Proposed Amendments to FRAP 29 (Amicus Curiae Briefs)
SIFMA provided comments to the Judicial Conference Committee on Rules of Practice and Procedure’s proposed amendments to Federal Rule of…
July 1, 2024
Via Electronic Mail
Policy Division
Financial Crimes Enforcement Network
P.O. Box 39
Vienna, VA 22183
Re: Request for Comments Regarding Reports by Financial Institutions of Suspicious Transactions and FinCEN Form 111-Suspicious Activity Report (OMB control numbers 1506–0001, 1506–0006, 1506–0015, 1506–0019, 1506–0029, 1506–0061, and 1506–0065).
To Whom It May Concern:
The Bank Policy Institute, the Financial Technology Association, the Independent Community Bankers of America, the American Gaming Association, and the Securities Industry and Financial Markets Association (collectively, the Associations)1 welcome the opportunity to respond to FinCEN’s notice under the Paperwork Reduction Act for comment on its proposal to renew without change the suspicious activity report (FinCEN Form 111) form used by financial institutions to report suspicious transactions to FinCEN.2 Collectively, we represent a broad universe of SAR filers of various sizes and business models.
Based on input from our respective members, and our experience, we believe that FinCEN’s burden estimate of 1.98 hours per SAR substantially underestimates the amount of time required to thoroughly undergo the reviews and processes required under applicable requirements to file a SAR. An institution’s process is not just the mechanical process of generating, submitting, and storing the SAR. This process includes the time dedicated to investigating the underlying reason for filing a SAR, obtaining and reviewing supporting documentation, conducting a second review, obtaining necessary approvals,3 documenting the investigation and decision process, and overseeing the process of filing a SAR. These steps are integral to the filing of a SAR and cannot be completed if any step in the process is excluded.4
The burden associated with SAR filing requirements is extensive and any official estimate should accurately reflect this burden with as much precision as possible.5 This includes taking into account each of the steps that financial institutions must undertake to comply with SAR requirements.
We are appreciative of FinCEN’s commitment “to conduct, in the future, additional assessments of the PRA burden associated with BSA requirements, including SAR requirements.”6 But we also express concern that prior feedback has not been taken into consideration and there has not been any reassessment of the burden estimate since 2020 and no firm timelines of which we are aware to carry out the contemplated reassessment. While only one of many FinCEN priorities, we believe that an accurate burden estimate should be undertaken expeditiously, as a more accurate estimate will facilitate a more efficient use of the limited resources of both the government and SAR filers, and help financial institutions allocate the appropriate resources to adequately fulfil the regulatory requirement.
The Associations would welcome the opportunity to elaborate upon the viewpoint set forth in this letter and to discuss how we could assist FinCEN staff in its plans to conduct additional research necessary to update its burden estimates.
If you have any questions about the matters discussed in this letter, please contact the undersigned at [email protected], [email protected], [email protected], [email protected], or [email protected].
***
Respectfully submitted,
/s/
Gregg Rozansky
Senior Vice President, Senior Associate General Counsel, Regulatory Affairs
Bank Policy Institute
/s/
Angelena Bradfield
Head of Policy
Financial Technology Association
/s/
Rhonda R. Whitley
Senior Vice President, Senior Regulatory Counsel, Government Relations
Independent Community Bankers of America
/s/
Chris Cylke
Senior Vice President, Government Relations
American Gaming Association
/s/
Bernard V. Canepa
Managing Director and Associate General Counsel
Securities Industry and Financial Markets Association
Appendix A
The Bank Policy Institute
The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks, and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud, and other information security issues.
The Financial Technology Association
The Financial Technology Association (FTA) is a trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.
The Independent Community Bankers of America
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation. As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.
The American Gaming Association
As the national trade group representing the U.S. casino industry, the American Gaming Association (AGA) fosters a policy and business environment where legal, regulated gaming thrives. The AGA’s diverse membership of commercial and tribal casino operators, sports betting and iGaming companies, gaming suppliers, and more lead the $329 billion industry and support 1.8 million jobs across the country.
The Securities Industry and Financial Markets Association
SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and
Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.