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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Proposed Rules
language of these standards is
confusing.
C. Update Standards and Eliminate
Inconsistencies or Duplication Between
Standards
1. Examples from prior SIP
rulemakings. The SIP–II rulemaking
updated and harmonized a number of
OSHA’s early substance-specific
standards (e.g., Vinyl Chloride,
Acrylonitrile, Coke Oven Emissions,
Inorganic Arsenic, and DBCP) by
revising the exposure-monitoring,
medical-surveillance, and complianceplan-update provisions of these early
standards consistent with recently
promulgated OSHA substance-specific
standards. In the SIP–III rulemaking,
OSHA revised inconsistent provisions
of the Respiratory Protection standard to
clarify which appendices contain
mandatory provisions.
2. Example of existing standards
currently under review for possible
inclusion in the SIP–IV rulemaking.
OSHA is considering revising the
construction Signals, Signs, and
Barricades standards (29 CFR part 1926,
subpart G), notably §§ 1926.201 and
1926.202, to reference the most current
version of the Manual on Uniform
Traffic Control Devices (MUTCD–2009)
from the Department of Transportation’s
Federal Highway Administration. The
current standard references the 1988
and 2000 versions of the MUTCD,
which are no longer used in many
jurisdictions.
D. Miscellaneous Revisions 5

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1. Examples from prior SIP
rulemakings. SIP–III removed the word
‘‘hot’’ modifying ‘‘air hand dryers’’ in its
Bloodborne Pathogens standard to allow
the use of new high-velocity-air handdrying machines. OSHA acknowledged
in the SIP–III rulemaking that the new
hand-drying technology was as effective
as the requirements in the existing
standard, but the existing standard
limited hand drying to a decades-old
technology that delivered only hot air.
2. Examples of existing standards
currently under review for possible
inclusion in the SIP–IV rulemaking.
With regard to the Underground
Construction, Caissons, Cofferdams and
Compressed Air standards (29 CFR part
1926, subpart S), OSHA is considering
updating the decompression tables in
5 These revisions include eliminating obsolete,
unclear, or inconsistent standards; permitting the
use of new technologies or new and effective
employee-protection measures that provide
equivalent or superior performance to existing
OSHA standards; and correcting grammatical or
typographical errors.

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Appendix A.6 This action would permit
employers to use decompression
procedures that take advantage of new
hyperbaric technologies used widely by
private-sector and public-sector
employers in the U.S. engaged in
extreme hyperbaric exposures.
Currently, to use updated
decompression procedures, employers
engaged in tunneling projects, for
example, must apply for a variance from
the decompression tables currently
specified by Appendix A. However, the
variance process is not an efficient
means of addressing health and safety
issues that may affect multiple
employers.
Another possible miscellaneous
revision would involve revising the
definitions of ‘‘stable rock’’ in
§ 1926.650(b) and ‘‘layered system’’ in
paragraph (b) of Appendix A of OSHA’s
Excavation standard by clarifying the
meaning of those terms so that
employers will classify soil correctly at
excavation sites. Incorrect
classifications of soil types can
endanger employees because, based on
faulty soil classification, employers may
use inappropriate safeguards to prevent
cave-ins.
E. Submitting Recommendations
When submitting a recommended
revision to an existing OSHA standard
in response to this RFI, OSHA requests
that members of the public explain their
rationale and provide, if possible, data
and information to support their
comments. Specifically, OSHA is
requesting commenters to provide: (1)
The reasons why they believe a
candidate standard is confusing or
outdated, or duplicates, or is
inconsistent with, other OSHA
standards or the standards issued by
other agencies, and mention specifically
what the other standard is, and (2) the
action, including revised language when
appropriate, that they believe will
improve the standard.
III. Authority and Signature
David Michaels, Ph.D., MPH,
Assistant Secretary of Labor for
Occupational Safety and Health, U.S.
Department of Labor, authorized the
preparation of this notice pursuant to
Sections 4, 6, and 8 of the Occupational
Safety and Health Act of 1970 (29 U.S.C.
653, 655, 657), 29 CFR part 1911, and
Secretary’s Order 1–2012 (77 FR 3912).
6 Updated decompression procedures typically
use oxygen-enriched breathing mixtures during
decompression, as well as decompression schedules
that differ substantially from the schedules
specified by the existing Appendix A tables.

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Signed at Washington, DC, on November
29, 2012.
David Michaels,
Assistant Secretary of Labor for Occupational
Safety and Health.
[FR Doc. 2012–29514 Filed 12–5–12; 8:45 am]
BILLING CODE 4510–26–P

DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
31 CFR Part 1010
RIN 1506–AB20

Notice of Proposed Rulemaking:
Definitions of Transmittal of Funds and
Funds Transfer
Financial Crimes Enforcement
Network (‘‘FinCEN’’), Treasury; Board of
Governors of the Federal Reserve
System.
ACTION: Notice of proposed rulemaking;
request for public comment.
AGENCY:

The Financial Crimes
Enforcement Network (FinCEN), a
bureau of the Department of the
Treasury, and the Board of Governors of
the Federal Reserve System (Board) are
proposing amendments to the regulatory
definitions of ‘‘funds transfer’’ and
‘‘transmittal of funds’’ under the
regulations implementing the Bank
Secrecy Act. The proposed changes are
intended to maintain the current scope
of the definitions and are necessary in
light of changes to the Electronic Fund
Transfer Act that will result in certain
currently covered transactions being
excluded from Bank Secrecy Act
requirements.
DATES: Written comments on this NPRM
must be submitted on or before January
25, 2013.
ADDRESSES: Comments should be
directed to:
FinCEN: You may submit comments,
identified by Regulatory Identification
Number (RIN) 1506–AB20, by any of the
following methods:
• Federal E-rulemaking Portal:
http://www.regulations.gov. Follow the
instructions for submitting comments.
Include RIN 1506–AB20 in the
submission.
• Mail: FinCEN, P.O. Box 39, Vienna,
VA 22183. Include RIN 1506–AB20 in
the body of the text. Please submit
comments by one method only.
Comments submitted in response to this
NPRM will become a matter of public
record. Therefore, you should submit
only information that you wish to make
publicly available.
Inspection of comments: Public
comments received electronically or
SUMMARY:

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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Proposed Rules

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through the U. S. Postal Service sent in
response to a notice and request for
comment will be made available for
public review as soon as possible on
www.regulations.gov. Comments
received may be physically inspected in
the FinCEN reading room located in
Vienna, Virginia. Reading room
appointments are available weekdays
(excluding holidays) between 10 a.m.
and 3 p.m., by calling the Disclosure
Officer at (703) 905–5034 (not a toll-free
call).
Board: Please submit your comments,
identified by Docket No. OP–1445 by
one method only, using any of the
following methods:
• Agency Web Site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Email:
regs.comments@federalreserve.gov.
Include the docket number in the
subject line of the message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Address to Robert deV.
Frierson, Secretary, Board of Governors
of the Federal Reserve System, 20th
Street and Constitution Avenue NW.,
Washington, DC 20551.
All public comments will be made
available on the Board’s Web site at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm as
submitted, unless modified for technical
reasons. Accordingly, comments will
not be edited to remove any identifying
or contact information. Public
comments may also be viewed
electronically or in paper in Room MP–
500 of the Board’s Martin Building (20th
and C Streets NW.) between 9 a.m. and
5 p.m. on weekdays.
FOR FURTHER INFORMATION CONTACT:
FinCEN: The FinCEN regulatory
helpline at (800) 949–2732 and select
Option 6.
Board: Koko Ives, Senior Supervisory
Financial Analyst, (202) 973–6163,
Division of Banking Supervision and
Regulation, or Dena L. Milligan, Senior
Attorney, (202) 452–3900, Legal
Division. For the hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (202) 263–4869.
SUPPLEMENTARY INFORMATION:
I. Statutory Provisions
The Currency and Foreign
Transactions Reporting Act of 1970, as
amended by the USA PATRIOT Act of
2001 and other legislation, which

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legislative framework is commonly
referred to as the Bank Secrecy Act
(‘‘BSA’’),1 authorizes the Secretary of
the Treasury (‘‘Secretary’’) to require
financial institutions to keep records
and file reports that ‘‘have a high degree
of usefulness in criminal, tax, or
regulatory proceedings, or in the
conduct of intelligence or
counterintelligence activities, including
analysis, to protect against international
terrorism.’’ 2 The Secretary has
delegated to the Director of FinCEN, the
authority to implement, administer and
enforce compliance with the BSA and
associated regulations.3
The BSA was amended by the
Annunzio-Wylie Anti-Money
Laundering Act of 1992 (Pub. L. 102–
550) (‘‘Annunzio-Wylie’’). AnnunzioWylie authorizes the Secretary and
Board of Governors of the Federal
Reserve System (the ‘‘Board’’) to issue
joint regulations requiring insured
banks to maintain records of domestic
funds transfers.4 In addition, AnnunzioWylie authorizes the Secretary and the
Board to issue joint regulations
requiring insured banks and certain
nonbank financial institutions to
maintain records of international funds
transfers and transmittals of funds.5
Annunzio-Wylie requires the Secretary
and the Board, in issuing regulations for
international funds transfers and
transmittals of funds, to consider the
usefulness of the records in criminal,
tax, or regulatory investigations or
proceedings, and the effect of the
regulations on the cost and efficiency of
the payments system.6
The Electronic Fund Transfer Act
(‘‘EFTA’’) 7 was enacted in 1978 to
establish the rights and liabilities of
consumers as well as the
responsibilities of all participants in
electronic fund transfer activities. The
EFTA is implemented by Regulation E,
which sets up the framework that
establishes the rights, liabilities, and
responsibilities of participants in
electronic fund transfer systems.8
Section 1073 of the Dodd-Frank Wall
Street Reform and Consumer Protection
1 The BSA is codified at 12 U.S.C. 1829b and
1951–1959, 18 U.S.C. 1956, 1957, and 1960, and 31
U.S.C. 5311–5314 and 5316–5332 and notes thereto,
with implementing regulations at 31 CFR Chapter
X. See 31 CFR 1010.100(e).
2 31 U.S.C. 5311.
3 Treasury Order 180–01 (Sept. 26, 2002).
4 12 U.S.C. 1829b(b)(2) (2006). Treasury has
independent authority to issue regulations requiring
nonbank financial institutions to maintain records
of domestic transmittals of funds.
5 12 U.S.C. 1829b(b)(3) (2006).
6 Id.
7 15 U.S.C. 1693 et seq.
8 12 CFR part 1005.

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Act (Dodd-Frank Act),9 added a new
section 919 to the EFTA, creating a
comprehensive new system of consumer
protections for remittance transfers sent
by consumers in the United States to
individuals and businesses in foreign
countries. Because the new section 919
of the EFTA defines ‘‘remittance
transfers’’ broadly, most electronic
transfers of funds sent by consumers in
the United States to recipients in other
countries will be subject to the new
protections.
II. Background Information
A. Current Regulations Regarding Funds
Transfers and Transmittals of Funds
On January 3, 1995, FinCEN and the
Board jointly issued a rule that requires
banks and nonbank financial
institutions to collect and retain
information on certain funds transfers
and transmittals of funds
(‘‘recordkeeping rule’’).10 At the same
time, FinCEN issued the ‘‘travel rule,’’
which requires banks and nonbank
financial institutions to include certain
information on funds transfers and
transmittals of funds sent to other banks
or nonbank financial institutions.11
The recordkeeping and travel rules
provide uniform recordkeeping and
transmittal requirements for financial
institutions and are intended to help
law enforcement and regulatory
authorities detect, investigate, and
prosecute money laundering and other
financial crimes by preserving an
information trail about persons sending
and receiving funds through the funds
transfer system.
In general, the recordkeeping rule
requires financial institutions to retain
information on transmittals of funds of
$3,000 or more and requires banks to
retain information on funds transfers of
$3,000. Under the recordkeeping rule, a
financial institution must retain the
following information for transmittals of
funds of $3,000 or more:
• If acting as a transmittor’s financial
institution, either the original,
microfilmed, copied, or electronic
record of the information received, or
the following information: (a) The name
and address of the transmittor; (b) the
amount of the transmittal order; (c) the
9 Public Law 111–203, 124 Stat. 1376, section
1073 (2010).
10 31 CFR 1020.410(a)) (recordkeeping
requirements for banks); 31 CFR 1010.410(e)
(recordkeeping requirements for nonbank financial
institutions). The Board revised its Regulation S (12
CFR part 219) to incorporate by reference the
recordkeeping rule codified in Title 31 of the CFR,
as well as to impose a 5-year record-retention
requirement with respect to the recordkeeping and
reporting requirements.
11 31 CFR 1010.410(f).

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execution date of the transmittal order;
(d) any payment instructions received
from the transmittor with the transmittal
order; (e) the identity of the recipient’s
financial institution; (f) as many of the
following items as are received with the
transmittal order: the name and address
of the recipient, the account number of
the recipient, and any other specific
identifier of the recipient; and (g) if the
transmittor’s financial institution is a
nonbank financial institution, any form
relating to the transmittal of funds that
is completed or signed by the person
placing the transmittal order.12
• If acting as an intermediary
financial institution, or a recipient
financial institution, either the original,
microfilmed, copied, or electronic
record of the received transmittal
order.13
Banks are required to maintain
analogous information for funds
transfers of $3,000 or more, but the rule
uses different terminology to describe
the parties.14 The recordkeeping rule
requires that the data be retrievable and
available upon request to FinCEN, to
law enforcement, and to regulators to
whom FinCEN has delegated BSA
compliance examination authority.
Records required to be retained by the
recordkeeping rule must be made
available to Treasury or the Board upon
request.15
Under the travel rule, a financial
institution acting as the transmittor’s
financial institution must obtain and
include in the transmittal order the
following information on transmittals of
funds of $3,000 or more: (a) Name and,
if the payment is ordered from an
account, the account number of the
transmittor; (b) the address of the
transmittor; (c) the amount of the
transmittal order; (d) the execution date
of the transmittal order; (e) the identity
of the recipient’s financial institution;
(f) as many of the following items as are
received with the transmittal order: the
name and address of the recipient, the
account number of the recipient, and
any other specific identifier of the
recipient; and (g) either the name and
address or the numerical identifier of
the transmittor’s financial institution. A
financial institution acting as an
intermediary financial institution must
include in its respective transmittal
order the same data points listed above,
if received from the sender.16
The recordkeeping rule and the travel
rule apply to transmittals of funds and
12 31

CFR 1010.410(e)(1)(i).
CFR 1010.410(e)(1)(ii) and (iii).
14 31 CFR 1020.410(a).
15 12 U.S.C. 1829b(b)(3)(C); 12 CFR 219.24.
16 31 CFR 1010.410(f)(1)–(2).
13 31

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funds transfers. A ‘‘transmittal of funds’’
is defined as a series of transactions
beginning with the transmittor’s
transmittal order, made for the purpose
of making payment to the recipient of
the order (31 CFR 1010.100(ddd)). The
term includes any transmittal order
issued by the transmittor’s financial
institution or an intermediary financial
institution intended to carry out the
transmittor’s transmittal order. The term
transmittal of funds includes a funds
transfer. A ‘‘funds transfer’’ is a series of
transactions beginning with the
originator’s payment order, made for the
purpose of making payment to the
beneficiary of the order. The term
includes any payment order issued by
the originator’s bank or an intermediary
bank intended to carry out the
originator’s payment order (31 CFR
1010.100(w)). Under the current
definitions, transmittals of funds and
funds transfers governed by the EFTA as
well as any other funds transfers that are
effected through an automated
clearinghouse, an automated teller
machine, or a point-of-sale system, are
excluded from the definitions of
‘‘transmittal of funds’’ and ‘‘funds
transfer’’ under the BSA.
When the recordkeeping and travel
rules were adopted, the EFTA governed
only electronic funds transfers as
defined in section 903(a)(7) of that Act.
The term ‘‘electronic fund transfer’’
includes any transfer of funds that is
initiated through an electronic terminal,
telephone, computer, or magnetic tape,
for the purpose of ordering, instructing,
or authorizing a financial institution to
debit or credit a consumer’s account
(including a payroll card account). The
term includes, but is not limited to, (a)
Point-of-sale transfers; (b) automated
teller machine transfers; (c) direct
deposits or withdrawals of funds; (d)
transfers initiated by phone as part of a
bill-payment plan, and (e) transfers
resulting from debit card transactions,
whether or not initiated through an
electronic terminal. The term does not
include certain transfers of funds, such
as those originated by check, draft, or
similar paper instrument; those issued
as a means of guaranteeing the payment
or authorizing the acceptance of a
check, draft, or similar paper
instrument; or those made in the context
of a purchase or sale of certain securities
or commodities.17 Wire or other similar
transfers conducted through Fedwire®
or similar wire transfer systems
primarily used for transfers between
financial institutions or between
businesses are also specifically
17 15

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excluded from the definition of
‘‘electronic fund transfer.’’
B. Section 1073 of the Dodd-Frank Act
and EFTA
Section 1073 of the Dodd-Frank Act,
signed into law on July 21, 2010, adds
a new Section 919 to the EFTA, creating
new protections for consumers who
send remittance transfers. Authority to
implement the EFTA (except for the
interchange fee provisions in EFTA
section 920) transferred from the Board
to the Consumer Financial Protection
Bureau (‘‘CFPB’’) effective July 21, 2011.
On February 7, 2012, CFPB adopted a
final rule to implement Section 919,
with an effective date of February 7,
2013.18 The provisions of the final rule
will apply to any ‘‘remittance transfer,’’
which is defined as the electronic
transfer of funds requested by a sender
to a designated recipient that is sent by
a remittance transfer provider. The term
applies regardless of whether the sender
holds an account with the remittance
transfer provider, and regardless of
whether the transaction is also an
electronic fund transfer. However,
certain small dollar and securities- or
commodities-related transfers are
excluded from the definition of
remittance transfer.19 A ‘‘sender’’ is a
consumer in a State who primarily for
personal, family, or household purposes
requests a remittance transfer provider
to send a remittance transfer to a
designated recipient.20 A ‘‘designated
recipient’’ is any person specified by the
sender as the authorized recipient of a
remittance transfer to be received at a
location in a foreign country.21 A
‘‘remittance transfer provider’’ or
‘‘provider’’ is any person that provides
remittance transfers for a consumer in
the normal course of its business,
regardless of whether the consumer
holds an account with such person.22
Once effective, the provisions will
extend the coverage of section 919 of the
EFTA, as implemented by Regulation E,
to transactions that were excluded from
other portions of the EFTA and
Regulation E, such as international wire
transfers sent by consumers through
banks, and cash-based transmittals of
funds sent by a consumer through
money transmitters.

18 77

FR 6193 (Feb. 7, 2012).
CFR 1005.30(e).
20 12 CFR 1005.30(g).
21 12 CFR 1005.30(c).
22 12 CFR 1005.30(f).
19 12

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C. Effect of Changes to EFTA and
Regulation E on the Scope of the
Definitions of ‘‘Transmittal of Funds’’
and ‘‘Funds Transfer’’ Under the
Regulations Implementing the BSA
Existing BSA regulations exclude
certain types of transactions and
payment systems that are used mostly
for domestic retail transactions and
payments from the definitions of funds
transfer and transmittal of funds. This
exclusion was implemented, not by
listing the individual transaction types,
but by referencing the law that protected
the consumers engaged in such
transactions (EFTA), and the specific
payment systems through which such
transactions are conducted (ATM, pointof-sale, and automated clearinghouse).
This method of identifying excluded
transactions created a link between two
statutes (and their implementing
regulations) with very different goals.
The BSA requires financial institutions
to keep records and file reports on
transmittals of funds and funds transfers
(which could be either domestic or
international, consumer- or businessrelated, retail or wholesale, cash-based
or account-based) that the Secretary and
the Board determine have a high degree
of usefulness in criminal, tax, or
regulatory investigations or proceedings,
or in intelligence or counterintelligence
matters to protect against international
terrorism.23 The EFTA protects
individual consumers engaging in
certain movements of funds initiated
through electronic means (electronic
terminal, telephone, computer, online
banking, magnetic tape, etc.) for the
purpose of ordering, instructing, or
authorizing a financial institution to
debit or credit a consumer’s account. In
spite of the different statutory purposes,
for many years this relationship
provided a satisfactory match, as the
types of transactions covered by the
EFTA conformed to the profile of the
types of transactions that were
appropriate to exclude from the
recordkeeping and travel requirements
under the BSA.
However, the recent amendments to
the EFTA and the recently finalized
revisions to Regulation E, which are
effective February 7, 2013, will result in
an expanded scope of the transactions

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23 Insured

depository institutions must keep
records relating to funds transfers that the Secretary
and the Board jointly determine have a high degree
of usefulness in criminal, tax, or regulatory
investigations or proceedings. 12 U.S.C. 1829(b).
Financial institutions other than insured depository
institutions, must keep records that the Secretary
determines has a high degree of usefulness in
criminal, tax, or regulatory investigations or
proceedings, or conducting intelligence or
counterintelligence activities to protect against
international terrorism. 12 U.S.C. 1953(a).

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subject to the EFTA’s remittance
provisions. Some of these transactions
have, to date, been covered by the
regulations implementing the BSA.
When the changes to Regulation E
become effective, these transactions—
which include international funds
transfers sent by consumers through
banks, and cash-based or account-based
transmittals of funds sent by consumers
through money transmitters—will fall
outside the BSA rules’ definitions of
‘‘funds transfer’’ and ‘‘transmittal of
funds’’ (31 CFR 1010.100(w) and
1010.100(ddd)). To avoid this result, the
Board and FinCEN are proposing to
amend the definitions of funds transfer
and transmittal of funds under the
regulations implementing the BSA to
limit the exclusion of EFTA-covered
transactions from the recordkeeping and
travel rules.
III. Section-by-Section Analysis
This NPRM proposes to revise the
regulations implementing the BSA by
narrowing the exclusion from
definitions of ‘‘funds transfer’’ and
‘‘transmittal of funds.’’ The term ‘‘funds
transfer’’ is defined in 31 CFR
1010.100(w). The term ‘‘transmittal of
funds’’ is defined in 31 CFR
1010.100(ddd). Both definitions state
that ‘‘funds transfers governed by the
Electronic Fund Transfer Act of 1978
(Title XX, Pub. L. 95–630, 92 Stat. 3728,
15 U.S.C. 1693, et seq.), as well as any
other funds transfers that are made
through an automated clearinghouse, an
automated teller machine, or a point-ofsale system, also are excluded from this
definition.’’
To preserve the current scope of
transactions subject to the
recordkeeping and travel rules, FinCEN
and the Board propose to amend these
definitions by revising the phrase
‘‘funds transfers governed by the
Electronic Fund Transfer Act of 1978’’
to read ‘‘electronic fund transfers as
defined in section 903(7) of the
Electronic Fund Transfer Act.’’ These
revisions would limit the exclusion in
these definitions to electronic fund
transfers as defined in the EFTA. Any
remittance transfers that are covered by
section 919 of the EFTA, but do not
meet the definition of electronic fund
transfer, would continue to be covered
by the travel and recordkeeping rules.
The Board and FinCEN believe that
the proposed amendments preserve the
current scope of transactions subject to
the funds recordkeeping and travel
rules. Nonetheless, the Board and
FinCEN request comment on whether
the proposed amendments change the
scope of the current EFTA exclusion
from the funds recordkeeping and travel

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rules, and thus the scope of transactions
subject to those rules.
IV. Notice and Comment Under the
Administrative Procedure Act
FinCEN and the Board invite
comment on any and all aspects of the
proposal to amend the definitions of
‘‘funds transfer’’ and ‘‘transmittal of
funds,’’ in order to maintain their
current scope, in view of the
modifications to the EFTA’s coverage.
V. Executive Orders 12866 and 13563
Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, 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 been
determined that this proposed rule is
neither an economically significant
regulatory action nor a significant
regulatory action for purposes of
Executive Orders 13563 and 12866.
VI. Unfunded Mandates Act of 1995
Statement
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. Since there is no
change to the requirements imposed
under existing regulations, FinCEN has
determined that it is not required to
prepare a written statement under
section 202.
VII. Regulatory Flexibility Act
FinCEN
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) requires that a
regulation that has a significant
economic impact on a substantial
number of small entities, small
businesses, or small organizations must
include an initial regulatory flexibility
analysis describing the regulation’s
impact on small entities. Such an

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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Proposed Rules

tkelley on DSK3SPTVN1PROD with

analysis need not be undertaken if the
agency has certified that the regulation
will not have a significant economic
impact on a substantial number of small
entities (5 U.S.C. 605(b)). The proposed
changes are not intended to alter any
institution’s existing obligations. The
sole purpose of these amendments is to
maintain the current scope of
transactions subject to the BSA funds
recordkeeping and travel rules, in light
of changes to the EFTA. Accordingly,
FinCEN hereby certifies that the
proposed regulation is not likely to have
a significant economic impact on a
substantial number of small business
entities for purposes of the Regulatory
Flexibility Act. Notwithstanding this
certification, FinCEN invites comments
on the impact of this rule on small
entities.
Board
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 impact on a
substantial number of small entities.
The proposed regulation covers insured
banks and certain nonbank financial
institutions that are engaged in funds
transfers and transmittals of funds. The
Board believes it is unlikely that the
proposed regulation will have a
significant economic impact on a
substantial number of small entities.
Nonetheless, the Board has prepared an
initial regulatory flexibility analysis
pursuant to the RFA. The Board
welcomes comment on all aspects of the
initial regulatory flexibility analysis. A
final regulatory flexibility analysis will
be conducted after consideration of
comments received during the public
comment period.
1. Statement of the need for, and
objectives of, the proposed regulation.
The Dodd-Frank Act’s amendments to
the EFTA expanded the types of
transactions that are covered by the
EFTA and therefore excluded from the
definition of funds transfer and
transmittal of funds in 31 CFR
1010.100(w) and 31 CFR 1010.100(ddd),
respectively. This proposed regulation
is necessary to retain the current scope
of transactions subject to recordkeeping
rule.
2. Small entities affected by the
proposed regulation. The requirements
of this proposed regulation, like the
existing requirements, apply to all
financial institutions subject to the Bank
Secrecy Act, regardless of size. Based on
Call Report data as of June 30, 2012,
approximately 3,820 insured depository
institutions had total domestic assets of

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$175 million or less.24 In addition, the
requirements of this proposed
regulation to affect financial institutions
that are not ‘‘insured depository
institutions’’ under the Federal
Depository Insurance Act. For example,
as of June 30, 2012, approximately 6,120
credit unions had total domestic assets
of $175 million or less.
3. Compliance requirements. The
proposed regulation, like the current
regulation, requires insured depository
institutions and nonbank financial
institutions to collect and retain
information on funds transfers and
transmittals of funds. The proposed
regulation does not change the scope of
the information currently required to be
collected or retained and does not
change the funds transfers and
transmittals of funds for which the
information currently must be collected
and maintained.
4. Other Federal rules. The Board
believes that no Federal rules duplicate,
overlap, or conflict with the proposed
regulation.
5. Significant alternatives to the
proposed regulation. The Board
welcomes comment on any significant
alternatives that would minimize the
impact of the proposal on small entities.
VIII. Paperwork Reduction Act
The collection of information
requirements have been reviewed and
approved by the Office of Management
and Budget (‘‘OMB’’) under section
3507 of the Paperwork Reduction Act of
1995 (‘‘PRA’’) (44 U.S.C. 3507(d). (OMB
Control No. 1506–0058 (recordkeeping
requirements for financial institutions
under § 1010.410(e) and (f)) and 1506–
0059 (recordkeeping requirements for
banks under § 1020.410(a)). Under the
PRA, an agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid OMB
control number. This proposal intends
to keep the same scope of transactions
subject to the requirements of the
recordkeeping and travel rules as
currently are subject to these
requirements. With no change to the
types or scope of transactions covered
under the regulations, there is no impact
on the burden estimates already
approved under the requirements of the
PRA.
List of Subjects in 31 CFR Part 1010
Authority delegations (Government
agencies), Banks and banking, Currency,

Investigations, Law enforcement,
Reporting and recordkeeping
requirements.
Authority and Issuance
For the reasons set forth in the
preamble, 31 CFR part 1010 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, 5316–5332; title III,
secs. 311, 312, 313, 314, 319, 326, 352, Pub.
L. 107–56, 115 Stat. 307.

2. Section 1010.100 is amended by:
a. Revising the last sentence of
paragraph (w), and
b. Revising the last sentence of
paragraph (ddd) to read as follows:
§ 1010.100

General definitions.

*

*
*
*
*
(w) Funds Transfer. * * * Electronic
fund transfers as defined in section
903(7) of the Electronic Fund Transfer
Act (15 U.S.C. 1693a(7)), as well as any
other funds transfers that are made
through an automated clearinghouse, an
automated teller machine, or a point-ofsale system, are excluded from this
definition.
*
*
*
*
*
(ddd) Transmittal of funds. * * *
Electronic fund transfers as defined in
section 903(7) of the Electronic Fund
Transfer Act (15 U.S.C. 1693a(7)), as
well as any other funds transfers that are
made through an automated
clearinghouse, an automated teller
machine, or a point-of-sale system, are
excluded from this definition.
*
*
*
*
*
In concurrence:
By order of the Board of Governors of the
Federal Reserve System, November 27, 2012.
Robert deV. Frierson,
Secretary of the Board.
Dated: November 26, 2012.
Jennifer Shasky Calvery,
Director, Financial Crimes Enforcement
Network.
[FR Doc. 2012–29233 Filed 12–5–12; 8:45 am]
BILLING CODE 6210–01–P; 4810–2P–P

24 U.S. Small Business Administration. Table of
Small Business Size Standards Matched to North
American Industry Classification System Codes,
available at http://www.sba.gov/idc/groups/public/
documents/sba_homepage/serv_sstd_tablepdf.pdf.

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