Source: https://www.federalregister.gov/documents/2011/03/18/2011-6460/procedures-for-monitoring-bank-secrecy-act-compliance-and-fair-credit-reporting-technical-amendments
Timestamp: 2018-02-22 13:29:28
Document Index: 537897195

Matched Legal Cases: ['arts 326', 'art 334', 'art 103', 'art 1010', 'art 334', '§\u2009326', 'art 334', '§\u2009334', 'art 334']

Federal Register :: Procedures for Monitoring Bank Secrecy Act Compliance and Fair Credit Reporting: Technical Amendments
A Rule by the Federal Deposit Insurance Corporation on 03/18/2011
List of Subjects in 12 CFR Parts 326 and 334
https://www.federalregister.gov/d/2011-6460 https://www.federalregister.gov/d/2011-6460
The FDIC is adopting a final rule to update cross-references in its anti-money laundering program and Fair Credit Reporting Act rules, to conform to changes in the numbering of the Department of the Treasury's rules that implement the Bank Secrecy Act.
Division of Risk Management Supervision and Consumer Protection: Debra Novak (202) 898-6641; Legal Division: Carl Gold, Counsel, (202) 898-8702; Richard M. Schwartz, Counsel, (202) 898-7424.
As required by section 8(s) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(s), the FDIC's regulation, 12 CFR 326.8, requires every State nonmember bank to establish and maintain procedures reasonably designed to assure and monitor its compliance with the requirements of the Bank Secrecy Act (“BSA”), 31 U.S.C. 5311 et seq., and the regulations implementing that statute (“BSA regulations”). In addition, the FDIC has regulations, 12 CFR part 334, which implement the Fair Credit Reporting Act, 15 U.S.C. 1681 et seq. The Financial Crimes Enforcement Network (FinCEN), an arm of the Department of the Treasury, recently amended the BSA regulations to reorganize and move them from 31 CFR Part 103 to Chapter X of Title 31 of the CFR. 75 FR 65806 et seq. (Oct. 26, 2010). Effective March 1, 2010, the BSA regulations governing State nonmember banks (as well as other federally-insured depository institutions) are contained in 31 CFR part 1010 et seq.
To conform to this change, the FDIC is amending a general cross-reference to the BSA regulations in 12 CFR 326.8, and specific cross-references to the Customer Identification Program (“CIP”), 31 CFR 103.121, in 12 CFR 326.8, 12 CFR 334.82, and Appendix J to Part 334. The CIP regulation, which is substantively unchanged, is now found at 31 CFR 1020.220.
The Administrative Procedure Act, 5 U.S.C. 553(b) provides that a final regulation may be issued without prior notice or an opportunity for comment when the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest. The FDIC finds that good cause exists as the regulatory amendments are nonsubstantive, and therefore notice and public procedure are unnecessary. 5 U.S.C. 553(d) provides that the required publication or service of a substantive rule shall be made not less than 30 days before its effective date, with some exceptions. Since this is not a substantive rule, the rule is effective immediately upon publication in the Federal Register.
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking where a general notice of proposed rulemaking is not required. See 5 U.S.C. 603 and 604. As noted previously in the SUPPLEMENTARY INFORMATION section, the FDIC has determined, for good cause, that it is unnecessary to publish a notice of proposed rulemaking for this final rule. Accordingly, the RFA's requirements relating to an initial and final regulatory flexibility analysis do not apply.
For the reasons set out in the preamble, the FDIC hereby amends 12 CFR chapter III as follows:
2. Revise § 326.8 to read as follows:
(b) Compliance procedures— (1) Program requirement. Each bank shall develop and provide for the continued administration of a program reasonably designed to assure and monitor compliance with recordkeeping and reporting requirements set forth in subchapter II of chapter 53 of title 31, United States Code, and the implementing regulations issued by the Department of Treasury at 31 CFR Chapter X. The compliance program shall be written, approved by the bank's Start Printed Page 14794board of directors, and noted in the minutes.
3. The authority citation for part 334 continues to read:
Authority: 12 U.S.C. 1818, 1819 (Tenth) and 1831 p-1; 15 U.S.C. 1681a, 1681b, 1681c, 1681m, 1681s, 1681s-3, 1681t, 1681w, 6801 and 6805, Pub. L. 108-159, 117 Stat. 1952.
4. In § 334.82, revise paragraph (c)(2)(i)(A) to read as follows:
Duties of users regarding address descrepancies.
5. In Appendix J to Part 334, revise Section III, paragraph (a) to read as follows:
[FR Doc. 2011-6460 Filed 3-17-11; 8:45 am]