26996 Federal Register / Vol. 74, No. 107 / Friday, June 5, 2009 / Proposed Rules 

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); and 

3. 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. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this proposed AD and placed it in the 

AD docket. 

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 AD: 

PILATUS Aircraft Ltd.: Docket No. FAA– 

2009–0509; Directorate Identifier 2009– 

CE–029–AD. 

Comments Due Date 

(a) We must receive comments by July 6, 

2009. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to PC–7 airplanes, all 

manufacturer serial numbers, certificated in 

any category. 

Subject 

(d) Air Transport Association of America 

(ATA) Code 53: Fuselage. 

Reason 

(e) The mandatory continuing 

airworthiness information (MCAI) states: 

This Airworthiness Directive (AD) is 

prompted due to reported corrosion on the 

bolts and in the bores of the attachment 

fittings for the engine mounting frame. The 

corrosion is caused by damaged cadmium 

plating of the bolts or damaged surface finish 

of the attachment fitting. 

Such a condition, if left uncorrected, could 

lead to crack initiation at the bolt and the 

fitting bore and subsequently to the failure of 

the engine attachment fitting. 

In order to correct and control the 

situation, this AD requires a visual 

inspection of the relevant bolts and fittings. 

Additionally, the replacement of the bolts is 

required. 

Actions and Compliance 

(f) Unless already done, do the following 

actions: 

(1) Visually inspect the bolts and the bores 

(with boroscope) of the attachment fittings 

for the engine mounting frame following 

paragraph 3.A of PILATUS Aircraft Ltd. 

Pilatus PC–7 Service Bulletin No. 53–006, 

dated November 17, 2008, at whichever of 

the following occurs later: 

(i) Upon accumulating 5,000 hours total 

time-in-service (TIS) or 5 years from the date 

of manufacture, whichever occurs first; or 

(ii) Within the next 6 months after the 

effective date of this AD. 

(2) If no sign of corrosion is found during 

the inspection required in paragraph (f)(1) of 

this AD, before further flight, replace the 

bolts. Repetitively inspect thereafter at 

intervals not to exceed every 5 years 

following PILATUS Aircraft Ltd. Pilatus PC– 

7 Maintenance Manual Chapter 05–10–20, 

page 4, dated November 30, 2008. 

(3) If any sign of corrosion is found during 

any of the inspections required in paragraphs 

(f)(1) and (f)(2) of this AD, before further 

flight, do the corrective actions following 

paragraph 3.A. of PILATUS Aircraft Ltd. 

Pilatus PC–7 Service Bulletin No. 53–006, 

dated November 17, 2008. Repetitively 

inspect thereafter at intervals not to exceed 

every 5 years following PILATUS Aircraft 

Ltd. Pilatus PC–7 Maintenance Manual 

Chapter 05–10–20, page 4, dated November 

30, 2008. 

FAA AD Differences 

Note: This AD differs from the MCAI and/ 

or service information as follows: No 

differences. 

Other FAA AD Provisions 

(g) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, Standards Office, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. Send information to 

ATTN: Doug Rudolph, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 Locust, 

Room 301, Kansas City, Missouri 64106; 

telephone: (816) 329–4059; fax: (816) 329– 

4090. Before using any approved AMOC on 

any airplane to which the AMOC applies, 

notify your appropriate principal inspector 

(PI) in the FAA Flight Standards District 

Office (FSDO), or lacking a PI, your local 

FSDO. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.), the Office of 

Management and Budget (OMB) has 

approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

Related Information 

(h) Refer to MCAI FOCA AD HB–2009–004, 

dated May 12, 2009; PILATUS Aircraft Ltd. 

Pilatus PC–7 Service Bulletin No. 53–006, 

dated November 17, 2008; and Pilatus PC–7 

Maintenance Manual Chapter 05–10–20, page 

4, dated November 30, 2008, for related 

information. 

Issued in Kansas City, Missouri, on May 

29, 2009. 

Scott A. Horn, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E9–13139 Filed 6–4–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 103 

RIN 1506–AA93 

Financial Crimes Enforcement 

Network; Amendment to the Bank 

Secrecy Act Regulations; Defining 

Mutual Funds as Financial Institutions 

AGENCY: Financial Crimes Enforcement 

Network (‘‘FinCEN’’), Treasury. 

ACTION: Notice of proposed rulemaking 

and request for comments. 

SUMMARY: FinCEN is proposing to 

include mutual funds within the general 

definition of ‘‘financial institution’’ in 

rules implementing the Bank Secrecy 

Act (‘‘BSA’’). The proposal would 

subject mutual funds to rules under the 

BSA on the filing of Currency 

Transaction Reports (‘‘CTRs’’) and on 

the creation, retention, and transmittal 

of records or information for 

transmittals of funds. 

DATES: Written comments on all aspects 

of this notice are welcome and must be 

received on or before September 3, 

2009. 

ADDRESSES: Those submitting comments 

are encouraged to do so via the Internet. 

Comments submitted via the Internet 

may be submitted at http:// 

www.regulations.gov/search/index.jsp 

with the caption in the body of the text, 

Attention: Comment Request; Defining 

Mutual Funds as Financial Institutions. 

Comments also may be submitted by 

written mail to: Financial Crimes 

Enforcement Network, Department of 

the Treasury, P.O. Box 39, Vienna, VA 

22183, Attention: Comment Request; 

Defining Mutual Funds as Financial 

Institutions. Please submit comments by 

one method only. All comments 

submitted in response to this notice of 

proposed rulemaking will become a 


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1Language expanding the scope of the BSA was 

added by the Uniting and Strengthening America by 

Providing Appropriate Tools Required to Intercept 

and Obstruct Terrorism Act of 2001 (‘‘USA 

PATRIOT Act’’), Public Law 107–56. 

2 31 U.S.C. 5312(a)(2)(I). 

3See 15 U.S.C. 80a–3. 

4 15 U.S.C. 80a–4; 15 U.S.C. 80a–5(a)(1); 15 U.S.C. 

80a–2(a)(32). Face-amount certificate companies 

and unit investment trusts are excluded from the 

definition of ‘‘management company.’’ 15 U.S.C. 

80a–4(3). 

5Anti-Money Laundering Programs for Mutual 

Funds, 67 FR 21117 (April 29, 2002). 

6Customer Identification Programs for Mutual 

Funds, 68 FR 25131 (May 9, 2003). 

7Amendment to the Bank Secrecy Act 

Regulations—Requirement That Mutual Funds 

Report Suspicious Activity, 71 FR 26213 (May 4, 

2006). 

8Anti-Money Laundering Programs; Special Due 

Diligence Programs for Certain Foreign Accounts, 

71 FR 496 (January 4, 2006); Anti-Money 

Laundering Programs; Special Due Diligence 

Programs for Certain Foreign Accounts, 72 FR 

44768 (August 9, 2007). 

9See 31 U.S.C. 5312(a)(2). 

10See 31 CFR 103.22; 31 CFR 103.28; 31 CFR 

103.29; 31 CFR 103.33; and 31 CFR 103.38. Defining 

a business as a financial institution also could make 

the business ineligible for exemption from the 

requirement to file CTRs. See 31 CFR 

103.22(d)(5)(viii). 

11 31 CFR 103.30(a)(1)(i). In addition to coin and 

currency of the United States or of any other 

country, ‘‘currency’’ includes cashier’s checks, bank 

drafts, traveler’s checks, and money orders in face 

amounts of $10,000 or less, if the instruments are 

received in a ‘‘designated reporting transaction.’’ 31 

CFR 103.30(c)(1)(ii)(A). A ‘‘designated reporting 

transaction’’ is defined as the retail sale of a 

consumer durable, collectible, or travel or 

entertainment activity. 31 CFR 103.30(c)(2). In 

addition, a mutual fund would need to treat the 

instruments as currency if the mutual fund knows 

that a customer is using the instruments to avoid 

the reporting of a transaction on Form 8300. 31 CFR 

103.30(c)(1)(ii)(B). 

12 31 CFR 103.30(a). The rule defines ‘‘related 

transactions’’ to include transactions conducted 

between a payer or its agent and the recipient of the 

currency in a 24-hour period. 31 CFR 

103.30(c)(12)(ii). Transactions conducted during a 

period of more than 24 hours are related if the 

recipient knows or has reason to know that each 

transaction is one of a series of connected 

transactions. 31 CFR 103.30(c)(12)(ii). In addition, 

the rule includes provisions on the treatment of 

multiple deposits or installment payments relating 

to a single transaction. See 31 CFR 103.30(b). 

13 31 CFR 103.30(a)(1)(ii) (the requirement to file 

a Form 8300 does not apply to transactions reported 

under 31 CFR 103.22). 

14See 31 CFR 103.22(b)(1) and 31 CFR 103.11(h) 

(currency is defined as the coin and paper of the 

United States or of any other country that is 

designated as legal tender and that circulates and 

Continued 

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 

makes all comments publicly available 

by posting them on http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: The 

FinCEN regulatory helpline at (800) 

949–2732 and select Option 6. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Statutory Provisions 

The Bank Secrecy Act, Public Law 

91–508, codified as amended at 12 

U.S.C. 1829b, 12 U.S.C. 1951–1959, and 

31 U.S.C. 5311–5314; 5316–5332, 

authorizes the Secretary of the Treasury 

(‘‘Secretary’’) to issue regulations 

requiring financial institutions to keep 

records and file reports that are 

determined to have a high degree of 

usefulness in criminal, tax, and 

regulatory investigations or proceedings, 

or in the conduct of intelligence or 

counter-intelligence activities, including 

analysis, to protect against international 

terrorism, and to implement anti-money 

laundering programs and compliance 

procedures.1 Regulations implementing 

the BSA appear at 31 CFR Part 103. The 

authority of the Secretary to administer 

the BSA has been delegated to the 

Director of FinCEN. 

The definition of ‘‘financial 

institution’’ in the BSA includes 

investment companies.2 FinCEN has the 

authority to issue rules defining 

investment companies as financial 

institutions. The Investment Company 

Act of 1940, codified at 15 U.S.C. 80a– 

1 et seq. (the ‘‘Investment Company 

Act’’), defines ‘‘investment company’’ 3

and subjects investment companies to 

regulation by the Securities and 

Exchange Commission (‘‘SEC’’). 

B. Overview of Current Regulatory 

Provisions 

Regulations implementing the BSA 

currently apply only to investment 

companies that are ‘‘open-end 

companies,’’ as the term is defined in 

the Investment Company Act. More 

commonly known as mutual funds, 

open-end companies are the 

predominant type of investment 

company. Open-end companies are 

management companies that offer or 

have outstanding securities that are 

redeemable at net asset value.4

On April 29, 2002, FinCEN issued a 

rule under section 352 of the USA 

PATRIOT Act prescribing minimum 

standards for the development of antimoney laundering programs by mutual 

funds.5 On May 9, 2003, FinCEN issued 

jointly with the SEC a rule under 

section 326 of the USA PATRIOT Act 

requiring mutual funds to implement 

customer identification programs.6 On 

May 4, 2006, FinCEN issued a rule 

requiring mutual funds to report 

suspicious transactions.7 On August 9, 

2007, FinCEN completed the antimoney laundering rules required with 

respect to certain financial institutions, 

including mutual funds, under section 

312 of the USA PATRIOT Act.8 These 

rules require mutual funds to establish 

due diligence programs for 

correspondent and private banking 

accounts. 

Although FinCEN has issued 

individual rules that apply to mutual 

funds, FinCEN has not included mutual 

funds within the definition of ‘‘financial 

institution’’ at 31 CFR 103.11(n). The 

definition of ‘‘financial institution’’ at 

31 CFR 103.11(n) is less inclusive than 

the definition in the BSA itself.9 The 

regulatory definition determines the 

scope of rules that require the filing of 

CTRs and the creation, retention, and 

transmittal of records or information on 

transmittals of funds and other specified 

transactions.10

II. Section-by-Section Analysis 

A. Sections 103.11(n)(10) and 

103.11(ccc)—Mutual Funds Move From 

Filing Form 8300 to the Currency 

Transaction Report 

The proposed amendment would add 

mutual funds to the regulatory 

definition of ‘‘financial institution’’ at 

31 CFR 103.11(n)(10). FinCEN is also 

proposing to add a general definition of 

a ‘‘mutual fund’’ at 31 CFR 103.11(ccc). 

The definition of ‘‘mutual fund’’ would 

cover only those entities registered or 

required to register with the SEC. 

Specifically, ‘‘mutual fund’’ would be 

defined as: 

An ‘‘investment company’’ (as the term is 

defined in section 3 of the Investment 

Company Act (15 U.S.C. 80a–3)) that is an 

‘‘open-end company’’ (as that term is defined 

in section 5 of the Investment Company Act 

(15 U.S.C. 80a–5)) registered or required to 

register with the Securities and Exchange 

Commission under section 8 of the 

Investment Company Act (15 U.S.C. 80a–8). 

Mutual funds currently file reports on 

Form 8300 for the receipt of more than 

$10,000 in currency.11 The requirement 

applies to currency received in one 

transaction or two or more related 

transactions.12 The proposed 

amendment would replace this 

requirement with a requirement to file 

CTRs under 31 CFR 103.22.13 A mutual 

fund would file a CTR for a transaction 

involving a transfer of more than 

$10,000 in currency by, through, or to 

the mutual fund.14 The CTR filing 


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is customarily used as a medium of exchange in a 

foreign country). 

15See 31 CFR 103.22(c)(2). 

16 31 CFR 103.22(c)(2). The obligation to file a 

CTR is conditioned on knowledge that the 

transactions are conducted by or on behalf of the 

same person and result in either cash in or cash out 

totaling more than $10,000 during any one business 

day. 

17 In determining whether to file a Form 8300, a 

mutual fund may need to treat instruments as 

currency if the mutual fund knows that a customer 

is using the instruments to avoid the reporting of 

a transaction on Form 8300, in which case the 

mutual fund also may need to file a suspicious 

activity report (‘‘SAR’’). See 31 CFR 

103.30(c)(1)(ii)(B) and 31 CFR 103.15(a)(2). 

18A review of BSA data revealed that while 

hundreds of millions of transactions involving 

mutual funds were conducted in calendar years 

2004, 2005, 2006, and 2007, fewer than 19,500 

Form 8300s were filed by mutual funds over the 

same period. 

19Anti-Money Laundering Programs for Mutual 

Funds, 67 FR 21117, 21118 (April 29, 2002). 

20A mutual fund could report a suspicious 

transaction voluntarily by checking box 1(b) in the 

Form 8300. A mutual fund is required to file a SAR 

reporting the transaction, however, if the 

transaction exceeds the threshold set forth in the 

rule requiring mutual funds to report suspicious 

transactions. See 31 CFR 103.15(a)(2). 

21See 31 CFR 103.33(f) and (g). Financial 

institutions must retain records for a period of five 

years. 31 CFR 103.38(d). 

22Rules under the BSA define a ‘‘transmittal of 

funds’’ and the persons or institutions involved in 

a ‘‘transmittal of funds.’’ See 31 CFR 103.11(d), (e), 

(q), (r), (s), (v), (w), (cc), (dd), (jj), (kk), (ll), and 

(mm). 

23See 31 CFR 103.33(f)(1)(i) and (f)(2). 

24See 31 CFR 103.33(f)(3) (information that the 

recipient’s financial institution must obtain or 

retain). 

25See 31 CFR 103.33(g) (information that must 

‘‘travel’’ with the transmittal order); 31 CFR 

103.11(kk) (defining ‘‘transmittal order’’). 

26See 31 CFR 103.33(e)(6)(i) and 31 CFR 

103.33(f)(6)(i). 

27See 31 CFR 103.33(a)–(c). Financial institutions 

must retain these records for a period of five years. 

31 CFR 103.38(d). 

28See, e.g., 15 U.S.C. 80a–30 (mutual funds); 15 

U.S.C. 78q(a)(3) (transfer agents). 

29Mutual fund transfer agents are not subject to 

the Travel Rule or related recordkeeping 

requirements. Nevertheless, FinCEN has noted the 

role of transfer agents in performing BSA 

compliance functions. See e.g., 71 FR 26213, (May 

4, 2006) (adopting release for mutual fund SAR 

rule), 68 FR 25131, (May 9, 2003) (adopting release 

for mutual fund Customer Identification Program 

rule). Many mutual funds contractually delegate 

their BSA compliance functions, including 

recordkeeping, to transfer agents, although the 

mutual fund remains responsible under the BSA for 

ensuring compliance. 

30See 31 CFR 103.131 (mutual funds must obtain 

and record identifying information for persons 

opening new accounts, and verify the identity of 

persons opening new accounts); 31 CFR 103.15(c) 

(mutual funds must maintain records of 

documentation that supports the filing of a SAR). 

obligation covers incoming, outgoing, 

and exchange transactions in currency. 

The definition of ‘‘currency’’ for 

purposes of the CTR rule is different 

from and less inclusive than the 

definition of ‘‘currency’’ in the rule for 

Form 8300; therefore, mutual funds 

would only be required to file CTRs on 

cash transactions. The threshold in 31 

CFR 103.22 applies to transactions 

conducted during a single business 

day.15 Under the CTR rule, a financial 

institution must treat multiple 

transactions as a single transaction if the 

financial institution has knowledge that 

the transactions are conducted by or on 

behalf of the same person.16

Because mutual funds would no 

longer be required to file Form 8300s, 

mutual funds would be freed from 

having to report applicable transactions 

involving certain negotiable 

instruments.17 Although FinCEN 

recognizes that there may be some threat 

of financial criminals using negotiable 

instruments such as money orders to 

move illicit funds into mutual funds, 

the volume of Form 8300s filed is 

relatively low when compared to the 

overall volume of transactions.18

Because mutual funds rarely receive 

from or disburse to shareholders 

significant amounts of currency, 

FinCEN believes they are not as likely 

as depository institutions to be used 

during the initial ‘‘placement’’ stage of 

the money laundering process.19

FinCEN requests comment on 

whether mutual funds are less likely to 

be used during the initial placement 

stage of money laundering than a 

depository institution and therefore 

present a lower risk for money 

laundering. Furthermore, since mutual 

funds are subject to SAR reporting 

requirements, the ability to report 

suspicious transactions on Form 8300 is 

redundant.20 FinCEN requests comment 

on whether the filing of CTRs as 

opposed to Form 8300s is more 

appropriate when considering the antimoney laundering program requirement 

and the information technology changes 

that mutual funds may be required to 

make. 

B. Section 103.33—The Travel Rule and 

Related Recordkeeping Requirements 

In addition, the proposed amendment 

would subject mutual funds to 

requirements regarding the creation and 

retention of records for transmittals of 

funds, and the requirement to transmit 

information on these transactions to 

other financial institutions in the 

payment chain.21 These requirements 

are often referred to as the ‘‘Travel 

Rule.’’ 

The Travel Rule applies to 

transmittals of funds in amounts that 

equal or exceed $3,000. A ‘‘transmittal 

of funds’’ includes funds transfers 

processed by banks, as well as similar 

payments where one or more of the 

financial institutions processing the 

payment—the transmittor’s financial 

institution, an intermediary financial 

institution, or the recipient’s financial 

institution—is not a bank.22 Such 

payments processed by mutual funds 

would be ‘‘transmittals of funds.’’ If the 

mutual fund is processing a payment 

sent by or to its customer, then the 

mutual fund would be either the 

‘‘transmittor’s financial institution’’ or 

the ‘‘recipient’s financial institution.’’ 

The Travel Rule requires the 

transmittor’s financial institution to 

obtain and retain name, address, and 

other information on the transmittor and 

the transaction.23 The Travel Rule also 

requires the recipient’s financial 

institution—and in certain instances, 

the transmittor’s financial institution— 

to obtain or retain identifying 

information on the recipient.24 The 

Travel Rule requires that certain 

information obtained or retained by the 

transmittor’s financial institution 

‘‘travel’’ with the transmittal order 

through the payment chain.25

The proposed amendment would 

include mutual funds within an existing 

exception designed to exclude from 

coverage of these requirements funds 

transfers or transmittal of funds in 

which certain categories of financial 

institution are the transmitter, 

originator, recipient, or beneficiary.26

The proposed inclusion of mutual funds 

within the exceptions is intended to 

provide mutual funds with treatment 

similar to that of banks, brokers or 

dealers in securities, futures 

commission merchants, and introducing 

brokers in commodities. Finally, the 

proposed amendment would subject 

mutual funds to requirements on the 

creation and retention of records for 

extensions of credit and cross-border 

transfers of currency, monetary 

instruments, checks, investment 

securities, and credit.27 These 

requirements apply to transactions in 

amounts exceeding $10,000. 

Mutual funds are already subject to 

the record retention requirements of the 

rules promulgated under the Investment 

Company Act of 1940 and mutual fund 

transfer agents are subject to 

recordkeeping requirements under the 

Securities Exchange Act of 1934.28

FinCEN believes that the requirements 

of 31 CFR 103.33 and 31 CFR 103.38 

would have a de minimus impact on 

mutual funds and their transfer agents.29

Furthermore, rules under the BSA on 

the establishment of customer 

identification programs by mutual funds 

and on the reporting by mutual funds of 

suspicious transactions impose 

requirements to create and retain 

records.30


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31Transfer and Reorganization of Bank Secrecy 

Act Regulations, 73 FR 66414 (November 7, 2008). 

32See Investment Company Institute (ICI) 2008 

Investment Company Fact Book, at 110 (2008), 

available at: http://www.icifactbook.org/pdf/ 

2008_factbook.pdf (number of mutual funds in the 

U.S. in 2007). 

33The single hour is based on an estimate of 45 

minutes to complete the CTR form and 15 minutes 

for recordkeeping and archiving. 

34While it is not industry practice for mutual 

funds to accept cash, there is no restriction on 

mutual funds that prohibits mutual funds from 

accepting cash. Therefore, for purposes of 

estimating the annual burden the filing of CTRs will 

have on mutual funds, FinCEN estimates that each 

mutual fund will file one CTR per year. 

IV. Request for Comment 

All comments submitted in response 

to this notice will become a matter of 

public record. FinCEN welcomes 

written comment on all aspects of this 

notice, and FinCEN especially 

encourages comments on the following 

issues: 

• The anticipated time and monetary 

savings that could result from replacing 

the requirement to file reports on Form 

8300 with a requirement to file CTRs. 

• The nature, volume, content, and 

value of any potentially lost information 

to law enforcement, tax, regulatory, and 

counter-terrorism investigations or 

activities that could result from the 

filing of CTRs, rather than Form 8300s, 

by mutual funds. 

• The anticipated impact of 

subjecting mutual funds to rules under 

the BSA that require the creation, 

retention, and transmittal of records or 

information for transmittals of funds 

and other specified transactions. 

V. Proposed Location in Chapter X 

As per its November 7, 2008 notice of 

proposed rulemaking pertaining to a 

restructuring of its regulations in a new 

chapter in the Code of Federal 

Regulations,31 FinCEN is separately 

proposing to remove Part 103 of Chapter 

I of Title 31, Code of Federal 

Regulations, and add Parts 1000 to 1099 

(Chapter X). As such and if finalized, 

the proposed changes herein would be 

reorganized according to the changes 

proposed in that rulemaking. The 

planned reorganization would have no 

substantive effect on the proposed 

regulatory changes herein. The 

proposed regulatory changes herein 

would be renumbered according to the 

structure established via the finalization 

of the Chapter X rule. 

VI. Regulatory Flexibility Analysis 

Pursuant to the Regulatory Flexibility 

Act (‘‘RFA’’) (5 U.S.C. 601 et seq.), 

FinCEN certifies that the proposed rule 

in this notice would not have a 

significant economic impact on a 

substantial number of small entities. 

The economic impact of the proposed 

rule on small entities should not be 

significant. Mutual funds, regardless of 

their size, are already required to 

comply with most of the existing BSA 

rules required of financial institutions. 

While all mutual funds are captured 

under this rulemaking, the estimated 

burden associated with defining mutual 

funds as financial institutions is 

minimal. FinCEN believes that mutual 

funds rarely receive from or disburse to 

shareholders significant amounts of 

currency. New recordkeeping 

obligations, if not already being 

performed by mutual funds in 

accordance with other law or as a matter 

of prudent business practice, are likely 

to be commensurate with the size of the 

fund. FinCEN seeks comment on 

whether the proposed rule would have 

a significant economic impact on a 

substantial number of small entities. 

VII. Executive Order 12866 

It has been determined that the 

proposed rule is not a ‘‘significant 

regulatory action’’ for purposes of 

Executive Order 12866. Accordingly, a 

regulatory impact analysis is not 

required. 

VIII. Paperwork Reduction Act 

The collection of information 

contained in the proposed rule is being 

submitted to the Office of Management 

and Budget for review in accordance 

with the Paperwork Reduction Act of 

1995 (44 U.S.C. 3507(d)). Comments on 

the collection of information should be 

sent to the Desk Officer for the 

Department of the Treasury, Office of 

Information and Regulatory Affairs, 

Office of Management and Budget, 

Paperwork Reduction Project (1506), 

Washington, DC 20503 (or by e-mail to 

oira_submission@omb.eop.gov), with a 

copy to FinCEN by mail or by Internet 

submission at the addresses previously 

specified. In accordance with the 

requirements of the Paperwork 

Reduction Act of 1995, 44 U.S.C. 

3506(c)(2)(A), and its implementing 

regulations, 5 CFR part 1320, the 

following information concerning the 

collection of information as required by 

31 CFR 103.22 and 31 CFR 103.33 is 

presented to assist those persons 

wishing to comment on the information 

collection. The collection of information 

in the proposed rule is in 31 CFR 103.22 

and 31 CFR 103.33. 

Description of Affected Financial 

Institutions: Mutual funds as defined in 

31 CFR 103.11(ccc). 

Estimated Number of Affected 

Financial Institutions: 8,029.32

Estimated Average Annual Burden 

Hours per Affected Financial 

Institution: The estimated average 

burden associated with the collection of 

information in this notice is one hour 

recordkeeping per response per affected 

financial institution.33

Estimated Total Annual Burden: 

8,029 hours.34

FinCEN specifically invites comment 

on: (a) Whether the proposed collection 

of information is necessary for the 

proper performance of the mission of 

FinCEN, including whether the 

information will have practical utility; 

(b) the accuracy of FinCEN’s estimate of 

the burden of the proposed collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information required to be maintained; 

(d) ways to minimize the burden of the 

required collection of information, 

including through the use of automated 

collection techniques or other forms of 

information technology; and (e) 

estimates of capital or start-up costs and 

costs of operation, maintenance, and 

purchase of services to maintain the 

information. 

Under the Paperwork Reduction Act, 

an agency may not conduct or sponsor, 

and a person is not required to respond 

to, a collection of information unless it 

displays a valid OMB control number. 

List of Subjects in 31 CFR Part 103 

Administrative practice and 

procedure, Banks and banking, Brokers, 

Currency, Investigations, Penalties, 

Reporting and recordkeeping 

requirements, Securities, Terrorism. 

Amendment 

For the reasons set forth above in the 

preamble, 31 CFR part 103 is proposed 

to be amended as follows: 

PART 103—FINANCIAL 

RECORDKEEPING AND REPORTING 

OF CURRENCY AND FOREIGN 

TRANSACTIONS 

1. The authority citation for part 103 

continues to read as follows: 

Authority: 12 U.S.C. 1829b and 1951–1959; 

31 U.S.C. 5311–5314 and 5316–5332; title III, 

secs. 311, 312, 313, 314, 319, 326, 352, Public 

Law 107–56, 115 Stat. 307. 

Subpart A—Definitions 

2. Amend § 103.11 by revising 

paragraph (n)(9) and by adding 

paragraphs (n)(10) and (ccc) to read as 

follows: 


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27000 Federal Register / Vol. 74, No. 107 / Friday, June 5, 2009 / Proposed Rules 

§ 103.11 Meaning of terms. 

* * * * * 

(n) * * * 

(9) An introducing broker in 

commodities; 

(10) A mutual fund. 

* * * * * 

(ccc) Mutual fund means an 

‘‘investment company’’ (as the term is 

defined in section 3 of the Investment 

Company Act (15 U.S.C. 80a–3)) that is 

an ‘‘open-end company’’ (as that term is 

defined in section 5 of the Investment 

Company Act (15 U.S.C. 80a–5)) 

registered or required to register with 

the Securities and Exchange 

Commission under section 8 of the 

Investment Company Act (15 U.S.C. 

80a–8). 

Subpart C—Records Required To Be 

Maintained 

3. Amend § 103.33 by revising 

paragraphs (e)(6)(i)(I) and (f)(6)(i)(I) and 

by adding paragraphs (e)(6)(i)(J) and 

(f)(6)(i)(J) to read as follows: 

§ 103.33 Records to be made and retained 

by financial institutions. 

* * * * * 

(e) * * * 

(6) * * * 

(i) * * * 

(I) A Federal, State or local 

government agency or instrumentality; 

or 

(J) A mutual fund; and 

* * * * * 

(f) * * * 

(6) * * * 

(i) * * * 

(I) A Federal, State or local 

government agency or instrumentality; 

or 

(J) A mutual fund; and 

* * * * * 

Dated: June 1, 2009. 

William F. Baity, 

Acting Director, Financial Crimes 

Enforcement Network. 

[FR Doc. E9–13136 Filed 6–4–09; 8:45 am] 

BILLING CODE 4810–02–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 110 

[Docket No. USCG–2008–0852] 

RIN 1625–AA01 

Disestablishing Special Anchorage 

Area 2; Ashley River, Charleston, SC 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

disestablish the Ashley River Anchorage 

2 in Charleston, South Carolina. The 

removal of the anchorage would 

accommodate an expansion to the 

Ripley Light Yacht Club. 

DATES: Comments and related material 

must be received by the Coast Guard on 

or before August 4, 2009. Requests for 

public meetings must be received by the 

Coast Guard on or before July 6, 2009. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2008–0852 using any one of the 

following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Fax: 202–493–2251. 

(3) Mail: Docket Management Facility 

(M–30), U.S. Department of 

Transportation, West Building Ground 

Floor, Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590– 

0001. 

(4) Hand delivery: Same as mail 

address above, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. The telephone number 

is 202–366–9329. 

To avoid duplication, please use only 

one of these four methods. See the 

‘‘Public Participation and Request for 

Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section 

below for instructions on submitting 

comments. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this proposed 

rule, call or e-mail Lieutenant Julie 

Miller, Sector Charleston Office of 

Waterways Management, at (843) 720– 

3273 or Julie.E.Miller@uscg.mil. If you 

have questions on viewing or submitting 

material to the docket, call Renee V. 

Wright, Program Manager, Docket 

Operations, telephone 202–366–9826. 

SUPPLEMENTARY INFORMATION: 

Public Participation and Request for 

Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments and related materials. All 

comments received will be posted 

without change to http:// 

www.regulations.gov and will include 

any personal information you have 

provided. 

Submitting Comments 

If you submit a comment, please 

include the docket number for this 

rulemaking (USCG–2008–0852), 

indicate the specific section of this 

document to which each comment 

applies, and provide a reason for each 

suggestion or recommendation. You 

may submit your comments and 

material online (via http:// 

www.regulations.gov) or by fax, mail or 

hand delivery, but please use only one 

of these means. If you submit a 

comment online via http:// 

www.regulations.gov, it will be 

considered received by the Coast Guard 

when you successfully transmit the 

comment. If you fax, hand deliver, or 

mail your comment, it will be 

considered received by the Coast Guard 

when it is received at the Docket 

Management Facility. We recommend 

that you include your name and a 

mailing address, an e-mail address, or a 

telephone number in the body of your 

document so that we can contact you if 

we have questions regarding your 

submission. 

To submit your comment online, go to 

http://www.regulations.gov, select the 

Advanced Docket Search option on the 

right side of the screen, insert ‘‘USCG– 

2008–0852’’ in the Docket ID box, press 

Enter, and then click on the balloon 

shape in the Actions column. If you 

submit your comments by mail or hand 

delivery, submit them in an unbound 

format, no larger than 81⁄2 by 11 inches, 

suitable for copying and electronic 

filing. If you submit comments by mail 

and would like to know that they 

reached the Facility, please enclose a 

stamped, self-addressed postcard or 

envelope. We will consider all 

comments and material received during 

the comment period and may change 

the rule based on your comments. 

Viewing Comments and Documents 

To view comments, as well as 

documents mentioned in this preamble 

as being available in the docket, go to 

http://www.regulations.gov, select the 

Advanced Docket Search option on the 

right side of the screen, insert USCG– 

2008–0852 in the Docket ID box, press 

Enter, and then click on the item in the 

Docket ID column. You may also visit 

the Docket Management Facility in 

Room W12–140 on the ground floor of 

the Department of Transportation West 

Building, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. We have an 

agreement with the Department of 

Transportation to use the Docket 

Management Facility. 

Privacy Act 

Anyone can search the electronic 

form of comments received into any of 

our dockets by the name of the 

individual submitting the comment (or 

signing the comment, if submitted on 

behalf of an association, business, labor 


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