Proposed Agency Information Collection Activities; Comment Request, 1732-1734 [2019-00996]
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1732
Federal Register / Vol. 84, No. 24 / Tuesday, February 5, 2019 / Notices
Proposal To Approve Under OMB
Delegated Authority the Extension for
Three Years, Without Revision, of the
Following Report
Report title: Recordkeeping
Requirements of Regulation H and
Regulation K Associated with the
Procedures for Monitoring Bank Secrecy
Act Compliance.
Agency form number: FR K.
OMB control number: 7100–0310.
Frequency: Annually.
Respondents: State member banks;
Edge and agreement corporations; and
certain U.S. branches, agencies, and
representative offices of foreign banks
supervised by the Board.
Estimated number of respondents:
Establish compliance program—1;
maintenance of compliance program—
957.
Estimated average hours per response:
Establish compliance program—16;
maintenance of compliance program—4.
Estimated annual burden hours:
Establish compliance program—16;
maintenance of compliance program—
3,828.
General description of report: The
Board’s Regulation K and Regulation H
require state member banks, Edge and
agreement corporations and, except for
a federal branch or a federal agency or
a state branch that is insured by the
Federal Deposit Insurance Corporation,
the U.S. branches, agencies, and
representative offices of foreign banks
supervised by the Board to establish a
written Bank Secrecy Act (BSA)
compliance program that includes the
following components: (1) A system of
internal controls to assure ongoing
compliance, (2) independent testing of
compliance by the institution’s
personnel or by an outside party, (3) the
designation of an individual or
individuals for coordinating and
monitoring day-to-day compliance, and
(4) training for appropriate personnel.1
The compliance program must be
approved by the board of directors of
the state member bank, Edge
corporation, or agreement corporation
and must be noted in the institution’s
minutes. In the case of a branch, agency,
or representative office of a foreign
bank, the compliance program may be
approved by the foreign bank’s board of
directors and noted in the minutes or
approved by a delegee acting under the
express authority of the foreign bank’s
board of directors.
Legal authorization and
confidentiality: The FR K is authorized
pursuant to the Federal Deposit
1 See 12 CFR 208.63(c); these specific
requirements are incorporated by reference in 12
CFR 211.5(m)(1) and 211.24(j)(1).
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17:22 Feb 04, 2019
Jkt 247001
Insurance Act (12 U.S.C. 1818(s)), which
requires the federal banking agencies,
including the Board, to (1) prescribe
regulations requiring the institutions
they regulate to establish and maintain
procedures reasonably designed to
assure and monitor compliance with the
BSA and (2) to review such procedures
during the course of their
examinations.2 The FR K is mandatory.
Because the Federal Reserve will not
collect this information, confidentiality
issues would normally not arise.
Because the records will be retained at
banking organizations, the Freedom of
Information Act (FOIA) will only be
implicated if the Board’s examiners
retain a copy of the record as part of an
examination or supervision of a banking
institution. In that case, the records
would be exempt from disclosure under
exemption 8 to FOIA, which protects
examination materials from disclosure
(5 U.S.C. 552(b)(8)). Exemption 4 to
FOIA, which protects confidential
financial information, may also be
applicable (5 U.S.C. 552(b)(4)).
Board of Governors of the Federal Reserve
System, January 30, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019–01000 Filed 2–4–19; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Change in Bank Control Notices;
Acquisitions of Shares of a Bank or
Bank Holding Company
The notificants listed below have
applied under the Change in Bank
Control Act (‘‘Act’’) (12 U.S.C. 1817(j))
and § 225.41 of the Board’s Regulation
Y (12 CFR 225.41) to acquire shares of
a bank or bank holding company. The
factors that are considered in acting on
the notices are set forth in paragraph 7
of the Act (12 U.S.C. 1817(j)(7)).
The notices are available for
immediate inspection at the Federal
Reserve Bank indicated. The notices
also will be available for inspection at
the offices of the Board of Governors.
Interested persons may express their
views in writing to the Reserve Bank
indicated for that notice or to the offices
of the Board of Governors. Comments
must be received not later than February
21, 2019.
2 The Board’s authority in 12 U.S.C. 1818(s) to
prescribe regulations includes the entities required
to comply with section 208.63 of the Board’s
Regulation H (12 CFR 208.63) and sections
211.5(m)(1) and 211.24(j)(1) of the Board’s
Regulation K (12 CFR 211.5(m)(1) and 12 CFR
211.24(j)(1)).
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A. Federal Reserve Bank of Kansas
City (Dennis Denney, Assistant Vice
President) 1 Memorial Drive, Kansas
City, Missouri 64198–0001:
1. The RFB–FLB Trust, U/A/D October
25, 2016 and Frances Biolchini, as
trustee, both of Kelly, Wyoming; to
retain voting shares of Tulsa Valley
Bancshares Corporation, Tulsa,
Oklahoma, and thereby indirectly retain
Vast Bank, N.A., Tulsa, Oklahoma
Board of Governors of the Federal Reserve
System, January 31, 2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2019–01125 Filed 2–4–19; 8:45 am]
BILLING CODE P
FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
ACTION: Notice, request for comment.
AGENCY:
The Board of Governors of the
Federal Reserve System (Board) invites
comment on a proposal to extend for
three years, with revision, the
Suspicious Activity Report (FR 2230;
OMB No. 7100–0212).
DATES: Comments must be submitted on
or before April 8, 2019.
ADDRESSES: You may submit comments,
identified by FR 2230, by any of the
following methods:
• Agency website: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• Email: regs.comments@
federalreserve.gov. Include OMB
number in the subject line of the
message.
• FAX: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments are available
from the Board’s website at https://
www.federalreserve.gov/apps/foia/
proposedregs.aspx as submitted, unless
modified for technical reasons or to
remove sensitive personally identifiable
information at the commenter’s request.
Public comments may also be viewed
electronically or in paper form in Room
3515, 1801 K Street NW (between 18th
and 19th Streets NW), Washington, DC
20006, between 9:00 a.m. and 5:00 p.m.
on weekdays. For security reasons, the
SUMMARY:
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05FEN1
Federal Register / Vol. 84, No. 24 / Tuesday, February 5, 2019 / Notices
Board requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 452–3684.
Upon arrival, visitors will be required to
present valid government-issued photo
identification and to submit to security
screening in order to inspect and
photocopy comments.
Additionally, commenters may send a
copy of their comments to the OMB
Desk Officer—Shagufta Ahmed—Office
of Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 10235,
725 17th Street NW, Washington, DC
20503 or by fax to (202) 395–6974.
FOR FURTHER INFORMATION CONTACT: A
copy of the PRA OMB submission,
including the proposed reporting form
and instructions, supporting statement,
and other documentation will be placed
into OMB’s public docket files, if
approved. These documents will also be
made available on the Board’s public
website at: https://
www.federalreserve.gov/apps/
reportforms/review.aspx or may be
requested from the agency clearance
officer, whose name appears below.
Federal Reserve Board Clearance
Officer—Nuha Elmaghrabi—Office of
the Chief Data Officer, Board of
Governors of the Federal Reserve
System, Washington, DC 20551, (202)
452–3829. Telecommunications Device
for the Deaf (TDD) users may contact
(202) 263–4869, Board of Governors of
the Federal Reserve System,
Washington, DC 20551.
SUPPLEMENTARY INFORMATION: On June
15, 1984, the Office of Management and
Budget (OMB) delegated to the Board
authority under the Paperwork
Reduction Act (PRA) to approve and
assign OMB control numbers to
collection of information requests and
requirements conducted or sponsored
by the Board. In exercising this
delegated authority, the Board is
directed to take every reasonable step to
solicit comment. In determining
whether to approve a collection of
information, the Board will consider all
comments received from the public and
other agencies.
Request for Comment on Information
Collection Proposal
The Board invites public comment on
the following information collection,
which is being reviewed under
authority delegated by the OMB under
the PRA. Comments are invited on the
following:
a. Whether the proposed collection of
information is necessary for the proper
performance of the Board’s functions;
including whether the information has
practical utility;
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17:22 Feb 04, 2019
Jkt 247001
b. The accuracy of the Board’s
estimate of the burden of the proposed
information collection, including the
validity of the methodology and
assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information collection on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
e. Estimates of capital or startup costs
and costs of operation, maintenance,
and purchase of services to provide
information.
At the end of the comment period, the
comments and recommendations
received will be analyzed to determine
the extent to which the Board should
modify the proposal.
Proposal To Approve Under OMB
Delegated Authority the Extension for
Three Years, With Revision, of the
Following Report
Report title: Suspicious Activity
Report.
Agency form number: FR 2230.
OMB control number: 7100–0212.
Frequency: On occasion.
Respondents: State member banks,
bank holding companies and their
nonbank subsidiaries, Edge and
agreement corporations, the nonbank
subsidiaries of foreign banks supervised
by the Board, and certain U.S. branches,
agencies, and representative offices of
such foreign banks.
Estimated number of respondents:
6,698.
Estimated average hours per response:
1.5.
Estimated annual burden hours:
439,520.
General description of report: Since
1996, the federal banking agencies 1 and
the Department of the Treasury’s
Financial Crimes Enforcement Network
(FinCEN) have required certain types of
financial institutions to report known or
suspected violations of law and
suspicious transactions. To fulfill these
requirements, supervised banking
organizations file Bank Secrecy Act—
Suspicious Activity Reports (BSA–
SARs).2 Law enforcement agencies use
the information submitted in the reports
to initiate investigations and the Board
1 These agencies include the Board, the Office of
the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, and the National
Credit Union Administration.
2 In 1996, the Board together with the other
federal banking agencies issued nearly identical
regulations to implement the SAR process for
banking organizations.
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Fmt 4703
Sfmt 4703
1733
uses the information in the examination
and oversight of supervised institutions.
The Board’s suspicious activity
reporting rules apply to state member
banks, bank holding companies and
their nonbank subsidiaries, Edge and
agreement corporations, the nonbank
subsidiaries of foreign banks supervised
by the Board, and certain U.S. branches,
agencies, and representative offices of
such foreign banks.3 The Board is only
responsible for the paperwork burden
imposed on these institutions. Other
federal banking agencies account for the
paperwork burden for the institutions
they supervise.
Proposed revisions: On July 27, 2018,
FinCEN implemented the new version
1.2 of the SAR, which added, removed,
or revised several data fields.4 The
FinCEN revisions added or modified
types and subtypes of suspicious
activities, added new fields related to IP
address information, and added new
cyber event indicators. These revisions
were made to ensure the collection of
appropriate and current information in
order to aid law enforcement in
combating cyber-events and cyberenabled crime.
The Board is proposing to adopt the
revisions made by FinCEN.
With respect to the file format
changes for electronic submission, the
BSA E-Filing System would continue to
accept ASCII based batch files until
January 1, 2019. Batch filers would have
six months from the expected go-live
date in June to adhere to the new XML
specification.5
Legal authorization and
confidentiality: The FR 2230 is
authorized pursuant to the Federal
Reserve Act (12 U.S.C. 248(a)(1), 602,
625), the Federal Deposit Insurance Act
(12 U.S.C. 1818(s)), the Bank Holding
Company Act (12 U.S.C. 1844(c)), and
3 See 12 CFR 208.62 (state member banks); 12
CFR 211.5(k) (Edge and agreement corporations); 12
CFR 211.24(f) (a branch, agency, or representative
office of a foreign bank operating in the United
States, except for a federal branch or a federal
agency or a state branch that is insured by the
Federal Deposit Insurance Corporation (FDIC)); 12
CFR 225.4(f) (bank holding companies, nonbank
subsidiaries of a bank holding company, foreign
banks subject to the Bank Holding Company Act,
and nonbank subsidiaries of such a foreign bank).
The Board’s suspicious activity reporting rules do
not apply to a branch or agency of a foreign bank
operating in the United States if it is a federal
branch or a federal agency or a state branch that is
insured by the FDIC.
4 The notice announcing the final submission to
OMB was published in the Federal Register
November 28, 2017 (82 FR 56325).
5 See Department of the Treasury, Financial
Crimes Enforcement Network (2018), ‘‘FinCEN
Announces Update to the Suspicious Activity
Report (SAR) & Technical Webinar for Batch
Filers,’’ press release, January 26, 2018 https://
bsaefiling.fincen.treas.gov/docs/
SARXMLAnnouncement_Jan2018.pdf.
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Federal Register / Vol. 84, No. 24 / Tuesday, February 5, 2019 / Notices
the International Banking Act (12 U.S.C.
3105(c)(2) and 3106(a)). The FR 2230 is
mandatory. SARs are confidential and
exempt from Freedom of Information
Act (‘‘FOIA’’) disclosure by 31 U.S.C.
5319, which specifically provides that
SARs ‘‘are exempt from disclosure
under section 552 of title 5,’’ and FOIA
exemption 3, 5 U.S.C. 552(b)(3) (matters
‘‘specifically exempted from disclosure
by statute’’).
Consultation outside the agency: The
current revisions to the BSA–SAR data
elements were discussed in the
interagency Data Management Council
led by FinCEN and of which the Board
is a member.
Board of Governors of the Federal Reserve
System, January 30, 2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019–00996 Filed 2–4–19; 8:45 am]
BILLING CODE 6210–01–P
A. Federal Reserve Bank of Chicago
(Colette A. Fried, Assistant Vice
President) 230 South LaSalle Street,
Chicago, Illinois 60690–1414:
1. MiCommunity Bancorp, Inc.; to
become a bank holding company by
acquiring voting shares of Mi Bank, a de
novo bank, both of Bloomfield
Township, Michigan.
Board of Governors of the Federal Reserve
System, January 31, 2019.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2019–01126 Filed 2–4–19; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities: Announcement of Board
Approval under Delegated Authority
and Submission to OMB
Board of Governors of the
Federal Reserve System.
SUMMARY: The Board of Governors of the
Federal Reserve System (Board) is
adopting a proposal to extend for three
years, without revision, the Disclosure
Requirements of Subpart H of
Regulation H (Consumer Protections in
Sales of Insurance) (Reg H–7; OMB No.
7100–0298).
FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance
Officer—Nuha Elmaghrabi—Office of
the Chief Data Officer, Board of
Governors of the Federal Reserve
System, Washington, DC 20551 (202)
452–3829. Telecommunications Device
for the Deaf (TDD) users may contact
(202) 263–4869, Board of Governors of
the Federal Reserve System,
Washington, DC 20551.
OMB Desk Officer—Shagufta
Ahmed—Office of Information and
Regulatory Affairs, Office of
Management and Budget, New
Executive Office Building, Room 10235,
725 17th Street NW, Washington, DC
20503 or by fax to (202) 395–6974.
SUPPLEMENTARY INFORMATION: On June
15, 1984, the Office of Management and
Budget (OMB) delegated to the Board
authority under the Paperwork
Reduction Act (PRA) to approve and
assign OMB control numbers to
collection of information requests and
requirements conducted or sponsored
by the Board. Board-approved
collections of information are
incorporated into the official OMB
inventory of currently approved
collections of information. Copies of the
Paperwork Reduction Act Submission,
supporting statements and approved
collection of information instrument(s)
AGENCY:
FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications will also be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than March 6, 2019.
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17:22 Feb 04, 2019
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Frm 00037
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Sfmt 4703
are placed into OMB’s public docket
files. The Board may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection that has been extended,
revised, or implemented on or after
October 1, 1995, unless it displays a
currently valid OMB control number.
Final Approval Under OMB Delegated
Authority of the Extension for Three
Years, Without Revision, of the
Following Information Collection
Report title: Disclosure Requirements
of Subpart H of Regulation H (Consumer
Protections in Sales of Insurance).
Agency form number: Reg H–7.
OMB control number: 7100–0298.
Frequency: On occasion.
Respondents: State member banks and
other persons.
Estimated number of respondents:
822.
Estimated time per response: 1.5
minutes.
Estimated annual burden hours:
12,947.
General description of report: Subpart
H of Regulation H was adopted by the
Board in 2003 pursuant to section 305
of the Gramm-Leach-Bliley Act of 1999
(GLBA), which required the federal
banking agencies to issue joint
regulations governing retail sales
practices, solicitations, advertising, and
offers of insurance by, on behalf of, or
at the offices of insured depository
institutions. The insurance consumer
protection rules in Regulation H, which
apply to the sale of insurance by a state
member bank or by any other person at
an office of the bank or on behalf of the
bank (collectively, ‘‘Covered Persons’’),
require Covered Persons to prepare and
provide certain disclosures to
consumers. Covered persons are
required to make certain written and
oral disclosures before the completion
of the initial sale of an insurance
product or annuity to a consumer and
at the time a consumer applies for an
extension of credit in connection with
which an insurance product or annuity
is solicited, offered, or sold (see 12 CFR
208.84(a)–(d)).
Legal authorization and
confidentiality: Section 305 of the GLBA
requires that the Board issue
regulations, including disclosure
requirements, applicable to retail sales
practices, solicitations, advertising, or
offers of insurance by depository
institutions (12 U.S.C. 1831x). The
disclosure requirements described
above are contained in Subpart H of the
Board’s Regulation H. 12 CFR part 208,
subpart H. The disclosures required
under Subpart H are mandatory.
Because Regulation H–7 disclosures are
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Agencies
[Federal Register Volume 84, Number 24 (Tuesday, February 5, 2019)]
[Notices]
[Pages 1732-1734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00996]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to extend for three years, with revision,
the Suspicious Activity Report (FR 2230; OMB No. 7100-0212).
DATES: Comments must be submitted on or before April 8, 2019.
ADDRESSES: You may submit comments, identified by FR 2230, by any of
the following methods:
Agency website: https://www.federalreserve.gov. Follow the
instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Email: regs.comments@federalreserve.gov. Include OMB
number in the subject line of the message.
FAX: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments are available from the Board's website at
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as
submitted, unless modified for technical reasons or to remove sensitive
personally identifiable information at the commenter's request. Public
comments may also be viewed electronically or in paper form in Room
3515, 1801 K Street NW (between 18th and 19th Streets NW), Washington,
DC 20006, between 9:00 a.m. and 5:00 p.m. on weekdays. For security
reasons, the
[[Page 1733]]
Board requires that visitors make an appointment to inspect comments.
You may do so by calling (202) 452-3684. Upon arrival, visitors will be
required to present valid government-issued photo identification and to
submit to security screening in order to inspect and photocopy
comments.
Additionally, commenters may send a copy of their comments to the
OMB Desk Officer--Shagufta Ahmed--Office of Information and Regulatory
Affairs, Office of Management and Budget, New Executive Office
Building, Room 10235, 725 17th Street NW, Washington, DC 20503 or by
fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: A copy of the PRA OMB submission,
including the proposed reporting form and instructions, supporting
statement, and other documentation will be placed into OMB's public
docket files, if approved. These documents will also be made available
on the Board's public website at: https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested from the agency clearance
officer, whose name appears below.
Federal Reserve Board Clearance Officer--Nuha Elmaghrabi--Office of
the Chief Data Officer, Board of Governors of the Federal Reserve
System, Washington, DC 20551, (202) 452-3829. Telecommunications Device
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors
of the Federal Reserve System, Washington, DC 20551.
SUPPLEMENTARY INFORMATION: On June 15, 1984, the Office of Management
and Budget (OMB) delegated to the Board authority under the Paperwork
Reduction Act (PRA) to approve and assign OMB control numbers to
collection of information requests and requirements conducted or
sponsored by the Board. In exercising this delegated authority, the
Board is directed to take every reasonable step to solicit comment. In
determining whether to approve a collection of information, the Board
will consider all comments received from the public and other agencies.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Board's functions; including whether the
information has practical utility;
b. The accuracy of the Board's estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Board
should modify the proposal.
Proposal To Approve Under OMB Delegated Authority the Extension for
Three Years, With Revision, of the Following Report
Report title: Suspicious Activity Report.
Agency form number: FR 2230.
OMB control number: 7100-0212.
Frequency: On occasion.
Respondents: State member banks, bank holding companies and their
nonbank subsidiaries, Edge and agreement corporations, the nonbank
subsidiaries of foreign banks supervised by the Board, and certain U.S.
branches, agencies, and representative offices of such foreign banks.
Estimated number of respondents: 6,698.
Estimated average hours per response: 1.5.
Estimated annual burden hours: 439,520.
General description of report: Since 1996, the federal banking
agencies \1\ and the Department of the Treasury's Financial Crimes
Enforcement Network (FinCEN) have required certain types of financial
institutions to report known or suspected violations of law and
suspicious transactions. To fulfill these requirements, supervised
banking organizations file Bank Secrecy Act--Suspicious Activity
Reports (BSA-SARs).\2\ Law enforcement agencies use the information
submitted in the reports to initiate investigations and the Board uses
the information in the examination and oversight of supervised
institutions.
---------------------------------------------------------------------------
\1\ These agencies include the Board, the Office of the
Comptroller of the Currency, the Federal Deposit Insurance
Corporation, and the National Credit Union Administration.
\2\ In 1996, the Board together with the other federal banking
agencies issued nearly identical regulations to implement the SAR
process for banking organizations.
---------------------------------------------------------------------------
The Board's suspicious activity reporting rules apply to state
member banks, bank holding companies and their nonbank subsidiaries,
Edge and agreement corporations, the nonbank subsidiaries of foreign
banks supervised by the Board, and certain U.S. branches, agencies, and
representative offices of such foreign banks.\3\ The Board is only
responsible for the paperwork burden imposed on these institutions.
Other federal banking agencies account for the paperwork burden for the
institutions they supervise.
---------------------------------------------------------------------------
\3\ See 12 CFR 208.62 (state member banks); 12 CFR 211.5(k)
(Edge and agreement corporations); 12 CFR 211.24(f) (a branch,
agency, or representative office of a foreign bank operating in the
United States, except for a federal branch or a federal agency or a
state branch that is insured by the Federal Deposit Insurance
Corporation (FDIC)); 12 CFR 225.4(f) (bank holding companies,
nonbank subsidiaries of a bank holding company, foreign banks
subject to the Bank Holding Company Act, and nonbank subsidiaries of
such a foreign bank). The Board's suspicious activity reporting
rules do not apply to a branch or agency of a foreign bank operating
in the United States if it is a federal branch or a federal agency
or a state branch that is insured by the FDIC.
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Proposed revisions: On July 27, 2018, FinCEN implemented the new
version 1.2 of the SAR, which added, removed, or revised several data
fields.\4\ The FinCEN revisions added or modified types and subtypes of
suspicious activities, added new fields related to IP address
information, and added new cyber event indicators. These revisions were
made to ensure the collection of appropriate and current information in
order to aid law enforcement in combating cyber-events and cyber-
enabled crime.
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\4\ The notice announcing the final submission to OMB was
published in the Federal Register November 28, 2017 (82 FR 56325).
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The Board is proposing to adopt the revisions made by FinCEN.
With respect to the file format changes for electronic submission,
the BSA E-Filing System would continue to accept ASCII based batch
files until January 1, 2019. Batch filers would have six months from
the expected go-live date in June to adhere to the new XML
specification.\5\
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\5\ See Department of the Treasury, Financial Crimes Enforcement
Network (2018), ``FinCEN Announces Update to the Suspicious Activity
Report (SAR) & Technical Webinar for Batch Filers,'' press release,
January 26, 2018 https://bsaefiling.fincen.treas.gov/docs/SARXMLAnnouncement_Jan2018.pdf.
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Legal authorization and confidentiality: The FR 2230 is authorized
pursuant to the Federal Reserve Act (12 U.S.C. 248(a)(1), 602, 625),
the Federal Deposit Insurance Act (12 U.S.C. 1818(s)), the Bank Holding
Company Act (12 U.S.C. 1844(c)), and
[[Page 1734]]
the International Banking Act (12 U.S.C. 3105(c)(2) and 3106(a)). The
FR 2230 is mandatory. SARs are confidential and exempt from Freedom of
Information Act (``FOIA'') disclosure by 31 U.S.C. 5319, which
specifically provides that SARs ``are exempt from disclosure under
section 552 of title 5,'' and FOIA exemption 3, 5 U.S.C. 552(b)(3)
(matters ``specifically exempted from disclosure by statute'').
Consultation outside the agency: The current revisions to the BSA-
SAR data elements were discussed in the interagency Data Management
Council led by FinCEN and of which the Board is a member.
Board of Governors of the Federal Reserve System, January 30,
2019.
Michele Taylor Fennell,
Assistant Secretary of the Board.
[FR Doc. 2019-00996 Filed 2-4-19; 8:45 am]
BILLING CODE 6210-01-P