Financial Crimes Enforcement Network; Proposed Collection; Comment Request; Suspicious Activity Report by Insurance Companies, 66895-66901 [05-21916]

Agencies

• DEPARTMENT OF THE TREASURY
• Department of Treasury

[Federal Register Volume 70, Number 212 (Thursday, November 3, 2005)]
[Notices]
[Pages 66895-66901]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-21916]



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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.

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SUMMARY: FinCEN invites comment on a proposed information collection 
contained in a new form, ``Suspicious Activity Report by Insurance 
Companies (SAR-IC).'' The form will be used by insurance companies to 
report suspicious activity to the Department of the Treasury. 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 
January 3, 2006.

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 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-Insurance Companies 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: FinCEN's Regulatory Policy and 
Programs Division, Forms Administration at (800) 949-2732.

SUPPLEMENTARY INFORMATION: Title: Suspicious Activity Report by 
Insurance Companies (SAR-IC).
    OMB Number: 1506-00XX.
    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.
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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 (USA PATRIOT Act) Act of 2001 (the 
``USA Patriot Act''), Public Law 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 October 17, 2002, we issued a 
notice of proposed rulemaking requiring insurance companies to report 
suspicious transactions. The final rule can be found at 31 CFR 103.16, 
which also can be found in today's FR.
    In the preamble to the notice of proposed rulemaking, we indicated 
that we would be developing a suspicious activity reporting form for 
insurance companies entitled ``Suspicious Activity Report by Insurance 
Companies,'' or ``SAR-IC.'' \2\
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    \2\ See 67 FR 64067, 64075.
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    The information collected on the new form 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 enclosed draft SAR-IC form is presented only for purposes of 
soliciting public comment on the form. This 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: New information collection.
    Affected public: Business or other for-profit institutions.
    Frequency: As required.
    Estimated Burden: Reporting average of 2 hours per response. This 
burden relates to the completion of the SAR-IC form and the 
recordkeeping burden of 31 CFR 103.16. See 67 FR 64067, 64075.
    Estimated number of respondents: 1,200.
    Estimated Total Annual Responses: 1,200.
    Estimated Total Annual Burden Hours: 2,400.
    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: October 28, 2005.
William J. Fox,
Director, Financial Crimes Enforcement Network.
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[FR Doc. 05-21916 Filed 11-2-05; 8:45 am]
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