80 FR 9506 - Proposed Information Collection; Comment Request; Renewal of Suspicious Activity Reporting Requirements by Brokers or Dealers in Securities and Futures Commission Merchants and Introducing Brokers in Commodities.

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network

Federal Register Volume 80, Issue 35 (February 23, 2015)

Page Range		9506-9507
FR Document		2015-03584

FinCEN invites comment on the renewal of an information collection requirement for the recordkeeping and reporting of suspicious activities by brokers or dealers in securities and futures commission merchants (FCMs) and introducing brokers in commodities (IBs).\1\ The Bank Secrecy Act Suspicious Activity Report, (``BSAR'') \2\ will be used by these entities to report suspicious activity to FinCEN. This request for comments also covers 31 CFR 1023.320, relating to reports by brokers or dealers in securities of suspicious transactions, and 31 CFR 1026.320, reports by futures commission merchants and introducing brokers in commodities of suspicious transactions. This request for comments is being made pursuant to the Paperwork Reduction Act (``PRA'') of 1995, Public Law 104-13, 44 U.S.C. 3506(c)(2)(A). ---------------------------------------------------------------------------

Federal Register, Volume 80 Issue 35 (Monday, February 23, 2015)

[Federal Register Volume 80, Number 35 (Monday, February 23, 2015)]
[Notices]
[Pages 9506-9507]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03584]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Proposed Information Collection; Comment Request; Renewal of 
Suspicious Activity Reporting Requirements by Brokers or Dealers in 
Securities and Futures Commission Merchants and Introducing Brokers in 
Commodities.

AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: FinCEN invites comment on the renewal of an information 
collection requirement for the recordkeeping and reporting of 
suspicious activities by brokers or dealers in securities and futures 
commission merchants (FCMs) and introducing brokers in commodities 
(IBs).\1\ The Bank Secrecy Act Suspicious Activity Report, (``BSAR'') 
\2\ will be used by these entities to report suspicious activity to 
FinCEN. This request for comments also covers 31 CFR 1023.320, relating 
to reports by brokers or dealers in securities of suspicious 
transactions, and 31 CFR 1026.320, reports by futures commission 
merchants and introducing brokers in commodities of suspicious 
transactions. This request for comments is being made pursuant to the 
Paperwork Reduction Act (``PRA'') of 1995, Public Law 104-13, 44 U.S.C. 
3506(c)(2)(A).
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    \1\ The federal functional regulator for the securities industry 
is the U.S. Securities and Exchange Commission (``SEC'') and, for 
the futures industry, it is the Commodity Futures Trading Commission 
(``CFTC'').
    \2\ The BSAR was approved by the Office of Management and Budget 
(``OMB'') under control number 1506-0065. The BSAR is a single 
report that replaced previous individual SAR forms for depository 
institutions, casinos, money services businesses, securities brokers 
or dealers, mutual funds, futures commission merchants, introducing 
brokers in commodities, and insurance companies,

DATES: Written comments are welcome and must be received on or before 
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April 24, 2015.

ADDRESSES: Written comments should be submitted to: Policy Division, 
Financial Crimes Enforcement Network, Department of the Treasury, P.O. 
Box 39, Vienna, Virginia 22183, ``Attention: PRA Comments--SAR 
Requirements-Securities and Futures Industries.'' Comments also may be 
submitted by electronic mail to the following Internet address: 
[email protected], again with a caption, in the body of the text, 
``Attention: PRA Comments--SAR Requirements-Securities and Futures 
Industry.''
    Inspection of comments. Comments 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).

FOR FURTHER INFORMATION CONTACT: The FinCEN Resource Center at 800-767-
2825 or email [email protected].

SUPPLEMENTARY INFORMATION: The Bank Secrecy Act (``BSA''), Titles I and 
II of Public Law 91-508, as amended, codified at 12 U.S.C. 1829(b), 12 
U.S.C. 1951-1959, and 31 U.S.C. 5311-5332, authorizes the Secretary of 
the Treasury, among other things, to require financial institutions to 
keep records and 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 and compliance procedures.\3\
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    \3\ 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, Public Law 107-56.
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    Regulations implementing Title II of the BSA appear at 31 CFR 
Chapter X. The Secretary of the Treasury was granted authority in 1992, 
with the enactment of 31 U.S.C. 5318(g), to require financial 
institutions to report suspicious transactions. The authority of the 
Secretary of the Treasury to administer the BSA has been delegated to 
the Director of FinCEN. The final Broker-Dealer SAR rule can be found 
at 31 CFR 1023.320. The final FCM-IB SAR rule can be found at 31 CFR 
1026.320.
    The information collected is required to be provided pursuant to 31 
U.S.C. 5318(g), 31 CFR 1023.320 and 31 CFR 1026.320. This information 
will be made available, in accordance with strict safeguards, to 
appropriate criminal law enforcement and regulatory personnel, and to 
the registered securities and futures associations and national 
exchanges (so-called self-

[[Page 9507]]

regulatory organizations) for use in official performance of their 
duties, for regulatory purposes, and in investigations and proceedings 
involving domestic and international money laundering, terrorist 
financing, tax violations, fraud, and other financial crimes.
    Broker-dealers, futures commission merchants, and introducing 
brokers in commodities required to report suspicious transactions, or 
reporting such transactions voluntarily, will be subject to the 
protection from liability contained in 31 U.S.C. 5318(g)(3) and to the 
prohibition contained in 31 U.S.C. 5318(g)(2) against notifying any 
person involved in the transaction that a suspicious activity report 
has been filed.
    Title: Suspicious Activity Reporting by Brokers or Dealers in 
Securities and Futures Commission Merchants and Introducing Brokers in 
Commodities (31 CFR 1023.320, and 31 CFR 1026.320).
    OMB Number: 1506-0019.
    Abstract: This notice renews the SAR reporting and recordkeeping 
requirements for the above mentioned entities. Additionally, this 
notice updates the title of the information collection under this OMB 
control number to specifically define the entities addressed under this 
number.
    Form Number: FinCEN Form 111 (BSAR).\4\
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    \4\ See footnote 2.
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    Type of Review: Renewal and update of a currently approved 
information collection.
    Affected public: Businesses or other for-profit institutions.
    Frequency: As required.
    Estimated Reporting and Recordkeeping Burden: 1 hour.\5\
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    \5\ The reporting and recordkeeping burden of the regulations 
(31 CFR 1023.320 and 1026.320) is reflected in the burden for the 
BSAR as approved under 1506-0065. This listed burden is assigned to 
maintain control number 1506-0019 active as a reporting requirement 
for 31 CFR 1023.320 and 1026.320.
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    Estimated Number of Respondents: 8,300.
    Estimated Total Annual Responses: 8,300.
    Estimated Total Annual Reporting and Recordkeeping Burden: 8,300 
hours.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid OMB control number. Records required to be 
retained under the BSA must be retained for five years.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for OMB approval. All 
comments will become a matter of public record. Comments are invited 
on: (a) Whether the collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information shall have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; (d) ways to minimize the burden of the collection of 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology; and (e) 
estimates of capital or start-up costs and costs of operation, 
maintenance and purchase of services to provide information.

    Dated: February 13, 2015.
Jennifer Shasky Calvery,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2015-03584 Filed 2-20-15; 8:45 am]
BILLING CODE 4810-02P-P

9506 Federal Register / Vol. 80, No. 35 / Monday, February 23, 2015 / Notices

program must be maintained for five technology; and (e) estimates of capital Department of the Treasury, P.O. Box
years. or start-up costs and costs of operation, 39, Vienna, Virginia 22183, ‘‘Attention:
Current Action: Renewal without maintenance and purchase of services to PRA Comments—SAR Requirements-
change to the existing regulations. provide information. Securities and Futures Industries.’’
Affected Public: Businesses and other Dated: February 13, 2015. Comments also may be submitted by
for-profit institutions. electronic mail to the following Internet
Jennifer Shasky Calvery,
Burden: Estimated Number of address: regcomments@fincen.gov, again
Respondents: 327,206. Director, Financial Crimes Enforcement
with a caption, in the body of the text,
Network.
31 CFR 1022.210 = 324,100. ‘‘Attention: PRA Comments—SAR
[FR Doc. 2015–03586 Filed 2–20–15; 8:45 am]
31 CFR 1024.210 = 3,000. Requirements-Securities and Futures
BILLING CODE 4810–02–P
31 CFR 1028.210 = 6. Industry.’’
Estimated Number of Responses: Inspection of comments. Comments
2,838,406. may be inspected, between 10 a.m. and
DEPARTMENT OF THE TREASURY 4 p.m., in the FinCEN reading room in
31 CFR 1022.210 = 2,835,400.
Vienna, VA. Persons wishing to inspect
31 CFR 1024.210 = 3,000. Financial Crimes Enforcement Network
31 CFR 1028.210 = 6. the comments submitted must request
Proposed Information Collection; an appointment with the Disclosure
Estimated at one hour per respondent. Comment Request; Renewal of Officer by telephoning (703) 905–5034
Suspicious Activity Reporting (not a toll free call).
31 CFR 1022.210 = 252,100.4
Requirements by Brokers or Dealers in FOR FURTHER INFORMATION CONTACT: The
31 CFR 1024.210 = 3,000.
31 CFR 1028.210 = 6. Securities and Futures Commission FinCEN Resource Center at 800–767–
Merchants and Introducing Brokers in 2825 or email frc@fincen.gov.
Estimated Number of Hours: 255,106.
Commodities. SUPPLEMENTARY INFORMATION: The Bank
Estimated at two minutes per prepaid
card issued. Secrecy Act (‘‘BSA’’), Titles I and II of
AGENCY: Financial Crimes Enforcement Public Law 91–508, as amended,
31 CFR 1022.210 = 86,110.5 Network (‘‘FinCEN’’), Treasury. codified at 12 U.S.C. 1829(b), 12 U.S.C.
Estimated Total Number of hours: ACTION: Notice and request for 1951–1959, and 31 U.S.C. 5311–5332,
341,216 comments. authorizes the Secretary of the Treasury,
An agency may not conduct or among other things, to require financial
sponsor, and a person is not required to SUMMARY: FinCEN invites comment on
the renewal of an information collection institutions to keep records and file
respond to, a collection of information reports that are determined to have a
unless it displays a valid control requirement for the recordkeeping and
reporting of suspicious activities by high degree of usefulness in criminal,
number assigned by OMB. Records tax, and regulatory matters, or in the
required to be retained under the BSA brokers or dealers in securities and
futures commission merchants (FCMs) conduct of intelligence or counter-
must be retained for five years. intelligence activities to protect against
Generally, information collected and introducing brokers in commodities
international terrorism, and to
pursuant to the BSA is confidential but (IBs).1 The Bank Secrecy Act Suspicious
implement counter-money laundering
may be shared as provided by law with Activity Report, (‘‘BSAR’’) 2 will be used
programs and compliance procedures.3
regulatory and law enforcement by these entities to report suspicious Regulations implementing Title II of
authorities. activity to FinCEN. This request for the BSA appear at 31 CFR Chapter X.
comments also covers 31 CFR 1023.320, The Secretary of the Treasury was
Request for Comments relating to reports by brokers or dealers granted authority in 1992, with the
Comments submitted in response to in securities of suspicious transactions, enactment of 31 U.S.C. 5318(g), to
this notice will be summarized and/or and 31 CFR 1026.320, reports by futures require financial institutions to report
included in the request for OMB commission merchants and introducing suspicious transactions. The authority
approval. All comments will become a brokers in commodities of suspicious of the Secretary of the Treasury to
matter of public record. Comments are transactions. This request for comments administer the BSA has been delegated
invited on: (a) Whether the collection of is being made pursuant to the to the Director of FinCEN. The final
information is necessary for the proper Paperwork Reduction Act (‘‘PRA’’) of Broker-Dealer SAR rule can be found at
performance of the functions of the 1995, Public Law 104–13, 44 U.S.C. 31 CFR 1023.320. The final FCM–IB
agency, including whether the 3506(c)(2)(A). SAR rule can be found at 31 CFR
information shall have practical utility; DATES: Written comments are welcome 1026.320.
(b) the accuracy of the agency’s estimate and must be received on or before April The information collected is required
of the burden of the collection of 24, 2015. to be provided pursuant to 31 U.S.C.
information; (c) ways to enhance the ADDRESSES: Written comments should 5318(g), 31 CFR 1023.320 and 31 CFR
quality, utility, and clarity of the be submitted to: Policy Division, 1026.320. This information will be
information to be collected; (d) ways to Financial Crimes Enforcement Network, made available, in accordance with
minimize the burden of the collection of strict safeguards, to appropriate criminal
information on respondents, including 1 The federal functional regulator for the law enforcement and regulatory
through the use of automated collection securities industry is the U.S. Securities and personnel, and to the registered
Exchange Commission (‘‘SEC’’) and, for the futures
techniques or other forms of information industry, it is the Commodity Futures Trading
securities and futures associations and
national exchanges (so-called self-
Rmajette on DSK2VPTVN1PROD with NOTICES

Commission (‘‘CFTC’’).
4 FinCEN estimates that it will take each MSB that 2 The BSAR was approved by the Office of
is not a prepaid provider one hour to respond to Management and Budget (‘‘OMB’’) under control 3 Language expanding the scope of the BSA to
this information collection, for a total of 252,100 number 1506–0065. The BSAR is a single report intelligence or counter-intelligence activities to
hours. FinCEN estimates that it will take each MSB that replaced previous individual SAR forms for protect against international terrorism was added by
that is a prepaid provider two minutes per prepaid depository institutions, casinos, money services Section 358 of the Uniting and Strengthening
card issued, for a total of 86,100 hours. Combined, businesses, securities brokers or dealers, mutual America by Providing Appropriate Tools Required
the estimated hourly burden for MSBs is 338,210. funds, futures commission merchants, introducing to Intercept and Obstruct Terrorism Act of 2001,
5 Ibid. brokers in commodities, and insurance companies, Public Law 107–56.

VerDate Sep<11>2014 14:19 Feb 20, 2015 Jkt 235001 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 E:\FR\FM\23FEN1.SGM 23FEN1

$Federal Register / Vol. 80, No. 35 / Monday, February 23, 2015 / Notices 9507 regulatory organizations) for use in Form Number: FinCEN Form 111 Request for Comments: Comments official performance of their duties, for (BSAR).4 submitted in response to this notice will regulatory purposes, and in Type of Review: Renewal and update be summarized and/or included in the investigations and proceedings of a currently approved information request for OMB approval. All involving domestic and international collection. comments will become a matter of money laundering, terrorist financing, Affected public: Businesses or other public record. Comments are invited on: tax violations, fraud, and other financial for-profit institutions. (a) Whether the collection of crimes. Frequency: As required. information is necessary for the proper Broker-dealers, futures commission Estimated Reporting and performance of the functions of the merchants, and introducing brokers in Recordkeeping Burden: 1 hour.5 agency, including whether the commodities required to report suspicious transactions, or reporting Estimated Number of Respondents: information shall have practical utility; such transactions voluntarily, will be 8,300. (b) the accuracy of the agency’s estimate subject to the protection from liability Estimated Total Annual Responses: of the burden of the collection of contained in 31 U.S.C. 5318(g)(3) and to 8,300. information; (c) ways to enhance the the prohibition contained in 31 U.S.C. Estimated Total Annual Reporting quality, utility, and clarity of the 5318(g)(2) against notifying any person and Recordkeeping Burden: 8,300 information to be collected; (d) ways to involved in the transaction that a hours. minimize the burden of the collection of suspicious activity report has been filed. An agency may not conduct or information on respondents, including Title: Suspicious Activity Reporting sponsor, and a person is not required to through the use of automated collection by Brokers or Dealers in Securities and respond to, a collection of information techniques or other forms of information Futures Commission Merchants and unless the collection of information technology; and (e) estimates of capital Introducing Brokers in Commodities (31 displays a valid OMB control number. or start-up costs and costs of operation, CFR 1023.320, and 31 CFR 1026.320). Records required to be retained under maintenance and purchase of services to OMB Number: 1506–0019. the BSA must be retained for five years. provide information. Abstract: This notice renews the SAR reporting and recordkeeping 4 See Dated: February 13, 2015. footnote 2. requirements for the above mentioned 5 The reporting and recordkeeping burden of the Jennifer Shasky Calvery, entities. Additionally, this notice regulations (31 CFR 1023.320 and 1026.320) is Director, Financial Crimes Enforcement updates the title of the information reflected in the burden for the BSAR as approved Network. under 1506–0065. This listed burden is assigned to collection under this OMB control maintain control number 1506–0019 active as a [FR Doc. 2015–03584 Filed 2–20–15; 8:45 am] number to specifically define the reporting requirement for 31 CFR 1023.320 and BILLING CODE 4810–02P–P entities addressed under this number. 1026.320. Rmajette on DSK2VPTVN1PROD with NOTICES VerDate Sep<11>2014 14:19 Feb 20, 2015 Jkt 235001 PO 00000 Frm 00080 Fmt 4703 Sfmt 9990 E:\FR\FM\23FEN1.SGM 23FEN1$

Document Created: 2015-12-18 13:28:51
Document Modified: 2015-12-18 13:28:51

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice and request for comments.
Dates		Written comments are welcome and must be received on or before
Contact		The FinCEN Resource Center at 800-767- 2825 or email [email protected]
FR Citation		80 FR 9506

80 FR 9506 - Proposed Information Collection; Comment Request; Renewal of Suspicious Activity Reporting Requirements by Brokers or Dealers in Securities and Futures Commission Merchants and Introducing Brokers in Commodities.

DEPARTMENT OF THE TREASURYFinancial Crimes Enforcement Network

Federal Register Volume 80, Issue 35 (February 23, 2015)

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network