Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Proposed Rules 13043 

34. In § 16.247, revise paragraphs (a), 

(b)(2), and (b)(4) to read as follows: 

§ 16.247 Judicial review of a final decision 

and order. 

(a) A person may seek judicial review, 

in a United States Court of Appeals, of 

a final decision and order of the 

Associate Administrator, and of an 

order of dismissal with prejudice issued 

by the Director, as provided in 49 U.S.C. 

46110 or section 519(b)(4) of the Airport 

and Airway Improvement Act of 1982 

(AAIA), as amended and recodified, 49 

U.S.C. 47106(d) and 47111(d). A party 

seeking judicial review shall file a 

petition for review with the Court not 

later than 60 days after the order has 

been served on the party or within 60 

days after the entry of an order under 49 

U.S.C. 40101 et seq. 

(b) * * * 

(2) A Director’s Determination; 

* * * * * 

(4) A Director’s Determination or an 

initial decision of a hearing officer that 

becomes the final decision of the 

Associate Administrator because it was 

not appealed within the applicable time 

periods provided under §§ 16.33(c) and 

16.241(b). 

§ 16.301 [Removed] 

35. Remove § 16.301 from newly 

redesignated subpart H. 

§§ 16.303, 16.305, and 16.307 

[Redesignated as §§ 16.301, 16.303, and 

16.305] 

36. In newly redesignated subpart H, 

redesignate §§ 16.303, 16.305, and 

16.307 as §§ 16.301, 16.303, and 16.305, 

respectively. 

Issued in Washington, DC, on February 22, 

2012. 

Daphne A. Fuller, 

Manager, Airports and Environmental Law 

Division. 

[FR Doc. 2012–4993 Filed 3–2–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0480; Directorate 

Identifier 2010–NM–035–AD] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Supplemental notice of 

proposed rulemaking (NPRM); 

reopening of comment period. 

SUMMARY: We are revising an earlier 

proposed airworthiness directive (AD) 

for certain The Boeing Company Model 

747–400 and 747–400D series airplanes. 

That NPRM proposed installing 

aluminum gutter reinforcing brackets to 

the forward and aft drip shield gutters 

of the main equipment center (MEC); 

and adding a reinforcing fiberglass 

overcoat to the top surface of the MEC 

drip shield, including an inspection for 

cracking and holes in the MEC drip 

shield, and corrective actions if 

necessary. That NPRM also provided for 

an option to install an MEC drip shield 

drain system, which, if accomplished, 

would extend the compliance time for 

adding the reinforcing fiberglass 

overcoat to the top surface of the MEC 

drip shield. That NPRM was prompted 

by a report of a multi-power system loss 

in flight of #1, #2, and #3 alternating 

current electrical power systems located 

in the MEC. This action revises that 

NPRM by revising the locating 

dimensions of the brackets and 

changing the routing of the forward 

drain tubes. We are proposing this 

supplemental NPRM to prevent water 

penetration into the MEC, which could 

result in the loss of flight critical 

systems. Since these actions impose an 

additional burden over that proposed in 

the NPRM, we are reopening the 

comment period to allow the public the 

chance to comment on these proposed 

changes. 

DATES: We must receive comments on 

this supplemental NPRM by April 19, 

2012. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue SE., Washington, DC 20590, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

For service information identified in 

this AD, contact Boeing Commercial 

Airplanes, Attention: Data & Services 

Management, P.O. Box 3707, MC 2H–65, 

Seattle, Washington 98124–2207; 

telephone 206–544–5000, extension 1; 

fax 206–766–5680; email 

me.boecom@boeing.com; Internet 

https://www.myboeingfleet.com. You 

may review copies of the referenced 

service information at the FAA, 

Transport Airplane Directorate, 1601 

Lind Avenue SW., Renton, Washington. 

For information on the availability of 

this material at the FAA, call 425–227– 

1221. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 

9 a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(phone: 800–647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Francis Smith, Aerospace Engineer, 

Cabin Safety and Environmental 

Systems Branch, ANM–150S, FAA, 

Seattle Aircraft Certification Office, 

1601 Lind Avenue SW., Renton, 

Washington 98057–3356; phone: 425– 

917–6596; fax: 425–917–6590; email: 

francis.smith@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2010–0480; Directorate Identifier 

2010–NM–035–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

We issued an NPRM to amend 14 CFR 

part 39 to include an AD that would 

apply to Model 747–400 and 747–400D 

series airplanes. That NPRM was 

published in the Federal Register on 

May 19, 2010 (75 FR 27966). That 

NPRM proposed to require installing 

aluminum gutter reinforcing brackets to 


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13044 Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Proposed Rules 

the forward and aft drip shield gutters 

of the MEC; and adding a reinforcing 

fiberglass overcoat to the top surface of 

the MEC drip shield, including an 

inspection for cracking and holes in the 

MEC drip shield, and corrective actions 

if necessary. That NPRM also provided 

for an option to install an MEC drip 

shield drain system, which, if 

accomplished, would extend the 

compliance time for adding the 

reinforcing fiberglass overcoat to the top 

surface of the MEC drip shield. 

Actions Since Previous NPRM (75 FR 

27966, May 19, 2010) Was Issued 

Since we issued the previous NPRM 

(75 FR 27966, May 19, 2010), difficulties 

were found in accessing areas for repair 

due to a service bulletin error. We have 

determined that changing the locating 

dimensions of support brackets and rerouting the forward drain tubes are 

necessary due to interference with an 

existing pitot/static shroud. 

Comments 

We gave the public the opportunity to 

comment on the previous NPRM (75 FR 

27966, May 19, 2010). The following 

presents the comments received on the 

NPRM and the FAA’s response to each 

comment. 

Request To Reference Revised Service 

Information 

Boeing requested that we refer to 

Boeing Alert Service Bulletin 747– 

25A3555, Revision 1, dated July 27, 

2011, which includes steps to take into 

account an interference issue found 

during part installation. 

We agree to update the references in 

this supplemental NPRM to Boeing 

Alert Service Bulletin 747–25A3555, 

Revision 1, dated July 27, 2011. (The 

previous NPRM (75 FR 27966, May 19, 

2010) refers to Boeing Alert Service 

Bulletin 747–25A3555, dated November 

4, 2009.) Paragraphs (c) and (g) of this 

supplemental NPRM have been updated 

to refer to Boeing Alert Service Bulletin 

747–25A3555, Revision 1, dated July 27, 

2011. Boeing Alert Service Bulletin 

747–25A3555, Revision 1, dated July 27, 

2011, revises the locating dimensions of 

the brackets and changes the routing of 

the forward drain tubes due to 

difficulties in accessing areas for repair. 

It also revises the airplane groups. 

Request To Remove Parts Installed 

During Interim Action 

Delta Air Lines requested provisions 

in the previous NPRM (75 FR 27966, 

May 19, 2010) to electively remove the 

stanchions, fittings, and tubing installed 

when doing the interim action, after 

completing the terminating inspection, 

repair, and fiberglass overlay 

reinforcement on the top surface of the 

drip shields. Delta Air Lines stated that 

these items add 26 pounds to the weight 

of the aircraft, and if the interim action 

is optional, it may be removed once the 

terminating action is implemented. 

We disagree with the request. We 

have determined that removal of the 

hardware installed to the MEC area 

during the interim action poses 

concerns on the effect on the protection 

offered by the terminating action 

(overcoat layer). Removing the hardware 

could compromise the seals by creating 

disbonded seams and reopening cracks 

in the MEC polycarbonate casing, and 

could result in other damage. Although 

the interim action is optional, it should 

be considered a permanent installation 

once performed. It should be noted that 

doing both the interim and terminating 

actions provides two layers of water 

protection to the MEC, which greatly 

minimizes the issue of future water 

contamination. We have discussed this 

issue with Boeing. No change has been 

made to the supplemental NPRM in this 

regard. 

Request To Clarify Material 

Composition of MEC Drip Shield Gutter 

Boeing requested that we change the 

wording of paragraphs (g)(1) and (g)(2)(i) 

of the previous NPRM (75 FR 27966, 

May 19, 2010) from ‘‘MEC drip shield 

aluminum gutter’’ to ‘‘aluminum 

reinforcing brackets on the MEC drip 

shield gutter’’ to clarify that the original 

drip shield gutter is composite material 

and the reinforcement material is 

aluminum. 

We agree with the request and have 

changed paragraphs (g)(1) and (g)(2)(i) of 

this supplemental NPRM accordingly. 

Request To Change Parts Costs 

Boeing requested that we revise the 

previous NPRM (75 FR 27966, May 19, 

2010) to change the parts costs 

associated with installing the brackets 

and adding the overcoat. Boeing stated 

that the parts costs for the aluminum 

reinforcing bracket kit is $2,408 instead 

of ‘‘none’’ as specified in the previous 

NPRM. Boeing also stated that the parts 

costs for the fiberglass reinforcement is 

$1,731 (3 panels × $577/panel) plus the 

cost of fiberglass, resin, and repair 

materials for cracks and holes in the 

drip shield instead of ‘‘none’’ as 

mentioned in the previous NPRM. 

We agree with the request and have 

changed the ‘‘Estimated costs’’ table of 

this AD accordingly. However, because 

the costs for parts required for bracket 

installation depends on the work 

package, we have stated the cost as ‘‘Up 

to $2,408’’ in the ‘‘Estimated costs’’ 

table of this supplemental NPRM. 

FAA’s Determination 

We are proposing this supplemental 

NPRM because we evaluated all the 

relevant information and determined 

the unsafe condition described 

previously is likely to exist or develop 

in other products of the same type 

design. Certain changes described above 

expand the scope of the original NPRM 

(75 FR 27966, May 19, 2010). As a 

result, we have determined that it is 

necessary to reopen the comment period 

to provide additional opportunity for 

the public to comment on this 

supplemental NPRM. 

Proposed Requirements of the 

Supplemental NPRM 

This supplemental NPRM would 

require accomplishing the actions 

specified in Boeing Alert Service 

Bulletin 747–25A3555, Revision 1, 

dated July 27, 2011, as described 

previously. 

Costs of Compliance 

We estimate that this proposed AD 

affects 71 airplanes of U.S. registry. 

We estimate the following costs to 

comply with this proposed AD: 

ESTIMATED COSTS

Action Labor cost Parts cost Cost per product Cost on U.S. 

operators 

Install Brackets ........................................... 19 work-hours × $85 per hour = $1,615 .... Up to $2,408 1 .. Up to $4,023 1 .. Up to 

$285,633.1

Add Overcoat ............................................. 63 work hours × $85 per hour = $5,355 

($577 × 3).

$1,731 .............. $7,086 .............. $503,106. 


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Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Proposed Rules 13045 

ESTIMATED COSTS—Continued 

Action Labor cost Parts cost Cost per product Cost on U.S. 

operators 

Install Optional MEC Drip Shield Drain 

System.

22 work hours × $85 per hour = $1,870 .... Up to $8,982 1 .. Up to $10,852 1 Up to 

$770,492.1

1 Depending on work package. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in Subtitle VII, 

Part A, Subpart III, Section 44701: 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would not have a 

substantial direct effect on the States, on 

the relationship between the national 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this proposed regulation: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

the DOT Regulatory Policies and 

Procedures (44 FR 11034, February 26, 

1979), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

The Boeing Company: Docket No. FAA– 

2010–0480; Directorate Identifier 2010– 

NM–035–AD. 

(a) Comments Due Date 

We must receive comments by April 19, 

2012. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to The Boeing Company 

Model 747–400 and 747–400D series 

airplanes; certificated in any category; as 

identified in Boeing Alert Service Bulletin 

747–25A3555, Revision 1, dated July 27, 

2011. 

(d) Subject 

Joint Aircraft System Component (JASC)/ 

Air Transport Association (ATA) of America 

Code 25, Equipment/Furnishings. 

(e) Unsafe Condition 

This AD was prompted by a report of a 

multi-power system loss in flight of #1, #2, 

and #3 alternating current electrical power 

systems located in the main equipment 

center (MEC). We are issuing this AD to 

prevent water penetration into the MEC, 

which could result in loss of flight critical 

systems. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Modification 

Do the actions specified in either 

paragraph (g)(1) or (g)(2) of this AD. 

(1) Within 24 months after the effective 

date of this AD, install aluminum reinforcing 

brackets on the MEC drip shield gutter, in 

accordance with Work Package 1 of the 

Accomplishment Instructions of Boeing Alert 

Service Bulletin 747–25A3555, Revision 1, 

dated July 27, 2011; and add a reinforcing 

fiberglass overcoat to the top surface of the 

MEC drip shield, including doing a general 

visual inspection for cracking and holes in 

the top surface of the MEC drip shield, and 

doing all applicable corrective actions, in 

accordance with Work Package 3 of the 

Accomplishment Instructions of Boeing Alert 

Service Bulletin 747–25A3555, Revision 1, 

dated July 27, 2011. Do all applicable 

corrective actions before further flight after 

doing the general visual inspection. 

(2) Do the actions specified in paragraphs 

(g)(2)(i) and (g)(2)(ii) of this AD. 

(i) Within 24 months after the effective 

date of this AD, install aluminum reinforcing 

brackets on the MEC drip shield gutter, in 

accordance with Work Package 1 of the 

Accomplishment Instructions of Boeing Alert 

Service Bulletin 747–25A3555, Revision 1, 

dated July 27, 2011; and install a MEC drip 

shield drain system, in accordance with 

Work Package 2 of the Accomplishment 

Instructions of Boeing Alert Service Bulletin 

747–25A3555, Revision 1, dated July 27, 

2011. 

(ii) Within 96 months after the effective 

date of this AD, add a reinforcing fiberglass 

overcoat to the top surface of the MEC drip 

shield, including doing a general visual 

inspection for cracking and holes in the top 

surface of the MEC drip shield, and doing all 

applicable corrective actions, in accordance 

with Work Package 3 of the Accomplishment 

Instructions of Boeing Alert Service Bulletin 

747–25A3555, Revision 1, dated July 27, 

2011. Do all applicable corrective actions 

before further flight after doing the general 

visual inspection. 

(h) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. In accordance with 14 CFR 39.19, 

send your request to your principal inspector 

or local Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the ACO, send it to the 

attention of the person identified in the 

Related Information section of this AD. 

Information may be emailed to: 9-ANMSeattle-ACO-AMOC-Requests@faa.gov. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/ 

certificate holding district office. 

(i) Related Information 

(1) For more information about this AD, 

contact Francis Smith, Aerospace Engineer, 

Cabin Safety and Environmental Systems 


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13046 Federal Register / Vol. 77, No. 43 / Monday, March 5, 2012 / Proposed Rules 

1See, e.g., ‘‘Anti-Money Laundering Programs for 

Insurance Companies,’’ 31 CFR 1025.210(b)(1). 

2The BSA is codified at 12 U.S.C. 1829b, 12 

U.S.C. 1951–1959, 18 U.S.C. 1956, 1957, and 1960, 

and 31 U.S.C. 5311–5314 and 5316–5332 and notes 

thereto, with implementing regulations at 31 CFR 

Chapter X. See 31 CFR 1010.100(e). 

3 31 U.S.C. 5311. 

4Treasury Order 180–01 (Sept. 26, 2002). 

5 31 U.S.C. 5318(h)(2). 

6 31 U.S.C. 5318(a)(2). 

7FIN–2010–G001, ‘‘Guidance on Obtaining and 

Retaining Beneficial Ownership Information, March 

5, 2010, p.1 (‘‘Beneficial Ownership Guidance’’). 

See also Federal Financial Institution Examination 

Council Bank Secrecy Act Anti-Money Laundering 

Examination Manual (2010) (‘‘FFIEC Manual’’), 

available at: http://www.ffiec.gov/ 

bsa_aml_infobase/documents/ 

BSA_AML_Man_2010.pdf; Financial Industry 

Branch, ANM–150S, FAA, Seattle Aircraft 

Certification Office, 1601 Lind Avenue SW., 

Renton, Washington 98057–3356; phone: 

425–917–6596; fax: 425–917–6590; email: 

francis.smith@faa.gov. 

(2) For service information identified in 

this AD, contact Boeing Commercial 

Airplanes, Attention: Data & Services 

Management, P.O. Box 3707, MC 2H–65, 

Seattle, Washington 98124–2207; telephone 

206–544–5000, extension 1; fax 206–766– 

5680; email me.boecom@boeing.com; Internet 

https://www.myboeingfleet.com. You may 

review copies of the referenced service 

information at the FAA, Transport Airplane 

Directorate, 1601 Lind Avenue SW., Renton, 

Washington. For information on the 

availability of this material at the FAA, call 

425–227–1221. 

Issued in Renton, Washington, on February 

24, 2012. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2012–5180 Filed 3–2–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Financial Crimes Enforcement Network 

31 CFR Chapter X 

RIN 1506–AB15 

Customer Due Diligence Requirements 

for Financial Institutions 

AGENCY: Financial Crimes Enforcement 

Network (FinCEN), Treasury. 

ACTION: Advance notice of proposed 

rulemaking. 

SUMMARY: FinCEN, after consulting with 

staffs of various Federal supervisory 

authorities, is issuing this advance 

notice of proposed rulemaking 

(ANPRM) to solicit public comment on 

a wide range of questions pertaining to 

the development of a customer due 

diligence (CDD) regulation that would 

codify, clarify, consolidate, and 

strengthen existing CDD regulatory 

requirements and supervisory 

expectations, and establish a categorical 

requirement for financial institutions to 

identify beneficial ownership of their 

accountholders, subject to risk-based 

verification and pursuant to an 

alternative definition of beneficial 

ownership as described below. 

DATES: Written comments on this 

ANPRM must be received on or before 

May 4, 2012. 

ADDRESSES: Comments may be 

submitted, identified by Regulatory 

Identification Number (RIN) 1506– 

AB15, by any of the following methods: 

• Federal E-rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Include RIN 1506–AB15 in the 

submission. Refer to Docket Number 

FINCEN–2012–0001. 

• Mail: FinCEN, P.O. Box 39, Vienna, 

VA 22183. Include 1506–AB15 in the 

body of the text. 

Please submit comments by one 

method only. All comments submitted 

in response to this ANPRM will become 

a matter of public record. Therefore, you 

should submit only information that 

you wish to make publicly available. 

Inspection of comments: Comments 

may be inspected, between 10 a.m. and 

4 p.m., in the FinCEN reading room in 

Vienna, VA. Persons wishing to inspect 

the comments submitted must request 

an appointment with the Disclosure 

Officer by telephoning (703) 905–5034 

(not a toll free call). In general, FinCEN 

will make all comments publicly 

available by posting them on http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

FinCEN: Regulatory Policy and 

Programs Division, Financial Crimes 

Enforcement Network, (800) 949–2732 

and select option 6. 

SUPPLEMENTARY INFORMATION: 

I. Scope of ANPRM 

The scope of this ANPRM includes all 

of the industries that have anti-money 

laundering (AML) program 

requirements under FinCEN’s 

regulations. At this time, and as an 

initial matter, FinCEN is considering 

developing a CDD rule to cover banks, 

brokers or dealers in securities, mutual 

funds, futures commission merchants, 

and introducing brokers in 

commodities; accordingly, this ANPRM 

is focused primarily on these 

institutions. However, FinCEN believes 

that a CDD rule may be appropriate for 

all financial institutions subject to 

FinCEN’s regulations, and will consider 

extending such a rule to such other 

financial institutions in the future. 

Therefore, in addition to focusing on 

input from those types of institutions 

that would be subject to an initial 

rulemaking, FinCEN is also specifically 

requesting comment from other 

institutions, such as money services 

businesses (including providers of 

prepaid access), insurance companies, 

casinos, dealers in precious metals, 

stones and jewels, non-bank mortgage 

lenders or originators, and other entities 

under FinCEN’s regulations, in 

particular regarding issues related to 

identification and verification of 

customers as discussed in Section IV A. 

of this ANPRM. While these institutions 

currently are not mandated to obtain the 

minimum mandatory information 

required to identify customers as is 

mandated in regulations pertaining to 

depository institutions, brokers or 

dealers, and others described above, in 

some cases they still must, on a riskbased approach, obtain all relevant and 

appropriate customer-related 

information necessary to administer an 

effective anti-money laundering 

program.1

II. Background 

FinCEN exercises regulatory functions 

primarily under the Currency and 

Financial Transactions Reporting Act of 

1970, as amended by the USA PATRIOT 

Act of 2001 (the Act) and other 

legislation, which legislative framework 

is commonly referred to as the ‘‘Bank 

Secrecy Act’’ (BSA),2 which authorizes 

the Secretary of the Treasury (Secretary) 

to require financial institutions to keep 

records and file reports that ‘‘have a 

high degree of usefulness in criminal, 

tax, or regulatory investigations or 

proceedings, or in the conduct of 

intelligence or counterintelligence 

activities, including analysis, to protect 

against international terrorism’’ 3 The 

Secretary has delegated to the Director 

of FinCEN the authority to implement, 

administer and enforce compliance with 

the BSA and associated regulations.4

FinCEN is authorized to impose AML 

program requirements on financial 

institutions,5 as well as to require 

financial institutions to maintain 

procedures to ensure compliance with 

the BSA and FinCEN’s implementing 

regulations or guard against money 

laundering.6

As reflected in recent guidance and 

enforcement actions, the cornerstone of 

a strong BSA/AML compliance program 

is the adoption and implementation of 

internal controls, which include 

comprehensive CDD policies, 

procedures, and processes for all 

customers, particularly those that 

present a high risk for money 

laundering or terrorist financing.7 As 


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