[Federal Register Volume 64, Number 14 (Friday, January 22, 1999)]
[Pages 3585-3586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1485]



Financial Crimes Enforcement Network

Proposed Collection; Comment Request

AGENCY: Financial Crimes Enforcement Network, Treasury.

ACTION: Notice and request for comments.


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.

    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 

[[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]