[Federal Register Volume 64, Number 14 (Friday, January 22, 1999)]
[Notices]
[Pages 3585-3586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1485]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Proposed Collection; Comment Request
AGENCY: Financial Crimes Enforcement Network, Treasury.
ACTION: Notice and request for comments.
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SUMMARY: The Department of the Treasury (``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, Pub. L. 104-13 (44
U.S.C. 3506(c)(2)(A)). Currently, the Financial Crimes Enforcement
Network (``FinCEN'') is soliciting comments concerning a new form,
``Designation of Exempt Person,'' for use by banks and other depository
institutions (``banks'') in designating their eligible customers as
exempt from the requirement that banks report to Treasury customer
transactions in currency in excess of $10,000.
DATES: Written comments should be received on or before March 23, 1999
to be assured of consideration.
ADDRESSES: Direct all written comments to: Office of Chief Counsel,
Financial Crimes Enforcement Network, Department of the Treasury, Suite
200, 2070 Chain Bridge Road, Vienna, VA 22182-2536, Attention: PRA
Comments--Designation of Exempt Person. 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--Designation of Exempt Person.''
FOR FURTHER INFORMATION CONTACT: Requests for additional information
should be directed to Charles Klingman, Financial Institutions Policy
Specialist, FinCEN, at (703) 905-3602, or Eileen Dolan, FinCEN, at
(703) 905-3618. A copy of the form may be obtained through the Internet
at http://www.treas.gov/fincen.
SUPPLEMENTARY INFORMATION:
Title: Designation of Exempt Person.
OMB Number: 1506-0012.
Form Number: TD F 90-22.53.
Abstract: The Bank Secrecy Act, Titles I and II of Pub. L. 91-508,
as amended, codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31
U.S.C. 5311-5330, authorizes the Secretary of the Treasury, inter alia,
to issue regulations requiring records and reports that are determined
to have a high degree of usefulness in criminal, tax, and regulatory
matters. Regulations implementing Title II of the Bank Secrecy Act
(codified at 31 U.S.C. 5311-5330) appear at 31 CFR part 103. The
authority of the Secretary to administer Title II of the Bank Secrecy
Act has been delegated to the Director of FinCEN.
The reporting by financial institutions of transactions in currency
in excess of $10,000 has long been a major component of the Department
of the Treasury's implementation of the Bank Secrecy Act. The reporting
requirement is imposed by 31 CFR 103.22, a rule issued under the broad
authority granted to the Secretary of the Treasury by 31 U.S.C. 5313(a)
to require reports of domestic coins and currency transactions.
The Money Laundering Suppression Act of 1994, Title IV of the
Riegle Community Development and Regulatory Improvement Act (Pub. L.
103-325) amended 31 U.S.C. 5313. The statutory amendments mandate
exemptions from currency transaction reporting in the case of customers
that
[[Page 3586]]
are other banks, certain governmental entities, or businesses for which
reporting would serve little or no law enforcement purpose. The
amendments also authorize Treasury to exempt certain other businesses.
On September 8, 1997, and September 21, 1998, Treasury issued final
rules regarding these statutory amendments (62 FR 47141 and 63 FR
50147, respectively). The final rules reform and simplify the process
by which banks may exempt eligible customers.
Under the simplified procedures of the new rules, a key requirement
is a ``designation'' sent to the Treasury indicating that a customer
will be treated by the bank as an exempt person, so that no further
currency transaction reports will be filed on the customer's cash
transactions exceeding $10,000. As part of the simplification process,
Treasury is issuing a new form specifically for making that
designation. This dedicated-use form will be easier to use than the
current procedure, which requires banks to complete certain entries on
the currency transaction report itself. The dedicated-use form will
also enable Treasury to develop procedures for the magnetic media
filing of exemptions.
The information collected on the new form, Designation of Exempt
Person, TD F 90-22.53 is required to exempt bank customers from
currency transaction reporting. The information is used to help
determine whether a bank has properly exempted its customers. The
collection of information is mandatory.
Type of Review: New information collection.
Affected Public: Business or other for-profit institutions.
Estimated Number of Respondents: 19,000.
Estimated Total Annual Responses: 250,000.
Estimated Total Annual Burden Hours: Reporting average of 10
minutes per response; recordkeeping average of 1 hour per response.
Estimated total annual burden hours: Reporting burden of 41,667 hours;
recordkeeping burden of 250,000 hours, for an estimated combined total
of 291,667 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.
Generally, information collected pursuant to the Bank Secrecy Act is
confidential, but may be shared as provided by law with regulatory and
law enforcement authorities.
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: January 13, 1999.
William F. Baity,
Acting Director, Financial Crimes Enforcement Network.
[FR Doc. 99-1485 Filed 1-21-99; 8:45 am]
BILLING CODE 4820-03-P