Customer Due Diligence Requirements for Financial Institutions

1See, e.g., ‘‘Anti-Money Laundering Programs for Insurance Companies,’’ 31 CFR 1025.210(b)(1). 2The BSA is codified at 12 U.S.C. 1829b, 12 U.S.C. 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).
3 31 U.S.C. 5311.
4Treasury Order 180–01 (Sept. 26, 2002). 5 31 U.S.C. 5318(h)(2). 6 31 U.S.C. 5318(a)(2). 7FIN–2010–G001, ‘‘Guidance on Obtaining and Retaining Beneficial Ownership Information, March 5, 2010, p.1 (‘‘Beneficial Ownership Guidance’’). See also Federal Financial Institution Examination Council Bank Secrecy Act Anti-Money Laundering Examination Manual (2010) (‘‘FFIEC Manual’’), available at: http://www.ffiec.gov/ bsa_aml_infobase/documents/ BSA_AML_Man_2010.pdf; Financial Industry Branch, ANM–150S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue SW., Renton, Washington 98057–3356; phone:
425–917–6596; fax: 425–917–6590; email:
francis.smith@faa.gov.
(2) For service information identified in this AD, contact Boeing Commercial Airplanes, Attention: Data & Services Management, P.O. Box 3707, MC 2H–65, Seattle, Washington 98124–2207; telephone 206–544–5000, extension 1; fax 206–766– 5680; email me.boecom@boeing.com; Internet https://www.myboeingfleet.com. You may review copies of the referenced service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue SW., Renton, Washington. For information on the availability of this material at the FAA, call 425–227–1221. Issued in Renton, Washington, on February 24, 2012. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. 2012–5180 Filed 3–2–12; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network 31 CFR Chapter X RIN 1506–AB15 Customer Due Diligence Requirements for Financial Institutions AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury. ACTION: Advance notice of proposed rulemaking. SUMMARY: FinCEN, after consulting with staffs of various Federal supervisory authorities, is issuing this advance notice of proposed rulemaking (ANPRM) to solicit public comment on a wide range of questions pertaining to the development of a customer due diligence (CDD) regulation that would codify, clarify, consolidate, and strengthen existing CDD regulatory requirements and supervisory expectations, and establish a categorical requirement for financial institutions to identify beneficial ownership of their accountholders, subject to risk-based verification and pursuant to an alternative definition of beneficial ownership as described below. DATES: Written comments on this ANPRM must be received on or before May 4, 2012. ADDRESSES: Comments may be submitted, identified by Regulatory Identification Number (RIN) 1506– AB15, by any of the following methods:

• Federal E-rulemaking Portal: http://
  www.regulations.gov. Follow the instructions for submitting comments. Include RIN 1506–AB15 in the submission. Refer to Docket Number FINCEN–2012–0001.
• Mail: FinCEN, P.O. Box 39, Vienna,
  VA 22183. Include 1506–AB15 in the body of the text. Please submit comments by one method only. All comments submitted in response to this ANPRM will become a matter of public record. Therefore, you should submit only information that you wish to make publicly available. Inspection of comments: Comments may be inspected, between 10 a.m. and 4 p.m., in the FinCEN reading room in Vienna, VA. Persons wishing to inspect the comments submitted must request an appointment with the Disclosure Officer by telephoning (703) 905–5034 (not a toll free call). In general, FinCEN will make all comments publicly available by posting them on http:// www.regulations.gov. FOR FURTHER INFORMATION CONTACT:
  FinCEN: Regulatory Policy and Programs Division, Financial Crimes Enforcement Network, (800) 949–2732 and select option 6. SUPPLEMENTARY INFORMATION:
  I. Scope of ANPRM
  The scope of this ANPRM includes all of the industries that have anti-money laundering (AML) program requirements under FinCEN’s regulations. At this time, and as an initial matter, FinCEN is considering developing a CDD rule to cover banks, brokers or dealers in securities, mutual funds, futures commission merchants, and introducing brokers in commodities; accordingly, this ANPRM is focused primarily on these institutions. However, FinCEN believes that a CDD rule may be appropriate for all financial institutions subject to FinCEN’s regulations, and will consider extending such a rule to such other financial institutions in the future. Therefore, in addition to focusing on input from those types of institutions that would be subject to an initial rulemaking, FinCEN is also specifically requesting comment from other institutions, such as money services businesses (including providers of prepaid access), insurance companies, casinos, dealers in precious metals, stones and jewels, non-bank mortgage lenders or originators, and other entities under FinCEN’s regulations, in particular regarding issues related to identification and verification of customers as discussed in Section IV A. of this ANPRM. While these institutions currently are not mandated to obtain the minimum mandatory information required to identify customers as is mandated in regulations pertaining to depository institutions, brokers or dealers, and others described above, in some cases they still must, on a risk￾based approach, obtain all relevant and appropriate customer-related information necessary to administer an effective anti-money laundering program.1
  II. Background
  FinCEN exercises regulatory functions primarily under the Currency and Financial Transactions Reporting Act of 1970, as amended by the USA PATRIOT Act of 2001 (the Act) and other legislation, which legislative framework is commonly referred to as the ‘‘Bank Secrecy Act’’ (BSA),2 which 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 investigations or proceedings, or in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism’’ 3 The Secretary has delegated to the Director of FinCEN the authority to implement, administer and enforce compliance with the BSA and associated regulations.4 FinCEN is authorized to impose AML program requirements on financial institutions,5 as well as to require financial institutions to maintain procedures to ensure compliance with the BSA and FinCEN’s implementing regulations or guard against money laundering.6 As reflected in recent guidance and enforcement actions, the cornerstone of a strong BSA/AML compliance program is the adoption and implementation of internal controls, which include comprehensive CDD policies, procedures, and processes for all customers, particularly those that present a high risk for money laundering or terrorist financing.7 As erowe on DSK2VPTVN1PROD with PROPOSALS-1