[The Regulatory Plan and Unified Agenda of Federal Regulations]
[Department of the Treasury Regulatory Plan]
[From the U.S. Government Printing Office, www.gpo.gov]


DEPARTMENT OF THE TREASURY (TREAS)

Statement of Regulatory Priorities
The primary missions of the Department of the Treasury are: Protecting 
and collecting the revenue under the Internal Revenue Code and customs 
laws; supervising national banks and thrift institutions; managing the 
Community Development Financial Institutions Program and the Bank 
Enterprise Award Program; managing the fiscal operations of the Federal 
Government; enforcing laws relating to counterfeiting, Federal 
Government securities, firearms and explosives, foreign commerce in 
goods and financial instruments, and smuggling and trafficking in 
contraband; protecting the President, Vice President, and certain 
foreign diplomatic personnel; training Federal, State, and local law 
enforcement officers; and producing coins and currency.
Consistent with these missions, most regulations of the Department and 
its constituent bureaus are promulgated to interpret and implement the 
laws as enacted by the Congress and signed by the President. Unless 
circumstances require otherwise, it is the policy of the Department to 
issue a notice of proposed rulemaking (NPRM) and carefully consider 
public comments before adopting final regulations. Also, in particular 
cases the Department invites interested parties to submit views on 
rulemaking projects while the NPRM is being developed, and to hold 
public hearings to discuss a proposed rule.
To the extent permitted by law, it is the policy of the Department to 
adhere to the regulatory philosophy and principles set forth in 
Executive Order 12866 and to develop regulations that maximize 
aggregate net benefits to society while minimizing the economic and 
paperwork burdens imposed on persons and businesses subject to those 
regulations.
Pursuant to the President's regulatory reform initiative, each of the 
Department's regulatory offices and bureaus conducted a thorough page-
by-page review of all of its regulations. As a result of this process, 
which included consultation with regulated entities, the Department 
identified over 2,200 pages of its nontax regulations in the Code of 
Federal Regulations (CFR) that will be streamlined or eliminated. In 
addition, the Internal Revenue Service identified over 1,200 pages of 
CFR regulations and other ruling documents that will be streamlined or 
eliminated. During fiscal year 1996, the Department will accord 
priority to implementing as many of these changes as possible, taking 
into consideration its ongoing regulatory responsibility to issue 
regulations necessary to implement or interpret the laws as enacted by 
the Congress.
Internal Revenue Service
The Internal Revenue Service (IRS), working with the Office of the 
Assistant Secretary (Tax Policy), promulgates regulations that 
interpret and implement the Internal Revenue Code and related tax 
statutes. In developing these regulations, every effort is made to 
carry out the tax policy determined by Congress in a fair, impartial, 
and reasonable manner, taking into account the intent of Congress, the 
realities of relevant transactions, the need for the Government to 
administer the rules and monitor compliance, and the overall integrity 
of the Federal tax system. The goal is to make the regulations 
practical and user-friendly by providing guidance that is as clear and 
simple as possible.
Most IRS regulations interpret tax statutes to resolve ambiguities or 
fill gaps in the tax statutes. This includes interpreting particular 
words, applying rules to broad classes of circumstances, and resolving 
apparent and potential conflicts between various statutory provisions.
During fiscal year 1996, the IRS will accord priority to the following 
regulations:
 Substantiation and Disclosure Requirements for Certain 
            Charitable Contributions. The Omnibus Budget Reconciliation 
            Act (OBRA) of 1993 amended the Internal Revenue Code to 
            require a taxpayer desiring an income tax deduction for a 
            charitable contribution of $250 or more to obtain a written 
            acknowledgment of the contribution from the donee 
            organization containing information not typically provided 
            by donee organizations. In addition, OBRA 1993 amended the 
            Internal Revenue Code to require donee organizations to 
            supply a disclosure statement to the donor when the 
            organization provided goods or services in return for a 
            payment in excess of $75. In fiscal year 1995, proposed 
            regulations were issued providing a number of simplifying 
            and clarifying provisions to facilitate taxpayers' 
            compliance with the new provisions. For example, the 
            proposed regulations provide that certain token items and 
            customary membership benefits that are offered to donors 
            can be disregarded when calculating charitable contribution 
            deductions or preparing acknowledgment and disclosure 
            statements. Final regulations providing additional guidance 
            will be published in fiscal year 1996.
 Mark-to-Market Accounting for Dealers in Securities. OBRA 1993 
            amended the Internal Revenue Code to require dealers in 
            securities to account for their securities by marking them 
            to market. The statutory definitions of the terms 
            ``security'' and ``dealer in securities'' are extremely 
            broad. Preliminary guidance in the form of temporary 
            regulations was provided in 1993. A regulation providing 
            additional guidance will be published in fiscal year 1996.
 Allocation of Interest Expense to U.S. Trade or Business of a 
            Foreign Corporation. Section 882(a) of the Internal Revenue 
            Code imposes a tax on the income of a foreign corporation 
            that is effectively connected with the conduct of a trade 
            or business within the United States (effectively connected 
            income, or ECI). Section 882(c) allows deductions and 
            credits only to the extent that they are connected with 
            ECI, and further provides that the proper allocation and 
            apportionment of deductions shall be determined as provided 
            in regulations. Current regulations prescribe rules for 
            allocating interest expense, using an approach that 
            combines concepts of fungibility of funding and tracing of 
            interest expense. Proposed regulations published in 1992 to 
            replace existing rules better reflect the current economic 
            environment and changes in the law since the original 
            regulations were promulgated. The proposed regulations, 
            among other things, impose a 96 percent cap on a bank's 
            actual debt-to-assets ratio; reduce the elective fixed 
            ratio to 93 percent; and eliminate the separate currency 
            pool method of determining the appropriate interest rate 
            for U.S. liabilities.
 Original Issue Discount; Debt Instruments With Contingent 
            Payments. Sections 1271-1275 of the Internal Revenue Code, 
            added by the Tax Reform Act of 1984, govern the taxation of 
            debt instruments with original issue discount (OID). These 
            sections provide that OID must be currently accrued by both 
            issuers and holders of debt instruments on a constant yield 
            basis, but the rules provided apply only to debt 
            instruments calling for payments of principal and interest 
            that are fixed both as to timing and amount. Section 
            1275(d) of the Internal Revenue Code authorizes the 
            issuance of regulations to address the taxation of OID on 
            debt instruments providing for contingent payments. 
            Proposed regulations issued in December 1994 address this 
            issue; these regulations are expected to be finalized in 
            fiscal year 1996.
 Amortization of Intangible Assets. OBRA 1993 added section 197 
            of the Internal Revenue Code to provide for a 15-year 
            amortization of goodwill and certain other intangible 
            assets. In addition, OBRA 1993 amended section 167 to 
            provide specified amortization periods for certain computer 
            software and mortgage-servicing rights. These provisions 
            are generally effective for intangibles acquired after 
            August 10, 1993. Proposed regulations will be issued to 
            implement these two Code sections and provide guidance to 
            taxpayers on the meaning and scope of certain provisions of 
            the statute and its antichurning rules.
 Withholding Tax Regulations Under Section 1441. Section 1441 
            requires withholding of income tax on most payments of U.S. 
            source income made to foreign persons. New regulations 
            under section 1441 will streamline and modernize the 
            existing regulations by coordinating the domestic reporting 
            and backup withholding provisions and the section 1441 
            withholding requirements. Special provisions for omnibus 
            accounts also will be provided.
Office of the Comptroller of the Currency
The primary mission of the Office of the Comptroller of the Currency 
(OCC) is to ensure a strong, safe-and-sound banking system that 
supports economic growth. The OCC's other goals include promoting bank 
competitiveness, increasing the efficiency of bank supervision 
(including reducing regulatory burden), and ensuring fair and equal 
access to credit. The OCC achieves these goals by regularly examining 
approximately 3,100 national banks with about $2 trillion in assets, 
representing approximately 56 percent of the total assets of commercial 
banks. In addition, the OCC issues rules and regulations that implement 
Federal law governing national banks, as well as taking actions against 
national banks that do not conform to laws and regulations, or that 
engage in unsound banking practices. The OCC also approves or denies 
applications for new national bank charters, branches, capital, or 
other changes in corporate or banking structure.
The OCC's Regulation Review Program, which was instituted in mid-1993, 
comprises a top-to-bottom review of all OCC regulations. This review 
embodies a fundamental rethinking of the OCC's approach to regulation, 
designed to better tailor the rules it imposes to the goals it seeks to 
achieve. The program is part of the agency's overall effort to promote 
the President's Regulatory Reform efforts by creating an environment 
where risk is prudently managed by banks and appropriately monitored by 
their regulator, without imposing unnecessary regulatory burdens that 
undermine the ability of banks to operate efficiently and provide 
credit and other financial products and services to their customers.
The program seeks to ensure that all OCC regulations are focused on 
those activities and products that present the greatest risks to safety 
and soundness, the payments system, or the general economic stability 
of the Nation. Critical elements of the program are to identify and 
eliminate rules that impose burdens on banks that are not necessary to 
maintain bank safety and soundness, to support equitable access to 
banking services for consumers, or to accomplish other statutory 
responsibilities of the OCC. Rules also are being examined to determine 
if they achieve their purpose at the least possible cost to the 
regulated institutions.
The following are some of the OCC's priority Regulation Review Program 
projects for fiscal year 1996:
 Investment Securities: The regulation that prescribes 
            standards under which national banks purchase, sell, deal 
            in, and underwrite investment securities are being 
            substantially revised and rewritten. The revisions will 
            reorganize the rules by placing related subjects together, 
            clarify areas where the rules are unclear, and update 
            various provisions to address market developments and to 
            incorporate significant OCC interpretations, judicial 
            decisions, and amendments to the governing statute.
 Corporate Activities: The OCC has published proposed 
            regulations to revise the rules, policies, and procedures 
            for national bank corporate activities and corporate 
            transactions to make the regulations more user-friendly and 
            to incorporate more flexible supervisory approaches for 
            banks that are healthy and well-managed. The proposed 
            revised rules (a) restructure and update the regulations by 
            incorporating interpretive rulings and significant OCC 
            interpretative positions; (b) establish procedures that 
            will allow certain eligible banks to receive expedited 
            approval of their applications for branches, corporate 
            reorganizations, operating subsidiaries, and office 
            relocations; (c) seek to achieve greater clarity by setting 
            forth the application requirements for various filings and 
            including directions that explain the contents of each 
            section; and (d) recognize the evolution of the ``business 
            of banking'' by introducing new approaches in areas such as 
            operating subsidiaries and branching which provide 
            additional flexibility for national bank activities.
 Interpretive Rulings: The OCC has proposed a revision to its 
            interpretive rulings pertaining to national banks. Under 
            the proposal the rulings are being reorganized and updated 
            to reflect current policies and interpretations and to 
            delete obsolete provisions, and to add new interpretive 
            rulings to address current issues regarding permissible 
            national bank activities.
 Fiduciary Powers and Collective Investment Funds: The 
            regulation pertaining to the exercise of fiduciary powers 
            by national banks is being modified to make less burdensome 
            the requirements regarding the exercise of fiduciary 
            powers, while preserving appropriate protection for trust 
            customers. The review will also consider the manner in 
            which investment advisory services are currently regulated, 
            and whether provisions more tailored to investment advisory 
            functions should be added. The revised regulation will also 
            reflect recent court and administrative decisions relating 
            to, among other things, collective funds for IRA and Keogh 
            accounts.
 Community Development Corporation and Project Investments: The 
            regulation relating to community development corporations 
            and project investments is being revised to conform its 
            standards and procedures to the processes and concepts 
            employed in other OCC regulations. The OCC also is 
            exploring alternatives that would give banks greater 
            flexibility in conducting their community development 
            activities and investments.
 International Banking: The regulations governing the 
            international operations of national banks and the 
            operations of foreign banks through Federal branches and 
            agencies in the United States are being streamlined to 
            reduce compliance costs. The revised regulations will 
            consolidate most of the OCC's regulations relating to 
            international activities into Part 28, to improve clarity. 
            The new regulations also will implement and clarify 
            provisions of the Foreign Bank Supervisory Enhancement Act 
            of 1991 relating to Federal branches and agencies.
 Extensions of Credit to Insiders: The rules limiting 
            extensions of credit to national bank insiders are being 
            reviewed to determine the extent to which burden and 
            complexity can be reduced by achieving greater conformity 
            with the standards in the OCC lending limits regulations.
 Real Estate Lending and Appraisals: The OCC has begun a 
            comprehensive review of its real estate lending and 
            appraisal regulations. The OCC has already published a 
            final rule that relieved unnecessary burdens imposed by the 
            original appraisal rule by raising the threshold loan 
            amount for which appraisals are required, and providing 
            other, prudent exceptions to the appraisal requirements.
Office of Thrift Supervision
As the primary Federal regulator of the thrift industry, the Office of 
Thrift Supervision (OTS) has established regulatory objectives and 
priorities to effectively and efficiently supervise thrift 
institutions. These include maintaining and enhancing the safety and 
soundness of the thrift industry; a flexible, responsive regulatory 
structure that enables savings associations to provide credit and other 
financial services to their communities, particularly housing credit; 
and an approach to supervision that is risk-focused and proactive. 
These objectives and priorities are consistent with those established 
by the President.
Pursuant to section 303(a) of the Community Development and Regulatory 
Improvement Act of 1994 (CDRIA) and the President's regulatory reform 
initiative, the OTS has conducted a page-by-page review of its 
regulations to determine whether each is necessary, imposes the least 
possible burden consistent with safety and soundness, and is written in 
a clear and straightforward manner. As a result of this review, OTS is 
undertaking a five-step process to improve its regulations:
First, the OTS is seeking public comment on a number of potential ways 
the OTS could streamline and restructure its regulations to make them 
more user-friendly.
Second, the OTS is seeking comment on the elimination of a number of 
individual regulations as well as entire parts of the Code of Federal 
Regulations that the agency has identified as outdated or unnecessary.
Third, under the auspices of the Federal Financial Institutions 
Examination Council, the OTS is participating with the other Federal 
banking agencies in implementing section 303(a)(2) of CDRIA by making 
regulations and guidance implementing common statutory provisions and 
supervisory policies more uniform.
Fourth, the OTS has identified and brought to the attention of the 
Congress certain statutory impediments to updating some regulations. 
These include the liquidity regulations required by section 6 of the 
Home Owners' Loan Act (HOLA), the requirement that Federal savings 
associations maintain membership in a Federal Home Loan Bank required 
by HOLA section 5(f), and additional lending flexibility under the 
Qualified Thrift Lender Test required by HOLA section 10(m).
Finally, the OTS will be substantively revising a number of its 
regulations. During fiscal year 1996, the OTS will accord priority to 
developing regulatory proposals to make significant burden-reducing 
changes in a number of key areas of its regulations, including those 
governing lending, subsidiaries, charters and bylaws, insurance, 
preemption, and adjustable-rate mortgages.
In its regulatory plan for fiscal year 1995, the OTS identified as its 
most important significant regulatory action the overall review of its 
regulations implementing the Community Reinvestment Act (CRA). The OTS 
adopted a final rule completing this regulatory reform action and 
revising its CRA regulations on May 4, 1995 (60 FR 22156). This final 
rule emphasizes performance, rather than process, in establishing a 
framework to assess depository institutions' records of helping to meet 
the credit needs of their communities. The rule should promote 
consistency in evaluations, eliminate unnecessary burdens, and reduce 
recordkeeping and reporting requirements.
United States Customs Service
The United States Customs Service is responsible for administering laws 
concerning the importation of goods into the United States. This 
includes inspecting imports, collecting applicable duties, overseeing 
the activities of persons and businesses engaged in importing, and 
enforcing the laws concerning smuggling and trafficking in contraband. 
The regulatory priorities of Customs for fiscal year 1996 are to 
continue to facilitate procedures for legitimate commercial 
transactions and to provide further obstacles to the flow of narcotics 
and other contraband into the United States.
During fiscal year 1995, one of Customs priorities was to issue a 
regulation to permit the Commissioner of Customs to conduct limited 
test programs to implement the National Customs Automation Program 
mandated under the customs modernization provisions of the North 
American Free Trade Agreement Implementation Act (NAFTA). Customs did 
issue that regulation, which enables Customs to ask members of the 
trade community to volunteer and participate in tests that will help 
evaluate alternative approaches to achieving more efficient and 
effective processing of passengers, carriers, and merchandise before 
rulemaking procedures are initiated. Two tests are underway now--one 
relating to remote location filing and another relating to 
reconciliation. Customs plans to conduct more tests this year that will 
assist Customs in modernizing and streamlining the way it does business 
with the trade community.
During fiscal year 1996, Customs plans to undertake several regulatory 
actions that will affect the traveling and importing public, customs 
brokers, carriers, and commercial importers. Customs will be continuing 
the reinvention of its regulatory procedures begun under authority 
granted by NAFTA. Customs reinvention efforts, in accordance with the 
principles of Executive Order 12866, have involved and will continue to 
involve much input from the importing public. During fiscal year 1996, 
Customs will accord priority to several regulatory actions focusing on 
the development of a more automated environment to expedite the entry, 
processing, and release of imported commercial merchandise. These 
regulations will benefit the importing public by facilitating the work 
of Customs officers and the trade community. Among the actions that 
Customs will pursue in this regard, which will improve the efficiency 
of Customs operations, reduce paperwork and administrative costs, are:
 Allowing for paperless procedures regarding extension and 
            suspension of liquidation notices, and generally improving 
            and clarifying the administrative process and simplifying 
            the regulations pertaining to liquidations and extensions 
            and suspensions of liquidation notices.
 Allowing elements of an entry, other than those relating to 
            the admissibility of merchandise, that are undetermined at 
            the time an entry summary or an import activity summary 
            statement is required to be submitted, to be provided to 
            Customs at a later date. This reconciliation process will 
            expedite the release of commercial merchandise.
 Accrediting commercial laboratories to permit them to analyze 
            a wide range of commercial products for Customs purposes. 
            This change will facilitate the release of merchandise 
            because it will enable importers to receive laboratory 
            results earlier.
Also during fiscal year 1996, Customs plans to:
 Develop more uniform rules for determining the country of 
            origin of merchandise under the Customs and related laws 
            (including for-country-of-origin marking and duty 
            assessment purposes) to provide predictability and 
            certainty for Customs and the trade community; and
 Amend its regulations to reflect a reorganization that will 
            make the agency more efficient and responsive to its 
            customers.
Bureau of Alcohol, Tobacco and Firearms
The Bureau of Alcohol, Tobacco and Firearms (ATF) issues regulations to 
enforce the Federal laws relating to the manufacture and commerce of 
alcohol products, tobacco products, firearms, and explosives.
ATF's regulations carry out these missions and are designed to:
 Curb illegal traffic in, and criminal use of, firearms and 
            assist State, local, and other Federal law enforcement 
            agencies in reducing crime and violence;
 Facilitate investigations of violations of Federal explosives 
            laws, including arson-for-profit schemes;
 Regulate the alcohol, tobacco, firearms, and explosives 
            industries, including the issuance of licenses and permits;
 Assure the collection of all alcohol, tobacco, firearms, and 
            ammunition tax revenues and obtain a high level of 
            voluntary compliance with those laws;
 Suppress commercial bribery, consumer deception, and other 
            prohibited practices in the alcoholic beverage industry;
 Suppress the illicit manufacture and sale of alcoholic 
            beverages for which Federal tax has not been paid; and
 Assist the States in their efforts to eliminate interstate 
            trafficking in, and the sale and distribution of, 
            cigarettes in avoidance of State taxes.
In its fiscal year 1995 regulatory plan, ATF accorded priority to 
issuing regulations implementing the provisions of the Brady handgun 
law and adding standards necessary to effectively enforce the exclusion 
provisions of the Federal Alcohol Administration (FAA) Act. Final 
regulations implementing the Brady law were issued on February 27, 1995 
(60 FR 10782); final regulations concerning the exclusion provisions of 
the FAA Act were issued on April 26, 1995 (60 FR 20402).
Pursuant to the President's regulatory reform initiative, ATF conducted 
a page-by-page review of all of its regulations. In addition, ATF 
published a notice in the Federal Register requesting comments from the 
public concerning obsolete, unnecessary, and burdensome regulations. 
Copies of this notice were mailed to 30 trade associations representing 
the alcohol, tobacco, firearms, ammunition, and explosives industries. 
As a result of this process, ATF identified over 650 pages of its 
regulations in the Code of Federal Regulations that it will streamline 
or eliminate. During fiscal year 1996, ATF will accord priority to 
making as many of these changes as possible. For example, ATF expects 
to replace the alcoholic beverage label and formula approval system 
with a simplified registration system, to streamline the registration 
and operational activity requirements for small breweries (brewpubs), 
and to reduce the administrative burdens associated with the current 
basic permit application process for producers, wholesalers, and 
importers of alcoholic beverages.
ATF is also according priority during fiscal year 1996 to issuing a 
final rule implementing Public Law 103-322, the Violent Crime Control 
and Law Enforcement Act of 1994. This project is described below, as 
RIN 1512-AB35.
Financial Management Service
Regulations of the Financial Management Service (FMS) are promulgated 
to implement its mission of improving the quality of government 
financial management by linking program and financial management 
objectives, and by providing financial services, information, advice, 
and assistance. The FMS serves taxpayers, the Treasury Department, 
Federal program agencies, and government policymakers.
FMS's regulatory objectives for fiscal year 1996 include integrating 
new technologies to process Federal payments and collections more 
efficiently. The FMS plans to implement an Electronic Federal Tax 
Payment System in April 1996. This system will eliminate paper 
processing. Concurrent with this effort, the FMS plans to revise the 
Government's Automated Clearinghouse (ACH) standards to meet the needs 
of the new tax payment system. These changes will speed the flow of 
funds to the Treasury and ease the regulatory burden on private 
industry. These initiatives relate to the President's goals of 
improving technology to streamline financial services, and of using 
electronic funds transfers where possible.
Bureau of the Public Debt
The Bureau of the Public Debt administers regulations governing 
transactions in government securities effected by government securities 
brokers and dealers to fulfill the Treasury's statutory responsibility 
to safeguard the efficient functioning of the government securities 
market.
The Government Securities Act of 1986 (GSA), as amended, authorizes the 
Secretary of the Treasury to prescribe rules governing financial 
responsibility, the protection of customer funds and securities, and 
recordkeeping and reporting for all government securities brokers and 
dealers, including financial institutions. These rules are designed to 
prevent fraudulent and manipulative acts and practices and to protect 
the integrity, efficiency, and liquidity of the government securities 
market. The Department is committed to implementing rules that make 
sense from both a regulatory and market efficiency perspective. 
Accordingly, pursuant to Executive Order 12866, the Department seeks to 
balance the benefits of regulation with the compliance costs imposed on 
the government securities market and its participants.
The GSA regulations establish a consistent regulatory approach for all 
government securities brokers and dealers, including both securities 
firms and financial institutions, in a manner which minimizes the 
creation of any competitive advantages for any class of firm. 
Consistent with the principles in Executive Order 12866 and regulatory 
reform initiatives, regulations are only developed after actively 
involving market participants in the rulemaking process and fully 
considering existing regulations applicable to various broker/dealers, 
including financial institutions. The regulations are designed to 
minimize burdens and duplication or overlap with existing regulations. 
To help meet this objective, the Treasury actively consults with other 
regulatory organizations, including the Securities and Exchange 
Commission (SEC) and the bank regulators, to better coordinate its 
activities in securities regulation.
During fiscal year 1996, priority will be accorded to the following 
regulation:
 Holders of Large Positions in Treasury Securities. This 
            regulation will establish recordkeeping and reporting 
            requirements for holders of large positions in specific 
            Treasury securities. The objectives of the regulation are 
            to identify and monitor concentrations of ownership in 
            Treasury securities, to assist regulators in conducting 
            market surveillance, and to help the SEC carry out its 
            enforcement duties under the Federal securities laws. This 
            regulation will be promulgated under authority granted the 
            Treasury in the Government Securities Act Amendments of 
            1993.
Financial Crimes Enforcement Network
The regulations of the Financial Crimes Enforcement Network (FinCEN) 
constitute the core of Treasury's anti-money-laundering initiative and 
are an essential component of Treasury's law enforcement and 
antinarcotics efforts. The Bank Secrecy Act (BSA) authorizes the 
Secretary of the Treasury to issue regulations requiring financial 
institutions to keep records and file reports that are determined to 
have a high degree of usefulness in criminal, tax, or regulatory 
proceedings, and to implement counter-money-laundering programs and 
compliance procedures.
Since mid-1994, FinCEN has been engaged in a thorough review of its 
regulatory policies and has been building a partnership between 
Government and the financial sector to fight money-laundering. The 
keystone of that partnership is the recognition that only a cooperative 
relationship between Government and industry can provide a way to 
implement a three-pronged strategy of prevention, detection, and 
enforcement against those who truly seek to use the financial system to 
promote or further illegal activity. FinCEN recognizes that BSA 
compliance imposes costs on the financial community, and that it should 
only require recordkeeping and reporting when the benefits to the 
Government are clear. In the coming year, FinCEN will continue to 
review and revise its existing regulations. In all cases, FinCEN will 
continue to work with the financial community to reduce administrative 
burdens associated with complying with the statutes while enhancing the 
usefulness of BSA information for law enforcement, financial 
regulators, and policymakers.
During fiscal year 1995, FinCEN completed a number of important 
regulatory projects, including the following:
 Simplified Cash Transaction Report (CTR) Form. As part of the 
            general effort to reduce reporting burdens and emphasize 
            the reporting of suspicious transactions, FinCEN developed 
            and introduced a new CTR form, which became effective 
            October 1, 1995.
 Casino Recordkeeping Rules. After extensive consultations with 
            the industry, FinCEN issued final recordkeeping rules for 
            casinos that were significantly less burdensome than the 
            rules originally proposed.
 Funds Transfer Regulations. FinCEN, both independently and 
            jointly with the Board of Governors of the Federal Reserve 
            System, published in early 1995 final rules relating to 
            recordkeeping for funds transfers. FinCEN will accord 
            priority to revising certain aspects of these regulations 
            during fiscal year 1996 (see below).
During fiscal year 1995, FinCEN also withdrew as unnecessary proposed 
regulations (a) regarding the mandatory aggregation of currency 
transactions and the filing of CTRs by magnetic media, and (b) 
requiring that financial institutions verify and record identifying 
information about purchasers of certain monetary instruments valued at 
$3,000 or more.
During fiscal year 1996, FinCEN is initiating a general revision and 
simplification of all of its regulations, and will also accord priority 
to the following projects:
 Funds Transfer Regulations. In response to concerns raised by 
            the banking industry, FinCEN expects to finalize amendments 
            to its funds transfer regulations.
 Indian Gaming. FinCEN will issue final regulations governing 
            reporting and recordkeeping by tribal casinos, implementing 
            a 1994 amendment to the BSA. This project is one step in a 
            general effort to unify and simplify the application of the 
            Bank Secrecy Act to gaming establishments.
 Suspicious Transaction Reports. FinCEN will issue final 
            regulations concerning suspicious transaction reporting by 
            banks. A similar regulation concerning nonbank financial 
            institutions will also be issued. The new reporting system 
            will greatly reduce the burdens on the financial industry.
 Exemptions from CTR Requirements. As required by legislation 
            enacted in 1994, FinCEN will seek to reduce the number of 
            CTRs required to be filed by 30 percent. FinCEN expects to 
            exempt many transactions from the CTR filing requirement, 
            including those between banks, between banks and Government 
            entities, and between banks and certain businesses.
Community Development Financial Institutions Fund
The Community Development Financial Institutions Fund was established 
by the Community Development Banking and Financial Institutions Act of 
1994 (12 U.S.C. 4701 et seq.) The primary purpose of the Fund is to 
provide investments in and assistance to community development 
financial institutions (CDFIs), principally through the CDFI Program. 
The Fund also administers the Bank Enterprise Award (BEA) Program, 
which encourages insured depository institutions to engage in certain 
eligible development activities and to make equity investments in 
CDFIs. The Fund's regulatory priorities for fiscal year 1996 are to 
issue a temporary regulation for public comment in October 1995 in 
order to immediately conduct an initial round of funding for the CDFI 
and BEA Programs, and to finalize these regulations in May 1996. This 
project is described below (RIN 1505-AA71).
_______________________________________________________________________
TREAS--Departmental Offices (DO)

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                            FINAL RULE STAGE

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96.  COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM; BANK 
ENTERPRISE AWARD PROGRAM REGULATIONS
Priority:


Other Significant


Legal Authority:


 12 USC 4703; 12 USC 4713; PL 104-19; 42 USC 4332


CFR Citation:


 12 CFR 1805 (New); 12 CFR 1806 (New); 12 CFR 1815 (New)


Legal Deadline:


None


Abstract:


Not applicable; any costs and benefits associated with this rule are 
derived from the CDFI and BEA provisions of the Community Development 
Banking and Financial Institutions Act of 1994 as enacted by the 
Congress.


Statement of Need:


The Department of the Treasury is issuing a temporary rule for public 
comment to implement two new programs that will be administered by the 
Community Development Financial Institutions (CDFI) Fund: the CDFI 
Program and the Bank Enterprise Award (BEA) Program. These programs 
were authorized by the Community Development Banking and Financial 
Institutions Act of 1994. The CDFI Program will provide financial and 
technical assistance to selected applicants in order to enhance their 
ability to make loans and investments and provide services for the 
benefit of designated investment areas and targeted populations. The 
purpose of the BEA Program is to encourage insured depository 
institutions to engage in certain eligible development activities 
within distressed communities and to make equity investments in CDFIs. 
The regulations establish eligibility criteria and application 
procedures for financial assistance through these programs. The 
regulations also establish the appropriate environmental review 
procedures for these two programs.


Summary of the Legal Basis:


Section 119 of the Community Development Banking and Financial 
Institutions Act of 1994 requires the promulgation of regulations to 
carry out the CDFI and BEA programs.


Alternatives:


Not applicable; this regulation merely implements the CDFI and BEA 
provisions of the Community Development Banking and Financial 
Institutions Act of 1994 as enacted by the Congress.


Anticipated Costs and Benefits:


Not applicable; any costs and benefits associated with this rule are 
derived from the CDFI and BEA provisions of the Community Development 
Banking and Financial Institutions Act of 1994 as enacted by the 
Congress.


Risks:


Not applicable.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
Interim Final Rule Comment Period End                          01/15/95
Interim Final Ru60 FR 54110                                    10/19/95
Final Action                                                   03/00/96
Small Entities Affected:


None


Government Levels Affected:


None


Agency Contact:
Jeannine Jacokes
Interim Coordinator
Department of the Treasury
CDFI Fund
1500 Pennsylvania Avenue NW., Room 5116
Washington, DC 20220
Phone: 202 622-8232
Fax: 202 622-7754
RIN: 1505-AA71
_______________________________________________________________________
TREAS--Bureau of Alcohol, Tobacco and Firearms (BATF)

                              -----------

                            FINAL RULE STAGE

                              -----------

97. IMPLEMENTATION OF PUBLIC LAW 103-322, THE VIOLENT CRIME CONTROL AND 
LAW ENFORCEMENT ACT OF 1994
Priority:


Other Significant


Legal Authority:


 5 USC 522(a); 18 USC 847; 18 USC 921 to 930; 18 USC 1261; 19 USC 1607; 
19 USC 1610; 19 USC 1612 to 1613; 19 USC 1618; 26 USC 7101; 26 USC 7322 
to 7326; 31 USC 9301; 31 USC 9303 to 9304; 31 USC 9306; 40 USC 304(k); 
44 USC 3504(h); ...


CFR Citation:


 27 CFR 55; 27 CFR 72; 27 CFR 178; 27 CFR 179


Legal Deadline:


None


Abstract:


The Bureau of Alcohol, Tobacco, and Firearms (ATF) is issuing this 
temporary rule to implement the provisions of Public Law 103-322, the 
Violent Crime Control and Law Enforcement Act of 1994, enacted 
September 13, 1994. These regulations implement the law by restricting 
the manufacture, transfer, and possession of certain semiautomatic 
assault weapons and large-capacity ammunition feeding devices. 
Regulations are also prescribed with regard to reports of theft or loss 
of firearms from a licensee's inventory or collection, new requirements 
for Federal firearms licensing, responses by firearms licensees to 
requests for gun trace information, possession of firearms by persons 
subject to restraining orders, and possession of a handgun, or 
ammunition for a handgun, by juveniles.


Statement of Need:


Issuance of this regulation is necessary to implement the provisions of 
the Violent Crime Control and Law Enforcement Act of 1994, and ATF 
issued a temporary rule and a cross-reference notice of proposed 
rulemaking in April 1995. The temporary rule implements this law by 
restricting the manufacture, transfer, and possession of certain 
semiautomatic assault weapons and large-capacity ammunition-feeding 
devices. The regulation also concerns reports of the theft or loss of 
firearms from a licensee's inventory or collection; new requirements 
for Federal firearms licensing; responses by firearms licensees to 
requests for gun trace information; possession of firearms by persons 
subject to restraining orders; and possession of a handgun, or 
ammunition for a handgun, by juveniles. AFT expects to issue a final 
rule in early 1996.


Summary of the Legal Basis:


The Violent Crime Control and Law Enforcement Act of 1994 amended the 
Gun Control Act of 1968 (GCA) by prohibiting the manufacture, transfer 
and possession of semiautomatic assault weapons (with certain 
exceptions). The 1994 Act also amended the GCA to make it unlawful to 
transfer or possess large capacity ammunition-feeding devices, as well 
as the possession of firearms by certain persons.


Alternatives:


Not applicable; no alternatives are possible because this regulation 
merely implements the provisions of the Violent Crime Control and Law 
Enforcement Act of 1994 as enacted by the Congress.


Anticipated Costs and Benefits:


Not applicable; any costs and benefits associated with this rule are 
derived from the Violent Crime Control and Law Enforcement Act of the 
1994 as enacted by the Congress.


Risks:


Not applicable.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM            60 FR 17494                                    04/06/95
Interim Final Ru60 FR 17446                                    04/06/95
NPRM Comment Period End                                        07/05/95
Final Action                                                   01/00/96
Small Entities Affected:


None


Government Levels Affected:


None


Agency Contact:
James Ficaretta
Coordinator
Department of the Treasury
Bureau of Alcohol, Tobacco and Firearms
650 Massachusetts Avenue NW.
Washington, DC 20226
Phone: 202 927-8230
Fax: 202 927-8602
RIN: 1512-AB35
BILLING CODE 4810-25-F