[Federal Register Volume 62, Number 211 (Friday, October 31, 1997)]
[Rules and Regulations]
[Pages 58909-58910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28885]


-----------------------------------------------------------------------

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

[[Page 58910]]

Policy Specialist, FinCEN, at (703) 905-3602, or Albert R. Zarate, 
Attorney-Advisor, 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.<SUP>1</SUP> 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.
---------------------------------------------------------------------------

    \1\ On 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.
---------------------------------------------------------------------------

    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 non-money 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