[Federal Register Volume 77, Number 207 (Thursday, October 25, 2012)]
[Rules and Regulations]
[Pages 65097-65098]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-26132]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 77, No. 207 / Thursday, October 25, 2012 /
Rules and Regulations
[[Page 65097]]
FEDERAL RESERVE SYSTEM
12 CFR Part 219
[Regulation S; Docket No. R-1444]
RIN 7100 AD 91
Reimbursement to Financial Institutions for Providing Financial
Records; Recordkeeping Requirements for Certain Financial Records
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule; technical amendment.
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SUMMARY: The Board of Governors (Board) is amending its regulation
which governs recordkeeping and reporting requirements for funds
transfers and transmittals of funds, to conform the citations and
references to organizational changes adopted by the Director of the
Financial Crimes Enforcement Network (FinCEN) in 2010.
DATES: The final rule will become effective November 26, 2012.
FOR FURTHER INFORMATION CONTACT: Dena L. Milligan, Attorney, (202) 452-
3900, Legal Division. For the hearing impaired only, Telecommunication
Device for the Deaf (TDD), (202) 263-4869.
SUPPLEMENTARY INFORMATION: The statutory framework generally referred
to as the Bank Secrecy Act (BSA) authorizes the Secretary of the
Treasury to require financial institutions to keep records and file
reports that the Secretary determines have a high degree of usefulness
in criminal, tax, or regulatory investigations or proceedings.\1\ The
Annunzio-Wylie Anti-Money Laundering Act of 1992 (Pub. L. 102-550)
(Annunzio-Wylie) amended the BSA to authorize the Treasury and the
Board jointly to prescribe regulations to require banks and nonbank
financial institutions to maintain records regarding domestic and
international funds transfers and transmittals of funds if the
Secretary and the Board determine that the maintenance of records has a
high degree of usefulness in the criminal, tax, or regulatory
investigations or proceedings.\2\
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\1\ The BSA is codified at 12 U.S.C. 1829b and 1951-1959, and 31
U.S.C. 5311-5329.
\2\ 12 U.S.C. 1829b(b).
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On January 3, 1995, the Secretary and the Board jointly issued a
rule that requires banks and nonbank financial institutions to collect
and retain certain information on funds transfers and transmittals of
funds (``recordkeeping rule'').\3\ To minimize potential confusion by
affected entities regarding the scope of the joint recordkeeping rule
and the rule's interaction with other anti-money laundering
regulations, the substantive requirements of the recordkeeping rule
were codified in 31 CFR part 103 with other BSA regulations. At the
same time, the Board separately adopted the recordkeeping rule's
requirements by adding existing subpart B to Regulation S. Subpart B
incorporates the recordkeeping rule's requirements by cross-referencing
the jointly prescribed requirements then located in 31 CFR part 103,
rather than restating the requirements in full.\4\
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\3\ 60 FR 220 (Jan. 3, 1995).
\4\ 60 FR 232 (Jan. 3, 1995).
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In October 2010, FinCEN moved the BSA regulations, including those
implementing the recordkeeping rule, from 31 CFR part 103 to new
Chapter X of Title 31 of the CFR.\5\ Within the new Chapter X, FinCEN
reorganized the BSA regulations by financial industry to make it easier
to find regulatory requirements. With respect to the cross-references
in Regulation S, 31 CFR 103.11 was redesignated as 31 CFR 1010.100, 31
CFR 103.33(e) was redesignated as 31 CFR 1020.410(a), and 31 CFR
103.33(f) was redesignated as 31 CFR 1010.410(e).\6\
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\5\ The Secretary delegated to the Director of the Financial
Crimes Enforcement Network (FinCEN), the authority to implement,
administer, and enforce compliance with the BSA and associated
regulations. Treasury Order 180-01 (Sept. 26, 2002).
\6\ 75 FR 65806 (Oct. 26, 2010).
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The Board is amending the cross-references in subpart B of its
Regulation S to conform the references to the reorganized BSA
regulations. These amendments do not have any effect on the substantive
requirements imposed by Regulation S.
Administrative Procedure Act
In accordance with section 553(b) the Administrative Procedures Act
(APA) (5 U.S.C. 553(b)), the Board finds, for good cause, that
providing an opportunity for public comment is unnecessary. The
amendments are solely technical amendments that revise citations to
conform to a previous reorganization of BSA regulations in the CFR.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3506; 5 CFR part 1320 Appendix A.1), the Board has reviewed the final
rule under authority delegated to the Board by the Office of Management
and Budget. The technical amendments to Regulation S will revise the
cross-references to conform to a previous reorganization of BSA
regulations in the CFR. The amendments do not change any substantive
requirements of the regulation or currently approved information
collections. Therefore, no additional paperwork burden will be imposed
as a result of this rulemaking.
List of Subjects in 12 CFR Part 219
Banks, Banking, Currency, Reporting and recordkeeping requirements,
Foreign banking.
Authority and Issuance
For the reasons set forth in the preamble, the Board is amending 12
CFR part 219 as follows:
PART 219--REIMBURSEMENT FOR PROVIDING FINANCIAL RECORDS;
RECORDKEEPING REQUIREMENTS FOR CERTAIN FINANCIAL RECORDS
(REGULATION S)
0
1. The authority citation for part 219 continues to read as follows:
Authority: 12 U.S.C. 3415.
Sec. 219.21 [Amended]
0
2. Section 219.21 is amended as follows:
0
a. Remove ``31 CFR 103.11 and 103.33(e) and (f)'' and add in its place
``31 CFR 1010.100, 1010.410(e), and 1020.410(a)''; and
0
b. Remove ``31 CFR 103.33(e) or (f)'' and add in its place ``31 CFR
1010.410(e) or 1020.410(a).''
[[Page 65098]]
Sec. 219.22 [Amended]
0
3. Section 219.22 is amended by removing ``31 CFR 103.11'' and adding
in its place ``31 CFR 1010.100.''
Sec. 219.23 [Amended]
0
4. Section 219.23 is amended as follows:
0
a. In paragraph (a), remove ``31 CFR 103.33(e)'' and add in its place
``31 CFR 1020.410(a)'' wherever it appears;
0
b. In paragraph (b), remove ``31 CFR 103.33(f)'' and add in its place
``31 CFR 1010.410(e)'' wherever it appears.
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority, October 18, 2012.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2012-26132 Filed 10-24-12; 8:45 am]
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