Federal Register / Vol. 62, No. 211 / Friday, October 31, 1997 / Rules and Regulations 58909

areas, or by destroying or concealing

evidence that would form the basis for

arrest.

(ii) Moreover, providing an

accounting to the subjects of

investigations would alert them to the

fact that FinCEN has information

regarding possible criminal activities

and could inform them of the general

nature of that information. Access to

such information could reveal the

operation of the information-gathering

and analysis systems of FinCEN, the

Federal Supervisory Agencies and other

SAR System Users and permit violators

to take steps to avoid detection or

apprehension.

(6) 5 U.S. C. 552a(e)(4)(I) requires an

agency to publish a general notice

listing the categories of sources for

information contained in a system of

records. The application of this

provision to the SAR System could

compromise FinCEN’s and the Federal

Supervisory Agencies’ ability to provide

useful information to law enforcement

agencies, because revealing sources for

the information could:

(i) Disclose investigative techniques

and procedures,

(ii) Result in threats or reprisals

against informers by the subjects of

investigations, and

(iii) Cause informers to refuse to give

full information to criminal

investigators for fear of having their

identities as sources disclosed.

(7) 5 U.S.C. 552a(e)(1) requires an

agency to maintain in its records only

such information about an individual as

is relevant and necessary to accomplish

a purpose of the agency required to be

accomplished by statute or executive

order. The application of this provision

to the SAR System could impair the

effectiveness of law enforcement

because in many cases, especially in the

early stages of investigation, it may be

impossible immediately to determine

whether information collected is

relevant and necessary, and information

that initially appears irrelevant and

unnecessary, upon further evaluation or

upon collation with information

developed subsequently, often may

prove helpful to an investigation.

(8) 5 U.S.C. 552a(e)(2) requires an

agency to collect information to the

greatest extent practicable directly from

the subject individual when the

information may result in adverse

determinations about an individual’s

rights, benefits, and privileges under

Federal programs. The application of

this provision to the SAR System would

impair FinCEN’s ability to collect,

analyze and disseminate to System

Users investigative or enforcement

information. The SAR System is

designed to house information about

known or suspected criminal activities

or suspicious transactions that has been

collected and reported by financial

institutions, or their examiners or other

enforcement or supervisory officials. It

is not feasible to rely upon the subject

of an investigation to supply

information. An attempt to obtain

information from the subject of any

investigation would alert that individual

to the existence of an investigation,

providing an opportunity to conceal

criminal activity and avoid

apprehension. Further, with respect to

the initial SAR, 31 U.S.C. § 5318(g)(2)

specifically prohibits financial

institutions making such reports from

notifying any participant in the

transaction that a report has been made.

(9) 5 U.S.C. 552a(e)(3) requires an

agency to inform each individual whom

it asks to supply information, on the

form that it uses to collect the

information or on a separate form that

the individual can retain, the agency’s

authority for soliciting the information;

whether disclosure of information is

voluntary or mandatory; the principal

purposes for which the agency will use

the information; the routine uses that

may be made of the information; and the

effects on the individual of not

providing all or part of the information.

The application of these provisions to

the SAR System would compromise the

ability of the component agencies of the

SAR System to use the information

effectively for purposes of law

enforcement.

(10) 5 U.S.C. 552a(e)(5) requires an

agency to maintain all records it uses in

making any determination about any

individual with such accuracy,

relevance, timeliness, and completeness

as is reasonably necessary to assure

fairness to the individual in the

determination. Application of this

provision to the SAR System would

hinder the collection and dissemination

of information. Because Suspicious

Activity Reports are filed by financial

institutions with respect to known or

suspected violations of law or

suspicious activities, it is not possible at

the time of collection for the agencies

that use the SAR System to determine

that the information in such records is

accurate, relevant, timely and complete.

(11) 5 U.S.C. 552a(e)(8) requires an

agency to make reasonable efforts to

serve notice on an individual when the

agency makes any record on the

individual available to any person

under compulsory legal process, when

such process becomes a matter of public

record. Application of these

requirements to the SAR System would

prematurely reveal the existence of an

ongoing investigation to the subject of

investigation where there is need to

keep the existence of the investigation

secret. It would render ineffective 31

U.S.C. § 5318(g)(2), which prohibits

financial institutions and their officers,

employees and agents from disclosing to

any person involved in a transaction

that a SAR has been filed.

(12) 5 U.S.C. 552a(g) provides an

individual with civil remedies when an

agency wrongfully refuses to amend a

record or to review a request for

amendment, when an agency

wrongfully refuses to grant access to a

record, when any determination relating

to an individual is based on records that

are not accurate, relevant, timely and

complete, and when an agency fails to

comply with any other provision of 5

U.S.C. 552a so as to adversely affect the

individual. Because the SAR System is

exempt from these provisions it follows

that civil remedies for failure to comply

with these provisions are not

appropriate.

* * * * *

Dated: September 26, 1997.

Alex Rodriguez,

Deputy Assistant Secretary (Administration)

[FR Doc. 97–28835 Filed 10–30–97; 8:45 am]

Billing Code: 4820–03–F

DEPARTMENT OF THE TREASURY

31 CFR Part 103

RIN 1506–AA12

Financial Crimes Enforcement

Network; Bank Secrecy Act

Regulations; Exemption From the

Requirement to Report Transactions in

Currency—Phase II; Open Working

Meeting

AGENCY: Financial Crimes Enforcement

Network, Treasury.

ACTION: Meeting on proposed

regulations.

SUMMARY: The Financial Crimes

Enforcement Network (‘‘FinCEN’’) will

hold a working meeting to give

interested persons the opportunity to

discuss with Treasury officials issues

regarding proposed Bank Secrecy Act

regulations relating to exemptions from

the requirement to report transactions in

currency in excess of $10,000.

DATES: November 7, 1997, 9:00 a.m. to

12 noon.

ADDRESSES: Renaissance Washington

D.C. Hotel, Renaissance West Salon, 999

9th Street, NW, Washington, D.C. 20001.

FOR FURTHER INFORMATION CONTACT:

Charles Klingman, Financial Institutions
58910 Federal Register / Vol. 62, No. 211 / Friday, October 31, 1997 / Rules and Regulations

1On September 8, 1997, FinCEN also issued final

regulations (62 FR 47141) exempting from the

requirement to report transactions in currency in

excess of $10,000 transactions occurring between

banks and certain exempt persons. The final

regulations treat the following classes of persons as

exempt if the specific requirements of the

regulations are met: (1) Banks, (2) federal, state, and

local government departments and agencies, (3)

certain entities that exercise governmental

authority, (4) entities (other than banks) listed on

applicable national security exchanges, and (5)

certain subsidiaries of those listed entities. These

exemptions are a step to a simpler exemption

system and implement the Money Laundering

Suppression Act of 1994.

Policy Specialist, FinCEN, at (703) 905–

3602, or Albert R. Zarate, AttorneyAdvisor, Office of Legal Counsel,

FinCEN, (703) 905–3807.

SUPPLEMENTARY INFORMATION: On

September 8, 1997, FinCEN issued

proposed regulations (62 FR 47156)

relating to exemptions from the

requirement in 31 CFR 103.22 to report

transactions in currency in excess of

$10,000.1 The proposed regulations

introduce two new classes of exempt

persons: ‘‘non-listed businesses’’ and

‘‘payroll customers.’’ The proposed

regulations also provide operating rules

for determining whether a customer is

an exempt person and restructure 31

CFR 103.22 to reflect changes to the

exemption system.

FinCEN is announcing today that it

will hold a meeting on November 7,

1997 to discuss issues relating to the

proposed exemption regulations.

Although persons attending the meeting

are encouraged to discuss any of their

concerns about the proposed

regulations, FinCEN hopes that the

meeting will include discussion of the

following matters:

1. Concerns, including specific

estimates of costs, regarding the

proposed requirement to file annual

reports of the aggregate currency

deposits and withdrawals by non-listed

businesses and payroll customers,

2. Information banks currently

possess about the ranges of cash

transactions by customers exempted

under the administrative exemption

system (for example, the percentage and

type of exempt customers with total

cash transactions of around $25,000,

$50,000, $100,000, etc.), and the

potential uses of that information to

assist law enforcement,

3. Concerns regarding the prohibition

against commingling personal and

business funds in the accounts of sole

proprietors,

4. suggestions on ways to shorten the

list of businesses ineligible for

exemption, and

5. Suggestions for dealing with

businesses with multiple activities one

of which is not eligible for exemption,

(for example, a grocery store with both

a money services business activity such

as the sale of money orders and nonmoney services business activities).

The meeting is not intended as a

substitute for FinCEN’s request for

written comments in the notice of

proposed rulemaking published

September 8, 1997. Rather, the meeting

is intended to help make the comment

process as productive as possible by

providing a forum between the industry

and FinCEN concerning issues relating

to the proposed regulations. The

meeting will be open to the public and

will be recorded; prepared statements

will be accepted for inclusion in the

record. A transcript of the meeting will

be available for public inspection and

copying. Accordingly, oral or written

material not intended to be disclosed to

the public should not be raised at the

meeting.

Dated: October 27, 1997.

Stephen R. Kroll,

Federal Register Liaison Officer, Financial

Crimes Enforcement Network.

[FR Doc. 97–28885 Filed 10–30–97; 8:45 am]

BILLING CODE 4820–03–P

POSTAL SERVICE

39 CFR Part 20

Interim Rule for Global Package Link

(GPL) to Canada

AGENCY: Postal Service.

ACTION: Interim rule with request for

comments.

SUMMARY: The Postal Service is

amending the regulations on Global

Package Link (GPL) to Canada. For the

Ground Courier service (henceforth to

be referred to as GPL Standard), new

pricing and a change in some of the

features are being announced, effective

publication date. At that same date, the

Ground Gateway service will be

eliminated. The new pricing for GPL

Standard is based on origin and

destination, and is, in most cases, a

reduction in the rates previously

established.

DATES: These regulations take effect as

of October 31, 1997. Comments must be

received on or before December 1, 1997.

ADDRESSES: Written comments should

be mailed or delivered to International

Business Unit, U.S. Postal Service, 475

L’Enfant Plaza SW, 370–IBU,

Washington, DC 20260–6500. Copies of

all written comments will be available

for public inspection and photocopying

between 9 a.m. and 4 p.m., Monday

through Friday, at the above address.

FOR FURTHER INFORMATION CONTACT:

Robert E. Michelson, (202) 268–5731.

SUPPLEMENTARY INFORMATION:

I. Introduction

General Description

GPL is a service that provides fast,

economical international delivery of

packages containing merchandise. GPL

makes it easier and less costly for mailorder companies to export goods. The

Postal Service provides GPL a

destination country-specific basis

pursuant to the terms and conditions

stipulated in section 620 of the

International Mail Manual and the

Individual Country Listings.

II. GPL to Canada

Description

GPL to Canada currently offers an Air

Courier, a Ground Courier, and a

Ground Gateway service. The Air

Courier Service will be renamed GPL

Premium. There will be no other

changes to the Air Courier service. The

Ground Courier service will be renamed

GPL Standard. The Ground Gateway

Service will be discontinued, since the

new GPL Standard rates will be lower

than the Ground Gateway rates. GPL

Standard will differ from the existing

Ground Courier service in the following

ways:

1. Pricing will be based on four

originating zones in the United States

and local, regional, and national

destinating zones in Canada.

2. Insurance coverage will be

increased. Insurance will be included in

the price for up to $100 (U.S.), and

optional coverage of $100–$1000 (U.S.)

will be available for a fee of $.90 per

$100 of insurance over the first $100

based on the value of the item declared.

3. For mail entering Canada through

Vancouver (generally, mail originating

in Zone C (Seattle) or Zone D (San

Francisco)) there will be no changes

other than those mentioned in items #1

and #2 above; that is, a new pricing

structure and an increase in insurance

availability.

4. For mail entering Canada through

Toronto (generally, mail originating in

Zone A (Buffalo, Chicago, New York

City) or in Zone B (Dallas, Miami)), the

following additional changes will take

place:

• The service standard is anticipated

to be from three to five days after receipt

by the U.S. Postal Service.

• Preparation requirements will

include that the customer place a

Canada Post Xpresspost label on the

package.