Federal Register / Vol. 87, No. 16 / Tuesday, January 25, 2022 / Proposed Rules 3719 

1The AML Act was enacted as Division F, 

sections 6001–6511, of the William M. (Mac) 

Thornberry National Defense Authorization Act for 

Fiscal Year 2021, Public Law 116–283, 134 Stat 

3388 (2021). 

2For purposes of this NPRM, ‘‘SARs and related 

information’’ means a report filed pursuant to 31 

U.S.C. 5318(g) and any information that would 

reveal the existence of such a report. Because SARs 

filed on insider abuse are filed under Federal 

banking agency regulations (see, e.g., 12 CFR 

21.11(c)(1)), and are not part of FinCEN’s SAR 

regulations, they are not included in this definition 

and are not permitted to be shared under the pilot 

program FinCEN is proposing to establish by this 

NPRM. 

3The BSA is codified at 12 U.S.C. 1829b, 1951– 

1959 and 31 U.S.C. 5311–5314, 5316–5336. 

Implementing regulations are codified at 31 CFR 

Chapter X. Section 6212 of the AML Act amends 

31 U.S.C. 5318 by adding Section 5318(g)(8). 

4 31 U.S.C. 5311(1), (5). 

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

6 31 U.S.C. 310(b)(2); Treasury Order 180–01, 

(Jan. 14, 2020). 

Service Bulletin 601R–28–068, dated 

December 3, 2020. 

(2) This paragraph provides credit for 

actions required by paragraph (i) of this AD, 

if those actions were performed before the 

effective date of this AD using MHI RJ 

Service Bulletin 670BA–28–041, dated 

December 3, 2020; or Revision A, dated 

December 21, 2020. 

(m) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, New York ACO 

Branch, 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 

responsible Flight Standards Office, as 

appropriate. If sending information directly 

to the manager of the certification office, 

send it to ATTN: Program Manager, 

Continuing Operational Safety, FAA, New 

York ACO Branch, 1600 Stewart Avenue, 

Suite 410, Westbury, NY 11590; telephone 

516–228–7300; fax 516–794–5531. Before 

using any approved AMOC, notify your 

appropriate principal inspector, or lacking a 

principal inspector, the manager of the 

responsible Flight Standards Office. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain instructions 

from a manufacturer, the instructions must 

be accomplished using a method approved 

by the Manager, New York ACO Branch, 

FAA; or Transport Canada Civil Aviation 

(TCCA); or MHI RJ Aviation ULC’s TCCA 

Design Approval Organization (DAO). If 

approved by the DAO, the approval must 

include the DAO-authorized signature. 

(n) Related Information 

(1) Refer to Mandatory Continuing 

Airworthiness Information (MCAI) TCCA AD 

CF–2021–16, dated April 26, 2021, for related 

information. This MCAI may be found in the 

AD docket on the internet at https://

www.regulations.gov by searching for and 

locating Docket No. FAA–2022–0011. 

(2) For more information about this AD, 

contact Jiwan Karunatilake, Aerospace 

Engineer, Airframe and Propulsion Section, 

FAA, New York ACO Branch, 1600 Stewart 

Avenue, Suite 410, Westbury, NY 11590; 

telephone 516–228–7300; fax 516–794–5531; 

email 9-avs-nyaco-cos@faa.gov. 

(3) For service information identified in 

this AD, contact MHI RJ Aviation ULC, 12655 

Henri-Fabre Blvd., Mirabel, Que ́bec J7N 1E1 

Canada; Widebody Customer Response 

Center North America toll-free telephone +1– 

844–272–2720 or direct-dial telephone +1– 

514–855–8500; fax +1–514–855–8501; email 

thd.crj@mhirj.com; internet https://

mhirj.com. You may view this service 

information at the FAA, Airworthiness 

Products Section, Operational Safety Branch, 

2200 South 216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

Issued on January 19, 2022. 

Lance T. Gant, 

Director, Compliance & Airworthiness 

Division, Aircraft Certification Service. 

[FR Doc. 2022–01352 Filed 1–24–22; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Financial Crimes Enforcement Network 

31 CFR Part 1010 

RIN 1506–AB51 

Pilot Program on Sharing of 

Suspicious Activity Reports and 

Related Information With Foreign 

Branches, Subsidiaries, and Affiliates 

AGENCY: Financial Crimes Enforcement 

Network (FinCEN), Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: FinCEN is issuing this notice 

of proposed rulemaking to seek public 

comment on the proposed establishment 

of a limited-duration pilot program, 

subject to conditions set by FinCEN, to 

permit a financial institution with a 

suspicious activity report (SAR) 

reporting obligation to share SARs and 

information related to SARs with the 

institution’s foreign branches, 

subsidiaries, and affiliates for the 

purpose of combating illicit finance risk, 

in accordance with Section 6212(a) of 

the Anti-Money Laundering Act of 2020 

(AML Act). 

DATES: Written comments on this 

proposed rule must be received on or 

before March 28, 2022. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Federal E-rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Refer to Docket Number FINCEN–2022– 

0002 and RIN 1506–AB51. 

• Mail: Policy Division, Financial 

Crimes Enforcement Network, P.O. Box 

39, Vienna, VA 22183. Refer to Docket 

Number FINCEN–2022–0002 and RIN 

1506–AB51. 

FOR FURTHER INFORMATION CONTACT: The 

FinCEN Regulatory Support Section at 

1–800–767–2825 or electronically at 

https://fincen.gov/contact. 

SUPPLEMENTARY INFORMATION: 

I. Scope of Notice of Proposed 

Rulemaking (NPRM) 

FinCEN is issuing this NPRM 

pursuant to 31 U.S.C. 5318(g)(8), as 

added by section 6212 of the AML Act,1

which requires the Secretary of the 

Treasury (the Secretary) to issue rules 

establishing a pilot program that permits 

a financial institution subject to a SAR 

reporting requirement under 31 U.S.C. 

5318(g) to share SARs and related 

information, including the fact that a 

SAR has been filed, with the 

institution’s foreign branches, 

subsidiaries, and affiliates for the 

purpose of combating illicit finance 

risks.2

II. Background 

A. The Bank Secrecy Act (BSA) 

Enacted in 1970 and amended most 

recently by the AML Act, the BSA aids 

in the prevention of money laundering, 

terrorism financing, and other illicit 

financial activity, and the protection of 

U.S. national security.3 The purposes of 

the BSA include, among other things, 

‘‘requir[ing] certain reports or records 

that are highly useful in—(A) criminal, 

tax, or regulatory investigations, risk 

assessments, or proceedings; or (B) 

intelligence or counterintelligence 

activities, including analysis, to protect 

against terrorism’’ and ‘‘establish[ing] 

appropriate frameworks for information 

sharing’’ among financial institutions 

and government authorities, among 

others.4

The Secretary is authorized to require 

domestic financial institutions or 

nonfinancial trades or businesses to 

maintain appropriate procedures to 

ensure compliance with the BSA and 

the regulations promulgated thereunder 

or to guard against money laundering, 

the financing of terrorism, and other 

forms of illicit finance.5 The Secretary 

has delegated to the Director of FinCEN 

the authority to implement, administer, 

and enforce compliance with the BSA 

and associated regulations.6

The BSA authorizes the Secretary to 

require the reporting of suspicious 


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7 31 U.S.C. 5318(g)(1). 

8See, e.g., 31 CFR 1020.320. Financial 

institutions must file with FinCEN, to the extent 

and in the manner required, a report of any 

suspicious transaction relevant to a possible 

violation of law or regulation. See, e.g., 31 CFR 

1022.320(a)(2)(iv) (requiring a money services 

business to file a SAR if it knows, suspects, or has 

reason to suspect that the transaction involves use 

of the money services business to facilitate criminal 

activity). A financial institution may also file a SAR 

with respect to any suspicious transaction that it 

believes is relevant to a possible violation of law or 

regulation but whose reporting is not required by 

FinCEN regulations. See, e.g., 31 CFR 

1020.320(a)(1). 

9FinCEN has issued implementing regulations at 

31 CFR 1020.320 (SAR rule for banks); 1021.320 

(SAR rule for casinos and card clubs); 1022.320 

(SAR Rule for money services businesses); 1023.320 

(SAR rule for brokers or dealers in securities); 

1024.320 (SAR rule for mutual funds); 1025.320 

(SAR rule for insurance companies); 1026.320 (SAR 

rule for futures commission merchants and 

introducing brokers in commodities); 1029.320 

(SAR rule for loan or finance companies); 1030.320 

(SAR rule for housing government-sponsored 

enterprises). 

10 31 U.S.C. 5318(g)(2)(A), as amended by Section 

6212(b) of the AML Act. 

11See, e.g., 31 CFR 1020.320(e). 

12See, e.g., 31 CFR 1020.320(e)(1)(ii)(A)(1). 

13See, e.g., 31 CFR 1020.320(e)(1)(ii)(A)(2)(i). 

14See, e.g., 31 CFR 1020.320(e)(1)(ii)(B). 

15See Financial Crimes Enforcement Network, 

Board of Governors of the Federal Reserve System, 

Office of the Comptroller of the Currency, Federal 

Depository Insurance Corporation, and the Office of 

Thrift Supervision Interagency Guidance on 

Sharing Suspicious Activity Reports with Head 

Offices and Controlling Companies, (Jan. 20, 2006), 

available at https://www.fincen.gov/resources/ 

statutes-regulations/guidance/interagencyguidance-sharing-suspicious-activity-reports. 

16 Id. The 2006 Guidance states that depository 

institutions, as part of their AML programs, must 

have written confidentiality agreements or 

arrangements in place specifying that the head 

office or controlling company must protect the 

confidentiality of the SARs through appropriate 

internal controls. The Guidance states that the 

confidentiality agreements or arrangements must 

also address concerns about the ability of the 

foreign entity to protect the SAR in light of possible 

requests for disclosure abroad that may be subject 

to foreign law. 

17See Financial Crimes Enforcement Network, 

Guidance on Sharing Suspicious Activity Reports 

by Securities Broker-Dealers, Futures Commission 

Merchants, and Introducing Brokers in 

Commodities, Jan. 20, 2006, available at https://

www.fincen.gov/resources/statutes-regulations/ 

guidance/guidance-sharing-suspicious-activityreports-securities. On October 4, 2006, FinCEN also 

issued guidance permitting mutual funds to share 

SARs with the investment adviser that controls the 

fund, whether domestic or foreign. See Financial 

Crimes Enforcement Network, FIN–2006–G013, 

Frequently Asked Questions Suspicious Activity 

Reporting Requirements for Mutual Funds, (Oct. 4, 

2006), available at https://www.fincen.gov/ 

resources/statutes-regulations/guidance/frequentlyasked-questions-suspicious-activity-reporting. 

18See the 2006 Guidance; see also Financial 

Crimes Enforcement Network, Guidance on Sharing 

of Suspicious Activity Reports by Securities BrokerDealers, Futures Commission Merchants, and 

Introducing Brokers in Commodities, (Jan. 20, 

2006). 

19Financial Crimes Enforcement Network, 

Confidentiality of Suspicious Activity Reports, 75 

FR 75593, (Dec. 3, 2010). 

20Financial Crimes Enforcement Network, FIN– 

2010–G006, Sharing Suspicious Activity Reports by 

Depository Institutions with Certain U.S. Affiliates, 

(Nov. 23, 2010) (the ‘‘2010 Guidance’’), available at 

https://www.fincen.gov/sites/default/files/shared/ 

fin-2010-g006.pdf. 

21See 31 CFR 1023.320 (brokers or dealers in 

securities); 1026.320 (futures commission 

merchants and introducing brokers in 

commodities); 1022.320 (money services 

businesses); 1029.320 (loan or finance companies). 

22Financial Crimes Enforcement Network, FIN– 

2010–G005, Sharing Suspicious Activity Reports by 

Securities Broker-Dealers, Mutual Funds, Futures 

Commission Merchants, and Introducing Brokers in 

Commodities with Certain U.S. Affiliates, (Nov. 23. 

2010), available at https://www.fincen.gov/ 

resources/statutes-regulations/guidance/sharingsuspicious-activity-reports-securities-broker. 

transactions.7 FinCEN’s implementing 

regulations require a financial 

institution to file a SAR if the financial 

institution knows, suspects, or has 

reason to suspect that a transaction 

conducted or attempted by, at, or 

through the financial institution: (i) 

Involves funds derived from illegal 

activity or is an attempt to disguise 

funds derived from illegal activity; (ii) is 

designed to evade regulations 

promulgated under the BSA; or (iii) 

lacks a business or apparent lawful 

purpose or is not the sort in which the 

particular customer would normally 

engage and the financial institution 

knows of no reasonable explanation for 

the transaction.8 Pursuant to FinCEN’s 

regulations implementing the BSA, 

financial institutions obligated to file 

SARs include banks, casinos and card 

clubs, money services businesses, 

brokers or dealers in securities, mutual 

funds, insurance companies, futures 

commission merchants and introducing 

brokers in commodities, loan and 

finance companies, and housing 

government-sponsored enterprises.9

B. SAR Confidentiality Regulations 

The BSA provides that a financial 

institution and its directors, officers, 

employees, and agents are prohibited 

from notifying any person involved in a 

suspicious transaction that the 

transaction was reported, or from 

otherwise revealing any information 

that would reveal that the transaction 

has been reported.10 FinCEN has issued 

implementing regulations that generally 

prohibit the disclosure of a SAR or 

information revealing the existence of a 

SAR by a financial institution and its 

directors, officers, employees, and 

agents.11 Provided that no person 

involved in a reported transaction is 

notified that the transaction has been 

reported, the regulation specifies that it 

is not to be construed as prohibiting 

disclosure to appropriate law 

enforcement agencies, regulatory 

authorities that examine the financial 

institution for compliance with the 

BSA, or FinCEN.12 The regulation 

further specifies that it is not to be 

construed as prohibiting a financial 

institution to share the underlying facts, 

transactions, and documents upon 

which a SAR is based, including sharing 

such materials with another financial 

institution for the preparation of a joint 

SAR.13 It also specifies that a financial 

institution can share a SAR within its 

corporate organizational structure for 

purposes consistent with Title II of the 

BSA as determined by regulation or in 

guidance.14

C. FinCEN’s Prior Guidance on Sharing 

SARs Within Corporate Organizational 

Structures 

In 2006, FinCEN and the Federal 

banking agencies issued guidance on the 

sharing of SARs with head offices and 

controlling companies (2006 

Guidance).15 The 2006 Guidance states 

that a U.S. branch of a foreign bank may 

share a SAR with its head office, and a 

U.S. bank or savings association may 

share a SAR with its controlling 

company, whether domestic or 

foreign.16 At the same time, FinCEN 

issued similar guidance permitting 

securities broker-dealers, futures 

commission merchants, and introducing 

brokers in commodities to share SARs 

with parent entities, both domestic and 

foreign, and later in 2006, FinCEN 

released related guidance to mutual 

funds.17 FinCEN permitted such sharing 

because a financial institution’s head 

office or controlling entity may have a 

need to discharge oversight 

responsibilities with respect to 

enterprise-wide risk management and 

compliance with applicable laws and 

regulations.18

In 2010, following an amendment to 

FinCEN’s SAR regulations,19 FinCEN 

issued guidance on sharing SARs with 

certain U.S. affiliates of depository 

institutions (2010 Guidance).20 The 

2010 Guidance generally permits the 

sharing of SARs and related information 

by depository institutions with their 

affiliates that are subject to a SAR 

regulation. U.S. affiliates of depository 

institutions that are subject to SAR 

filing obligations include brokers or 

dealers in securities, futures 

commission merchants and introducing 

brokers in commodities, money services 

businesses, and residential mortgage 

lenders or originators.21 At the same 

time, FinCEN issued similar guidance 

permitting securities broker-dealers, 

mutual funds, futures commission 

merchants, and introducing brokers in 

commodities to share SARs with certain 

affiliates.22 The 2010 Guidance also 


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23Financial Crimes Enforcement Network, FIN– 

2017–G001, Sharing Suspicious Activity Reports 

with U.S. Parents and Affiliates of Casinos, (Jan. 4, 

2017), available at https://www.fincen.gov/sites/ 

default/files/2017-01/FinCENGuidanceJan4_

508FINAL.pdf. 

24See the 2006 Guidance, supra note 15, (stating 

that a depository institution must have written 

confidentiality agreements or arrangements in place 

specifying that the head office or controlling 

company must protect the confidentiality of the 

SAR through appropriate internal controls); see also 

the 2010 Guidance, supra note 20, (stating that a 

depositiory institution, as part of its internal 

controls, should have policies and procedures in 

place to ensure its affiliates protect the 

confidentiality of the SAR). 

25See AML Act Section 6002. 

26See 31 U.S.C. 5318(g)(8). 

27See 31 U.S.C. 5318(g)(8)(A)(ii). 

28See 31 U.S.C. 5318(g)(8)(B)(ii). 

29See 31 U.S.C. 5318(g)(8)(B)(iii). 

30See 31 U.S.C. 5318(g)(8)(C)(i). 

31See 31 U.S.C. 5318(g)(8)(C)(ii). 

32See 31 U.S.C. 5318(g)(8)(D). 

33See 31 U.S.C. 5318(g)(9). 

34See 31 U.S.C. 5318(g)(10). 

35See 31 U.S.C. 5318(g)(11)(A). 

explained that ‘‘[b]ecause foreign 

branches of U.S. banks are regarded as 

foreign banks for purposes of the BSA, 

under this guidance, they are ‘affiliates’ 

that are not subject to a SAR regulation’’ 

and therefore a U.S. bank may not share 

SARs, or any information that would 

reveal the existence of the SAR, with its 

foreign branches. In 2017, FinCEN also 

issued guidance confirming that casinos 

and card clubs may share SARs with 

domestic parents and affiliates, subject 

to certain limitations.23

The 2006 and 2010 Guidance also 

made clear that there may be 

circumstances under which the 

financial institution, its affiliate, or both 

entities could be liable for direct or 

indirect disclosure of a SAR or any 

information that would reveal the 

existence of a SAR. Accordingly, the 

2006 and 2010 Guidance stated that a 

financial institution, as part of its 

internal controls, should have policies 

and procedures in place to protect the 

confidentiality of the SAR.24

D. The AML Act 

On January 1, 2021, Congress enacted 

the AML Act to, among other things, 

improve coordination and information 

sharing among the agencies tasked with 

administering AML/countering the 

financing of terrorism (AML/CFT) 

requirements and to modernize the 

AML/CFT laws to better adapt the 

government and private sector response 

to new and emerging threats.25

Section 6212(a) of the AML Act 

amends the BSA by adding 31 U.S.C. 

5318(g)(8), which requires the Secretary 

to issue rules establishing a pilot 

program that permits a financial 

institution with a SAR reporting 

obligation to share SARs and related 

information with its foreign branches, 

subsidiaries, and affiliates for the 

purpose of combating illicit finance 

risks.26 In issuing the rules, the 

Secretary must ensure that the sharing 

of information is limited by the 

requirements of Federal and State law 

enforcement operations, takes into 

account potential concerns of the 

intelligence community, is subject to 

appropriate standards and requirements 

regarding data security and the 

confidentiality of personally identifiable 

information, and excludes sharing with 

foreign branches, subsidiaries, and 

affiliates in certain jurisdictions.27

Further, the pilot program permits the 

Secretary to consider, implement, and 

enforce provisions that would hold a 

foreign affiliate of a U.S. financial 

institution liable for the disclosure of 

SARs and related information shared 

under the pilot program.28

The pilot program must terminate 

three years after the date of the AML 

Act’s enactment (i.e., January 1, 2024), 

unless the Secretary extends the pilot 

for not more than two years upon 

submitting a report to the Senate 

Committee on Banking, Housing, and 

Urban Affairs and the House Committee 

on Financial Services that includes: (1) 

A certification and a detailed 

explanation of the reasons that the 

extension is in the national interest of 

the United States; (2) an evaluation of 

the usefulness of the pilot program, 

including a detailed analysis of any 

illicit activity identified or prevented as 

a result of the program, after appropriate 

consultation by the Secretary with the 

participants in the pilot program; and 

(3) a detailed legislative proposal 

providing for a long-term extension of 

activities under the pilot program, 

measures to ensure data security, and 

confidentiality of personally identifiable 

information, including expected 

budgetary resources for those activities, 

if the Secretary determines that a longterm extension is appropriate.29

Under the pilot program, a financial 

institution may not share SARs or 

related information with a foreign 

branch, subsidiary, or affiliate located 

in: (1) The People’s Republic of China; 

(2) the Russian Federation; or (3) a 

jurisdiction that is a state sponsor of 

terrorism, that is subject to sanctions 

imposed by the Federal Government, or 

that the Secretary has determined 

cannot reasonably protect the security 

and confidentiality of such 

information.30 The Secretary may make 

exceptions, on a case-by-case basis, for 

a financial institution located in the 

People’s Republic of China or the 

Russian Federation by notifying the 

Senate Committee on Banking, Housing, 

and Urban Affairs and the House 

Committee on Financial Services that 

such an exception is in the national 

security interest of the United States.31

Not later than 360 days after the pilot 

program rules are promulgated, and 

annually thereafter for three years, the 

Secretary, or the Secretary’s designee, 

must brief the Senate Committee on 

Banking, Housing, and Urban Affairs 

and the House Committee on Financial 

Services on: (1) The degree of 

information sharing permitted under the 

pilot program and a description of 

criteria used by the Secretary to evaluate 

the appropriateness of the information 

sharing; (2) the effectiveness of the pilot 

program in identifying or preventing the 

violation of a United States law or 

regulation and mechanisms that may 

improve that effectiveness; and (3) any 

recommendations to amend the design 

of the pilot program.32

Information related to reports of 

suspicious transactions received by a 

financial institution from a foreign 

affiliate with respect to a suspicious 

transaction relevant to a possible 

violation of law or regulation shall be 

subject to confidentiality requirements 

that are the same as those that apply to 

SARs filed under 31 U.S.C. 5318(g)(1).33

No financial institution may establish or 

maintain any operation located outside 

of the United States the primary 

purpose of which is to ensure 

compliance with the BSA as a result of 

the sharing granted under the pilot 

program.34 Finally, an ‘‘affiliate’’ is 

defined for purposes of the pilot 

program as ‘‘an entity that controls, is 

controlled by, or is under common 

control with another entity.’’ 35 The 

terms ‘‘Bank Secrecy Act,’’ ‘‘State bank 

Supervisor,’’ and ‘‘State credit union 

supervisor’’ have the same meanings 

given in Section 6003 of the AML Act. 

III. Section-by-Section Analysis 

This proposed rule would add a new 

section at 31 CFR 1010.240 establishing 

a pilot program that permits financial 

institutions with a SAR reporting 

obligation under 31 U.S.C. 5318(g) and 

FinCEN’s regulations to share SARs and 

related information with their foreign 

branches, subsidiaries, and affiliates for 

the purpose of combating illicit finance 

risks. 

Application process: In issuing the 

pilot program rules, FinCEN must take 

into account certain considerations to 

ensure that the sharing of information 

permitted under the pilot program is 

limited by the requirements of Federal 


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36See 31 CFR 1020.320(e), 1021.320(e), 

1022.320(d), 1023.320(e), 1024.320(d), 1025.320(e), 

and 1026.320(e). Filing institutions, and their 

current and former directors, officers, employees, 

and agents, are prohibited from disclosing SARs, or 

any information that would reveal the existence of 

a SAR. 

37While there is no consultation requirement in 

31 U.S.C. 5318(g)(8), FinCEN intends to consult 

with Federal functional regulators with respect to 

their assessment of the financial institution’s 

suitability for participation in the pilot program. 

For example, the relevant Federal functional 

regulator may have particular expertise with respect 

to a financial institution’s risk profile and 

supervisory history with respect to BSA. 

and State law enforcement operations, 

takes into account potential concerns of 

the intelligence community, and is 

subject to appropriate standards and 

requirements regarding data security 

and the confidentiality of personally 

identifiable information. Participant 

financial institutions must also comply 

with the applicable jurisdictional 

restrictions described above. 

To that end, the proposed rule 

requires a financial institution to submit 

a written application to FinCEN that: (1) 

Identifies the institution’s point of 

contact for pilot program-related 

correspondence; (2) specifies the foreign 

branches, subsidiaries, and affiliates 

with which the financial institution 

intends to share SARs and related 

information; (3) specifies the particular 

purpose or purposes for which the 

foreign branches, subsidiaries, and 

affiliates intend to use SARs and related 

information, including the operational 

jurisdictions of such entities, as well as 

whether such entities will be providing 

reciprocal information to the applicant 

financial institution; (4) provides an 

estimated commencement date for the 

pilot program, and; (5) describes 

internal controls in place to prevent 

unauthorized disclosures of SARs and 

related information.36 Given the 

sensitive nature of the information 

contained in or relating to a SAR, 

including personally identifiable 

information of U.S. persons, and the 

jurisdictional limitations set out in the 

statute, FinCEN believes a formal 

application and approval process is 

necessary to ensure that adequate 

safeguards are in place before allowing 

a financial institution to share SARs and 

related information with its foreign 

branches, subsidiaries, and affiliates. 

The proposed rule also specifies that 

applicant financial institutions should, 

at a minimum, implement certain 

controls, including confidentiality 

agreements and procedures for 

personnel located in the United States 

to review requests from foreign law 

enforcement, foreign regulators, or an 

outside foreign party for SARs and 

related information, and to immediately 

notify FinCEN of such requests. Given 

the sensitive nature of SAR information, 

participant financial institutions and 

their foreign branches, subsidiaries, or 

affiliates must direct the requesting 

authority to both contact FinCEN about 

obtaining the requested SAR or related 

information and to seek to obtain such 

records or information through a request 

to the United States pursuant to a 

mutual legal assistance treaty or another 

appropriate mechanism for obtaining 

records from the United States. 

Participant financial institutions shall 

also maintain records sufficient to 

identify the specific foreign 

jurisdictions in which branches, 

subsidiaries, or affiliates of financial 

institutions are located and that 

received any specific SAR or related 

information. Such records shall be 

maintained so as to enable the 

participant financial institution to 

readily report this information to 

FinCEN upon request. FinCEN is 

including this requirement because, in 

the event of an unauthorized disclosure, 

it will assist in FinCEN’s efforts to 

identify those individuals and entities 

that were in possession of SARs and 

related information that were 

inappropriately disclosed. 

The proposed rule requires that an 

application specify those foreign 

branches, subsidiaries, and affiliates 

with which a financial institution 

intends to share SARs and related 

information pursuant to the proposed 

pilot program. Upon receipt of an 

application, FinCEN would determine a 

financial institution’s suitability for 

participation in the pilot program based 

on FinCEN’s assessment of the financial 

institution’s internal controls, as well as 

the entities with which it intends to 

share information and corresponding 

jurisdictions in which the entities are 

located. FinCEN will notify the financial 

institution’s relevant Federal functional 

regulator of the application. FinCEN 

will also consult with the relevant 

Federal functional regulator and other 

relevant agencies on the application, as 

needed. The proposed rule also states 

that FinCEN will share information 

received pursuant to the application 

process with relevant Federal functional 

regulators, or, as appropriate, other 

relevant agencies.37 The proposed rule 

also states that FinCEN will limit the 

sharing of SARs and related information 

based on the requirements of Federal 

and State law enforcement operations, 

and will take into account concerns of 

the intelligence community. 

FinCEN expects that the resourcing 

and strengths of compliance programs 

and internal control frameworks will 

vary among applicant financial 

institutions. Consequently, the proposed 

rule permits FinCEN to require 

implementation of additional internal 

controls to ensure data security and 

confidentiality of SARs and related 

information, including the personally 

identifiable information contained 

therein, as a prerequisite to approving 

an application. As the pilot program 

matures, and best practices for ensuring 

data security and confidentiality are 

identified, FinCEN may require certain 

participant financial institutions to 

implement additional internal controls 

as a condition for continued 

participation in the pilot program. In 

response to concerns of the intelligence 

community, or to take into account 

requirements for State and Federal law 

enforcement operations, FinCEN may 

also require participant financial 

institutions to enhance or modify 

internal controls as a condition for 

continued participation in the pilot 

program. 

The proposed rule also provides a 

mechanism by which participant 

financial institutions may seek 

modifications to the internal controls 

specified in its FinCEN-approved 

application to address operational 

contingencies, resourcing challenges, or 

other circumstances. Specifically, the 

proposed rule would require participant 

financial institutions to submit a request 

to FinCEN that details the nature and 

extent of the requested changes to 

applicable internal controls before 

implementing any such modifications. 

FinCEN, in consultation with relevant 

Federal functional regulators, as needed, 

would approve or reject such requests 

for modification, or condition its 

approval on implementation of 

additional controls, as appropriate. 

FinCEN, in its sole discretion, may also 

modify a financial institution’s 

participation in the pilot program based 

on the requirements of Federal and State 

law enforcement operations or concerns 

of the intelligence community. 

The proposed rule would permit 

FinCEN to terminate a financial 

institution’s participation in the pilot 

program at any time. Grounds for 

termination could include, but are not 

limited to, actual, or unreasonable risk 

of, unauthorized disclosures of SARs 

and related information; significant 

internal control deficiencies identified 

while participating in the pilot program; 

failure to adhere to the specific 

requirements for participation; or any 

other issues that indicate that a 

participant financial institution is 

unable to adequately safeguard against 

unauthorized disclosures of SARs and 


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38As the pilot program matures, FinCEN may 

request additional data points from pilot program 

participants to fulfil these statutory obligations. 

39See https://www.fincen.gov/resources/statutesand-regulations/311-special-measures. 

related information or to ensure 

adequate data security and 

confidentiality of personally identifiable 

information. 

Given the limited duration of the pilot 

program, FinCEN will make every effort 

to expeditiously review applications 

and provide responses to potential 

participant financial institutions in a 

timely manner. To that end, FinCEN 

will seek to provide responses within 90 

days of receipt of an application to 

participate in the pilot program. FinCEN 

welcomes comments on whether this 

time period is sufficient to encourage 

participation in the pilot program 

during the timeframe allotted by 

Congress. 

Quarterly reporting requirement: The 

proposed rule would require participant 

financial institutions to report certain 

information to FinCEN on a quarterly 

basis, including: (1) The total number of 

SARs and related information shared; 

(2) the name and jurisdiction of each 

entity that received SARs and related 

information, the relationship between 

the entity and the participant financial 

institution, and the intended purposes 

and uses for which the SARs and related 

information were shared; (3) legal and 

compliance issues encountered; (4) 

technical difficulties and challenges; (5) 

enhancements to the financial 

institution’s AML/CFT program enabled 

as a result of participating in the pilot 

program, to include reallocation of 

resources to higher-priority AML/CFT 

risks, such as those described in 

FinCEN’s National AML/CFT Priorities, 

issued pursuant to Section 5318(h)(4)(A) 

of the BSA; and, (6) lessons learned, to 

include any identified inefficiencies in 

the institution’s AML/CFT program. The 

proposed rule’s quarterly reporting 

requirement would provide a control to 

ensure that the sharing of information 

permitted under the pilot program is in 

compliance with the statutory 

requirements with regard to Federal and 

State law enforcement operations, 

concerns of the intelligence community, 

and ensuring appropriate standards and 

requirements are in place with respect 

to data security and confidentiality of 

personally identifiable information. 

FinCEN expects that quarterly reporting 

will yield critical information and data 

that should shed light on the 

effectiveness of the pilot program and 

inform best practices for information 

sharing and confidentiality of SARs and 

related information. FinCEN intends to 

use this information to satisfy specific 

statutory reporting requirements, 

including annual implementation 

updates to Congress, as well as the 

report and accompanying legislative 

proposal for any request to extend the 

pilot program.38

Quarterly reporting should also 

enable FinCEN, and Federal functional 

regulators, as appropriate, to identify 

pilot program-related internal control 

deficiencies at participant financial 

institutions that may need to be 

addressed as a condition for continued 

participation in the pilot program. For 

instance, a participant financial 

institution may report a legal and 

compliance issue under the rule, such 

as an internal audit finding of 

ineffective controls on SAR 

confidentiality. To ensure ongoing 

compliance with the requirements of the 

pilot program, and a financial 

institution’s suitability to continue to 

participate, FinCEN intends to share 

these quarterly reports with relevant 

Federal functional regulators and 

consult with them as appropriate. 

Prohibition involving certain 

jurisdictions: The proposed rule would 

prohibit participant financial 

institutions from sharing SARs and 

related information with foreign 

branches, subsidiaries, and affiliates in 

specific jurisdictions, including the 

People’s Republic of China, the Russian 

Federation, jurisdictions that are state 

sponsors of terrorism, jurisdictions 

subject to sanctions imposed by the 

Federal Government, and jurisdictions 

the Secretary has determined cannot 

reasonably protect the security and 

confidentiality of such information. 

For purposes of this section, a ‘‘state 

sponsor of terrorism’’ is a jurisdiction so 

determined by the U.S. Department of 

State. Jurisdictions ‘‘subject to sanctions 

imposed by the Federal Government’’ 

are jurisdictions with governments 

whose property and interests in 

property in U.S. jurisdiction are blocked 

pursuant to U.S. sanctions authorities, 

as well as jurisdictions subject to broad 

prohibitions on transactions by U.S. 

persons involving that jurisdiction, such 

as prohibitions on importing or 

exporting goods, services, or technology 

to the jurisdiction or dealing in goods or 

services originating from the 

jurisdiction, pursuant to U.S. sanctions 

authorities. FinCEN welcomes 

comments on this interpretation, and 

encourages financial institutions to 

monitor for sanctions issued by the U.S. 

Government to ensure compliance with 

this requirement. 

Under 31 U.S.C. 

5318(g)(8)(C)(i)(III)(c), as added by 

Section 6212(C)(i)(III)(cc) of the AML 

Act, FinCEN has determined that a 

jurisdiction that FinCEN has identified 

as a primary money laundering concern 

pursuant to Sections 311 of the USA 

PATRIOT Act (Pub. L. 107–56) or 9714 

of the Combating Russian Money 

Laundering Act (Pub. L. 116–283) 

cannot reasonably protect the security 

and confidentiality of SARs and related 

information given the deficient AML/ 

CFT controls in those jurisdictions as 

identified by FinCEN. The proposed 

rule, therefore, also prohibits financial 

institutions from sharing SARs and 

related information with foreign 

branches, subsidiaries, and affiliates in 

jurisdictions identified by FinCEN as 

such.39 FinCEN may further restrict 

sharing of SARs and related 

information, as authorized by statute, 

based on requirements of Federal or 

State law enforcement operations, the 

concerns of the intelligence community, 

or where FinCEN has otherwise 

determined that such information 

cannot reasonably be protected. 

The proposed rule would authorize 

the Secretary to grant narrow exceptions 

on a case-by-case basis for foreign 

branches, subsidiaries, and affiliates 

located in the People’s Republic of 

China and the Russian Federation. 

Under the proposed rule, the Secretary 

would be required to notify the 

Committee on Banking, Housing, and 

Urban Affairs of the U.S. Senate and the 

Committee on Financial Services of the 

U.S. House of Representatives that such 

exceptions are in the national security 

interest of the United States. 

Treatment of foreign jurisdictionoriginated reports. As required by 31 

U.S.C. 5318(g)(9), as added by the AML 

Act, information related to a report 

received by a financial institution from 

a foreign affiliate with respect to a 

suspicious transaction relevant to a 

possible violation of law or regulation 

shall be subject to the same 

confidentiality requirements as reports 

filed under 31 U.S.C. 5318(g). 

Prohibition on offshoring compliance 

operations: As required by 31 U.S.C. 

5318(g)(10), as added by the AML Act, 

the proposed rule would expressly 

prohibit participant financial 

institutions from establishing or 

maintaining any operation located 

outside of the United States the primary 

purpose of which is to ensure 

compliance with the BSA as a result of 

the information sharing granted by this 

pilot program. 

Duration of the pilot program: The 

proposed rule implements the statutory 

requirement that the pilot program 

terminate three years after enactment of 


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40See, e.g., 31 CFR 1020.320(e)(1)(ii) (banks). 

41 31 U.S.C. 5312(b)(1); see also 31 CFR 

1010.100(o) (stating that ‘‘domestic’’ refers ‘‘to the 

doing of business within the United States’’ or ‘‘the 

performance . . . of functions within the United 

States’’). 

the AML Act. The rule would permit the 

Secretaryto extend the pilot program for 

not longer than two years upon 

reporting to the Committee on Banking, 

Housing, and Urban Affairs of the 

Senate and the Committee on Financial 

Services of the House of 

Representatives, as required by the AML 

Act. 

Prohibition on Disclosure: Under 31 

U.S.C. 5318(g)(8)(B)(ii), the pilot 

program shall ‘‘permit the Secretary to 

consider, implement, and enforce 

provisions that would hold a foreign 

affiliate of a U.S. financial institution 

liable for the disclosure of SARs and 

related information.’’ The proposed rule 

provides that, except to the extent 

authorized pursuant to the pilot 

program or in existing regulations or 

guidance, a participant financial 

institution, its foreign branches, 

subsidiaries and affiliates, and certain 

other associated individuals may not 

disclose a SAR or related information 

shared pursuant to the pilot program. 

The reference to ‘‘existing regulations 

and guidance’’ in the proposed rule 

accounts for exceptions to SAR 

confidentiality that apply to filing 

institutions located or doing business 

within the United States, and their 

directors, officers, employees, or 

agents.40

A participant financial institution 

must implement policies, procedures, 

and internal controls that are reasonably 

designed to ensure that its foreign 

branches, subsidiaries, or affiliates do 

not permit unauthorized disclosures of 

SARs or related information. FinCEN, in 

consultation with relevant Federal 

functional regulators, as needed, will 

assess the sufficiency of a financial 

institution’s internal controls before 

approving an application to participate 

in the pilot program. SARs and related 

information contain highly sensitive 

information, including sensitive 

information about U.S. persons, and it is 

vital that they be protected. FinCEN 

encourages participant financial 

institutions to ensure that their foreign 

branches, subsidiaries, or affiliates have 

sufficient internal controls in place 

prior to sharing any SARs or related 

information. 

Under 31 U.S.C. 5321 and 31 U.S.C. 

5322, civil penalties and criminal 

sanctions may be imposed on 

participant financial institutions, 

directors, officers, employees, or agents 

for violations of the prohibition on the 

disclosure of SARs and related 

information. The proposed rule makes 

clear that this prohibition also applies to 

foreign affiliates, and that foreign 

affiliates can be held liable for civil 

penalties and criminal sanctions 

pursuant to 31 U.S.C. 5321 and 31 

U.S.C. 5322. Civil money penalties 

under 31 U.S.C. 5321(a)(1) apply to a 

‘‘domestic financial institution or 

nonfinancial trade or business,’’ and the 

term ‘‘domestic financial institution’’ is 

defined as referring to ‘‘an action in the 

United States’’ of the financial 

institution.41 However, 31 U.S.C. 

5318(g)(8)(B)(ii) specifically authorizes 

the Secretary to implement and enforce 

‘‘provisions that would hold a foreign 

affiliate of a U.S. financial institution 

liable for the disclosure of SARs and 

related information.’’ In light of that 

mandate, FinCEN would construe its 

authority to impose civil money 

penalties under 31 U.S.C. 5321(a)(1) as 

applying to foreign affiliates that 

disclose SARs and related information 

in violation of the proposed rule, 

without regard to whether the 

unauthorized disclosure occurs in the 

United States. 

Definitions: 31 U.S.C. 5318(g)(11) 

defines an affiliate as ‘‘an entity that 

controls, is controlled by, or is under 

common control with another entity.’’ 

The broad nature of this definition 

would include branches and 

subsidiaries of participant financial 

institutions. Therefore, the proposed 

rule both adopts this definition and 

includes branches and subsidiaries 

within the term affiliate for the purpose 

of this proposed pilot program. 

IV. Request for Comment 

FinCEN welcomes comment on all 

aspects of this proposed rule and 

encourages all interested parties to 

provide their views. 

With respect to the effect of 

establishing a pilot program to permit 

financial institutions to share SARs with 

foreign branches, subsidiaries, and 

affiliates, FinCEN in particular requests 

comment from financial institutions and 

members of the public on the following 

questions: 

(1) Describe the expected costs and 

associated burdens of complying with 

the proposed pilot program 

requirements, to the extent that a 

financial institution chooses to 

participate. 

(2) Describe the expected impact, 

including costs and/or associated 

burdens, of complying with the 

statutory prohibition on offshoring 

compliance operations within the 

context of the proposed pilot program. 

(3) Describe expected technical 

challenges to implementation that could 

make it harder or more expensive to 

participate in the pilot program. 

(4) Describe the expected benefits to 

a financial institution from being 

permitted to share SARs and related 

information with a foreign branch, 

subsidiary, or affiliate for the purpose of 

combating illicit finance risks. Would 

the proposed sharing of SARs and 

related information enable a financial 

institution to shift or allocate resources 

to higher-priority AML/CFT risks? 

(5) Has FinCEN struck a reasonable 

balance between facilitating information 

sharing of SARs and related information 

permitted under the pilot program and 

imposing conditions to protect the 

confidentiality and prevent 

unauthorized disclosures of SARs and 

related information? If not, how could 

FinCEN more reasonably balance these 

considerations? 

(6) Describe potential challenges in 

protecting the confidentiality of SARs 

and related information and preventing 

unauthorized disclosures in connection 

with participation in the pilot program. 

Are there additional provisions FinCEN 

could include in the pilot program that 

would better enable a financial 

institution to comply with the program 

confidentiality requirements and ensure 

accurate reporting? How does a 

financial institution expect to protect 

SAR confidentiality and prevent 

unauthorized SAR disclosures if foreign 

regulatory examinations of foreign 

affiliates of U.S. financial institutions 

requests access to such foreign 

institutions’ files? Are there 

jurisdictions in which this information 

would be subject to disclosure to nongovernment parties by legal process? 

(7) For the quarterly reports FinCEN 

is proposing to require, are there any 

other particular metrics FinCEN should 

include in the current list for required 

feedback? 

(8) Is FinCEN’s proposed timeline of 

90 days to respond to application 

requests reasonable? Would such a 

timeline encourage financial institutions 

to participate in the pilot program? 

(9) Should FinCEN consider a 

broader, longer-term program that 

would enable financial institutions to 

share SARs and related information 

with their foreign branches, 

subsidiaries, and affiliates for the 

purpose of combating illicit finance 

risks? 

V. Regulatory Analysis 

A. Executive Orders 13563 and 12866 

Executive Orders 13563 and 12866 

direct agencies to assess costs and 


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42Financial Crimes Enforcement Network, 

Agency Information Collection Activities; Proposed 

Renewal; Comment Request; Renewal Without 

Change of the Bank Secrecy Act Reports by 

Financial Institutions of Suspicious Transactions at 

31 CFR 1020.320, 1021.320, 1022.320, 1023.320, 

1024.320, 1025.320, 1026.320, and 1029.320, and 

FinCEN Report 111—Suspicious Activity Report, 85 

FR 31598 (May 26, 2020). 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, and public health and 

safety effects; distributive impacts; and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. It has 

determined that this proposed rule is 

not a significant regulatory action for 

purposes of Executive Order 12866. 

Accordingly, a regulatory impact 

analysis is not required. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

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

either to provide an initial regulatory 

flexibility analysis with a proposed rule 

or certify that the proposed rule will not 

have a significant economic impact on 

a substantial number of small entities. 

This proposed regulation on its face 

would apply to all financial institutions 

with a SAR reporting obligation under 

31 U.S.C. 5318(g). However, because of 

the voluntary nature of the proposed 

rule, only financial institutions 

choosing to participate in the pilot 

program would be affected. FinCEN 

believes the proposed regulatory 

changes are unlikely to have a 

significant economic impact on a 

substantial number of small entities, as 

smaller entities are less likely to have 

foreign-based branches, subsidiaries, 

and affiliates. FinCEN, however, 

recognizes the limitations in readily 

available data about potential costs and 

benefits and has prepared an initial 

regulatory flexibility analysis pursuant 

to the RFA. FinCEN welcomes 

comments on all aspects of the initial 

regulatory flexibility analysis. A final 

regulatory flexibility analysis will be 

conducted after consideration of 

comments received during the comment 

period. 

i. Statement on the Need for, and 

Objectives of, the Proposed Regulations 

The need for, and objectives of, the 

proposed regulations are established in 

31 U.S.C. 5318(g), as amended by 

Section 6212 of the AML Act. The 

purpose of the proposed regulation is to 

establish a pilot program that permits a 

financial institution with a reporting 

obligation under 31 U.S.C. 5318(g) to 

share information related to SARs, 

including that such a report has been 

filed, with the institution’s foreign 

branches, subsidiaries, and affiliates for 

the purpose of combating illicit finance 

risks. 

ii. Small Entities Affected by the 

Proposed Regulation 

The proposed regulations would 

apply to financial institutions with a 

reporting obligation under 31 U.S.C. 

5318(g). FinCEN most recently 

identified these institutions in the 

Paperwork Reduction Act of 1995 (PRA) 

notice renewing information collection 

related to SARs.42 While the full list of 

financial institutions with a reporting 

obligation under 31 U.S.C. 5318(g) 

includes a substantial number of small 

entities, FinCEN does not believe that a 

substantial number of small entities 

would be affected by the proposed 

regulation. The proposed pilot program 

would apply only to those institutions 

that choose to participate, and it is 

unlikely that small entities would 

choose to participate in a SAR sharing 

pilot program, as they are less likely to 

have foreign branches, subsidiaries, and 

affiliates. 

iii. Compliance Requirements 

The compliance costs for entities that 

choose to participate in the pilot 

program would include implementation 

and administrative costs. These would 

include costs to file an initial 

application with, and provide quarterly 

updates to, FinCEN, as well as costs 

associated with ensuring that adequate 

controls are in place to abide by the 

conditions imposed by FinCEN. 

iv. Duplicative, Overlapping, or 

Conflicting Federal Rules 

FinCEN is not aware of any 

duplicative, overlapping, or conflicting 

Federal rules with respect to pilot 

programs that enable financial 

institutions to share SARs and related 

information with their foreign branches, 

subsidiaries, and affiliates. As discussed 

previously, existing guidance from 

FinCEN and Federal functional 

regulators prohibits U.S. financial 

institutions from sharing SARs with 

foreign branches, subsidiaries, and 

affiliates, and allows only for sharing 

SARs with head offices and controlling 

entities of U.S. financial institutions, 

consistent with the 2006 Guidance, and 

U.S. affiliates within a financial 

institution’s corporate organizational 

structure, consistent with the 2010 

Guidance. 

v. Significant Alternatives to the 

Proposed Regulations 

FinCEN considered foregoing the 

requirement for financial institutions to 

submit an application and provide 

quarterly updates on the progress of the 

pilot program. Given the sensitive 

nature of the information contained in 

or relating to a SAR, including 

personally identifiable information of 

U.S. persons, and the jurisdictional 

limitations set out in the statute, 

FinCEN proposes requiring an 

application and approval process to 

ensure that adequate safeguards are in 

place before allowing a financial 

institution to share information with its 

foreign branches, subsidiaries, and 

affiliates. Additionally, as required by 

the AML Act, FinCEN must provide 

annual updates to the Committee on 

Banking, Housing, and Urban Affairs of 

the Senate and the Committee on 

Financial Services of the House of 

Representatives on the pilot program, 

and submit a detailed legislative 

proposal concerning the long-term 

extension of the pilot, if appropriate. 

FinCEN therefore proposes to require 

financial institutions to provide 

quarterly updates to ensure that 

FinCEN, in consultation with relevant 

Federal functional regulators, as needed, 

can meet these statutory requirements. 

C. Unfunded Mandates Act 

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 

the 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. Taking into 

account the factors noted above and 

using conservative estimates of average 

labor costs in evaluating the cost of the 

burden imposed by the proposed 

regulation, FinCEN has determined that 

it is not required to prepare a written 

statement under Section 202. 

D. Paperwork Reduction Act of 1995 

The recordkeeping and reporting 

requirements contained in this proposed 

rule (31 CFR 1010.240) have been 

submitted by FinCEN to the Office of 

Management and Budget (‘‘OMB’’) for 

review in accordance with the PRA. 

Written comments and 


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43FinCEN arrived at the estimate of 58 burden 

hours by calculating 20 hours (application) + 1 hour 

(material deviations from the written agreement) + 

20 hours (confidentiality agreements) + 16 hours 

(quarterly reports) + 1 hour (law enforcement 

referrals) = 58 hours annual per financial 

institution. 

recommendations for the proposed 

information collection can be submitted 

by visiting www.reginfo.gov/public/do/ 

PRAMain. Find this particular 

document by selecting ‘‘Currently 

Under Review—Open for Public 

Comments’’ or by using the search 

function. Comments are welcome and 

must be received by March 28, 2022. In 

accordance with the requirements of the 

PRA and its implementing regulations, 

5 CFR part 1320, the following 

information concerning the collections 

of information is presented to assist 

those persons wishing to comment on 

the information collections. Currently, 

financial institutions subject to a SAR 

requirement must collect, retain, and 

report certain information related to 

suspicious activity that takes places by, 

at, or through the financial institution. 

This proposed rule would permit 

financial institutions to share this 

information with their foreign branches, 

subsidiaries, and affiliates, subject to the 

conditions and prohibitions described 

above. As part of the application process 

to request participation in the pilot 

program, FinCEN is proposing to require 

a written submission with quarterly 

updates. As there is no requirement to 

participate in the pilot program, FinCEN 

has calculated an hourly burden only 

for those financial institutions that 

voluntarily decide to participate. 

Description of Recordkeepers: Banks, 

casinos and card clubs, money services 

businesses, brokers or dealers in 

securities, mutual funds, insurance 

companies, futures commission 

merchants and introducing brokers in 

commodities, loan or finance 

companies, and housing government 

sponsored enterprises. 

Estimated Number of Affected 

Institutions: FinCEN estimates that 

approximately 100 financial institutions 

will decide to participate in the pilot 

program, which will permit the 

financial institutions to share SARs and 

related information with their foreign 

branches, subsidiaries, and affiliates. 

Because this is a new voluntary 

program, this is an estimate, and 

FinCEN is requesting comment from 

institutions that anticipate voluntarily 

participating in the pilot program. 

Estimated Average Annual Burden 

Hours per Recordkeeper: Fewer than 59 

hours per participant financial 

institution. 

FinCEN estimates that the 

recordkeeping burden per recordkeeper 

to submit a written application to 

FinCEN requesting participation in the 

pilot program, including a description 

of internal controls in place to limit 

unauthorized disclosures of SARs and 

related information, is 20 hours per 

year. This includes filing an application 

to participate that includes notice that a 

person has been designated as a pointof-contact for ongoing correspondence 

with FinCEN during the pilot program, 

written pre-commencement notice that a 

participant financial institution has the 

appropriate agreements and internal 

controls in place to begin sharing SARs 

and related information, and written 

notice that a commencement date has 

been set. FinCEN estimates an 

additional one-hour-per-year burden in 

the event a participant financial 

institution needs to contact FinCEN in 

writing to request advance approval for 

any modifications to the commitments 

in the written application. FinCEN is 

requesting comment on how frequently 

a prospective participant financial 

institution anticipates that it may need 

to modify the commitments listed in its 

application. 

FinCEN estimates that the 

recordkeeping burden to draft and 

maintain written confidentiality 

agreements for personnel granted access 

to shared information, and to draft and 

maintain documented policies and 

procedures to account for any requests 

or demands for SARs and related 

information under foreign law, is 20 

hours per year. FinCEN estimates that 

the recordkeeping burden to prepare 

and submit quarterly reports, to include 

technical difficulties encountered, legal 

issues uncovered, the outcome of 

requests or demands made for SARs 

shared pursuant to the pilot program, 

successes or lessons learned, is four 

hours per report, for a total of 16 hours 

per year (4 hours × 4 reports per year). 

FinCEN estimates one hour for the 

recordkeeping burden associated with 

the notice requirement, where a 

participant institution must notify 

FinCEN of any requests or demands 

from foreign law enforcement, foreign 

regulators, or other outside foreign party 

for SARs and related information shared 

with foreign branches, subsidiaries, and 

affiliates pursuant to the pilot program, 

and notify FinCEN of the outcome of 

such request and any further attempts to 

obtain such SARs and related 

information. FinCEN also estimates one 

hour for the burden associated with 

maintaining records sufficient to 

identify the specific foreign 

jurisdictions in which branches, 

subsidiaries, or affiliates of financial 

institutions are located and that 

received any specific SAR or related 

information. 

FinCEN understands that some 

participant financial institutions may 

have existing SAR sharing procedures 

and confidentiality agreements in place 

that could be leveraged for the pilot 

program, whereas other institutions may 

need to create them. For that reason, 

FinCEN estimates that the proposed rule 

would add roughly 59 burden hours per 

participant financial institution a year 

based on the above calculations.43

Estimated Total Annual Reporting 

Burden: 5,900 hours (100 financial 

institutions multiplied by 59 hours). 

This is a new regulatory requirement 

that requires a new OMB control 

number. The OMB control number 

assigned to the recordkeeping and 

reporting requirements described in this 

notice is 1506–XXXX. 5,900 hours will 

be assigned to new OMB control 

number 1506–XXXX. 

Specific Questions for Comment: 

(1) FinCEN is requesting comment 

from financial institutions that 

anticipate voluntarily participating in 

the pilot program on whether the 

estimate of 100 financial institutions 

that might participate in a pilot program 

is accurate, so that FinCEN can further 

refine its estimate of expected 

participants. 

(2) Is FinCEN’s burden estimate of 20 

hours per year for a financial institution 

to draft and submit an application 

reasonable? 

(3) Is FinCEN’s burden estimate of 20 

hours per year for a financial institution 

to draft and maintain written 

confidentiality agreements and maintain 

policies and procedures related to 

disclosure requests reasonable? 

(4) Is FinCEN’s burden estimate of 16 

hours per year for a financial institution 

to submit four quarterly reports 

reasonable? 

(5) Is FinCEN’s burden estimate of one 

hour per year for a financial institution 

to refer law enforcement, regulator, or 

outside party requests to FinCEN 

reasonable? 

(6) Is FinCEN’s burden estimate of one 

hour per year for a financial institution 

to maintain records to sufficiently track 

SARs such that a participant financial 

institution can identify a specific SAR 

shared with a specific foreign branch, 

subsidiary, or affiliate? 

(7) How often does an institution 

receive requests or demands for SARs 

and related information from law 

enforcement, a regulator, or other 

outside party? 

General Questions for Comment: In 

addition to the questions listed above, 

FinCEN invites comment on: (a) 

Whether the proposed collection of 


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Federal Register / Vol. 87, No. 16 / Tuesday, January 25, 2022 / Proposed Rules 3727 

information is necessary for the proper 

performance of the functions of FinCEN, 

including whether the information will 

have practical utility; (b) the accuracy of 

the estimated burden associated with 

the proposed collection of information; 

(c) how the quality, utility, and clarity 

of the information to be collected may 

be enhanced; and (d) how the burden of 

complying with the proposed collection 

of information may be minimized, 

including through the application of 

automated collection techniques or 

other forms of information technology. 

List of Subjects in 31 CFR Part 1010 

Administrative practice and 

procedure, Banks, Banking, Currency, 

Foreign banking, Foreign currencies, 

Investigations, Penalties, Reporting and 

recordkeeping requirements, Terrorism. 

Authority and Issuance 

For the reasons set forth in the 

preamble, part 1010 of chapter X of title 

31 of the Code of Federal Regulations is 

proposed to be amended as follows: 

PART 1010—GENERAL PROVISIONS 

■ 1. The authority citation for part 1010 

continues to read as follows: 

Authority: 12 U.S.C. 1829b and 1951– 

1959; 31 U.S.C. 5311–5314, 5316–5336; Title 

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

sec. 2006, Pub.L 114–41. Stat. 458–459; sec. 

701, Pub. L. 114–74, 129 Stat. 599; sec. 6403, 

Pub. L. 116–283, 134 Stat. 3388. 

■ 2. Add § 1010.240 to subpart B to read 

as follows: 

§ 1010.240 Pilot program authorizing SAR 

sharing with foreign branches, subsidiaries, 

and affiliates. 

(a) Definitions. For purposes of this 

section, the following terms have the 

following meanings: 

(1) Eligible financial institution. The 

term ‘‘eligible financial institution’’ 

means a financial institution as 

described in 31 U.S.C. 5312(a)(2) that is 

obligated to report suspicious activity 

under 31 U.S.C. 5318(g), including 

without limitation: 

(i) Banks, as defined at 31 CFR 

1010.100(d); 

(ii) Casinos and card clubs, as defined 

at 31 CFR 1010.100(t)(5) and (6), 

respectively; 

(iii) Money services businesses, as 

defined at 31 CFR 1010.100(ff); 

(iv) Brokers or dealers in securities, as 

defined at 31 CFR 1010.100(h); 

(v) Mutual funds, as defined at 31 

CFR 1010.100(gg); 

(vi) Insurance companies, as defined 

at 31 CFR 1025.100(g); 

(vii) Futures commission merchants 

and introducing brokers in 

commodities, as defined at 31 CFR 

1010.100(x) and (bb), respectively; 

(viii) Loan or finance companies, as 

defined at 31 CFR 1010.100(lll); and 

(ix) Housing government sponsored 

enterprises, as defined at 31 CFR 

1010.100(mmm). 

(2) Participant financial institution. 

The term ‘‘participant financial 

institution’’ means an eligible financial 

institution that FinCEN has authorized 

to engage in the pilot program described 

in this section, in accordance with the 

requirements set forth in this section 

and any other conditions imposed by 

FinCEN. 

(3) Affiliate. The term ‘‘affiliate’’ 

means an entity that controls, is 

controlled by, or is under common 

control with another entity, including 

any branch or subsidiary. 

(4) Suspicious activity report (SAR) 

and related information. The term ‘‘SAR 

and related information’’ means a report 

filed pursuant to 31 CFR 1020.320 

(banks); 1021.320 (casinos and card 

clubs); 1022.320 (money services 

businesses); 1023.320 (brokers or 

dealers in securities); 1024.320 (mutual 

funds); 1025.320 (insurance companies); 

1026.320 (futures commission 

merchants and introducing brokers in 

commodities); 1029.320 (loan or finance 

companies); 1030.320 (housing 

government-sponsored enterprises), and 

any information that would reveal the 

existence of such a report. 

(5) Commencement date. The term 

‘‘commencement date’’ means the date 

on which a participant financial 

institution begins sharing SARs and 

related information with foreign 

affiliates pursuant to the requirements 

of the pilot program described in this 

section, in accordance with the 

requirements set forth in this section 

and any other conditions imposed by 

FinCEN. 

(b) Participation in the SAR pilot 

program. Notwithstanding any other 

provision of this chapter, and subject to 

the terms and conditions specified in 

this section or otherwise prescribed by 

FinCEN, a financial institution 

approved by FinCEN to participate in 

the SAR pilot program may share SARs 

and related information, including the 

fact that a SAR has been filed, with the 

institution’s foreign affiliates for the 

purpose of combating illicit finance 

risks. 

(c) Obligations of a participant 

financial institution—(1) Application. 

Eligible financial institutions must 

obtain approval from FinCEN to 

participate in the pilot program. To 

obtain FinCEN approval, an eligible 

financial institution shall submit a 

written application to FinCEN. FinCEN 

will notify the financial institution’s 

relevant Federal functional regulator of 

the application. FinCEN will share any 

materials submitted in connection with 

an application under this section with 

relevant Federal functional regulators, 

or, as appropriate, other relevant 

agencies. The written application must: 

(i) Identify the institution’s point of 

contact(s) for pilot program-related 

correspondence with FinCEN, and, for 

entities located abroad, appoint agents 

for service of process in the United 

States; 

(ii) Specify the foreign affiliates with 

which the financial institution intends 

to share SARs and related information, 

including the operational jurisdictions 

of such entities, as well as whether such 

entities will be providing reciprocal 

information to the applicant institution; 

(iii) Specify the particular purpose or 

purposes for which the foreign affiliates 

intend to use SARs and related 

information; 

(iv) Include an estimated 

commencement date for the institution’s 

pilot program; and 

(v) Provide a description of all 

internal controls in place to protect the 

confidentiality of and prevent 

unauthorized disclosures of SARs and 

related information and ensure data 

security and confidentiality of 

personally identifiable information. 

(2) Internal controls—(i) 

Implementation of internal controls. A 

participant financial institution must 

implement and maintain policies, 

procedures, and internal controls that 

are reasonably designed to ensure that 

its foreign affiliates do not permit 

unauthorized disclosures of SARs and 

related information shared pursuant to 

the pilot program. These controls 

should include: 

(A) Written confidentiality 

agreements or arrangements specifying 

that all personnel in foreign affiliates 

granted access to SARs and related 

information pursuant to the pilot 

program must safeguard the 

confidentiality of SARs and related 

information shared pursuant to the pilot 

program, including information 

indicating that a SAR has been filed; 

(B) Provisions for the secure 

transmission and storage of SARs and 

related information between the 

participant financial institution and its 

foreign affiliates; and 

(C) Processes and procedures for 

personnel located in the United States 

to review any request from foreign law 

enforcement, foreign regulators, or an 

outside foreign party for SARs and 

related information shared pursuant to 

the pilot program. 


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(ii) Copies of internal controls. 

FinCEN may request copies of internal 

policies and procedures, including 

confidentiality agreements, designed to 

ensure compliance with the pilot 

program. FinCEN may share these 

documents with relevant Federal 

functional regulators or other relevant 

agencies. 

(3) Approval. In determining whether 

to approve an application, FinCEN will 

consider, in its sole discretion, the 

requirements of Federal and State law 

enforcement operations; any potential 

concerns of the intelligence community; 

appropriate standards and requirements 

regarding data security and the 

confidentiality of personally identifiable 

information, including the adequacy of 

the financial institution’s internal 

controls; and, any other appropriate 

factors consistent with the purposes of 

the Bank Secrecy Act. 

(4) Additional requirements. As a 

condition of approving an application, 

FinCEN may impose additional 

requirements, including requiring a 

participant financial institution to adopt 

additional controls related to its 

participation in the pilot program. 

FinCEN may impose additional 

requirements on a participant financial 

institution at any time after the 

application is approved. 

(5) Modification. A participant 

financial institution shall not deviate in 

any material manner from the controls 

proposed in the application described in 

paragraph (1) or from any additional 

requirements imposed by FinCEN, 

except with FinCEN’s written approval. 

(6) Termination. FinCEN may 

terminate a financial institution’s 

participation in the pilot program at any 

time if, in its sole discretion, FinCEN 

determines that such termination is 

consistent with the considerations set 

forth in 31 U.S.C. 5318(g)(8)(A) or for 

other good cause. 

(7) Pre-commencement notice to 

FinCEN. After obtaining approval from 

FinCEN, a participant financial 

institution shall provide FinCEN with 

advance written confirmation of the 

commencement date of the financial 

institution’s sharing of SARs and related 

information with its foreign affiliates. 

(8) Quarterly reporting requirement. A 

participant financial institution shall 

submit reports regarding its 

participation in the pilot program to 

FinCEN every three months after the 

commencement date of its pilot 

program. FinCEN intends to share 

quarterly reports with relevant Federal 

functional regulators or other relevant 

agencies. Quarterly reports shall include 

information concerning: 

(i) Total number of SARs and related 

information shared; 

(ii) The name and jurisdiction of each 

foreign affiliate that received SARs and 

related information, its relationship 

with the participant financial 

institution, and the intended purposes 

and uses for which the SAR and related 

information were shared; 

(iii) Any legal and compliance issues 

related to the financial institution’s 

participation in the pilot program; 

(iv) Any technical difficulties and 

challenges encountered; 

(v) Any enhancements to the financial 

institution’s AML/CFT program, 

including reallocation of resources to 

higher-priority AML/CFT risks enabled 

as a result of the financial institution’s 

participation in the pilot program. 

Financial institutions may consult 

FinCEN’s AML/CFT National Priorities, 

issued pursuant to section 5318(h)(4)(A) 

of the BSA, to further describe successes 

in this area; and 

(vi) Lessons learned arising from the 

financial institution’s participation in 

the pilot program, to include any 

identified deficiencies. 

(9) Requirement for personnel located 

in the United States. A participant 

financial institution shall maintain 

appropriate personnel located in the 

United States to review requests or 

demands of a foreign affiliate for SARs 

and related information pursuant to its 

participation in the pilot program. 

(10) Receipt of information requests, 

subpoenas, and other requests for SARs 

and related information. A participant 

financial institution shall immediately 

notify FinCEN of all requests or 

demands on the participant financial 

institution or its foreign affiliates for 

SARs or related information from 

foreign law enforcement, foreign 

regulators, or any other outside foreign 

party. Participant financial institutions 

and their foreign affiliates shall direct 

the requesting authority to both contact 

FinCEN about obtaining the requested 

SARs or related information, and seek to 

obtain such records or information 

through a request to the United States 

pursuant to a mutual legal assistance 

treaty or other appropriate mechanism 

for obtaining records from the United 

States. 

(11) Unauthorized disclosures. A 

participant financial institution must 

immediately notify FinCEN upon 

learning of or discovering any 

unauthorized disclosures of SARs or 

related information shared pursuant to 

the pilot program and provide all 

information to FinCEN relating to such 

unauthorized disclosure. 

(12) SAR tracking. A participant 

financial institution shall maintain 

records sufficient to identify the specific 

foreign jurisdictions in which affiliates 

of financial institutions are located and 

that received any specific SAR or 

related information. Such records shall 

be maintained so as to enable the 

participant financial institution to 

readily report this information to 

FinCEN upon request. 

(d) Prohibition involving certain 

jurisdictions. (1) A participant financial 

institution shall not share SARs or 

related information with a foreign 

affiliate located in: 

(i) The People’s Republic of China; 

(ii) The Russian Federation; or 

(iii) A jurisdiction that: 

(A) Is a state sponsor of terrorism, as 

determined by the U.S. Department of 

State; 

(B) Is subject to financial and 

economic sanctions imposed by the 

Federal Government, i.e., jurisdictions 

with governments whose property and 

interests in property in U.S. 

jurisdictions are blocked pursuant to 

U.S. sanctions authorities and 

jurisdictions subject to broad 

prohibitions on transactions by U.S. 

persons involving that jurisdiction, such 

as prohibitions on importing or 

exporting goods, services, or technology 

to the jurisdiction or dealing in goods or 

services originating from the 

jurisdiction, pursuant to U.S. sanctions 

authorities; 

(C) Has been identified as a primary 

money laundering concern pursuant to 

Section 311 of the USA PATRIOT Act 

(Pub. L. 107–56) or section 9714 of the 

Combating Russian Money Laundering 

Act (Pub. L. 116–283); or 

(D) The Secretary has determined 

cannot reasonably protect the security 

and confidentiality of suspicious 

activity reports and related information. 

(2) The Secretary may make an 

exception on a case-by-case basis for a 

financial institution located in 

jurisdictions listed in paragraphs 

(c)(1)(i) and (ii) of this section if the 

Secretary determines that such an 

exception is in the national security 

interest of the United States and 

provides appropriate notification to 

Congress. A financial institution seeking 

an exception to share SARs or related 

information with a foreign affiliate 

located in jurisdictions listed in 

paragraphs (c)(1)(i) and (ii) of this 

section must submit a written request to 

the Director of FinCEN setting forth its 

reasons for the exception. 

(e) Treatment of foreign jurisdictionoriginated reports. Information related 

to a report received by a financial 

institution from a foreign affiliate with 

respect to a suspicious transaction 

relevant to a possible violation of law or 


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Federal Register / Vol. 87, No. 16 / Tuesday, January 25, 2022 / Proposed Rules 3729 

regulation shall be subject to the same 

confidentiality requirements as reports 

filed under 31 U.S.C. 5318(g). 

(f) Prohibition on offshoring

compliance operations. Participant 

financial institutions are prohibited 

from establishing or maintaining any 

operation located outside of the United 

States the primary purpose of which is 

to ensure compliance with the Bank 

Secrecy Act as a result of the 

information sharing granted by this pilot 

program. 

(g) Duration of the pilot program. This

pilot program shall terminate on January 

1, 2024. The Secretary may extend the 

pilot program for not more than two 

years upon appropriate notification to 

Congress pursuant to 31 U.S.C. 

5318(g)(8)(B)(iii). 

(h) Prohibition on disclosure. Except

to the extent authorized pursuant to the 

pilot program or in existing regulations 

or guidance, no participant financial 

institution, director, officer, employee, 

or agent of or for a participant financial 

institution, and no foreign affiliate of a 

participant financial institution shall 

disclose to any person any SAR or 

related information shared pursuant to 

the pilot program. 

(i) SAR disclosures by a foreign

affiliate. Civil money penalties and 

criminal sanctions may be imposed on 

any foreign affiliate under 31 U.S.C. 

5321 and 31 U.S.C. 5322 for any 

violation of the preceding paragraph (h) 

of this section, without regard to 

whether the unauthorized disclosure 

occurs in the United States. Civil money 

penalties shall be assessed and collected 

in the manner provided in 31 U.S.C. 

5321(b) and (d). 

By the Department of the Treasury. 

Himamauli Das, 

Acting Director, Financial Crimes 

Enforcement Network. 

[FR Doc. 2022–01331 Filed 1–24–22; 8:45 am] 

BILLING CODE 4810–02–P 

DEPARTMENT OF THE INTERIOR 

National Park Service 

36 CFR Part 52 

[NPS–WASO–32954; PPWOBSADC0; 

PPMVSCS1Y.Y00000] 

RIN 1024–AE47 

Visitor Experience Improvements 

Authority Contracts 

AGENCY: National Park Service, Interior. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

implement the Visitor Experience 

Improvements Authority given to the 

National Park Service by Congress in 

Title VII of the National Park Service 

Centennial Act. This authority allows 

the National Park Service to award and 

administer commercial services 

contracts and related professional 

services contracts for the operation and 

expansion of commercial visitor 

facilities and visitor services programs 

in units of the National Park System. 

DATES: Comments must be received by 

March 28, 2022. 

Information Collection Requirements: 

If you wish to comment on the 

information collection requirements in 

this proposed rule, please note that the 

Office of Management and Budget 

(OMB) is required to make a decision 

concerning the collection of information 

contained in this proposed rule between 

30 and 60 days after publication of this 

proposed rule in the Federal Register. 

Therefore, comments should be 

submitted to OMB by March 28, 2022. 

ADDRESSES: You may submit your 

comments, identified by Regulation 

Identifier Number (RIN) 1024–AE47, by 

any of the following methods: 

• Federal eRulemaking Portal:

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

instructions for submitting comments. 

• Mail to: Commercial Services

Program, National Park Service, 1849 C 

Street NW, Mail Stop 2410, Attn: VEIA 

Rule Comments, Washington, DC 20240. 

Instructions: All submissions received 

must include the words ‘‘National Park 

Service’’ or ‘‘NPS’’ and the RIN (1024– 

AE47) for this rulemaking. Comments 

received may be posted without change 

to https://www.regulations.gov, 

including any personal information 

provided. The NPS will not accept bulk 

comments in any format (hard copy or 

electronic) submitted on behalf of 

others. 

Docket: For access to the docket to 

read background documents or 

comments received, go to https://

www.regulations.gov. 

Information Collection Requirements: 

Written comments and suggestions on 

the information collection requirements 

should be submitted by the date 

specified above in DATES to 

www.reginfo.gov/public/do/PRAMain. 

Find this particular information 

collection by selecting ‘‘Currently under 

Review—Open for Public Comments’’ or 

by using the search function. Please 

provide a copy of your comments to the 

NPS Information Collection Clearance 

Officer (ADIR–ICCO), 12201 Sunrise 

Valley Drive, Reston, VA 20191 (mail); 

or phadrea_ponds@nps.gov (email). 

Please include ‘‘1024–AE47’’ in the 

subject line of your comments. 

FOR FURTHER INFORMATION CONTACT: Kurt 

Rausch, Acting Chief of Commercial 

Services Program, National Park 

Service; (202) 513–7202; kurt_rausch@

nps.gov. Questions regarding the NPS’s 

information collection request may be 

submitted to the NPS Information 

Collection Clearance Officer (ADIR– 

ICCO), 12201 Sunrise Valley Drive, 

Reston, VA 20191 (mail); or phadrea_

ponds@nps.gov (email). Please include 

‘‘1024–AE47’’ in the subject line of your 

email request. 

SUPPLEMENTARY INFORMATION: 

Background 

NPS Authorities To Contract for 

Commercial Visitor Services 

The National Park Service (NPS) 

enters into concession contracts with 

other entities to provide commercial 

visitor services in over 100 units of the 

National Park System. Examples of such 

services include lodging, food, retail, 

marinas, transportation, and recreation. 

NPS concession contracts generate 

approximately $1.6 billion per year in 

gross receipts, while returning 

approximately $133 million in franchise 

fees to the NPS. What was commonly 

known as the National Park Service 

Concession Policies Act of 1965 (1965 

Act), Public Law 89–249, provided the 

first comprehensive statutory authority 

for the NPS to issue concession 

contracts. Since the repeal of the 1965 

Act, concession contracts have been 

awarded under the Concessions 

Management Improvement Act of 1998 

(1998 Act), 54 U.S.C. 101901–101926. 

NPS regulations in 36 CFR part 51 

govern the solicitation and award of 

concession contracts issued under the 

1998 Act and the administration of 

concession contracts issued under the 

1965 and 1998 Acts. 

The National Park Service Centennial 

Act (Centennial Act), 54 U.S.C. 101931– 

101938, established the Visitor 

Experience Improvements Authority 

(VEIA) allowing the NPS to solicit, 

award, and administer commercial 

services contracts for the improvement, 

modernization, and expansion of 

commercial visitor facilities and visitor 

services programs in units of the 

National Park System. The VEIA 

supplements but does not replace the 

existing authority granted to the NPS in 

the 1998 Act to enter into concession 

contracts or any other existing NPS 

authorities to provide commercial 

visitor services in units of the National 

Park System. The VEIA is also separate 

from authorities granted under the 

Office of Federal Procurement Policy 

Act and Federal Acquisition 

Regulations. 


khammond on DSKJM1Z7X2PROD with PROPOSALS