Financial Crimes Enforcement Network; Proposed Collection; Comment Request; Suspicious Activity Report by the Securities and Futures Industry, 30514-30522 [05-10503]

Agencies

• DEPARTMENT OF THE TREASURY
• Department of Treasury

[Federal Register Volume 70, Number 101 (Thursday, May 26, 2005)]
[Notices]
[Pages 30514-30522]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-10503]


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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: FinCEN invites comment on a proposed information collection 
contained in a revised form, ``Suspicious Activity Report by the 
Securities and Futures Industry (SAR-SF).'' The form will be used by 
the securities and futures industry to report suspicious activity to 
the Department of the Treasury. This request for comments also covers 
31 CFR 103.17 and 31 CFR 103.19. This request for comments is being 
made pursuant to the Paperwork Reduction Act of 1995, Pub. L. 104-13, 
44 U.S.C. 3506(c)(2)(A).

DATES: Written comments are welcome and must be received on or before 
July 25, 2005.

ADDRESSES: Written comments should be submitted to: Regulatory Policy 
and Programs Division, 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: 
regcomments@fincen.treas.gov, 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: The FinCEN Regulatory Helpline at 800-
949-2732, select option 3.

SUPPLEMENTARY INFORMATION: 
    Title: Suspicious Activity Report by the Securities and Futures 
Industry (SAR-SF), 31 CFR 103.17, and 31 CFR 103.19.
    OMB Number: 1506-0019.
    Form Number: FinCEN Form 101.
    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 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,

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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 Broker-Dealer SAR rule can also 
be found at 31 CFR 103.19. On August 5, 2002, FinCEN issued a final 
rule requiring futures commission merchants and introducing brokers in 
commodities to report suspicious transactions (``FCM SAR rule''). The 
final FCM SAR rule can also be found at 31 CFR 103.17.
    The information collected on the revised form is required to be 
provided pursuant to 31 U.S.C. 5318(g), 31 CFR 103.17 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, 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.
    The draft revised SAR-SF is presented only for purposes of 
soliciting public comment on the form. A number of editorial and 
simplifying changes are being made to the current SAR-SF, FinCEN Form 
101. Item 13, e-mail address, is removed. Item 23(s) (item 22s on the 
revised form), market where traded, is expanded to accept a three to 
five letter code entry. Part III, Law Enforcement or Regulatory Contact 
Information, is deleted and the instructions modified to provide that 
this information should be included in the narrative when appropriate. 
Part IV is relabeled as Part III and an optional block has been added 
for the reporting institution to add an internal control or tracking 
number to facilitate any coordination with jointly filed reports. In 
Part IV (new Part III) the type of institution or individual is spelled 
out for clarity. The guide for completing the narrative is moved to the 
bottom of page two and the narrative to page three. This change 
shortens the form by one full page. Finally, the instructions are 
amended to reflect these changes. In developing the revised form, 
FinCEN worked with the Securities and Exchange Commission and the 
Commodity Futures Trading Commission on these changes. This draft 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: Revision of an approved information collection.
    Affected public: Business or other for-profit institutions.
    Frequency: As required.
    Estimated Reporting Burden: Average of 60 minutes per response. 
(The reporting burden of the regulations (31 CFR 103.17 and 103.19) is 
reflected in the burden for the form.)
    Estimated Recordkeeping Burden for 31 CFR 103.17 or 31 CFR 103.19: 
2 hours.
    Estimated number of respondents = 8,300.
    Estimated Total Annual Responses = 5,600.
    Estimated Total Annual Reporting and Recordkeeping Burden: 16,800 
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 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: May 16, 2005.
William J. Fox,
Director, Financial Crimes Enforcement Network.
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[FR Doc. 05-10503 Filed 5-25-05; 8:45 am]
BILLING CODE 4810-02-C