Financial Crimes Enforcement Network; Proposed Renewal Without Change; Comment Request; Customer Identification Programs for Various Financial Institutions, 6845-6846 [E6-1744]

Agencies

• DEPARTMENT OF THE TREASURY
• Department of Treasury

[Federal Register Volume 71, Number 27 (Thursday, February 9, 2006)]
[Notices]
[Pages 6845-6846]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-1744]


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DEPARTMENT OF THE TREASURY


Financial Crimes Enforcement Network; Proposed Renewal Without 
Change; Comment Request; Customer Identification Programs for Various 
Financial Institutions

AGENCY: Financial Crimes Enforcement Network, Department of the 
Treasury.

ACTION: Notice and request for comments.

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SUMMARY: As part of our continuing effort to reduce paperwork and 
respondent burden, the Financial Crimes Enforcement Network invites 
comment on a proposed renewal, without change, to information 
collections found in regulations requiring futures commission 
merchants, introducing brokers, banks, savings associations, credit 
unions, certain non-federally regulated banks, mutual funds, and 
broker-dealers, to develop and implement customer identification 
programs reasonably designed to prevent those financial institutions 
from being used to facilitate money laundering and the financing of 
terrorist activities. This request for comment is being made pursuant 
to the Paperwork Reduction Act of 1995, Public Law 104-13, 44 U.S.C. 
3506(c)(2)(A).

DATES: Written comments are welcome and must be received on or before 
April 10, 2006.

ADDRESSES: Written comments should be submitted to: Office of Chief 
Counsel, Financial Crimes Enforcement Network, Department of the 
Treasury, P.O. Box 39, Vienna, VA 22183, Attention: Customer 
Identification Program Comments. Comments also may be submitted by 
electronic mail to the following Internet address: 
regcomments@fincen.gov, again with a caption, in the body of the text, 
``Attention: Customer Identification Program Comments.''
    Inspection of comments. Comments may be inspected, between 10 a.m. 
and 4 p.m., in the Financial Crimes Enforcement Network reading room in 
Washington, DC. Persons wishing to inspect the comments submitted must 
request an appointment by telephoning (202) 354-6400 (not a toll free 
number).

FOR FURTHER INFORMATION CONTACT: The Regulatory Policy and Programs 
Division at (800) 949-2732.

SUPPLEMENTARY INFORMATION: Abstract: The statute generally referred to 
as the ``Bank Secrecy Act,'' Titles I and II of Public Law 91-508, as 
amended, codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31 
U.S.C. 5311-5332, authorizes the Secretary of the Treasury, inter alia, 
to require financial institutions to keep records and file reports that 
are determined to have a high degree of usefulness in criminal, tax, 
and regulatory matters, or in the conduct of intelligence or counter-
intelligence activities, to protect against international terrorism, 
and to implement counter-money laundering programs and compliance 
procedures.\1\
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    \1\ Language expanding the scope of the Bank Secrecy Act to 
intelligence or counter-intelligence activities to protect against 
international terrorism was added by Section 358 of the Uniting and 
Strengthening America by Providing Appropriate Tools Required to 
Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, Pub. L. 
107-56.
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    Regulations implementing Title II of the Bank Secrecy Act appear at 
31 CFR part 103. The authority of the Secretary of the Treasury to 
administer the Bank Secrecy Act has been delegated to the Director of 
the Financial Crimes Enforcement Network. Regulations implementing 
section 5318(h)(1) are found at 31 CFR 103.121, 103.122, 103.123, and 
103.131. In general, the regulations require the referenced financial 
institutions to establish, document, and maintain customer 
identification programs as an aid in securing the U.S. financial 
system. Financial institutions defined in 31 U.S.C. 5312(a)(2) and 31 
CFR 103.11 are subject to the customer identification program 
requirement.
    1. Title: Customer identification programs for banks, savings 
associations, credit unions, and certain non-federally regulated banks. 
(31 CFR 103.121.)
    Office of Management and Budget Control Number: 1506-0026.
    Abstract: Banks, savings associations, credit unions, and certain 
non-federally regulated banks are required to develop and maintain 
customer identification programs. Section 326 of the USA Patriot Act of 
2001, (Pub. L. 107-56) provides that, at a minimum, financial 
institutions implement reasonable

[[Page 6846]]

procedures for: (1) Verifying the identity of any person seeking to 
open an account, to the extent reasonable and practicable; (2) 
maintaining records of the information used to verify the person's 
identity, including name, address, and other identifying information; 
and (3) determining whether the person appears on any lists of known or 
suspected terrorists or terrorist organizations provided to the 
financial institution by any government agency. In prescribing these 
regulations, the Secretary was directed to take into consideration the 
various types of accounts maintained by various types of financial 
institutions, the various methods of opening accounts, and the various 
types of identifying information available. (See FR 68, 25090, May 9, 
2003.)
    Current Action: There is no change to existing regulations.
    Type of Review: Extension of a currently approved information 
collection.
    Affected Public: Business and other for-profit institutions and 
non-profit institutions.
    Burden: Estimated Number of Respondents: 22,060.
    Estimated Average Annual Recordkeeping Burden per Respondent: 10 
hours.
    Estimated Average Annual Disclosure Burden per Respondent: 1 hour.
    Estimated Total Annual Respondent Burden: 242,660 hours.
    2. Title: Customer identification program for broker-dealers. (31 
CFR 103.122.)
    Office of Management and Budget Control Number: 1506-0034.
    Abstract: Broker-dealers are required to establish and maintain 
customer identification programs. (See FR 68, 25113, May 9, 2003.) A 
copy of the written program must be maintained for five years.
    Current Action: There is no change to existing regulations.
    Type of Review: Extension of a currently approved information 
collection.
    Affected Public: Business and other for-profit institutions.
    Burden: Estimated Number of Respondents: 5,448.
    Estimated Average Annual Burden Per Respondent: The estimated 
average burden associated with the notice requirement in this proposed 
rule is two minutes per respondent.
    Estimated Number of Hours: 630,896.
    3. Title: Customer identification programs for futures commission 
merchants and introducing brokers. (31 CFR 103.123.)
    Office of Management and Budget Control Number: 1506-0022.
    Abstract: Futures commission merchants and introducing brokers are 
required to develop and maintain customer identification programs. (See 
FR 68, 25149, May 9, 2003.) A copy of the written program must be 
maintained for five years.
    Current Action: This requirement was renewed effective November 30, 
2005; it is being renewed again so that all the customer identification 
program requirements for various financial institutions may be 
considered together concurrently.
    Type of Review: Extension of a currently approved information 
collection.
    Affected Public: Business and other for-profit institutions.
    Burden: Estimated Number of Respondents: 1,856.
    Estimated Average Annual Burden Per Respondent: The estimated 
average burden associated with the notice requirement in this proposed 
rule is two minutes per espondent.
    Estimated Number of Hours: 20,471.
    4. Title: Customer identification programs for mutual funds. (31 
CFR 103.131.)
    Office of Management and Budget Control Number: 1505-0033.
    Abstract: Mutual funds are required to establish and maintain 
customer identification programs. (See FR 68, 25131, May 9, 2003.) A 
copy of the written program must be maintained for five years.
    Current Action: There is no change to existing regulations.
    Type of Review: Extension of a currently approved information 
collection.
    Affected Public: Business and other for-profit institutions.
    Burden: Estimated Number of Respondents: 2,296.
    Estimated Average Annual Burden Per Respondent: The estimated 
average burden associated with the notice requirement in this proposed 
rule is 2 minutes per respondent.
    Estimated Number of Hours: 266,700.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget. Records 
required to be retained under the Bank Secrecy Act must be retained for 
five years. Generally, information collected pursuant to the Bank 
Secrecy Act is confidential but may be shared as provided by law with 
regulatory and law enforcement authorities.

Request for Comments

    Comments submitted in response to this notice will be summarized 
and/or included in the request for Office of Management and Budget 
approval. All comments will become a matter of public record. Comments 
are invited on: (a) Whether the collection of information is necessary 
for the proper performance of the functions of the agency, including 
whether the information shall have practical utility; (b) the accuracy 
of the agency's estimate of the burden of the collection of 
information; (c) ways to enhance the quality, utility, and clarity of 
the information to be collected: (d) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques or other forms of information 
technology; and (e) estimates of capital or start-up costs and costs of 
operation, maintenance and purchase of services to provide information.

    Dated: February 3, 2006.
William D. Langford, Jr.,
Associate Director, Regulatory Policy and Programs Division, Financial 
Crimes Enforcement Network.
 [FR Doc. E6-1744 Filed 2-8-06; 8:45 am]
BILLING CODE 4810-02-P