[Federal Register Volume 62, Number 21 (Friday, January 31, 1997)]
[Notices]
[Page 4764]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2356]



[[Page 4764]]

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FEDERAL DEPOSIT INSURANCE CORPORATION

Use of Large-Value Funds Transfers for Money Laundering; 
Rescission of Policy Statement

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Rescission of policy statement.

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SUMMARY: As part of the FDIC's systematic review of its regulations and 
written policies under section 303(a) of the Riegle Community 
Development and Regulatory Improvement Act of 1994 (CDRI), the FDIC is 
rescinding its adoption of the policy statement (Statement) concerning 
the problem of the use of large-value funds transfers for money 
laundering. The Statement recommends that banks obtain and maintain 
certain records with respect to funds transfers sent or received in the 
normal course of business. The FDIC is rescinding the adoption of the 
Statement because it was replaced by an amendment to the Bank Secrecy 
Act regulations.

DATES: This Statement is rescinded on January 31, 1997.

FOR FURTHER INFORMATION CONTACT: R. Eugene Seitz, Review Examiner, 
(202) 898-6793, Division of Supervision; Barbara Katron, Counsel, (202) 
736-0564, Legal Division, FDIC, 550 17th Street, N.W., Washington, D.C. 
20429.

SUPPLEMENTARY INFORMATION: The FDIC is conducting a systematic review 
of its regulations and written policies. Section 303(a) of the CDRI (12 
U.S.C. 4803(a)) requires each federal banking agency to streamline and 
modify its regulations and written policies in order to improve 
efficiency, reduce unnecessary costs, and eliminate unwarranted 
constraints on credit availability. Section 303(a) also requires each 
federal banking agency to remove inconsistencies and outmoded and 
duplicative requirements from its regulations and written policies.
    As part of this review, the FDIC has determined that the Statement 
is outmoded, and that the FDIC's written policies can be streamlined by 
its elimination.
    The Statement was published on March 17, 1993, 58 FR 14400, 
effective December 8, 1992, by the Federal Financial Institutions 
Examination Council (FFIEC). The Statement recommended that banks 
obtain and maintain certain records concerning funds transfers 
originated or received. The FFIEC adopted the Statement upon the 
recommendation of the Financial Action Task Force (FATF) as a means to 
assist law enforcement agencies in the identification and documentation 
of parties to funds transfers. Each federal banking agency subsequently 
adopted the Statement.
    On January 3, 1995, the Department of the Treasury and the Board of 
Governors of the Federal Reserve System jointly published in the 
Federal Register an amendment to the Bank Secrecy Act (BSA) regulations 
that requires financial institutions to obtain and maintain records 
concerning funds transfers originated or received by the institutions. 
The recordkeeping requirements contained in the amendment to the BSA 
regulations are the same as those recommended in the Statement. The 
amendment to the BSA regulations became effective May 28, 1996; the 
Statement has become duplicative and, therefore, unnecessary.
    On September 13, 1996, the FFIEC voted to rescind the Statement.
    For the above reasons, the FDIC's adoption of the Statement is 
hereby rescinded.

    Dated at Washington, D.C., this 21st day of January, 1997.

    By Order of the Board of Directors.

Federal Deposit Insurance Corporation.
Jerry L. Langley,
Executive Secretary.
[FR Doc. 97-2356 Filed 1-30-97; 8:45 am]
BILLING CODE 6714-01-P