Proposed Regulations Under USA PATRIOT Act – Comment Request
March 17, 2003
On Monday, February 24, 2003, the U.S. Treasury Department
issued an Advance Notice of Proposed Rule Making for Businesses Engaged in
Vehicle Sales. Please note that the term "vehicle" includes automobiles,
airplanes, and boats. This Advance Notice was issued expressly because Treasury
is seeking advice and assistance in assessing the benefits and burdens
associated with imposing the anti-money laundering program requirement on this
industry. Although Treasury is clearly contemplating regulations that will
require businesses engaged in vehicle sales to have formal Anti-Money Laundering
Programs, it may also be seriously considering limiting the application of new
rules to only a specific part of the industry, or even making the temporary
exemption for the industry permanent.
Treasury has requested and invited comment on the following
questions. The responses it receives will very likely determine the scope of
any new anti-money laundering and customer identification requirements that will
be imposed on the industry. The specific questions Treasury is asking are:
- What is the potential money laundering risk posed
by vehicle sellers? Do money laundering risks vary by (1) vehicle type (e.g.,
boat, airplane, automobile); (2) market (wholesale vs. retail); or (3) business
line (international sales, sales to governments)?
- Should vehicle sellers be exempt from coverage
under sections 352 and 326 of the PATRIOT Act [the Anti-Money Laundering Program
requirement and the Customer Identification requirement, respectively]?
- If vehicle sellers, or some subset of the
industry, should be subject to the Anti-Money Laundering Program requirement,
how should the Program be structured?
- How should a vehicle seller be defined? Should there be a minimum
threshold value in the definition? Should it include wholesale and
retail sellers? Should sellers of used vehicles be included?
- Do vehicle sellers maintain "accounts" for their
customers?
Treasury requires that comments be submitted in writing on
or before April 10, 2003. Because paper mail in the Washington, D.C., area may
be subject to delay, commenters are encouraged to e-mail comments. Comments may
be submitted by electronic mail to
regcomments@fincen.treas.gov with the caption in the body of the text,
"ATTN: ANPRM--Sections 352 and 326--Vehicle Seller Regulations.'' Comments may
be mailed to FinCEN, P.O. Box 39, Vienna, VA 22183, ATTN: ANPRM--Sections 352
and 326--Vehicle Seller Regulations. Comments should be sent by one method
only. For more information on this comment request, please see the Federal
Register notice online at:
http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/03-4173.htm.