[Federal Register Volume 77, Number 3 (Thursday, January 5, 2012)]
[Notices]
[Pages 552-553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-33855]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Proposed Collection; Comment Request; Renewal of Suspicious
Activity Reporting by the Securities and Futures Industry
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 activity activities by the Securities and Futures
Industry,\1\ Office of Management and Budget Control Number 1506-0019.
The report, (BSA-SAR) \2\ will be used by the securities and futures
industry to report suspicious activity to the Department of the
Treasury. This request for comments also covers 31 CFR 1026.320 and 31
CFR 1023.320. This request for comments is being made pursuant to the
Paperwork Reduction Act of 1995, Public Law 104-13, 44 U.S.C.
3506(c)(2)(A).
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\1\ The securities and futures industry are those entities
regulated by the Security and Exchange Commission (SEC) and the
Commodity Futures Trading Commission (CFTC) as regulated under 31
CFR Chapter X.
\2\ The BSA-SAR was approved by OMB under control number 1506-
0065. This single report replaces the SAR-DI, C, MSB and SF. The
current SAR-SF, as posted at www.fincen.gov/forms, may be used
through March 2013.
DATES: Written comments are welcome and must be received on or before
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March 5, 2012.
ADDRESSES: Written comments should be submitted to: Regulatory Policy
and Programs Division, Financial Crimes Enforcement Network, Department
of the Treasury, P.O. Box 39, Vienna, Virginia 22183, Attention: PRA
Comments--SAR-Securities and Futures Industry. 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-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 Regulatory Helpline at
(800) 949-2732, select option 3.
SUPPLEMENTARY INFORMATION:
Title: Suspicious Activity Reporting by the Securities and Futures
Industry, 31 CFR 1026.320, and 31 CFR 1023.320.
OMB Number: 1506-0019.
Form Number: FinCEN Form 111 (BSA-SAR) \3\.
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\3\ See footnote 2.
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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, inter alia, 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.\4\ Regulations implementing Title II of the Bank Secrecy
Act appear at 31 CFR Chapter X. The authority of the Secretary to
administer the Bank Secrecy Act has been delegated to the Director of
FinCEN.
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\4\ Language expanding the scope of the Bank Secrecy Act 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.
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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. On July 1, 2002, FinCEN issued a
final rule requiring
[[Page 553]]
brokers or dealers in securities (``broker-dealers'') to report
suspicious transactions (``Broker-Dealer SAR rule''), (67 FR 44048).
The final Broker-Dealer SAR rule can also be found at 31 CFR 1023.320.
On August 5, 2002, FinCEN issued a final rule requiring futures
commission merchants and introducing brokers in commodities to report
suspicious transactions (``FCM SAR rule''), (67 FR 50751). The final
FCM SAR rule can also 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 1026.320 and 31 CFR 1023.320. This information
will be made available, in accordance with strict safeguards, to
appropriate criminal law enforcement and regulatory personnel, and to
the registered securities associations and national securities
exchanges (so-called self-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.
Type of Review: Renewal of a currently approved information
collection.
Affected public: Business 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 1026.320 and 1023.320) is reflected in the burden for the
BSA-SAR as approved under 1506-0065. This listed burden is assigned
to maintain control number 1506-0019 active as a reporting
requirement.
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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 Bank Secrecy Act 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: December 29, 2011.
James H. Freis, Jr.,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2011-33855 Filed 1-4-12; 8:45 am]
BILLING CODE 4810-02P-P