[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Rules and Regulations]
[Pages 14793-14794]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6460]
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 326 and 334
RIN 3064-AD76
Procedures for Monitoring Bank Secrecy Act Compliance and Fair
Credit Reporting: Technical Amendments
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Final rule.
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SUMMARY: The FDIC is adopting a final rule to update cross-references
in its anti-money laundering program and Fair Credit Reporting Act
rules, to conform to changes in the numbering of the Department of the
Treasury's rules that implement the Bank Secrecy Act.
DATES: Effective March 18, 2011.
FOR FURTHER INFORMATION CONTACT: Division of Risk Management
Supervision and Consumer Protection: Debra Novak (202) 898-6641; Legal
Division: Carl Gold, Counsel, (202) 898-8702; Richard M. Schwartz,
Counsel, (202) 898-7424.
SUPPLEMENTARY INFORMATION: As required by section 8(s) of the Federal
Deposit Insurance Act, 12 U.S.C. 1818(s), the FDIC's regulation, 12 CFR
326.8, requires every State nonmember bank to establish and maintain
procedures reasonably designed to assure and monitor its compliance
with the requirements of the Bank Secrecy Act (``BSA''), 31 U.S.C. 5311
et seq., and the regulations implementing that statute (``BSA
regulations''). In addition, the FDIC has regulations, 12 CFR part 334,
which implement the Fair Credit Reporting Act, 15 U.S.C. 1681 et seq.
The Financial Crimes Enforcement Network (FinCEN), an arm of the
Department of the Treasury, recently amended the BSA regulations to
reorganize and move them from 31 CFR Part 103 to Chapter X of Title 31
of the CFR. 75 FR 65806 et seq. (Oct. 26, 2010). Effective March 1,
2010, the BSA regulations governing State nonmember banks (as well as
other federally-insured depository institutions) are contained in 31
CFR part 1010 et seq.
To conform to this change, the FDIC is amending a general cross-
reference to the BSA regulations in 12 CFR 326.8, and specific cross-
references to the Customer Identification Program (``CIP''), 31 CFR
103.121, in 12 CFR 326.8, 12 CFR 334.82, and Appendix J to Part 334.
The CIP regulation, which is substantively unchanged, is now found at
31 CFR 1020.220.
Administrative Procedure Act
The Administrative Procedure Act, 5 U.S.C. 553(b) provides that a
final regulation may be issued without prior notice or an opportunity
for comment when the agency for good cause finds (and incorporates the
finding and a brief statement of reasons therefor in the rules issued)
that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest. The FDIC finds that
good cause exists as the regulatory amendments are nonsubstantive, and
therefore notice and public procedure are unnecessary. 5 U.S.C. 553(d)
provides that the required publication or service of a substantive rule
shall be made not less than 30 days before its effective date, with
some exceptions. Since this is not a substantive rule, the rule is
effective immediately upon publication in the Federal Register.
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 previously in the SUPPLEMENTARY
INFORMATION section, the FDIC 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
There are no information collection requirements in this final
rule.
List of Subjects in 12 CFR Parts 326 and 334
Banks, banking, Currency, Insured nonmember banks, Reporting and
recordkeeping requirements.
For the reasons set out in the preamble, the FDIC hereby amends 12
CFR chapter III as follows:
PART 326--MINIMUM SECURITY DEVICES AND PROCEDURES AND BANK SECRECY
ACT COMPLIANCE
0
1. The authority citation for part 326 continues to read as follows:
Authority: 12 U.S.C. 1813, 1815, 1817, 1818, 1819 (Tenth),
1881-1883; 31 U.S.C. 5311-5314 and 5316-5332.2.
0
2. Revise Sec. 326.8 to read as follows:
Sec. 326.8 Bank Security Act compliance.
(a) Purpose. This subpart is issued to assure that all insured
nonmember banks as defined in 12 CFR 326.1 establish and maintain
procedures reasonably designed to assure and monitor their compliance
with the requirements of subchapter II of chapter 53 of title 31,
United States Code, and the implementing regulations promulgated
thereunder by the Department of Treasury at 31 CFR Chapter X.
(b) Compliance procedures-- (1) Program requirement. Each bank
shall develop and provide for the continued administration of a program
reasonably designed to assure and monitor compliance with recordkeeping
and reporting requirements set forth in subchapter II of chapter 53 of
title 31, United States Code, and the implementing regulations issued
by the Department of Treasury at 31 CFR Chapter X. The compliance
program shall be written, approved by the bank's
[[Page 14794]]
board of directors, and noted in the minutes.
(2) Customer identification program. Each bank is subject to the
requirements of 31 U.S.C. 5318(l) and the implementing regulation
jointly promulgated by the FDIC and the Department of the Treasury at
31 CFR 1020.220.
PART 334--FAIR CREDIT REPORTING
0
3. The authority citation for part 334 continues to read:
Authority: 12 U.S.C. 1818, 1819 (Tenth) and 1831 p-1; 15 U.S.C.
1681a, 1681b, 1681c, 1681m, 1681s, 1681s-3, 1681t, 1681w, 6801 and
6805, Pub. L. 108-159, 117 Stat. 1952.
0
4. In Sec. 334.82, revise paragraph (c)(2)(i)(A) to read as follows:
Sec. 334.82 Duties of users regarding address descrepancies.
* * * * *
(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
5. In Appendix J to Part 334, revise Section III, paragraph (a) to read
as follows:
Appendix J to Part 334--Interagency Guidelines on Identity Theft
Detection, Prevention, and Mitigation
* * * * *
III. Detecting Red Flags
* * * * *
(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
* * * * *
Dated at Washington, DC, this 15th day of March 2011.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2011-6460 Filed 3-17-11; 8:45 am]
BILLING CODE 6714-01-P