10516 Federal Register / Vol. 76, No. 38 / Friday, February 25, 2011 / Rules and Regulations 

1 See 75 FR 65806 (October 26, 2010) (Transfer 

and Reorganization of Bank Secrecy Act 

Regulations Final Rule). 

2 See 75 FR 19241 (April 14, 2010) (Final Rule 

defining Mutual Funds as Financial Institutions). 

3See 75 FR 63382. 

* * * * * 

[FR Doc. 2011–3937 Filed 2–24–11; 8:45 am] 

BILLING CODE 4510–26–P 

DEPARTMENT OF THE TREASURY 

Financial Crimes Enforcement Network 

31 CFR Parts 1020, 1021, 1022, 1023, 

1024, 1025, 1026, 1027, and 1028 

RIN 1506–AA92 

Transfer and Reorganization of Bank 

Secrecy Act Regulations—Technical 

Amendment. 

AGENCY: Financial Crimes Enforcement 

Network (FinCEN), Treasury. 

ACTION: Final rule. 

SUMMARY: FinCEN is issuing this final 

rule as a technical amendment to new 

Chapter X of Title 31 of the Code of 

Federal Regulations, which was 

published on October 26, 2010. After 

that date, FinCEN published two final 

rules in Part 103 of Title 31 of the Code 

of Federal Regulations, one concerning 

mutual funds and the other concerning 

the confidentiality of a report of 

suspicious activity (SAR). This final 

rule moves the SAR confidentiality rule 

from Part 103 to new Chapter X and 

addresses the compliance date of the 

mutual fund rule. Additionally, the 

Chapter X Final Rule contained an 

inadvertent typographical error that 

omitted several sections from Subpart C 

of Part 1026 Rules for Futures 

Commission Merchants and Introducing 

Brokers in Commodities. This final rule 

corrects those omissions. 

DATES: Effective Date: March 1, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Regulatory Policy and Programs 

Division, FinCEN (800) 949–2732 and 

select option 6. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On October 26, 2010, FinCEN issued 

a final rule (‘‘the Chapter X Final Rule’’), 

creating a new Chapter X in title 31 of 

the Code of Federal Regulations (CFR) 

for Bank Secrecy Act (BSA) regulations. 

As discussed in the Chapter X Final 

Rule, FinCEN is reorganizing its 

regulations in new Chapter X to make 

them more accessible for covered 

individuals and financial institutions. 

The reorganization is not intended to 

have any substantive effect on the BSA 

regulations. Chapter X will be effective 

on March 1, 2011.1

On April 14, 2010, FinCEN issued a 

final rule to include mutual funds 

within the general definition of 

‘‘financial institution’’ in the BSA 

regulations.2 On October 15, 2010, 

FinCEN published a final rule extending 

the compliance date for those provisions 

of 31 CFR 103.33 that apply to mutual 

funds from January 10, 2011 to April 10, 

2011; however, this extension of the 

compliance date has not otherwise 

amended the applicable regulation.3

The regulatory changes made by 

including mutual funds within the 

general definition of ‘‘financial 

institution’’ were contained in the 

Chapter X Final Rule. The extended 

compliance date for these provisions 

still applies even though they have 

moved to 31 CFR Chapter X. 

On December 3, 2010, FinCEN issued 

a final rule to amend the BSA 

regulations regarding the confidentiality 

of a report of suspicious activity 

(‘‘SAR’’). To reflect the reorganization of 

BSA rules in Chapter X, FinCEN is 

issuing this technical amendment rule 

to move the revised SAR confidentiality 

rules, without any change to their 

applicability date, to Chapter X. 

As published, the Chapter X Final 

Rule contains omissions from Subpart C 

of Part 1026 Rules for Futures 

Commission Merchants and Introducing 

Brokers in Commodities. This final rule 

corrects those omissions. 

II. Effective Date 

The effective date of this technical 

amendment to Chapter X will be March 

1, 2011. As noted above, this technical 

amendment does not affect any of the 

applicability dates of the rules that are 

being moved to Chapter X by this 

technical amendment. 

III. Regulatory Matters 

A. Executive Order 12866 

It has been determined that this 

rulemaking is not a significant 

regulatory action for purposes of 

Executive Order 12866. Accordingly, a 

regulatory impact analysis is not 

required. 

B. Unfunded Mandates Reform Act of 

1995 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 

(‘‘Unfunded Mandates Act’’), Public Law 

104–4 (March 22, 1995), requires that an 

agency prepare a budgetary impact 

statement before promulgating a rule 

that may result in expenditure by state, 

local, and tribal governments, in the 

aggregate, or by the private sector, of 

$100 million or more in any one year. 

If a budgetary impact statement is 

required, section 202 of the Unfunded 

Mandates Act also requires an agency to 

identify and consider a reasonable 

number of regulatory alternatives before 

promulgating a rule. FinCEN has 

determined that it is not required to 

prepare a written statement under 

Section 202 and has concluded that on 

balance the rule provides the most costeffective and least burdensome 

alternative to achieve the objectives of 

the rule. 

C. Regulatory Flexibility Act 

Pursuant to the Regulatory Flexibility 

Act (RFA) (5 U.S.C. 602 et seq.), FinCEN 

certifies that this final regulation likely 

will not have a significant economic 

impact on a substantial number of small 

entities. The regulatory changes in this 

final rule merely restructure and recodify existing regulations and do not 

alter current regulatory obligations. 

D. Paperwork Reduction Act 

This regulation contains no new 

information collection requirements 

subject to review and approval by the 

Office of Management and Budget under 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3507(d) et seq.). The 

information collection requirements for 

the Bank Secrecy Act, currently codified 

at 31 CFR Part 103, were previously 

approved by the Office of Management 

and Budget under OMB Control 

numbers 1506–0001 through 1506– 

0046. Under the Paperwork Reduction 

Act, an agency may not conduct or 

sponsor and a person is not required to 

respond to a collection of information 

unless it displays a valid OMB control 

number. 

List of Subjects in 31 CFR Parts 1020, 

1021, 1022, 1023, 1024, 1025, 1026, 

1027, and 1028 

Administrative practice and 

procedure, Banks, Banking, Brokers, 

Currency, Foreign banking, Foreign 

currencies, Gambling, Investigations, 

Penalties, Reporting and recordkeeping 

requirements, Securities, Terrorism. 

Authority and Issuance 

For the reasons set forth above, 31 

CFR Chapter X, published October 26, 

2010 (75 FR 65842), is amended as 

follows: 

PART 1020—RULE FOR BANKS 

■ 1. The authority citation for part 1020 

is added to read as follows: 


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Federal Register / Vol. 76, No. 38 / Friday, February 25, 2011 / Rules and Regulations 10517 

Authority: 12 U.S.C. 1829b and 1951–1959; 

31 U.S.C. 5311–5314 and 5316–5332; title III, 

sec. 314, Pub. L. 107–56, 115 Stat. 307. 

■ 2. Section 1020.320 is amended by: 

■ a. Revising the last sentence of 

paragraph (d); and 

■ b. Revising paragraphs (e) and (f); and 

■ c. Adding new paragraph (g), to read 

as follows: 

§ 1020.320 Reports by banks of suspicious 

transactions. 

* * * * * 

(d) * * * A bank shall make all 

supporting documentation available to 

FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

bank for compliance with the Bank 

Secrecy Act, or any State regulatory 

authority administering a State law that 

requires the bank to comply with the 

Bank Secrecy Act or otherwise 

authorizes the State authority to ensure 

that the institution complies with the 

Bank Secrecy Act, upon request. 

(e) Confidentiality of SARs. A SAR, 

and any information that would reveal 

the existence of a SAR, are confidential 

and shall not be disclosed except as 

authorized in this paragraph (e). For 

purposes of this paragraph (e) only, a 

SAR shall include any suspicious 

activity report filed with FinCEN 

pursuant to any regulation in this 

chapter. 

(1) Prohibition on disclosures by 

banks—(i) General rule. No bank, and 

no director, officer, employee, or agent 

of any bank, shall disclose a SAR or any 

information that would reveal the 

existence of a SAR. Any bank, and any 

director, officer, employee, or agent of 

any bank that is subpoenaed or 

otherwise requested to disclose a SAR 

or any information that would reveal the 

existence of a SAR, shall decline to 

produce the SAR or such information, 

citing this section and 31 U.S.C. 

5318(g)(2)(A)(i), and shall notify 

FinCEN of any such request and the 

response thereto. 

(ii) Rules of Construction. Provided 

that no person involved in any reported 

suspicious transaction is notified that 

the transaction has been reported, this 

paragraph (e)(1) shall not be construed 

as prohibiting: 

(A) The disclosure by a bank, or any 

director, officer, employee, or agent of a 

bank, of: 

(1) A SAR, or any information that 

would reveal the existence of a SAR, to 

FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

bank for compliance with the Bank 

Secrecy Act, or any State regulatory 

authority administering a State law that 

requires the bank to comply with the 

Bank Secrecy Act or otherwise 

authorizes the State authority to ensure 

that the bank complies with the Bank 

Secrecy Act; or 

(2) The underlying facts, transactions, 

and documents upon which a SAR is 

based, including but not limited to, 

disclosures: 

(i) To another financial institution, or 

any director, officer, employee, or agent 

of a financial institution, for the 

preparation of a joint SAR; or 

(ii) In connection with certain 

employment references or termination 

notices, to the full extent authorized in 

31 U.S.C. 5318(g)(2)(B); or 

(B) The sharing by a bank, or any 

director, officer, employee, or agent of 

the bank, of a SAR, or any information 

that would reveal the existence of a 

SAR, within the bank’s corporate 

organizational structure for purposes 

consistent with Title II of the Bank 

Secrecy Act as determined by regulation 

or in guidance. 

(2) Prohibition on disclosures by 

government authorities. A Federal, 

State, local, territorial, or Tribal 

government authority, or any director, 

officer, employee, or agent of any of the 

foregoing, shall not disclose a SAR, or 

any information that would reveal the 

existence of a SAR, except as necessary 

to fulfill official duties consistent with 

Title II of the Bank Secrecy Act. For 

purposes of this section, ‘‘official duties’’ 

shall not include the disclosure of a 

SAR, or any information that would 

reveal the existence of a SAR, in 

response to a request for disclosure of 

non-public information or a request for 

use in a private legal proceeding, 

including a request pursuant to 31 CFR 

1.11. 

(f) Limitation on liability. A bank, and 

any director, officer, employee, or agent 

of any bank, that makes a voluntary 

disclosure of any possible violation of 

law or regulation to a government 

agency or makes a disclosure pursuant 

to this section or any other authority, 

including a disclosure made jointly with 

another institution, shall be protected 

from liability to any person for any such 

disclosure, or for failure to provide 

notice of such disclosure to any person 

identified in the disclosure, or both, to 

the full extent provided by 31 U.S.C. 

5318(g)(3). 

(g) Compliance. Banks shall be 

examined by FinCEN or its delegatees 

for compliance with this section. Failure 

to satisfy the requirements of this 

section may be a violation of the Bank 

Secrecy Act and of this chapter. Such 

failure may also violate provisions of 

Title 12 of the Code of Federal 

Regulations. 

PART 1021—RULES FOR CASINOS 

AND CARD CLUBS 

■ 3. The authority citation for part 1021 

is added to read as follows: 

Authority: 12 U.S.C. 1829b and 1951–1959; 

31 U.S.C. 5311–5314 and 5316–5332; title III, 

sec. 314, Pub. L. 107–56, 115 Stat. 307. 

■ 4. Section 1021.320 is amended by: 

■ a. Revising the last sentence of 

paragraph (d) 

■ b. Revising paragraph (e); 

■ c. Redesignating paragraphs (f) and (g) 

as paragraphs (g) and (h); 

■ d. Adding new paragraph (f); and 

■ e. Revising newly designated 

paragraph (g). 

§ 1021.320 Reports by casinos of 

suspicious transactions. 

* * * * * 

(d) * * * A casino shall make all 

supporting documentation available to 

FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

casino for compliance with the Bank 

Secrecy Act, or any State regulatory 

authority administering a State law that 

requires the casino to comply with the 

Bank Secrecy Act or otherwise 

authorizes the State authority to ensure 

that the casino complies with the Bank 

Secrecy Act, or any tribal regulatory 

authority administering a tribal law that 

requires the casino to comply with the 

Bank Secrecy Act or otherwise 

authorizes the tribal regulatory authority 

to ensure that the casino complies with 

the Bank Secrecy Act, upon request. 

(e) Confidentiality of SARs. A SAR, 

and any information that would reveal 

the existence of a SAR, are confidential 

and shall not be disclosed except as 

authorized in this paragraph (e). For 

purposes of this paragraph (e) only, a 

SAR shall include any suspicious 

activity report filed with FinCEN 

pursuant to any regulation in this 

chapter. 

(1) Prohibition on disclosures by 

casinos—(i) General rule. No casino, 

and no director, officer, employee, or 

agent of any casino, shall disclose a SAR 

or any information that would reveal the 

existence of a SAR. Any casino, and any 

director, officer, employee, or agent of 

any casino that is subpoenaed or 

otherwise requested to disclose a SAR 

or any information that would reveal the 

existence of a SAR, shall decline to 

produce the SAR or such information, 

citing this section and 31 U.S.C. 

5318(g)(2)(A)(i), and shall notify 

FinCEN of any such request and the 

response thereto. 

(ii) Rules of Construction. Provided 

that no person involved in any reported 


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10518 Federal Register / Vol. 76, No. 38 / Friday, February 25, 2011 / Rules and Regulations 

suspicious transaction is notified that 

the transaction has been reported, this 

paragraph (e)(1) shall not be construed 

as prohibiting: 

(A) The disclosure by a casino, or any 

director, officer, employee, or agent of a 

casino, of: 

(1) A SAR, or any information that 

would reveal the existence of a SAR, to 

FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

casino for compliance with the Bank 

Secrecy Act, or any State regulatory 

authority administering a State law that 

requires the casino to comply with the 

Bank Secrecy Act or otherwise 

authorizes the State authority to ensure 

that the casino complies with the Bank 

Secrecy Act, or any tribal regulatory 

authority administering a tribal law that 

requires the casino to comply with the 

Bank Secrecy Act or otherwise 

authorizes the tribal regulatory authority 

to ensure that casino complies with the 

Bank Secrecy Act; or 

(2) The underlying facts, transactions, 

and documents upon which a SAR is 

based, including but not limited to, 

disclosures to another financial 

institution, or any director, officer, 

employee, or agent of a financial 

institution, for the preparation of a joint 

SAR. 

(B) The sharing by a casino, or any 

director, officer, employee, or agent of 

the casino, of a SAR, or any information 

that would reveal the existence of a 

SAR, within the casino’s corporate 

organizational structure for purposes 

consistent with Title II of the Bank 

Secrecy Act as determined by regulation 

or in guidance. 

(2) Prohibition on disclosures by 

government authorities. A Federal, 

State, local, territorial, or Tribal 

government authority, or any director, 

officer, employee, or agent of any of the 

foregoing, shall not disclose a SAR, or 

any information that would reveal the 

existence of a SAR, except as necessary 

to fulfill official duties consistent with 

Title II of the Bank Secrecy Act (BSA). 

For purposes of this section, ‘‘official 

duties’’ shall not include the disclosure 

of a SAR, or any information that would 

reveal the existence of a SAR, in 

response to a request for disclosure of 

non-public information or a request for 

use in a private legal proceeding, 

including a request pursuant to 31 CFR 

1.11. 

(f) Limitation on liability. A casino, 

and any director, officer, employee, or 

agent of any casino, that makes a 

voluntary disclosure of any possible 

violation of law or regulation to a 

government agency or makes a 

disclosure pursuant to this section or 

any other authority, including a 

disclosure made jointly with another 

institution, shall be protected from 

liability to any person for any such 

disclosure, or for failure to provide 

notice of such disclosure to any person 

identified in the disclosure, or both, to 

the full extent provided by 31 U.S.C. 

5318(g)(3). 

(g) Compliance. Casinos shall be 

examined by FinCEN or its delegatees 

for compliance with this section. Failure 

to satisfy the requirements of this 

section may be a violation of the Bank 

Secrecy Act and of this chapter. 

* * * * * 

PART 1022—RULES FOR MONEY 

SERVICES BUSINESSES 

■ 5. The authority citation for part 1022 

is added to read as follows: 

Authority: 12 U.S.C. 1829b and 1951– 

1959; 31 U.S.C. 5311–5314 and 5316–5332; 

title III, sec. 314, Pub. L. 107–56, 115 Stat. 

307. 

■ 6. Section 1022.320 is amended by: 

■ a. Revising the last sentence of 

paragraph (c); 

■ b. Revising paragraph (d); 

■ c. Redesignating paragraphs (e) and (f) 

as paragraphs (f) and (g); 

■ d. Adding new paragraph (e); and 

■ e. Revising newly designated 

paragraph (f), to read as follows: 

§ 1022.320 Reports by money services 

businesses of suspicious transactions. 

* * * * * 

(c) * * * A money services business 

shall make all supporting 

documentation available to FinCEN or 

any Federal, State, or local law 

enforcement agency, or any Federal 

regulatory authority that examines the 

money services business for compliance 

with the Bank Secrecy Act, or any State 

regulatory authority administering a 

State law that requires the money 

services business to comply with the 

Bank Secrecy Act or otherwise 

authorizes the State authority to ensure 

that the money services business 

complies with the Bank Secrecy Act. 

(d) Confidentiality of SARs. A SAR, 

and any information that would reveal 

the existence of a SAR, are confidential 

and shall not be disclosed except as 

authorized in this paragraph (d). For 

purposes of this paragraph (d) only, a 

SAR shall include any suspicious 

activity report filed with FinCEN 

pursuant to any regulation in this 

chapter. 

(1) Prohibition on disclosures by 

money services businesses—(i) General 

rule. No money services business, and 

no director, officer, employee, or agent 

of any money services business, shall 

disclose a SAR or any information that 

would reveal the existence of a SAR. 

Any money services business, and any 

director, officer, employee, or agent of 

any money services business that is 

subpoenaed or otherwise requested to 

disclose a SAR or any information that 

would reveal the existence of a SAR, 

shall decline to produce the SAR or 

such information, citing this section and 

31 U.S.C. 5318(g)(2)(A)(i), and shall 

notify FinCEN of any such request and 

the response thereto. 

(ii) Rules of Construction. Provided 

that no person involved in any reported 

suspicious transaction is notified that 

the transaction has been reported, this 

paragraph (d)(1) shall not be construed 

as prohibiting: 

(A) The disclosure by a money 

services business, or any director, 

officer, employee, or agent of a money 

services business, of: 

(1) A SAR, or any information that 

would reveal the existence of a SAR, to 

FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

money services business for compliance 

with the Bank Secrecy Act, or any State 

regulatory authority administering a 

State law that requires the money 

services business to comply with the 

Bank Secrecy Act or otherwise 

authorizes the State authority to ensure 

that the money services business 

complies with the Bank Secrecy Act; or 

(2) The underlying facts, transactions, 

and documents upon which a SAR is 

based, including but not limited to, 

disclosures to another financial 

institution, or any director, officer, 

employee, or agent of a financial 

institution, for the preparation of a joint 

SAR. 

(B) The sharing by a money services 

business, or any director, officer, 

employee, or agent of the money 

services business, of a SAR, or any 

information that would reveal the 

existence of a SAR, within the money 

services business’s corporate 

organizational structure for purposes 

consistent with Title II of the Bank 

Secrecy Act as determined by regulation 

or in guidance. 

(2) Prohibition on disclosures by 

government authorities. A Federal, 

State, local, territorial, or Tribal 

government authority, or any director, 

officer, employee, or agent of any of the 

foregoing, shall not disclose a SAR, or 

any information that would reveal the 

existence of a SAR, except as necessary 

to fulfill official duties consistent with 

Title II of the Bank Secrecy Act. For 

purposes of this section, ‘‘official duties’’ 

shall not include the disclosure of a 

SAR, or any information that would 


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Federal Register / Vol. 76, No. 38 / Friday, February 25, 2011 / Rules and Regulations 10519 

reveal the existence of a SAR, in 

response to a request for disclosure of 

non-public information or a request for 

use in a private legal proceeding, 

including a request pursuant to 31 CFR 

1.11. 

(e) Limitation on liability. A money 

services business, and any director, 

officer, employee, or agent of any money 

services business, that makes a 

voluntary disclosure of any possible 

violation of law or regulation to a 

government agency or makes a 

disclosure pursuant to this section or 

any other authority, including a 

disclosure made jointly with another 

institution, shall be protected from 

liability to any person for any such 

disclosure, or for failure to provide 

notice of such disclosure to any person 

identified in the disclosure, or both, to 

the full extent provided by 31 U.S.C. 

5318(g)(3). 

(f) Compliance. Money services 

businesses shall be examined by 

FinCEN or its delegatees for compliance 

with this section. Failure to satisfy the 

requirements of this section may be a 

violation of the Bank Secrecy Act and of 

this chapter. 

* * * * * 

PART 1023—RULES FOR BROKERS 

OR DEALERS IN SECURITIES 

■ 7. The authority citation for part 1023 

is added to read as follows: 

Authority: 12 U.S.C. 1829b and 1951–1959; 

31 U.S.C. 5311–5314 and 5316–5332; title III, 

sec. 314, Pub. L. 107–56, 115 Stat. 307. 

■ 8. Section 1023.320 is amended by 

revising the last sentence in paragraph 

(d), and by revising paragraphs (e), (f), 

and (g) to read as follows: 

§ 1023.320 Reports by brokers or dealers 

in securities of suspicious transactions. 

* * * * * 

(d) * * * A broker-dealer shall make 

all supporting documentation available 

to FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

broker-dealer for compliance with the 

Bank Secrecy Act, upon request; or to 

any SRO that examines the brokerdealer for compliance with the 

requirements of this section, upon the 

request of the Securities and Exchange 

Commission. 

(e) Confidentiality of SARs. A SAR, 

and any information that would reveal 

the existence of a SAR, are confidential 

and shall not be disclosed except as 

authorized in this paragraph (e). For 

purposes of this paragraph (e) only, a 

SAR shall include any suspicious 

activity report filed with FinCEN 

pursuant to any regulation in this 

chapter. 

(1) Prohibition on disclosures by 

brokers or dealers in securities. (i) 

General rule. No broker-dealer, and no 

director, officer, employee, or agent of 

any broker-dealer, shall disclose a SAR 

or any information that would reveal the 

existence of a SAR. Any broker-dealer, 

and any director, officer, employee, or 

agent of any broker-dealer that is 

subpoenaed or otherwise requested to 

disclose a SAR or any information that 

would reveal the existence of a SAR, 

shall decline to produce the SAR or 

such information, citing this section and 

31 U.S.C. 5318(g)(2)(A)(i), and shall 

notify FinCEN of any such request and 

the response thereto. 

(ii) Rules of Construction. Provided 

that no person involved in any reported 

suspicious transaction is notified that 

the transaction has been reported, this 

paragraph (e)(1) shall not be construed 

as prohibiting: 

(A) The disclosure by a broker-dealer, 

or any director, officer, employee, or 

agent of a broker-dealer, of: 

(1) A SAR, or any information that 

would reveal the existence of a SAR, to 

FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

broker-dealer for compliance with the 

Bank Secrecy Act; or to any SRO that 

examines the broker-dealer for 

compliance with the requirements of 

this section, upon the request of the 

Securities Exchange Commission; or 

(2) The underlying facts, transactions, 

and documents upon which a SAR is 

based, including but not limited to, 

disclosures: 

(i) To another financial institution, or 

any director, officer, employee, or agent 

of a financial institution, for the 

preparation of a joint SAR; or 

(ii) In connection with certain 

employment references or termination 

notices, to the full extent authorized in 

31 U.S.C. 5318(g)(2)(B); or 

(B) The sharing by a broker-dealer, or 

any director, officer, employee, or agent 

of the broker-dealer, of a SAR, or any 

information that would reveal the 

existence of a SAR, within the brokerdealer’s corporate organizational 

structure for purposes consistent with 

Title II of the Bank Secrecy Act as 

determined by regulation or in 

guidance. 

(2) Prohibition on disclosures by 

government authorities. A Federal, 

State, local, territorial, or Tribal 

government authority, or any director, 

officer, employee, or agent of any of the 

foregoing, shall not disclose a SAR, or 

any information that would reveal the 

existence of a SAR, except as necessary 

to fulfill official duties consistent with 

Title II of the Bank Secrecy Act. For 

purposes of this section, ‘‘official duties’’ 

shall not include the disclosure of a 

SAR, or any information that would 

reveal the existence of a SAR, in 

response to a request for disclosure of 

non-public information or a request for 

use in a private legal proceeding, 

including a request pursuant to 31 CFR 

1.11. 

(3) Prohibition on disclosures by SelfRegulatory Organizations. Any selfregulatory organization registered with 

the Securities and Exchange 

Commission, or any director, officer, 

employee, or agent of any of the 

foregoing, shall not disclose a SAR, or 

any information that would reveal the 

existence of a SAR except as necessary 

to fulfill self-regulatory duties with the 

consent of the Securities Exchange 

Commission, in a manner consistent 

with Title II of the Bank Secrecy Act. 

For purposes of this section, ‘‘selfregulatory duties’’ shall not include the 

disclosure of a SAR, or any information 

that would reveal the existence of a 

SAR, in response to a request for 

disclosure of non-public information or 

a request for use in a private legal 

proceeding. 

(f) Limitation on liability. A brokerdealer, and any director, officer, 

employee, or agent of any broker-dealer, 

that makes a voluntary disclosure of any 

possible violation of law or regulation to 

a government agency or makes a 

disclosure pursuant to this section or 

any other authority, including a 

disclosure made jointly with another 

institution, shall be protected from 

liability to any person for any such 

disclosure, or for failure to provide 

notice of such disclosure to any person 

identified in the disclosure, or both, to 

the full extent provided by 31 U.S.C. 

5318(g)(3). 

(g) Compliance. Broker-dealers shall 

be examined by FinCEN or its 

delegatees for compliance with this 

section. Failure to satisfy the 

requirements of this section may be a 

violation of the Bank Secrecy Act and of 

this chapter. 

* * * * * 

PART 1024—RULES FOR MUTUAL 

FUNDS 

■ 9. The authority citation for part 1024 

is added to read as follows: 

Authority: 12 U.S.C. 1829b and 1951– 

1959; 31 U.S.C. 5311–5314 and 5316–5332; 

title III, sec. 314, Pub. L. 107–56, 115 Stat. 

307. 

■ 10. Section 1024.320 is amended by: 


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10520 Federal Register / Vol. 76, No. 38 / Friday, February 25, 2011 / Rules and Regulations 

■ a. Revising the last sentence of 

paragraph (c); and 

■ b. Revising paragraphs (d), (e), and (f), 

to read as follows: 

§ 1024.320 Reports by mutual funds of 

suspicious transactions. 

* * * * * 

(c) * * * The mutual fund shall make 

all supporting documentation available 

to FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

mutual fund for compliance with the 

Bank Secrecy Act, upon request. 

(d) Confidentiality of SARs. A SAR, 

and any information that would reveal 

the existence of a SAR, are confidential 

and shall not be disclosed except as 

authorized in this paragraph (d). For 

purposes of this paragraph (d) only, a 

SAR shall include any suspicious 

activity report filed with FinCEN 

pursuant to any regulation in this 

chapter. 

(1) Prohibition on disclosures by 

mutual funds—(i) General rule. No 

mutual fund, and no director, officer, 

employee, or agent of any mutual fund, 

shall disclose a SAR or any information 

that would reveal the existence of a 

SAR. Any mutual fund, and any 

director, officer, employee, or agent of 

any mutual fund that is subpoenaed or 

otherwise requested to disclose a SAR 

or any information that would reveal the 

existence of a SAR, shall decline to 

produce the SAR or such information, 

citing this section and 31 U.S.C. 

5318(g)(2)(A)(i), and shall notify 

FinCEN of any such request and the 

response thereto. 

(ii) Rules of construction. Provided 

that no person involved in any reported 

suspicious transaction is notified that 

the transaction has been reported, this 

paragraph (d)(1) shall not be construed 

as prohibiting: 

(A) The disclosure by a mutual fund, 

or any director, officer, employee, or 

agent of a mutual fund, of: 

(1) A SAR, or any information that 

would reveal the existence of a SAR, to 

FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

mutual fund for compliance with the 

Bank Secrecy Act; or 

(2) The underlying facts, transactions, 

and documents upon which a SAR is 

based, including but not limited to, 

disclosures to another financial 

institution, or any director, officer, 

employee, or agent of a financial 

institution, for the preparation of a joint 

SAR; or 

(B) The sharing by a mutual fund, or 

any director, officer, employee, or agent 

of the mutual fund, of a SAR, or any 

information that would reveal the 

existence of a SAR, within the mutual 

fund’s corporate organizational 

structure for purposes consistent with 

Title II of the Bank Secrecy Act as 

determined by regulation or in 

guidance. 

(2) Prohibition on disclosures by 

government authorities. A Federal, 

State, local, territorial, or Tribal 

government authority, or any director, 

officer, employee, or agent of any of the 

foregoing, shall not disclose a SAR, or 

any information that would reveal the 

existence of a SAR, except as necessary 

to fulfill official duties consistent with 

Title II of the Bank Secrecy Act. For 

purposes of this section, ‘‘official duties’’ 

shall not include the disclosure of a 

SAR, or any information that would 

reveal the existence of a SAR, in 

response to a request for disclosure of 

non-public information or a request for 

use in a private legal proceeding, 

including a request pursuant to 31 CFR 

1.11. 

(e) Limitation on liability. A mutual 

fund, and any director, officer, 

employee, or agent of any mutual fund, 

that makes a voluntary disclosure of any 

possible violation of law or regulation to 

a government agency or makes a 

disclosure pursuant to this section or 

any other authority, including a 

disclosure made jointly with another 

institution, shall be protected from 

liability to any person for any such 

disclosure, or for failure to provide 

notice of such disclosure to any person 

identified in the disclosure, or both, to 

the full extent provided by 31 U.S.C. 

5318(g)(3). 

(f) Compliance. Mutual funds shall be 

examined by FinCEN or its delegatees 

for compliance with this section. Failure 

to satisfy the requirements of this 

section may be a violation of the Bank 

Secrecy Act and of this chapter. 

* * * * * 

PART 1025—RULES FOR INSURANCE 

COMPANIES 

■ 11. The authority citation for part 

1025 is added to read as follows: 

Authority: 12 U.S.C. 1829b and 1951–1959; 

31 U.S.C. 5311–5314 and 5316–5332; title III, 

sec. 314, Pub. L. 107–56, 115 Stat. 307. 

■ 12. Section 1025.320 is amended by: 

■ a. Revising the last sentence of 

paragraph (d); 

■ b. Revising paragraph (e); 

■ c. Redesignating paragraphs (f) 

through (h) as paragraphs (g) through (i); 

■ d. Adding new paragraph (f); and 

■ e. Revising newly designated 

paragraph (g), to read as follows: 

§ 1025.320 Reports by insurance 

companies of suspicious transactions. 

* * * * * 

(d) * * * An insurance company 

shall make all supporting 

documentation available to FinCEN or 

any Federal, State, or local law 

enforcement agency, or any Federal 

regulatory authority that examines the 

insurance company for compliance with 

the Bank Secrecy Act, or any State 

regulatory authority administering a 

State law that requires the insurance 

company to comply with the Bank 

Secrecy Act or otherwise authorizes the 

State authority to ensure that the 

institution complies with the Bank 

Secrecy Act, upon request. 

(e) Confidentiality of SARs. A SAR, 

and any information that would reveal 

the existence of a SAR, are confidential 

and shall not be disclosed except as 

authorized in this paragraph (e). For 

purposes of this paragraph (e) only, a 

SAR shall include any suspicious 

activity report filed with FinCEN 

pursuant to any regulation in this 

chapter. 

(1) Prohibition on disclosures by 

insurance companies—(i) General rule. 

No insurance company, and no director, 

officer, employee, or agent of any 

insurance company, shall disclose a 

SAR or any information that would 

reveal the existence of a SAR. Any 

insurance company, and any director, 

officer, employee, or agent of any 

insurance company that is subpoenaed 

or otherwise requested to disclose a 

SAR or any information that would 

reveal the existence of a SAR, shall 

decline to produce the SAR or such 

information, citing this section and 31 

U.S.C. 5318(g)(2)(A)(i), and shall notify 

FinCEN of any such request and the 

response thereto. 

(ii) Rules of Construction. Provided 

that no person involved in any reported 

suspicious transaction is notified that 

the transaction has been reported, this 

paragraph (e)(1) shall not be construed 

as prohibiting: 

(A) The disclosure by an insurance 

company, or any director, officer, 

employee, or agent of an insurance 

company, of: 

(1) A SAR, or any information that 

would reveal the existence of a SAR, to 

FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

insurance company for compliance with 

the Bank Secrecy Act, or any State 

regulatory authority administering a 

State law that requires the insurance 

company to comply with the Bank 

Secrecy Act or otherwise authorizes the 

State authority to ensure that the 


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Federal Register / Vol. 76, No. 38 / Friday, February 25, 2011 / Rules and Regulations 10521 

institution complies with the Bank 

Secrecy Act; or 

(2) The underlying facts, transactions, 

and documents upon which a SAR is 

based, including but not limited to, 

disclosures to another financial 

institution, or any director, officer, 

employee, or agent of a financial 

institution, for the preparation of a joint 

SAR. 

(B) The sharing by an insurance 

company, or any director, officer, 

employee, or agent of the insurance 

company, of a SAR, or any information 

that would reveal the existence of a 

SAR, within the insurance company’s 

corporate organizational structure for 

purposes consistent with Title II of the 

Bank Secrecy Act as determined by 

regulation or in guidance. 

(2) Prohibition on disclosures by 

government authorities. A Federal, 

State, local, territorial, or Tribal 

government authority, or any director, 

officer, employee, or agent of any of the 

foregoing, shall not disclose a SAR, or 

any information that would reveal the 

existence of a SAR, except as necessary 

to fulfill official duties consistent with 

Title II of the Bank Secrecy Act. For 

purposes of this section, ‘‘official duties’’ 

shall not include the disclosure of a 

SAR, or any information that would 

reveal the existence of a SAR, in 

response to a request for disclosure of 

non-public information or a request for 

use in a private legal proceeding, 

including a request pursuant to 31 CFR 

1.11. 

(f) Limitation on liability. An 

insurance company, and any director, 

officer, employee, or agent of any 

insurance company, that makes a 

voluntary disclosure of any possible 

violation of law or regulation to a 

government agency or makes a 

disclosure pursuant to this section or 

any other authority, including a 

disclosure made jointly with another 

institution, shall be protected from 

liability to any person for any such 

disclosure, or for failure to provide 

notice of such disclosure to any person 

identified in the disclosure, or both, to 

the full extent provided by 31 U.S.C. 

5318(g)(3). 

(g) Compliance. Insurance companies 

shall be examined by FinCEN or its 

delegatees for compliance with this 

section. Failure to satisfy the 

requirements of this section may be a 

violation of the Bank Secrecy Act and of 

this chapter. 

* * * * * 

PART 1026—RULES FOR FUTURES 

COMMISSION MERCHANTS AND 

INTRODUCING BROKERS IN 

COMMODITIES 

■ 13. The authority citation for part 

1026 is added to read as follows: 

Authority: 12 U.S.C. 1829b and 1951–1959; 

31 U.S.C. 5311–5314 and 5316–5332; title III, 

sec. 314, Pub. L. 107–56, 115 Stat. 307. 

■ 14. Sections 1026.311, 1026.312, 

1026.313 and 1026.314 are added to 

Subpart C to read as follows: 

§ 1026.311 Filing obligations. 

Refer to § 1010.311 of this Chapter for 

reports of transactions in currency filing 

obligations for futures commission 

merchants and introducing brokers in 

commodities. 

§ 1026.312 Identification required. 

Refer to § 1010.312 of this Chapter for 

identification requirements for reports 

of transactions in currency filed by 

futures commission merchants and 

introducing brokers in commodities. 

§ 1026.313 Aggregation. 

Refer to § 1010.313 of this Chapter for 

reports of transactions in currency 

aggregation requirements for futures 

commission merchants and introducing 

brokers in commodities. 

§ 1026.314 Structured transactions. 

Refer to § 1010.314 of this Chapter for 

rules regarding structured transactions 

for futures commission merchants and 

introducing brokers in commodities. 

■ 15. Section 1026.320 is amended by 

revising the last sentence in paragraph 

(d), and by revising paragraphs (e), (f), 

and (g) to read as follows: 

§ 1026.320 Reports by futures commission 

merchants and introducing brokers in 

commodities of suspicious transactions. 

* * * * * 

(d) * * * An FCM or IB–C shall make 

all supporting documentation available 

to FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

FCM or IB–C for compliance with the 

BSA, upon request; or to any registered 

futures association or registered entity 

(as defined in the Commodity Exchange 

Act, 7 U.S.C. 21 and 7 U.S.C. 1(a)(29)) 

(collectively, a self-regulatory 

organization (‘‘SRO’’)) that examines the 

FCM or IB–C for compliance with the 

requirements of this section, upon the 

request of the Commodity Futures 

Trading Commission. 

(e) Confidentiality of SARs. A SAR, 

and any information that would reveal 

the existence of a SAR, are confidential 

and shall not be disclosed except as 

authorized in this paragraph (e). For 

purposes of this paragraph (e) only, a 

SAR shall include any suspicious 

activity report filed with FinCEN 

pursuant to any regulation in this 

chapter. 

(1) Prohibition on disclosures by 

futures commission merchants and 

introducing brokers in commodities—(i) 

General rule. No FCM or IB–C, and no 

director, officer, employee, or agent of 

any FCM or IB–C, shall disclose a SAR 

or any information that would reveal the 

existence of a SAR. Any FCM or IB–C, 

and any director, officer, employee, or 

agent of any FCM or IB–C that is 

subpoenaed or otherwise requested to 

disclose a SAR or any information that 

would reveal the existence of a SAR, 

shall decline to produce the SAR or 

such information, citing this section and 

31 U.S.C. 5318(g)(2)(A)(i), and shall 

notify FinCEN of any such request and 

the response thereto. 

(ii) Rules of Construction. Provided 

that no person involved in any reported 

suspicious transaction is notified that 

the transaction has been reported, this 

paragraph (e)(1) shall not be construed 

as prohibiting: 

(A) The disclosure by an FCM or IB– 

C, or any director, officer, employee, or 

agent of an FCM or IB–C, of: 

(1) A SAR, or any information that 

would reveal the existence of a SAR, to 

FinCEN or any Federal, State, or local 

law enforcement agency, or any Federal 

regulatory authority that examines the 

FCM or IB–C for compliance with the 

BSA; or to any SRO that examines the 

FCM or IB–C for compliance with the 

requirements of this section, upon the 

request of the Commodity Futures 

Trading Commission; or 

(2) The underlying facts, transactions, 

and documents upon which a SAR is 

based, including but not limited to, 

disclosures: 

(i) To another financial institution, or 

any director, officer, employee, or agent 

of a financial institution, for the 

preparation of a joint SAR; or 

(ii) In connection with certain 

employment references or termination 

notices, to the full extent authorized in 

31 U.S.C. 5318(g)(2)(B); or 

(B) The sharing by an FCM or IB–C, 

or any director, officer, employee, or 

agent of the FCM or IB–C, of a SAR, or 

any information that would reveal the 

existence of a SAR, within the FCM’s or 

IB–C’s corporate organizational 

structure for purposes consistent with 

Title II of the BSA as determined by 

regulation or in guidance. 

(2) Prohibition on disclosures by 

government authorities. A Federal, 

State, local, territorial, or Tribal 

government authority, or any director, 


srobinson on DSKHWCL6B1PROD with RULES
10522 Federal Register / Vol. 76, No. 38 / Friday, February 25, 2011 / Rules and Regulations 

officer, employee, or agent of any of the 

foregoing, shall not disclose a SAR, or 

any information that would reveal the 

existence of a SAR, except as necessary 

to fulfill official duties consistent with 

Title II of the BSA. For purposes of this 

section, ‘‘official duties’’ shall not 

include the disclosure of a SAR, or any 

information that would reveal the 

existence of a SAR, in response to a 

request for disclosure of non-public 

information or a request for use in a 

private legal proceeding, including a 

request pursuant to 31 CFR 1.11. 

(3) Prohibition on disclosures by SelfRegulatory Organizations. Any selfregulatory organization registered with 

or designated by the Commodity 

Futures Trading Commission, or any 

director, officer, employee, or agent of 

any of the foregoing, shall not disclose 

a SAR, or any information that would 

reveal the existence of a SAR except as 

necessary to fulfill self-regulatory duties 

upon the request of the Commodity 

Futures Trading Commission, in a 

manner consistent with Title II of the 

BSA. For purposes of this section, ‘‘selfregulatory duties’’ shall not include the 

disclosure of a SAR, or any information 

that would reveal the existence of a 

SAR, in response to a request for 

disclosure of non-public information or 

a request for use in a private legal 

proceeding. 

(f) Limitation on liability. An FCM or 

IB–C, and any director, officer, 

employee, or agent of any FCM or IB– 

C, that makes a voluntary disclosure of 

any possible violation of law or 

regulation to a government agency or 

makes a disclosure pursuant to this 

section or any other authority, including 

a disclosure made jointly with another 

institution, shall be protected from 

liability to any person for any such 

disclosure, or for failure to provide 

notice of such disclosure to any person 

identified in the disclosure, or both, to 

the full extent provided by 31 U.S.C. 

5318(g)(3). 

(g) Compliance. FCMs or IB–Cs shall 

be examined by FinCEN or its 

delegatees for compliance with this 

section. Failure to satisfy the 

requirements of this section may be a 

violation of the Bank Secrecy Act and of 

this chapter. 

* * * * * 

PART 1027—RULES FOR DEALERS IN 

PRECIOUS METALS, PRECIOUS 

STONES, OR JEWELS 

■ 16. The authority citation for part 

1027 is added to read as follows: 

Authority: 12 U.S.C. 1829b and 1951–1959; 

31 U.S.C. 5311–5314 and 5316–5332; title III, 

sec. 314, Pub. L. 107–56, 115 Stat. 307. 

PART 1028—RULES FOR OPERATORS 

OF CREDIT CARD SYSTEMS 

■ 17. The authority citation for part 

1028 is added to read as follows: 

Authority: 12 U.S.C. 1829b and 1951–1959; 

31 U.S.C. 5311–5314 and 5316–5332; title III, 

sec. 314, Pub. L. 107–56, 115 Stat. 307. 

Dated: February 16, 2011. 

James H. Freis, Jr., 

Director, Financial Crimes Enforcement 

Network. 

[FR Doc. 2011–4061 Filed 2–24–11; 8:45 am] 

BILLING CODE 4810–02–P 

DEPARTMENT OF DEFENSE 

Department of the Army, Corps of 

Engineers 

33 CFR Part 334 

Naval Surface Warfare Center, Upper 

Machodoc Creek and the Potomac 

River, Dahlgren, VA; Danger Zone 

AGENCY: U.S. Army Corps of Engineers, 

DoD. 

ACTION: Final rule. 

SUMMARY: The U.S. Army Corps of 

Engineers is amending its regulations 

for the existing danger zone in the 

vicinity of Naval Surface Warfare 

Center, Dahlgren, in King George 

County, Virginia. The amendment 

changes the description of the 

hazardous operations in the area, the 

hours of operation, and expands the 

boundaries of a portion of the danger 

zone. The amendment is necessary to 

protect the public from potentially 

hazardous conditions which may exist 

as a result of use of the areas by the 

United States Navy. 

DATES: Effective Date: March 28, 2011. 

FOR FURTHER INFORMATION CONTACT: Mr. 

David B. Olson, Headquarters, 

Operations and Regulatory Community 

of Practice, Washington, DC at 202–761– 

4922 or by e-mail at 

david.b.olson@usace.army.mil, or Mr. 

Robert Berg, Corps of Engineers, Norfolk 

District, Regulatory Branch, at 757–201– 

7793 or by e-mail at 

robert.a.berg@usace.army.mil. 

SUPPLEMENTARY INFORMATION: Pursuant 

to its authorities in Section 7 of the 

Rivers and Harbors Act of 1917 (40 Stat. 

266; 33 U.S.C. 1) and Chapter XIX of the 

Army Appropriations Act of 1919 (40 

Stat. 892; 33 U.S.C. 3), the Corps is 

amending the danger zone regulations at 

33 CFR 334.230 to: Expand the 

description of continuing hazardous 

operations in the danger zone to include 

firing of large or small caliber guns and 

projectiles, aerial bombing, directed 

energy technology, and manned or 

unmanned water craft operations; 

expand the Middle Danger Zone farther 

into Upper Machodoc Creek where 

operations involving directed energy, 

watercraft maneuvers and transportation 

of explosives are conducted; add a 100- 

yard buffer to prevent public contact 

with unexploded ordinance along the 

shoreline of the Naval Facility within 

the Middle Danger Zone; and extend 

normal hours of operation of hazardous 

operations from 4 p.m. to 5 p.m. The 

danger zone represents a public safety 

buffer beyond the physical boundaries 

of the test range to further reduce the 

safety threat to the boating public. 

The proposed rule was published in 

the November 10, 2010, issue of the 

Federal Register (75 FR 69033) with the 

docket number COE–2010–0038 and no 

comments were received. 

Procedural Requirements 

a. Review Under Executive Order 12866 

This final rule is issued with respect 

to a military function of the Defense 

Department and the provisions of 

Executive Order 12866 do not apply. 

b. Review Under the Regulatory 

Flexibility Act 

This final rule has been reviewed 

under the Regulatory Flexibility Act 

(Pub. L. 96–354) which requires the 

preparation of a regulatory flexibility 

analysis for any regulation that will 

have a significant economic impact on 

a substantial number of small entities 

(i.e., small businesses and small 

governments). The economic impact of 

the amendment to this danger zone does 

not have an effect on the public, does 

not result in a navigational hazard, or 

interfere with existing waterway traffic. 

Therefore, this final rule does not have 

a significant economic impact on small 

entities. 

c. Review Under the National 

Environmental Policy Act 

Due to the administrative nature of 

this action and because there is no 

intended change in the use of the area, 

the Corps determined the amendment 

does not have a significant impact on 

the quality of the human environment 

and, therefore, preparation of an 

environmental impact statement is not 

required. An environmental assessment 

was prepared after the public notice 

period closed. The environmental 

assessment may be reviewed at the 

District office listed at the end of the 

FOR FURTHER INFORMATION CONTACT

section, above. 


srobinson on DSKHWCL6B1PROD with RULES