Financial Crimes Enforcement Network; Amendment to the Bank Secrecy Act Regulations; Defining Mutual Funds as Financial Institutions; Extension of Compliance Date, 63382-63383 [2010-25886]
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63382
Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Rules and Regulations
Issued in Washington, DC, on this 12th day
of October 2010.
Vincent K. Snowbarger,
Deputy Director for Operations, Pension
Benefit Guaranty Corporation.
[FR Doc. 2010–26081 Filed 10–14–10; 8:45 am]
BILLING CODE 7709–01–P
DEPARTMENT OF THE TREASURY
31 CFR Part 103
RIN 1506–AA93
Financial Crimes Enforcement
Network; Amendment to the Bank
Secrecy Act Regulations; Defining
Mutual Funds as Financial Institutions;
Extension of Compliance Date
Financial Crimes Enforcement
Network (‘‘FinCEN’’), Treasury.
ACTION: Final rule; extension of
compliance date.
AGENCY:
FinCEN is issuing this final
rule extending the compliance date for
those provisions in 31 CFR 103.33 that
apply to mutual funds. On April 14,
2010, FinCEN issued a final rule that
included mutual funds within the
general definition of ‘‘financial
institution’’ in regulations implementing
the Bank Secrecy Act (‘‘BSA’’). The final
rule subjects mutual funds to 31 CFR
103.33, which requires the creation,
retention, and transmittal of records or
information for transmittals of funds.
FinCEN is extending, from January 10,
2011 to April 10, 2011, the date on
which mutual funds must begin to
comply with 31 CFR 103.33.
DATES: This final rule is effective on
October 15, 2010. The compliance date
for 31 CFR 103.33 is extended from
January 10, 2011 to April 10, 2011.
FOR FURTHER INFORMATION CONTACT: The
FinCEN regulatory helpline at (800)
949–2732.
SUPPLEMENTARY INFORMATION:
SUMMARY:
mstockstill on DSKH9S0YB1PROD with RULES
I. Background
On April 14, 2010, FinCEN published
a final rule 1 to include mutual funds
within the general definition of
‘‘financial institution’’ in regulations
implementing the BSA (the ‘‘Final
Rule’’).2 The Final Rule subjects mutual
funds to rules under the BSA on the
filing of Currency Transaction Reports
(‘‘CTRs’’) and on the creation, retention,
1 Amendments to the Bank Secrecy Act
Regulations; Defining Mutual Funds as Financial
Institutions, 75 FR 19241 (April 14, 2010).
2 See 31 CFR 103.11(n)(10) (general definition of
‘‘financial institution’’). The BSA is codified in part
at 31 U.S.C. 5311 et seq. Rules implementing the
BSA are codified at 31 CFR part 103.
VerDate Mar<15>2010
15:58 Oct 14, 2010
Jkt 223001
and transmittal of records or
information for transmittals of funds.
Additionally, the Final Rule amends the
definition of mutual fund in the rule
requiring mutual funds to establish antimoney laundering (‘‘AML’’) programs.
The amendment harmonizes the
definition of mutual fund in the AML
program rule with the definitions found
in the other BSA rules to which mutual
funds are subject. Finally, the Final Rule
amends the rule that delegates authority
to examine institutions for compliance
with the BSA. The amendment makes it
clear that FinCEN has not delegated to
the Internal Revenue Service the
authority to examine mutual funds for
compliance with the BSA, but rather to
the U.S. Securities and Exchange
Commission as the Federal functional
regulator of mutual funds.
Section 103.33—The Recordkeeping
and Travel Rule and Related
Recordkeeping Requirements
The Final Rule subjects mutual funds
to requirements relating to the creation
and retention of records for transmittals
of funds, and the requirement to
transmit information on these
transactions to other financial
institutions in the payment chain
(‘‘Recordkeeping and Travel Rule’’).3
The Recordkeeping and Travel Rule
applies to transmittals of funds in
amounts that equal or exceed $3,000,4
and requires the transmittor’s financial
institution to obtain and retain name,
address, and other information on the
transmittor and the transaction.5
Furthermore, the Recordkeeping and
Travel Rule requires the recipient’s
financial institution—and in certain
instances, the transmittor’s financial
institution—to obtain or retain
identifying information on the
recipient.6 The Recordkeeping and
Travel Rule requires that certain
information obtained or retained by the
transmittor’s financial institution
3 See 31 CFR 103.33(f) and (g). Financial
institutions must retain records for a period of five
years. 31 CFR103.38(d).
4 Rules under the BSA define a ‘‘transmittal of
funds’’ and the persons or institutions involved in
a ‘‘transmittal of funds.’’ See 31 CFR 103.11(d), (e),
(q), (r), (s), (v), (w), (cc), (dd), (jj), (kk), (ll), and
(mm). A ‘‘transmittal of funds’’ includes funds
transfers processed by banks, as well as similar
payments where one or more of the financial
institutions processing the payment is not a bank.
If the mutual fund is processing a payment sent by
or to its customer, then the mutual fund would be
either the ‘‘transmittor’s financial institution’’ or the
‘‘recipient’s financial institution.’’
5 See 31 CFR 103.33(f)(1)(i) and (f)(2).
6 See 31 CFR 103.33(f)(3) (information that the
recipient’s financial institution must obtain or
retain).
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
‘‘travel’’ with the transmittal order
through the payment chain.7
Mutual funds are subject to record
retention requirements under the
Investment Company Act of 1940, and
mutual fund transfer agents are subject
to recordkeeping requirements under
the Securities Exchange Act of 1934.8 In
light of these existing regulatory
obligations, FinCEN stated in the notice
of proposed rulemaking that the
requirements of 31 CFR 103.33 and 31
CFR 103.38 would have a de minimus
impact on mutual funds and their
transfer agents.9 Furthermore, rules
under the BSA on the establishment of
customer identification programs by
mutual funds and on the reporting by
mutual funds of suspicious transactions
impose requirements to create and
retain records.10
FinCEN also requested comment on
the anticipated impact of subjecting
mutual funds to the requirements of the
Recordkeeping and Travel Rule. All
three commenters noted that subjecting
mutual funds to the requirements of the
Recordkeeping and Travel Rule will
require mutual funds to implement
changes to their transaction processing
and recordkeeping systems. All
commenters requested additional time
to comply with the Recordkeeping and
Travel Rule. Commenters stated that
such an extension would provide
mutual funds with an opportunity to
implement changes to their transaction
reporting and recordkeeping systems.
Generally, commenters suggested an
extension of between 18 to 24 months.
FinCEN determined that extending the
compliance date with respect to the
requirements of the Recordkeeping and
Travel Rule to 270 days after the rule
7 See 31 CFR 103.33(g) (information that must
‘‘travel’’ with the transmittal order); 31 CFR
103.11(kk) (defining ‘‘transmittal order’’).
Additionally, the Final Rule includes mutual funds
within an existing exception designed to exclude
from the Recordkeeping and Travel Rule’s coverage
funds transfers or transmittal of funds in which
certain categories of financial institution are the
transmittor, originator, recipient, or beneficiary. See
31 CFR 103.33(e)(6)(i) and 31 CFR 103.33(f)(6)(i).
Further, the Final Rule subjects mutual funds to
requirements on the creation and retention of
records for extensions of credit and cross-border
transfers of currency, monetary instruments,
checks, investment securities, and credit. See 31
CFR 103.33(a)–(c). Financial institutions must
retain these records for a period of five years. 31
CFR 103.38(d).
8 See, e.g., 15 U.S.C. 80a–30 (mutual funds); 15
U.S.C. 78q(a)(3) (transfer agents).
9 Amendment to Bank Secrecy Act Regulations;
Defining Mutual Funds as Financial Institutions, 74
FR 26996, 26998 (June 5, 2009).
10 See 31 CFR 103.131 (mutual funds must obtain
and record identifying information for persons
opening new accounts, and verify the identity of
persons opening new accounts); 31 CFR 103.15(c)
(mutual funds must maintain records of
documentation that supports the filing of a SAR).
E:\FR\FM\15OCR1.SGM
15OCR1
Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Rules and Regulations
was published in the Federal Register
(January 10, 2011) was appropriate.
On July 13, 2010, the Investment
Company Institute (‘‘ICI’’) 11 submitted a
letter stating that it will be difficult for
its members to comply with the
Recordkeeping and Travel Rule by
January 10, 2011. Due to unique
industry end-of-year systems issues,12 as
well as systems changes necessitated by
other new regulatory requirements,13
the ICI has requested a three month
extension of the date by which mutual
funds are required to comply with the
requirements of the Recordkeeping and
Travel Rule.
II. Extension of Compliance Date for the
Recordkeeping and Travel Rule
mstockstill on DSKH9S0YB1PROD with RULES
FinCEN believes that it is appropriate
to extend the date by which mutual
funds must comply with the
Recordkeeping and Travel Rule.
Therefore, mutual funds now will have
until April 10, 2011 to comply with 31
CFR 103.33. We do not anticipate
granting a further extension beyond
April 10, 2011 and expect that mutual
funds thereafter will have adequate
processes in place to comply with the
Recordkeeping and Travel Rule.
11 The ICI is an association of U.S. investment
companies, including mutual funds, closed-end
funds, exchange-traded funds (ETFs), and unit
investment trusts (UITs). Members of ICI manage
total assets of $11.42 trillion and serve 90 million
shareholders.
12 According to the ICI, most mutual funds and
transfer agents refrain from implementing material
modifications or enhancements to their transaction
processing and recordkeeping systems for varying
periods beginning in early December (generally
referred to as a ‘‘freeze’’) to ensure that the systems
are capable of handling the large number of endof-year fund and shareholder transactions, as well
as the preparation of year-end account statements
and tax reporting information. Because the January
10, 2011 compliance date falls within the period
when mutual fund transaction processing and
recordkeeping systems are frozen, mutual funds
will need to come into compliance with the
Recordkeeping and Travel Rule by the middle of
November 2010—before the systems are frozen. A
three-month extension of the compliance date
would allow mutual funds sufficient time to come
into compliance with the Recordkeeping and Travel
Rule without disrupting the year-end operations
and reporting functions.
13 According to the ICI, mutual fund transfer
agents are currently redesigning their systems in
order to comply with new cost basis reporting
requirements, which entail significant operational
and technological changes to allow funds to
capture, report, and transfer required tax
information, such as when shareholders transfer
their accounts (see Basis Reporting by Securities
Brokers and Basis Determination for Stock, 74 FR
67010 (Dec. 17, 2009)). In addition, mutual funds
and their transfer agents are updating their systems
to comply with a new requirement that money
market mutual funds and their transfer agents be
able to process purchases and redemptions
electronically at a price other than $1.00 per share
(see Money Market Fund Reform, SEC Release No.
IC–29132 (Jan. 27, 2010)).
VerDate Mar<15>2010
15:58 Oct 14, 2010
Jkt 223001
III. Proposed Location in Chapter X
As discussed in a previous Federal
Register Notice, 73 FR 66414, Nov. 7,
2008, FinCEN is separately proposing to
remove Part 103 of Chapter I of Title 31,
Code of Federal Regulations, and add
Parts 1000 to 1099 (Chapter X). If the
notice of proposed rulemaking for
Chapter X is finalized, the changes in
the present rule would be reorganized
according to the proposed Chapter X.
The planned reorganization will have
no substantive effect on the regulatory
changes herein. The regulatory changes
of this specific rulemaking would be
renumbered according to the proposed
Chapter X as follows: § 103.33 would be
moved to § 1010.410.
IV. Notice and Comment Under the
Administrative Procedure Act
FinCEN for good cause finds that, for
the reasons cited above, including the
brief length of the extension we are
granting, notice and solicitation of
comment regarding the extension of the
compliance date are impracticable,
unnecessary and contrary to the public
interest. In this regard, FinCEN notes
that mutual funds need to be informed
as soon as possible of the extension and
its length in order to plan and adjust
their implementation processes
accordingly.14
Dated: October 6, 2010.
James H. Freis, Jr.,
Director, Financial Crimes Enforcement
Network.
[FR Doc. 2010–25886 Filed 10–14–10; 8:45 am]
BILLING CODE 4810–02–P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 199
[DOD–2008–HA–0029]
RIN 0720–AB45
Civilian Health and Medical Program of
the Uniformed Services (CHAMPUS)/
TRICARE: Inclusion of TRICARE Retail
Pharmacy Program in Federal
Procurement of Pharmaceuticals
Office of the Secretary,
Department of Defense (DoD).
AGENCY:
14 See 5 U.S.C. 553(b)(3)(B) (an agency may
dispense without prior notice and comment when
it finds, for good cause, that notice and comment
are ‘‘impracticable, unnecessary, and contrary to the
public interest’’). The change to the compliance date
is effective upon publication in the Federal
Register. The Administrative Procedure Act allows
effective dates less than 30 days after publication
in the Federal Register for ‘‘a substantive rule
which grants or recognizes an exemption or relieves
a restriction.’’ See 5 U.S.C. 553(d)(1).
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
ACTION:
63383
Final rule.
Section 703 of the National
Defense Authorization Act for Fiscal
Year 2008 (NDAA–08) states with
respect to any prescription filled on or
after the date of enactment, the
TRICARE Retail Pharmacy Program
shall be treated as an element of the
DoD for purposes of procurement of
drugs by Federal agencies under section
8126 of title 38, United States Code
(U.S.C.), to the extent necessary to
ensure pharmaceuticals paid for by the
DoD that are provided by network retail
pharmacies under the program to
eligible covered beneficiaries are subject
to the pricing standards in such section
8126. DoD issued a final rule on March
17, 2009, implementing the law. On
November 30, 2009, the U.S. District
Court for the District of Columbia
remanded the final rule to DoD (without
vacating the rule) for DoD to consider in
its discretion whether to readopt the
current iteration of the rule or adopt
another approach. This final rule is the
product of that reconsideration. DoD is
readopting the 2009 final rule, with
some revision.
DATES: This final rule is effective
December 27, 2010.
FOR FURTHER INFORMATION CONTACT: Rear
Admiral Thomas McGinnis, Chief,
Pharmacy Operations Directorate,
TRICARE Management Activity,
telephone 703–681–2890.
SUPPLEMENTARY INFORMATION:
SUMMARY:
A. Background
Section 703 of the National Defense
Authorization Act for Fiscal Year 2008
(NDAA–08) (Pub. L. 110–181) enacted
10 U.S.C. 1074g(f). It provides that with
respect to any prescription filled on or
after the date of enactment (January 28,
2008), the TRICARE Retail Pharmacy
Program shall be treated as an element
of DoD for purposes of the procurement
of drugs by Federal agencies under 38
U.S.C. 8126 to the extent necessary to
ensure pharmaceuticals paid for by DoD
that are provided by network retail
pharmacies to TRICARE beneficiaries
are subject to Federal Ceiling Prices
(FCPs). This section 8126 established
FCPs for covered drugs (requiring a
minimum 24% discount) procured by
DoD and three other agencies from
manufacturers. The NDAA required
implementing regulations.
DoD issued a proposed rule July 25,
2008 (73 FR 43394–97) and a final rule
March 17, 2009 (74 FR 11279–93).
Among other things, the preamble to the
final rule stated that DoD interpreted the
statute as automatically capping the
price manufacturers may get paid for
E:\FR\FM\15OCR1.SGM
15OCR1
]]>Agencies
[Federal Register Volume 75, Number 199 (Friday, October 15, 2010)]
[Rules and Regulations]
[Pages 63382-63383]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-25886]
=======================================================================
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DEPARTMENT OF THE TREASURY
31 CFR Part 103
RIN 1506-AA93
Financial Crimes Enforcement Network; Amendment to the Bank
Secrecy Act Regulations; Defining Mutual Funds as Financial
Institutions; Extension of Compliance Date
AGENCY: Financial Crimes Enforcement Network (``FinCEN''), Treasury.
ACTION: Final rule; extension of compliance date.
-----------------------------------------------------------------------
SUMMARY: FinCEN is issuing this final rule extending the compliance
date for those provisions in 31 CFR 103.33 that apply to mutual funds.
On April 14, 2010, FinCEN issued a final rule that included mutual
funds within the general definition of ``financial institution'' in
regulations implementing the Bank Secrecy Act (``BSA''). The final rule
subjects mutual funds to 31 CFR 103.33, which requires the creation,
retention, and transmittal of records or information for transmittals
of funds. FinCEN is extending, from January 10, 2011 to April 10, 2011,
the date on which mutual funds must begin to comply with 31 CFR 103.33.
DATES: This final rule is effective on October 15, 2010. The compliance
date for 31 CFR 103.33 is extended from January 10, 2011 to April 10,
2011.
FOR FURTHER INFORMATION CONTACT: The FinCEN regulatory helpline at
(800) 949-2732.
SUPPLEMENTARY INFORMATION:
I. Background
On April 14, 2010, FinCEN published a final rule \1\ to include
mutual funds within the general definition of ``financial institution''
in regulations implementing the BSA (the ``Final Rule'').\2\ The Final
Rule subjects mutual funds to rules under the BSA on the filing of
Currency Transaction Reports (``CTRs'') and on the creation, retention,
and transmittal of records or information for transmittals of funds.
Additionally, the Final Rule amends the definition of mutual fund in
the rule requiring mutual funds to establish anti-money laundering
(``AML'') programs. The amendment harmonizes the definition of mutual
fund in the AML program rule with the definitions found in the other
BSA rules to which mutual funds are subject. Finally, the Final Rule
amends the rule that delegates authority to examine institutions for
compliance with the BSA. The amendment makes it clear that FinCEN has
not delegated to the Internal Revenue Service the authority to examine
mutual funds for compliance with the BSA, but rather to the U.S.
Securities and Exchange Commission as the Federal functional regulator
of mutual funds.
---------------------------------------------------------------------------
\1\ Amendments to the Bank Secrecy Act Regulations; Defining
Mutual Funds as Financial Institutions, 75 FR 19241 (April 14,
2010).
\2\ See 31 CFR 103.11(n)(10) (general definition of ``financial
institution''). The BSA is codified in part at 31 U.S.C. 5311 et
seq. Rules implementing the BSA are codified at 31 CFR part 103.
---------------------------------------------------------------------------
Section 103.33--The Recordkeeping and Travel Rule and Related
Recordkeeping Requirements
The Final Rule subjects mutual funds to requirements relating to
the creation and retention of records for transmittals of funds, and
the requirement to transmit information on these transactions to other
financial institutions in the payment chain (``Recordkeeping and Travel
Rule'').\3\ The Recordkeeping and Travel Rule applies to transmittals
of funds in amounts that equal or exceed $3,000,\4\ and requires the
transmittor's financial institution to obtain and retain name, address,
and other information on the transmittor and the transaction.\5\
Furthermore, the Recordkeeping and Travel Rule requires the recipient's
financial institution--and in certain instances, the transmittor's
financial institution--to obtain or retain identifying information on
the recipient.\6\ The Recordkeeping and Travel Rule requires that
certain information obtained or retained by the transmittor's financial
institution ``travel'' with the transmittal order through the payment
chain.\7\
---------------------------------------------------------------------------
\3\ See 31 CFR 103.33(f) and (g). Financial institutions must
retain records for a period of five years. 31 CFR103.38(d).
\4\ Rules under the BSA define a ``transmittal of funds'' and
the persons or institutions involved in a ``transmittal of funds.''
See 31 CFR 103.11(d), (e), (q), (r), (s), (v), (w), (cc), (dd),
(jj), (kk), (ll), and (mm). A ``transmittal of funds'' includes
funds transfers processed by banks, as well as similar payments
where one or more of the financial institutions processing the
payment is not a bank. If the mutual fund is processing a payment
sent by or to its customer, then the mutual fund would be either the
``transmittor's financial institution'' or the ``recipient's
financial institution.''
\5\ See 31 CFR 103.33(f)(1)(i) and (f)(2).
\6\ See 31 CFR 103.33(f)(3) (information that the recipient's
financial institution must obtain or retain).
\7\ See 31 CFR 103.33(g) (information that must ``travel'' with
the transmittal order); 31 CFR 103.11(kk) (defining ``transmittal
order''). Additionally, the Final Rule includes mutual funds within
an existing exception designed to exclude from the Recordkeeping and
Travel Rule's coverage funds transfers or transmittal of funds in
which certain categories of financial institution are the
transmittor, originator, recipient, or beneficiary. See 31 CFR
103.33(e)(6)(i) and 31 CFR 103.33(f)(6)(i). Further, the Final Rule
subjects mutual funds to requirements on the creation and retention
of records for extensions of credit and cross-border transfers of
currency, monetary instruments, checks, investment securities, and
credit. See 31 CFR 103.33(a)-(c). Financial institutions must retain
these records for a period of five years. 31 CFR 103.38(d).
---------------------------------------------------------------------------
Mutual funds are subject to record retention requirements under the
Investment Company Act of 1940, and mutual fund transfer agents are
subject to recordkeeping requirements under the Securities Exchange Act
of 1934.\8\ In light of these existing regulatory obligations, FinCEN
stated in the notice of proposed rulemaking that the requirements of 31
CFR 103.33 and 31 CFR 103.38 would have a de minimus impact on mutual
funds and their transfer agents.\9\ Furthermore, rules under the BSA on
the establishment of customer identification programs by mutual funds
and on the reporting by mutual funds of suspicious transactions impose
requirements to create and retain records.\10\
---------------------------------------------------------------------------
\8\ See, e.g., 15 U.S.C. 80a-30 (mutual funds); 15 U.S.C.
78q(a)(3) (transfer agents).
\9\ Amendment to Bank Secrecy Act Regulations; Defining Mutual
Funds as Financial Institutions, 74 FR 26996, 26998 (June 5, 2009).
\10\ See 31 CFR 103.131 (mutual funds must obtain and record
identifying information for persons opening new accounts, and verify
the identity of persons opening new accounts); 31 CFR 103.15(c)
(mutual funds must maintain records of documentation that supports
the filing of a SAR).
---------------------------------------------------------------------------
FinCEN also requested comment on the anticipated impact of
subjecting mutual funds to the requirements of the Recordkeeping and
Travel Rule. All three commenters noted that subjecting mutual funds to
the requirements of the Recordkeeping and Travel Rule will require
mutual funds to implement changes to their transaction processing and
recordkeeping systems. All commenters requested additional time to
comply with the Recordkeeping and Travel Rule. Commenters stated that
such an extension would provide mutual funds with an opportunity to
implement changes to their transaction reporting and recordkeeping
systems. Generally, commenters suggested an extension of between 18 to
24 months. FinCEN determined that extending the compliance date with
respect to the requirements of the Recordkeeping and Travel Rule to 270
days after the rule
[[Page 63383]]
was published in the Federal Register (January 10, 2011) was
appropriate.
On July 13, 2010, the Investment Company Institute (``ICI'') \11\
submitted a letter stating that it will be difficult for its members to
comply with the Recordkeeping and Travel Rule by January 10, 2011. Due
to unique industry end-of-year systems issues,\12\ as well as systems
changes necessitated by other new regulatory requirements,\13\ the ICI
has requested a three month extension of the date by which mutual funds
are required to comply with the requirements of the Recordkeeping and
Travel Rule.
---------------------------------------------------------------------------
\11\ The ICI is an association of U.S. investment companies,
including mutual funds, closed-end funds, exchange-traded funds
(ETFs), and unit investment trusts (UITs). Members of ICI manage
total assets of $11.42 trillion and serve 90 million shareholders.
\12\ According to the ICI, most mutual funds and transfer agents
refrain from implementing material modifications or enhancements to
their transaction processing and recordkeeping systems for varying
periods beginning in early December (generally referred to as a
``freeze'') to ensure that the systems are capable of handling the
large number of end-of-year fund and shareholder transactions, as
well as the preparation of year-end account statements and tax
reporting information. Because the January 10, 2011 compliance date
falls within the period when mutual fund transaction processing and
recordkeeping systems are frozen, mutual funds will need to come
into compliance with the Recordkeeping and Travel Rule by the middle
of November 2010--before the systems are frozen. A three-month
extension of the compliance date would allow mutual funds sufficient
time to come into compliance with the Recordkeeping and Travel Rule
without disrupting the year-end operations and reporting functions.
\13\ According to the ICI, mutual fund transfer agents are
currently redesigning their systems in order to comply with new cost
basis reporting requirements, which entail significant operational
and technological changes to allow funds to capture, report, and
transfer required tax information, such as when shareholders
transfer their accounts (see Basis Reporting by Securities Brokers
and Basis Determination for Stock, 74 FR 67010 (Dec. 17, 2009)). In
addition, mutual funds and their transfer agents are updating their
systems to comply with a new requirement that money market mutual
funds and their transfer agents be able to process purchases and
redemptions electronically at a price other than $1.00 per share
(see Money Market Fund Reform, SEC Release No. IC-29132 (Jan. 27,
2010)).
---------------------------------------------------------------------------
II. Extension of Compliance Date for the Recordkeeping and Travel Rule
FinCEN believes that it is appropriate to extend the date by which
mutual funds must comply with the Recordkeeping and Travel Rule.
Therefore, mutual funds now will have until April 10, 2011 to comply
with 31 CFR 103.33. We do not anticipate granting a further extension
beyond April 10, 2011 and expect that mutual funds thereafter will have
adequate processes in place to comply with the Recordkeeping and Travel
Rule.
III. Proposed Location in Chapter X
As discussed in a previous Federal Register Notice, 73 FR 66414,
Nov. 7, 2008, FinCEN is separately proposing to remove Part 103 of
Chapter I of Title 31, Code of Federal Regulations, and add Parts 1000
to 1099 (Chapter X). If the notice of proposed rulemaking for Chapter X
is finalized, the changes in the present rule would be reorganized
according to the proposed Chapter X. The planned reorganization will
have no substantive effect on the regulatory changes herein. The
regulatory changes of this specific rulemaking would be renumbered
according to the proposed Chapter X as follows: Sec. 103.33 would be
moved to Sec. 1010.410.
IV. Notice and Comment Under the Administrative Procedure Act
FinCEN for good cause finds that, for the reasons cited above,
including the brief length of the extension we are granting, notice and
solicitation of comment regarding the extension of the compliance date
are impracticable, unnecessary and contrary to the public interest. In
this regard, FinCEN notes that mutual funds need to be informed as soon
as possible of the extension and its length in order to plan and adjust
their implementation processes accordingly.\14\
---------------------------------------------------------------------------
\14\ See 5 U.S.C. 553(b)(3)(B) (an agency may dispense without
prior notice and comment when it finds, for good cause, that notice
and comment are ``impracticable, unnecessary, and contrary to the
public interest''). The change to the compliance date is effective
upon publication in the Federal Register. The Administrative
Procedure Act allows effective dates less than 30 days after
publication in the Federal Register for ``a substantive rule which
grants or recognizes an exemption or relieves a restriction.'' See 5
U.S.C. 553(d)(1).
Dated: October 6, 2010.
James H. Freis, Jr.,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2010-25886 Filed 10-14-10; 8:45 am]
BILLING CODE 4810-02-P
