / Notices

1 Language expanding the scope of the BSA to

intelligence or counter-intelligence activities to

protect against international terrorism was added by

Section 358 of the Uniting and Strengthening

America by Providing Appropriate Tools Required

to Intercept and Obstruct Terrorism Act of 2001 (the

USA PATRIOT Act), Public Law 107–56.

2 FinCEN completed its triennial review of its

System of Records Notices. Updated Notices will be

published in the Federal Register pending the

completion of the required comment period.

3 All CMIRs are filed with the Department of

Homeland Security’s Customs and Border

Protection (CBP) at the port of entry/exit or mailed

to the Commissioner of Customs in Washington,

DC. There are no electronic filing capabilities at the

ports. A CBP contractor keys the data on the

completed form into a data tape that is

electronically uploaded to the BSA database.

FinCEN receives no paper filed CMIRs.

4 See 26 U.S.C. 6011(e)(2); see also 26 CFR

1.6050I–1(e)(3)(i) and 31 CFR 1010.330(e)(1).

Washington, DC 20423–0001. In

addition, one copy of each pleading

must be served on John K. Fiorilla, 8000

Midlantic Drive, Suite 300S, Mount

Laurel, NJ 08054.

Board decisions and notices are

available on our Web site at

www.stb.dot.gov.

Decided: February 24, 2012.

By the Board.

Rachel D. Campbell,

Director, Office of Proceedings.

Jeffrey Herzig,

Clearance Clerk.

[FR Doc. 2012–4843 Filed 2–28–12; 8:45 am]

BILLING CODE 4915–01–P

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

Agency Information Collection and

Reporting Activities; Electronic Filing

of Bank Secrecy Act (BSA) Reports;

Final Notice

AGENCY: Financial Crimes Enforcement

Network (FinCEN), Treasury.

ACTION: Final notice

of Proceedings.

Jeffrey Herzig,

Clearance Clerk.

[FR Doc. 2012–4843 Filed 2–28–12; 8:45 am]

BILLING CODE 4915–01–P

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

Agency Information Collection and

Reporting Activities; Electronic Filing

of Bank Secrecy Act (BSA) Reports;

Final Notice

AGENCY: Financial Crimes Enforcement

Network (FinCEN), Treasury.

ACTION: Final notice.

SUMMARY: FinCEN is adopting a

requirement that all financial

institutions subject to Bank Secrecy Act

(BSA) reporting use electronic filing for

certain reports beginning no later than

July 1, 2012. FinCEN will consider

limited hardship exemptions in certain

circumstances.

DATES: Effective date is July 1, 2012.

Inspection of comments received. If a

financial institution wishes to review

comments received in response to the

September 16, 2011, Federal Register

notice they may be inspected, between

10 a.m. and 4 p.m., in the FinCEN

reading room in Vienna, VA. Persons

wishing to inspect the comments

submitted must request an appointment

with the Disclosure Officer by

telephoning (703) 905–5034 (not a toll

free call). Comments received in

response to the above notice are not

open for further comment. Electronic

copies of the received comments may be

reviewed at: http://www.fincen.gov/

statutes_regs/bsa/bsa_data_field_

comment_20111118.html.

FOR FURTHER INFORMATION CONTACT: The

FinCEN Regulatory Helpline at 800–

949–2732, select option 7.

SUPPLEMENTARY INFORMATION:

Title: Bank Secrecy Act Reporting, (31

CFR chapter X).

Abstract: The statute generally

referred to as the ‘‘Bank Secrecy Act,’’

Titles I and II of Public Law 91–508, as

amended, codified at 12 U.S.C. 1829b,

12 U.S.C. 1951–1959, and 31 U.S.C

comment_20111118.html.

FOR FURTHER INFORMATION CONTACT: The

FinCEN Regulatory Helpline at 800–

949–2732, select option 7.

SUPPLEMENTARY INFORMATION:

Title: Bank Secrecy Act Reporting, (31

CFR chapter X).

Abstract: The statute generally

referred to as the ‘‘Bank Secrecy Act,’’

Titles I and II of Public Law 91–508, as

amended, codified at 12 U.S.C. 1829b,

12 U.S.C. 1951–1959, and 31 U.S.C.

5311–5332, authorizes the Secretary of

the Treasury (Secretary), inter alia, to

require financial institutions to file

reports that are determined to have a

high degree of usefulness in criminal,

tax, and regulatory matters, or in the

conduct of intelligence or counter-

intelligence activities to protect against

international terrorism, and to

implement counter-money laundering

programs.1 Regulations implementing

Title II of the BSA appear at 31 CFR

chapter X. The authority of the

Secretary to administer the BSA has

been delegated to the Director of

FinCEN.

The Secretary was granted authority

with the enactment of Title 31 U.S.C., to

require financial institutions and other

persons to file various BSA reports. The

information collected on the reports is

required to be provided pursuant to

Title 31 U.S.C., as implemented by

FinCEN regulations found throughout

31 CFR chapter X. The information

collected pursuant to this authority is

made available to appropriate agencies

and organizations as disclosed in

FinCEN’s Privacy Act System of Records

Notice.2

Current Action: In support of

Treasury’s paperless initiative and

efforts to make government operations

more efficient, FinCEN has chosen to

mandate electronic filing of certain BSA

reports effective July 1, 2012.

This requirement will significantly

enhance the quality of FinCEN’s

electronic data, improve its analytic

capabilities in supporting law

enforcement requirements, and result in

a significant reduction in real costs to

the U.S. government and ultimately to

U.S. taxpayers

erations

more efficient, FinCEN has chosen to

mandate electronic filing of certain BSA

reports effective July 1, 2012.

This requirement will significantly

enhance the quality of FinCEN’s

electronic data, improve its analytic

capabilities in supporting law

enforcement requirements, and result in

a significant reduction in real costs to

the U.S. government and ultimately to

U.S. taxpayers. Specifically, this action

makes mandatory the electronic

submission of all BSA reports excluding

the Report of International

Transportation of Currency or Monetary

Instrument Report (CMIR).3 Further, the

Report of Cash Payments Over $10,000

Received in a Trade or Business (Form

8300) may be filed electronically, but

because of statutory restrictions that

may pertain to this report, which is

required under both FinCEN and IRS

regulations,4 electronic filing of Form

8300 will not be mandatory.

Background: Since October 2002,

FinCEN has provided financial

institutions with the capability of

electronically filing BSA reports

through its system called BSA E-Filing.

Effective August 2011, the system was

expanded to support individuals filing

the Report of Foreign Bank and

Financial Accounts (FBAR) report. BSA

E-Filing is a secure, web-based

electronic filing system. It is a flexible

solution for financial institutions or

individuals, whether they file one BSA

report or thousands. BSA E-Filing is a

service that filers can access by using

their existing Internet connections

regardless of connection speed. In

addition, it is designed to minimize

filing errors and provide enhanced

feedback to filing institutions or

individuals, thereby providing a

significant improvement in data quality

ncial institutions or

individuals, whether they file one BSA

report or thousands. BSA E-Filing is a

service that filers can access by using

their existing Internet connections

regardless of connection speed. In

addition, it is designed to minimize

filing errors and provide enhanced

feedback to filing institutions or

individuals, thereby providing a

significant improvement in data quality.

BSA E-Filing, which is provided free

of charge, offers streamlined BSA

information submission; faster routing

of information to law enforcement;

greater data security and privacy

compared with paper forms; long-term

cost savings to institutions, individuals,

and the government; and ensures

compatibility with future versions of

BSA reports.

In addition, BSA E-Filing offers the

following features not available to paper

filers:

• Electronic notification of

submissions, receipt of submission, and

errors, warnings, and alerts;

• Batch validation;

• Acknowledgement that a batch-filed

currency transaction report (CTR) and/

or suspicious activity report (SAR) was

received;

• Feedback reports to filers;

• Faster acknowledgement to money

services businesses of receipt of their

registration;

• Ability to send and receive secure

messages;

• Use of Adobe forms that allows

users to create templates, reducing data

entry but still providing for printing

paper copies if the filer wants a paper

copy for its internal review and

approval processes;

• Ability for supervisory users to

assign system roles to their staff; and

• Access to training materials.

In 2010, FinCEN initiated a complete

redesign and rebuilding of a new

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a paper

copy for its internal review and

approval processes;

• Ability for supervisory users to

assign system roles to their staff; and

• Access to training materials.

In 2010, FinCEN initiated a complete

redesign and rebuilding of a new

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Federal Register / Vol. 77, No. 40 / Wednesday, February 29, 2012 / Notices

5 As of December 2011, there are over 14,500

registered E-Filing System users.

6 Copies of the XML and ACSII file formats may

be obtained by contacting the BSA E-Filing Help

Desk at 1–866–346–9478 (option 1) or via email at

BSAEFilingHelp@fincen.gov.

7 More information on filing methods via

FinCEN’s free Web-based service may be accessed

at http://bsaefiling.fincen.treas.gov/main.html.

8 See 76 FR 57799.

9 A series of predetermined questions was

designed to establish the type of institution and

filing in much the same manner as used in widely

accepted income tax filing software.

10 A delayed or damaged report becomes more

critical if it was reporting suspicious activity—

especially when relating to terrorist financing.

11 See 76 FR 57799, September 16, 2011.

12 See http://www.fincen.gov/whatsnew/html/

20120221.html.

13 The FinCEN CTR filing specifications may be

viewed at http://bsaefiling.fincen.treas.gov/news/

FinCENCTRElectronicFilingRequirements.pdf. See

Appendix D page 49.

14 See 31 CFR 1010.306(a)(1).

15 http://bsaefiling.fincen.treas.gov/FAQs.html.

system-of-record database that

significantly enhanced FinCEN’s

technical capabilities to receive,

process, share, and store BSA data. A

significant part of this upgrade was the

implementation of state-of-the-art

electronic reporting or information

collection tools

lingRequirements.pdf. See

Appendix D page 49.

14 See 31 CFR 1010.306(a)(1).

15 http://bsaefiling.fincen.treas.gov/FAQs.html.

system-of-record database that

significantly enhanced FinCEN’s

technical capabilities to receive,

process, share, and store BSA data. A

significant part of this upgrade was the

implementation of state-of-the-art

electronic reporting or information

collection tools. As of December 31,

2011, over 86% of BSA reports are filed

electronically with FinCEN.5

As a result of the 2010 initiative,

FinCEN is in the process of fielding a

new BSA Collection, Processing, and

Analytic system. The new system,

which includes significant e-filing

improvements, is designed to support

the most efficient state-of-the-art

electronic filing. The database will

accept Extensible Markup Language

(XML) based dynamic reports as well as

certain other file formats. The XML

Schema, and the American Standard

Code for Information Interchange

(ASCII) file formats are available,6 and

the electronic file specifications were

provided to filers September 8, 2011.

All filings (batch, computer-to-

computer, and discrete) will be initiated

through the BSA E-Filing System 7 using

updated registration and log-in

procedures that correct several

identified limitations noted in the

comments received on the September

16, 2011 Notice.8 Although batch and

computer-to-computer filing processes

will remain unchanged, the file format

was changed to match the database.

Batch and computer-to-computer filers

will file reports based on the electronic

file specification that was provided in

September 2011. A discrete filing (the

replacement for submitting a single

paper report) is based on Adobe

LiveCycle Designer ES dynamic forms.

The discrete function is available for all

filers but is designed especially for

small business report filers (as well as

individuals)

d computer-to-computer filers

will file reports based on the electronic

file specification that was provided in

September 2011. A discrete filing (the

replacement for submitting a single

paper report) is based on Adobe

LiveCycle Designer ES dynamic forms.

The discrete function is available for all

filers but is designed especially for

small business report filers (as well as

individuals). The discrete filing

function will be accessed by logging

into the BSA E-Filing System and

entering a pre-approved user ID and

password. During log-in to the discrete

filing option, filers will be prompted

through a series of questions.9

Today’s notice requiring filers to

submit certain BSA reports

electronically using the free FinCEN

BSA E-Filing System will provide a

range of benefits. Electronic filing will

facilitate the rapid dissemination of

financial and suspicious activity

information in connection with BSA

filings, making information contained in

these filings more readily available to—

and more easily searchable by—law

enforcement, the financial regulatory

community, and other users of BSA

data. Additionally, the requirement that

certain BSA reports be filed

electronically will result in a significant

reduction in the use of paper, producing

a positive environmental impact.

Further, the implementation of the

requirement to file electronically has the

potential to save the government a few

million dollars per year through the

reduction of expenditures associated

with current paper processing, in

particular the physical intake and

sorting of incoming reports, and the

electronic keying of reported

information into the database.

Security: Mandatory electronic filing

will provide increased security not

available with paper filings. At the

present time, all paper reports are

mailed to the IRS Enterprise Computing

Center—Detroit (ECC–D) in Detroit,

Michigan, as unclassified mail with no

special handling via the U.S. Postal

Service system

reports, and the

electronic keying of reported

information into the database.

Security: Mandatory electronic filing

will provide increased security not

available with paper filings. At the

present time, all paper reports are

mailed to the IRS Enterprise Computing

Center—Detroit (ECC–D) in Detroit,

Michigan, as unclassified mail with no

special handling via the U.S. Postal

Service system. On occasion, mailed

paper reports have been delayed, and in

some cases damaged beyond readability.

A financial institution may not discover

that a report could not be processed by

ECC–D until many months after the

report was due.10 The BSA E-Filing

System is a secure 128-bit single socket

layer (SSL) protected Web-based filing

system. Reports received are

acknowledged and any noted errors are

reported back to the filer. This process

provides the filer with a record that the

required filing was received, as well as

suggestions on how to improve the

quality of their future reports. Reports

originated by the filer are posted

securely and directly to the database,

thereby significantly reducing or

eliminating the possibility of data

compromise.

Filer Impact Assessment: On

September 16, 2011,11 FinCEN

published a notice proposing that BSA

reports be filed electronically through

the BSA E-File System by June 30, 2012,

effective July 1, 2012. In response to the

request for comments, FinCEN received

27 responses. In general, the comments

supported the requirement but noted

areas requiring further clarification from

FinCEN. A significant number of

financial institutions anticipated

encountering problems in meeting the

June date for both e-filing and

incorporating the new FinCEN CTR and

SAR formats. In response, FinCEN

published a notice extending the

deadline to implement the new reports

until March 31, 2013, (see http://

www.fincen.gov/whatsnew/pdf/

20111220.pdf) but retained the July 1,

2012, target date for electronic filing

f

financial institutions anticipated

encountering problems in meeting the

June date for both e-filing and

incorporating the new FinCEN CTR and

SAR formats. In response, FinCEN

published a notice extending the

deadline to implement the new reports

until March 31, 2013, (see http://

www.fincen.gov/whatsnew/pdf/

20111220.pdf) but retained the July 1,

2012, target date for electronic filing. As

noted in several comments, FinCEN

recognizes that mandating electronic

filing may pose a challenge for some

financial institutions. As reflected in the

notice referenced above, for those

financial institutions unable to meet the

proposed electronic filing target date,

FinCEN will consider, based upon

certain very limited hardship

exceptions, specific requests to extend

the time to electronically file the most

current paper forms for up to a year past

the mandatory electronic filing date.

Information on how financial

institutions can make such requests is

provided in a separate notice.12 In

addition, FinCEN will work with

appropriate industry regulators to

minimize the impact of this change,

while moving forward with the

electronic filing requirement.

Several commenters noted a time-to-

file change in the CTR electronic filing

specification for the FinCEN CTR from

the current 25 days to 15 days.13

FinCEN has consistently maintained a

regulatory requirement that CTRs be

filed within 15 days.14 Notwithstanding

this requirement, in connection with its

receipt of magnetic media files initiated

in late 1987, and ending in December

2008, FinCEN issued specifications

referencing a 25-day period to assist

institutions seeking to take advantage of

this filing method via a common

business practice of submitting

magnetic media files on a fixed

schedule. The 25-day period was

implemented to account for physically

transporting (shipping) the magnetic

media to the ECC–D in Detroit,

Michigan

te 1987, and ending in December

2008, FinCEN issued specifications

referencing a 25-day period to assist

institutions seeking to take advantage of

this filing method via a common

business practice of submitting

magnetic media files on a fixed

schedule. The 25-day period was

implemented to account for physically

transporting (shipping) the magnetic

media to the ECC–D in Detroit,

Michigan. FinCEN understands that this

business practice has continued with

respect to batch e-filing, particularly in

light of public FinCEN guidance

referencing the 25-day period.15 In light

of the comments received and

acknowledging that some financial

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Federal Register / Vol. 77, No. 40 / Wednesday, February 29, 2012 / Notices

16 See 75 FR 63545, October 15, 2010 and 76 FR

4747, January 26, 2011. Office of Management and

Budget (OMB) approvals of the two notices,

following FinCEN’s solicitation and review of

public comments, are as follows: FinCEN’s new

SAR, http://www.reginfo.gov/public/do/

PRAViewICR?ref_nbr=201104-1506-002, and

FinCEN’s new CTR, http://www.reginfo.gov/public/

do/PRAViewICR?ref_nbr=201105-1506-001. FinCEN

announced the availability of technical e-filing

specifications for the new SAR and CTR on

September 8, 2011, as follows: http://

www.fincen.gov/news_room/nr/html/

20110902.html.

17 Several commenters advised that

approximately 200 very small financial institutions

mail their report to their regulator who in turn posts

it to the regulator’s database.

18 See supra note 12.

19 Currently both the SEC and the CFTC require

electronic reporting, the SEC through the EDGAR

system and the CFTC through the NFC Windjammer

and Easy File systems.

20 See http://www.sec.gov/info/edgar/

regoverview.htm

vised that

approximately 200 very small financial institutions

mail their report to their regulator who in turn posts

it to the regulator’s database.

18 See supra note 12.

19 Currently both the SEC and the CFTC require

electronic reporting, the SEC through the EDGAR

system and the CFTC through the NFC Windjammer

and Easy File systems.

20 See http://www.sec.gov/info/edgar/

regoverview.htm.

21 For financial institutions subject to CFTC

oversight, see NFA Electronic Filings at http://

www.nfa.futures.org/NFA-electronic-filings/

index.HTML.

22 See the National Insurance Producer Registry

(NIPR) at http://www.nipr.com/. NIPR is a unique

public-private partnership that supports the work of

the states and the National Association of Insurance

Commissioners (NAIC) in making the producer-

licensing process more cost-effective, streamlined

and uniform for the benefit of regulators, the

insurance industry and the consumers they protect

and serve.

23 Casinos and Card Clubs with gross annual

gaming revenues in excess of $1 million (see 31

CFR 1010.100(t)(5)(ii) and (6)(ii)).

24 See supra note 12.

25 See the Small Business Administration’s (SBA)

Web site http://www.sba.gov/content/what-sbas-

definition-small-business-concern for SBA’s

definition of a small business concern.

institutions may need to change their

business processes to become compliant

with the rules, FinCEN has determined

that it will temporarily maintain the 25-

day compliance period referenced in its

earlier specifications until March 31,

2013. This temporary extension to the

filing requirements should allow

sufficient time for filers to adjust

submission schedules to meet

established regulatory requirements.

A few commenters noted specific E-

File System/Site technical concerns,

such as difficulty with password

management or field lengths. Several of

the issues noted in these comments will

be addressed by planned system

enhancements, and others are being

evaluated

requirements should allow

sufficient time for filers to adjust

submission schedules to meet

established regulatory requirements.

A few commenters noted specific E-

File System/Site technical concerns,

such as difficulty with password

management or field lengths. Several of

the issues noted in these comments will

be addressed by planned system

enhancements, and others are being

evaluated. Several commenters pointed

out that their institutions filed very few

BSA reports a year and noted that filing

paper reports was their preferred

method. In response, FinCEN would

note that the discrete option of the BSA

E-Filing System was specifically

designed to accommodate the small

volume filers. One commenter requested

that FinCEN permit firms to file BSA

reports in a hardcopy format as a

contingency alternative if material

issues arise with their respective e-filing

systems or FinCEN’s database, which

would prevent firms from, among other

things, batch filing their reports. As a

response, FinCEN would note that it has

Continuity of Operations Plans (COOP)

and E-filing System back-up

contingency plans in place to address

such issues should they occur.

Additionally, the BSA E-Filing helpdesk

is available to assist BSA filers as

necessary if technical problems are

encountered. Finally, one commenter

elected to direct comments to two

earlier notices,16 which did not address

mandatory electronic filing.

Industry Impact Assessment:

a. Depository institutions: Based on

responses and updated information,

FinCEN believes this change in filing

procedures will have some impact on

small institutions, but that the overall

impact on this group of filers will be

minimal. Most depository institutions

are currently required to file quarterly

call or thrift financial reports with their

regulator electronically 17 through a

Web-based portal provided by the

appropriate federal regulator

information,

FinCEN believes this change in filing

procedures will have some impact on

small institutions, but that the overall

impact on this group of filers will be

minimal. Most depository institutions

are currently required to file quarterly

call or thrift financial reports with their

regulator electronically 17 through a

Web-based portal provided by the

appropriate federal regulator. This same

electronic connectivity may be used to

file BSA reports with FinCEN by logging

in to the BSA E-Filing System Web-

based portal. As noted above for those

financial institutions unable to meet the

proposed electronic filing deadline,

FinCEN will consider, based upon

certain very limited hardship

exceptions, specific requests to file the

most current paper forms for up to one

year but no later than July 1, 2013.18

b. Broker-Dealers, Futures

Commission Merchants (FCMs),

Introducing Brokers in Commodities

(IB–Cs), and Mutual Funds: In view of

the comments received and the notice

extending the deadline to implement

the new reports until March 31, 2013,

this change in filing procedures should

have minimal impact on these filing

institutions. This group is highly

automated and enjoys robust electronic

buying and selling systems with

sophisticated processing and reporting

systems.19 Currently the Securities and

Exchange Commission (SEC) mandates

electronic filing,20 as does the

Commodity Futures Trading

Commission (CFTC).21

c. Insurance companies: FinCEN

received no comments from this

financial sector. In view of this, and an

understanding that institutions in this

financial sector are highly automated,22

FinCEN believes that this change in

filing procedures will have minimal

impact on these institutions.

d. Casinos and Card Clubs: 23 FinCEN

received no comments from this

financial sector

mission (CFTC).21

c. Insurance companies: FinCEN

received no comments from this

financial sector. In view of this, and an

understanding that institutions in this

financial sector are highly automated,22

FinCEN believes that this change in

filing procedures will have minimal

impact on these institutions.

d. Casinos and Card Clubs: 23 FinCEN

received no comments from this

financial sector. In view of this, and an

understanding that institutions in this

financial sector are highly automated,

FinCEN continues to believe this change

in filing procedures will have minimal

impact on these institutions.

e. Money Services Businesses (MSBs):

FinCEN received comments from two

commenters. Both were supportive of

moving to electronic filing but noted

timing and technical issues that

mirrored other commenters. The relief

provided by delaying the

implementation date of the FinCEN CTR

and SAR to March 2013 addresses their

primary concern. Information in trade

journals and other publications, along

with informal comments from the

Internal Revenue Service’s Small

Business/Self Employed group, indicate

that most filers have Internet

connectivity. They routinely place

orders for goods and services through

the Internet and access bill paying

services electronically. Information

gained from a review of MSB filings of

the CTR, SAR, and Registration of

Money Services Business (RMSB) forms

indicates that this group will be most

impacted in the form of training needed

to use the electronic E-Filing System.

One large MSB acknowledges the

significant benefits of mandatory E-

Filing. However, they note that the

elimination of paper filing will

significantly impact 25% to 30% of

their small delegate population, and

they strongly suggest that some form of

paper filing remain acceptable for at

least six months beyond the effective

date of July 1, 2012, or for a minimum

of one year from publication of the final

rule

edges the

significant benefits of mandatory E-

Filing. However, they note that the

elimination of paper filing will

significantly impact 25% to 30% of

their small delegate population, and

they strongly suggest that some form of

paper filing remain acceptable for at

least six months beyond the effective

date of July 1, 2012, or for a minimum

of one year from publication of the final

rule. To lessen any impact, FinCEN will

provide for hardship exceptions in case

unforeseen situations arise and will be

providing information on how to make

requests for limited hardship exceptions

in a separate notice.24 Additionally, any

impact is expected to be

counterbalanced by the benefits of e-

filing to the government and ultimately

to taxpayers.

f. Service Providers: There is a

network of third-party service providers

with which financial institutions may

contract to provide electronic filing

services to the BSA E-Filing System.

FinCEN believes this group to be highly

automated and many are already using

the BSA E-Filing System. FinCEN does

not anticipate that this requirement will

have an impact on this group.

g. Small businesses: 25 In support of

small businesses, FinCEN’s Office of

Compliance will provide procedures for

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12370

Federal Register / Vol. 77, No. 40 / Wednesday, February 29, 2012 / Notices

26 Supra footnote 12.

27 See Background section.

28 See 75 FR 75598, December 3, 2010, footnote

20. Such ‘‘dual filing’’ requirements, regardless of

whether the State authority examines for

compliance with State laws requiring compliance

with the BSA, are inherently inconsistent with 31

U.S.C. 5318(g)(4), which clearly intends that all

SARs be filed to a single government agency

designated by the Secretary of the Treasury

ground section.

28 See 75 FR 75598, December 3, 2010, footnote

20. Such ‘‘dual filing’’ requirements, regardless of

whether the State authority examines for

compliance with State laws requiring compliance

with the BSA, are inherently inconsistent with 31

U.S.C. 5318(g)(4), which clearly intends that all

SARs be filed to a single government agency

designated by the Secretary of the Treasury.

29 FinCEN–SAR, FinCEN–CTR, Designation Of

Exempt Person, CMIR, RMSB, Foreign Bank

Account Report, and the Report of Cash Payments

Over $10,000 Received in a Trade or Business

(Form 8300).

30 See OMB control numbers 1506–0065, 1506–

0064, 1506–0009, 1506–0013, 1506–0014, 1506–

0018.

31 See OMB control numbers 1506–0051 through

1506–0059.

32 All filers subject to BSA reporting requirements

excluding CMIR, see supra note 3.

33 Includes all reporting and recordkeeping

burden associated with filing BSA reports.

filers to request a temporary limited

hardship exemption from mandatory E-

Filing. A small business may request,

and may be granted an emergency

extension by FinCEN based upon

certain very limited hardship

exemptions.26

h. Individual filers: Effective August

2011, FinCEN expanded the option to

electronically file the Report of Foreign

Bank and Financial Accounts (FBAR) to

individuals. Individuals worldwide can

sign up to file their individual FBARs

by accessing the FinCEN E-Filing Web

site.27

i. Other Filing Issues: One commenter

noted a potential issue with duplicate

filings that are currently required by

several States. FinCEN will continue to

address the duplicate filing issue with

the States involved. FinCEN noted this

issue in its SAR Confidentiality notice

filing.28

j. Report of Cash Payments Over

$10,000 Received in a Trade or Business

(Form 8300)

-Filing Web

site.27

i. Other Filing Issues: One commenter

noted a potential issue with duplicate

filings that are currently required by

several States. FinCEN will continue to

address the duplicate filing issue with

the States involved. FinCEN noted this

issue in its SAR Confidentiality notice

filing.28

j. Report of Cash Payments Over

$10,000 Received in a Trade or Business

(Form 8300). Although FinCEN is

making electronic filing of the Report of

Cash Payments Over $10,000 Received

in a Trade or Business, Form 8300,

available to the filing public and will

encourage the use of electronic filing as

a fast and secure means for filers to meet

their obligations, FinCEN is not

mandating the E-Filing of this report at

this time to remain consistent with

statutory restrictions under 26 U.S.C.

6011(e)(2) that may pertain to this

report, which is required under both

FinCEN and IRS regulations.

Paperwork Reduction Act (PRA)

Type of Review: Review of the final

notice to mandate the electronic filing of

BSA reports. The burden associated

with this notice is reflected below.

Affected Public: Businesses or other

for-profit and non-profit institutions.

Frequency: As required.

Estimated Burden: Effective with the

FinCEN IT Modernization, there will be

seven BSA reports.29 The burden for

electronic filing and recordkeeping of

each BSA report is reflected in the OMB

approved burden 30 for each of these

reports. The non-reporting

recordkeeping burden is reflected

separately.31

Estimated Number of Respondents for

all reports = 74,900.32

Estimated Total Annual Responses for

all reports = 16,172,770.

Estimated Total Annual Burden Hours

= 20,874,761.33

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

pursuant to the BSA must be retained

for five years.

Dated: February 22, 2012.

James H

es for

all reports = 16,172,770.

Estimated Total Annual Burden Hours

= 20,874,761.33

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

pursuant to the BSA must be retained

for five years.

Dated: February 22, 2012.

James H. Freis, Jr.,

Director, Financial Crimes Enforcement

Network.

[FR Doc. 2012–4756 Filed 2–28–12; 8:45 am]

BILLING CODE 4810–02–P

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

Designation of 3 Individuals Pursuant

to Executive Order 13224 of September

23, 2001, ‘‘Blocking Property and

Prohibiting Transactions With Persons

Who Commit, Threaten To Commit, or

Support Terrorism’’

AGENCY: Office of Foreign Assets

Control, Treasury.

ACTION: Notice.

SUMMARY: The Treasury Department’s

Office of Foreign Assets Control

(‘‘OFAC’’) is publishing the names of 3

individuals whose property and

interests in property are blocked

pursuant to Executive Order 13224 of

September 23, 2001, ‘‘Blocking Property

and Prohibiting Transactions With

Persons Who Commit, Threaten To

Commit, or Support Terrorism.’’

DATES: The designations by the Director

of OFAC of the 3 individual(s) and 0

entity(-ies) in this notice, pursuant to

Executive Order 13224, are effective on

February 23, 2012.

FOR FURTHER INFORMATION CONTACT:

Assistant Director, Compliance

Outreach & Implementation, Office of

Foreign Assets Control, Department of

the Treasury, Washington, DC 20220,

tel.: 202/622–2490.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

This document and additional

information concerning OFAC are

available from OFAC’s Web site

(www.treas.gov/ofac) or via facsimile

through a 24-hour fax-on-demand

service, tel.: 202/622–0077

ce

Outreach & Implementation, Office of

Foreign Assets Control, Department of

the Treasury, Washington, DC 20220,

tel.: 202/622–2490.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

This document and additional

information concerning OFAC are

available from OFAC’s Web site

(www.treas.gov/ofac) or via facsimile

through a 24-hour fax-on-demand

service, tel.: 202/622–0077.

Background

On September 23, 2001, the President

issued Executive Order 13224 (the

‘‘Order’’) pursuant to the International

Emergency Economic Powers Act, 50

U.S.C. 1701–1706, and the United

Nations Participation Act of 1945, 22

U.S.C. 287c. In the Order, the President

declared a national emergency to

address grave acts of terrorism and

threats of terrorism committed by

foreign terrorists, including the

September 11, 2001 terrorist attacks in

New York, Pennsylvania, and at the

Pentagon. The Order imposes economic

sanctions on persons who have

committed, pose a significant risk of

committing, or support acts of terrorism.

The President identified in the Annex to

the Order, as amended by Executive

Order 13268 of July 2, 2002, 13

individuals and 16 entities as subject to

the economic sanctions. The Order was

further amended by Executive Order

13284 of January 23, 2003, to reflect the

creation of the Department of Homeland

Security.

Section 1 of the Order blocks, with

certain exceptions, all property and

interests in property that are in or

hereafter come within the United States

or the possession or control of United

States persons, of: (1) Foreign persons

listed in the Annex to the Order; (2)

foreign persons determined by the

Secretary of State, in consultation with

the Secretary of the Treasury, the

Secretary of the Department of

Homeland Security and the Attorney

General, to have committed, or to pose

a significant risk of committing, acts of

terrorism that threaten the security of

U.S

of United

States persons, of: (1) Foreign persons

listed in the Annex to the Order; (2)

foreign persons determined by the

Secretary of State, in consultation with

the Secretary of the Treasury, the

Secretary of the Department of

Homeland Security and the Attorney

General, to have committed, or to pose

a significant risk of committing, acts of

terrorism that threaten the security of

U.S. nationals or the national security,

foreign policy, or economy of the United

States; (3) persons determined by the

Director of OFAC, in consultation with

the Departments of State, Homeland

Security and Justice, to be owned or

controlled by, or to act for or on behalf

of those persons listed in the Annex to

the Order or those persons determined

to be subject to subsection 1(b), 1(c), or

1(d)(i) of the Order; and (4) except as

provided in section 5 of the Order and

after such consultation, if any, with

foreign authorities as the Secretary of

State, in consultation with the Secretary

VerDate Mar<15>2010

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