[Federal Register Volume 76, Number 64 (Monday, April 4, 2011)]
[Rules and Regulations]
[Pages 18365-18366]
From the Federal Register Online via the Government Publishing 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.
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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, http://www.ncua.gov, or the
regulatory section of FinCEN's Web site, http://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