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Federal Register / Vol. 51. No. 35 / Friday, February 21. 1986 / Notices

6317

institution previously has entered into transactions.

(1) To OGC. Enforcement and persons representing the Board in legal matters. and to other persons baving access to legal papers connected with such matters.

OLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, ANO DISPOSING OF RECORDS IN THE SYSTEM STORAGE:

Records are maintained on fixed disks.

RETIEYARUTY:

Records are retrievable by name of individual or by the individual's relationship to the insured institution involved. SAFTQUAROT

Access to the system will be available only to Board employees and agents who have been issued the system passwords, which will be revealed only to those persons who have need for information from the system in the performance of their duties. RETUTION AND DISPOSAL

Records will be retained for up to 25 years after the date of entry. Records will then be sent to the Federal Records Center SYSTEM MANAGER AND ADDRESS

Database Administrator, Office of Examinations and Supervision. Federal Home Loan Bank Board. 1700 G Street, NW., Washington, DC 20552 NOTIFICATION OCEDURES:

This system will be exempt from notification and record-access requirements and requirements that an individual be permitted to contest its content under 5 U.S.C. 552a(k)(2) because it contains investigatory material compiled for law enforcement parposes. RECORD ACCESS OCEDURES:

See Notification procedures. CONTESTINO NECOND PROCEDURES:

See Notification procedures. RECOND SOUNC CATTOORIES:

This system will be exempt under 5 U.S.C. 552a(k)(2) from the requirement that the sources of records used in the system be published, because it contains investigatory material compiled for law enforcement purposes.

By the Federal Home Loan Bank Board. Nadip, Y. Pas Acting Secretary (FR Doc. 88-3816 Filed 2-20-86 8:45 am wn Coot 614

FEDERAL MARITIME COMMISSION official OMB inventory of currently

approved collections of information. A Agreement(s) Filed

copy of the SF 83 and supporting The Federal Maritime Commission

statement and the approved collection hereby gives notice of the filing of the

of information instrument(8) will be following agreement(8) pursuant to

placed into OMB's public docket files. section 5 of the Shipping Act of 1964.

The following forms, which are being Interested parties may inspect and

handled under this delegated authority, obtain a copy of each agreement at the

have received initial Board approval Washington DC Office of the Federal

and are hereby published for comment. Maritime Commission, 1100 L Street,

At the end of the comment period. the NW., Room 10325. Interested parties

proposed information collection, along may submit comments on each

with an analysis of comments and

recommendations received, will be agreement to the Secretary. Federal Maritime Commission, Washington, DC

submitted to the Board for final 20573. within 10 days after the date of

approval under OMB delegated the Federal Register in which this notice

authority appears. The requirements for

DATE: Comments must be received comments are found in $ 572.603 of Title within fifteen working days of the date 46 of the Code of Federal Regulations. of publication in the Federal Register. Interested persons should consult this ADDRESS: Comments, which should refer section before communicating with the to the OMB Docket number (or Agency Commission regarding a pending

form number in the case of a new agreement.

information collection that has not yet Agreement No.: 225-010887,

been assigned an OMB number), should Title: General Agency Agreement be addressed to Mr. William W. Wiles. between Hanjin Container Lines. Ltd.

Secretary, Board of Governors of the and Sea-Land Service, Inc.

Federal Reserve System. 20th and C Parties: Hanjin Container Lines, Ltd. Streets, NW., Washington. DC 20551. or (Hanjin) and Sea-Land Service, Inc. delivered to room B-2223 between 8:45 (Sea-Land)

a.m. and 5:15 p.m. Comments received Synopsis: The proposed agreement

may be inspected in room B-1122 would permit Sea-Land to act on behalf between 8:45 a.m. and 5:15 p.m., except of Hanjin as its general agent at the Port

as provided in 201.6(a) of the Board's of Elizabeth, New Jersey for the carriage Rules Regarding Availability of of cargo between ports and points in the Information, 12 CFR 261.6(a). Far East, and the United States. The

A copy of the comments may also be parties have requested a shortened submitted to the OMB desk officer for review period.

the Board: Robert Neal. Office of Dated: February 18, 1986.

Information and Regulatory Affairs, By Order of the Federal Maritime

Office of Management and Budget. New Commission

Executive Office Building. Room 3208, John Robert Ewen,

Washington, DC 20503. Secretary

FOR FURTHER INFORMATION CONTACT: (FR Doc. 86-3845 Filed 2-20-86; 8:45 am) A copy of the proposed form the request NULING CODE 30-01

for clearance (SF 83), supporting
statement, instructions, and other

documents that will be placed into FEDERAL RESERVE SYSTEM

OMB's public docket files once

approved may be requested from the Agency Forms Under OMB Review agency clearance officer, whose name February 14, 1986

appears below: Federal Reserve Board

Clearance Officer, Martha Bethea, Background

Division of Research and Statistics,

Board of Governon of the Federal
On June 15, 1984, the Office of
Management and Budget (OMB)

Reserve System Washington, DC 20551 delegated to the Board of Governors of

(202-452-3822) the Federal Reserve System (Board) its

Proposal to approve under OMB approval authority under the Paperwork

delegated authority the extension with Reduction Act of 1980, as per 5 CFR

revisions of the fodowing report: 1320.9. "to approve of and assign OMB 1. Report tide: Survey of Terms of Bank control numben to collection of

Lending (STBL) information requests and requirements Agency form number: FR 2028A, 2028Aconducted or sponsored by the Board S, 2028B under conditions set forth in 5 CFR OMB Docket mumber: 72100-0061 1320.9.“ Board-approved collections of Frequency: Quarterly information will be incorporated into the Reporters: Commercial banks

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FERNANOST GERMAIN BOOK ISLAND CHAIRMAN
WANY. GONZALLZ TEXAS
FAANS ANNUNZIO ILLINOUS
PARREN MITCHELL MAKYLAND
WATER (AUNTROY DISTRICT OF COLUMBIA
STYPENNEA NOAT CAROLINA
CARROLL MUSSARD KENTUCKY
JOWA LALCI NEW YORK
STAN UNDIR NEW YORK
MARY ROSE QALAH O
SPUCE VINTO MINESOTA
DOUG BARNARD JA GEORGIA
ROBERT GARCIA NEW YORK
CHARUS SCHUMER NEW YORK
BAANEY FRANK MASSACHUSETTS
BUODY ROTUA LOUISLANA
RICHARD MAAR CALONIA
DRUCE A MORRISON CONNECTICUT
JIM COOPER TENNESSEE
MARCY CAPTUR Ouro
BEN ERDACHALADAMA
SANOA MVIN MINGAN
THOMAS A CAAPER DELAWARE
[STIBAN L TORRES CALORNIA
GIRADDHU WISCONSIN
BILA NELSON FLORIDA
PAUL CRANJOS PUNSTLVANIA
BART GORDON TINASSEE
THOMA VANTOM NEW YORK
JAIMESTEA, PUERTO RICO

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The Honorable James A. Baker III
Secretary of the Treasury
Washington, D. C. 20220

Dear Mr. Secretary:

As you know, the Committee on Banking, Finance and Urban
Affairs has legislative jurisdiction over the Bank Secrecy
Act (the Act).

On March 5, 1985, the Subcommittee on Financial
Institutions Supervision, Regulation and Insurance invited
then Assistant Secretary of the Treasury for Enforcement and
Operations John M. Walker, Jr., and James D. Harmon, Jr.,
Executive Director of the President's Commission on Organized
Crime, to brief the members of the Subcommittee on the state
of compliance with the Act, on the efforts the Department of
the Treasury was engaged in to enforce the Act, and on
suggestions for changes in the law to enhance the
Government's ability to carry out the Act.

The briefing was very helpful to the members of the Subcommittee. The briefing was foliowed in April by this Subcommittee's extensive investigations of the failure of the Bank of Boston and other Massachusetts banks to comply with the reporting requirements of the Act, as well as the institutional failure of the office of the Comptroller of the Currency relative to their responsibilities under this law.

The Subcommittee intends to continue its review of the Act, examine suggested legislative changes, further inquire about the state of compliance by financial institutions, and possibly to conduct oversight hearings on the enforcement efforts that your Department and the banking reguiators have undertaken since the Subcommittee's initiative last March.

In that regard, the Subcommittee would appreciate a comprehensive written report updating the activities and initiatives the Department anc, specifically, the Office of Enforcement and Operations, have undertaken to see that

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financial institutions are complying with all provisions of the Bank Secrecy Act. The Subcommittee would be most interested in hearing what additional manpower and other resources the Department has allocated to this effort.

The report should be submitted to the Subcommittee no later than February 10, 1986.

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The Secretary has asked me to respond to your letter dated January 14, 1986, which requested a written report concerning the activities of the office of Enforcement and Operations to promote the compliance of financial institutions with the provisions of the Bank Secrecy Act (the Act).

Since March 5, 1985, when former Assistant Secretary Walker testified before the Subcommittee, the Office of the Assistant Secretary (Enforcement and Operations) has substantially increased its efforts to improve compliance with the Act. There has been an increased commitment of staff resources in the office itself, as well as by the IRS. In addition, bank supervisors and other agencies that have compliance responsibilities have focused their attention on the Act. This increased commitment has permitted us to make regulatory changes, shift administrative responsibilities, draft procedural changes, and place greater emphasis on the identification of violations and the settlement of related civil liabilities.

In July, 1985, the Treasury Department established the Office of Financial Enforcement to assist in implementing and administering the Bank Secrecy Act regulations. The establishment of this office provided a focal point for Bank Secrecy Act related activity within the Treasury Department and acknowledged the increasing importance of the Act in Treasury's law enforcement efforts. The office has broad responsibilities for the compliance activities of all agencies that have been delegated responsibilities under the Act, including the Federal bank supervisory agencies, the Federal Home Loan Bank Board, the National Credit Union Administration, the Securities and Exchange Commission, the Internal Revenue Service, and the U.S. Customs Service.

The Office of Financial Enforcement is currently staffed with an Acting Director, a Bank Secrecy Act Compliance Specialist, an Acting Data Systems Specialist, and two secretarial staff members. This represents an increase in staffing for the Bank Secrecy Act area since

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March, 1985 of 150%. In addition, the Office of the General
Counsel has provided the equivalent of more than one full-
time staff attorney to provide assistance with drafting
regulations and legislative proposals, reviewing potential
civil penalty cases, and other legal work relating to the
Act.

The increased emphasis within the nffice of Enforcement and Operations has not been limited to the staff level. The former Assistant Secretary and the Deputy Assistant Secretary (Enforcement) have made the Bank Secrecy Act a high priority issue. During 1985, they made trips to Hong Kong, Panama, and Switzerland in order to meet with foreign officials and bankers to promote international cooperation in combatting the money laundering activities that often involve violations of the Act. Both officials accepted a number of invitations to speak to bankers and legal groups on money laundering and the enforcement of the Bank Secrecy Act.

As a result, in part, of the hearings which the Subcommittee on Financial Institutions Supervision, Regulation and Insurance held in April, 1985, concerning the Bank of Boston violations, an unexpectedly large number of major domestic banks have been identified as having violated the Bank Secrecy Act. The side effects of this unanticipated development included a very unusual increase in the number of currency transaction reports filed and the emergence of many violations that appear to warrant civil penalties. The number of filings increased from about 700,000 in 1984 to an estimated 1,700,000+ in 1985, which included a substantial number of reports of transactions that occurred in prior years. There have been approximately 136 banks identified as possible violators. If, however, the subsidiaries of holding companies are grouped by holding company, the number is much smaller, about 66.

While the Office of Financial Enforcement has been monitoring the processing and computerization of the huge increase in currency transaction reports, the IRS has felt the major impact of the increased workload. Although the IRS has been attempting to keep up with the increase by allocating additional resources, there currently is a backlog, which together with the normal work-in-process inventory amounts to more than 900,000 reports.

As of February 10, twelve banks or holding companies have entered into civil settlements with the Treasury Department and have paid almost $10 million. A list of these entities and copies of the twelve settlement agreements are enclosed.

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