81 FR 76863 - Technical Amendments to Various Bank Secrecy Act Regulations

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network

Federal Register Volume 81, Issue 214 (November 4, 2016)

FinCEN is issuing this final rule to make a number of technical amendments. This final rule updates various sections of the regulations implementing the Bank Secrecy Act (``BSA'') by removing or replacing outdated references to obsolete BSA forms, removing references to outdated recordkeeping storage media, and replacing several other outdated terms and references.

[Federal Register Volume 81, Number 214 (Friday, November 4, 2016)]
[Rules and Regulations]
[Pages 76863-76865]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26557]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Parts 1010, 1020, 1021, 1022, 1023, 1024, 1025, and 1026

RIN 1506-AB32


Technical Amendments to Various Bank Secrecy Act Regulations

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

ACTION: Final rule.

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SUMMARY: FinCEN is issuing this final rule to make a number of 
technical amendments. This final rule updates various sections of the 
regulations implementing the Bank Secrecy Act (``BSA'') by removing or 
replacing outdated references to obsolete BSA forms, removing 
references to outdated recordkeeping storage media, and replacing 
several other outdated terms and references.

DATES: Effective November 4, 2016.

FOR FURTHER INFORMATION CONTACT: FinCEN Resource Center at 1-800-767-
2825 or 1-703-905-3591 (not a toll free number) and select option 3 for 
regulatory questions. Email inquiries can be sent to [email protected].

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

    The BSA, 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. 5311-5314 and 
5316-5332, authorizes the Secretary of the Treasury (``Secretary''), 
among other things, to issue regulations requiring persons to keep 
records and file reports that are determined to have a high degree of 
usefulness in criminal, tax, regulatory, and counter-terrorism matters. 
The regulations implementing the BSA appear at 31 CFR chapter X. The 
Secretary's authority to administer the BSA has been delegated to the 
Director of FinCEN.\1\
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    \1\ Treasury Order 180-01 (Sept. 26, 2002).
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II. Discussion of Changes

    In 2010, FinCEN reorganized the BSA's implementing regulations 
previously appearing in part 103 of title 31 of the Code of Federal 
Regulations by transferring them to a new chapter in title 31--chapter 
X.\2\ When chapter X was published, BSA reporting forms were specific 
to particular segments of the financial industry, and the names of 
those industry-specific forms currently appear in chapter X. FinCEN has 
since revised a number of forms so that they may be used by a range of 
industry segments and no longer carry industry-specific designations. 
The transition from industry-specific forms began by replacing the 
various currency transaction reports previously used by different 
industry segments, with an industry-wide, single BSA form for currency 
transactions--the Bank Secrecy Act Currency Transaction Report. FinCEN 
has also replaced the five industry-specific suspicious activity 
reports with a combined suspicious activity report, the Bank Secrecy 
Act Suspicious Activity Report, which is now used by various financial 
industry segments. This final rule revises the BSA regulations by 
updating them to reflect the names of the new reports.
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    \2\ See 75 FR 5806 (Oct. 26, 2010).
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    A number of recordkeeping requirements in 31 CFR chapter X refer to 
the use of a type of data storage media--microfilm--that is no longer 
in wide use (or in many cases not even available) for copies of records 
required to be kept. This final rule removes those outdated references. 
If, however, a financial institution continues to use microfilm for 
copies, the rule change does not require the financial institution to 
use a different type of media for copies, nor does it require existing 
copies that were made on microfilm to be transferred to newer types of 
media.
    Finally, this final rule replaces several other outdated terms or 
references where appropriate such as the reference to filing reports 
with the Commissioner of Internal Revenue (``IRS''). Effective July 1, 
2011, all BSA reports are electronically filed with FinCEN, not the 
IRS.

III. Administrative Procedure Act and Effective Date

    Under 5 U.S.C. 553(b)(3)(B) of the Administrative Procedure Act 
(``APA''), an agency may, for good cause, find (and incorporate the 
finding and a brief statement of reasons in the rules issued)

[[Page 76864]]

that notice and public comment procedure on a rule is impracticable, 
unnecessary, or contrary to the public interest. Currently, 31 CFR 
chapter X contains references to outdated forms/reports and dated 
terminology that may be confusing to the public. The rule solely 
clarifies those terms and references and makes no substantive change to 
any reporting requirement. For these reasons, the agency has determined 
that publishing a notice of proposed rulemaking and providing 
opportunity for public comment is unnecessary.
    Under 5 U.S.C. 553(d)(3) of the APA, the required publication or 
service of a substantive rule shall be made not less than 30 days 
before its effective date, except, among other things, as provided by 
the agency for good cause found and published with the rule. FinCEN 
finds that there is good cause for shortened notice since the revisions 
made by this final rule are minor, non-substantive, and technical. This 
final rule takes effect November 4, 2016.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA'') does not apply to a 
rulemaking where a general notice of proposed rulemaking is not 
required.\3\ As noted previously, FinCEN has determined that it is 
unnecessary to publish a notice of proposed rulemaking for this final 
rule. Accordingly, the RFA's requirements relating to an initial and 
final regulatory flexibility analysis do not apply.
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    \3\ See 5 U.S.C. 603 and 604.
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V. Executive Order 13563 and 12866

    FinCEN has determined that Executive Orders 13563 and 12866 do not 
apply to this final rulemaking.

VI. Paperwork Reduction Act Notices

    There are no collection of information requirements in this final 
rule.

VII. Unfunded Mandates Act of 1995 Statement

    Section 202 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 
1532 (``Unfunded Mandates Act''), requires that an agency must prepare 
a budgetary impact statement before promulgating any rule likely to 
result in a Federal mandate that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector of $100 million or more in any one year. If a budgetary 
impact statement is required, section 205 of the Unfunded Mandates Act 
also requires an agency to identify and consider a reasonable number of 
regulatory alternatives before promulgating a rule. FinCEN has 
determined that no portion of this final rule will result in 
expenditures by State, local, and tribal governments, or by the private 
sector, of $100 million or more in any one year. Accordingly, this 
final rule is not subject to section 202 of the Unfunded Mandates Act.

List of Subjects in 31 CFR Parts 1010, 1020, 1021, 1022, 1023, 
1024, 1025, and 1026

    Administrative practice and procedure, Banks, banking, Brokers, 
Currency, Foreign banking, Foreign currencies, Gambling, 
Investigations, Penalties, Reporting and recordkeeping requirements, 
Securities, Terrorism.

Authority and Issuance

    For the reasons set forth in the preamble, chapter X of title 31 of 
the Code of Federal Regulations is amended as follows:

PART 1010--GENERAL PROVISIONS

0
1. The authority citation for part 1010 is revised 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. 314, Pub. L. 107-56, 115 Stat. 307; 
sec. 701, Pub. L. 114-74, 129 Stat. 599.


Sec.  1010.306  [Amended]

0
2. Amend Sec.  1010.306 as follows:
0
a. In paragraph (a)(3), remove the words ``the Commissioner of Internal 
Revenue'' and add the word ``FinCEN'' in their place.
0
b. In paragraph (c), remove the words ``the Commissioner of Internal 
Revenue'' and add the word ``FinCEN'' in their place.
0
c. In paragraph (e), in the first sentence, remove the words ``the 
Internal Revenue Service'' and add the words ``BSA E-Filing System'' in 
their place and, in the second sentence, add the words ``or FinCEN'' 
after the words ``U.S. Customs and Border Protection.''


Sec.  1010.410  [Amended]

0
3. Amend Sec.  1010.410 by removing the words ``microfilm or other'' 
from the introductory text.


Sec.  1010.430  [Amended]

0
4. Amend Sec.  1010.430 by removing the words ``microfilm or other'' in 
paragraph (a).


Sec.  1010.715  [Amended]

0
5. Amend Sec.  1010.715 by removing ``1506-0009'' and adding ``1506-
0050'' in its place.


Sec.  1010.940  [Amended]

0
6. Amend Sec.  1010.940 in the introductory text by removing the words 
``microfilming or other.''

PART 1020--RULES FOR BANKS

0
7. The authority citation for part 1020 is revised 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. 314, Pub. L. 107-56, 115 Stat. 307; 
sec. 701, Pub. L. 114-74, 129 Stat. 599.

0
8. Revise the heading for part 1020 to read as set forth above.


Sec.  1020.410  [Amended]

0
9. Amend Sec.  1020.410 as follows:
0
a. In paragraph (a) introductory text by removing the words ``microfilm 
or other.''
0
b. In paragraph (a)(1) by removing the words ``microfilm, other'' each 
place they appear.
0
c. In paragraph (c) introductory text by removing the words ``microfilm 
or other.''

PART 1021--RULES FOR CASINOS AND CARD CLUBS

0
10. The authority citation for part 1021 is revised 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. 314, Pub. L. 107-56, 115 Stat. 307; 
sec. 701, Pub. L. 114-74, 129 Stat. 599.


Sec.  1021.320  [Amended]

0
11. Amend Sec.  1021.320 as follows:
0
a. In paragraph (b)(1) by removing the words ``by Casinos (``SARC'')'' 
and adding the word ``(``SAR'')'' in their place.
0
b. In paragraph (b)(2) by removing the word ``SARC'' each place it 
appears and adding in its place the word ``SAR.''
0
c. In paragraph (b)(3) by removing the word ``SARC'' each place it 
appears and adding in its place the word ``SAR.''
0
d. In paragraph (c) by removing the word ``SARC'' and adding in its 
place the word ``SAR.''
0
e. In paragraph (d) by removing the word ``SARC'' each place it appears 
and adding in its place the word ``SAR.''


Sec.  1021.410  [Amended]

0
12. Amend Sec.  1021.410 in paragraph (b) introductory text by removing 
the words ``microfilm or other.''

PART 1022--RULES FOR MONEY SERVICES BUSINESSES

0
13. The authority citation for part 1022 is revised to read as follows:

    Authority: 12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314 
and 5316-5332; title III,

[[Page 76865]]

sec. 314, Pub. L. 107-56, 115 Stat. 307; sec. 701, Pub. L. 114-74, 
129 Stat. 599.


Sec.  1022.320  [Amended]

0
14. Amend Sec.  1022.320 as follows:
0
a. In paragraph (b)(1) by removing the words ``-MSB (``SAR-MSB'')'' and 
adding the word ``(``SAR'')'' in their place.
0
b. In paragraph (b)(2) by removing the word ``SAR-MSB'' each place it 
appears and adding in its place the word ``SAR.''
0
c. In paragraph (b)(3) by removing the word ``SAR-MSB'' each place it 
appears and adding in its place the word ``SAR.''
0
d. In paragraph (c) by removing the word ``SAR-MSB'' each place it 
appears and adding in its place the word ``SAR.''


 Sec.  1022.380  [Amended]

0
15. Amend Sec.  1022.380(b)(1)(i) by removing the words ``the 
Enterprise Computing Center in Detroit of the Internal Revenue 
Service'' and adding in their place the word ``FinCEN.''

PART 1023--RULES FOR BROKERS OR DEALERS IN SECURITIES

0
16. The authority citation for part 1023 is revised 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. 314, Pub. L. 107-56, 115 Stat. 307; 
sec. 701, Pub. L. 114-74, 129 Stat. 599.


Sec.  1023.320  [Amended]

0
17. Amend Sec.  1023.320 as follows:
0
a. In paragraph (b)(1) by removing the words ``by the Securities and 
Futures Industry (``SAR-SF'')'' and adding the word ``(``SAR'')'' in 
their place.
0
b. In paragraph (b)(2) by removing the word ``SAR-SF'' each place it 
appears and adding in its place the word ``SAR.''
0
c. In paragraph (b)(3) by removing the word ``SAR-SF'' each place it 
appears and adding in its place the word ``SAR.''
0
d. In paragraph (c) introductory text by removing the word ``SAR-SF'' 
and adding in its place the word ``SAR.''
0
e. In paragraph (d) by removing the word ``SAR-SF'' each place it 
appears and adding in its place the word ``SAR.''

PART 1024--RULES FOR MUTUAL FUNDS

0
18. The authority citation for part 1024 is revised 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. 314, Pub. L. 107-56, 115 Stat. 307; 
sec. 701, Pub. L. 114-74, 129 Stat. 599.


Sec.  1024.320  [Amended]

0
19. Amend Sec.  1024.320 as follows:
0
a. In paragraph (b)(1) by removing the words ``by Securities and 
Futures Industries (``SAR-SF'')'' and adding the word ``(``SAR'')'' in 
their place.
0
b. In paragraph (b)(2) by removing the word ``SAR-SF'' each place it 
appears and adding in its place the word ``SAR.''
0
c. In paragraph (b)(3) by removing the word ``SAR-SF'' each place it 
appears and adding in its place the word ``SAR.''
0
d. In paragraph (b)(4) by removing the word ``SAR-SF'' and adding in 
its place the word ``SAR.''
0
e. In paragraph (b)(5) by removing the word ``SAR-SF'' and adding in 
its place the word ``SAR.''
0
f. In paragraph (c) by removing the word ``SAR-SF'' each place it 
appears and adding in its place the word ``SAR.''

PART 1025--RULES FOR INSURANCE COMPANIES

0
20. The authority citation for part 1025 is revised 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. 314, Pub. L. 107-56, 115 Stat. 307; 
sec. 701, Pub. L. 114-74, 129 Stat. 599.


Sec.  1025.320  [Amended]

0
21. Amend Sec.  1025.320 as follows:
0
a. In paragraph (b)(1) by removing the words ``by Insurance Companies 
(SAR-IC)'' and adding the word ``(``SAR'')'' in their place.
0
b. In paragraph (b)(2) by removing the word ``SAR-IC'' each place it 
appears and adding in its place the word ``SAR.''
0
c. In paragraph (b)(3) by removing the word ``SAR-IC'' each place it 
appears and adding in its place the word ``SAR.''
0
d. In paragraph (c) by removing the word ``SAR-IC'' and adding in its 
place the word ``SAR.''
0
e. In paragraph (d) by removing the word ``SAR-IC'' each place it 
appears and adding in its place the word ``SAR.''

PART 1026--RULES FOR FUTURES COMMISSION MERCHANTS AND INTRODUCING 
BROKERS IN COMMODITIES

0
22. The authority citation for part 1026 is revised 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. 314, Pub. L. 107-56, 115 Stat. 307; 
sec. 701, Pub. L. 114-74, 129 Stat. 599.


Sec.  1026.320  [Amended]

0
23. Amend Sec.  1026.320 as follows:
0
a. In paragraph (b)(1) by removing the words ``by Securities and 
Futures Industries (``SAR-SF'')'' and adding the word ``(``SAR'')'' in 
their place.
0
b. In paragraph (b)(2) by removing the word ``SAR-SF'' each place it 
appears and adding in its place the word ``SAR.''
0
c. In paragraph (b)(3) by removing the word ``SAR-SF'' each place it 
appears and adding in its place the word ``SAR.''
0
d. In paragraph (c) introductory text by removing the word ``SAR-SF'' 
and adding in its place the word ``SAR.''
0
e. In paragraph (d) by removing the word ``SAR-SF'' each place it 
appears and adding in its place the word ``SAR.''

    Dated: October 31, 2016.
Jamal El Hindi,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2016-26557 Filed 11-3-16; 8:45 am]
BILLING CODE 4810-02-P