[Federal Register Volume 74, Number 12 (Wednesday, January 21, 2009)]
[Notices]
[Pages 3670-3671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-1069]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Proposed Collection; Comment Request; Suspicious Activity Report 
by Insurance Companies

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

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: FinCEN invites comment on a renewal without change of an 
information collection requirement contained in the form ``Suspicious 
Activity Report by Insurance Companies,'' or the SAR-IC, FinCEN Form 
108. In the interim until Bank Secrecy Act database issues are 
resolved, insurance companies will report suspicious activities using 
the ``Suspicious Activity Report by the Securities and Futures 
Industries,'' (SAR-SF, FinCEN Form 101). This request for comments also 
covers 31 CFR 103.16. 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 
March 23, 2009.

ADDRESSES: Written comments should be submitted to: Department of the 
Treasury, Financial Crimes Enforcement Network, Regulatory Policy and 
Programs Division, P.O. Box 39, Vienna, VA 22183, Attention: PRA 
Comments--SAR-Insurance Companies Reporting. 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-Insurance Companies Reporting.''
    Inspection of comments. Comments may be inspected, between 10 a.m. 
and 4 p.m., in the FinCEN reading room in Vienna, VA. Persons wishing 
to inspect the comments submitted must request an appointment with the 
Disclosure Officer by telephoning (703) 905-5034 (not a toll free 
call).

FOR FURTHER INFORMATION CONTACT: The FinCEN Regulatory Helpline at 800-
949-2732, select option 7.

SUPPLEMENTARY INFORMATION:
    Title: Suspicious Activity Reporting by Insurance Companies; 31 CFR 
103.16.
    OMB Number: 1506-0029.
    Form Number: FinCEN Form 108.
    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. 5311-14, 5316-5332, 
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 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.
---------------------------------------------------------------------------

    \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''), Pub. L. 107-56.
---------------------------------------------------------------------------

    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 October 17, 2002, FinCEN issued a 
notice of proposed rulemaking requiring insurance companies to report 
suspicious transactions (See 67 FR 64067). The final rule (See 70 FR 
66761) can be found at 31 CFR 103.16.
    In the preamble to the notice of proposed rulemaking, FinCEN 
indicated that we would be developing a suspicious activity reporting 
form for insurance companies entitled

[[Page 3671]]

``Suspicious Activity Report by Insurance Companies,'' or ``SAR-IC.'' 
\2\ This action renews the currently approved form which is currently 
on-hold until database technical difficulties are resolved (See 72 FR 
23891). Once resolved, the SAR-IC, FinCEN Form 108, will be released. 
In the interim, insurance companies have been instructed to file using 
the SAR-SF, FinCEN Form 101, which is similar in format and content. 
Renewal of the SAR-SF is currently pending public comment (See 73 FR 
74230).
---------------------------------------------------------------------------

    \2\ See 67 FR 64067-64075.
---------------------------------------------------------------------------

    The information collected on the SAR-IC is required to be provided 
pursuant to 31 U.S.C. 5318(g) and 31 CFR 103.16. 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, terrorist financing, and other financial crimes.
    Reports filed by insurance companies required to report suspicious 
transactions under 31 CFR 103.16, and any reports filed voluntarily by 
other insurance companies 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 interim form to be used by insurance companies may be viewed at 
http://www.fincen.gov/forms/files/fin101_sar-sf.pdf.
    Type of Review: Renewal of a currently approved collection.
    Affected public: Business or other for-profit institutions.
    Frequency: As required.
    Estimated Burden: The average completion time for the form is 1 
hour per response. The recordkeeping average for 31 CFR 103.16 and the 
form is 3 hours per response for a total burden of 4 hours per 
response.
    Estimated number of respondents: 1,200.
    Estimated Total Annual Responses: 3,600.
    Estimated Total Annual Burden Hours: 14,400
    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: January 13, 2009.
James H. Freis, Jr.,
Director, Financial Crimes Enforcement Network.
[FR Doc. E9-1069 Filed 1-16-09; 8:45 am]
BILLING CODE 4810-02-P