[Federal Register Volume 67, Number 39 (Wednesday, February 27, 2002)]
[Notices]
[Pages 9031-9043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4622]


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DEPARTMENT OF THE TREASURY


Financial Crimes Enforcement Network; Proposed Collection; 
Comment Request; Suspicious Activity Report by Money Services 
Businesses

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

ACTION: Notice and request for comments.

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SUMMARY: As part of its continuing effort to reduce paperwork and 
respondent burden, FinCEN invites comment on a proposed information 
collection contained in a new form, ``Suspicious Activity Report by 
Money Services Businesses.'' The form will be used by money 
transmitters and issuers, sellers, and redeemers of money orders and 
traveler's checks to report suspicious activity to the Department of 
the Treasury. This request for comments is being made pursuant to the 
Paperwork Reduction Act of 1995, Public Law 104-13, 44 U.S.C. 
3506(c)(2)(A).

DATES: Written comments are welcome and must be received on or before 
April 29, 2002.

ADDRESSES: Written comments should be submitted to: Office of Chief 
Counsel, Financial Crimes Enforcement Network, Department of the 
Treasury, P.O. Box 39, Vienna, Virginia 22183, Attention: PRA 
Comments--SAR-MSB Form. Comments also may be submitted by electronic 
mail to the following Internet address: [email protected], 
again with a caption, in the body of the text, ``Attention: PRA 
Comments--SAR-MSB Form.''
    Inspection of comments. Comments may be inspected, between 10 a.m. 
and 4 p.m., in the FinCEN reading room in Washington, DC. Persons 
wishing to inspect the comments submitted must request an appointment 
by telephoning (202) 354-6400.

FOR FURTHER INFORMATION CONTACT: Patrice Motz, Chief, MSB, Casinos and 
IRS Programs, and Leonard Senia, Regulatory Program Specialist (Team 
Leader), FinCEN, at (202) 354-6015; Judith R. Starr, Chief Counsel and 
Christine L. Schuetz, Attorney-Advisor, FinCEN, at (703) 905-3590.

SUPPLEMENTARY INFORMATION: Title: Suspicious Activity Report by Money 
Services Businesses.
    OMB Number: Unassigned.
    Form Number: TD F 90-22.56.
    Abstract: The statute generally referred to as the ``Bank Secrecy 
Act,'' Titles I and II of Public Law 91-508, as amended, codified at 12 
U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311-5331, authorizes 
the Secretary of the Treasury, inter alia, to require financial 
institutions to keep records and file reports that are determined to 
have a high degree of usefulness in criminal, tax, and regulatory 
matters, or in the conduct of intelligence or counter-intelligence 
activities, to protect against international terrorism, and to 
implement counter-money laundering programs and compliance 
procedures.\1\ Regulations implementing Title II of the Bank Secrecy 
Act appear at 31 CFR Part 103. The authority of the Secretary to

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administer the Bank Secrecy Act has been delegated to the Director of 
FinCEN.
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    \1\ Language expanding the scope of the Bank Secrecy Act to 
intelligence or counter-intelligence activities to protect against 
international terrorism was added by Section 358 of the Uniting and 
Strengthening America by Providing Appropriate Tools Required to 
Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (the 
``USA Patriot Act''), P.L. 107-56.
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    The Secretary of the Treasury was granted authority in 1992, with 
the enactment of 31 U.S.C. 5318(g), to require financial institutions 
to report suspicious transactions. On March 14, 2000, FinCEN issued a 
final rule requiring certain categories of money services businesses 
(``MSBs''), including money transmitters and issuers, sellers, and 
redeemers of money orders and traveler's checks, to report suspicious 
transactions. (65 FR 13683). The final rule can be found at 31 CFR 
103.20.
    On December 20, 2001, FinCEN published a notice in the Federal 
Register (``FinCEN Issuance 2001-2''), reminding money transmitters and 
issuers, sellers, and redeemers of money orders and traveler's checks 
that the requirement to report suspicious transactions would apply to 
transactions occurring on or after January 1, 2002. In FinCEN Issuance 
2001-2, FinCEN directed such entities to report suspicious activity on 
the existing bank suspicious activity report, Form TD F 90-22.47, until 
such time as FinCEN developed a form to be used solely by money 
transmitters and issuers, sellers, and redeemers of money orders and 
traveler's checks. This notice contains the draft form that has been 
specifically developed for use by money transmitters and issuers, 
sellers, and redeemers of money orders and traveler's checks to report 
suspicious activity (``SAR-MSB'').
    The information collected on the new form is required to be 
provided pursuant to 31 U.S.C. 5318(g) and 31 CFR 103.20. This 
information will be made available, in accordance with strict 
safeguards, to appropriate criminal law enforcement and regulatory 
personnel for use in official performance of their duties, for 
regulatory purposes and in investigations and proceedings involving 
domestic and international money laundering, tax violations, fraud, and 
other financial crimes.
    Reports filed by MSBs required to report suspicious transactions 
under 31 CFR 103.20, and any reports filed voluntarily by other MSBs 
will be 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.
    The draft SAR-MSB is presented only for purposes of soliciting 
public comment on the form. This form should not be used at this time 
to report suspicious activity. A final version of the form will be made 
available at a later date. In the meantime, money transmitters and 
issuers, sellers, and redeemers of money orders and traveler's checks 
should continue to report suspicious activity on TD F 90-22.47, and are 
requested to enter the letters ``MSB'' in block letters at the top of 
the form and in the empty space in item 5 of the TD F 90-22.47.
    Type of Review: New information collection.
    Affected public: Business or other for-profit institutions.
    Frequency: As required.
    Estimated Burden: Reporting average of 35 minutes per response. 
Estimated number of respondents = 10,000. Estimated Total Annual 
Responses = 10,000. Estimated Total.
    Annual Burden Hours: 350,000 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. 
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: February 21, 2002.
James F. Sloan,
Director, Financial Crimes Enforcement Network.

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[FR Doc. 02-4622 Filed 2-26-02; 8:45 am]
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