[Federal Register Volume 62, Number 159 (Monday, August 18, 1997)]
[Notices]
[Pages 44032-44033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21815]


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DEPARTMENT OF THE TREASURY


Proposed Collection; Comment Request

AGENCY: Financial Crimes Enforcement Network, Treasury.

ACTION: Notice.

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SUMMARY: In order to comply with the Paperwork Reduction Act of 1995 
concerning new information collection requirements, the Financial 
Crimes Enforcement Network (``FinCEN'') is soliciting comments 
concerning a proposed new Treasury Form TD F 90-22.49, Suspicious 
Activity Report by Casinos (``SARC''), which will be used by Nevada 
casinos, effective October 1, 1997, to file with FinCEN reports of 
potentially suspicious transactions and activities that may occur by, 
at, or through a Nevada casino.

DATES: Written comments must be received on or before October 17, 1997.

ADDRESSES: Direct all written comments to the Financial Crimes 
Enforcement Network, Office of Program Development, Attn.: SARC 
Comments, Suite 200, 2070 Chain Bridge Road, Vienna, VA 22182-2536. 
Comments may also be submitted by Internet e-mail to 
RegC[email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
for a copy of the draft form should be directed to Leonard Senia, 
Senior Financial Enforcement Officer, Office of Program Development, 
(703) 905-3931, or by inquiry to the Internet e-mail address shown 
above. A copy of the draft SARC form can be obtained through the 
Internet at http://www.ustreas.gov/treasury/bureaus/fincen. Once the 
SARC form is issued as a final form, a copy of it, as well as all forms 
required by the Bank Secrecy Act, can be obtained through the Internet 
at http://www.irs.ustreas.gov/prod/forms-pubs/forms.html.

SUPPLEMENTARY INFORMATION: The Currency and Foreign Transactions 
Reporting Act (commonly known as 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. 5311-5314, 5316-5326, 5328-5330, specifically 
authorizes the Secretary of the Treasury, inter alia, to issue 
regulations that require domestic financial institutions to report 
suspicious transactions. See 31 U.S.C. 5318(g). The authority of the 
Secretary to administer the Bank Secrecy Act (``BSA'') regulations has 
been delegated to the Director of FinCEN.
    The BSA defines financial institutions to include casinos. See 31 
U.S.C. 5312(a)(2)(X) and 31 CFR 103.11(n)(7)(i). Nevada Gaming 
Commission Regulation 6A, Section 100, requires Nevada casinos to 
report suspicious transactions to FinCEN as part of its continuing 
responsibilities pursuant to a May 1985 cooperative agreement between 
the State of Nevada and the U.S. Department of the Treasury. That 
agreement obligates Nevada to implement a state casino regulatory 
system which substantially meets federal regulatory requirements 
designed to address money laundering and other financial crimes which 
may occur at casinos.
    FinCEN is proposing a new information collection requirement 
pertaining to the reporting of suspicious transactions to permit a 
federal form to be used to satisfy Nevada Regulation 6A. Under the new 
requirement, contained in Section 100 of that Regulation, which will 
become effective on October 1, 1997, Nevada casinos must file their 
reports of suspicious transactions with FinCEN, using the SARC form, 
and its accompanying instructions.
    The information collection requirement contained in this notice 
supports one of the purposes of the Paperwork Reduction Act (``PRA'') 
of 1995 which is to ``strengthen the partnership between the Federal 
Government and State, local, and tribal governments by minimizing the 
burden and maximizing the utility of information created, collected, 
maintained, used, disseminated, and retained by or for the Federal 
Government'' (see 44 U.S.C. 3501(6)). This goal is accomplished, in 
part, through the creation of a single reporting form for suspicious 
casino transactions and activities--Treasury Form TD F 90-22.49 (SARC).
    As previously mentioned, Nevada casino licensees must use the SARC 
in satisfying the new suspicious activity reporting requirement 
contained in Nevada State Regulation 6A, Section 100. FinCEN intends to 
issue a notice of proposed rulemaking, sometime in 1997, that would 
require non-Nevada casinos or card clubs subject to the requirements of 
the BSA and its implementing regulations to report suspicious activity. 
Until such a rule is published as a final rule in the Federal Register 
and takes effect, casinos and card clubs in jurisdictions other than 
Nevada are encouraged to file the SARC form to report suspicious 
activity. Once FinCEN has issued a notice of proposed rulemaking on 
suspicious transaction reporting by casinos, it will prepare a 
subsequent PRA notice to permit persons in other jurisdictions to 
comment on a SARC. FinCEN anticipates the form will be modified 
slightly to accommodate the nationwide extension of suspicious activity 
reporting to casinos and card clubs.
    Reports filed by Nevada casinos and any reports filed voluntarily 
by other casinos and card clubs will be fully subject to the protection 
from liability contained in 31 U.S.C. 5318(g)(3) and the provision 
contained in 31 U.S.C. 5318(g)(2) which prohibits notification of any 
person involved in the transaction that a suspicious activity report 
has been filed.
    Information collected on the SARC will be made available, in 
accordance with strict safeguards, to appropriate criminal law 
enforcement and regulatory personnel for use in the official 
performance of their duties. The information collected is used for 
regulatory purposes and in investigations and proceedings involving 
international and domestic

[[Page 44033]]

money laundering, tax violations, fraud, and other financial crimes.
    FinCEN has requested that a different OMB Control Number be 
assigned for this collection requirement than the OMB Control Number 
assigned for Treasury Form TD F 90-22.47, Suspicious Activity Report, 
which is applicable to banks and other depository institutions. This 
will facilitate FinCEN's oversight over its BSA information collection 
requirements by obtaining a unique OMB Control Number for each specific 
form.
    In accordance with requirements of the Paperwork Reduction Act of 
1995, 44 U.S.C. 3506(c)(2)(A), and its implementing regulations, 5 CFR 
part 1320, the following information concerning the collection of 
information on Treasury Form TD F 90-22.49, is presented to assist 
those persons wishing to comment on the information collection.
    Title: Suspicious Activity Report by Casinos (``SARC'').
    Form Number: Treasury Form TD F 90-22.49.
    OMB Number: To be assigned.
    Description of Respondents: Initially, all Nevada casinos, with 
gross annual gaming revenue in excess of $10 million and having an 
annual table games statistical win in excess of $2 million.
    Estimated Number of Respondents: 94.
    Estimated Number of Annual Responses: 1,700.
    Frequency: As required.
    Estimate of Burden: Reporting average of 31 minutes per response; 
recordkeeping average of 5 minutes per response. No regulatory burden 
is imposed by federal regulation in this case because state regulation 
imposes the regulatory burden.
    Estimate of Total Annual Burden on Respondents: Reporting burden 
estimate = 878 hours; recordkeeping burden estimate = 142 hours. 
Estimated combined total of 1,020 hours.
    Estimate of Total Annual Cost to Respondents for Hour Burdens: 
Based on $20 per hour, the total cost to the public is estimated to be 
$20,400.
    Estimate of Total Other Annual Costs to Respondents: None.
    Type of Request: New information collection.

Request for Comments

    FinCEN specifically invites comments on the following subjects: (a) 
Whether the proposed collection of information is necessary for the 
proper performance of the mission of FinCEN, including whether the 
information shall have practical utility; (b) the accuracy of FinCEN's 
estimate of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (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.
    In addition, the Paperwork Reduction Act of 1995 requires agencies 
to estimate the total annual cost burden to respondents or 
recordkeepers resulting from the collection of information. Thus, 
FinCEN also specifically requests comments to assist with this 
estimate. In this connection, FinCEN requests commenters to identify 
any additional costs associated with the completion of the form. These 
comments on costs should be divided into two parts: (1) Any additional 
costs associated with reporting; and (2) any additional costs 
associated with recordkeeping.
    Responses to the questions posed by this notice will be summarized 
and included in the request for Office of Management and Budget 
approval. All comments will become a matter of public record.

    Dated: August 12, 1997.
Stanley E. Morris,
Director, Financial Crimes Enforcement Network.
[FR Doc. 97-21815 Filed 8-15-97; 8:45 am]
BILLING CODE 4820-03-P