63380 Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Rules and Regulations 

Executive Order 13132 (Federalism) 

The Department has reviewed this 

proposed rule in accordance with 

Executive Order 13132 regarding 

federalism, and has determined that it 

does not have ‘‘federalism implications.’’ 

The rule will not ‘‘have substantial 

direct effects on the States, on the 

relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government.’’ 

Executive Order 12988 (Civil Justice 

Reform) 

This rule meets the applicable 

standards in sections 3(a) and 3(b)(2) of 

Executive Order 12988, Civil Justice 

Reform, to minimize litigation, 

eliminate ambiguity, and reduce 

burden. 

List of Subjects in 20 CFR Part 701 

Longshore and harbor workers, 

Organization and functions (government 

agencies), Workers’ compensation. 

■ Based on the authority and reasons set 

forth in the preamble, 20 CFR chapter VI 

is amended to read as follows: 

CHAPTER VI—OFFICE OF WORKERS’ 

COMPENSATION PROGRAMS, 

DEPARTMENT OF LABOR 

■ 1. Revise the chapter heading of 20 

CFR chapter VI to read as shown above. 

PART 701—GENERAL; 

ADMINISTERING AGENCY; 

DEFINITIONS AND USE OF TERMS 

■ 2. The authority citation for part 701 

is revised to read as follows: 

Authority: 5 U.S.C. 301 and 8171 et seq.; 

33 U.S.C. 939; 36 D.C. Code 501 et seq.; 42 

U.S.C. 1651 et seq.; 43 U.S.C. 1331; 

Reorganization Plan No. 6 of 1950, 15 FR 

3174, 3 CFR, 1949–1953 Comp., p. 1004, 64 

Stat. 1263; Secretary’s Order 10–2009, 74 FR 

58834 (Nov. 13, 2009). 

■ 3. Revise § 701.201 to read as follows: 

§ 701.201 Office of Workers’ 

Compensation Programs. 

The Office of Workers’ Compensation 

Programs is responsible for 

administering the LHWCA and its 

extensions. 

Signed at Washington, DC, this 5th day of 

October 2010. 

Seth D. Harris, 

Deputy Secretary. 

[FR Doc. 2010–25521 Filed 10–14–10; 8:45 am] 

BILLING CODE 4510–23–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9502] 

RIN 1545–BF90 

Exclusions From Gross Income of 

Foreign Corporations; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains 

corrections to final regulations (TD 

9502) that were published in the 

Federal Register on Friday, September 

17, 2010 (75 FR 56858) under section 

883(a) and (c) of the Internal Revenue 

Code, concerning the exclusion from 

gross income of income derived by 

certain foreign corporations from the 

international operation of ships or 

aircraft. 

DATES: This correction is effective on 

October 15, 2010, and is applicable on 

September 17, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Patricia A. Bray, (202) 622–3880 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9502) that 

are the subject of this document are 

under section 883 of the Internal 

Revenue Code. 

Need for Correction 

As published, the final regulations 

(TD 9502) contain errors that may prove 

to be misleading and are in need of 

clarification. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

■ Accordingly, 26 CFR part 1 is 

corrected by making the following 

correcting amendments: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 2. Section 1.883–2 is amended by 

revising paragraph (f)(4)(ii)(C) to read as 

follows: 

§ 1.883–2 Treatment of publicly-traded 

corporations. 

* * * * * 

(f) * * * 

(4) * * * 

(ii) * * * 

(C) The number of days during the 

taxable year of the foreign corporation 

that such qualified shareholders owned, 

directly or indirectly, their shares in the 

closely held block of stock. 

* * * * * 

■ Par. 3. Section 1.883–5 is amended by 

revising the heading of paragraph (d) to 

read as follows: 

§ 1.883–5 Effective/applicability dates. 

* * * * * 

(d) Effective/applicability dates. 

* * * 

LaNita Van Dyke, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel (Procedure and Administration). 

[FR Doc. 2010–25950 Filed 10–14–10; 8:45 am] 

BILLING CODE 4830–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4022 

Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions 

for Paying Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This final rule amends 

Pension Benefit Guaranty Corporation’s 

regulation on Benefits Payable in 

Terminated Single-Employer Plans to 

prescribe interest assumptions under 

the regulation for valuation dates in 

November 2010. Interest assumptions 

are also published on PBGC’s Web site 

(http://www.pbgc.gov). 

DATES: Effective November 1, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, Manager, Regulatory 

and Policy Division, Legislative and 

Regulatory Department, Pension Benefit 

Guaranty Corporation, 1200 K Street, 

NW., Washington, DC 20005, 202–326– 

4024. (TTY/TDD users may call the 

Federal relay service toll-free at 1–800– 

877–8339 and ask to be connected to 

202–326–4024.) 

SUPPLEMENTARY INFORMATION: PBGC’s 

regulation on Benefits Payable in 

Terminated Single-Employer Plans (29 

CFR part 4022) prescribes actuarial 

assumptions—including interest 

assumptions—for paying plan benefits 

under terminating single-employer 

plans covered by title IV of the 

Employee Retirement Income Security 

Act of 1974. 

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Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Rules and Regulations 63381 

1Appendix B to PBGC’s regulation on Allocation 

of Assets in Single-Employer Plans (29 CFR part 

4044) prescribes interest assumptions for valuing 

benefits under terminating covered single-employer 

plans for purposes of allocation of assets under 

ERISA section 4044. Those assumptions are 

updated quarterly. 

PBGC uses the interest assumptions in 

Appendix B to part 4022 to determine 

whether a benefit is payable as a lump 

sum and to determine the amount to 

pay. Appendix C to part 4022 contains 

interest assumptions for private-sector 

pension practitioners to refer to if they 

wish to use lump-sum interest rates 

determined using PBGC’s historical 

methodology. Currently, the rates in 

Appendices B and C of the benefit 

payment regulation are the same. 

The interest assumptions are intended 

to reflect current conditions in the 

financial and annuity markets. 

Assumptions under the benefit 

payments regulation are updated 

monthly. This final rule updates the 

benefit payments interest assumptions 

for November 2010.1

The November 2010 interest 

assumptions under the benefit payments 

regulation will be 1.75 percent for the 

period during which a benefit is in pay 

status and 4.00 percent during any years 

preceding the benefit’s placement in pay 

status. In comparison with the interest 

assumptions in effect for October 2010, 

these interest assumptions are 

unchanged. 

PBGC has determined that notice and 

public comment on this amendment are 

impracticable and contrary to the public 

interest. This finding is based on the 

need to determine and issue new 

interest assumptions promptly so that 

the assumptions can reflect current 

market conditions as accurately as 

possible. 

Because of the need to provide 

immediate guidance for the payment of 

benefits under plans with valuation 

dates during November 2010, PBGC 

finds that good cause exists for making 

the assumptions set forth in this 

amendment effective less than 30 days 

after publication. 

PBGC has determined that this action 

is not a ‘‘significant regulatory action’’ 

under the criteria set forth in Executive 

Order 12866. 

Because no general notice of proposed 

rulemaking is required for this 

amendment, the Regulatory Flexibility 

Act of 1980 does not apply. See 5 U.S.C. 

601(2). 

List of Subjects in 29 CFR Part 4022 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

■ In consideration of the foregoing, 29 

CFR part 4022 is amended as follows: 

PART 4022—BENEFITS PAYABLE IN 

TERMINATED SINGLE-EMPLOYER 

PLANS 

■ 1. The authority citation for part 4022 

continues to read as follows: 

Authority: 29 U.S.C. 1302, 1322, 1322b, 

1341(c)(3)(D), and 1344. 

■ 2. In appendix B to part 4022, Rate Set 

205, as set forth below, is added to the 

table. 

Appendix B to Part 4022—Lump Sum 

Interest Rates For PBGC Payments 

* * * * * 

Rate set 

For plans with a valuation 

date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i

1 i2 i3 n1 n2

*******

205 .................................... 11–1–10 12–1–10 1.75 4.00 4.00 4.00 7 8 

■ 3. In appendix C to part 4022, Rate Set 

205, as set forth below, is added to the 

table. 

Appendix C to Part 4022—Lump Sum 

Interest Rates For Private-Sector 

Payments 

* * * * * 

Rate set 

For plans with a valuation 

date Immediate 

annuity rate 

(percent) 

Deferred annuities 

(percent) 

On or after Before i

1 i2 i3 n1 n2

*******

205 .................................... 11–1–10 12–1–10 1.75 4.00 4.00 4.00 7 8 

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63382 Federal Register / Vol. 75, No. 199 / Friday, October 15, 2010 / Rules and Regulations 

1Amendments to the Bank Secrecy Act 

Regulations; Defining Mutual Funds as Financial 

Institutions, 75 FR 19241 (April 14, 2010). 

2See 31 CFR 103.11(n)(10) (general definition of 

‘‘financial institution’’). The BSA is codified in part 

at 31 U.S.C. 5311 et seq. Rules implementing the 

BSA are codified at 31 CFR part 103. 

3See 31 CFR 103.33(f) and (g). Financial 

institutions must retain records for a period of five 

years. 31 CFR103.38(d). 

4Rules under the BSA define a ‘‘transmittal of 

funds’’ and the persons or institutions involved in 

a ‘‘transmittal of funds.’’ See 31 CFR 103.11(d), (e), 

(q), (r), (s), (v), (w), (cc), (dd), (jj), (kk), (ll), and 

(mm). A ‘‘transmittal of funds’’ includes funds 

transfers processed by banks, as well as similar 

payments where one or more of the financial 

institutions processing the payment is not a bank. 

If the mutual fund is processing a payment sent by 

or to its customer, then the mutual fund would be 

either the ‘‘transmittor’s financial institution’’ or the 

‘‘recipient’s financial institution.’’ 

5See 31 CFR 103.33(f)(1)(i) and (f)(2). 

6See 31 CFR 103.33(f)(3) (information that the 

recipient’s financial institution must obtain or 

retain). 

7See 31 CFR 103.33(g) (information that must 

‘‘travel’’ with the transmittal order); 31 CFR 

103.11(kk) (defining ‘‘transmittal order’’). 

Additionally, the Final Rule includes mutual funds 

within an existing exception designed to exclude 

from the Recordkeeping and Travel Rule’s coverage 

funds transfers or transmittal of funds in which 

certain categories of financial institution are the 

transmittor, originator, recipient, or beneficiary. See 

31 CFR 103.33(e)(6)(i) and 31 CFR 103.33(f)(6)(i). 

Further, the Final Rule subjects mutual funds to 

requirements on the creation and retention of 

records for extensions of credit and cross-border 

transfers of currency, monetary instruments, 

checks, investment securities, and credit. See 31 

CFR 103.33(a)–(c). Financial institutions must 

retain these records for a period of five years. 31 

CFR 103.38(d). 

8See, e.g., 15 U.S.C. 80a–30 (mutual funds); 15 

U.S.C. 78q(a)(3) (transfer agents). 

9Amendment to Bank Secrecy Act Regulations; 

Defining Mutual Funds as Financial Institutions, 74 

FR 26996, 26998 (June 5, 2009). 

10See 31 CFR 103.131 (mutual funds must obtain 

and record identifying information for persons 

opening new accounts, and verify the identity of 

persons opening new accounts); 31 CFR 103.15(c) 

(mutual funds must maintain records of 

documentation that supports the filing of a SAR). 

Issued in Washington, DC, on this 12th day 

of October 2010. 

Vincent K. Snowbarger, 

Deputy Director for Operations, Pension 

Benefit Guaranty Corporation. 

[FR Doc. 2010–26081 Filed 10–14–10; 8:45 am] 

BILLING CODE 7709–01–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 103 

RIN 1506–AA93 

Financial Crimes Enforcement 

Network; Amendment to the Bank 

Secrecy Act Regulations; Defining 

Mutual Funds as Financial Institutions; 

Extension of Compliance Date 

AGENCY: Financial Crimes Enforcement 

Network (‘‘FinCEN’’), Treasury. 

ACTION: Final rule; extension of 

compliance date. 

SUMMARY: FinCEN is issuing this final 

rule extending the compliance date for 

those provisions in 31 CFR 103.33 that 

apply to mutual funds. On April 14, 

2010, FinCEN issued a final rule that 

included mutual funds within the 

general definition of ‘‘financial 

institution’’ in regulations implementing 

the Bank Secrecy Act (‘‘BSA’’). The final 

rule subjects mutual funds to 31 CFR 

103.33, which requires the creation, 

retention, and transmittal of records or 

information for transmittals of funds. 

FinCEN is extending, from January 10, 

2011 to April 10, 2011, the date on 

which mutual funds must begin to 

comply with 31 CFR 103.33. 

DATES: This final rule is effective on 

October 15, 2010. The compliance date 

for 31 CFR 103.33 is extended from 

January 10, 2011 to April 10, 2011. 

FOR FURTHER INFORMATION CONTACT: The 

FinCEN regulatory helpline at (800) 

949–2732. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On April 14, 2010, FinCEN published 

a final rule 1 to include mutual funds 

within the general definition of 

‘‘financial institution’’ in regulations 

implementing the BSA (the ‘‘Final 

Rule’’).2 The Final Rule subjects mutual 

funds to rules under the BSA on the 

filing of Currency Transaction Reports 

(‘‘CTRs’’) and on the creation, retention, 

and transmittal of records or 

information for transmittals of funds. 

Additionally, the Final Rule amends the 

definition of mutual fund in the rule 

requiring mutual funds to establish antimoney laundering (‘‘AML’’) programs. 

The amendment harmonizes the 

definition of mutual fund in the AML 

program rule with the definitions found 

in the other BSA rules to which mutual 

funds are subject. Finally, the Final Rule 

amends the rule that delegates authority 

to examine institutions for compliance 

with the BSA. The amendment makes it 

clear that FinCEN has not delegated to 

the Internal Revenue Service the 

authority to examine mutual funds for 

compliance with the BSA, but rather to 

the U.S. Securities and Exchange 

Commission as the Federal functional 

regulator of mutual funds. 

Section 103.33—The Recordkeeping 

and Travel Rule and Related 

Recordkeeping Requirements 

The Final Rule subjects mutual funds 

to requirements relating to the creation 

and retention of records for transmittals 

of funds, and the requirement to 

transmit information on these 

transactions to other financial 

institutions in the payment chain 

(‘‘Recordkeeping and Travel Rule’’).3

The Recordkeeping and Travel Rule 

applies to transmittals of funds in 

amounts that equal or exceed $3,000,4

and requires the transmittor’s financial 

institution to obtain and retain name, 

address, and other information on the 

transmittor and the transaction.5

Furthermore, the Recordkeeping and 

Travel Rule requires the recipient’s 

financial institution—and in certain 

instances, the transmittor’s financial 

institution—to obtain or retain 

identifying information on the 

recipient.6 The Recordkeeping and 

Travel Rule requires that certain 

information obtained or retained by the 

transmittor’s financial institution 

‘‘travel’’ with the transmittal order 

through the payment chain.7

Mutual funds are subject to record 

retention requirements under the 

Investment Company Act of 1940, and 

mutual fund transfer agents are subject 

to recordkeeping requirements under 

the Securities Exchange Act of 1934.8 In 

light of these existing regulatory 

obligations, FinCEN stated in the notice 

of proposed rulemaking that the 

requirements of 31 CFR 103.33 and 31 

CFR 103.38 would have a de minimus 

impact on mutual funds and their 

transfer agents.9 Furthermore, rules 

under the BSA on the establishment of 

customer identification programs by 

mutual funds and on the reporting by 

mutual funds of suspicious transactions 

impose requirements to create and 

retain records.10

FinCEN also requested comment on 

the anticipated impact of subjecting 

mutual funds to the requirements of the 

Recordkeeping and Travel Rule. All 

three commenters noted that subjecting 

mutual funds to the requirements of the 

Recordkeeping and Travel Rule will 

require mutual funds to implement 

changes to their transaction processing 

and recordkeeping systems. All 

commenters requested additional time 

to comply with the Recordkeeping and 

Travel Rule. Commenters stated that 

such an extension would provide 

mutual funds with an opportunity to 

implement changes to their transaction 

reporting and recordkeeping systems. 

Generally, commenters suggested an 

extension of between 18 to 24 months. 

FinCEN determined that extending the 

compliance date with respect to the 

requirements of the Recordkeeping and 

Travel Rule to 270 days after the rule 

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