Bank Secrecy Act Regulations: Reports of Foreign Financial Accounts Civil Penalties

Legal Status

This site displays a prototype of a “Web 2.0” version of the daily Federal Register. It is not an official legal edition of the Federal Register, and does not replace the official print version or the official electronic version on GPO’s govinfo.gov.

The documents posted on this site are XML renditions of published Federal Register documents. Each document posted on the site includes a link to the corresponding official PDF file on govinfo.gov. This prototype edition of the daily Federal Register on FederalRegister.gov will remain an unofficial informational resource until the Administrative Committee of the Federal Register (ACFR) issues a regulation granting it official legal status. For complete information about, and access to, our official publications and services, go to About the Federal Register on NARA's archives.gov.

The OFR/GPO partnership is committed to presenting accurate and reliable regulatory information on FederalRegister.gov with the objective of establishing the XML-based Federal Register as an ACFR-sanctioned publication in the future. While every effort has been made to ensure that the material on FederalRegister.gov is accurately displayed, consistent with the official SGML-based PDF version on govinfo.gov, those relying on it for legal research should verify their results against an official edition of the Federal Register. Until the ACFR grants it official status, the XML rendition of the daily Federal Register on FederalRegister.gov does not provide legal notice to the public or judicial notice to the courts.

Legal Status

Enter a search term or FR citation e.g.

88 FR 382

30 FR 7878

2024-13208

USDA

09/05/24

RULE

0503-AA39

SORN

Choosing an item from full text search results will bring you to those results. Pressing enter in the search box will also bring you to search results. Choosing an item from suggestions will bring you directly to the content.

Background and more details are available in the

Search & Navigation

guide.

Bank Secrecy Act Regulations-Reports of Foreign Financial Accounts Civil Penalties

A Rule by the Financial Crimes Enforcement Network on 12/23/2021

Published Document: 2021-27623 (86 FR 72844) This document has been published in the Federal Register . Use the PDF linked in the document sidebar for the official electronic format. Published Document: 2021-27623 (86 FR 72844)

Document Details Published Content - Document Details

Agencies

Department of the Treasury

Financial Crimes Enforcement Network

CFR

31 CFR 1010

Document Citation

86 FR 72844

Document Number

2021-27623

Document Type

Rule

Pages

72844-72845 (2 pages)

Publication Date

12/23/2021

RIN

1506-AB53

Published Content - Document Details

PDF Official Content

View printed version (PDF)

Official Content

Document Details Published Content - Document Details

Agencies

Department of the Treasury

Financial Crimes Enforcement Network

CFR

31 CFR 1010

Document Citation

86 FR 72844

Document Number

2021-27623

Document Type

Rule

Pages

72844-72845 (2 pages)

Publication Date

12/23/2021

RIN

1506-AB53

Published Content - Document Details

Document Dates Published Content - Document Dates

Effective Date

2021-12-23

Dates Text

Effective Date: The final rule is effective December 23, 2021.

Published Content - Document Dates

Table of Contents Enhanced Content - Table of Contents Enhanced Content - Table of Contents

Public Comments Enhanced Content - Public Comments

This feature is not available for this document.

Enhanced Content - Public Comments

Regulations.gov Data Enhanced Content - Regulations.gov Data

Additional information is not currently available for this document.

Enhanced Content - Regulations.gov Data

Sharing Enhanced Content - Sharing

Shorter Document URL

https://www.federalregister.gov/d/2021-27623

Email

Email this document to a friend

Enhanced Content - Sharing

Print Enhanced Content - Print

Print this document

Enhanced Content - Print

Document Statistics Enhanced Content - Document Statistics

Document page views are updated periodically throughout the day and are cumulative counts for this document. Counts are subject to sampling, reprocessing and revision (up or down) throughout the day.

Page views

4,256 as of 08/10/2026 at 10:15 am EDT

Enhanced Content - Document Statistics

Other Formats Enhanced Content - Other Formats

This document is also available in the following formats:

JSON

Normalized attributes and metadata

XML

Original full text XML

MODS

Government Publishing Office metadata

More information and documentation can be found in our developer tools pages .

Enhanced Content - Other Formats

Public Inspection Public Inspection

This PDF is FR Doc. 2021-27623 as it appeared on Public Inspection on 12/22/2021 at 8:45 am.

It was viewed 1124 times while on Public Inspection.

If you are using public inspection listings for legal research, you should verify the contents of the documents against a final, official edition of the Federal Register. Only official editions of the Federal Register provide legal notice of publication to the public and judicial notice to the courts under 44 U.S.C. 1503 & 1507 . Learn more here .

Public Inspection

Published Document: 2021-27623 (86 FR 72844) This document has been published in the Federal Register . Use the PDF linked in the document sidebar for the official electronic format.

Document Headings

Document headings vary by document type but may contain the following:

the agency or agencies that issued and signed a document

the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to

the agency docket number / agency internal file number

the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions

See the Document Drafting Handbook for more details.

Department of the Treasury

Financial Crimes Enforcement Network

31 CFR Part 1010

RIN 1506-AB53

AGENCY:

Financial Crimes Enforcement Network (FinCEN), Treasury.

ACTION:

Final rule.

SUMMARY:

FinCEN is amending the Bank Secrecy Act civil penalty regulations relating to the requirements for reporting foreign financial accounts and for reporting transactions with foreign financial agencies. The amendments remove civil penalty language, which was made obsolete with the enactment of the American Jobs Creation Act of 2004. The American Jobs Creation Act of 2004 revised the manner for computing the penalty, including providing a greater maximum penalty for willful violations than was previously authorized.

DATES:

Effective Date: The final rule is effective December 23, 2021.

FOR FURTHER INFORMATION CONTACT:

The FinCEN Regulatory Support Section at 1-800-767-2825 or electronically at https://fincen.gov/​contact .

SUPPLEMENTARY INFORMATION:

I. Background

The purposes of the Bank Secrecy Act (BSA), Titles I and II of Public Law 91-508, as amended, codified at 12 U.S.C. 1829b , 12 U.S.C. 1951-1959 , and 31 U.S.C. 5311-5314 and 5316-5336 , include, among other things, requiring certain reports or records that are highly useful in criminal, tax, or regulatory investigations. The regulations implementing the BSA appear at 31 CFR chapter X . The Secretary's authority to administer the BSA has been delegated to the Director of FinCEN. [ 1 ]

Pursuant to 31 U.S.C. 5314 , the Secretary is authorized to require any “resident or citizen of the United States or a person in, and doing business in, the United States, to . . . keep records and file reports, when the resident, citizen, or person makes a transaction or maintains a relation for any person with a foreign financial agency.” The regulations implementing 31 U.S.C. 5314 appear at 31 CFR 1010.350 , 1010.360 , and 1010.420 . Section 1010.350 sets forth the requirements for filing a Foreign Bank Account Report (FBAR), which generally require each U.S. person having a financial interest in, or signature or other authority over, a bank, securities, or other financial account in a foreign country to report such relationship for each year in which such relationship exists. Section 1010.420 outlines the recordkeeping requirements associated with foreign financial accounts required to be reported under Section 1010.350. Section 1010.360, commonly referred to as the report of foreign financial agency transactions, provides that FinCEN may promulgate regulations requiring specified financial institutions to file reports of certain transactions with designated foreign financial agencies.

II. Civil Monetary Penalty

Section 5321 of Title 31 of the U.S. Code describes civil monetary penalties for violations of the BSA. In October 1986, Congress amended 31 U.S.C. 5321 to add a provision— 31 U.S.C. 5321(a)(5) —authorizing a civil monetary penalty for willful violations of section 5314. (Pub. L. 99-570, section 1357(c), October 26, 1986) (“the Anti-Drug Abuse Act of 1986” or the “1986 Act”)). The terms of the 1986 amendment were incorporated into the BSA implementing regulations at 31 CFR 1010.820(g) . [ 2 ]

The American Jobs Creation Act of 2004 amended 31 U.S.C. 5321(a)(5) . The amendments revised the manner in which the penalty is calculated, including an increase to the maximum amount that could be assessed for willful violations of section 5314.

III. Section by Section Analysis

Section 821 of the American Jobs Creation Act of 2004 is self-executing, and the penalty provisions apply to violations occurring after the date of its enactment. For those reasons, the provisions in 31 CFR 1010.820(g) are obsolete and superseded by statute. FinCEN is therefore rescinding 31 CFR 1010.820(g) . The remaining paragraphs (h) and (i) in § 1010.820 are redesignated as paragraphs (g) and (h).

IV. Administrative Procedure Act and Effective Date

Under 5 U.S.C. 553(b)(3)(B) of the Administrative Procedure Act (APA), an agency may, for good cause, find (and incorporate the finding and a brief statement of reasons therefore in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest. The final rule rescinds civil penalty regulations at 31 CFR 1010.820(g)(1) and (2) because they have been rendered obsolete with the 2004 amendments to 31 U.S.C. 5321(a)(5) . The agency has therefore determined that publishing a notice of proposed rulemaking and providing opportunity for public comment is unnecessary. This amendment to the regulations merely conforms the regulations to the current statute.

Under 5 U.S.C. 553(d)(3) of the APA, the required publication or service of a substantive rule shall be made not less than 30 days before its effective date, except, among other things, as provided by the agency for good cause found and published with the rule. FinCEN finds that there is good cause for shortened notice since 31 CFR 1010.820(g) is obsolete and the revisions made by this final rule are non-substantive and technical. This final rule takes effect on December 23, 2021.

V. Regulatory Flexibility Act

The Regulatory Flexibility Act ( 5 U.S.C. 601

et seq. ) (RFA) does not apply to a rulemaking where a general notice of proposed rulemaking is not required. As noted above, FinCEN has determined 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.

VI. Executive Order 13563 and 12866

Executive Orders 13563 and 12866 direct agencies to assess 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. FinCEN ( printed page 72845) has determined that Executive Orders 13563 and 12866 do not apply to this final rulemaking.

VII. Paperwork Reduction Act (PRA) Notices

There is no collection of information requirement in this final rule.

VIII. Unfunded Mandates Act of 1995 Statement

Section 202 of the Unfunded Mandates Reform Act of 1995, 12 U.S.C. 1532 , Public Law 104-4 (March 22, 1995) (Unfunded Mandates Act), requires that an agency prepare a budgetary impact statement before promulgating a rule that may result in expenditure by 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. FinCEN has determined that no portion of this final rule will result in expenditures by State, local, and tribal governments, or by the private sector, of $100 million or more in any one year. Accordingly, this final rule is not subject to section 202 of the Unfunded Mandates Act.

List of Subjects in 31 CFR Part 1010

Administrative practice and procedure

Banks

Banking

Brokers

Currency

Foreign banking

Foreign currencies

Gambling

Investigations

Penalties

Reporting and recordkeeping requirements

Securities

Terrorism

Amendments to the Regulations

For the reasons set forth above in the preamble, 31 CFR part 1010 is amended as follows:

PART 1010—GENERAL PROVISIONS

The authority citation for part 1010 is revised to read as follows:

Authority:

12 U.S.C. 1829b and 1951-1960 ; 31 U.S.C. 5311-5314 and 5316-5336 ; title III, sec. 314, Pub. L. 107-56 , 115 Stat. 307; sec. 701, Pub. L. 114-74 , 129 Stat. 599.

§ 1010.820

[Amended]

Section 1010.820 is amended as follows:

a. Remove paragraph (g); and

b. Redesignate paragraphs (h) and (i) as paragraphs (g) and (h).

Himamauli Das,

Acting Director, Financial Crimes Enforcement Network.

Footnotes

                    See 
                     Treasury Order 180-01 (Jan. 14, 2020).

Back to Citation

52 FR 11436 , April 8, 1987.

Back to Citation

[ FR Doc. 2021-27623 Filed 12-22-21; 8:45 am]

BILLING CODE 4810-02-P

Published Document: 2021-27623 (86 FR 72844)