[Federal Register Volume 71, Number 117 (Monday, June 19, 2006)]
[Notices]
[Pages 35325-35335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-5492]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

Office of Thrift Supervision

FEDERAL DEPOSIT INSURANCE CORPORATION

NATIONAL CREDIT UNION ADMINISTRATION


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Suspicious Activity Report

AGENCIES: Financial Crimes Enforcement Network, Department of the 
Treasury (FinCEN); Office of the Comptroller of the Currency, 
Department of the Treasury (OCC); Office of Thrift Supervision, 
Department of the Treasury (OTS); Federal Deposit Insurance Corporation 
(FDIC); National Credit Union Administration (NCUA).

ACTION: Submission for OMB review; joint comment request.

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SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (44 U.S.C. chapter 35), FinCEN, OCC, OTS, FDIC, and NCUA 
(collectively, the ``agencies'') hereby give notice that they have 
submitted to the Office of Management and Budget (OMB) requests for 
review of the information collections described below.
    OCC, OTS, FDIC, NCUA, and FinCEN are submitting the Suspicious 
Activity Report (SAR) information collection to OMB for extension with 
revision. The Board of Governors of the Federal Reserve System (the 
Board) also participated in this review. However, the Board, under its 
Paperwork Reduction Act (PRA) delegated authority, will publish a 
separate final notice and submit its SAR information collection to OMB.
    On February 17, 2006, the agencies and the Board, requested public 
comment on a major revision of the SAR form. OCC also requested 
comments on all information collections contained in

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12 CFR part 21 (``Minimum Security Devices and Procedures, Reports of 
Suspicious Activities, and Bank Secrecy Act Compliance Program''). The 
agencies have made the proposed changes, as well as additional changes 
suggested by the commenters.

DATES: Written comments should be received on or before July 19, 2006.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments, which should refer to the 
associated OMB control numbers, will be shared among the agencies. 
Direct all written comments as follows:
    Financial Crimes Enforcement Network: Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183, Attention: 1506-0001, Revised 
Suspicious Activity Report by Depository Institutions. Comments also 
may be submitted by electronic mail to the following Internet address: 
[email protected] with the caption in the body of the text, 
``Attention: 1506-0001, Revised Suspicious Activity Report by 
Depository Institutions''.
    Comptroller of the Currency: Communications Division, Office of the 
Comptroller of the Currency, Public Information Room, Mailstop 1-5, 
Attention: 1557-0180, 250 E Street, SW., Washington, DC 20219. In 
addition, comments may be sent by fax to (202) 874-4448, or by 
electronic mail to [email protected]. You can inspect and 
photocopy the comments at the OCC's Public Information Room, 250 E 
Street, SW., Washington, DC 20219. You can make an appointment to 
inspect the comments by calling (202) 874-5043.
    Additionally, you should send a copy of your comments to OCC Desk 
Officer, 1557-0180, by mail to U.S. Office of Management and Budget, 
725 17th Street, NW., 10235, Washington, DC 20503, or by fax 
to (202) 395-6974.
    Office of Thrift Supervision: Send comments, referring to the 
collection by title of the proposal or by OMB control number, to OMB 
and OTS at these addresses: Office of Information and Regulatory 
Affairs, Attention: Desk Officer for OTS, U.S. Office of Management and 
Budget, 725 17th Street, NW., Room 10235, Washington, DC 20503, or by 
fax to (202) 395-6974; and Information Collection Comments, Chief 
Counsel's Office, Office of Thrift Supervision, 1700 G Street, NW., 
Washington, DC 20552; send a fax to (202) 906-6518; or send an e-mail 
to [email protected]. The Office of Thrift 
Supervision will post comments and the related index on its Internet 
site at http://www.ots.treas.gov. In addition, interested persons may 
inspect comments at the Public Reading Room, 1700 G Street, NW., by 
appointment. To make an appointment, call (202) 906-5922, send an e-
mail to public.info@ots.treas.gov">public.info@ots.treas.gov, or send a fax to (202) 906-7755.
    Federal Deposit Insurance Corporation: Written comments should be 
addressed to Steve Hanft, Clearance Officer, Legal Division MB-3064, 
Federal Deposit Insurance Corporation, 550 17th Street, NW., 
Washington, DC 20429. Fax No.: (202) 898-3838. E-mail: [email protected].
    National Credit Union Administration: Clearance Officer: Mr. Neil 
M. McNamara, (703) 518-6447, National Credit Union Administration, 1775 
Duke Street, Alexandria, VA 22314-3428, Fax No.: (703) 518-6489, E-
mail: [email protected].
    OMB: Alexander T. Hunt, (202) 395-7316, Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 10235, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: You may request additional information 
or a copy of the collection by contacting:
    FinCEN: Regulatory Policy and Programs Division at (800) 949-2732.
    OCC: You can request additional information or a copy of the 
collection from Mary Gottlieb, OCC Clearance Officer, or Camille 
Dickerson, (202) 874-5090, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 250 E Street, SW., 
Washington, DC 20219.
    OTS: Marilyn K. Burton, OTS Clearance Officer, at 
[email protected], (202) 906-6467, or facsimile number (202) 
906-6518, Litigation Division, Chief Counsel's Office, Office of Thrift 
Supervision, 1700 G Street, NW., Washington, DC 20552.
    Federal Deposit Insurance Corporation: Steve Hanft, Legal Division 
MB-3064, Federal Deposit Insurance Corporation, 550 17th Street, NW., 
Washington, DC 20429, (202) 898-3907.
    National Credit Union Administration: Tracy Sumpter, Office of the 
Chief Information Officer, (703) 518-6444, or John K. Ianno, Office of 
General Counsel, (703) 518-6540.

SUPPLEMENTARY INFORMATION:
    Title: Suspicious Activity Report. (The OCC is renewing all 
information collections covered under the information collection 
titled: ``(MA)--Minimum Security Devices and Procedures, Reports of 
Suspicious Activities, and Bank Secrecy Act Compliance Program (12 CFR 
21).'')
    OMB Numbers:

FinCEN: 1506-0001
OCC: 1557-0180
OTS: 1550-0003
FDIC: 3064-0077
NCUA: 3133-0094

    Form Numbers:

FinCEN: Form 111
OCC: 8010-1/8010-9
OTS: 1601
FDIC: 6710/06
NCUA: 2362

    Abstract: In 1985, the agencies issued procedures to be used by 
banks, thrifts, credit unions, their holding companies, and certain 
other depository institutions operating in the United States to report 
known or suspected criminal activities to the appropriate law 
enforcement agencies and the agencies themselves. Beginning in 1994, 
the agencies completely redesigned the reporting process. This redesign 
resulted in the existing Suspicious Activity Report, which became 
effective in April 1996.\1\
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    \1\ The report is authorized by the following rules: 31 CFR 
103.18 (FinCEN); 12 CFR 21.11 (OCC); 12 CFR 563.180 (OTS); 12 CFR 
353.3 (FDIC); 12 CFR 748.1 (NCUA). The rules were issued under the 
authority of 31 U.S.C. 5318(g) (FinCEN); 12 U.S.C. 93a, 1818, 1881-
84, 3401-22, 31 U.S.C. 5318 (OCC); 12 U.S.C. 1463 and 1464 (OTS); 12 
U.S.C. 93a, 1818, 1881-84, 3401-22 (FDIC); 12 U.S.C. 1766(a), 
1789(a) (NCUA).
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    Comments Received: On February 17, 2006, FinCEN and the banking 
regulators published a joint Federal Register notice (71 FR 8640) 
seeking comment on proposed revisions to the existing SAR. The proposed 
revisions to the form and instructions were published in the notice. 
All comments received in response to the notice were carefully 
considered. Those comments that the agencies believe will further 
improve the form are included in the package that the agencies have 
submitted to OMB for approval, as discussed below. The agencies are 
publishing the second Federal Register notice regarding the new 
Suspicious Activity Report by Depository Institutions (SAR-DI), as 
required by the PRA. This second notice advises the public that the 
agencies have submitted the proposed revisions to OMB for approval, 
discusses the comments received, explains agency responses to the 
comments, and requests additional comment.
    Current Actions: The proposed revisions standardize the new SAR-DI 
with the other SAR forms. The revisions were detailed in the first 
Federal Register notice, a copy of which is posted on the FinCEN Web 
site at http://www.fincen.gov/71_fr_86401.pdf.

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These revisions and additions will improve the form's usefulness to law 
enforcement and to the agencies.
    Comments Received and Agency Action Taken. The agencies received 
generally favorable comments from 23 commenters regarding the first 
notice. A majority of the commenters' suggestions involved policy 
issues rather than comments affecting the form's data collection 
elements. The following is a summary of the comments received:
    1. Two commenters noted that law enforcement contact information 
had been moved to the narrative section.
    Response: Noted. This change was made to simplify the form and was 
done with the approval of law enforcement agencies.
    2. Several commenters noted that use of the special responses 
listed in the instructions were confusing and wondered if the data 
cells such as SSN would accept the entries.
    Response: Noted. FinCEN confirms that all cells except ``Total 
Amount'' will accept alphanumeric entries. The instructions have been 
changed so that filers need enter only ``XX'' in critical fields when 
the information is unknown. A check box has been added to the ``Total 
Amount'' cell to allow the indication ``unknown.''
    3. Several commenters noted concern about removing the financial 
institution contact name from the form.
    Response: Noted. This action was taken with the approval of the 
agencies and law enforcement as a measure to protect the filer if a 
SAR-DI was inadvertently disclosed.
    4. Several commenters challenged the listed burden figure of one 
hour to complete the SAR-DI form.
    Response: The one hour figure cited in the notice is the time 
required to complete the form and does not include the routine 
recordkeeping requirement. The burden has been adjusted to account for 
the recordkeeping.
    5. Several commenters recommended that the reporting threshold 
limits be raised, time to file increased, and an exemption for filing 
on domestic cases be provided.
    Response: The agencies, FinCEN and law enforcement believe that the 
reporting threshold limits and filing deadlines are appropriate as 
proposed in the first notice, and do not believe that there is a need 
for an exemption for filing on domestic cases.
    6. Several commenters recommended adding various check boxes to the 
existing form. Cells for tax evasion, PEP (politically exposed person), 
MSB (money services business), and Non-Customer were requested.
    Response: In each case the ``Other'' box may be checked and the 
appropriate entry made on the line provided. The agencies believe that 
this is sufficient.
    7. One commenter suggested adding ``or recurring'' to box 1a.
    Response: Accepted.
    8. One commenter recommended moving the SAR-DI Part V instructions 
to another page.
    Response: The agencies believe that moving the instructions in this 
way would add to the form's length unnecessarily.
    9. One commenter suggested that the space for the narrative is too 
small and suggested re-numbering the instruction pages to ``a'', ``b'', 
``c'', etc.
    Response: The form's instructions direct the filer to use a blank 
sheet of bond paper if more space is required. Re-numbering the form's 
instruction pages with letters would not follow the IRS Style Guide, 
which is the standard for BSA forms design.
    10. One commenter questioned whether the government could use all 
of the information being collected on the SAR-DI.
    Response: Noted.
    11. Several commenters suggested that the ``optional'' tag be 
removed from the internal file or control number box.
    Response: The items tag was changed to ``If available'.
    12. One commenter requested that reporting institutions be required 
to employ enhanced due diligence if more than one law enforcement 
contact was made about a single report.
    Response: FinCEN currently notifies Law Enforcement through the 
Gateway system. Therefore, the requested enhanced due diligence is not 
needed.
    13. Two commenters requested that a cell for an e-mail address and 
a check box to indicate if the subject is an individual or an entity be 
added to Part I of the form.
    Response: The addition of an e-mail address box is accepted. This 
change is now included among the proposed revisions to the form. The 
type of subject as an individual or entity should be apparent from the 
information in the subject box.
    14. One commenter suggested that Part II, Item 23a be divided into 
two entries.
    Response: The Federal Banking Agencies and FinCEN believe it is 
more appropriate for Law Enforcement or the Examiners to determine the 
specific activity.
    15. Two commenters requested a check box to indicate if multiple 
SAR's on the subject had been filed.
    Response: This information is already available from the database.
    16. A commenter questioned the need to include non-depository 
institution regulators on the SAR-DI.
    Response: Noted. This information is required if jointly filing a 
SAR with a non-depository institution.
    17. One commenter suggested expanding the phone number cells to 
handle international numbers, modifying the DOB box, adding a reference 
to e-filing, and also suggested that the form have ``free form'' boxes.
    Response: Since the instructions already address each of these 
suggestions, no further changes need to be proposed.
    18. In view of the joint filing capability of the revised SAR-DI, 
one commenter suggested changing the name from Depository Institutions 
to Financial Institutions, and requested that ``amended, corrected, or 
updated report'' be defined. It was also suggested that the type of 
phone, i.e., cell, blackberry, etc., be indicated.
    Response: This is the SAR for Depository Institutions and a name 
change would be inconsistent with this group of filers. The 
instructions have been edited to define the terms. The type of phone is 
not considered necessary.
    19. Several commenters were concerned about the effective dates for 
the revised form. It was also suggested that an e-file ``beta'' test 
site be used to insure functionality of the revised form.
    Response: This notice identifies planned target dates for 
implementation. These dates will be adjusted as necessary to provide 
adequate planning lead-time. A ``beta'' e-filing test site is not 
available.
    20. Several commenters requested joint filing guidance and voiced 
concern regarding information sharing.
    Response: Guidance has been drafted and is currently under review. 
The agencies expect to issue guidance prior to the effective date of 
the form.
    21. In response to a Treasury Inspector General finding, FinCEN and 
a commenter recommended that a ``Date Discovered'' field be added to 
the Suspicious Activity cell.
    Response: After discussion, it was agreed that such a date should 
not be added to the report because it would be too subjective if more 
than one suspicious activity was selected.
    22. One commenter recommended that Part V, the narrative, be 
restructured to provide specific examples of what information to 
include.
    Response: The SAR narrative checklist and the SAR Activity Review, 
available on the FinCEN Web site, already provide sufficient guidance 
to

[[Page 35328]]

the type of information recommended for inclusion in this part of the 
report.
    23. One commenter commented on the proposed multiple changes to the 
SAR and voiced their support for each.
    Response: Noted.
    24. One commenter and three of the banking agencies suggested that 
Part III be reformatted to provide space to record ``Holding Company'' 
information if the SAR is filed at the Enterprise level. The commenter 
also suggested that the term ``Branch Office'' be renamed to ``Office'' 
as more inclusive and the term ``necessarily'' be removed from the 
statement covering repeat information.
    Response: Accepted. Part III of the SAR-DI has been reformatted to 
permit the recording of holding company information while correctly 
listing the financial institution where the reported activity occurred 
and the instructions have been edited accordingly. To retain the joint 
filing format, the term ``Branch Office'' has been changed to ``branch 
or office''. The term ``necessarily'' was deleted from the appropriate 
instruction.
    25. One commenter suggested that the names of people who have 
questioned the subjects be included in the report. It was also 
suggested that the new internal control/file number is not needed. This 
commenter approved of excluding the disclosure statements in the 
narrative.
    Response: SAR Part V Checklist line ``e'' covers the suggestion 
regarding subjects. In view of the removal of the filer's name, the 
internal control/file number is extremely important in determining 
which report is under discussion. The agencies therefore believe that 
this item should remain.
    26. One commenter noted that moving the relationship of subject 
information from Part II to Part III posed a problem with reporting 
multiple subjects.
    Response: Accepted. The instructions have been revised to correct 
the noted problem.
    Special Instructions: The agencies are proposing an effective date 
of January 1, 2007, for all revisions to the Suspicious Activity Report 
(SAR) form and instructions that are approved by OMB. The SAR form 
included in this Federal Register notice is for training and system 
configuration use only. Do not use this form to report suspicious 
activity before January 1, 2007. Depository institutions may use the 
current SAR dated July 2003 until June 30, 2007. Depository 
institutions reporting possible terrorist-financed suspicious activity 
must file a SAR as indicated above, but should also contact FinCEN's 
Financial Institutions Hotline, (866) 556-3974, to report the activity. 
Call FinCEN's Regulatory Helpline, (800) 949-2732, after January 1, 
2007, for individual copies of the form. Visit FinCEN's Internet site, 
http://www.fincen.gov, after January 1, 2007, for information about 
obtaining bulk copies of the form or to obtain a fill-in version.
    Type of Review: Revision of a currently approved collection.
    Affected Public: Business, for-profit institutions, and non-profit 
institutions.
    Estimated Number of Respondents:

FinCEN: 27,262 \2\
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    \2\ Many respondents included in this estimate are also counted 
in the agencies' estimates.
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OCC: 1,928
OTS: 862
FDIC: 5,200
NCUA: 9,300

    Estimated Total Annual Responses:

FinCEN: 399,848
OCC: 250,184
OTS: 36,569
FDIC: 16,018
NCUA: 2,961

    Estimated Total Annual Burden:

    Note: The agencies have estimated 60 minutes for form 
completion. FinCEN assumes an additional 60 minutes for 
recordkeeping as required under 31 FR 103.18).

FinCEN: 799,696 hours \3\
OCC: 365,194 hours
OTS: 36,569 hours
FDIC: 16,018 hours
NCUA: 2,961 hours

    \3\ A respondent need only file one form. The estimated burden 
per form is 60 minutes; this estimate does not allocate time between 
or among agencies when copies of the form are filed to satisfy the 
rules of more than one agency.
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    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. A respondent must 
retain the supporting records to the SAR for five years. Generally, 
information collected pursuant to the Bank Secrecy Act is confidential, 
but may be shared as provided by law with regulatory and law 
enforcement authorities.
    Request for Comments: Comments are invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the agencies, including whether 
the information shall have practical utility;
    (b) The accuracy of the agencies' estimate of the burden of the 
collection of information, including the validity of the methodology 
and assumptions used;
    (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.
Attachment: Suspicious Activity Report by Depository Institutions

    Dated: June 12, 2006.
Donald Carbaugh,
Acting Associate Director, Regulatory Policy and Programs Division, 
Financial Crimes Enforcement Network.
    Dated: June 2, 2006.
Stuart Feldstein,
Assistant Director, Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency.
    Dated: June 13, 2006.
Deborah Dakin,
Senior Deputy Chief Counsel, Regulations and Legislation Division, 
Office of Thrift Supervision.
    By Order of the Board of Directors.

    Dated at Washington, DC, this 8th day of June, 2006.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
    By the National Credit Union Administration Board on June 6, 
2006.
Mary Rupp,
Secretary of the Board.
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[FR Doc. 06-5492 Filed 6-16-06; 8:45 am]
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