SUMMARY: As part of the FDIC's systematic review of its regulations and
written policies under section 303(a) of the Riegle Community
Development and Regulatory Improvement Act of 1994 (CDRI), the FDIC is
rescinding its adoption of the policy statement (Statement) concerning
the problem of the use of large-value funds transfers for money
laundering. The Statement recommends that banks obtain and maintain
certain records with respect to funds transfers sent or received in the
normal course of business. The FDIC is rescinding the adoption of the
Statement because it was replaced by an amendment to the Bank Secrecy
DATES: This Statement is rescinded on January 31, 1997.
FOR FURTHER INFORMATION CONTACT: R. Eugene Seitz, Review Examiner,
(202) 898-6793, Division of Supervision; Barbara Katron, Counsel, (202)
736-0564, Legal Division, FDIC, 550 17th Street, N.W., Washington, D.C.
SUPPLEMENTARY INFORMATION: The FDIC is conducting a systematic review
of its regulations and written policies. Section 303(a) of the CDRI (12
U.S.C. 4803(a)) requires each federal banking agency to streamline and
modify its regulations and written policies in order to improve
efficiency, reduce unnecessary costs, and eliminate unwarranted
constraints on credit availability. Section 303(a) also requires each
federal banking agency to remove inconsistencies and outmoded and
duplicative requirements from its regulations and written policies.
As part of this review, the FDIC has determined that the Statement
is outmoded, and that the FDIC's written policies can be streamlined by
The Statement was published on March 17, 1993, 58 FR 14400,
effective December 8, 1992, by the Federal Financial Institutions
Examination Council (FFIEC). The Statement recommended that banks
obtain and maintain certain records concerning funds transfers
originated or received. The FFIEC adopted the Statement upon the
recommendation of the Financial Action Task Force (FATF) as a means to
assist law enforcement agencies in the identification and documentation
of parties to funds transfers. Each federal banking agency subsequently
adopted the Statement.
On January 3, 1995, the Department of the Treasury and the Board of
Governors of the Federal Reserve System jointly published in the
Federal Register an amendment to the Bank Secrecy Act (BSA) regulations
that requires financial institutions to obtain and maintain records
concerning funds transfers originated or received by the institutions.
The recordkeeping requirements contained in the amendment to the BSA
regulations are the same as those recommended in the Statement. The
amendment to the BSA regulations became effective May 28, 1996; the
Statement has become duplicative and, therefore, unnecessary.
On September 13, 1996, the FFIEC voted to rescind the Statement.
For the above reasons, the FDIC's adoption of the Statement is
Dated at Washington, D.C., this 21st day of January, 1997.
By Order of the Board of Directors.
Federal Deposit Insurance Corporation.
Jerry L. Langley,
[FR Doc. 97-2356 Filed 1-30-97; 8:45 am]
BILLING CODE 6714-01-P