Source: https://www.fincen.gov/answers-frequently-asked-questions-about-31-cfr-chapter-x
Timestamp: 2018-02-17 19:10:00
Document Index: 320833736

Matched Legal Cases: ['art 1010', 'art 103', 'art 103', 'art 103', 'art 103', 'art 103', 'art 103', 'art 103', 'art 103', 'art 103', 'art 103', 'art 103', 'art 103']

Answers to Frequently Asked Questions About 31 CFR Chapter X | FinCEN.gov
PDF Download : ChapterXFAQ.pdf
Answer 1: On November 7, 2008, FinCEN published a proposal to transfer and reorganize its regulations as part of an ongoing effort to increase the efficiency and effectiveness of its regulatory oversight.1 Consistent with the practice of other regulatory agencies, FinCEN's rules have been reorganized and renumbered into a new tenth chapter of Title 31 which appears as "Title 31 Chapter X - Financial Crimes Enforcement Network. Moving the regulations to a new chapter within Title 31 provides FinCEN with the opportunity to restructure its regulations so that they can readily be identified as being specific to a particular regulated industry or as being generally applicable to all regulated industries or covered persons. Making the regulatory obligations clearer in their structure and more readily accessible to regulated institutions facilitates compliance and thereby advances the purposes of the Bank Secrecy Act (BSA) to protect the financial system from criminal abuse. Additionally, the transfer of FinCEN's regulations allows for better integration with the government-wide eRulemaking program.
Question 2: Does this transfer to 31 CFR Chapter X alter any existing regulatory requirements?
Answer 4: As discussed in the Chapter X NPRM, FinCEN is restructuring its regulations to make them more accessible for covered individuals and financial institutions. Chapter X is comprised of a General Provisions Part and separate financial institution specific Parts for those financial institutions subject to FinCEN regulations. The General Provisions Part (Part 1010) contains regulatory requirements that apply to more than one type of financial institution, and in some cases, individuals. The financial institution specific Parts contain regulatory requirements specific to a particular type of financial institution. Each Part, whether general or specific, contains similarly titled and ordered Subparts. For consistency across all Parts and to facilitate ease of reference, FinCEN has renumbered its regulations so that the same numbering format is used for the regulations in each Subpart. To illustrate this restructuring, FinCEN has published a subpart index on its website a thttps://www.fincen.gov/statutes_regs/chapter x/.
Answer 5: Effective March 1, 2011, the appropriate citation for FinCEN's regulations will be to 31 CFR Chapter X. Until that time, the appropriate citation will be to 31 CFR Part 103. It is very important to note, however, that 31 CFR Chapter X legally incorporates the substantive regulatory provisions of 31 CFR Part 103. The underlying regulatory obligations do not change and remain in effect, regardless of whether the particular regulatory citation to that provision is to 31 CFR Part 103 or 31 CFR Chapter X.
As a means of clarifying the consistency of the underlying regulatory requirements, FinCEN recommends the use of the following citation approach:
FinCEN recognizes that it may take some time to become familiar with the new numbering system and has been working with federal and state regulators, examiners, and law enforcement officials as well as the financial institutions subject to its regulations to assist in their transition. To that end, FinCEN has published a cross-reference guide that lists the citation changes to 31 CFR Chapter X for each existing regulatory provision under 31 CFR Part 103. This guide is also found in the Chapter X Final Rule. An annotated version of this cross-reference guide will soon be made available. FinCEN also has provided an automated citation translator that converts a regulatory citation from 31 CFR Part 103 to its 31 CFR Chapter X regulatory citation and vice versa. These and other helpful tools and information related to Chapter X are available on FinCEN's website at https://www.fincen.gov/statutes_regs/chapter x/. If your organization requires additional assistance or guidance regarding the transfer of FinCEN's regulations to 31 CFR Chapter X, please contact FinCEN's Regulatory Helpline at (800) 949-2732 ext 6.
Question 8: Will FinCEN be updating previously published materials with 31 CFR Chapter X citations? Should our organization do the same?
Answer 8: FinCEN will not be updating the citations in previously published materials. Such a change is unnecessary as the citations properly refer to the regulations as structured at the time of the materials' publication. FinCEN will follow the citation structure highlighted above in the answer to FAQ #5. FinCEN recommends that organizations not update the citations in previously published materials for similar reasons, but that they move as quickly as practical to update documents, training programs, and other materials or systems with the appropriate 31 CFR Chapter X citations. FinCEN will work with organizations requiring further guidance and assistance.
Answer 9: As part of the transfer of the BSA regulations from 31 CFR Part 103 to 31 CFR Chapter X, FinCEN has determined that the appendices currently found in 31 CFR Part 103 will not need to be included in 31 CFR Chapter X. Instead, the material contained in those appendices that is still required by the regulations will be made available on FinCEN's website as of March 1, 2011, at https://www.fincen.gov/statutes_regs/chapter x/.
Appendix A and Appendix B to Subpart I of 31 CFR Part 103: FinCEN is also removing Appendix A to Subpart I of 31 CFR Part 103 and Appendix B to Subpart I of 31 CFR Part 103. The forms contained in these Appendices will be provided to the public via FinCEN's website in a manner that will be more easily accessible and usable than being printed in the CFR.
The disposition of these appendices and a list of other changes and non-substantive technical corrections to the BSA implementing regulations are published on FinCEN's website at https://www.fincen.gov/statutes_regs/chapter x/.
Question 10: Does this transfer to 31 CFR Chapter X alter the legal effect of FinCEN's interim final rule for dealers of precious metals, stones, or jewels, or otherwise alter the existing regulatory requirements for dealers?
Answer 10: No. The transfer and reorganization of the BSA regulations from 31 CFR Part 103 to 31 CFR Chapter X has not altered the legal effect of any regulatory obligation nor has it imposed any new regulatory obligations on financial institutions. This includes the legal effect of FinCEN's interim final rule for dealers of precious metals, stones, or jewels, as further clarified by FinCEN Ruling 2006-001. Specifically, FinCEN has not resolved the question of the interim final rule of whether silver should be defined as a precious metal nor required any business that would be defined as a "dealer" under the interim final rule solely because of its purchases and sales of silver to establish an anti-money laundering program.
1 See 73 FR 66414 (November 7, 2008) (Transfer and Reorganization of Bank Secrecy Act Regulations), hereafter referred to as the Chapter X NPRM.
2 See 74 FR 59096 (November 17, 2009) (Final Rule for amending the Bank Secrecy Act Regulations Administrative Ruling System).
4 See https://www.fincen.gov/section-314b.
5 See https://www.fincen.gov/resources/statutes-regulations/guidance.
6 Appendix A to Subpart I of 31 CFR Part 103 (proposed as Appendix B to Chapter X) is the Certification Regarding Correspondent Accounts.