[Federal Register Volume 66, Number 117 (Monday, June 18, 2001)]
[Rules and Regulations]
[Page 32746]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15224]


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DEPARTMENT OF THE TREASURY

31 CFR Part 103


Extension of Grant of Conditional Exception to Bank Secrecy Act 
Regulations Relating to Orders for Transmittal of Funds by Financial 
Institutions

AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.

ACTION: Extension of a grant of conditional exception; request for 
comments.

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SUMMARY: FinCEN extends for another two years a conditional exception 
to a Bank Secrecy Act requirement. The exception, which would otherwise 
expire on May 31, 2001, permits financial institutions to comply more 
efficiently with the requirement for inclusion of certain information 
in orders for transmissions of funds.

DATES: Effective June 1, 2001. Written comments on the question raised 
in this document must be received on or before December 1, 2001.

ADDRESSES: Written comments should be submitted to: Office of Chief 
Counsel, Financial Crimes Enforcement Network, Department of the 
Treasury, 2070 Chain Bridge Road, Vienna, Virginia 22182, Attention: 
Travel Rule--Extension of CIF Exception. Comments also may be submitted 
by electronic mail to the following internet address--
[email protected] the caption described in the 
previous sentence. Comments may be inspected, between 10 a.m. and 4 
p.m., in the FinCEN reading room at the Franklin Court Building, 14th 
and L Streets, Washington, DC. Persons wishing to inspect the comments 
submitted should request an appointment by telephoning (202) 354-6400.

FOR FURTHER INFORMATION CONTACT: David K. Gilles, Chief, Financial 
Institutions Program, FinCEN, (202) 354-6400, or Albert R. Zarate, 
Senior Regulatory Counsel, Office of Chief Counsel, FinCEN, (703) 905-
3590.

SUPPLEMENTARY INFORMATION:

I. Background

    In 1998, FinCEN granted a conditional exception (the ``CIF 
Exception'') to the strict operation of 31 CFR 103.33(g) (the ``Travel 
Rule''). See FinCEN Issuance 98-1, 63 FR 3640 (January 26, 1998). The 
Travel Rule requires a financial institution to include certain 
information in transmittal orders relating to transmittals of funds of 
$3,000 or more. The CIF Exception addressed computer programming 
problems in the banking and securities industries by relaxing the 
Travel Rule's requirement that a customer's true name and street 
address be included in a funds transmittal order, so long as alternate 
steps, described in FinCEN Issuance 98-1 and designed to prevent 
avoidance of the Travel Rule, were satisfied. By its terms, the CIF 
Exception to the Travel Rule was to expire on May 31, 1999; however, 
FinCEN extended the CIF Exception so that it would expire instead on 
May 31, 2001. See FinCEN Issuance 99-1, 64 FR 41041 (July 29, 1999).
    The basis for the CIF Exception and its extension remain valid--
namely, that relaxing the strict operation of the Travel Rule is 
appropriate to meet the continuing programming problems in the banking 
and securities industry, so long as complete information about funds 
transfers can be made available efficiently to law enforcement 
officials. FinCEN specifically invites comments as to whether the terms 
of the CIF Exception should be permanently incorporated into the Travel 
Rule.

II. FinCEN Issuance 2001-1

    By virtue of the authority contained in 31 CFR 103.55(a) and (b), 
which has been delegated to the Director of FinCEN, the effective 
period of the CIF Exception, as such Exception is set forth (as part of 
FinCEN Issuance 98-1, 63 FR 3640 (January 26, 1998)) under the heading 
``Grant of Exceptions'' (63 FR 3641) is extended so that the CIF 
Exception will expire, on May 31, 2003 (if not revoked or modified with 
respect to such expiration date prior to that time), for transmittals 
of funds initiated after that date.

    Signed this 30th day of May, 2001.
James F. Sloan,
Director, Financial Crimes Enforcement Network.
[FR Doc. 01-15224 Filed 6-15-01; 8:45 am]
BILLING CODE 4820-03-P