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Federal Register / Vol. 73, No.

8 / Friday, January 11, 2008 / Rules and Regulations 1975

§ 291.510 Overview of the GNND Sales I. Background USA PATRIOT Act.1 At the same time,
Program. FinCEN also exempted certain financial
* * * * * A. USA PATRIOT Act Section 352
institutions, including dealers in
(b) Eligible properties. Under the On October 26, 2001, the President precious metals, stones, or jewels, and
GNND Sales Program, single-unit signed into law the USA PATRIOT Act insurance companies, from having to
properties acquired by HUD located in (Pub. L. 107–56). Title III of the USA comply with section 352 of the USA
HUD-designated revitalization areas PATRIOT Act makes a number of PATRIOT Act for a six month period.2
(except occupied properties, those amendments to the anti-money In November 2002, FinCEN replaced
located in Asset Control Areas, or those laundering provisions of the Bank this six month exemption from the
that HUD has determined will be sold Secrecy Act (‘‘BSA’’), which is codified application of the anti-money
through an alternative sales method) in subchapter II of chapter 53 of title 31, laundering program requirements in
will be made available to interested law United States Code. These amendments section 352 with an open-ended
enforcement officers, teachers, and are intended to make it easier to exemption (‘‘Temporary Exemption
firefighters/emergency medical prevent, detect, and prosecute money Rule’’).3
technicians prior to listing the laundering and the financing of
properties for sale to other purchasers. terrorism. Section 352(a) of the USA B. Updating 31 CFR Section 103.170
* * * * * PATRIOT Act, amended section 5318(h)
In the years since the Temporary
Dated: January 3, 2008. of the BSA, effective April 24, 2002, to
Exemption Rule was published, FinCEN
Brian D. Montgomery, require every financial institution to
has promulgated a number of rules that
Assistant Secretary for Housing—Federal establish an anti-money laundering
program that includes, at a minimum: (i) require two previously exempted
Housing Commissioner. categories of financial institutions
[FR Doc. E8–355 Filed 1–10–08; 8:45 am] The development of internal policies,
procedures, and controls; (ii) the (dealers in precious metals, stones, or
BILLING CODE 4210–67–P jewels,4 and insurance companies 5) to
designation of a compliance officer; (iii)
an ongoing employee training program; establish anti-money laundering
and (iv) an independent audit function programs.6 Although FinCEN has,
DEPARTMENT OF THE TREASURY to test programs. through the publication of the above-
mentioned rules, ipso jure revoked the
The definition of ‘‘financial
31 CFR Part 103 exemptions previously issued to those
institution’’ in sections 5312(a)(2) and
(c)(1) of the BSA is broad. It includes categories of financial institutions,7 the
RIN 1506–AA88 Temporary Exemption Rule is being
categories of institutions that were
already subject to some federal anti- amended to reflect these revocations
Financial Crimes Enforcement
Network; Amendment Regarding money laundering regulations at the and eliminate possible confusion.
Financial Institutions Exempt from time the USA PATRIOT Act was passed,
1 These rules prescribed requirements for anti-
Establishing Anti-Money Laundering such as banks, savings associations,
money laundering programs for banks, savings
Programs credit unions, and money services
associations, credit union, registered securities
businesses (such as money transmitters broker-dealers, futures commission merchants, and
AGENCY: Financial Crimes Enforcement and currency dealers or exchangers). introducing brokers that are regulated by a federal
Network, Department of the Treasury. The definition also includes: Registered functional regulator or a self-regulatory
ACTION: Final rule. securities broker-dealers; futures organization, and casinos. 67 FR 21110 (Apr. 29,
2002) (interim final rules). At the same time,
commission merchants; dealers in FinCEN also issued interim final rules that required
SUMMARY: The Financial Crimes precious metals, stones, or jewels; money services businesses (67 FR 21114 (Apr. 29,
Enforcement Network (‘‘FinCEN’’) is pawnbrokers; loan or finance 2002)), mutual funds (67 FR 21117 (Apr. 29, 2002)),
amending the provision in its companies; trust companies; private and operators of credit card systems (67 FR 21121
regulations that defers, for certain (Apr. 29, 2002)) to establish anti-money laundering
bankers; insurance companies; travel programs.
categories of financial institutions, the agencies; telegraph companies; sellers of 2 Id.
application of the anti-money vehicles, including automobiles, 3 31 CFR 103.170, 67 FR 67547 (Nov. 6, 2002),
laundering program requirements in airplanes, and boats; persons engaged in corrected at 67 FR 68953 (Nov. 14, 2002).
section 352 of the Uniting and real estate closings and settlements; 4 31 CFR 103.170(b)(i)

Strengthening America by Providing investment bankers; investment


5 31 CFR 103.170(b)(ix). Only those insurance

Appropriate Tools Required to Intercept companies falling within the definition contained
companies; and commodity pool in 31 CFR 103.137(a)(9) are required to have an
and Obstruct Terrorism (‘‘USA operators and commodity trading anti-money laundering program. The removal of the
PATRIOT’’) Act of 2001. Two of the advisors that are registered or require to entire category of ‘‘insurance companies’’ from the
categories of financial institutions register under the Commodity Exchange exempted list should not be read to limit the
specifically exempted from having to breadth of the definition for purposes of the
Act (7 U.S.C. 1 et seq.). Section 352 of availability of the safe harbor under 31 U.S.C.
establish an anti-money laundering the USA PATRIOT Act requires all of 5318(g)(3) for voluntary reports of suspicious
program subsequently have been these businesses to establish anti-money activities. See 70 FR 66755 (Nov. 3, 2005), fn 4.
required by regulation to establish such laundering programs. 6 FinCEN issued rules in 2005 requiring dealers

programs, and this rulemaking will in precious stones, metals, and jewels ((See 70 FR
amend the regulations to reflect those Section 5318(h)(2) of the BSA, 33702 (June 9, 2005) (interim final rule)), and
changes. however, also grants the Secretary of the certain insurance companies (See 70 FR 66754
Treasury, and by extension his delegate (Nov. 3, 2005) (final rule)) to establish anti-money
DATES: Effective Date: January 11, 2008. laundering programs.
FinCEN, the authority to exempt certain 7 The removal of the temporary exemption occurs
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FOR FURTHER INFORMATION CONTACT: financial institutions from the automatically pursuant to 31 CFR section
Regulatory Policy and Programs requirement to institute anti-money 103.170(c), which states that ‘‘[t]he exemptions
Division (FinCEN), (800) 949–2732 (toll- laundering programs. In April 2002, described in paragraphs (a)(2) and (b) of [this rule]
shall not apply to any financial institution that is
free). FinCEN issued a series of interim final otherwise required to establish an anti-money
SUPPLEMENTARY INFORMATION: rules implementing section 352 of the laundering program by this subpart I.’’

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1976 Federal Register / Vol. 73, No. 8 / Friday, January 11, 2008 / Rules and Regulations

II. Administrative Procedure Act Subpart I—Anti-Money Laundering regulations.gov. Although listed in the
Programs index, some information is not publicly
Under the Administrative Procedure
available, e.g., Confidential Business
Act (‘‘APA’’), notice of a proposed § 103.170 [Amended] Information (CBI) or other information
rulemaking is not required when the
■ 2. Section 103.170 is amended by: whose disclosure is restricted by statute.
agency, for good cause, finds ‘‘that
■ a. Removing paragraphs (b)(1)(i) and Certain other material, such as
notice and public procedure thereon are
(b)(1)(ix); and copyrighted material, is not placed on
impracticable, unnecessary, or contrary ■ b. Redesignating paragraphs (b)(1)(ii) the Internet and will be publicly
to the public interest.’’ 8 FinCEN is as (b)(1)(i); (b)(1)(iii) as (b)(1)(ii); available only in hard copy form.
making technical amendments to the (b)(1)(iv) as (b)(1)(iii); (b)(1)(v) as Publicly available docket materials are
Temporary Exemption Rule to ensure (b)(1)(iv); (b)(1)(vi) as (b)(1)(v); (b)(1)(vii) available in the electronic docket at
that the list of temporarily exempted as (b)(1)(vi); (b)(1)(viii) as (b)(1)(vii); http://www.regulations.gov, or, if only
financial institutions is accurate and not (b)(1)(x) as (b)(1)(viii); (b)(1)(xi) as available in hard copy, at the OPP
confusing. FinCEN, therefore, finds that (b)(1)(ix); and (b)(1)(xii) as (b)(1)(x). Regulatory Public Docket in Rm. S–
publishing the amendments for 4400, One Potomac Yard (South Bldg.),
comment is unnecessary. Dated: December 20, 2007.
James H. Freis, Jr.,
2777 S. Crystal Dr., Arlington, VA. The
In addition, publication of a Docket Facility is open from 8:30 a.m.
substantive rule not less than 30 days Director, Financial Crimes Enforcement
Network.
to 4 p.m., Monday through Friday,
before its effective date is required by excluding legal holidays. The Docket
the APA except as otherwise provided [FR Doc. E8–315 Filed 1–10–08; 8:45 am]
Facility telephone number is (703) 305–
by the agency for good cause.9 For the BILLING CODE 4810–02–P
5805.
same reasons described above with
FOR FURTHER INFORMATION CONTACT:
respect to notice and opportunity for
Susan Stanton, Registration Division
comment, FinCEN finds that there is ENVIRONMENTAL PROTECTION (7505P), Office of Pesticide Programs,
good cause for making these technical AGENCY Environmental Protection Agency, 1200
amendments effective on January 11,
40 CFR Part 180 Pennsylvania Ave., NW., Washington,
2008.
DC 20460–0001; telephone number:
III. Regulatory Flexibility Act [EPA–HQ–OPP–2007–0546; FRL–8347–7] (703) 305-5218; e-mail address:
Because no notice of proposed stanton.susan@epa.gov.
Thiabendazole; Threshold of
rulemaking is required for this final Regulation Determination SUPPLEMENTARY INFORMATION:
rule, the provisions of the Regulatory I. General Information
Flexibility Act (5 U.S.C. 601 et seq.) do AGENCY: Environmental Protection
not apply.10 Agency (EPA). A. Does this Action Apply to Me?
ACTION: Final rule. You may be potentially affected by
IV. Executive Order 12866
SUMMARY: This regulation establishes by this action if you are an agricultural
This final rule is not a ‘‘significant producer, food manufacturer, or
regulatory action’’ as defined in rule that there is no need for a tolerance
or tolerance exemption under the pesticide manufacturer. Potentially
Executive Order 12866. Accordingly, a affected entities may include, but are
regulatory assessment is not required. Federal Food Drug and Cosmetic Act
(FFDCA) for the use of the fungicide not limited to those engaged in the
List of Subjects in 31 CFR Part 103 thiabendazole as a seed treatment on following activities:
dry peas. This determination is based on • Crop production (NAICS code 111),
Banks and banking, Brokers, Counter e.g., agricultural workers; greenhouse,
money laundering, Counter-terrorism, EPA’s finding that any residues that
remain in food from this use will be nursery, and floriculture workers;
Currency, Foreign banking, Reporting farmers.
both non-detectable and below the level
and recordkeeping requirements. • Animal production (NAICS code
of regulatory concern.
Authority and Issuance 112), e.g., cattle ranchers and farmers,
DATES: This regulation is effective dairy cattle farmers, livestock farmers.
■ For the reasons set forth above, January 11, 2008. Objections and • Food manufacturing (NAICS code
FinCEN is amending 31 CFR part 103 as requests for hearings must be received 311), e.g., agricultural workers; farmers;
follows: on or before March 11, 2008, and must greenhouse, nursery, and floriculture
be filed in accordance with the workers; ranchers; pesticide applicators.
PART 103—FINANCIAL instructions provided in 40 CFR part • Pesticide manufacturing (NAICS
RECORDKEEPING AND REPORTING 178 (see also Unit I.C. of the code 32532), e.g., agricultural workers;
OF CURRENCY AND FOREIGN SUPPLEMENTARY INFORMATION ). commercial applicators; farmers;
TRANSACTIONS ADDRESSES: EPA has established a greenhouse, nursery, and floriculture
docket for this action under docket workers; residential users.
■ 1. The authority citation for part 103 identification (ID) number EPA–HQ– This listing is not intended to be
continues to read as follows: OPP–2007–0546. To access the exhaustive, but rather to provide a guide
Authority: 12 U.S.C. 1829b and 1951–1959; electronic docket, go to http:// for readers regarding entities likely to be
31 U.S.C. 5311–5314 and 5316–5332; title III, www.regulations.gov, select ‘‘Advanced affected by this action. Other types of
secs. 311, 312, 313, 314, 319, 326, 352, Pub. Search,’’ then ‘‘Docket Search.’’ Insert entities not listed in this unit could also
L. 107–56, 115 Stat. 307. the docket ID number where indicated be affected. The North American
and select the ‘‘Submit’’ button. Follow Industrial Classification System
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85U.S.C. 553(b). the instructions on the regulations.gov (NAICS) codes have been provided to
95U.S.C. 553(d).
10 See 5 U.S.C. 601(2) (for purposes of Regulatory
website to view the docket index or assist you and others in determining
Flexibility Act analyses, the term ‘‘rule’’ means any
access available documents. All whether this action might apply to
rule for which the agency publishes a general notice documents in the docket are listed in certain entities. If you have any
of proposed rulemaking). the docket index available in questions regarding the applicability of

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