PRACTICAL SOLUTIONS
Federal Register
–The daily journal of
the U.S. government
L
adies and gentlemen allow me to
introduce you to the Federal Register.
Already aware of its amazing
powers? Then this article might not be for
you. If, however, you have read the same
regulation again and again but still wrestle
with its meaning, or need to truly understand
the thought process behind a particular rule,
then the Register is your place.
First let me provide a little background. A bill,
such as the Bank Secrecy Act (BSA), after the
legislative and executive process, becomes a
law or act. A law/act can be self-executing,
meaning no regulations are required prior to
publication, or in the contrary a law/act can
require the publication of regulations.
Regulations explain how the law will be
applied or interpreted. Before publishing regulations however, the responsible agency or
responsible department will issue proposed
rules. These proposals are commented on by
members of the industry impacted by the Act.
The agency will review the comments, discuss
reasons for incorporating or rejecting said
comments and eventually publish final regulations. This give and take between the industry
and the regulatory agency is captured in the
Federal Registry and it is this ‘give and take’
that can be valuable.
Below is an example of one benefit of the
Federal Register.
Section 5318 (i) of the BSA requires due
diligence for United States Private Banking
and Correspondent Bank Accounts
Involving Foreign Persons. Going somewhat further 5318(i)(3) states that … at a
minimum, … the financial institution
takes reasonable steps (A) to ascertain
th