Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Anti-Money Laundering Program Requirements for Casinos, 83676-83681 [2020-28255]

Download as PDF jbell on DSKJLSW7X2PROD with NOTICES 83676 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. VerDate Sep<11>2014 17:30 Dec 21, 2020 Jkt 253001 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: PO 00000 Frm 00167 Fmt 4703 Sfmt 4703 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: http:// 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 E:\FR\FM\22DEN1.SGM 22DEN1 Federal Register / Vol. 85, No. 246 / Tuesday, December 22, 2020 / Notices 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 jbell on DSKJLSW7X2PROD with NOTICES 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). VerDate Sep<11>2014 17:30 Dec 21, 2020 Jkt 253001 • 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. PO 00000 Frm 00168 Fmt 4703 Sfmt 4703 83677 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). E:\FR\FM\22DEN1.SGM 22DEN1 83678 Federal Register / Vol. 85, No. 246 / Tuesday, December 22, 2020 / Notices 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. jbell on DSKJLSW7X2PROD with NOTICES 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 VerDate Sep<11>2014 17:30 Dec 21, 2020 Jkt 253001 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 PO 00000 Frm 00169 Fmt 4703 Sfmt 4703 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. E:\FR\FM\22DEN1.SGM 22DEN1 83679 Federal Register / Vol. 85, No. 246 / Tuesday, December 22, 2020 / Notices 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 jbell on DSKJLSW7X2PROD with NOTICES 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. VerDate Sep<11>2014 17:30 Dec 21, 2020 Jkt 253001 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 PO 00000 Frm 00170 Fmt 4703 Sfmt 4703 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 E:\FR\FM\22DEN1.SGM 22DEN1 83680 Federal Register / Vol. 85, No. 246 / Tuesday, December 22, 2020 / Notices jbell on DSKJLSW7X2PROD with NOTICES 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 22DEN1

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]


=======================================================================
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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.

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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: http://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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    ii. the designation of a person to ensure day to day compliance 
with the financial institution's AML program and the BSA; \19\ and
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    iii. AML education and training provided to personnel relating to 
their job specific responsibilities.\20\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

    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