Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Anti-Money Laundering Program Requirements for Casinos, 83676-83681 [2020-28255]
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Federal Register / Vol. 85, No. 246 / Tuesday, December 22, 2020 / Notices
collection. The Federal Register Notice
with a 60-day comment period soliciting
comments on the following collection of
information was published on June 5,
2020. The collection aids to make the
aircraft noise certification information
easily accessible to the flight crew and
presentable upon request to the
appropriate foreign officials for
international airline operation of U.S.
carriers. The information to be collected
upholds the U.S. obligations under the
Convention on International Civil
Aviation and for which FAA policy
comply with International Civil
Aviation Organization (ICAO) Standards
and Recommended Practices to the
maximum extent practicable. Thus the
FAA has adopted ICAO’s Standards and
Recommended Practices as US
regulations as a means of compliance
with Annex 16 and requires noise
documentation be carried on board
aircraft that leave the United States.
DATES: Written comments should be
submitted by January 21, 2021.
ADDRESSES: Interested persons are
invited to submit written comments on
the proposed information collection to
the Office of Information and Regulatory
Affairs, Office of Management and
Budget. Comments should be addressed
to the attention of the Desk Officer,
Department of Transportation/FAA, and
sent via electronic mail to oira_
submission@omb.eop.gov, or faxed to
(202) 395–6974, or mailed to the Office
of Information and Regulatory Affairs,
Office of Management and Budget,
Docket Library, Room 10102, 725 17th
Street NW, Washington, DC 20503.
Public Comments Invited: You are
asked to comment on any aspect of this
information collection, including (a)
Whether the proposed collection of
information is necessary for FAA’s
performance; (b) the accuracy of the
estimated burden; (c) ways for FAA to
enhance the quality, utility and clarity
of the information collection; and (d)
ways that the burden could be
minimized without reducing the quality
of the collected information. The agency
will summarize and/or include your
comments in the request for OMB’s
clearance of this information collection.
FOR FURTHER INFORMATION CONTACT:
Sandy R. Liu by email at: sandy.liu@
faa.gov; phone: 202–267–4748.
SUPPLEMENTARY INFORMATION:
OMB Control Number: 2120–0737.
Title: Aircraft Noise Certification
Documents for International Operations.
Form Numbers: None. Reference:
ICAO Annex 16, Vol.1—Aircraft Noise,
Eighth edition (July 2017) Attachment G
for format.
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Type of Review: Renewal of an
information collection.
Background: The Federal Register
Notice with a 60-day comment period
soliciting comments on the following
collection of information was published
on June 5, 2020 (85 FR 34711). On
March 2, 2010, the FAA published the
final rule Notice No. 91–312, Aircraft
Noise Certification Documents for
International Operations (75 FR 9327). It
requires operators that fly outside the
United States, using aircraft subject to
ICAO, Annex 16, Volume 1, to carry
aircraft noise certification information
on board the aircraft. This collection is
needed to ensure consistent
international compliance with the
ICAO, Annex 16, Volume 1,
Amendment 8 that requires certain
noise information be carried on board
the aircraft. This information must be
easily accessible to the flight crew and
presentable upon request to the
appropriate foreign National Aviation
Authority (NAA) officials. The
collection is mandatory based on U.S.
regulations and international standards.
Respondents: Operators of U.S.
registered civil aircraft flying outside
the United States.
Frequency: 70 airplanes.
Estimated Average Burden per
Response: 25 minutes (0.42 hours).
Estimated Total Annual Burden: $25
per airplane × 70 airplanes affected =
$1,750.
Issued in Washington, DC, on December
17, 2020.
Sandy Liu,
Engineer, Noise Division, Office of
Environment and Energy, Noise Division
(AEE–100).
[FR Doc. 2020–28226 Filed 12–21–20; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request; Renewal Without
Change of Anti-Money Laundering
Program Requirements for Casinos
Financial Crimes Enforcement
Network (FinCEN), Treasury.
ACTION: Notice and request for
comments.
AGENCY:
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,
SUMMARY:
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the regulations require casinos to
develop and implement written antimoney laundering programs reasonably
designed to ensure and monitor
compliance with the requirements set
forth in the Bank Secrecy Act
regulations. Although no changes are
proposed to the information collection
itself, this request for comments covers
a future expansion of the scope of the
annual hourly burden and cost estimate
associated with these regulations. 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
February 22, 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–
0015 and the specific Office of
Management and Budget (OMB) control
number 1506–0051.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
Number FINCEN–2020–0015 and OMB
control number 1506–0051.
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
frc@fincen.gov.
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
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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
(AML) 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
Section 352 of the USA PATRIOT Act
added subsection (h) to 31 U.S.C. 5318
of the BSA. Section 352 mandates that
financial institutions establish AML
programs in order to guard against
money laundering. Such AML programs
must include, at a minimum, the
following: (a) The development of
internal policies, procedures, and
controls, (b) the designation of a
compliance officer, (c) an ongoing
employee training program, and (d) an
independent audit function to test
programs. Pursuant to section 352,
FinCEN issued a regulation requiring
casinos to develop and implement
written AML programs.3 This notice
only proposes to renew the OMB control
number associated with the casino AML
program regulations.4
II. Paperwork Reduction Act of 1995
(PRA) 5
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Title: AML program requirements for
casinos (31 CFR 1021.210, 31 CFR
1021.410(b)(10)).
OMB Control Number: 1506–0051.
Report Number: Not applicable.
Abstract: FinCEN is issuing this
notice to renew the OMB control
number for the AML program regulatory
requirements for casinos.
Affected Public: Businesses or other
for-profit institutions, and non-profit
institutions.
Type of Review:
• Renewal without change of a
currently approved information
collection.
• Propose for review and comment a
renewal of the portion of the PRA
burden that has been subject to notice
and comment in the past (the
‘‘traditional annual PRA burden’’).
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 CFR 1021.210.
4 Card clubs are included in the casino AML
program regulations, and any reference to casinos
used in BSA regulations includes card clubs, unless
specifically noted. See 31 CFR 1010.100(t)(5)(iii).
5 Public Law 104–13, 44 U.S.C. 3506(c)(2)(A).
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• Propose for review and comment a
future expansion of the scope of the
PRA burden (the ‘‘future annual PRA
burden’’).
Frequency: As required.
Estimated Number of Respondents:
993 casinos.6
Estimated Recordkeeping Burden:
Part 1 of this notice describes the
breakdown of the estimated number of
casinos, by type. Part 2 proposes for
review and comment a renewal of the
estimate of the traditional annual PRA
hourly burden, which includes an
annual hourly burden estimate per
casino similar to the estimate used in
the past, with the incorporation of a
more robust cost estimate. The scope
and methodology used in the past
assigned a total annual hourly burden
estimate, per casino, to multiple
recordkeeping requirements within the
regulations, rather than assigning an
annual hourly burden estimate, per
casino, to each unique AML
recordkeeping requirement.7 In the past,
one annual hourly burden estimate per
casino was used to encompass all of the
recordkeeping requirements included in
the AML program requirements for
casinos. Part 3 of this notice proposes
for review and comment a methodology
for a future estimate of an annual PRA
burden. The estimate would include the
PRA burden and cost broken down by
each recordkeeping requirement in the
casino AML program regulations.
Finally, Part 4 solicits input from the
public about: (a) The accuracy of the
traditional annual PRA burden estimate;
(b) the more granular calculation needed
to establish a future annual PRA burden,
of the hourly and cost burden per casino
AML program recordkeeping
requirement; (c) the criteria, metrics,
and most appropriate questions FinCEN
should consider when researching the
information to estimate the future
annual PRA burden; and (d) any other
comments about the regulations and the
current and proposed future hourly
6 Table 1, infra, below sets forth a breakdown of
the types of casinos covered by this notice.
7 The casino AML program regulations have two
unique requirements. Specifically, 31 CFR
1021.210(b)(2)(v) provides that a casino must
establish procedures for using all available
information to determine, when required by the
BSA regulatory requirements, the name, address,
social security number, and other information, and
verification of the same, of a person; the occurrence
of any transactions or patterns of transactions
required to be reported pursuant to 31 CFR
1021.320; and whether any record as described in
subpart D of part 1010 or part 1021 must be made
and retained. 31 CFR 1021.210(b)(2)(vi) provides
that, for those casinos that have automated data
processing systems, their AML compliance program
must provide for the use of automated programs to
aid in ensuring compliance.
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burden and cost estimates of these
requirements.
Part 1. Breakdown of the Casinos 8
Covered by This Notice
The breakdown of casinos, by type,
covered by this notice is reflected in
Table 1 below:
TABLE 1—BREAKDOWN OF CASINOS
COVERED BY THIS NOTICE, BY TYPE
OF FINANCIAL INSTITUTION
Type of casino
Number of
casinos
9 466
Casino .........................................
Tribal Casino ..............................
10 527
Total number of casinos .........
11 993
Part 2. Traditional Annual PRA Burden
and Cost
The scope of the traditional annual
PRA burden and cost estimates in this
renewal encompasses all of the
recordkeeping requirements included in
the AML program requirements for
casinos, notably: Maintaining and
updating the written AML program
(Action A); storing the written AML
program (Action B); producing a copy of
the written AML program if requested
by regulatory examiners or law
enforcement (Action C); and complying
with the requirements in 31 CFR
1021.210(b)(2)(v) and (vi) (Action D).
The prior renewal did not break the
requirements down into a burden
estimate for each recordkeeping
requirement, but instead estimated that
all of the requirements combined would
require 100 hours.12 In future estimates,
FinCEN intends to estimate burden
based on each individual requirement
set out in 31 CFR 1021.210.
For purposes of the estimate of the
AML program traditional annual PRA
burden, FinCEN has made the following
assumptions:
(a) The written AML program is
stored as an electronic file. The
estimated annual burden (5 minutes per
8 Card clubs are not included in the breakdown
of casinos covered by this notice. The omission of
card clubs in the total number of casinos in Table
1 will reduce the total hourly burden estimate in
Table 2, infra, from its actual number.
9 According to numbers provided to FinCEN by
the American Gaming Association (AGA), there are
466 commercial casinos as of October 20, 2020.
10 According to numbers provided to FinCEN by
the AGA, there are 527 tribal properties as of
October 20, 2020.
11 According to numbers provided to FinCEN by
the AGA, the total number of casinos includes 223
commercial and tribal casinos in Nevada as of
October 20, 2020. This number does not include
restricted locations, i.e., those with 15 slot
machines or fewer.
12 See 82 FR 31636 (July 7, 2017).
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financial institution) represents the
administrative burden involved in
processing the storage of the written
program, and not just the time of actual
electronic storage, which would be
nearly instantaneous.
(b) Producing the written AML
program electronically to regulatory or
time required to make the program
available to the requestor for inspection
(for example, the actual electronic
transmission), which would be nearly
instantaneous.
The estimated burden associated with
each portion of the traditional annual
PRA estimate is as follows:
law enforcement agencies, upon their
request. FinCEN estimates the annual
burden of producing the written
program at 5 minutes per financial
institution. The estimated annual
burden represents the administrative
burden involved in producing the
program upon request, and not just the
TABLE 2—BURDEN ASSOCIATED WITH EACH PORTION OF THE TRADITIONAL ANNUAL PRA ESTIMATE
Number of
casinos 13
Total hourly
burden
Action
Instances per year
Time per instance
A. Maintaining and updating the written AML
program.
B. Storing the written AML program ...............
C. Producing the AML program upon request
D. Ongoing Compliance with the requirements in 31 CFR 1021.210(b)(2)(v) and
(vi).
1 per casino ...........................
1 hour 14 .................................
993
993
1 per casino ...........................
1 per casino ...........................
1 per casino ...........................
5 minutes ...............................
5 minutes ...............................
99 hours .................................
993
993
993
* 83
* 83
98,307
Total Hourly Burden ................................
................................................
................................................
........................
99,466
* 82.75 rounded to 83.
To calculate the hourly costs of the
burden estimate, FinCEN identified
three roles and corresponding staff
positions involved in maintaining an
AML program: (i) General supervision
(providing process oversight); (ii) direct
supervision (reviewing operational-level
work and cross-checking all or a sample
of the work product against supporting
documentation); and (iii) clerical work
(engaging in research and administrative
review and filing and producing the
AML program on request).
FinCEN calculated the fully-loaded
hourly wage for each of these three roles
by using the median wage estimated by
the U.S. Bureau of Labor Statistics
(BLS),15 and computing an additional
benefits cost as follows:
TABLE 3—FULLY-LOADED HOURLY WAGE BY ROLE AND BLS JOB POSITION FOR ALL FINANCIAL INSTITUTIONS COVERED
BY THIS NOTICE
Role
BLS-code
General supervision ..............................................
Direct supervision .................................................
Clerical work (research, review, and filing and
producing the program upon request).
FinCEN estimates that, in general and
on average,16 each role would spend
different amounts of time on each
Median
hourly wage
BLS-name
11–3031
13–1041
43–3099
Financial Manager ........
Compliance Officer .......
Financial Clerk ..............
portion of the traditional annual PRA
burden, as follows:
For Action A set out in Table 2 above,
annually maintaining and updating the
Benefit
factor
$62.45
33.20
20.40
1.50
1.50
1.50
Fully-loaded
hourly wage
$93.68
49.80
30.60
AML program documentation, the cost
of each hour of burden is estimated to
be $48.00, as shown in Table 4 below.
TABLE 4—WEIGHTED AVERAGE HOURLY COST OF MAINTAINING AND UPDATING AML PROGRAM DOCUMENTATION
General supervision
Direct supervision
Clerical work (case review)
% time
Hourly cost
% time
Hourly cost
% time
Hourly cost
Weighted
average
hourly cost
10
$9.37
60
$29.88
30
$9.18
* $48.00
*$48.43 rounded to $48.00.
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13 As
set out in Table 1 above.
are estimating the annual recordkeeping
burden per recordkeeper as 1 hour for casinos,
consistent with our calculation of 1 hour for
maintaining and updating the written AML program
in the 60-day notice to renew AML programs for
certain financial institutions (85 FR 49418 (Aug. 13,
2020)).
15 The U.S. Bureau of Labor Statistics,
Occupational Employment Statistics-National, May
14 We
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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
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benefit/wages ratio, or 1.50. Multiplying each
hourly wage by the benefit factor produces the
fully-loaded hourly wage per position.
16 By ‘‘in general,’’ FinCEN means without regard
to outliers (e.g., financial institutions with AML
programs with complexities that are uncommonly
higher or lower than those of the population at
large). By ‘‘on average,’’ FinCEN means the mean
of the distribution of each subset of the population.
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For Actions B, C, and D set out in
Table 2 above, the cost of each hour of
burden is estimated to be $33.00, as
shown in Table 5 below:
• Action B—storing the AML
program.
• Action C—producing of the AML
program upon request.
• Action D—complying with
requirements in 31 CFR
1021.210(b)(2)(v) and (vi).
TABLE 5—WEIGHTED AVERAGE HOURLY COST OF STORING AND PRODUCING AML PROGRAM DOCUMENTATION UPON
REQUEST, AND COMPLYING WITH REQUIREMENTS IN 31 CFR 1021.210(b)(2)(v) AND (vi)
General supervision
Direct supervision
Clerical work (recordkeeping)
% time
Hourly cost
% time
Hourly cost
% time
Hourly cost
Weighted
average
hourly cost
1
$0.94
9
$4.48
90
$27.54
* $33.00
* $32.96 rounded to $33.00.
The total cost of the traditional annual
PRA burden would be $3,297,273 as
reflected in Table 6 below:
TABLE 6—TOTAL COST OF TRADITIONAL ANNUAL PRA BURDEN
Total burden
in hours
Action
Hourly cost
Total cost
$
(Table 2)
Source
A. Maintaining and updating the written AML program ..................................
B. Storing the written AML program ................................................................
C. Producing the written AML program upon request ....................................
D. Ongoing compliance with the requirements in 31 CFR 1021.210(b)(2)(v)
and (vi).
993
* 83
* 83
98,307
$48.00
33.00
33.00
33.00
Total Cost .................................................................................................
........................
........................
Table
Table
Table
Table
4
5
5
6
...........
...........
...........
...........
$47,664
2,739
2,739
3,244,131
........................
3,297,273
* 82.75 rounded to 83.
Part 3. Future Annual PRA Burden
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In the future, FinCEN intends to be
more granular in estimating the annual
PRA burden, by calculating the burden
and cost attributed to certain, but not
all, activities necessary to implement
the four key elements of an AML
program.17
The burden hours and cost of two of
the key elements of an AML program
(internal controls, and designation of a
BSA compliance officer) are accounted
for individually across all of the 42
OMB control numbers FinCEN
maintains for the various BSA
regulatory requirements because those
requirements necessitate that internal
controls be put in place and that a BSA
compliance officer be designated. For
that reason, for the OMB control
17 Although FinCEN is providing information
about burden and cost with respect to the four key
elements of an AML program, FinCEN wants to
emphasize that the four key elements of an AML
program are statutory requirements. The four key
elements of an AML program are: (a) Establishing
policies, procedures, and internal controls
reasonably designed to ensure compliance with the
BSA; (b) designating a person to ensure day to day
compliance with the AML program and the BSA;
(c) providing education and training to appropriate
personnel concerning their responsibilities under
the AML program; and (d) implementing an
independent review to monitor and maintain an
adequate AML program.
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numbers and related regulations
renewed in this notice, FinCEN
generally does not intend to estimate
burden hours and cost applicable to
these two key elements in the future
annual PRA burden.
The future annual PRA burden
calculation will include the estimated
burden and cost to implement the other
two key elements of an AML program
((c) BSA training, and (d) independent
audit) relating to the regulations and
corresponding OMB control number
being renewed in this notice. The future
annual PRA burden calculation also will
include the estimated burden and cost
for a casino to (a) provide procedures to
determine customer identification
information, and the occurrence of
suspicious activity transactions, and (b)
use automated programs to aid in
ensuring compliance, if the casino has
automated data processing systems.
These additional two elements are
requirements of the casino AML
program regulations, which are being
renewed in this notice.
To further clarify, below are lists of
actions FinCEN intends to (1) include in
a future annual PRA burden estimate
relating to the regulations and OMB
control number renewed in this notice,
and (2) cover in OMB control number
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renewals associated with other BSA
regulatory requirements.
(a) FinCEN intends to include the
following within a future annual PRA
burden estimate for casinos:
i. Any generic BSA-related education
and training provided to all levels of the
organization, and any training provided
to appropriate personnel on BSA issues
in excess of that required by their jobspecific responsibilities under their
financial institution’s AML program.
ii. The burden and cost of any internal
or external independent review of
compliance with BSA-specific
obligations.
iii. The annual burden and cost of
implementation of a compliance
program that includes procedures to
determine customer identification
information and the occurrence of
suspicious activity transactions.
iv. For casinos that have automated
data processing systems, the annual cost
and burden of implementation of a
compliance program that provides for
the use of automated programs to aid in
ensuring compliance.
(b) FinCEN does not intend to include
the following as part of a future annual
PRA burden estimate:
i. The annual PRA burden and cost of
the policies, procedures, and internal
controls established in the AML
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program to ensure compliance with the
BSA; 18
ii. the designation of a person to
ensure day to day compliance with the
financial institution’s AML program and
the BSA; 19 and
iii. AML education and training
provided to personnel relating to their
job specific responsibilities.20
FinCEN does not have the necessary
information to provide a tentative
estimate for the PRA hourly burdens
and costs it intends to address in the
future. In addition, FinCEN does not
have all the necessary information to
more accurately estimate the traditional
annual PRA burden. For that reason,
FinCEN is relying on estimates used in
prior renewals of this OMB control
number and the applicable regulations.
FinCEN further recognizes that after
receiving public comments as a result of
this notice, future traditional annual
PRA hourly burden and cost estimates
may vary significantly. FinCEN intends
to conduct more granular studies of the
actions included in the proposed scope
of the annual PRA burden in the near
future, to arrive at more accurate
estimates of net BSA hourly burden and
cost.21 The data obtained in these
studies also may result in a significant
variation of the estimated traditional
annual PRA burden.
Estimated Recordkeeping Burden: The
average estimated annual PRA burden,
measured in hours per respondent, is: 1
hour per casino, for maintaining and
updating the AML program (Action A);
5 minutes per casino, for storing the
18 As noted above, the burden hours and cost of
internal controls will be accounted for individually
across all of the 42 OMB control numbers FinCEN
maintains for the various BSA regulatory
requirements because those requirements
necessitate that internal controls be put in place.
19 As noted above, the burden hours and cost of
a BSA compliance officer will be accounted for
individually across all of the 42 OMB control
numbers FinCEN maintains for the various BSA
regulatory requirements because those requirements
necessitate that a BSA compliance officer be
designated.
20 As noted above, generic BSA-related training
provided to all levels of the organization will be
included in future burden and cost estimates
corresponding to the OMB control numbers being
renewed in this notice. Job-specific training related
to specific BSA requirements, will be covered in the
OMB control numbers corresponding to those
specific BSA requirements.
21 Net hourly burden and cost are the burden and
cost a financial institution incurs to comply with
requirements that are unique to the BSA, and that
do not support any other business purpose or
regulatory obligation of the financial institution.
Burden for purposes of the PRA does not include
the time and financial resources needed to comply
with an information collection, if the time and
resources are for things a business (or other person)
does in the ordinary course of its activities if the
agency demonstrates that the reporting activities
needed to comply are usual and customary. 5 CFR
1320.3(b)(2).
VerDate Sep<11>2014
17:30 Dec 21, 2020
Jkt 253001
written AML program (Action B); 5
minutes per casino, for producing a
copy of the AML program if requested
by regulatory examiners or law
enforcement (Action C); and 99 hours
per casino, for complying with the
requirements in 31 CFR
1021.210(b)(2)(v) and (vi) (Action D).
Estimated Number of Respondents:
993, as set out in Table 1.
Estimated Total Annual
Recordkeeping Burden: The estimated
total annual PRA burden is 99,466
hours, as set out in Table 2.
Estimated Total Annual
Recordkeeping Cost: The estimated total
annual PRA cost is $3,297,273, as set
out in Table 6.
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.
Part 4. Request for Comments
(a) Specific request for comments on
the traditional annual PRA hourly
burden and cost.
FinCEN invites comments on any
aspect of the traditional annual PRA
burden, as set out in Part 2 of this
notice. In particular, FinCEN seeks
comments on the adequacy of: (i)
FinCEN’s assumptions underlying its
burden estimate; (ii) the estimated
number of hours required by each
portion of the burden; and (iii) the
organizational roles of the casino
engaged in each portion of the burden,
the roles’ estimated hourly
remuneration, and the estimated
proportion of time spent by each role on
the requirements. FinCEN encourages
commenters to include any publicly
available sources for alternative
estimates or methodologies.
(b) Specific request for comments on
the appropriate criteria, methodology,
and questionnaire required to obtain
information to more precisely estimate
the future annual PRA hourly burden
and cost.
FinCEN invites comments on the most
appropriate and comprehensive means
to question financial institutions about
the annual hourly burden and cost. For
example, as it relates to training,
independent review, and maintaining
and updating the AML program:
Training:
(1) How much time is spent on
creating and implementing the AML
training plan?
(2) How much time is spent on
delivering instructor led training or
creating web- based training?
PO 00000
Frm 00171
Fmt 4703
Sfmt 4703
(3) How much time does the casino’s
compliance department spend on
creating AML related training content,
or is the training function conducted by
a team outside of the casino’s
compliance department?
(4) How much time is spent
identifying the proper audience for
training?
(5) How much time is spent tracking,
and reporting on, AML-related training?
Independent Review:
(1) How much of the casino’s
compliance department’s time is spent
on responding to inquiries or correcting
deficiencies related to the independent
review of the AML program?
(2) If the independent review is
conducted by an internal audit
department, how much of the internal
audit department’s time is spent
creating and implementing the required
testing plan for the independent review?
Updating and Maintaining a Written
AML Program:
On average, how many times per year
does your casino update its AML
program?
The future annual PRA hourly burden
and cost estimate of the recordkeeping
necessary to comply with the AML
program requirements for casinos must
take into consideration only the effort
involved in obtaining those data
elements that are used exclusively for
complying with requirements under 31
CFR 1021.210. Given the complexity in
determining what portion of the effort to
include in the estimate, FinCEN seeks
comments from the public regarding any
questions we should consider posing in
future notices, in addition to the
specific questions for comment outlined
directly below. FinCEN welcomes any
suggestions as to how to derive these
estimates by using publicly available
financial information.
(c) Specific questions for comment
associated with implementing a
compliance program that includes
procedures to determine customer
identification information and the
occurrence of suspicious activity
transactions, when required by BSA
regulations.
(1) Customer Identification Procedures
• On average, how long does it take
your casino to establish procedures for
using all available information to
determine and verify the name, address,
social security number, and other
information, of a person?
• Does your casino have a review and
approval process involving senior
management to evaluate the procedures
used for determining and verifying
customer identification information? On
average, how long does the review
E:\FR\FM\22DEN1.SGM
22DEN1
Federal Register / Vol. 85, No. 246 / Tuesday, December 22, 2020 / Notices
jbell on DSKJLSW7X2PROD with NOTICES
process take and how many approvals
are necessary?
• How frequently does your casino
collect and verify the name, address,
social security number, and other
information, of a person?
• On average how many new
accounts does your casino open per
year?
• How many accounts are for new
customers?
• How long does it take your casino
to open a new account for an existing
customer?
• How long does it take your casino
to conduct identity verification
procedures for a new personal or
business account?
• Is the collection of customer
identification information exclusively to
comply with customer identification
requirements, or is it also to comply
with other regulatory requirements or
for other business reasons?
(2) Suspicious Activity Procedures
• On average, how long does it take
your casino to establish procedures for
using all available information,
including your automated systems and
your surveillance system and
surveillance logs, to determine the
occurrence of any transactions or
patterns of transactions required to be
reported as suspicious?
• Does your casino have a review and
approval process involving senior
management to evaluate the procedures
used for determining suspicious
activity? On average, how long does the
review process take and how many
approvals are necessary?
(d) Specific questions for comment
associated with implementation of a
compliance program that provides for
the use of automated programs to aid in
ensuring compliance, for casinos that
have automated data processing
systems:
• Does your casino use automated
data processing systems?
• How does your casino use its
automated data processing systems to
aid in ensuring compliance?
• Does your casino have a review and
approval process involving senior
management to evaluate the use of its
automated data processing systems? On
average, how long does the review
process take and how many approvals
are necessary?
(e) 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
VerDate Sep<11>2014
17:30 Dec 21, 2020
Jkt 253001
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 G. Mosier,
Deputy Director, Financial Crimes
Enforcement Network.
[FR Doc. 2020–28255 Filed 12–21–20; 8:45 am]
BILLING CODE 4810–02–P
DEPARTMENT OF VETERANS
AFFAIRS
[OMB Control No. 2900–0059]
Agency Information Collection Activity
Under OMB Review: Statement of
Person Claiming To Have Stood in
Relation of Parent (VA Form 21P–524)
Veterans Benefits
Administration, Department of Veterans
Affairs.
ACTION: Notice.
AGENCY:
In compliance with the
Paperwork Reduction Act (PRA) of
1995, this notice announces that the
Veterans Benefits Administration,
Department of Veterans Affairs, will
submit the collection of information
abstracted below to the Office of
Management and Budget (OMB) for
review and comment. The PRA
submission describes the nature of the
information collection and its expected
cost and burden and it includes the
actual data collection instrument.
DATES: Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by search
function. Refer to ‘‘OMB Control No.
2900–0059.
FOR FURTHER INFORMATION CONTACT:
Danny S. Green, Enterprise Records
Service (005R1B), Department of
Veterans Affairs, 810 Vermont Avenue
NW, Washington, DC 20420, (202) 421–
1354 or email danny.green2@va.gov.
SUMMARY:
PO 00000
Frm 00172
Fmt 4703
Sfmt 9990
83681
Please refer to ‘‘OMB Control No. 2900–
0059’’ in any correspondence.
SUPPLEMENTARY INFORMATION:
Authority: 38 U.S.C. 1310 & 1315.
Title: Statement of Person Claiming to
Have Stood in Relation to Parent.
OMB Control Number: 2900–0059.
Type of Review: Reinstatement of a
previously approved collection.
Abstract: 38 U.S.C. 1315 established
Dependency Indemnity Compensation
to Parents (known as Parents’ DIC).
Parent’s DIC is a monthly benefit
payable to the parent(s) of a deceased
Veteran. The payable monthly benefit is
based on the parent’s (parents’) annual
income. Additional funds are payable to
the parent(s) if they are in a patient in
a nursing home, blind, so nearly blind
or significantly disabled as to need or
require the regular aid and attendance of
another person.
38 CFR 3.59 defines the term parent
as ‘‘. . . a natural mother or father
(including the mother of an illegitimate
child or the father of an illegitimate
child if the usual family relationship
existed), mother or father through
adoption, or a person who for a period
of not less than 1 year stood in the
relationship of a parent to a Veteran at
any time before his or her entry into
active service.’’
The information collected will be
used by VBA to evaluate a claimant’s
parental relationship to a deceased
Veteran when the claimant is not the
Veteran’s natural mother or father or
adopted mother or father.
Federal Register Notice with a 60-day
comment period soliciting comments on
this collection of information was
published at 85 FR, 197 on October 9th,
2020, page 64231.
Affected Public: Individuals or
Households.
Estimated Annual Burden: 800.
Estimated Average Burden per
Respondent: 2 Hours (120) minutes.
Frequency of Response: One time.
Estimated Number of Respondents:
200.
By direction of the Secretary.
Danny S. Green,
VA PRA Clearance Officer, Office of Quality,
Performance and Risk, Department of
Veterans Affairs.
[FR Doc. 2020–28185 Filed 12–21–20; 8:45 am]
BILLING CODE 8320–01–P
E:\FR\FM\22DEN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 246 (Tuesday, December 22, 2020)]
[Notices]
[Pages 83676-83681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28255]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Anti-Money Laundering
Program Requirements for Casinos
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, the regulations
require casinos to develop and implement written anti-money laundering
programs reasonably designed to ensure and monitor compliance with the
requirements set forth in the Bank Secrecy Act regulations. Although no
changes are proposed to the information collection itself, this request
for comments covers a future expansion of the scope of the annual
hourly burden and cost estimate associated with these regulations. 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
February 22, 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-2020-0015 and the specific Office of Management and Budget (OMB)
control number 1506-0051.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2020-0015 and OMB control number 1506-0051.
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
[[Page 83677]]
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 (AML)
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).
---------------------------------------------------------------------------
Section 352 of the USA PATRIOT Act added subsection (h) to 31
U.S.C. 5318 of the BSA. Section 352 mandates that financial
institutions establish AML programs in order to guard against money
laundering. Such AML programs must include, at a minimum, the
following: (a) The development of internal policies, procedures, and
controls, (b) the designation of a compliance officer, (c) an ongoing
employee training program, and (d) an independent audit function to
test programs. Pursuant to section 352, FinCEN issued a regulation
requiring casinos to develop and implement written AML programs.\3\
This notice only proposes to renew the OMB control number associated
with the casino AML program regulations.\4\
---------------------------------------------------------------------------
\3\ 31 CFR 1021.210.
\4\ Card clubs are included in the casino AML program
regulations, and any reference to casinos used in BSA regulations
includes card clubs, unless specifically noted. See 31 CFR
1010.100(t)(5)(iii).
---------------------------------------------------------------------------
II. Paperwork Reduction Act of 1995 (PRA) 5
---------------------------------------------------------------------------
\5\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
---------------------------------------------------------------------------
Title: AML program requirements for casinos (31 CFR 1021.210, 31
CFR 1021.410(b)(10)).
OMB Control Number: 1506-0051.
Report Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the AML program regulatory requirements for casinos.
Affected Public: Businesses or other for-profit institutions, and
non-profit institutions.
Type of Review:
Renewal without change of a currently approved information
collection.
Propose for review and comment a renewal of the portion of
the PRA burden that has been subject to notice and comment in the past
(the ``traditional annual PRA burden'').
Propose for review and comment a future expansion of the
scope of the PRA burden (the ``future annual PRA burden'').
Frequency: As required.
Estimated Number of Respondents: 993 casinos.\6\
---------------------------------------------------------------------------
\6\ Table 1, infra, below sets forth a breakdown of the types of
casinos covered by this notice.
---------------------------------------------------------------------------
Estimated Recordkeeping Burden:
Part 1 of this notice describes the breakdown of the estimated
number of casinos, by type. Part 2 proposes for review and comment a
renewal of the estimate of the traditional annual PRA hourly burden,
which includes an annual hourly burden estimate per casino similar to
the estimate used in the past, with the incorporation of a more robust
cost estimate. The scope and methodology used in the past assigned a
total annual hourly burden estimate, per casino, to multiple
recordkeeping requirements within the regulations, rather than
assigning an annual hourly burden estimate, per casino, to each unique
AML recordkeeping requirement.\7\ In the past, one annual hourly burden
estimate per casino was used to encompass all of the recordkeeping
requirements included in the AML program requirements for casinos. Part
3 of this notice proposes for review and comment a methodology for a
future estimate of an annual PRA burden. The estimate would include the
PRA burden and cost broken down by each recordkeeping requirement in
the casino AML program regulations. Finally, Part 4 solicits input from
the public about: (a) The accuracy of the traditional annual PRA burden
estimate; (b) the more granular calculation needed to establish a
future annual PRA burden, of the hourly and cost burden per casino AML
program recordkeeping requirement; (c) the criteria, metrics, and most
appropriate questions FinCEN should consider when researching the
information to estimate the future annual PRA burden; and (d) any other
comments about the regulations and the current and proposed future
hourly burden and cost estimates of these requirements.
---------------------------------------------------------------------------
\7\ The casino AML program regulations have two unique
requirements. Specifically, 31 CFR 1021.210(b)(2)(v) provides that a
casino must establish procedures for using all available information
to determine, when required by the BSA regulatory requirements, the
name, address, social security number, and other information, and
verification of the same, of a person; the occurrence of any
transactions or patterns of transactions required to be reported
pursuant to 31 CFR 1021.320; and whether any record as described in
subpart D of part 1010 or part 1021 must be made and retained. 31
CFR 1021.210(b)(2)(vi) provides that, for those casinos that have
automated data processing systems, their AML compliance program must
provide for the use of automated programs to aid in ensuring
compliance.
---------------------------------------------------------------------------
Part 1. Breakdown of the Casinos 8 Covered by This Notice
---------------------------------------------------------------------------
\8\ Card clubs are not included in the breakdown of casinos
covered by this notice. The omission of card clubs in the total
number of casinos in Table 1 will reduce the total hourly burden
estimate in Table 2, infra, from its actual number.
---------------------------------------------------------------------------
The breakdown of casinos, by type, covered by this notice is
reflected in Table 1 below:
---------------------------------------------------------------------------
\9\ According to numbers provided to FinCEN by the American
Gaming Association (AGA), there are 466 commercial casinos as of
October 20, 2020.
\10\ According to numbers provided to FinCEN by the AGA, there
are 527 tribal properties as of October 20, 2020.
\11\ According to numbers provided to FinCEN by the AGA, the
total number of casinos includes 223 commercial and tribal casinos
in Nevada as of October 20, 2020. This number does not include
restricted locations, i.e., those with 15 slot machines or fewer.
Table 1--Breakdown of Casinos Covered by This Notice, by Type of
Financial Institution
------------------------------------------------------------------------
Number of
Type of casino casinos
------------------------------------------------------------------------
Casino...................................................... \9\ 466
Tribal Casino............................................... \10\ 527
-----------
Total number of casinos................................... \11\ 993
------------------------------------------------------------------------
Part 2. Traditional Annual PRA Burden and Cost
The scope of the traditional annual PRA burden and cost estimates
in this renewal encompasses all of the recordkeeping requirements
included in the AML program requirements for casinos, notably:
Maintaining and updating the written AML program (Action A); storing
the written AML program (Action B); producing a copy of the written AML
program if requested by regulatory examiners or law enforcement (Action
C); and complying with the requirements in 31 CFR 1021.210(b)(2)(v) and
(vi) (Action D). The prior renewal did not break the requirements down
into a burden estimate for each recordkeeping requirement, but instead
estimated that all of the requirements combined would require 100
hours.\12\ In future estimates, FinCEN intends to estimate burden based
on each individual requirement set out in 31 CFR 1021.210.
---------------------------------------------------------------------------
\12\ See 82 FR 31636 (July 7, 2017).
---------------------------------------------------------------------------
For purposes of the estimate of the AML program traditional annual
PRA burden, FinCEN has made the following assumptions:
(a) The written AML program is stored as an electronic file. The
estimated annual burden (5 minutes per
[[Page 83678]]
financial institution) represents the administrative burden involved in
processing the storage of the written program, and not just the time of
actual electronic storage, which would be nearly instantaneous.
(b) Producing the written AML program electronically to regulatory
or law enforcement agencies, upon their request. FinCEN estimates the
annual burden of producing the written program at 5 minutes per
financial institution. The estimated annual burden represents the
administrative burden involved in producing the program upon request,
and not just the time required to make the program available to the
requestor for inspection (for example, the actual electronic
transmission), which would be nearly instantaneous.
The estimated burden associated with each portion of the
traditional annual PRA estimate is as follows:
---------------------------------------------------------------------------
\13\ As set out in Table 1 above.
\14\ We are estimating the annual recordkeeping burden per
recordkeeper as 1 hour for casinos, consistent with our calculation
of 1 hour for maintaining and updating the written AML program in
the 60-day notice to renew AML programs for certain financial
institutions (85 FR 49418 (Aug. 13, 2020)).
Table 2--Burden Associated With Each Portion of the Traditional Annual PRA Estimate
----------------------------------------------------------------------------------------------------------------
Number of Total hourly
Action Instances per year Time per instance casinos \13\ burden
----------------------------------------------------------------------------------------------------------------
A. Maintaining and updating the 1 per casino......... 1 hour \14\.......... 993 993
written AML program.
B. Storing the written AML program 1 per casino......... 5 minutes............ 993 * 83
C. Producing the AML program upon 1 per casino......... 5 minutes............ 993 * 83
request.
D. Ongoing Compliance with the 1 per casino......... 99 hours............. 993 98,307
requirements in 31 CFR
1021.210(b)(2)(v) and (vi).
-------------------------------
Total Hourly Burden........... ..................... ..................... .............. 99,466
----------------------------------------------------------------------------------------------------------------
* 82.75 rounded to 83.
To calculate the hourly costs of the burden estimate, FinCEN
identified three roles and corresponding staff positions involved in
maintaining an AML program: (i) General supervision (providing process
oversight); (ii) direct supervision (reviewing operational-level work
and cross-checking all or a sample of the work product against
supporting documentation); and (iii) clerical work (engaging in
research and administrative review and filing and producing the AML
program on request).
FinCEN calculated the fully-loaded hourly wage for each of these
three roles by using the median wage estimated by the U.S. Bureau of
Labor Statistics (BLS),\15\ and computing an additional benefits cost
as follows:
---------------------------------------------------------------------------
\15\ 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.
Table 3--Fully-Loaded Hourly Wage by Role and BLS Job Position for All Financial Institutions Covered by This
Notice
----------------------------------------------------------------------------------------------------------------
Median hourly Fully-loaded
Role BLS-code BLS-name wage Benefit factor hourly wage
----------------------------------------------------------------------------------------------------------------
General supervision........... 11-3031 Financial $62.45 1.50 $93.68
Manager.
Direct supervision............ 13-1041 Compliance 33.20 1.50 49.80
Officer.
Clerical work (research, 43-3099 Financial Clerk. 20.40 1.50 30.60
review, and filing and
producing the program upon
request).
----------------------------------------------------------------------------------------------------------------
FinCEN estimates that, in general and on average,\16\ each role
would spend different amounts of time on each portion of the
traditional annual PRA burden, as follows:
---------------------------------------------------------------------------
\16\ By ``in general,'' FinCEN means without regard to outliers
(e.g., financial institutions with AML programs with complexities
that are uncommonly higher or lower than those of the population at
large). By ``on average,'' FinCEN means the mean of the distribution
of each subset of the population.
---------------------------------------------------------------------------
For Action A set out in Table 2 above, annually maintaining and
updating the AML program documentation, the cost of each hour of burden
is estimated to be $48.00, as shown in Table 4 below.
Table 4--Weighted Average Hourly Cost of Maintaining and Updating AML Program Documentation
--------------------------------------------------------------------------------------------------------------------------------------------------------
General supervision Direct supervision Clerical work (case review)
----------------------------------------------------------------------------------------------------------------------------------- Weighted average
% time Hourly cost % time Hourly cost % time Hourly cost hourly cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
10 $9.37 60 $29.88 30 $9.18 * $48.00
--------------------------------------------------------------------------------------------------------------------------------------------------------
*$48.43 rounded to $48.00.
[[Page 83679]]
For Actions B, C, and D set out in Table 2 above, the cost of each
hour of burden is estimated to be $33.00, as shown in Table 5 below:
Action B--storing the AML program.
Action C--producing of the AML program upon request.
Action D--complying with requirements in 31 CFR
1021.210(b)(2)(v) and (vi).
Table 5--Weighted Average Hourly Cost of Storing and Producing AML Program Documentation Upon Request, and Complying With Requirements in 31 CFR
1021.210(b)(2)(v) and (vi)
--------------------------------------------------------------------------------------------------------------------------------------------------------
General supervision Direct supervision Clerical work (recordkeeping)
----------------------------------------------------------------------------------------------------------------------------------- Weighted average
% time Hourly cost % time Hourly cost % time Hourly cost hourly cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
1 $0.94 9 $4.48 90 $27.54 * $33.00
--------------------------------------------------------------------------------------------------------------------------------------------------------
* $32.96 rounded to $33.00.
The total cost of the traditional annual PRA burden would be
$3,297,273 as reflected in Table 6 below:
Table 6--Total Cost of Traditional Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
Total burden Hourly cost
in hours --------------------------------------------
Action ---------------- Total cost
(Table 2) $ Source
----------------------------------------------------------------------------------------------------------------
A. Maintaining and updating the 993 $48.00 Table 4................... $47,664
written AML program.
B. Storing the written AML program.. * 83 33.00 Table 5................... 2,739
C. Producing the written AML program * 83 33.00 Table 5................... 2,739
upon request.
D. Ongoing compliance with the 98,307 33.00 Table 6................... 3,244,131
requirements in 31 CFR
1021.210(b)(2)(v) and (vi).
---------------------------------------------------------------------------
Total Cost...................... .............. .............. .......................... 3,297,273
----------------------------------------------------------------------------------------------------------------
* 82.75 rounded to 83.
Part 3. Future Annual PRA Burden
In the future, FinCEN intends to be more granular in estimating the
annual PRA burden, by calculating the burden and cost attributed to
certain, but not all, activities necessary to implement the four key
elements of an AML program.\17\
---------------------------------------------------------------------------
\17\ Although FinCEN is providing information about burden and
cost with respect to the four key elements of an AML program, FinCEN
wants to emphasize that the four key elements of an AML program are
statutory requirements. The four key elements of an AML program are:
(a) Establishing policies, procedures, and internal controls
reasonably designed to ensure compliance with the BSA; (b)
designating a person to ensure day to day compliance with the AML
program and the BSA; (c) providing education and training to
appropriate personnel concerning their responsibilities under the
AML program; and (d) implementing an independent review to monitor
and maintain an adequate AML program.
---------------------------------------------------------------------------
The burden hours and cost of two of the key elements of an AML
program (internal controls, and designation of a BSA compliance
officer) are accounted for individually across all of the 42 OMB
control numbers FinCEN maintains for the various BSA regulatory
requirements because those requirements necessitate that internal
controls be put in place and that a BSA compliance officer be
designated. For that reason, for the OMB control numbers and related
regulations renewed in this notice, FinCEN generally does not intend to
estimate burden hours and cost applicable to these two key elements in
the future annual PRA burden.
The future annual PRA burden calculation will include the estimated
burden and cost to implement the other two key elements of an AML
program ((c) BSA training, and (d) independent audit) relating to the
regulations and corresponding OMB control number being renewed in this
notice. The future annual PRA burden calculation also will include the
estimated burden and cost for a casino to (a) provide procedures to
determine customer identification information, and the occurrence of
suspicious activity transactions, and (b) use automated programs to aid
in ensuring compliance, if the casino has automated data processing
systems. These additional two elements are requirements of the casino
AML program regulations, which are being renewed in this notice.
To further clarify, below are lists of actions FinCEN intends to
(1) include in a future annual PRA burden estimate relating to the
regulations and OMB control number renewed in this notice, and (2)
cover in OMB control number renewals associated with other BSA
regulatory requirements.
(a) FinCEN intends to include the following within a future annual
PRA burden estimate for casinos:
i. Any generic BSA-related education and training provided to all
levels of the organization, and any training provided to appropriate
personnel on BSA issues in excess of that required by their job-
specific responsibilities under their financial institution's AML
program.
ii. The burden and cost of any internal or external independent
review of compliance with BSA-specific obligations.
iii. The annual burden and cost of implementation of a compliance
program that includes procedures to determine customer identification
information and the occurrence of suspicious activity transactions.
iv. For casinos that have automated data processing systems, the
annual cost and burden of implementation of a compliance program that
provides for the use of automated programs to aid in ensuring
compliance.
(b) FinCEN does not intend to include the following as part of a
future annual PRA burden estimate:
i. The annual PRA burden and cost of the policies, procedures, and
internal controls established in the AML
[[Page 83680]]
program to ensure compliance with the BSA; \18\
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\18\ As noted above, the burden hours and cost of internal
controls will be accounted for individually across all of the 42 OMB
control numbers FinCEN maintains for the various BSA regulatory
requirements because those requirements necessitate that internal
controls be put in place.
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ii. the designation of a person to ensure day to day compliance
with the financial institution's AML program and the BSA; \19\ and
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\19\ As noted above, the burden hours and cost of a BSA
compliance officer will be accounted for individually across all of
the 42 OMB control numbers FinCEN maintains for the various BSA
regulatory requirements because those requirements necessitate that
a BSA compliance officer be designated.
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iii. AML education and training provided to personnel relating to
their job specific responsibilities.\20\
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\20\ As noted above, generic BSA-related training provided to
all levels of the organization will be included in future burden and
cost estimates corresponding to the OMB control numbers being
renewed in this notice. Job-specific training related to specific
BSA requirements, will be covered in the OMB control numbers
corresponding to those specific BSA requirements.
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FinCEN does not have the necessary information to provide a
tentative estimate for the PRA hourly burdens and costs it intends to
address in the future. In addition, FinCEN does not have all the
necessary information to more accurately estimate the traditional
annual PRA burden. For that reason, FinCEN is relying on estimates used
in prior renewals of this OMB control number and the applicable
regulations. FinCEN further recognizes that after receiving public
comments as a result of this notice, future traditional annual PRA
hourly burden and cost estimates may vary significantly. FinCEN intends
to conduct more granular studies of the actions included in the
proposed scope of the annual PRA burden in the near future, to arrive
at more accurate estimates of net BSA hourly burden and cost.\21\ The
data obtained in these studies also may result in a significant
variation of the estimated traditional annual PRA burden.
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\21\ Net hourly burden and cost are the burden and cost a
financial institution incurs to comply with requirements that are
unique to the BSA, and that do not support any other business
purpose or regulatory obligation of the financial institution.
Burden for purposes of the PRA does not include the time and
financial resources needed to comply with an information collection,
if the time and resources are for things a business (or other
person) does in the ordinary course of its activities if the agency
demonstrates that the reporting activities needed to comply are
usual and customary. 5 CFR 1320.3(b)(2).
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Estimated Recordkeeping Burden: The average estimated annual PRA
burden, measured in hours per respondent, is: 1 hour per casino, for
maintaining and updating the AML program (Action A); 5 minutes per
casino, for storing the written AML program (Action B); 5 minutes per
casino, for producing a copy of the AML program if requested by
regulatory examiners or law enforcement (Action C); and 99 hours per
casino, for complying with the requirements in 31 CFR 1021.210(b)(2)(v)
and (vi) (Action D).
Estimated Number of Respondents: 993, as set out in Table 1.
Estimated Total Annual Recordkeeping Burden: The estimated total
annual PRA burden is 99,466 hours, as set out in Table 2.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is $3,297,273, as set out in Table 6.
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.
Part 4. Request for Comments
(a) Specific request for comments on the traditional annual PRA
hourly burden and cost.
FinCEN invites comments on any aspect of the traditional annual PRA
burden, as set out in Part 2 of this notice. In particular, FinCEN
seeks comments on the adequacy of: (i) FinCEN's assumptions underlying
its burden estimate; (ii) the estimated number of hours required by
each portion of the burden; and (iii) the organizational roles of the
casino engaged in each portion of the burden, the roles' estimated
hourly remuneration, and the estimated proportion of time spent by each
role on the requirements. FinCEN encourages commenters to include any
publicly available sources for alternative estimates or methodologies.
(b) Specific request for comments on the appropriate criteria,
methodology, and questionnaire required to obtain information to more
precisely estimate the future annual PRA hourly burden and cost.
FinCEN invites comments on the most appropriate and comprehensive
means to question financial institutions about the annual hourly burden
and cost. For example, as it relates to training, independent review,
and maintaining and updating the AML program:
Training:
(1) How much time is spent on creating and implementing the AML
training plan?
(2) How much time is spent on delivering instructor led training or
creating web- based training?
(3) How much time does the casino's compliance department spend on
creating AML related training content, or is the training function
conducted by a team outside of the casino's compliance department?
(4) How much time is spent identifying the proper audience for
training?
(5) How much time is spent tracking, and reporting on, AML-related
training?
Independent Review:
(1) How much of the casino's compliance department's time is spent
on responding to inquiries or correcting deficiencies related to the
independent review of the AML program?
(2) If the independent review is conducted by an internal audit
department, how much of the internal audit department's time is spent
creating and implementing the required testing plan for the independent
review?
Updating and Maintaining a Written AML Program:
On average, how many times per year does your casino update its AML
program?
The future annual PRA hourly burden and cost estimate of the
recordkeeping necessary to comply with the AML program requirements for
casinos must take into consideration only the effort involved in
obtaining those data elements that are used exclusively for complying
with requirements under 31 CFR 1021.210. Given the complexity in
determining what portion of the effort to include in the estimate,
FinCEN seeks comments from the public regarding any questions we should
consider posing in future notices, in addition to the specific
questions for comment outlined directly below. FinCEN welcomes any
suggestions as to how to derive these estimates by using publicly
available financial information.
(c) Specific questions for comment associated with implementing a
compliance program that includes procedures to determine customer
identification information and the occurrence of suspicious activity
transactions, when required by BSA regulations.
(1) Customer Identification Procedures
On average, how long does it take your casino to establish
procedures for using all available information to determine and verify
the name, address, social security number, and other information, of a
person?
Does your casino have a review and approval process
involving senior management to evaluate the procedures used for
determining and verifying customer identification information? On
average, how long does the review
[[Page 83681]]
process take and how many approvals are necessary?
How frequently does your casino collect and verify the
name, address, social security number, and other information, of a
person?
On average how many new accounts does your casino open per
year?
How many accounts are for new customers?
How long does it take your casino to open a new account
for an existing customer?
How long does it take your casino to conduct identity
verification procedures for a new personal or business account?
Is the collection of customer identification information
exclusively to comply with customer identification requirements, or is
it also to comply with other regulatory requirements or for other
business reasons?
(2) Suspicious Activity Procedures
On average, how long does it take your casino to establish
procedures for using all available information, including your
automated systems and your surveillance system and surveillance logs,
to determine the occurrence of any transactions or patterns of
transactions required to be reported as suspicious?
Does your casino have a review and approval process
involving senior management to evaluate the procedures used for
determining suspicious activity? On average, how long does the review
process take and how many approvals are necessary?
(d) Specific questions for comment associated with implementation
of a compliance program that provides for the use of automated programs
to aid in ensuring compliance, for casinos that have automated data
processing systems:
Does your casino use automated data processing systems?
How does your casino use its automated data processing
systems to aid in ensuring compliance?
Does your casino have a review and approval process
involving senior management to evaluate the use of its automated data
processing systems? On average, how long does the review process take
and how many approvals are necessary?
(e) 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 G. Mosier,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2020-28255 Filed 12-21-20; 8:45 am]
BILLING CODE 4810-02-P
