[Federal Register Volume 80, Number 35 (Monday, February 23, 2015)]
[Notices]
[Pages 9506-9507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-03584]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Proposed Information Collection; Comment Request; Renewal of 
Suspicious Activity Reporting Requirements by Brokers or Dealers in 
Securities and Futures Commission Merchants and Introducing Brokers in 
Commodities.

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

ACTION: Notice and request for comments.

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SUMMARY: FinCEN invites comment on the renewal of an information 
collection requirement for the recordkeeping and reporting of 
suspicious activities by brokers or dealers in securities and futures 
commission merchants (FCMs) and introducing brokers in commodities 
(IBs).\1\ The Bank Secrecy Act Suspicious Activity Report, (``BSAR'') 
\2\ will be used by these entities to report suspicious activity to 
FinCEN. This request for comments also covers 31 CFR 1023.320, relating 
to reports by brokers or dealers in securities of suspicious 
transactions, and 31 CFR 1026.320, reports by futures commission 
merchants and introducing brokers in commodities of suspicious 
transactions. This request for comments is being made pursuant to the 
Paperwork Reduction Act (``PRA'') of 1995, Public Law 104-13, 44 U.S.C. 
3506(c)(2)(A).
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    \1\ The federal functional regulator for the securities industry 
is the U.S. Securities and Exchange Commission (``SEC'') and, for 
the futures industry, it is the Commodity Futures Trading Commission 
(``CFTC'').
    \2\ The BSAR was approved by the Office of Management and Budget 
(``OMB'') under control number 1506-0065. The BSAR is a single 
report that replaced previous individual SAR forms for depository 
institutions, casinos, money services businesses, securities brokers 
or dealers, mutual funds, futures commission merchants, introducing 
brokers in commodities, and insurance companies,

DATES: Written comments are welcome and must be received on or before 
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April 24, 2015.

ADDRESSES: Written comments should be submitted to: Policy Division, 
Financial Crimes Enforcement Network, Department of the Treasury, P.O. 
Box 39, Vienna, Virginia 22183, ``Attention: PRA Comments--SAR 
Requirements-Securities and Futures Industries.'' 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 Requirements-Securities and Futures 
Industry.''
    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 Resource Center at 800-767-
2825 or email [email protected].

SUPPLEMENTARY INFORMATION: The Bank Secrecy Act (``BSA''), Titles I and 
II of Public Law 91-508, as amended, codified at 12 U.S.C. 1829(b), 12 
U.S.C. 1951-1959, and 31 U.S.C. 5311-5332, authorizes the Secretary of 
the Treasury, among other things, 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.\3\
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    \3\ Language expanding the scope of the BSA 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 Act of 2001, Public Law 107-56.
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    Regulations implementing Title II of the BSA appear at 31 CFR 
Chapter X. 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. The authority of the 
Secretary of the Treasury to administer the BSA has been delegated to 
the Director of FinCEN. The final Broker-Dealer SAR rule can be found 
at 31 CFR 1023.320. The final FCM-IB SAR rule can be found at 31 CFR 
1026.320.
    The information collected is required to be provided pursuant to 31 
U.S.C. 5318(g), 31 CFR 1023.320 and 31 CFR 1026.320. This information 
will be made available, in accordance with strict safeguards, to 
appropriate criminal law enforcement and regulatory personnel, and to 
the registered securities and futures associations and national 
exchanges (so-called self-

[[Page 9507]]

regulatory organizations) for use in official performance of their 
duties, for regulatory purposes, and in investigations and proceedings 
involving domestic and international money laundering, terrorist 
financing, tax violations, fraud, and other financial crimes.
    Broker-dealers, futures commission merchants, and introducing 
brokers in commodities required to report suspicious transactions, or 
reporting such transactions voluntarily, will be subject to the 
protection from liability contained in 31 U.S.C. 5318(g)(3) and to the 
prohibition contained in 31 U.S.C. 5318(g)(2) against notifying any 
person involved in the transaction that a suspicious activity report 
has been filed.
    Title: Suspicious Activity Reporting by Brokers or Dealers in 
Securities and Futures Commission Merchants and Introducing Brokers in 
Commodities (31 CFR 1023.320, and 31 CFR 1026.320).
    OMB Number: 1506-0019.
    Abstract: This notice renews the SAR reporting and recordkeeping 
requirements for the above mentioned entities. Additionally, this 
notice updates the title of the information collection under this OMB 
control number to specifically define the entities addressed under this 
number.
    Form Number: FinCEN Form 111 (BSAR).\4\
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    \4\ See footnote 2.
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    Type of Review: Renewal and update of a currently approved 
information collection.
    Affected public: Businesses or other for-profit institutions.
    Frequency: As required.
    Estimated Reporting and Recordkeeping Burden: 1 hour.\5\
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    \5\ The reporting and recordkeeping burden of the regulations 
(31 CFR 1023.320 and 1026.320) is reflected in the burden for the 
BSAR as approved under 1506-0065. This listed burden is assigned to 
maintain control number 1506-0019 active as a reporting requirement 
for 31 CFR 1023.320 and 1026.320.
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    Estimated Number of Respondents: 8,300.
    Estimated Total Annual Responses: 8,300.
    Estimated Total Annual Reporting and Recordkeeping Burden: 8,300 
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 BSA 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 13, 2015.
Jennifer Shasky Calvery,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2015-03584 Filed 2-20-15; 8:45 am]
BILLING CODE 4810-02P-P