Fair Credit Reporting Act and Bank Secrecy Act Compliance, 18365-18366 [2011-7911]
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Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Rules and Regulations
under § 226.3(b) based on a firm commitment
to extend credit. For example:
i. Assume that, on July 20, 2011, the
account is exempt under § 226.3(b) based on
the creditor’s firm commitment to extend
$30,000 in credit. On November 1, 2011, the
creditor increases the firm commitment on
the account to $55,000. In these
circumstances, the account remains exempt
under § 226.3(b)(1) regardless of subsequent
increases in the threshold amount as a result
of increases in the CPI–W.
ii. Same facts as paragraph i. above except,
on November 1, 2011, the creditor increases
the firm commitment on the account to
$40,000. In these circumstances, the account
ceases to be exempt under § 226.3(b)(2) after
December 31, 2011, and the creditor must
begin to comply with the applicable
requirements of this Part.
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Section 226.23—Right of Rescission
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23(a) Consumer’s right to rescind
Paragraph 23(a)(1).
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5. Addition of a security interest. Under
footnote 47, the addition of a security interest
in a consumer’s principal dwelling to an
existing obligation is rescindable even if the
existing obligation is not satisfied and
replaced by a new obligation, and even if the
existing obligation was previously exempt
under § 226.3(b). The right of rescission
applies only to the added security interest,
however, and not to the original obligation.
In those situations, only the § 226.23(b)
notice need be delivered, not new material
disclosures; the rescission period will begin
to run from the delivery of the notice.
reorganization of the Financial Crimes
Enforcement Network, Department of
Treasury (FinCEN) BSA regulations.
DATES:
Effective Date: April 4, 2011.
FOR FURTHER INFORMATION CONTACT:
Regina Metz, Staff Attorney, 703–518–
6561, or Jennifer Vickers, Trial
Attorney, 703–518–6547, National
Credit Union Administration, 1775
Duke Street, Alexandria, VA 22314.
Effective
March 1, 2011, FinCEN is reorganizing
and moving its existing BSA regulations
from 31 CFR part 103 to 31 CFR chapter
X. See 75 FR 65806, October 26, 2010.
NCUA is amending provisions of its
FCRA FACTA regulations (12 CFR part
717), including Appendix J to 12 CFR
part 717, and BSA Compliance (12 CFR
part 748) regulations to make minor,
non-substantive technical amendments
to conform the citations therein to
FinCEN’s reorganized BSA regulations.
SUPPLEMENTARY INFORMATION:
Description of the Final Rule
[FR Doc. 2011–7376 Filed 4–1–11; 8:45 am]
NCUA’s FCRA FACTA and BSA
Compliance regulations currently cite to
FinCEN’s BSA regulations in 31 CFR
part 103. Due to FinCEN’s
reorganization of its BSA regulations,
these citations to 31 CFR part 103 in
NCUA’s regulations would become
obsolete on March 1, 2011. To avoid
this, the final rule amends NCUA’s
FCRA FACTA regulations (12 CFR
717.82(c)(2)(i)(A)), including Appendix
J to 12 CFR part 717, Section III(a), and
BSA Compliance regulations (12 CFR
748.1(c)(2)(ii) and (iii) and 748.2(a) and
(b)(1) and (2)) to comport with FinCEN’s
reorganized BSA regulations at 31 CFR
chapter X.
BILLING CODE 6210–01–P
Administrative Procedure Act
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By order of the Board of Governors of the
Federal Reserve System, March 24, 2011.
Jennifer J. Johnson,
Secretary of the Board.
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Parts 717 and 748
Fair Credit Reporting Act and Bank
Secrecy Act Compliance
National Credit Union
Administration (NCUA).
ACTION: Final rule; technical
amendments.
AGENCY:
NCUA is amending its Bank
Secrecy Act (BSA) Compliance and Fair
Credit Reporting Act (FCRA) regulations
involving the Fair and Accurate Credit
Transactions Act of 2003 (FACTA) to
make minor, non-substantive technical
amendments. These technical
amendments update citations in these
NCUA regulations to conform to the
sroberts on DSK69SOYB1PROD with RULES
SUMMARY:
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18:24 Apr 01, 2011
Jkt 223001
Under 5 U.S.C. 553(b)(B) of the
Administrative Procedure Act (APA), an
agency may, for good cause, find (and
incorporate the finding and a brief
statement of reasons therefore in the
rules issued) that notice and public
procedure thereon are impracticable,
unnecessary, or contrary to the public
interest.
This final rule makes minor, nonsubstantive technical amendments to
NCUA’s FCRA FACTA and BSA
Compliance regulations as described
above, to conform certain citations to
FinCEN’s reorganized BSA regulations.
Therefore, NCUA, for good cause, finds
that the notice and comment procedures
prescribed by the APA are unnecessary
because the final rule makes technical
amendments to citations without
substantive change to the relevant
provisions of 12 CFR parts 717 and 748.
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Fmt 4700
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18365
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking where a
general notice of proposed rulemaking
is not required. See 5 U.S.C. 603 and
604. As noted above under
Administrative Procedure Act, NCUA
has determined, for good cause, that it
is unnecessary to publish a notice of
proposed rulemaking for this final rule.
Accordingly, the RFA’s requirements
relating to an initial and final regulatory
flexibility analysis do not apply.
Paperwork Reduction Act of 1995
There are no information collection
requirements in this final rule.
List of Subjects
12 CFR Part 717
Consumer protection, Credit unions,
Fair and accurate credit, Fair credit
reporting, Privacy, Reporting and
recordkeeping requirements.
12 CFR Part 748
Consumer protection, Credit unions,
Crime, Currency, Reporting and
recordkeeping requirements, Security
measures.
For the reasons discussed in the
SUPPLEMENTARY INFORMATION section
above, 12 CFR part 717 and 12 CFR part
748 are amended as follows:
PART 717—FAIR CREDIT REPORTING
1. The authority citation for part 717
continues to read as follows:
■
Authority: 12 U.S. C. 1751 et seq.; 15
U.S.C. 1681a, 1681b, 1681c, 1681s, 1681s–1,
1681t, 1681w, 6801, and 6805, Pub. L. 108–
159, 117 Stat. 1952.
2. Amend § 717.82 by revising
paragraph (c)(2)(i)(A) to read as follows:
■
§ 717.82 Duties of users regarding address
discrepancies.
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(c) * * *
(2) * * *
(i) * * *
(A) Obtains and uses to verify the
consumer’s identity in accordance with
the requirements of the Customer
Identification Program (CIP) rules
implementing 31 U.S.C. 5318(l) (31 CFR
1020.220);
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■ 3. In Appendix J to part 717, revise
Section III, paragraph (a) to read as
follows:
Appendix J to Part 717—Interagency
Guidelines on Identity Theft Detection,
Prevention, and Mitigation
III. Detecting Red Flags
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04APR1
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18366
Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Rules and Regulations
(a) Obtaining identifying information
about, and verifying the identity of, a person
opening a covered account; for example,
using the policies and procedures regarding
identification and verification set forth in the
Customer Identification Program rules
implementing 31 U.S.C. 5318(l) (31 CFR
1020.220); and
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PART 748—SECURITY PROGRAM,
REPORT OF SUSPECTED CRIMES,
SUSPICIOUS TRANSACTIONS,
CATASTROPHIC ACTS, AND BANK
SECRECY ACT COMPLIANCE
4. The authority citation for part 748
continues to read as follows:
■
Authority: 12 U.S.C. 1766(a), 1786(Q),
15 U.S.C. 6801 and 6805(b); 31 U.S.C. 5311
and 5318.
5. Amend § 748.1 by revising
paragraphs (c)(2)(ii) and (iii) to read as
follows:
■
§ 748.1
Filing of reports.
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(c) * * *
(2) * * *
(ii) Content. A credit union must
complete, fully and accurately, SAR
form TDF 90–22.47, Suspicious Activity
Report (also known as NCUA Form
2362) in accordance with the form’s
instructions and 31 CFR 1020.320. A
copy of the SAR form may be obtained
from the credit union resources section
of NCUA’s Web site, https://
www.ncua.gov, or the regulatory section
of FinCEN’s Web site, https://
www.fincen.gov. These sites include
other useful guidance on SARs, for
example, forms and filing instructions,
Frequently Asked Questions, and the
FFIEC Bank Secrecy Act/Anti-Money
Laundering Examination Manual.
(iii) Compliance. Failure to file a SAR
as required by the form’s instructions
and 31 CFR 1020.320 may subject the
credit union, its officials, employees,
and agents to the assessment of civil
money penalties or other administrative
actions.
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■ 6. Amend § 748.2 by revising
paragraphs (a) and (b) to read as follows:
sroberts on DSK69SOYB1PROD with RULES
§ 748.2 Procedures for monitoring Bank
Secrecy Act (BSA) compliance.
(a) Purpose. This section is issued to
ensure that all federally insured credit
unions establish and maintain
procedures reasonably designed to
assure and monitor compliance with the
requirements of subchapter II of chapter
53 of title 31, United States Code, the
Financial Recordkeeping and Reporting
of Currency and Foreign Transactions
Act, and the implementing regulations
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18:24 Apr 01, 2011
Jkt 223001
promulgated under it by the Department
of Treasury, 31 CFR chapter X.
(b) Establishment of a BSA
compliance program—(1) Program
requirement. Each federally insured
credit union shall develop and provide
for the continued administration of a
program reasonably designed to assure
and monitor compliance with the
recordkeeping and recording
requirements in subchapter II of chapter
53 of title 31, United States Code and
implementing regulations issued by the
Department of Treasury at 31 CFR
chapter X. The compliance program
must be written, approved by the credit
union’s board of directors, and reflected
in the credit union’s minutes.
(2) Customer identification program.
Each federally insured credit union is
subject to the requirements of 31 U.S.C.
5318(l) and the implementing regulation
jointly promulgated by the NCUA and
Department of the Treasury at 31 CFR
1020.220, which require a customer
identification program to be
implemented as part of the BSA
compliance program required under this
section.
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By the National Credit Union
Administration Board, this 3rd day of March,
2011.
Mary F. Rupp,
Secretary of the Board.
[FR Doc. 2011–7911 Filed 4–1–11; 8:45 am]
BILLING CODE 7535–01–P
FEDERAL HOUSING FINANCE BOARD
12 CFR Parts 965, 966, 969, and 987
FEDERAL HOUSING FINANCE
AGENCY
12 CFR Part 1270
RIN 2590–AA36
Federal Home Loan Bank Liabilities
Federal Housing Finance
Board, Federal Housing Finance
Agency.
ACTION: Final rule.
AGENCY:
The Federal Housing Finance
Agency (FHFA) is re-organizing and readopting existing Federal Housing
Finance Board (Finance Board)
regulations dealing with consolidated
obligations (COs), as well as related
regulations addressing other authorized
Federal Home Loan Bank (Bank)
liabilities and book-entry procedures for
COs, as new part 1270 of the FHFA
regulations. The final rule amends these
regulations to reflect statutory
SUMMARY:
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Fmt 4700
Sfmt 4700
amendments made to section 11(c) of
the Federal Home Bank Act (Bank Act)
with regard to the issuance of COs.
Otherwise, FHFA is re-adopting most of
the regulatory provisions addressed in
this rulemaking without substantive
change.
This rule will become effective
on May 4, 2011.
DATES:
FOR FURTHER INFORMATION CONTACT:
Joseph A. McKenzie, Chief Economist,
Federal Home Loan Bank and System
Analysis, 202–408–2845, Federal
Housing Finance Agency, 1625 Eye
Street, NW., Washington, DC 20006; or
Thomas E. Joseph, Senior AttorneyAdvisor, 202–414–3095, Office of
General Counsel, Federal Housing
Finance Agency, Fourth Floor, 1700 G
Street, NW., Washington, DC 20552. The
telephone number for the
Telecommunications Device for the Deaf
is (800) 877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
A. Creation of the Federal Housing
Finance Agency and Recent Legislation
Effective July 30, 2008, the Housing
and Economic Recovery Act of 2008
(HERA), Public Law 110–289, 122 Stat.
2654, created FHFA as a new
independent agency of the Federal
Government, and transferred to FHFA
the supervisory and oversight
responsibilities of the Office of Federal
Housing Enterprise Oversight (OFHEO)
over the Federal National Mortgage
Association, and the Federal Home Loan
Mortgage Corporation (collectively, the
Enterprises), the oversight
responsibilities of the Finance Board
over the Banks and the Office of Finance
(OF) (which acts as the Banks’ fiscal
agent) and certain functions of the
Department of Housing and Urban
Development. See id. at section 1101,
122 Stat. 2661–62. FHFA is responsible
for ensuring that the Enterprises and the
Banks operate in a safe and sound
manner, including that they maintain
adequate capital and internal controls,
that their activities foster liquid,
efficient, competitive and resilient
national housing finance markets, and
that they carry out their public policy
missions through authorized activities.
See id. at section 1102, 122 Stat. 2663–
64. The Enterprises, the Banks, and the
OF continue to operate under
regulations promulgated by OFHEO and
the Finance Board until such
regulations are superseded by
regulations issued by FHFA. See id. at
sections 1301, 1302, 1311, 1312, 122
Stat. 2794–95, 2797–98.
E:\FR\FM\04APR1.SGM
04APR1
Agencies
[Federal Register Volume 76, Number 64 (Monday, April 4, 2011)]
[Rules and Regulations]
[Pages 18365-18366]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7911]
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NATIONAL CREDIT UNION ADMINISTRATION
12 CFR Parts 717 and 748
Fair Credit Reporting Act and Bank Secrecy Act Compliance
AGENCY: National Credit Union Administration (NCUA).
ACTION: Final rule; technical amendments.
-----------------------------------------------------------------------
SUMMARY: NCUA is amending its Bank Secrecy Act (BSA) Compliance and
Fair Credit Reporting Act (FCRA) regulations involving the Fair and
Accurate Credit Transactions Act of 2003 (FACTA) to make minor, non-
substantive technical amendments. These technical amendments update
citations in these NCUA regulations to conform to the reorganization of
the Financial Crimes Enforcement Network, Department of Treasury
(FinCEN) BSA regulations.
DATES: Effective Date: April 4, 2011.
FOR FURTHER INFORMATION CONTACT: Regina Metz, Staff Attorney, 703-518-
6561, or Jennifer Vickers, Trial Attorney, 703-518-6547, National
Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314.
SUPPLEMENTARY INFORMATION: Effective March 1, 2011, FinCEN is
reorganizing and moving its existing BSA regulations from 31 CFR part
103 to 31 CFR chapter X. See 75 FR 65806, October 26, 2010. NCUA is
amending provisions of its FCRA FACTA regulations (12 CFR part 717),
including Appendix J to 12 CFR part 717, and BSA Compliance (12 CFR
part 748) regulations to make minor, non-substantive technical
amendments to conform the citations therein to FinCEN's reorganized BSA
regulations.
Description of the Final Rule
NCUA's FCRA FACTA and BSA Compliance regulations currently cite to
FinCEN's BSA regulations in 31 CFR part 103. Due to FinCEN's
reorganization of its BSA regulations, these citations to 31 CFR part
103 in NCUA's regulations would become obsolete on March 1, 2011. To
avoid this, the final rule amends NCUA's FCRA FACTA regulations (12 CFR
717.82(c)(2)(i)(A)), including Appendix J to 12 CFR part 717, Section
III(a), and BSA Compliance regulations (12 CFR 748.1(c)(2)(ii) and
(iii) and 748.2(a) and (b)(1) and (2)) to comport with FinCEN's
reorganized BSA regulations at 31 CFR chapter X.
Administrative Procedure Act
Under 5 U.S.C. 553(b)(B) of the Administrative Procedure Act (APA),
an agency may, for good cause, find (and incorporate the finding and a
brief statement of reasons therefore in the rules issued) that notice
and public procedure thereon are impracticable, unnecessary, or
contrary to the public interest.
This final rule makes minor, non-substantive technical amendments
to NCUA's FCRA FACTA and BSA Compliance regulations as described above,
to conform certain citations to FinCEN's reorganized BSA regulations.
Therefore, NCUA, for good cause, finds that the notice and comment
procedures prescribed by the APA are unnecessary because the final rule
makes technical amendments to citations without substantive change to
the relevant provisions of 12 CFR parts 717 and 748.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
where a general notice of proposed rulemaking is not required. See 5
U.S.C. 603 and 604. As noted above under Administrative Procedure Act,
NCUA has determined, for good cause, that it is unnecessary to publish
a notice of proposed rulemaking for this final rule. Accordingly, the
RFA's requirements relating to an initial and final regulatory
flexibility analysis do not apply.
Paperwork Reduction Act of 1995
There are no information collection requirements in this final
rule.
List of Subjects
12 CFR Part 717
Consumer protection, Credit unions, Fair and accurate credit, Fair
credit reporting, Privacy, Reporting and recordkeeping requirements.
12 CFR Part 748
Consumer protection, Credit unions, Crime, Currency, Reporting and
recordkeeping requirements, Security measures.
For the reasons discussed in the SUPPLEMENTARY INFORMATION section
above, 12 CFR part 717 and 12 CFR part 748 are amended as follows:
PART 717--FAIR CREDIT REPORTING
0
1. The authority citation for part 717 continues to read as follows:
Authority: 12 U.S. C. 1751 et seq.; 15 U.S.C. 1681a, 1681b,
1681c, 1681s, 1681s-1, 1681t, 1681w, 6801, and 6805, Pub. L. 108-
159, 117 Stat. 1952.
0
2. Amend Sec. 717.82 by revising paragraph (c)(2)(i)(A) to read as
follows:
Sec. 717.82 Duties of users regarding address discrepancies.
* * * * *
(c) * * *
(2) * * *
(i) * * *
(A) Obtains and uses to verify the consumer's identity in
accordance with the requirements of the Customer Identification Program
(CIP) rules implementing 31 U.S.C. 5318(l) (31 CFR 1020.220);
* * * * *
0
3. In Appendix J to part 717, revise Section III, paragraph (a) to read
as follows:
Appendix J to Part 717--Interagency Guidelines on Identity Theft
Detection, Prevention, and Mitigation
III. Detecting Red Flags
* * * * *
[[Page 18366]]
(a) Obtaining identifying information about, and verifying the
identity of, a person opening a covered account; for example, using
the policies and procedures regarding identification and
verification set forth in the Customer Identification Program rules
implementing 31 U.S.C. 5318(l) (31 CFR 1020.220); and
* * * * *
PART 748--SECURITY PROGRAM, REPORT OF SUSPECTED CRIMES, SUSPICIOUS
TRANSACTIONS, CATASTROPHIC ACTS, AND BANK SECRECY ACT COMPLIANCE
0
4. The authority citation for part 748 continues to read as follows:
Authority: 12 U.S.C. 1766(a), 1786(Q), 15 U.S.C. 6801 and
6805(b); 31 U.S.C. 5311 and 5318.
0
5. Amend Sec. 748.1 by revising paragraphs (c)(2)(ii) and (iii) to
read as follows:
Sec. 748.1 Filing of reports.
* * * * *
(c) * * *
(2) * * *
(ii) Content. A credit union must complete, fully and accurately,
SAR form TDF 90-22.47, Suspicious Activity Report (also known as NCUA
Form 2362) in accordance with the form's instructions and 31 CFR
1020.320. A copy of the SAR form may be obtained from the credit union
resources section of NCUA's Web site, https://www.ncua.gov, or the
regulatory section of FinCEN's Web site, https://www.fincen.gov. These
sites include other useful guidance on SARs, for example, forms and
filing instructions, Frequently Asked Questions, and the FFIEC Bank
Secrecy Act/Anti-Money Laundering Examination Manual.
(iii) Compliance. Failure to file a SAR as required by the form's
instructions and 31 CFR 1020.320 may subject the credit union, its
officials, employees, and agents to the assessment of civil money
penalties or other administrative actions.
* * * * *
0
6. Amend Sec. 748.2 by revising paragraphs (a) and (b) to read as
follows:
Sec. 748.2 Procedures for monitoring Bank Secrecy Act (BSA)
compliance.
(a) Purpose. This section is issued to ensure that all federally
insured credit unions establish and maintain procedures reasonably
designed to assure and monitor compliance with the requirements of
subchapter II of chapter 53 of title 31, United States Code, the
Financial Recordkeeping and Reporting of Currency and Foreign
Transactions Act, and the implementing regulations promulgated under it
by the Department of Treasury, 31 CFR chapter X.
(b) Establishment of a BSA compliance program--(1) Program
requirement. Each federally insured credit union shall develop and
provide for the continued administration of a program reasonably
designed to assure and monitor compliance with the recordkeeping and
recording requirements in subchapter II of chapter 53 of title 31,
United States Code and implementing regulations issued by the
Department of Treasury at 31 CFR chapter X. The compliance program must
be written, approved by the credit union's board of directors, and
reflected in the credit union's minutes.
(2) Customer identification program. Each federally insured credit
union is subject to the requirements of 31 U.S.C. 5318(l) and the
implementing regulation jointly promulgated by the NCUA and Department
of the Treasury at 31 CFR 1020.220, which require a customer
identification program to be implemented as part of the BSA compliance
program required under this section.
* * * * *
By the National Credit Union Administration Board, this 3rd day
of March, 2011.
Mary F. Rupp,
Secretary of the Board.
[FR Doc. 2011-7911 Filed 4-1-11; 8:45 am]
BILLING CODE 7535-01-P