[Federal Register Volume 74, Number 12 (Wednesday, January 21, 2009)]
[Notices]
[Pages 3670-3671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-1069]
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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 renewal without change of an
information collection requirement contained in the form ``Suspicious
Activity Report by Insurance Companies,'' or the SAR-IC, FinCEN Form
108. In the interim until Bank Secrecy Act database issues are
resolved, insurance companies will report suspicious activities using
the ``Suspicious Activity Report by the Securities and Futures
Industries,'' (SAR-SF, FinCEN Form 101). This request for comments also
covers 31 CFR 103.16. This request for comments is being made pursuant
to the Paperwork Reduction Act of 1995, Public Law 104-13, 44 U.S.C.
3506(c)(2)(A).
DATES: Written comments are welcome and must be received on or before
March 23, 2009.
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 Reporting. Comments also may be
submitted by electronic mail to the following Internet address:
[email protected], again with a caption, in the body of the
text, ``Attention: PRA Comments--SAR-Insurance Companies Reporting.''
Inspection of comments. Comments may be inspected, between 10 a.m.
and 4 p.m., in the FinCEN reading room in Vienna, VA. Persons wishing
to inspect the comments submitted must request an appointment with the
Disclosure Officer by telephoning (703) 905-5034 (not a toll free
call).
FOR FURTHER INFORMATION CONTACT: The FinCEN Regulatory Helpline at 800-
949-2732, select option 7.
SUPPLEMENTARY INFORMATION:
Title: Suspicious Activity Reporting by Insurance Companies; 31 CFR
103.16.
OMB Number: 1506-0029.
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''), Pub. 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 October 17, 2002, FinCEN issued a
notice of proposed rulemaking requiring insurance companies to report
suspicious transactions (See 67 FR 64067). The final rule (See 70 FR
66761) can be found at 31 CFR 103.16.
In the preamble to the notice of proposed rulemaking, FinCEN
indicated that we would be developing a suspicious activity reporting
form for insurance companies entitled
[[Page 3671]]
``Suspicious Activity Report by Insurance Companies,'' or ``SAR-IC.''
\2\ This action renews the currently approved form which is currently
on-hold until database technical difficulties are resolved (See 72 FR
23891). Once resolved, the SAR-IC, FinCEN Form 108, will be released.
In the interim, insurance companies have been instructed to file using
the SAR-SF, FinCEN Form 101, which is similar in format and content.
Renewal of the SAR-SF is currently pending public comment (See 73 FR
74230).
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\2\ See 67 FR 64067-64075.
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The information collected on the SAR-IC 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 interim form to be used by insurance companies may be viewed at
http://www.fincen.gov/forms/files/fin101_sar-sf.pdf.
Type of Review: Renewal of a currently approved collection.
Affected public: Business or other for-profit institutions.
Frequency: As required.
Estimated Burden: The average completion time for the form is 1
hour per response. The recordkeeping average for 31 CFR 103.16 and the
form is 3 hours per response for a total burden of 4 hours per
response.
Estimated number of respondents: 1,200.
Estimated Total Annual Responses: 3,600.
Estimated Total Annual Burden Hours: 14,400
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: January 13, 2009.
James H. Freis, Jr.,
Director, Financial Crimes Enforcement Network.
[FR Doc. E9-1069 Filed 1-16-09; 8:45 am]
BILLING CODE 4810-02-P