Expansion of Special Information Sharing Procedures to Deter Money Laundering and Terrorist Activity

1Special Information Sharing Procedures to Deter Money Laundering and Terrorist Activity, 67 FR 60,579 (Sept. 26, 2002). 2 31 CFR 103.100. the narrative portion of the notice to cosigner. (i) The name and address of the Federal credit union; (ii) An identification of the debt to be cosigned (e.g., a loan identification number); (iii) The amount of the loan; (iv) The date of the loan; (v) A signature line for a cosigner to acknowledge receipt of the notice; and (vi) To the extent permitted by State law, a cosigner notice required by State law may be included in the notice in paragraph (b)(1) of this section. (3) To the extent the notice to cosigner specified in paragraph (b)(1) of this
section refers to an action against a
cosigner that is not permitted by State law, the notice to cosigner may be modified. § 706.4 Late charges. (a) In connection with collecting a debt arising out of an extension of credit to a consumer, it is an unfair act or practice for a Federal credit union, directly or indirectly, to levy or collect any delinquency charge on a payment, which payment is otherwise a full payment for the applicable period and is paid on its due date or within an applicable grace period, when the only delinquency is attributable to late fee(s) or delinquency charge(s) assessed on earlier installment(s). (b) For purposes of this section, ‘‘collecting a debt’’ means any activity other than the use of judicial process that is intended to bring about or does bring about repayment of all or part of a consumer debt. By the National Credit Union Administration Board, on January 29, 2010. Mary F. Rupp, Secretary of the Board. [FR Doc. 2010–2311 Filed 2–9–10; 8:45 am] BILLING CODE 7535–01–P DEPARTMENT OF THE TREASURY 31 CFR Part 103 RIN 1506–AB04 Financial Crimes Enforcement Network; Expansion of Special Information Sharing Procedures To Deter Money Laundering and Terrorist Activity AGENCY: Financial Crimes Enforcement Network (‘‘FinCEN’’), Treasury. ACTION: Final rule. SUMMARY: FinCEN is issuing this final rule to amend the relevant Bank Secrecy Act (‘‘BSA’’) information sharing rules to allow certain foreign law enforcement agencies, and State and local law enforcement agencies, to submit requests for information to financial institutions. The rule also clarifies that FinCEN itself, on its own behalf and on behalf of other appropriate components of the Department of the Treasury (‘‘Treasury’’), may submit such requests. Modification of the information sharing rules is a part of Treasury’s continuing effort to increase the efficiency and effectiveness of its anti-money laundering and counter-terrorist financing policies. DATES: Effective Date: February 10, 2010. FOR FURTHER INFORMATION CONTACT: The FinCEN regulatory helpline at (800) 949–2732 and select Option 2. SUPPLEMENTARY INFORMATION:
I. Background
A. Statutory Provisions On October 26, 2001, the President signed into law the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (‘‘USA PATRIOT ACT’’), Public Law 107–56 (‘‘the Act’’). Title III of the Act amends the anti-money laundering provisions of the BSA, codified at 12 U.S.C. 1829b and 1951–1959 and 31 U.S.C. 5311–5314 and 5316–5332, to promote the prevention, detection, and prosecution of international money laundering and the financing of terrorism. Regulations implementing the BSA appear at 31 CFR Part 103. The authority of the Secretary of the Treasury (‘‘the Secretary’’) to administer the BSA has been delegated to the Director of FinCEN. Of the Act’s many goals, the facilitation of information sharing among governmental entities and financial institutions for the purpose of combating terrorism and money laundering is of paramount importance.
Section 314 of the Act furthers this goal
by providing for the sharing of information between the government and financial institutions, and among financial institutions themselves. As with many other provisions of the Act, Congress has charged Treasury with promulgating regulations to implement these information-sharing provisions. Subsection 314(a) of the Act states in
part that:
[t]he Secretary shall * * * adopt regulations to encourage further cooperation among financial institutions, their regulatory authorities, and law enforcement authorities, with the specific purpose of encouraging regulatory authorities and law enforcement authorities to share with financial institutions information regarding individuals, entities, and organizations engaged in or reasonably suspected based on credible evidence of engaging in terrorist acts or money laundering activities. B. Overview of the Current Regulatory Provisions Regarding the 314(a) Program On September 26, 2002, FinCEN published a final rule implementing the authority contained in section 314(a) of the Act.1 That rule (‘‘the 314(a) rule’’) allows FinCEN to require financial institutions to search their records to determine whether they have maintained an account or conducted a transaction with a person that a Federal law enforcement agency has certified is suspected based on credible evidence of engaging in terrorist activity or money laundering.2 Before processing a request from a Federal law enforcement agency, FinCEN also requires the requesting agency to certify that, in the case of money laundering, the matter is significant, and that the requesting agency has been unable to locate the information sought through traditional methods of investigation and analysis before attempting to use this authority (‘‘the 314(a) program’’). Since its inception, the 314(a) program has yielded significant investigative benefits to Federal law enforcement users in terrorist financing and major money laundering cases. Feedback from the requesters and illustrations from sample case studies consistently demonstrate how useful the program is in enhancing the scope and expanding the universe of investigations. In view of the proven success of the 314(a) program, FinCEN is broadening access to the program as outlined in the following paragraphs.
C. Objectives of Changes

1. Allowing Certain Foreign Law
   Enforcement Agencies To Initiate 314(a) Queries In order to satisfy the United States’ treaty obligation with certain foreign governments, FinCEN is extending the use of the 314(a) program to include foreign law enforcement agencies. On June 25, 2003, the Agreement on Mutual Legal Assistance between the United States and the European Union (‘‘EU’’) (hereinafter, the ‘‘U.S.–EU MLAT’’) was signed. In 2006, the U.S.–EU MLAT, along with twenty-five bilateral instruments, were submitted to the U.S. Senate for its advice and consent for