[Federal Register Volume 77, Number 240 (Thursday, December 13, 2012)]
[Notices]
[Pages 74277-74278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30121]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Proposed Collection; Comment Request; Renewal Without Change of
the Requirement for Information Sharing Between Government Agencies and
Financial Institutions
AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.
ACTION: Notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury, as part of its continuing
effort to reduce paperwork and respondent burden, invites the general
public and other Federal agencies to take this opportunity to comment
on proposed and/or continuing information collections, as required by
the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C.
3506(c)(2)(A)). Currently, FinCEN is soliciting comments concerning the
renewal without change of the ``Information sharing between government
agencies and financial institutions'' under 31 CFR 1010.520, generally
referred to as the 314(a) program.
DATES: Written comments are welcome and must be received on or before
February 11, 2013.
ADDRESSES: Direct all written comments to the Regulatory Policy and
Programs Division, Financial Crimes Enforcement Network, Department of
the Treasury, P.O. Box 39, Vienna, Virginia 22183. Attention: PRA
Comments--314(a) program. Comments also may be submitted by electronic
mail to the following Internet address: [email protected] with the
caption in the body of the text, ``Attention: PRA Comments-- 314(a)
program.''
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 and select Option 3.
SUPPLEMENTARY INFORMATION:
I. Background
A. Statutory Provisions
On October 26, 2001, the President signed into law the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (``USA PATRIOT ACT'' or
``Act''), Public Law 107-56. Title III of the Act amends the anti-money
laundering provisions of the Bank Secrecy Act (``BSA''), codified at 12
U.S.C. 1829b and 1951-1959 and 31 U.S.C. 5311-5314 and 5316-5332, to
promote the prevention, detection, and prosecution of international
money laundering and the financing of terrorism. Regulations
implementing the BSA appear at 31 CFR Chapter X. The authority of the
Secretary of the Treasury to administer the BSA has been delegated to
the Director of FinCEN.
Of the Act's many goals, the facilitation of information sharing
among governmental entities and financial institutions for the purpose
of combating terrorism and money laundering is of paramount importance.
As with many other provisions of the Act, Congress has charged the
U.S. Department of the Treasury with developing regulations to
implement these information-sharing provisions.
Subsection 314(a) of the Act states in part that:
[t]he Secretary shall * * * adopt regulations to encourage further
cooperation among financial institutions, their regulatory
authorities, and law enforcement authorities, with the specific
purpose of encouraging regulatory authorities and law enforcement
authorities to share with financial institutions information
regarding individuals, entities, and organizations engaged in, or
reasonably suspected based on credible evidence of engaging in,
terrorist acts or money laundering activities.\1\
---------------------------------------------------------------------------
\1\ Pub. L. 107-56, Title III, Sec. 314, Oct. 26, 2001, 115
Stat. 307, as amended by Public Law 108-458, Title VI, Sec.
6202(f), Dec. 17, 2004, 118 Stat 3745.
---------------------------------------------------------------------------
B. Overview of the Current Regulatory Provisions Regarding the 314(a)
Program
On September 26, 2002, FinCEN published a final rule implementing
the authority contained in section 314(a) of the Act.\2\ That rule
(``the 314(a) rule'') required U.S. financial institutions, upon
FinCEN's request, to search their records to determine whether they
have maintained an account or conducted a transaction with a person
that a Federal law enforcement agency has certified is suspected, based
on credible evidence, of engaging in terrorist activity or money
laundering.\3\ The rule was expanded on February 10, 2010 to enable
certain entities other than Federal law enforcement agencies to benefit
from 314(a) requests to industry. As amended, the rule now also enables
certain foreign law enforcement agencies, state and local law
enforcement agencies, as well as FinCEN, on its own behalf and on
behalf of appropriate components of the Department of the Treasury, to
initiate 314(a) queries.\4\ Before processing a request, FinCEN
requires the requesting agency to certify that, in the case of
[[Page 74278]]
money laundering, the matter is significant, and that the requesting
agency has been unable to locate the information sought through
traditional methods of investigation and analysis before attempting to
use the 314(a) program.
---------------------------------------------------------------------------
\2\ Special Information Sharing Procedures to Deter Money
Laundering and Terrorist Activity, 67 FR 60,579 (Sept. 26, 2002).
\3\ 31 CFR 1010.520.
\4\ Expansion of Special Information Sharing Procedures To Deter
Money Laundering and Terrorist Activity, 75 FR 6560 (Feb. 10, 2010).
---------------------------------------------------------------------------
Since its inception, the 314(a) program has yielded significant
investigative benefits for law enforcement users in terrorist financing
and/or significant money laundering cases. Feedback from the requesters
and illustrations from sample case studies consistently demonstrate how
useful the program is in enhancing the scope and expanding the universe
of investigations. In view of the proven success of the 314(a) program,
FinCEN seeks to renew without change the 314(a) program.
II. Paperwork Reduction Act (``PRA''): \5\
---------------------------------------------------------------------------
\5\ The Paperwork Reduction Act does not apply to the
requirement in section 1010.520(b)(2) concerning reports by
financial institutions in response to a request from FinCEN on
behalf of a Federal law enforcement agency. See 5 CFR Sec.
1320.4(a)(2). Therefore, this renewal applies only to the use of the
314(a) program with respect to queries initiated by non-federal law
enforcement entities.
---------------------------------------------------------------------------
Title: Information sharing between government agencies and
financial institutions.
OMB Number: 1506-0049.
Form Number: Not Applicable. Abstract: 31 CFR Chapter X,
Information sharing between government agencies and financial
institutions (31 CFR 1010.520) details the requirements of section
314(a) of the USA PATRIOT Act. Each financial institution (as defined
in 31 U.S.C. 5312(a)(2) or (c)(1)) should refer to its Chapter X part
for any additional special information sharing procedures.
Type of Review: Extension without change of a currently approved
collection.
Affected Public: Businesses or other for-profit and non-profit
organizations, and the Federal, state, and local governments.
Frequency: As required.
Estimated Number of Respondents: 20,134.\6\
---------------------------------------------------------------------------
\6\ On an annual basis, there are approximately 20,134 covered
financial institutions, consisting of commercial banks, savings
associations, credit unions, securities broker-dealers, future
commission merchants, and certain trust companies, life insurance
companies, mutual funds and money services businesses.
---------------------------------------------------------------------------
Estimated Time per Respondent: 54 hours annually.\7\
---------------------------------------------------------------------------
\7\ Estimated cases/subjects per annum subject to the Paperwork
Reduction Act include: 10 from FinCEN, 50 from state/local law
enforcement, and 30 from European Union countries approved by
treaty, for a total of 90 request per annum, and each request
generally contains 9 subjects (including aliases). Each subject
requires 4 minutes to research, resulting in (90 x 9 x 4 / 60) = 54
hours per year.
---------------------------------------------------------------------------
Estimated Total Annual Burden Hours: 1,087,236.\8\
---------------------------------------------------------------------------
\8\ Burden computation is as follows: 54 hours per year per
respondent times 20,134 respondents (54 x 20,134) = 1,087,236 hours.
---------------------------------------------------------------------------
The following paragraph applies to all of the collections of
information covered by this notice:
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 Office of Management and Budget (``OMB'')
control number. In accordance with 31 CFR Sec. 1010.330(e)(3), a
person required to make a report under this section must keep a copy of
each report filed for five years from the date of filing.
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 5, 2012.
Jennifer Shasky Calvery,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2012-30121 Filed 12-12-12; 8:45 am]
BILLING CODE 4810-02-P