URGENT/ACTION REQUESTED
[14579]
March 27, 2002
TO: MONEY LAUNDERING RULES WORKING GROUP No. 17-02
RE: DRAFT COMMENT LETTER ON FINCEN’S PROPOSED INFORMATION SHARING
RULE
As you know, the Treasury Department’s Financial Crimes Enforcement Network
(FinCEN) proposed rules earlier this month relating to the sharing of information for the
purpose of combating terrorism and money laundering.1 Attached for your review is a draft
comment letter on the proposal.
The proposed rule has two distinct sections. Section 103.100 governs information
requests by federal law enforcement agencies regarding individuals, entities, and organizations
engaged in or reasonably suspected of engaging in terrorist acts or money laundering activities.
With respect to this Section, the draft letter expresses concern that the proposed rule lacks
appropriate constraints on the government’s authority to request information, and notes that
compliance with information requests pursuant to the proposed rule could become costly and
burdensome in the absence of such constraints. The letter therefore recommends that this
Section be amended to include reasonable parameters on the information requests by federal
law enforcement agencies.
The second main part of the proposed rule is Section 103.110, which governs exchanges
of information between or among financial institutions and would permit financial institutions,
upon providing notice to Treasury, to share information with one another in order to better
identify and report to the federal government concerning activities that may involve money
laundering or terrorist activities. With regard to this Section, the draft letter recommends that
the definition of “financial institution” be broadened to include investment companies and their
agents.
1 See Memorandum to Money Laundering Rules Working Group No. 11-02, dated March 5, 2002.
2
The comment letter must be submitted by Wednesday, April 3rd. If you have
comments on this draft letter, please provide them to me by phone at 202-371-5430, fax at 202-
326-5841, or e-mail at rcg@ici.org no later than the close of business on Monday, April 1st.
Robert C. Grohowski
Associate Counsel
Attachment (in .pdf format)