Currency and foreign transactions; financial reporting and recordkeeping requirements: Bank Secrecy Act; implementation— Funds tranmittals by financial institutions; conditional exceptions to full compliance with safe harbor provisions of Travel Rule,

[Federal Register: July 29, 1999 (Volume 64, Number 145)]

[Rules and Regulations]

[Page 41041]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr29jy99-7]

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Part 103

Extension of Grant of Conditional Exception

AGENCY: Financial Crimes Enforcement Network, Treasury.

ACTION: Extension of a Grant of Conditional Exception.

SUMMARY: The Financial Crimes Enforcement Network (``FinCEN'') extends for two years a conditional exception to a provision of the Bank Secrecy Act. The exception, which would otherwise expire on May 31, 1999, permits financial institutions to comply more efficiently with requirements for inclusion of certain information in orders for transmissions of funds.

EFFECTIVE DATE: June 1, 1999.

FOR FURTHER INFORMATION CONTACT: Peter Djinis, Associate Director, FinCEN, (703) 905-3930; Charles Klingman, Financial Institutions Policy Specialist, Office of Program Development, FinCEN, (703) 905-3602; Stephen R. Kroll, Chief Counsel, FinCEN, and Cynthia L. Clark, Deputy Chief Counsel, Office of Chief Counsel, FinCEN, (703) 905-3590.

SUPPLEMENTARY INFORMATION:

1. Background.

   FinCEN Issuance 98-1, 63 FR 3640 (January 26, 1998), contains two ``conditional exceptions'' to the strict operation of 31 CFR 103.33(g) (the ``Travel Rule''). The Travel Rule requires a financial institution to include certain information in transmittal orders relating to transmittals of funds of $3,000 or more. The first (the ``CIF Exception'') of the two conditional exceptions addressed computer programming problems in the banking and securities industries; it relaxed a requirement that a customer's true name and street address be included in a funds transmittal order, so long as alternate steps, described in the issuance and designed to prevent avoidance of the Travel Rule, were satisfied. By its terms, that exception to the Travel Rule was to expire on May 31, 1999, for transmittals of funds initiated after that date. However, the rationale for the CIF Exception remains valid, and Treasury wishes to avoid any change in Travel Rule requirements that might entail changes in the computer programming of financial institutions at this time.

2. FinCEN Issuance 99-1

   By virtue of the authority contained in 31 CFR 103.45 (a) and (b), which has been delegated to the Director of FinCEN, the effective period of the CIF Exception, as such Exception is set forth (as part of FinCEN Issuance 98-1, 63 FR 3640 (January 26, 1998) under the heading ``Grant of Exceptions'' (63 FR 3641) is extended so that the CIF Exception will expire, on May 31, 2001, for transmittals of funds initiated after that date, if not revoked or modified with respect to such expiration date prior to that time.

   Signed this 28th day of May, 1999. James F. Sloan, Director, Financial Crimes Enforcement Network.

   [FR Doc. 99-19259Filed7-28-99; 8:45 am]

   BILLING CODE 4820-03-P