Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reports of Foreign Financial Accounts Regulations and FinCEN Report 114, Report of Foreign Bank and Financial Accounts, 73129-73131 [2020-25216]
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73129
Federal Register / Vol. 85, No. 221 / Monday, November 16, 2020 / Notices
were not proposed in the notice of
proposed rulemaking (NPRM) [October
24, 2019; 84 FR 56964], PHMSA
published a 60-day notice [85 FR 46220]
and is subsequently publishing this 30day notice to provide an opportunity for
public comment on the estimated
increase in burden. The estimated
increase in burden hours is reflected in
‘‘Section VI.G. Paperwork Reduction
Act’’ of the preamble to the final rule,
with a minor adjustment due to a
rounding error.
As mentioned, on July 31, 2020,
PHMSA published a 60-day notice to
request comments on the revision to
Increase in
total number
of railroads
Increase in
total number
of routes
Increase in
total burden
hours
Salary cost
per hour
Increase in
total salary
cost
Class I Railroads ......................................
Class II Railroads .....................................
Class III Railroads ....................................
0
0
0
2
1
1
80
80
40
160
80
40
$60.83
60.83
60.83
$9,733
4,866
2,433
Total Increase in Primary Route
Analysis .........................................
........................
4
........................
280
........................
17,032
Increase in
total number
of railroads
Increase in
total number
of routes
Burden hours
per route
Increase in
total burden
hours
Salary cost
per hour
Increase in
total salary
cost
Class I Railroads ......................................
Class II Railroads .....................................
Class III Railroads ....................................
0
0
0
2
1
1
120
120
40
240
120
40
$60.83
60.83
60.83
$14,599
7,300
2,433
Total Increase in Alternate Route
Analysis .........................................
........................
4
........................
400
........................
24,332
Annual Increase in Number of
Respondents: 0.
Annual Increase in Number of
Responses: 8.
Annual Increase in Burden Hours:
680.
Annual Increase in Salary Costs:
$41,364.
Issued in Washington, DC on November 9,
2020, under authority delegated in 49 CFR
1.97.
William A. Quade,
Deputy Associate Administrator of Hazardous
Materials Safety, Pipeline and Hazardous
Materials Safety Administration.
[FR Doc. 2020–25168 Filed 11–13–20; 8:45 am]
BILLING CODE 4910–60–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request; Renewal Without
Change of Reports of Foreign
Financial Accounts Regulations and
FinCEN Report 114, Report of Foreign
Bank and Financial Accounts
Financial Crimes Enforcement
Network (FinCEN), Treasury.
ACTION: Notice and request for
comments.
AGENCY:
jbell on DSKJLSW7X2PROD with NOTICES
Burden hours
per route
OMB Control Number 2137–0612.
PHMSA received four sets of comments
to the 60-day notice. None of these
comments were specifically related to
the change in the information collection
burden. Therefore, PHMSA is revising
OMB Control Number 2137–0612 as
follows:
As part of its continuing effort
to reduce paperwork and respondent
burden, FinCEN invites comments on
SUMMARY:
VerDate Sep<11>2014
20:13 Nov 13, 2020
Jkt 253001
the proposed renewal, without change,
of a currently approved information
collection found in existing Bank
Secrecy Act regulations. Specifically,
FinCEN invites comment on a renewal,
without change, of existing information
collection requirements concerning
reports of foreign financial accounts and
FinCEN Report 114, Report of Foreign
Bank and Financial Accounts (FBAR).
This request for comments is made
pursuant to the Paperwork Reduction
Act of 1995.
DATES: Written comments are welcome,
and must be received on or before
January 15, 2021.
ADDRESSES: Comments may be
submitted by any of the following
methods:
• Federal E-rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Refer to Docket Number FINCEN–2020–
0013 and the specific Office of
Management and Budget (OMB) control
number 1506–0009.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
Number FINCEN–2020–0013 and OMB
control number 1506–0009.
Please submit comments by one
method only. Comments will also be
incorporated into FinCEN’s review of
existing regulations, as provided by
Treasury’s 2011 Plan for Retrospective
Analysis of Existing Rules. All
comments submitted in response to this
PO 00000
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Fmt 4703
Sfmt 4703
notice will become a matter of public
record. Therefore, you should submit
only information that you wish to make
publicly available.
The
FinCEN Regulatory Support Section at
1–800–767–2825 or electronically at
frc@fincen.gov.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Provisions
The legislative framework generally
referred to as the Bank Secrecy Act
(BSA) consists of the Currency and
Financial Transactions Reporting Act of
1970, as amended by the Uniting and
Strengthening America by Providing
Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001
(USA PATRIOT Act) (Pub. L. 107–56)
and other legislation. The BSA is
codified at 12 U.S.C. 1829b, 12 U.S.C.
1951–1959, 31 U.S.C. 5311–5314 and
5316–5332, and notes thereto, with
implementing regulations at 31 CFR
Chapter X.
The BSA 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 anti-money laundering
E:\FR\FM\16NON1.SGM
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73130
Federal Register / Vol. 85, No. 221 / Monday, November 16, 2020 / Notices
jbell on DSKJLSW7X2PROD with NOTICES
programs and compliance procedures.1
Regulations implementing the BSA
appear at 31 CFR Chapter X. The
authority of the Secretary to administer
the BSA has been delegated to the
Director of FinCEN.2
Under 31 U.S.C. 5314, the Secretary is
authorized to require any ‘‘resident or
citizen of the United States or a person
in, and doing business in, the United
States, to . . . keep records and file
reports, when the resident, citizen, or
person makes a transaction or maintains
a relation for any person with a foreign
financial agency.’’ The term ‘‘foreign
financial agency’’ encompasses the
activities found in the statutory
definition of ‘‘financial agency,’’ 3
notably, ‘‘a person acting for a person as
a financial institution, bailee, depository
trustee, or agent, or acting in a similar
way related to money, credit, securities,
gold, or a transaction in money, credit,
securities, or gold.’’ 4 The Secretary is
also authorized to prescribe exemptions
to the reporting requirement and to
prescribe other matters the Secretary
considers necessary to carry out
31 U.S.C. 5314.
The regulations implementing
31 U.S.C. 5314 appear at 31 CFR
1010.350, 1010.306, and 1010.420.
Section 1010.350 generally requires
each U.S. person having a financial
interest in, or signature or other
authority over, a bank, securities, or
other financial account in a foreign
country to report such relationship to
the Commissioner of Internal Revenue
for each year such relationship exists,
and to provide and report such
information specified in a reporting
form prescribed under 31 U.S.C. 5314.
The FinCEN Report 114, Report of
Foreign Bank and Financial Accounts
(FBAR), is used to file the information
required by this section. The FBAR
must be filed electronically with
FinCEN.5 31 CFR 1010.306(c) requires
the FBAR to be filed for foreign
financial accounts exceeding $10,000
maintained during the previous
calendar year. No FBAR is required to
be filed if the aggregate account value of
1 Section 358 of the USA PATRIOT Act added
language expanding the scope of the BSA to
intelligence or counter-intelligence activities to
protect against international terrorism.
2 Treasury Order 180–01 (re-affirmed Jan. 14,
2020).
3 31 U.S.C. 5312(b)(2).
4 See 31 U.S.C. 5312(a)(1), which exempts from
the definition of financial agency a person acting for
a country, a monetary or financial authority acting
as a monetary or financial authority, or an
international financial institution of which the
United States Government is a member.
5 Formerly Form TD–F 90–22.1. FinCEN Report
114 can be completed by accessing FinCEN’s BSA
E-Filing System website at https://
bsaefiling.fincen.treas.gov/main.html.
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20:13 Nov 13, 2020
Jkt 253001
foreign financial accounts maintained
during the previous calendar year is
below $10,000.
The FBAR must be filed on or before
April 15 of each calendar year for
accounts maintained during the
previous calendar year.6
31 CFR 1010.420 outlines the
recordkeeping requirements associated
with foreign financial accounts required
to be reported under section 1010.350.
Specifically, filers must retain records of
such accounts for a period of five years
and make the records available for
inspection as authorized by law.7
II. Paperwork Reduction Act of 1995
(PRA) 8
Title: Reports of foreign financial
accounts (31 CFR 1010.350), records to
be made and retained by persons having
financial interests in foreign financial
accounts (31 CFR 1010.420), filing of
reports (31 CFR 1010.306(c)), and
FinCEN Report 114—Report of Foreign
Bank and Financial Accounts (FBAR).
OMB Control Number: 1506–0009.
Report Number: FinCEN Report 114—
FBAR.
Abstract: FinCEN is issuing this
notice to renew the OMB control
number for the FBAR regulations and
report.
Affected Public: Individuals,
businesses or other for-profit
institutions, and non-profit institutions
who qualify as U.S. persons.
Type of Review:
• Renewal without change of a
currently approved information
collection.
Frequency: Annual.
Estimated Number of Respondents:
1,273,579 FBAR filers.9
Estimated Reporting and
Recordkeeping Burden:
The estimated average burden
associated with the FBAR reporting and
6 In accordance with section 2006(b)(11) of Public
Law 114–41 the filing due date for the report is
April 15 effective as of the 2016 reporting year. The
statute permits the Secretary to extend the filing
due date for up to 6 months. Filers who submit
complete and accurate reports to FinCEN no later
than October 15 of the year the report is due will
be deemed to have timely filed. FinCEN issued a
statement on its website in 2016 noting the FBAR
date change as a result of the statutory change.
FinCEN intends to revise the FBAR regulations at
31 CFR 1010.306(c) to reflect the statutory date
change in the near term.
7 The penalties provided in the BSA apply to both
the FBAR reporting and recordkeeping
requirements.
8 Public Law 104–13, 44 U.S.C. 3506(c)(2)(A).
9 The total number of FBARs reported for foreign
financial accounts held during calendar year 2018,
and reported in 2019 is 1,273,579. Each U.S.
individual or entity that maintains foreign financial
accounts reportable on the FBAR can report all of
their foreign financial accounts on one FBAR
report.
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Frm 00114
Fmt 4703
Sfmt 4703
recordkeeping requirements will vary
depending on the number of reportable
foreign financial accounts and the
applicability of special rules provided
in the regulations which provide some
relief from the full scope of the
reporting obligations.10
The information required to be
reported on the FBAR is basic
information U.S. persons will have
received on account statements from the
foreign financial institutions where the
accounts are opened and maintained.
Those statements will provide a U.S.
person with the information needed to
complete and file the FBAR. No special
accounting or legal skills are necessary
to transfer the basic information
required to be reported, such as the
name of the foreign financial institution,
the type of account, and the account
number, to the FBAR.
The special rules located at 31 CFR
1010.350(g) provide a variety of relief to
FBAR filers by (1) limiting the
information reported in the FBAR to the
number of accounts and certain other
basic identifying information where the
filer has financial interest in or
signature authority over 25 more
reportable accounts; (2) allowing for
entities to file consolidated FBARs on
their own behalf and on behalf of
entities for which they have a direct or
indirect ownership interest over 50%;
and (3) exempting reporting of foreign
financial interest in accounts involving
certain trust and retirement plans.
However, filers reporting financial
interest in, or signature authority over,
25 or more foreign financial accounts,
are required to maintain a record of the
detailed account information on each of
their foreign financial accounts,
including the account number, the name
of the foreign financial institution that
holds the account, the address of the
foreign financial institution, the
maximum value of the account during
the calendar year, and the type of
account.11
For the reasons noted above, FinCEN
estimates that the approximate FBAR
reporting burden will vary depending
on the number of reportable foreign
financial accounts, and will range from
approximately 20 minutes to 90
minutes. As a result, FinCEN estimates
the average reporting burden per FBAR
filer will be 55 minutes.
Past estimates of the FBAR
recordkeeping requirement took into
10 31
CFR 1010.350(g).
availing themselves of special rules
under 31 CFR 1010.350(g)(1) and (2) involving 25
or more reportable foreign financial accounts are
required to maintain and provide detailed account
information for each foreign financial account, if
requested by the Secretary or his delegate.
11 Filers
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Federal Register / Vol. 85, No. 221 / Monday, November 16, 2020 / Notices
jbell on DSKJLSW7X2PROD with NOTICES
account time to store paper copies of the
FBAR form, and estimated that the
approximate recordkeeping burden was
30 minutes. Since 2011, FBARs have
been filed electronically. Electronically
filing the FBAR allows a filer to save an
electronic copy of the report, which
satisfies the recordkeeping part of the
requirement. FinCEN estimates it would
take a filer five minutes to save an
electronic copy of the FBAR.12 In
addition to maintaining a copy of the
form, those filers who take advantage of
the special rules provisions involving 25
or more accounts are required to
maintain detailed information on those
accounts. However, FinCEN believes
that in most cases, such information
would be maintained by filers in the
ordinary course of business in the form
of periodic account statements and
other business records which would be
maintained mostly electronically. In
addition, there is no requirement in the
FBAR regulations to maintain such
information in any particular format.
For these reasons, FinCEN estimates
that the approximate FBAR
recordkeeping burden will be
approximately five minutes.
FinCEN estimates the total annual
reporting and recordkeeping burden per
FBAR filer will be one hour (55 minutes
for FBAR reporting, and five minutes for
FBAR recordkeeping).
Estimated Total Annual Reporting
and Recordkeeping Burden: 1,273,579
hours (1,273,579 FBAR filers multiplied
by one hour).
Estimated Total Annual Reporting
and Recordkeeping Cost: Of the
1,273,579 FBARs filed for foreign
financial accounts held during calendar
year 2018, 1,209,287 were filed by
individuals, and 64,292 were filed by
entities. FinCEN cannot quantify the
cost to individuals who file FBARs on
their own behalf. For entities, FinCEN
estimates the following annual burden
cost: 64,292 hours × $48.30 13 per hour
= $3,105,303.60.
12 Although filings have been electronic since
2011, this is the first renewal notice in which
FinCEN has reconsidered the burden of storing
reports electronically.
13 The U.S. Bureau of Labor Statistics,
Occupational Employment Statistics-National, May
2019, available at https://www.bls.gov/oes/
tables.htm. The most recent data from the BLS
corresponds to May 2019. For the benefits
component of total compensation, see U.S. Bureau
of Labor Statistics, Employer’s Cost per Employee
Compensation as of December 2019, available at
https://www.bls.gov/news.release/ecec.nr0.htm. The
ratio between benefits and wages for financial
activities is $15.95 (hourly benefits)/$32.05 (hourly
wages) = 0.50. The benefit factor is 1 plus the
benefit/wages ratio, or 1.50. Multiplying each
hourly wage by the benefit factor produces the
fully-loaded hourly wage per position. The May
2019 Bureau of Labor Statistics average hourly wage
VerDate Sep<11>2014
20:13 Nov 13, 2020
Jkt 253001
An Agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
Records required to be retained under
the BSA must be retained for five years.
General Request for Comments:
Comments submitted in response to
this notice will be summarized and/or
included in the request for OMB
approval. All comments will become a
matter of public record.
Comments are invited on: (i) 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; (ii) the accuracy of the
agency’s estimate of the burden of the
collection of information; (iii) ways to
enhance the quality, utility, and clarity
of the information to be collected; (iv)
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 (v) estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Michael Mosier,
Deputy Director, Financial Crimes
Enforcement Network.
[FR Doc. 2020–25216 Filed 11–13–20; 8:45 am]
BILLING CODE 4810–02–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Notice of OFAC Sanctions Actions
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing the names
of one or more persons that have been
placed on OFAC’s Specially Designated
Nationals and Blocked Persons List
based on OFAC’s determination that one
or more applicable legal criteria were
satisfied. All property and interests in
property subject to U.S. jurisdiction of
these persons are blocked, and U.S.
persons are generally prohibited from
engaging in transactions with them.
DATES: See SUPPLEMENTARY INFORMATION
section for applicable date(s).
FOR FURTHER INFORMATION CONTACT:
OFAC: Associate Director for Global
SUMMARY:
for ‘‘13–1041 Compliance Officer’’ is $32.20.
($32.20 × 1.50 = $48.30).
PO 00000
Frm 00115
Fmt 4703
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73131
Targeting, tel.: 202–622–2420; Assistant
Director for Sanctions Compliance &
Evaluation, tel.: 202–622–2490;
Assistant Director for Licensing, tel.:
202–622–2480; or Assistant Director for
Regulatory Affairs, tel.: 202–622–4855.
SUPPLEMENTARY INFORMATION:
Electronic Availability
The Specially Designated Nationals
and Blocked Persons List and additional
information concerning OFAC sanctions
programs are available on OFAC’s
website (https://www.treasury.gov/ofac).
Notice of OFAC Actions
On November 10, 2020, OFAC
determined that the property and
interests in property subject to U.S.
jurisdiction of the following persons are
blocked under the relevant sanctions
authorities listed below.
Individuals
1. BANIHASHEMI, Mohammad (a.k.a.
BANIHASHEMI CHAHAROM, Seyed
Mohammad), No. 3, Mehr Alley, Kamran
Alley, Bastan Alley, Firuzbakhsh Ave.,
Aghdasieh, Tehran 1957759678, Iran; DOB
26 Mar 1959; POB Mashhad, Iran; nationality
Iran; Additional Sanctions Information—
Subject to Secondary Sanctions; Gender
Male; Passport B32563329 (Iran) expires 17
Dec 2019; National ID No. 0940486229 (Iran)
(individual) [NPWMD] [IFSR] (Linked To:
DES INTERNATIONAL CO., LTD.).
Designated pursuant to section 1(a)(iv) of
Executive Order 13382 of June 28, 2005, 70
FR 38567, 3 CFR, 2006 Comp., p. 170 (E.O.
13382) for acting or purporting to act for or
on behalf of, directly or indirectly, DES
INTERNATIONAL CO., LTD., a person
whose property and interests in property are
blocked pursuant to E.O. 13382.
2. HUANG, Chin-Hua (a.k.a. HUANG,
Jinee), Taiwan; DOB 08 Apr 1978; POB
Taiwan; citizen Taiwan; Additional
Sanctions Information—Subject to Secondary
Sanctions; Gender Female; Passport
302114600 (Taiwan) expires 07 Oct 2020;
Identification Number H222234242 (Taiwan)
(individual) [NPWMD] [IFSR] (Linked To:
DES INTERNATIONAL CO., LTD.).
Designated pursuant to section 1(a)(iii) of
E.O. 13382 for having provided, or attempted
to provide, financial, material, technological,
or other support for, or goods or services in
support of, DES INTERNATIONAL CO.,
LTD., a person whose property and interests
in property are blocked pursuant to E.O.
13382.
3. SOLTANMOHAMMADI, Mohammad
(a.k.a. SELTAN MOHAMMEDI, Mohammed;
a.k.a. SULTAN MOHMADI, Mohhamad;
a.k.a. WANG, Chung Lang; a.k.a. WANG,
Chung Lung; a.k.a. WANG, Zhong-Lang),
Apartment #1504, Fairooz Tower, Dubai
Marina, Dubai, United Arab Emirates; 216
Ocean Drive, Sentosa Cove, Singapore
098622, Singapore; DOB 04 Nov 1960; POB
Hamedan, Iran; nationality Iran; alt.
nationality United Kingdom; Additional
Sanctions Information—Subject to Secondary
Sanctions; Gender Male; Passport 518015439
E:\FR\FM\16NON1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 221 (Monday, November 16, 2020)]
[Notices]
[Pages 73129-73131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25216]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Reports of Foreign Financial
Accounts Regulations and FinCEN Report 114, Report of Foreign Bank and
Financial Accounts
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: As part of its continuing effort to reduce paperwork and
respondent burden, FinCEN invites comments on the proposed renewal,
without change, of a currently approved information collection found in
existing Bank Secrecy Act regulations. Specifically, FinCEN invites
comment on a renewal, without change, of existing information
collection requirements concerning reports of foreign financial
accounts and FinCEN Report 114, Report of Foreign Bank and Financial
Accounts (FBAR). This request for comments is made pursuant to the
Paperwork Reduction Act of 1995.
DATES: Written comments are welcome, and must be received on or before
January 15, 2021.
ADDRESSES: Comments may be submitted by any of the following methods:
Federal E-rulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments. Refer to Docket Number
FINCEN-2020-0013 and the specific Office of Management and Budget (OMB)
control number 1506-0009.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2020-0013 and OMB control number 1506-0009.
Please submit comments by one method only. Comments will also be
incorporated into FinCEN's review of existing regulations, as provided
by Treasury's 2011 Plan for Retrospective Analysis of Existing Rules.
All comments submitted in response to this notice will become a matter
of public record. Therefore, you should submit only information that
you wish to make publicly available.
FOR FURTHER INFORMATION CONTACT: The FinCEN Regulatory Support Section
at 1-800-767-2825 or electronically at [email protected].
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Provisions
The legislative framework generally referred to as the Bank Secrecy
Act (BSA) consists of the Currency and Financial Transactions Reporting
Act of 1970, as amended by the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001 (USA PATRIOT Act) (Pub. L. 107-56) and other
legislation. The BSA is codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-
1959, 31 U.S.C. 5311-5314 and 5316-5332, and notes thereto, with
implementing regulations at 31 CFR Chapter X.
The BSA 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 anti-money laundering
[[Page 73130]]
programs and compliance procedures.\1\ Regulations implementing the BSA
appear at 31 CFR Chapter X. The authority of the Secretary to
administer the BSA has been delegated to the Director of FinCEN.\2\
---------------------------------------------------------------------------
\1\ Section 358 of the USA PATRIOT Act added language expanding
the scope of the BSA to intelligence or counter-intelligence
activities to protect against international terrorism.
\2\ Treasury Order 180-01 (re-affirmed Jan. 14, 2020).
---------------------------------------------------------------------------
Under 31 U.S.C. 5314, the Secretary is authorized to require any
``resident or citizen of the United States or a person in, and doing
business in, the United States, to . . . keep records and file reports,
when the resident, citizen, or person makes a transaction or maintains
a relation for any person with a foreign financial agency.'' The term
``foreign financial agency'' encompasses the activities found in the
statutory definition of ``financial agency,'' \3\ notably, ``a person
acting for a person as a financial institution, bailee, depository
trustee, or agent, or acting in a similar way related to money, credit,
securities, gold, or a transaction in money, credit, securities, or
gold.'' \4\ The Secretary is also authorized to prescribe exemptions to
the reporting requirement and to prescribe other matters the Secretary
considers necessary to carry out 31 U.S.C. 5314.
---------------------------------------------------------------------------
\3\ 31 U.S.C. 5312(b)(2).
\4\ See 31 U.S.C. 5312(a)(1), which exempts from the definition
of financial agency a person acting for a country, a monetary or
financial authority acting as a monetary or financial authority, or
an international financial institution of which the United States
Government is a member.
---------------------------------------------------------------------------
The regulations implementing 31 U.S.C. 5314 appear at 31 CFR
1010.350, 1010.306, and 1010.420. Section 1010.350 generally requires
each U.S. person having a financial interest in, or signature or other
authority over, a bank, securities, or other financial account in a
foreign country to report such relationship to the Commissioner of
Internal Revenue for each year such relationship exists, and to provide
and report such information specified in a reporting form prescribed
under 31 U.S.C. 5314. The FinCEN Report 114, Report of Foreign Bank and
Financial Accounts (FBAR), is used to file the information required by
this section. The FBAR must be filed electronically with FinCEN.\5\ 31
CFR 1010.306(c) requires the FBAR to be filed for foreign financial
accounts exceeding $10,000 maintained during the previous calendar
year. No FBAR is required to be filed if the aggregate account value of
foreign financial accounts maintained during the previous calendar year
is below $10,000.
---------------------------------------------------------------------------
\5\ Formerly Form TD-F 90-22.1. FinCEN Report 114 can be
completed by accessing FinCEN's BSA E-Filing System website at
https://bsaefiling.fincen.treas.gov/main.html.
---------------------------------------------------------------------------
The FBAR must be filed on or before April 15 of each calendar year
for accounts maintained during the previous calendar year.\6\
---------------------------------------------------------------------------
\6\ In accordance with section 2006(b)(11) of Public Law 114-41
the filing due date for the report is April 15 effective as of the
2016 reporting year. The statute permits the Secretary to extend the
filing due date for up to 6 months. Filers who submit complete and
accurate reports to FinCEN no later than October 15 of the year the
report is due will be deemed to have timely filed. FinCEN issued a
statement on its website in 2016 noting the FBAR date change as a
result of the statutory change. FinCEN intends to revise the FBAR
regulations at 31 CFR 1010.306(c) to reflect the statutory date
change in the near term.
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31 CFR 1010.420 outlines the recordkeeping requirements associated
with foreign financial accounts required to be reported under section
1010.350. Specifically, filers must retain records of such accounts for
a period of five years and make the records available for inspection as
authorized by law.\7\
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\7\ The penalties provided in the BSA apply to both the FBAR
reporting and recordkeeping requirements.
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II. Paperwork Reduction Act of 1995 (PRA) 8
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\8\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Reports of foreign financial accounts (31 CFR 1010.350),
records to be made and retained by persons having financial interests
in foreign financial accounts (31 CFR 1010.420), filing of reports (31
CFR 1010.306(c)), and FinCEN Report 114--Report of Foreign Bank and
Financial Accounts (FBAR).
OMB Control Number: 1506-0009.
Report Number: FinCEN Report 114--FBAR.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the FBAR regulations and report.
Affected Public: Individuals, businesses or other for-profit
institutions, and non-profit institutions who qualify as U.S. persons.
Type of Review:
Renewal without change of a currently approved information
collection.
Frequency: Annual.
Estimated Number of Respondents: 1,273,579 FBAR filers.\9\
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\9\ The total number of FBARs reported for foreign financial
accounts held during calendar year 2018, and reported in 2019 is
1,273,579. Each U.S. individual or entity that maintains foreign
financial accounts reportable on the FBAR can report all of their
foreign financial accounts on one FBAR report.
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Estimated Reporting and Recordkeeping Burden:
The estimated average burden associated with the FBAR reporting and
recordkeeping requirements will vary depending on the number of
reportable foreign financial accounts and the applicability of special
rules provided in the regulations which provide some relief from the
full scope of the reporting obligations.\10\
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\10\ 31 CFR 1010.350(g).
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The information required to be reported on the FBAR is basic
information U.S. persons will have received on account statements from
the foreign financial institutions where the accounts are opened and
maintained. Those statements will provide a U.S. person with the
information needed to complete and file the FBAR. No special accounting
or legal skills are necessary to transfer the basic information
required to be reported, such as the name of the foreign financial
institution, the type of account, and the account number, to the FBAR.
The special rules located at 31 CFR 1010.350(g) provide a variety
of relief to FBAR filers by (1) limiting the information reported in
the FBAR to the number of accounts and certain other basic identifying
information where the filer has financial interest in or signature
authority over 25 more reportable accounts; (2) allowing for entities
to file consolidated FBARs on their own behalf and on behalf of
entities for which they have a direct or indirect ownership interest
over 50%; and (3) exempting reporting of foreign financial interest in
accounts involving certain trust and retirement plans. However, filers
reporting financial interest in, or signature authority over, 25 or
more foreign financial accounts, are required to maintain a record of
the detailed account information on each of their foreign financial
accounts, including the account number, the name of the foreign
financial institution that holds the account, the address of the
foreign financial institution, the maximum value of the account during
the calendar year, and the type of account.\11\
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\11\ Filers availing themselves of special rules under 31 CFR
1010.350(g)(1) and (2) involving 25 or more reportable foreign
financial accounts are required to maintain and provide detailed
account information for each foreign financial account, if requested
by the Secretary or his delegate.
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For the reasons noted above, FinCEN estimates that the approximate
FBAR reporting burden will vary depending on the number of reportable
foreign financial accounts, and will range from approximately 20
minutes to 90 minutes. As a result, FinCEN estimates the average
reporting burden per FBAR filer will be 55 minutes.
Past estimates of the FBAR recordkeeping requirement took into
[[Page 73131]]
account time to store paper copies of the FBAR form, and estimated that
the approximate recordkeeping burden was 30 minutes. Since 2011, FBARs
have been filed electronically. Electronically filing the FBAR allows a
filer to save an electronic copy of the report, which satisfies the
recordkeeping part of the requirement. FinCEN estimates it would take a
filer five minutes to save an electronic copy of the FBAR.\12\ In
addition to maintaining a copy of the form, those filers who take
advantage of the special rules provisions involving 25 or more accounts
are required to maintain detailed information on those accounts.
However, FinCEN believes that in most cases, such information would be
maintained by filers in the ordinary course of business in the form of
periodic account statements and other business records which would be
maintained mostly electronically. In addition, there is no requirement
in the FBAR regulations to maintain such information in any particular
format.
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\12\ Although filings have been electronic since 2011, this is
the first renewal notice in which FinCEN has reconsidered the burden
of storing reports electronically.
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For these reasons, FinCEN estimates that the approximate FBAR
recordkeeping burden will be approximately five minutes.
FinCEN estimates the total annual reporting and recordkeeping
burden per FBAR filer will be one hour (55 minutes for FBAR reporting,
and five minutes for FBAR recordkeeping).
Estimated Total Annual Reporting and Recordkeeping Burden:
1,273,579 hours (1,273,579 FBAR filers multiplied by one hour).
Estimated Total Annual Reporting and Recordkeeping Cost: Of the
1,273,579 FBARs filed for foreign financial accounts held during
calendar year 2018, 1,209,287 were filed by individuals, and 64,292
were filed by entities. FinCEN cannot quantify the cost to individuals
who file FBARs on their own behalf. For entities, FinCEN estimates the
following annual burden cost: 64,292 hours x $48.30 \13\ per hour =
$3,105,303.60.
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\13\ The U.S. Bureau of Labor Statistics, Occupational
Employment Statistics-National, May 2019, available at https://www.bls.gov/oes/tables.htm. The most recent data from the BLS
corresponds to May 2019. For the benefits component of total
compensation, see U.S. Bureau of Labor Statistics, Employer's Cost
per Employee Compensation as of December 2019, available at https://www.bls.gov/news.release/ecec.nr0.htm. The ratio between benefits
and wages for financial activities is $15.95 (hourly benefits)/
$32.05 (hourly wages) = 0.50. The benefit factor is 1 plus the
benefit/wages ratio, or 1.50. Multiplying each hourly wage by the
benefit factor produces the fully-loaded hourly wage per position.
The May 2019 Bureau of Labor Statistics average hourly wage for
``13-1041 Compliance Officer'' is $32.20. ($32.20 x 1.50 = $48.30).
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An Agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid OMB control number. Records required to be
retained under the BSA must be retained for five years.
General Request for Comments:
Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval. All comments will
become a matter of public record.
Comments are invited on: (i) 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; (ii)
the accuracy of the agency's estimate of the burden of the collection
of information; (iii) ways to enhance the quality, utility, and clarity
of the information to be collected; (iv) 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 (v) estimates of capital or start-up costs and costs of
operation, maintenance, and purchase of services to provide
information.
Michael Mosier,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2020-25216 Filed 11-13-20; 8:45 am]
BILLING CODE 4810-02-P
