# FinCEN Guidance, Guidance (Interpretive Release No. 2004-02) - Unitary Filing of Suspicious Activity and Blocking Reports (Final Rule), 2004-12-23: Guidance (Interpretive Release No. 2004-02) - Unitary Filing of Suspicious Activity and Blocking Reports (Final Rule)

> Federal · Agency guidance · In force

URL: https://www.frixlaw.com/law-library/statutes/FINCEN_GUID_GUIDANCE_INTERPRETIVE_RELEASE_NO_2004_02_UNITARY_FILING

## Section

- **Citation:** FinCEN Guidance, Guidance (Interpretive Release No. 2004-02) - Unitary Filing of Suspicious Activity and Blocking Reports (Final Rule), 2004-12-23
- **Heading:** Guidance (Interpretive Release No. 2004-02) - Unitary Filing of Suspicious Activity and Blocking Reports (Final Rule)
- **Jurisdiction:** Federal
- **Kind:** Agency guidance
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** FinCEN Guidance (alerts, advisories, notices, bulletins, fact sheets) / Guidance (Interpretive Release No. 2004-02) - Unitary Filing of Suspicious Activity and Blocking Reports (Final Rule)

## Text

76847
Federal Register / Vol. 69, No. 246 / Thursday, December 23, 2004 / Rules and Regulations
1 See 31 U.S.C. 5318(g)(1).
2 See 31 CFR 103.17–21. The threshold for most
financial institutions is $5,000; transactions
conducted at points of sale for money services
businesses have a reporting threshold of $2,000. See
31 CFR 103.20.
3 See TD F 90–22.47 (depository institutions); TD
F 22.56 (money services businesses); FinCEN Form
101 (securities and futures industries); FinCEN
Form 102 (casinos and card clubs).
4 31 CFR 501.603.
5 31 CFR 501.603(b)(1)(i).
6 The specific designations are as follows:
Specially designated terrorist; foreign terrorist
organization; specially designated global terrorist;
specially designated narcotics trafficker; specially
designated narcotics trafficker kingpin. See 31 CFR
parts 595, 597, 598 and the Foreign Narcotics
Kingpin Act, 21 U.S.C. 1901–08, 8 U.S.C. 1182.
These categories of designations are subject solely
to blocking requirements.
Dated: December 14, 2004.
Leslye M. Fraser,
Director, Office of Regulations and Policy,
Center for Food Safety and Applied Nutrition.
[FR Doc. 04–28043 Filed 12–22–04; 8:45 am]
BILLING CODE 4160–01–S
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
31 CFR Part 103
Interpretive Release No. 2004–02—
Unitary Filing of Suspicious Activity
and Blocking Reports
AGENCY: Financial Crimes Enforcement
Network (‘‘FinCEN’’), Department of the
Treasury.
ACTION: Final rule; interpretive release
afety and Applied Nutrition.
[FR Doc. 04–28043 Filed 12–22–04; 8:45 am]
BILLING CODE 4160–01–S
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
31 CFR Part 103
Interpretive Release No. 2004–02—
Unitary Filing of Suspicious Activity
and Blocking Reports
AGENCY: Financial Crimes Enforcement
Network (‘‘FinCEN’’), Department of the
Treasury.
ACTION: Final rule; interpretive release.
SUMMARY: This FinCEN interpretive
guidance clarifies that reports filed with
the Department of the Treasury’s Office
of Foreign Assets Control (‘‘OFAC’’) of
blocked transactions with Specially
Designated Global Terrorists, Specially
Designated Terrorists, Foreign Terrorist
Organizations, Specially Designated
Narcotics Trafficker Kingpins, and
Specially Designated Narcotics
Traffickers will be deemed by FinCEN
to fulfill the requirement to file
suspicious activity reports on such
transactions for purposes of FinCEN’s
suspicious activity reporting rules.
However, the filing of a blocking report
with OFAC will not be deemed to
satisfy a financial institution’s
obligation to file a suspicious activity
report if the transactions would be
reportable under FinCEN’s suspicious
activity reporting rules even if there
were no OFAC match. Moreover, to the
extent that the financial institution is in
possession of information not included
on the blocking report filed with OFAC,
a separate suspicious activity report
should be filed with FinCEN including
that information.
DATES: This final rule is effective
December 23, 2004. The DATES section
of the rule published on December 14,
2004, at 69 FR 74439 is corrected to read
as follows:
DATES: Appendix C is added to part
103 effective December 14, 2004;
however, Release 2004–01 is not
effective until June 13, 2005.
FOR FURTHER INFORMATION CONTACT:
Regulatory Policy and Programs
Division, 1–800–949–2732, Financial
Crimes Enforcement Network
ve
December 23, 2004. The DATES section
of the rule published on December 14,
2004, at 69 FR 74439 is corrected to read
as follows:
DATES: Appendix C is added to part
103 effective December 14, 2004;
however, Release 2004–01 is not
effective until June 13, 2005.
FOR FURTHER INFORMATION CONTACT:
Regulatory Policy and Programs
Division, 1–800–949–2732, Financial
Crimes Enforcement Network.
SUPPLEMENTARY INFORMATION: FinCEN is
publishing this interpretation to clarify
that the filing of required blocking
reports with OFAC on transactions
involving an individual or entity
designated as a Specially Designated
Global Terrorist, Specially Designated
Terrorist, Foreign Terrorist
Organization, Specially Designated
Narcotics Trafficker Kingpin, or
Specially Designated Narcotics
Trafficker shall be deemed to satisfy the
requirement, under existing and any
forthcoming suspicious activity
reporting regulations, that financial
institutions file suspicious activity
reports based on the fact of such a
match.
List of Subjects in 31 CFR Part 103
Authority delegations (government
agencies), Banks, Banking, Currency,
Investigations, Reporting and
recordkeeping requirements.
Department of the Treasury
1 CFR Chapter I
Authority and Issuance
I For the reasons set forth in the
preamble, part 103 of title 31 of the Code
of Federal Regulations is amended as
follows:
PART 103—FINANCIAL
RECORDKEEPING AND REPORTING
OF CURRENCY AND FOREIGN
TRANSACTIONS
I 1. The authority citation for part 103
continues to read as follows:
Authority: 12 U.S.C. 1829b and 1951–1959;
31 U.S.C. 5311–5314 and 5316–5332; title III,
sec. 312, 313, 314, 319, 326, 352. Pub. L.
107–56, 115 Stat. 307, 21 U.S.C. 1786(q).
I 2. Part 103 is amended by adding a
new Intrepretive Release at the end of
Appendix C to read as follows:
APPENDIX C TO PART 103—
INTERPRETIVE RULES
*
*
*
*
*
Release No
ion for part 103
continues to read as follows:
Authority: 12 U.S.C. 1829b and 1951–1959;
31 U.S.C. 5311–5314 and 5316–5332; title III,
sec. 312, 313, 314, 319, 326, 352. Pub. L.
107–56, 115 Stat. 307, 21 U.S.C. 1786(q).
I 2. Part 103 is amended by adding a
new Intrepretive Release at the end of
Appendix C to read as follows:
APPENDIX C TO PART 103—
INTERPRETIVE RULES
*
*
*
*
*
Release No. 2004–02
This FinCEN interpretive guidance clarifies
that reports filed with the Department of the
Treasury’s Office of Foreign Assets Control
(‘‘OFAC’’) of blocked transactions with
Specially Designated Global Terrorists,
Specially Designated Terrorists, Foreign
Terrorist Organizations, Specially Designated
Narcotics Trafficker Kingpins, and Specially
Designated Narcotics Traffickers will be
deemed by FinCEN to fulfill the requirement
to file suspicious activity reports on such
transactions for purposes of FinCEN’s
suspicious activity reporting rules. However,
the filing of a blocking report with OFAC will
not be deemed to satisfy a financial
institution’s obligation to file a suspicious
activity report if the transactions would be
reportable under FinCEN’s suspicious
activity reporting rules even if there were no
OFAC match. Moreover, to the extent that the
financial institution is in possession of
information not included on the blocking
report filed with OFAC, a separate suspicious
activity report should be filed with FinCEN
including that information
file a suspicious
activity report if the transactions would be
reportable under FinCEN’s suspicious
activity reporting rules even if there were no
OFAC match. Moreover, to the extent that the
financial institution is in possession of
information not included on the blocking
report filed with OFAC, a separate suspicious
activity report should be filed with FinCEN
including that information.
Background
The Bank Secrecy Act authorizes the
Secretary of the Treasury to require financial
institutions to report ‘‘any suspicious
transaction relevant to a possible violation of
law or regulation.’’ 1 Under this authority,
FinCEN has issued regulations requiring
banks, securities broker-dealers, introducing
brokers, casinos, futures commission
merchants, and money services businesses, to
report suspicious activity that meets a
particular dollar threshold.2 Each rule
includes filing procedures requiring that a
suspicious transaction shall be reported by
completing a suspicious activity report and
filing it with FinCEN in a central location to
be determined by FinCEN. Generally, the
rules provide a financial institution with
thirty days from the date of the initial
detection of suspicious activity to file a
report, with an additional thirty days if the
financial institution is unable to identify a
suspect. Reports are filed on forms developed
for each industry subject to the reporting
requirement.3
OFAC administers and enforces economic
and trade sanctions based on U.S. foreign
policy and national security goals against
targeted foreign countries, terrorists,
international narcotics traffickers, and those
engaged in activities related to the
proliferation of weapons of mass destruction.
OFAC’s Reporting, Procedures and Penalties
Regulations at 31 CFR part 501 require U.S
equirement.3
OFAC administers and enforces economic
and trade sanctions based on U.S. foreign
policy and national security goals against
targeted foreign countries, terrorists,
international narcotics traffickers, and those
engaged in activities related to the
proliferation of weapons of mass destruction.
OFAC’s Reporting, Procedures and Penalties
Regulations at 31 CFR part 501 require U.S.
financial institutions to block and file reports
on accounts, payments, or transfers in which
an OFAC-designated country, entity, or
individual has any interest.4 These reports
must be filed with OFAC within ten business
days of the blocking of the property.5
Prior Guidance
Transactions involving an individual or
entity designated on OFAC’s list of Specially
Designated Nationals and Blocked Persons as
a global terrorist, terrorist, terrorist
organization, narcotics trafficker, or narcotics
kingpin 6 may be in furtherance of a criminal
act, and therefore relevant to a possible
violation of law. Thus, blocking reports
related to such persons also describe
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76848
Federal Register / Vol. 69, No. 246 / Thursday, December 23, 2004 / Rules and Regulations
7 Issue 6 (Nov. 2003).
8 Such a report would be a voluntary report under
the statute and regulations. See 31 U.S.C. 5318(g)(3)
(extending safe harbor protection from civil liability
to voluntary filings).
potentially suspicious activity. In the
November 2003 edition of its ‘‘SAR Activity
Review,’’ 7 FinCEN instructed financial
institutions to file suspicious activity reports
on verified matches of persons designated by
OFAC
ort would be a voluntary report under
the statute and regulations. See 31 U.S.C. 5318(g)(3)
(extending safe harbor protection from civil liability
to voluntary filings).
potentially suspicious activity. In the
November 2003 edition of its ‘‘SAR Activity
Review,’’ 7 FinCEN instructed financial
institutions to file suspicious activity reports
on verified matches of persons designated by
OFAC. While this guidance ensured that the
relevant information would be available to
law enforcement, it also resulted in financial
institutions being required to make two
separate filings with the Department of the
Treasury—one with OFAC pursuant to its
Reporting, Procedures and Penalties
Regulations, and one with FinCEN pursuant
to its suspicious activity reporting rules.
Revised Guidance
FinCEN is hereby revising its prior
guidance to eliminate the need for
duplicative reporting in cases where a
financial institution identifies a verified
match with individuals or entities designated
by OFAC. As of the date of publication of this
interpretation, FinCEN will deem its rules
requiring the filing of suspicious activity
reports to be satisfied by the filing of a
blocking report with OFAC in accordance
with OFAC’s Reporting, Penalties and
Procedures Regulations. OFAC will then
provide the information to FinCEN for
inclusion in the suspicious activity reporting
database where it will be made available to
law enforcement. This construction of the
suspicious activity reporting rules will serve
the public interest by enabling FinCEN to
obtain and provide potentially important
information about terrorists and major drug
traffickers to law enforcement on an
expedited basis without imposing
duplicative reporting burdens on the
regulated industry
ting
database where it will be made available to
law enforcement. This construction of the
suspicious activity reporting rules will serve
the public interest by enabling FinCEN to
obtain and provide potentially important
information about terrorists and major drug
traffickers to law enforcement on an
expedited basis without imposing
duplicative reporting burdens on the
regulated industry.
Accordingly, a financial institution that
files a blocking report with OFAC due to the
involvement in a transaction or account of a
person designated as a Specially Designated
Global Terrorist, a Specially Designated
Terrorist, a Foreign Terrorist Organization, a
Specially Designated Narcotics Trafficker
Kingpin, or a Specially Designated Narcotics
Trafficker, shall be deemed to have
simultaneously filed a suspicious activity
report on the fact of the match with FinCEN,
in satisfaction of the requirements of the
applicable suspicious activity reporting rule.
This interpretation does not affect a financial
institution’s obligation to identify and report
suspicious activity beyond the fact of the
OFAC match. To the extent that the financial
institution is in possession of information not
included on the blocking report filed with
OFAC, a separate suspicious activity report
should be filed with FinCEN including that
information. This interpretation also does not
affect a financial institution’s obligation to
file a suspicious activity report even if it has
filed a blocking report with OFAC, to the
extent that the facts and circumstances
surrounding the OFAC match are
independently suspicious—and are
otherwise required to be reported under
existing FinCEN regulations. In those cases,
the OFAC blocking report would not satisfy
a financial institution’s suspicious activity
report filing obligation
le a suspicious activity report even if it has
filed a blocking report with OFAC, to the
extent that the facts and circumstances
surrounding the OFAC match are
independently suspicious—and are
otherwise required to be reported under
existing FinCEN regulations. In those cases,
the OFAC blocking report would not satisfy
a financial institution’s suspicious activity
report filing obligation.
Further, nothing in this interpretation is
intended to preclude a financial institution
from filing a suspicious activity report to
disclose additional information concerning
the OFAC match,8 nor does it preclude a
financial institution from filing a suspicious
activity report if the financial institution has
reason to believe that terrorism or drug
trafficking is taking place, even though there
is no OFAC match. Finally, this
interpretation does not apply to blocking
reports filed to report transactions and
accounts involving persons owned by, or
who are nationals of, countries subject to
OFAC-administered sanctions programs.
Such transactions should be reported on
suspicious activity reports under the
suspicious activity reporting rules if, and
only, if, the activity itself appears to be
suspicious under the criteria established by
the suspicious activity reporting rules.
William J. Fox,
Director.
[FR Doc. 04–27739 Filed 12–22–04; 8:45 am]
BILLING CODE 4810–02–P
NATIONAL ARCHIVES AND RECORDS
ADMINISTRATION
36 CFR Part 1228
RIN 3095–AB41
Records Management; Unscheduled
Records; Correction
AGENCY: National Archives and Records
Administration (NARA).
ACTION: Final rule; correction.
SUMMARY: NARA published in the
Federal Register of December 15, 2004,
a final rule allowing the transfer of
unscheduled records to records storage
facilities. Inadvertently, a word was
deleted from the preamble, changing the
meaning of a sentence. This document
corrects that deletion.
DATES: This rule is effective January 14,
2005
rds
Administration (NARA).
ACTION: Final rule; correction.
SUMMARY: NARA published in the
Federal Register of December 15, 2004,
a final rule allowing the transfer of
unscheduled records to records storage
facilities. Inadvertently, a word was
deleted from the preamble, changing the
meaning of a sentence. This document
corrects that deletion.
DATES: This rule is effective January 14,
2005.
FOR FURTHER INFORMATION CONTACT:
Cheryl Stadel-Bevans at telephone
number (301) 837–3021 or fax number
(301) 837–0319.
SUPPLEMENTARY INFORMATION: NARA
published a final rule on December 15,
2004, at 69 FR 74976. The second
sentence in the SUPPLEMENTARY
INFORMATION contains an error. This
correction inserts the missing word.
In the final rule published at 69 FR
74976, make the following correction.
On page 74977, in the first column,
insert the word ‘‘not’’ in line 6 so that
the line reads ‘‘* * * Executive Order
12866 and has not been * * *’’.
Dated: December 17, 2004.
Nancy Y. Allard,
Federal Register Liaison Officer.
[FR Doc. 04–28048 Filed 12–22–04; 8:45 am]
BILLING CODE 7515–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[R05–OAR–2004–MI–0002; FRL–7849–1]
Approval and Promulgation of
Implementation Plans: Michigan:
Oxides of Nitrogen
AGENCY: Environmental Protection
Agency (EPA).
ACTION: Direct final rule.
SUMMARY: The EPA is approving a
revision to the plan prepared by
Michigan that will limit the emissions
of oxides of nitrogen (NOX) from large
stationary sources (i.e. power plants,
industrial boilers and cement kilns).
This plan meets all of the requirements
contained in an EPA rule that was
published in the Federal Register on
April 16, 2004. This rule, otherwise
known as the NOX SIP Call Phase I
provides for NOX reductions from
sources in 20 States in the eastern half
of the country
ns
of oxides of nitrogen (NOX) from large
stationary sources (i.e. power plants,
industrial boilers and cement kilns).
This plan meets all of the requirements
contained in an EPA rule that was
published in the Federal Register on
April 16, 2004. This rule, otherwise
known as the NOX SIP Call Phase I
provides for NOX reductions from
sources in 20 States in the eastern half
of the country. The effect of this
approval is to ensure federal
enforceability of the state air program
plan and to maintain consistency
between the state-adopted plan and the
approved State Implementation Plan
(SIP).
DATES: This ‘‘direct final’’ rule is
effective February 22, 2005, unless EPA
receives written adverse comment by
January 24, 2005. If written adverse
comment is received, EPA will publish
a timely withdrawal of the direct final
rule in the Federal Register and inform
the public that the rule will not take
effect.
ADDRESSES: Submit comments,
identified by Regional Material in
EDocket (RME) ID No. R05–OAR–2004–
MI–0002, by one of the following
methods:
Federal eRulemaking Portal: http://
www.regulations.gov. Follow the on-line
instructions for submitting comments.
Agency Web site: http://
docket.epa.gov/rmepub/. Regional
Material in EDocket (RME), EPA’s
electronic public docket and comments
system, is EPA’s preferred method for
receiving comments. Once in the
system, select ‘‘quick search,’’ then key
in the appropriate RME Docket
identification number. Follow the on-
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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/FINCEN_GUID_GUIDANCE_INTERPRETIVE_RELEASE_NO_2004_02_UNITARY_FILING. Check the current official text before relying on it. Not legal advice.