[Federal Register: May 16, 2003 (Volume 68, Number 95)]
[Rules and Regulations]
[Page 26489]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16my03-8]
[[Page 26489]]
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DEPARTMENT OF THE TREASURY
31 CFR Part 103
RIN 1506-AA45
Financial Crimes Enforcement Network; Delegation of Enforcement
Authority Regarding the Foreign Bank Account Report Requirements
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Final rule.
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SUMMARY: FinCEN is amending the regulations implementing the Bank
Secrecy Act to reflect that enforcement authority with respect to the
foreign bank account report requirements of 31 CFR part 103 has been
delegated from FinCEN to the Commissioner of the Internal Revenue
Service (IRS).
DATES: This final rule is effective May 16, 2003.
FOR FURTHER INFORMATION CONTACT: Office of Chief Counsel, FinCEN, (703)
905-3590 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
I. Background
The Bank Secrecy Act (BSA), Public Law 91-508, as amended, codified
at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31 U.S.C. 5311 et seq.,
authorizes the Secretary of the Treasury, inter alia, to issue
regulations requiring financial institutions and other persons to keep
records and file reports that have a high degree of usefulness in
criminal, tax, and regulatory matters, or in the conduct of
intelligence or counterintelligence activitites, to protect against
international terrorism, and to enforce any reporting or recordkeeping
requirement through various means, including the assessment and
collection of civil penalties. Regulations implementing the authority
of the BSA appear at 31 CFR part 103. FinCEN, a bureau within the U.S.
Department of the Treasury, administers and enforces the BSA and its
implementing provisions pursuant to a delegation by the Secretary of
the Treasury.
FinCEN recently delegated to the IRS the authority to enforce the
FBAR requirements of 31 CFR part 103. Enforcement authority was
delegated by means of a Memorandum of Agreement between FinCEN and the
IRS, and includes the authority to assess and collect civil penalties
for noncompliance with FBAR requirements. The reasons for delegating
enforcement authority were laid out in Treasury/FinCEN's April 2002
report to Congress on the FBAR requirements, which was required to be
submitted by Sec. 361(b) of the USA PATRIOT Act of 2001, Pub. L. 107-
56. Among the reasons cited for the possible delegation of enforcement
authority were the nature of the FBAR requirements (i.e., unlike with
other BSA reports, the overwhelming majority of FBARs are filed by
individual taxpayers, rather than financial institutions) and the
greater resources available to the IRS to devote to FBAR compliance.
IRS previously had been delegated the authority to investigate possible
violations of 31 CFR 103.24. FinCEN is issuing this final rule to amend
the relevant BSA regulations to reflect the delegation of FBAR
enforcement authority.
II. Administrative Procedure Act
This final rule is being issued without notice and an opportunity
for comment because it is a procedural rule, rather than a substantive
rule. The delegation of enforcement authority described in this
document has no substantive impact on those persons subject to the FBAR
reporting and recordkeeping requirements. Rules of agency organization,
procedure, or practice are not subject to notice and comment under the
Administrative Procedure Act (5 U.S.C. 551 et seq.). See 5 U.S.C.
553(b)(3)(A).
III. Regulatory Flexibility Act
The requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.) do not apply to this final rule because the rule is not subject
to the notice and comment requirements of the Administrative Procedure
Act.
IV. Paperwork Reduction Act
This final rule contains no collection of information for purposes
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)).
V. Executive Order 12866
It has been determined that this final rule is not a significant
regulatory action for purposes of Executive Order 12866. Accordingly, a
regulatory impact analysis is not required.
List of Subjects in 31 CFR Part 103
Administrative practice and procedure, 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, part 103 of title 31 of
the Code of Federal Regulations is amended as follows:
PART 103--FINANCIAL RECORDKEEPING AND REPORTING OF CURRENCY AND
FINANCIAL TRANSACTIONS
0
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. 5311-5332;
title III, secs. 312, 314, 352, Pub. L. 107-56, 115 Stat. 307.
0
2. Section 103.56 is amended by adding new paragragh (g) to read as
follows:
Sec. 103.56 Enforcement.
* * * * *
(g) The authority to enforce the provisions of 31 U.S.C. 5314 and
Sec. Sec. 103.24 and 103.32 of this part has been redelegated from
FinCEN to the Commissioner of Internal Revenue by means of a Memorandum
of Agreement between FinCEN and IRS. Such authority includes, with
respect to 31 U.S.C. 5314 and Sec. Sec. 103.24 and 103.32 of this
part, the authority to: assess and collect civil penalties under 31
U.S.C. 5321 and 31 CFR 103.57; investigate possible civil violations of
these provisions (in addition to the authority already provided at
paragraph (c)(2)) of this section); employ the summons power of subpart
F of part 103; issue administrative rulings under subpart G of part
103; and take any other action reasonably necessary for the enforcement
of these and related provisions, including pursuit of injunctions.
3. Section 103.72 is amended by revising paragraph (b) to read as
follows:
(b) Internal Revenue Service. Except with respect to Sec. 103.23
of this part, the Commissioner, the Deputy Commissioner, or a delegate
of either official, and, for the purposes of perfecting seizures and
forfeitures related to civil enforcement of this part, the Chief
(Criminal Investigation) or a delegate.
Dated: May 8, 2003.
James F. Sloan,
Director, Financial Crimes Enforcement Network.
[FR Doc. 03-12211 Filed 5-15-03; 8:45 am]
BILLING CODE 4810-02-P