[Federal Register Volume 67, Number 150 (Monday, August 5, 2002)]
[Notices]
[Pages 50751-50762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-19662]


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DEPARTMENT OF THE TREASURY


Financial Crimes Enforcement Network; Proposed Collection; 
Comment Request; Suspicious Activity Report by the Securities and 
Futures Industry

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 the 
Securities and Futures Industry (SAR-SF).'' The form will be used by 
broker-dealers to report suspicious activity to the Department of the 
Treasury. Futures commission merchants may also use the form to report 
suspicious activity to the Department of the Treasury on a voluntary 
basis. 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 
October 4, 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-Securities and Futures Industry 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-Securities and Futures Industry 
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: Peter Djinis, Executive Assistant 
Director Regulatory Policy, FinCEN, at (703) 905-3930; Russell 
Stephenson, Regulatory Program Specialist, Office of Compliance and 
Regulatory Enforcement, FinCEN, at (202) 354-6015; and Judith R. Starr, 
Chief Counsel and Christine L. Schuetz, Attorney-Advisor, Office of 
Chief Counsel, FinCEN, at (703) 905-3590.

SUPPLEMENTARY INFORMATION:
    Title: Suspicious Activity Report by the Securities and Futures 
Industry (SAR-SF).
    OMB Number: 1506-0019.
    Form Number: TD F 90-22.XX.
    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. 5311-5332, 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 
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 July 1, 2002, FinCEN issued a 
final rule requiring brokers or dealers in securities (``broker-
dealers'') to report suspicious transactions (``Broker-Dealer SAR 
Rule''). (67 FR 44048). The final rule can also be found at 31 CFR 
103.19.
    In the preamble to the final Broker-Dealer SAR Rule, FinCEN 
indicated that it would be developing a suspicious activity reporting 
form for broker-dealers entitled ``Suspicious Activity Report--Brokers 
or Dealers in Securities,'' or ``SAR-BD.''\2\ The form may also be used 
by futures commission merchants (``FCMs'') registered with the 
Commodities Futures Trading

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Commission voluntarily to report suspicious activity to FinCEN. Thus, 
the title of the draft form has been revised slightly from ``SAR-BD'' 
to ``SAR-SF,'' and several fields are provided on the form for use by 
FCMs.\3\
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    \2\ See 67 FR 44048, 44051.
    \3\ FinCEN anticipates issuing shortly a Notice of Proposed 
Rulemaking that would require FCMs to report suspicious activity.
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    The information collected on the new form is required to be 
provided pursuant to 31 U.S.C. 5318(g) and 31 CFR 103.19. This 
information will be made available, in accordance with strict 
safeguards, to appropriate criminal law enforcement and regulatory 
personnel, and to the registered securities associations and national 
securities exchanges (so-called self-regulatory organizations) 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 broker-dealers required to report suspicious 
transactions under 31 CFR 103.19, and any reports filed voluntarily by 
other broker-dealers 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-SF 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.
    Type of Review: New information collection.
    Affected public: Business or other for-profit institutions.
    Frequency: As required.
    Estimated Burden: Reporting average of 40 minutes per response.\4\
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    \4\ This burden relates to the completion of the SAR-SF form. 
The recordkeeping burden of 31 CFR 103.19 is reflected in the final 
rule requiring broker-dealers to file reports of suspicious 
activity. See 67 FR 44048, 44055.
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    Estimated number of respondents = 8,300.
    Estimated Total Annual Responses = 2,000.
    Estimated Total Annual Burden Hours: 1,350.
    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: July 26, 2002.
James F. Sloan,
Director, Financial Crimes Enforcement Network.

    Attachment--Suspicious Activity Report by the Securities and 
Futures Industry

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[FR Doc. 02-19662 Filed 8-2-02; 8:45 am]
BILLING CODE 4810-02-C