This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

6572 

Vol. 86, No. 13 

Friday, January 22, 2021 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Parts 21 and 163 

[Docket No. OCC–2020–0037] 

RIN 1557–AE77 

Exemptions to Suspicious Activity 

Report Requirements 

AGENCY: Office of the Comptroller of the 

Currency (OCC), Treasury (USDT). 

ACTION: Notice of proposed rulemaking 

with request for public comment. 

SUMMARY: The OCC is inviting comment 

on a proposed rule that would modify 

the requirements for national banks and 

federal savings associations to file 

Suspicious Activity Reports. The 

proposed rule would amend the OCC’s 

Suspicious Activity Report regulations 

to allow the OCC to issue exemptions 

from the requirements of those 

regulations. The proposed rule makes it 

possible for the OCC to grant relief to 

national banks or federal savings 

associations that develop innovative 

solutions intended to meet Bank 

Secrecy Act requirements more 

efficiently and effectively. 

DATES: Comments must be received by 

February 22, 2021. 

ADDRESSES: Commenters are encouraged 

to submit comments through the Federal 

eRulemaking Portal, if possible. Please 

use the title ‘‘Exemptions to Suspicious 

Activity Report Requirements’’ to 

facilitate the organization and 

distribution of the comments. You may 

submit comments by any of the 

following methods: 

• Federal eRulemaking Portal— 

Regulations.gov Classic or 

Regulations.gov Beta: 

Regulations.gov Classic: Go to https:// 

www.regulations.gov/. Enter ‘‘Docket ID 

OCC–2020–0037’’ in the Search Box and 

click ‘‘Search.’’ Click on ‘‘Comment 

Now’’ to submit public comments. For 

help with submitting effective 

comments please click on ‘‘View 

Commenter’s Checklist.’’ Click on the 

‘‘Help’’ tab on the Regulations.gov home 

page to get information on using 

Regulations.gov, including instructions 

for submitting public comments. 

Regulations.gov Beta: Go to https://

beta.regulations.gov/ or click ‘‘Visit 

New Regulations.gov Site’’ from the 

Regulations.gov Classic homepage. 

Enter ‘‘Docket ID OCC–2020–0037’’ in 

the Search Box and click ‘‘Search.’’ 

Public comments can be submitted via 

the ‘‘Comment’’ box below the 

displayed document information or by 

clicking on the document title and then 

clicking the ‘‘Comment’’ box on the topleft side of the screen. For help with 

submitting effective comments please 

click on ‘‘Commenter’s Checklist.’’ For 

assistance with the Regulations.gov Beta 

site, please call (877) 378–5457 (toll 

free) or (703) 454–9859 Monday–Friday, 

9 a.m.–5 p.m. ET or email regulations@

erulemakinghelpdesk.com. 

• Mail: Chief Counsel’s Office, 

Attention: Comment Processing, Office 

of the Comptroller of the Currency, 400 

7th Street SW, Suite 3E–218, 

Washington, DC 20219. 

• Hand Delivery/Courier: 400 7th 

Street SW, Suite 3E–218, Washington, 

DC 20219. 

Instructions: You must include 

‘‘OCC’’ as the agency name and ‘‘Docket 

ID OCC–2020–0037’’ in your comment. 

In general, the OCC will enter all 

comments received into the docket and 

publish the comments on the 

Regulations.gov website without 

change, including any business or 

personal information provided such as 

name and address information, email 

addresses, or phone numbers. 

Comments received, including 

attachments and other supporting 

materials, are part of the public record 

and subject to public disclosure. Do not 

include any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

You may review comments and other 

related materials that pertain to this 

rulemaking action by the following 

methods: 

• Viewing Comments Electronically— 

Regulations.gov Classic or 

Regulations.gov Beta: 

Regulations.gov Classic: Go to https:// 

www.regulations.gov/. Enter ‘‘Docket ID 

OCC–2020–0037’’ in the Search box and 

click ‘‘Search.’’ Click on ‘‘Open Docket 

Folder’’ on the right side of the screen. 

Comments and supporting materials can 

be viewed and filtered by clicking on 

‘‘View all documents and comments in 

this docket’’ and then using the filtering 

tools on the left side of the screen. Click 

on the ‘‘Help’’ tab on the 

Regulations.gov home page to get 

information on using Regulations.gov. 

The docket may be viewed after the 

close of the comment period in the same 

manner as during the comment period. 

Regulations.gov Beta: Go to https://

beta.regulations.gov/ or click ‘‘Visit 

New Regulations.gov Site’’ from the 

Regulations.gov Classic homepage. 

Enter ‘‘Docket ID OCC–2020–0037’’ in 

the Search Box and click ‘‘Search.’’ 

Click on the ‘‘Comments’’ tab. 

Comments can be viewed and filtered 

by clicking on the ‘‘Sort By’’ drop-down 

on the right side of the screen or the 

‘‘Refine Results’’ options on the left side 

of the screen. Supporting materials can 

be viewed by clicking on the 

‘‘Documents’’ tab and filtered by 

clicking on the ‘‘Sort By’’ drop-down on 

the right side of the screen or the 

‘‘Refine Results’’ options on the left side 

of the screen.’’ For assistance with the 

Regulations.gov Beta site, please call 

(877) 378–5457 (toll free) or (703) 454– 

9859 Monday–Friday, 9 a.m.–5 p.m. ET 

or email regulations@

erulemakinghelpdesk.com. 

The docket may be viewed after the 

close of the comment period in the same 

manner as during the comment period. 

FOR FURTHER INFORMATION CONTACT: Jim 

Vivenzio, Senior Counsel; Jina Cheon, 

Counsel; Henry Barkhausen, Counsel; or 

Scott Burnett, Counsel, Chief Counsel’s 

Office (202) 649–5490; Office of the 

Comptroller of the Currency, 400 7th 

Street SW, Washington, DC 20219. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

OCC regulations require national 

banks and federal savings associations 

to file Suspicious Activity Reports 

(SARs) under certain conditions. These 

regulations also provide for: (i) Board of 

director notification; (ii) filing 

exceptions; (iii) SAR confidentiality; (iv) 

recordkeeping requirements; (v) 

supporting documentation 

requirements; and (vi) limitations on 

liability. Requirements related to SARs 

are codified at 12 CFR 21.11 for national 

banks and 12 CFR 163.180 for federal 

savings associations. This proposed rule 


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Federal Register / Vol. 86, No. 13 / Friday, January 22, 2021 / Proposed Rules 6573 

1The OCC first codified this requirement in 1971 

at 12 CFR 7.5225, which required national banks to 

submit a report to the OCC, the FBI, the U.S. 

attorney for the bank’s district, and the bank’s 

bonding company consisting of ‘‘any state of facts 

growing out of the affairs of the bank known or 

suspected to involve criminal violation of any other 

section of the United States Code.’’ 36 FR 17000, 

17012 (Aug. 26, 1971). In 1986, the OCC repealed 

12 CFR 7.5225 and adopted its criminal referral 

form regulation, 12 CFR 21.11, which required 

national banks to report specified suspicious 

transactions on a standardized criminal referral 

form. 51 FR 25866 (July 17, 1986). As explained 

below, the OCC revised 12 CFR 21.11 in the 1990s 

to conform to the new SAR reporting form and 

system. 

2 54 FR 25839 (June 20, 1989). 

3Public Law 102–550, 106 Stat. 3672 (1992). 

4 31 U.S.C. 5318(g)(1). The quoted text is from 

section 1517 of the Annunzio-Wylie Anti-Money 

Laundering Act, which was originally codified at 31 

U.S.C. 5314(g). The text was moved as part of the 

Violent Crime Control and Law Enforcement Act of 

1994. 

5 61 FR 4326 (Feb. 5, 1996). Prior to the adoption 

of FinCEN’s SAR regulation in 1996 and the 

accompanying revisions to the OCC’s regulation, 

the OCC’s criminal referral regulation did not have 

a specific provision that required the reporting of 

money laundering transactions. However, the 

criminal referral regulation broadly encompassed 

money laundering and structuring transactions as 

explained in the Supplementary Information 

section to the final rule enhancing the criminal 

referral process. 54 FR 25839, 25840 (June 20, 

1989). 

6 61 FR 4332 (Feb. 5, 1996) (OCC). 

7See 12 CFR 21.11(c)(4); 163.180(d)(3)(iv); 31 

CFR 1020.320(a)(2). 

8 12 CFR 208.62 (Board of Governors of the 

Federal Reserve); 12 CFR 390.353 (Federal Deposit 

Insurance Corporation); 12 CFR 748.1 (National 

Credit Union Administration). 

9See 31 U.S.C. 5318(a)(7), with implementing 

regulations at 31 CFR 1010.970. 

10 31 CFR 1010.970(a). 

would amend those sections to allow 

the OCC to issue exemptions from the 

regulations’ SAR requirements. 

II. Background 

The OCC has long required its 

regulated institutions to report potential 

violations of law arising from 

transactions that flow through those 

institutions.1 The OCC required such 

reporting because fraud, abusive insider 

transactions, check-kiting schemes, 

money laundering, and other financial 

crimes can pose serious threats to a 

financial institution’s continued 

viability and, if unchecked, can 

undermine the public confidence in the 

nation’s financial system generally.2

In 1992 Congress passed the 

Annunzio-Wylie Anti-Money 

Laundering Act, which redesigned the 

criminal referral process applicable to 

OCC supervised entities and made the 

reporting of certain suspicious 

transactions a requirement of the Bank 

Secrecy Act (BSA).3 The Act permitted 

the Department of the Treasury to 

require financial institutions, including 

national banks and federal savings 

associations, to ‘‘report any suspicious 

transaction relevant to a possible 

violation of law or regulation.’’ 4 As a 

result, the Department of the Treasury, 

in consultation with the OCC, the other 

federal banking agencies, and law 

enforcement, developed the modern 

SAR form and reporting process, which 

standardized the reporting forms and 

created a centralized database that could 

be accessed by multiple law 

enforcement and regulatory agencies. 

To implement this new reporting 

system, the Financial Crimes 

Enforcement Network of the Department 

of the Treasury (FinCEN) issued its 

implementing SAR regulations in 1996 

for financial institutions subject to the 

requirements of the BSA to, among 

other things, specifically address the 

reporting of money laundering 

transactions and transactions designed 

to evade the reporting requirements of 

the BSA.5 To further implement this 

new reporting process and reduce 

unnecessary reporting burdens, the OCC 

and the other federal banking agencies 

contemporaneously amended their 

criminal referral form regulations to 

incorporate the new SAR form and 

reporting database, align their regulatory 

reporting requirements with FinCEN’s 

BSA reporting requirements, and further 

refine the reporting processes.6

As a result of this redesign and 

FinCEN’s implementing regulations, 

national banks and federal savings 

associations are currently required to 

file SARs under both OCC and FinCEN 

regulations. These regulations are not 

identical but are substantially similar 

with regard to the specified BSA 

reporting obligations required by 

FinCEN. Both the OCC’s and FinCEN’s 

SAR regulations require banks to file 

SARs relating to money laundering, 

transactions that are designed to evade 

the reporting requirements of the BSA, 

and transactions that have no business 

or apparent lawful purpose or are not 

the sort in which the particular 

customer would normally be expected 

to engage, and the bank knows of no 

reasonable explanation for the 

transactions after examining the 

available facts, including the 

background and possible purpose of the 

transactions.7 Furthermore, with respect 

to the SAR confidentiality requirements 

in the BSA, both the OCC’s and 

FinCEN’s SAR regulations require banks 

to maintain the confidentiality of a SAR 

and any information that would reveal 

the existence of the SAR, outside of 

certain circumstances. 

While the OCC and FinCEN 

regulations contain substantively 

similar requirements, including 

requiring reporting in certain common 

contexts and requiring institutions to 

maintain the confidentiality of SARs, 

the OCC and the other federal banking 

agencies require reporting in broader 

circumstances (e.g., insider abuse at any 

dollar amount).8 As previously noted, 

these violations and abuse situations 

can pose serious threats to financial 

institutions’ continued viability and, if 

unchecked, can undermine the public 

confidence in the nation’s financial 

industry. 

The OCC and FinCEN SAR 

regulations also provide: (i) That SARs 

are not required for a robbery or 

burglary committed or attempted that is 

reported to appropriate law enforcement 

authorities; (ii) that SARs are 

confidential and shall not be disclosed 

except as authorized; (iii) recordkeeping 

requirements for SARs and supporting 

documentation; (iv) that supporting 

documentation shall be deemed to have 

been filed with the SAR; and (v) that 

supporting documentation shall be 

made available to appropriate law 

enforcement agencies upon request. The 

regulations also provide a limitation on 

liability to any national bank, federal 

savings association or other financial 

institution and any director, officer, 

employee, or agent of a national bank or 

federal savings association or other 

financial institution that makes a 

voluntary disclosure of any possible 

violation of law or regulation to a 

government agency or files a SAR 

pursuant to the regulations or any other 

authority. The OCC’s regulations also 

contain a provision requiring that 

national banks and federal savings 

associations promptly notify their board 

of directors when a SAR has been filed. 

While neither the OCC’s SAR 

regulations nor FinCEN’s SAR reporting 

regulation contain provisions permitting 

exemptions, FinCEN has general 

authority to grant exemptions from the 

requirements of the BSA, which 

includes granting exemptions under its 

SAR reporting regulations.9 FinCEN’s 

regulation provides that ‘‘[t]he Secretary 

[of Treasury], in his sole discretion, may 

by written order or authorization make 

exceptions to or grant exemptions from 

the requirements of [the BSA]. Such 

exceptions or exemptions may be 

conditional or unconditional, may apply 

to particular persons or to classes of 

persons, and may apply to transactions 

or classes of transactions.’’ 10 The 

Secretary has delegated this exemption 

authority to FinCEN. 

This disparity in exemption authority 

makes it more difficult for the OCC to 

grant relief if a national bank or federal 


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6574 Federal Register / Vol. 86, No. 13 / Friday, January 22, 2021 / Proposed Rules 

11 Joint Statement on Innovative Efforts to Combat 

Money Laundering and Terrorist Financing (Dec. 3, 

2018), available at https://www.occ.gov/newsissuances/news-releases/2018/nr-occ-2018- 

130a.pdf. 

12Public Law 106–102, sec. 722, 113 Stat. 1338, 

1471 (1999). 

savings association has a novel SAR 

filing proposal that does not squarely fit 

within the regulatory requirements but 

would nonetheless be beneficial from an 

anti-money laundering regulatory and 

safety and soundness perspective. As 

financial technology and innovation 

continue to develop in the area of 

monitoring and reporting financial 

crime and terrorist financing, the OCC 

will need the express regulatory 

flexibility to grant exemptive relief 

when appropriate in this area on a 

consistent basis. In 2018 the OCC, the 

Board of Governors of the Federal 

Reserve System, the Federal Deposit 

Insurance Corporation, FinCEN, and the 

National Credit Union Administration 

issued a statement encouraging banks to 

take innovative approaches to meet their 

BSA/anti-money laundering (BSA/AML) 

compliance obligations.11 That 

statement explained that banks are 

encouraged to consider, evaluate, and, 

where appropriate, responsibly 

implement innovative approaches in 

this area. Today, innovative approaches 

and technological developments in the 

areas of SAR monitoring, investigation, 

and filings may involve, among other 

things: (i) Automated form population 

using natural language processing, 

transaction data, and customer due 

diligence information; (ii) automated or 

limited investigation processes 

depending on the complexity and risk of 

a particular transaction and appropriate 

safeguards; and (iii) enhanced 

monitoring processes using more and 

better data, optical scanning, artificial 

intelligence, or machine learning 

capabilities. Requests for exemptive 

relief pertaining to innovation or other 

matters may involve, among other 

things, expanded investigations and 

SAR timing issues, SAR disclosures and 

sharing, continued SAR filings for 

ongoing activity, outsourcing of SAR 

processes, the role of agents of national 

banks and federal savings associations, 

the use of shared utilities and shared 

data, and the use and sharing of deidentified data. OCC expects that new 

technologies will continue to prompt 

additional innovative approaches 

related to SAR filing and monitoring. 

III. The Proposal 

The proposed rule would allow the 

OCC to issue exemptions from the 

requirements of its SAR regulations. 

Specifically, the proposed rule would 

add a provision to 12 CFR 21.11 and 12 

CFR 163.180 that would provide that 

the OCC may exempt a national bank or 

federal savings association from the 

requirements of those sections. 

As discussed above, the OCC’s SAR 

regulations contains some requirements 

that are not included in FinCEN’s SAR 

regulation. For exemption requests 

involving these OCC additional SAR 

requirements, a national bank or federal 

savings association would only need to 

seek an exemption from the OCC. The 

OCC believes that the proposed process 

is consistent with the purposes of the 

BSA and with safe and sound banking. 

For exemption requests from the 

requirements of the OCC’s SAR 

regulations that would also require an 

exemption from FinCEN’s SAR 

regulation, for example, exemption 

requests related to SAR filings required 

by 12 CFR 21.11(c)(4), or related to SAR 

timing requirements in 12 CFR 21.11(d), 

or related to SAR confidentiality in 12 

CFR 21.11(k), a national bank would 

need to seek an exemption from both 

the OCC and FinCEN. 

Under the proposed rule, a national 

bank requesting an exemption from the 

requirements of 12 CFR 21.11, including 

exemptions related to SAR filings solely 

required by paragraphs (c)(1) through 

(3), must submit a request in writing to 

the OCC. In reviewing such requests, the 

OCC would consider whether the 

exemption is consistent with safe and 

sound banking, and any other 

appropriate factors, such as any 

outstanding supervisory concerns 

related to BSA/AML, including informal 

and formal enforcement actions. 

A national bank or federal savings 

association requesting an exemption 

from the requirements of the OCC’s SAR 

regulations that would also require an 

exemption from FinCEN’s SAR 

regulation, for example, an exemption 

request related to SAR filings under 12 

CFR 21.11(c)(4) for national banks, 

would have to submit a request in 

writing to both the OCC and to FinCEN 

for approval. Upon receiving a written 

request from a national bank or federal 

savings association, the OCC would 

consider whether the exemption is 

consistent with the purposes of the 

Bank Secrecy Act, with safe and sound 

banking, and any other appropriate 

factors, such as any outstanding 

supervisory concerns related to BSA/ 

AML, including informal and formal 

enforcement actions. With respect to 

requests for exemption from the 

requirements of the OCC’s SAR 

regulations that would also require an 

exemption from FinCEN’s SAR 

regulation, the requestor would have to 

obtain exemptions from both agencies. 

The OCC also may notify the other 

federal banking agencies and consider 

their comments before granting any 

exemption. Such exemptions may be 

conditional or unconditional, may apply 

to particular persons or to classes of 

persons, and may apply to transactions 

or classes of transactions. In addition, 

the proposed rule provides that the OCC 

may grant an exemption for a specified 

time period. 

Under the proposed rule, the OCC 

could also revoke previously granted 

exemptions if circumstances change 

related to the factors set out above (e.g., 

consistency with the BSA and safety 

and soundness) or any imposed 

conditions. The OCC invites comments 

on the proposed rule, including whether 

any additional detail relating to the 

procedures that would be followed in 

considering, granting, or revoking 

exemptions is necessary. The OCC 

welcomes comments on any aspect of 

the proposed rule, in particular, with 

regard to whether additional or different 

factors or standards should be applied 

in the determination whether to grant an 

exemption request, as well as the form 

and manner of the OCC’s response to an 

exemption request. 

IV. Administrative Law Matters 

A. Solicitation of Comments and Use of 

Plain Language 

Section 722 of the Gramm-LeachBliley Act 12 requires the federal 

banking agencies to use plain language 

in all proposed and final rules 

published after January 1, 2000. The 

OCC has sought to present the proposed 

rule in a simple and straightforward 

manner, and invite comment on the use 

of plain language. For example: 

• Has the OCC organized the material 

to suit your needs? If not, how could the 

OCC present the proposed rule more 

clearly? 

• Are the requirements in the 

proposed rule clearly stated? If not, how 

could the proposed rule be more clearly 

stated? 

• Do the regulations contain technical 

language or jargon that is not clear? If 

so, which language requires 

clarification? 

• Would a different format (grouping 

and order of sections, use of headings, 

paragraphing) make the regulation 

easier to understand? If so, what 

changes would achieve that? 

• Would more, but shorter, sections 

be better? If so, which sections should 

be changed? 

• What other changes can the OCC 

incorporate to make the regulation 

easier to understand? 


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Federal Register / Vol. 86, No. 13 / Friday, January 22, 2021 / Proposed Rules 6575 

13The OCC calculated the number of small 

entities using the SBA’s size thresholds for 

commercial banks and savings institutions, and 

trust companies, which are $550 million and $38.5 

million, respectively. Consistent with the General 

Principles of Affiliation, 13 CFR 121.103(a), the 

OCC counted the assets of affiliated financial 

institutions when determining whether to classify 

a national bank or federal savings association as a 

small entity. 

14 12 U.S.C. 4802(a). 

15 12 U.S.C. 4802(b). 

B. Paperwork Reduction Act Analysis 

Certain provisions of the proposal 

contain ‘‘collection of information’’ 

requirements within the meaning of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3521) (PRA). In accordance 

with the requirements of the PRA, 

agencies may not conduct or sponsor, 

and a respondent is not required to 

respond to, an information collection 

unless it displays a currently valid 

Office of Management and Budget 

(OMB) control number. The OCC 

reviewed the proposed rulemaking and 

determined that it revises information 

collection requirements previously 

approved by OMB under OMB Control 

No. 1557–0180. The OCC has submitted 

the revised information collection to 

OMB for review under section 3507(d) 

of the PRA (44 U.S.C. 3507(d)) and 

§ 1320.11 of the OMB’s implementing 

regulations (5 CFR part 1320). 

Current Actions. The proposal would 

revise 12 CFR 21.11 and 12 CFR 163.180 

to allow national banks and federal 

savings associations to submit written 

requests for exemptions from the 

requirements of the OCC’s SAR 

regulations. The burden estimates below 

are based on the estimated number of 

banks and savings associations that 

might request such exemptions each 

year and the estimated number of hours 

required to submit such a request. 

National banks and federal savings 

associations may submit written 

requests for exemptions from the 

requirements of the OCC’s SAR 

regulations. 12 CFR 21.11(m) and 

163.180(f). 

Title of Information Collection: 

Minimum Security Devices and 

Procedures, Reports of Suspicious 

Activities, and Bank Secrecy Act 

Compliance Program. 

Frequency: Event generated. 

Affected Public: Businesses or other 

for-profit. 

Estimated number of respondents: 5. 

Total estimated annual burden: 250 

hours. 

Comments are invited on: 

a. Whether the collections of 

information are necessary for the proper 

performance of the agencies’ functions, 

including whether the information has 

practical utility; 

b. The accuracy or the estimate of the 

burden of the information collections, 

including the validity of the 

methodology and assumptions used; 

c. Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

d. Ways to minimize the burden of the 

information collections on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and 

e. Estimates of capital or startup costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

All comments will become a matter of 

public record. Comments on aspects of 

this document that may affect reporting, 

recordkeeping, or disclosure 

requirements and burden estimates 

should be sent to the addresses listed in 

the ADDRESSES section of this document. 

A copy of the comments may also be 

submitted to the OMB desk officer for 

the agencies by mail to U.S. Office of 

Management and Budget, 725 17th 

Street NW, #10235, Washington, DC 

20503; facsimile to (202) 395–6974; or 

email to oira_submission@omb.eop.gov, 

Attention, Federal Banking Board Desk 

Officer. 

C. Regulatory Flexibility Act Analysis 

The Regulatory Flexibility Act, 5 

U.S.C. 601 et seq., (RFA), requires an 

agency, in connection with a proposed 

rule, to prepare an Initial Regulatory 

Flexibility Analysis describing the 

impact of the rule on small entities 

(defined by the SBA for purposes of the 

RFA to include commercial banks and 

savings institutions with total 

consolidated assets of $600 million or 

less and trust companies with total 

consolidated assets of $41.5 million of 

less) or to certify that the proposed rule 

would not have a significant economic 

impact on a substantial number of small 

entities. 

As part of our analysis, we consider 

whether the proposal would have a 

significant economic impact on a 

substantial number of small entities, 

pursuant to the RFA. The OCC currently 

supervises approximately 745 small 

entities.13 Because the proposal imposes 

no new mandates, it would have only de 

minimis costs to OCC-supervised small 

entities. Therefore, the OCC certifies 

that the proposal would not have a 

significant economic impact on a 

substantial number of small entities. 

D. Riegle Community Development and 

Regulatory Improvement Act of 1994 

Pursuant to section 302(a) of the 

Riegle Community Development and 

Regulatory Improvement Act (RCDRIA), 

in determining the effective date and 

administrative compliance requirements 

for new regulations that impose 

additional reporting, disclosure, or other 

requirements on insured depository 

institutions, each federal banking 

agency must consider, consistent with 

principles of safety and soundness and 

the public interest, any administrative 

burdens that such regulations would 

place on insured depository institutions, 

including small depository institutions, 

and customers of depository 

institutions, as well as the benefits of 

such regulations.14 In addition, section 

302(b) of RCDRIA requires new 

regulations and amendments to 

regulations that impose additional 

reporting, disclosures, or other new 

requirements on insured depository 

institutions generally to take effect on 

the first day of a calendar quarter that 

begins on or after the date on which the 

regulations are published in final 

form.15 The OCC requests comment on 

any administrative burdens that the 

proposed rule would place on 

depository institutions, including small 

depository institutions, and their 

customers, and the benefits of the 

proposed rule that the OCC should 

consider in determining the effective 

date and administrative compliance 

requirements for a final rule 

E. OCC Unfunded Mandates Reform Act 

of 1995 Determination 

Consistent with the Unfunded 

Mandates Reform Act of 1995 (UMRA), 

2 U.S.C. 1532, the OCC considers 

whether the proposed rule includes a 

Federal mandate that may result in the 

expenditure by state, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million adjusted 

for inflation (currently $157 million) in 

any one year. The proposed rule does 

not impose new mandates. Therefore, 

the OCC concludes that implementation 

of the proposed rule would not result in 

an expenditure of $157 million or more 

annually by state, local, and tribal 

governments, or by the private sector. 

List of Subjects 

12 CFR Part 21 

Crime, Currency, National banks, 

Reporting and recordkeeping 

requirements, Security measures. 

12 CFR Part 163 

Accounting, Administrative practice 

and procedure, Advertising, Crime, 

Currency, Investments, Mortgages, 

Reporting and recordkeeping 

requirements, Savings associations. 


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6576 Federal Register / Vol. 86, No. 13 / Friday, January 22, 2021 / Proposed Rules 

Authority and Issuance 

For the reasons stated in the 

SUPPLEMENTARY INFORMATION, the OCC 

proposes to amend 12 CFR parts 21 and 

163 as follows: 

PART 21—MINIMUM SECURITY 

DEVICES AND PROCEDURES, 

REPORTS OF SUSPICIOUS 

ACTIVITIES, AND BANK SECRECY 

ACT COMPLIANCE PROGRAM 

■ 1. The authority citation for part 21 is 

revised to read as follows: 

Authority: 12 U.S.C. 1, 93a, 161, 1462a, 

1463, 1464, 1818, 1881–1884, and 3401– 

3422. 

■ 2. In § 21.11, add paragraph (m) to 

read as follows: 

§ 21.11 Suspicious Activity Report. 

* * * * * 

(m) Exemptions. (1) The OCC may 

exempt any national bank from the 

requirements of this section. A national 

bank requesting an exemption must 

submit a request in writing to the OCC. 

In reviewing such requests, the OCC 

will consider whether the exemption is 

consistent with safe and sound banking 

and may consider other appropriate 

factors. An exemption shall be 

applicable only as expressly stated in 

the exemption, may be conditional or 

unconditional, may apply to particular 

persons or to classes of persons, and 

may apply to transactions or classes of 

transactions. A national bank requesting 

an exemption that also requires an 

exemption from the requirements of 

FinCEN’s SAR regulation must submit a 

request in writing to both the OCC and 

FinCEN for approval. In reviewing such 

requests, the OCC will consider whether 

the exemption is consistent with the 

purposes of the Bank Secrecy Act, with 

safe and sound banking, and any other 

appropriate factors. 

(2) The OCC will provide a written 

response to the national bank that 

submitted the exemption request. A 

national bank that has received an 

exemption under paragraph (m)(1) of 

this section may rely on the exemption 

for a period of time to be communicated 

by the OCC in its granting of the 

exemption. 

(3) The OCC may extend the period of 

time or may revoke an exemption 

granted under paragraph (m)(1) of this 

section. Exemptions may be revoked at 

the sole discretion of the OCC. The OCC 

will provide written notice to the 

national bank of the OCC’s intention to 

revoke an exemption. Such notice will 

include the basis for the revocation and 

will provide an opportunity for the 

national bank to submit a response to 

the OCC. The OCC will consider the 

response prior to deciding whether to 

revoke an exemption and will notify the 

national bank of the OCC’s decision to 

revoke an exemption in writing. 

(4) With respect to requests for 

exemption that will also require an 

exemption from the requirements of 

FinCEN’s SAR regulation, upon 

receiving approval from both the OCC 

and FinCEN, the requestor shall be 

relieved of its obligations under this 

section to the extent stated in such 

approvals. 

PART 163—SAVINGS 

ASSOCIATIONS—OPERATIONS 

■ 3. The authority citation for part 163 

is revised to read as follows: 

Authority: 12 U.S.C. 161, 1462a, 1463, 

1464, 1467a, 1817, 1820, 1828, 1831o, 3806, 

5101 et seq., 5412(b)(2)(B); 42 U.S.C. 4106. 

■ 2. In § 163.180, add paragraph (f) to 

read as follows: 

§ 163.180 Suspicious Activity Reports and 

other reports and statements. 

* * * * * 

(f) Exemptions. (1) The OCC may 

exempt any savings association or 

service corporation from the 

requirements of this section. A savings 

association or service corporation 

requesting an exemption from the 

provisions of this section, must submit 

a request in writing to the OCC. In 

reviewing such requests, the OCC will 

consider whether the exemption is 

consistent with safe and sound banking, 

and may consider other appropriate 

factors. An exemption shall be 

applicable only as expressly stated in 

the exemption, may be conditional or 

unconditional, may apply to particular 

persons or to classes of persons, and 

may apply to transactions or classes of 

transactions. A federal savings 

association requesting an exemption 

that also requires an exemption from the 

requirements of FinCEN’s SAR 

regulation must submit a request in 

writing to both the OCC and FinCEN for 

approval. In reviewing such requests, 

the OCC will consider whether the 

exemption is consistent with the 

purposes of the Bank Secrecy Act, with 

safe and sound banking, and any other 

appropriate factors. 

(2) The OCC will provide a written 

response to the savings association or 

service corporation that submitted the 

exemption request. A savings 

association or service corporation that 

has received an exemption under 

paragraph (f)(1) of this section may rely 

on the exemption for a period of time 

to be communicated by the OCC in its 

granting of the exemption. 

(3) The OCC may extend the period of 

time or may revoke an exemption 

granted under paragraph (f)(1) of this 

section. Exemptions may be revoked at 

the sole discretion of the OCC. The OCC 

will provide written notice to the 

savings association or service 

corporation of the OCC’s intention to 

revoke an exemption. Such notice will 

include the basis for the revocation and 

will provide an opportunity for the 

savings association or service 

corporation to submit a response to the 

OCC. The OCC will consider the 

response prior to deciding whether to 

revoke an exemption and will notify the 

savings association or service 

corporation of the OCC’s decision to 

revoke an exemption in writing. 

(4) With respect to requests for 

exemption that will also require an 

exemption from the requirements of 

FinCEN’s SAR regulation, upon 

receiving approval from both the OCC 

and FinCEN, the requestor shall be 

relieved of its obligations under this 

section to the extent stated in such 

approvals. 

Brian P. Brooks, 

Acting Comptroller of the Currency. 

[FR Doc. 2021–00034 Filed 1–21–21; 8:45 am] 

BILLING CODE 4810–33–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 208 

[Docket No. R–1738] 

RIN 7100–AG08 

Membership of State Banking 

Institutions in the Federal Reserve 

System; Reports of Suspicious 

Activities Under Bank Secrecy Act 

AGENCY: Board of Governors of the 

Federal Reserve System (Board). 

ACTION: Notice of proposed rulemaking 

with request for public comment. 

SUMMARY: The Board is inviting 

comment on a proposed rule that would 

modify the requirements to file 

Suspicious Activity Reports for state 

member banks, Edge and agreement 

corporations, U.S. offices of foreign 

banking organizations supervised by the 

Federal Reserve, and bank holding 

companies and their nonbank 

subsidiaries. Specifically, the proposed 

rule would amend the Board’s 

Suspicious Activity Report regulations 

to provide for the issuance of 

exemptions from the requirements of 

those regulations, in full or in part. The 

proposed rule is intended, among other 

things, to facilitate supervised 


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