Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Regulations Requiring Records to be Made and Retained by Financial Institutions, Banks, and Providers and Sellers of Prepaid Access, 84105-84113 [2020-28364]
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Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices
transactions subject to the reporting
requirement; (ii) the type of transactions
subject to or exempt from the reporting
requirement; (iii) the appropriate form
for reporting and the method for form
submission; (iv) the starting and ending
dates by which the transactions
specified in the order are to be reported;
(v) a point of contact at FinCEN for
questions; (vi) the amount of time the
reports and records of reports generated
are required to be retained; and (vii) any
other information deemed necessary to
carry out the purpose of the order.
Pursuant to 31 U.S.C. 5326(d), no order
will prescribe a reporting period of more
than 180 days unless it is renewed
pursuant to 31 U.S.C. 5326(a). These
orders are commonly referred to as
geographic targeting orders (GTOs).
31 CFR 1010.410(d) requires each
financial institution or nonfinancial
trade or business to retain the original
or a copy or reproduction of a record of
the information required to be reported
in a GTO for the period of time specified
in the order, not to exceed five years.
II. Paperwork Reduction Act of 1995
(PRA) 4
Title: Reports and records of certain
domestic transactions (31 U.S.C. 5326;
31 CFR 1010.370 and 1010.410(d)).
OMB Control Number: 1506–0056.
Report Number: Not applicable.
Abstract: FinCEN is issuing this
notice to renew the OMB control
number for statutes and regulations
requiring reports and records of certain
domestic transactions.
Affected Public: Businesses or other
for-profit institutions, and non-profit
institutions.
Type of Review: Renewal without
change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents:
353 domestic financial institutions and/
or nonfinancial trades or businesses.5
Estimated Total Annual Responses:
13,719 responses.6
Estimated Reporting and
Recordkeeping Burden:
Generally the information required to
be recorded and reported as a result of
a GTO is basic information to which a
domestic financial institution or
nonfinancial trade or business would
have access in the normal course of
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4 Public
Law 104–13, 44 U.S.C. 3506(c)(2)(A).
number of respondents, 353, is the average
for 2018 (377), 2019 (259), and 2020 (424). Note that
FinCEN may issue a GTO to any business in the
United States. Generally, a GTO is issued to a
specific sector or business type.
6 The number of responses, 13,719, is the average
number of responses for 2018 (12,866), 2019
(14,046), and 2020 (14,244).
5 The
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doing business. For instance, a domestic
financial institution or nonfinancial
trade or business involved in a payment,
receipt or transfer of funds, would have
access to the information required to be
reported. The information required to be
reported for a GTO, generally, includes
the following: (i) The dollar amount of
the transaction; (ii) the type of
transaction; (iii) information identifying
a party to the transaction, such as name,
address, date of birth, and tax
identification number; (iv) the role of a
party in the transaction (i.e., originator
or beneficiary); and (v) the name,
address, and contact information for the
domestic financial institution or
nonfinancial trade or business.
As noted above, FinCEN will specify
the form and method for reporting. For
GTOs, FinCEN has used modified
currency transaction reports and Form
8300s, and has also created reports
unique to the GTO when appropriate.
All responses to GTOs are submitted to
FinCEN electronically, such as through
the BSA E-Filing System.
Because the information to be
reported is readily available to a
domestic financial institution or
nonfinancial trade or business, FinCEN
estimates that reporting this information
will take 20 minutes on average.
Additionally, the GTO information is
filed electronically, which allows the
filer to save an electronic version of the
form and satisfy the recordkeeping
requirement. Therefore, FinCEN
estimates that the recordkeeping
requirement will take 5 minutes on
average. FinCEN estimates the total
hourly burden of reporting and
recordkeeping for each reportable
transaction under a GTO is 25 minutes.
Estimated Total Annual Reporting
and Recordkeeping Burden: The average
number of reportable transactions under
GTOs is 13,719 responses. 13,719
responses multiplied by 25 minutes per
response and converted to hours equals
5,716 hours.7
Estimated Total Annual Reporting
and Recordkeeping Cost: 5,716 hours ×
$30.60 per hour 8 = $174,909.60.
7 Although the burden is stated as an annual
burden in accordance with the PRA, the estimated
annual burden is not intended to indicate that there
is a GTO in effect throughout a year or in each year.
8 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/oes/tables.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
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84105
An Agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
Records required to be retained under
the BSA must be retained for five years.
General Request for Comments:
Comments submitted in response to this
notice will be summarized and/or
included in the request for OMB
approval. Comments are invited on: (i)
Whether the recordkeeping of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(ii) the accuracy of the agency’s estimate
of the burden of the collection of
information; (iii) ways to enhance the
quality, utility, and clarity of the
information to be collected; (iv) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and (v) estimates of capital
or start-up costs and costs of operation,
maintenance, and purchase of services
to provide information.
Michael Mosier,
Deputy Director, Financial Crimes
Enforcement Network.
[FR Doc. 2020–28431 Filed 12–22–20; 8:45 am]
BILLING CODE 4810–02–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request; Renewal Without
Change of Regulations Requiring
Records to be Made and Retained by
Financial Institutions, Banks, and
Providers and Sellers of Prepaid
Access
Financial Crimes Enforcement
Network (FinCEN), Treasury.
ACTION: Notice and request for
comments.
AGENCY:
SUMMARY: As part of its continuing effort
to reduce paperwork and respondent
burden, FinCEN invites comments on
the proposed renewal, without change,
of currently approved information
collections found in existing Bank
Secrecy Act regulations. Specifically,
benefit factor produces the fully-loaded hourly
wage per position. The May 2019 Bureau of Labor
Statistics average hourly wage for ‘‘43–3099
Financial Clerk’’ is $20.40. ($20.40 × 1.50 = $30.60).
The Financial Clerk average hourly wage is being
used here because there is a great deal of variation
across industries and geographies in who is
responsible for responding to a GTO.
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The BSA authorizes the Secretary of
the Treasury, inter alia, to require
financial institutions to keep records
and file reports that are determined to
have a high degree of usefulness in
criminal, tax, and regulatory matters, or
in the conduct of intelligence or
counter-intelligence activities to protect
against international terrorism, and to
implement anti-money laundering
(AML) programs and compliance
procedures.1 Regulations implementing
the BSA appear at 31 CFR Chapter X.
The authority of the Secretary of the
Treasury (the ‘‘Secretary’’) to administer
the BSA has been delegated to the
Director of FinCEN.2
The Annunzio-Wylie Anti-Money
Laundering Act of 1992 (Public Law
102–550) (Annunzio-Wylie) amended
the BSA framework. Annunzio-Wylie
authorizes the Secretary and the Board
of Governors of the Federal Reserve
System (the ‘‘Board’’) to jointly issue
regulations requiring insured depository
institutions to maintain records of
domestic funds transfers.3 The
Secretary, but not the Board, is
authorized to promulgate recordkeeping
requirements for domestic wire transfers
by nonbank financial institutions.4 In
addition, Annunzio-Wylie authorizes
the Secretary and the Board, after
consultation with state banking
supervisors, to jointly issue regulations
requiring insured depository
institutions and certain nonbank
financial institutions to maintain
records of international funds transfers
and transmittals of funds.5
the regulations covered by this notice
and request for comments require
certain financial institutions to make
and retain records associated with
certain types of transactions, including
funds transfers, transmittals of funds,
and prepaid access transactions, among
other types of transactions. Although no
changes are proposed to the information
collections themselves, this request for
comments covers a future expansion of
the scope of the annual hourly burden
and cost estimates 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–
0016 and the specific Office of
Management and Budget (OMB) control
numbers 1506–0058 and 1506–0059.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
Number FINCEN–2020–0016 and OMB
control number 1506–0058 and 1506–
0059.
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:
A. Information Required To Be
Collected, Retained, and Transmitted
under the Recordkeeping and Travel
Rules (31 CFR 1020.410(a) and 31 CFR
1010.410(e) and (f)).
On January 3, 1995, Treasury and the
Board jointly issued a recordkeeping
rule (the ‘‘Recordkeeping Rule’’) that
requires banks and nonbank financial
institutions to collect and retain
information related to funds transfers
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) (Public Law 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.
1 31 U.S.C. 5311. 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 12 U.S.C. 1829b(b)(2).
4 12 U.S.C. 1953.
5 12 U.S.C. 1829b(b)(3). The terms ‘‘funds
transfer,’’ ‘‘originator,’’ ‘‘beneficiary,’’ and
‘‘payment order’’ apply only in the context of
banks. The term ‘‘transmittal of funds’’ includes a
funds transfer and is its counterpart in the context
of nonbank financial institutions. See 31 CFR
1010.100(ddd). Transmittors, recipients, and
transmittal orders in the context of nonbank
financial institutions play the same role as
originators, beneficiaries, and payment orders in the
context of banks.
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and transmittals of funds in amounts of
$3,000 or more.6 The Recordkeeping
Rule is intended to help law
enforcement and regulatory authorities
to detect, investigate, and prosecute
money laundering, and other financial
crimes by preserving an information
trail about persons sending and
receiving funds through the funds
transfer system.
At the same time, FinCEN issued a
separate rule—the ‘‘Travel Rule’’—that
requires banks and nonbank financial
institutions to transmit information on
certain funds transfers and transmittals
of funds to other banks or nonbank
financial institutions participating in
the transfer or transmittal.7 The Travel
Rule and the Recordkeeping Rule
complement each other. Generally, as
noted below, the Recordkeeping Rule
requires financial institutions to collect
and retain the information that, under
the Travel Rule, must be included with
transmittal orders, although the
Recordkeeping Rule also has other
applications apart from ensuring that
information is available to include with
funds transfers. FinCEN issued the
Travel Rule pursuant to statutory
authority that permits the Treasury to
require domestic financial institutions
or nonfinancial trades or businesses to
maintain appropriate procedures to
ensure compliance with the BSA or to
guard against money laundering, and to
establish AML programs.8
The Recordkeeping Rule is codified at
31 CFR 1020.410(a) and 1010.410(e),
and the Travel Rule is codified at 31
CFR 1010.410(f).9 This notice proposes
to renew the regulations that implement
the Recordkeeping Rule and the Travel
Rule, along with all of the other
regulatory requirements under 31 CFR
1010.410, 1020.410, and 1022.420.10,11
6 60
FR 220 (Jan. 3, 1995).
FR 234 (Jan. 3, 1995).
8 Id.; see also 31 U.S.C. 5218(a)(2) and (h).
9 Recordkeeping requirements for banks are set
forth in 31 CFR 1020.410(a). Recordkeeping
requirements for nonbank financial institutions are
set forth in 31 CFR 1010.410(e). The Travel Rule—
codified at 31 CFR 1010.410(f)—applies by its terms
to both bank and nonbank financial institutions.
10 OMB control number 1506–0058 applies to 31
CFR 1010.410 and 31 CFR 1022.420. OMB control
number 1506–0059 applies to 31 CFR 1020.410.
11 On October 27, 2020, the Board and FinCEN
(collectively, the ‘‘Agencies’’) issued a joint notice
of proposed rulemaking to modify the thresholds in
the Recordkeeping Rule and the Travel Rule The
proposed modification would reduce these
thresholds from $3,000 to $250 for funds transfers
and transmittals of funds that begin or end outside
the United States. The proposed modification
would also clarify the meaning of ‘‘money’’ as used
in the Recordkeeping Rule and Travel Rule to
ensure that the rules apply to domestic and crossborder transactions involving convertible virtual
currency (CVC), which is a medium of exchange
(such as cryptocurrency) that either has an
7 60
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The Recordkeeping Rule and Travel
Rule collectively require banks and
nonbank financial institutions to collect,
retain, and transmit information on
funds transfers and transmittals of funds
in amounts of $3,000 or more.
Under the Recordkeeping Rule, the
originator’s bank or transmittor’s
financial institution must collect and
retain the following information: (a)
Name and address of the originator or
transmittor; (b) the amount of the
payment or transmittal order; (c) the
execution date of the payment or
transmittal order; (d) any payment
instructions received from the originator
or transmittor with the payment or
transmittal order; and (e) the identity of
the beneficiary’s bank or recipient’s
financial institution. In addition, the
originator’s bank or transmittor’s
financial institution must retain the
following information if it receives that
information from the originator or
transmittor: (a) Name and address of the
beneficiary or recipient; (b) account
number of the beneficiary or recipient;
and (c) any other specific identifier of
the beneficiary or recipient. The
originator’s bank or transmittor’s
financial institution is required to verify
the identity of the person placing a
payment or transmittal order if the order
is made in person and the person
placing the order is not an established
customer.12 Similarly, should the
beneficiary’s bank or recipient’s
financial institution deliver the
proceeds to the beneficiary or recipient
in person, the bank or nonbank financial
institution must verify the identity of
the beneficiary or recipient—and collect
and retain various items of information
identifying the beneficiary or
recipient—if the beneficiary or recipient
is not an established customer. Finally,
an intermediary bank or financial
institution—and the beneficiary’s bank
or recipient’s financial institution—
must retain originals or copies of
payment or transmittal orders.
Under the Travel Rule, the
originator’s bank or transmittor’s
financial institution is required to
include information, including all
information required under the
Recordkeeping Rule, in a payment or
transmittal order sent by the bank or
nonbank financial institution to another
bank or nonbank financial institution in
the payment chain. An intermediary
equivalent value as currency, or acts as a substitute
for currency, but lacks legal tender status. The
Agencies further proposed to clarify that these rules
apply to domestic and cross-border transactions
involving digital assets that have legal tender status.
See 85 FR 68005 (October 27, 2020).
12 The term ‘‘established customer’’ is defined at
31 CFR 1010.100(p).
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bank or financial institution is also
required to transmit this information to
other banks or nonbank financial
institutions in the payment chain, to the
extent the information is received by the
intermediary bank or financial
institution.
B. Additional Records To Be Made and
Retained by Financial Institutions (31
CFR 1010.410(a) Through (c))
31 CFR 1010.410(a) through (c) 13
require financial institutions 14 to retain
either the original or a copy of the
following:
• A record of each extension of credit
in excess of $10,000, except if the
extension of credit is secured by an
interest in real property. The record
must include the name and address of
the person to whom the extension of
credit is made, and the amount,
purpose, and date of the extension of
credit.15
• A record of each request received or
given regarding any transaction
resulting in, or intended to result in but
later canceled if such a record is
normally made, the transfer of currency
or other monetary instruments, funds,
checks, investment securities, or credit
of more than $10,000 to or from any
person, account, or place outside the
United States.16
• A record of each request given to
another financial institution or other
person located in or outside of the
United States, regarding a transaction
intended to result in a transfer of funds,
or of currency, other monetary
instruments, checks, investment
securities, or credit, of more than
$10,000 to a person, account, or place
outside the United States.17
13 31 CFR 1010.410(d) requires the retention of a
record of information for a period of time as the
Secretary may require in an order issued under 31
CFR 1010.370(a), not to exceed five years. The
recordkeeping burden for 31 CFR 1010.410(d) is
accounted for under OMB control number 1506–
0056, which applies to 31 CFR 1010.370(a).
14 Except for 31 CFR 1010.410(e), which only
applies to financial institutions other than banks,
each of the requirements of 31 CFR 1010.410
applies to ‘‘financial institutions’’ as defined in 31
CFR 1010.100(t). This provision defines a financial
institution to include each agent, agency, branch, or
office within the United States of any person doing
business, whether or not on a regular basis or as an
organized business concern, in one or more of the
following capacities: (1) A bank (except bank credit
card systems); (2) a broker or dealer in securities;
(3) a money services business as defined in 31 CFR
1010.100(ff); (4) A telegraph company; (5) a casino;
(6) a card club; (7) a person subject to supervision
by any state or Federal bank supervisory authority;
(8) a futures commission merchant; (9) an
introducing broker in commodities; or (10) a mutual
fund.
15 31 CFR 1010.410(a).
16 31 CFR 1010.410(b).
17 31 CFR 1010.410(c).
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C. Additional Records To Be Made and
Retained by Banks (31 CFR 1020.410 (c))
31 CFR 1020.410(c), requires banks to
retain either the original or a copy of the
following: 18
• Each document granting signature
authority over each deposit or share
account, including any notations, if
such are normally made, of specific
identifying information to verify the
identity of the signer.19
• A record on each deposit or share
account, showing each transaction in, or
with respect to, that account.20
• Each check, clean draft, or money
order drawn on the bank or issued and
payable by it, with certain exceptions.21
• A record of each item in excess of
$100 comprising a debit to a customer’s
deposit or share account, with certain
exceptions.22
• A record of each item, including
checks, drafts, or transfers of credit of
more than $10,000 remitted or
transferred to a person, account, or
place outside the United States.23
• A record of each remittance or
transfer of funds, or of currency, other
monetary instruments, checks,
investment securities, or credit, of more
than $10,000 to a person, account or
place outside the United States.24
• Each check or draft in excess of
$10,000 drawn on or issued by a foreign
bank which the domestic bank has paid
or presented to a nonbank drawee for
payment.25
• Each item, including checks, drafts
or transfers of credit of more than
$10,000 received directly and not
through a domestic financial institution,
by letter, cable or any other means, from
a bank, broker or dealer in foreign
exchange outside the United States.26
• A record of each receipt of
currency, other monetary instruments,
investment securities or checks, and of
each transfer of funds or credit, of more
than $10,000 received on any one
occasion directly and not through a
domestic financial institution, from a
18 Note that 31 CFR 1020.410(b) is obsolete on its
face because the recordkeeping requirements apply
to requirements that apply within 30 days of the
sale or redemption of certificates of deposit after
May 31, 1978 and before October 1, 2003, or the
opening of deposit or share account after June 30,
1972 and before October 1, 2003.
19 31 CFR 1020.410(c)(1).
20 31 CFR 1020.410(c)(2).
21 31 CFR1020.410(c)(3). See a list of exceptions
to the recordkeeping requirement at 31 CFR
1020.410(c)(3).
22 31 CFR 1020.410(c)(4).
23 31 CFR 1020.410(c)(5).
24 31 CFR 1020.410(c)(6).
25 31 CFR 1020.410(c)(7).
26 31 CFR 1020.410(c)(8).
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bank, broker or dealer in foreign
exchange outside the United States.27
• Records prepared or received by a
bank in the ordinary course of business,
which would be needed to reconstruct
a transaction account and to trace a
check in excess of $100 deposited in
such account through its domestic
processing system or to supply a
description of a deposited check in
excess of $100. This requirement is only
applicable to demand deposits.28
• A record containing the name,
address, and taxpayer identification
number (TIN), if available, of the
purchaser of each certificate of deposit,
as well as a description of the
instrument, notation of the method of
payment, and the date of the
transactions.29
• A record containing the name,
address, and TIN, if available, of any
person presenting a certificate of deposit
for payment, as well as a description of
the instrument and the date of the
transaction.30
• Each deposit slip or credit ticket
reflecting a transaction in excess of $100
or the equivalent record for direct
deposit or other wire transfer deposit
transactions. The record must include
the amount of any currency involved.31
D. Additional Records To Be
Maintained by Providers and Sellers of
Prepaid Access (31 CFR 1022.420)
Providers and sellers of prepaid
access are a type of money services
business (MSB), as defined in
§ 1010.100(ff)(4). BSA regulations
specific to MSBs are found at 31 CFR
Chapter X. Providers and sellers of
prepaid access must maintain access to
transactional records generated in the
ordinary course of business that would
be needed to reconstruct prepaid access
activation, loads, reloads, purchases,
withdrawals, transfers, or other prepaidrelated transactions.
CFR 1020.410(c)(9).
28 31 CFR 1020.410(c)(10).
29 31 CFR 1020.410(c)(11).
30 31 CFR 1020.410(c)(12).
31 31 CFR 1020.410(c)(13).
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II. Paperwork Reduction Act of 1995
(PRA) 32
Title: Records to be made and retained
by financial institutions (31 CFR
1010.410), records to be made and
retained by banks (31 CFR 1020.410),
and additional records to be maintained
by providers and sellers of prepaid
access (31 CFR 1022.420).33
OMB Control Number: 1506–0058 and
1506–0059.34
Report Number: Not applicable.
Abstract: FinCEN is issuing this
notice to renew the OMB control
numbers for regulations requiring
certain financial institutions to make
and retain records associated with
certain types of transactions, including
funds transfers, transmittals of funds,
and prepaid access transactions, among
other types of transactions.
Affected Public: Businesses or other
for-profit institutions, and non-profit
institutions.
Type of Review:
• Renewal without change of a
currently approved information
collections.
• 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 and clarification of the
scope of the PRA burden (the ‘‘future
annual PRA burden’’).
Frequency: As required.
Estimated Number of Respondents:
28,567 financial institutions.35
Estimated Recordkeeping Burden: In
Part 1 of this notice, FinCEN describes
the breakdown of the estimated number
of financial institutions, by type,
impacted by each regulatory
requirement. In Part 2, FinCEN proposes
for review and comment a renewal of
the estimate of the traditional annual
32 Public
Law 104–13, 44 U.S.C. 3506(c)(2)(A).
of the records required to be made and
retained under 31 CFR 1010.410, 1020.410, and
1022.420 are required to be retained for five years
pursuant to 31 CFR 1010.430(d).
34 OMB control number 1506–0058 applies to 31
CFR 1010.410 and 31 CFR 1022.420. OMB control
number 1506–0059 applies to 31 CFR 1020.410.
35 Table 1 below sets forth a breakdown of the
types of financial institutions covered by this
notice.
33 All
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PRA hourly burden, which includes an
annual hourly burden estimate per
financial institution similar to that 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 financial institution, to
multiple recordkeeping requirements
within the regulations, and did not
assign an annual hourly burden
estimate, per financial institution, to
each recordkeeping requirement. The
prior renewals also did not include an
estimate of the number of transactions,
by type, for which records are required
to be made and retained. FinCEN
assesses that the volume of a given type
of transaction by financial institution,
for which a record is required to be
made and retained, would be the best
indication of the annual hourly burden
estimate per financial institution. In Part
3, FinCEN proposes for review and
comment a methodology to estimate the
hourly burden and the cost of a future
estimate of an annual PRA burden that
includes the burden and cost broken
down by each type of recordkeeping
requirement covered by the regulations
being renewed. The methodology also
includes identifying estimates for the
number of transactions conducted
annually per financial institution,
which would trigger each recordkeeping
requirement. Finally, in Part 4, FinCEN
solicits input from the public about: (a)
The accuracy of the estimate of the
traditional annual PRA burden; (b) a
more granular proposed method to
estimate a future annual PRA burden by
calculating the burden per
recordkeeping requirement; (c) the
criteria, metrics, and most appropriate
questions FinCEN should consider
when researching the information to
estimate the future annual PRA burden,
according to the methodology proposed;
and (d) any other comments about the
regulations and the current and
proposed future hourly burden and cost
estimates of these requirements.
Part 1. Breakdown of the Financial
Institutions Covered by This Notice
The breakdown of financial
institutions, by type, covered by this
notice is reflected in Table 1 below:
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TABLE 1—BREAKDOWN, BY TYPE, OF number 1506–0056, which applies to 31
FINANCIAL INSTITUTIONS COVERED CFR 1010.370(a). A notice to renew
OMB control number 1506–0056 will
BY THIS NOTICE
Type of financial institution
Banks ....................................
Brokers or dealers in securities .....................................
Futures commission merchants ................................
Money services businesses
(MSBs) that conduct
money transmission ..........
MSBs that are providers and
sellers of prepaid access ..
Total number of financial
institutions ..................
Number of
financial
institutions
36 10,542
37 3,640
38 61
39 12,692
40 1,632
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31 CFR 1010.410(d)
As noted above, the recordkeeping
burden for 31 CFR 1010.410(d) is
accounted for under OMB control
Description of Recordkeepers:
Financial institutions other than banks
that conduct transmittals of funds,
including funds transfers, in the amount
of $3,000 or more. Although the
regulation on its face would apply to all
nonbank financial institutions, mostly
money transmitters that conduct
transmittals of funds would be
impacted.
Jkt 253001
Description of Recordkeepers:
Financial institutions that are the
transmitting or intermediary financial
institution in a funds transfer or
transmittal of funds. Although the
regulation on its face would apply to all
financial institutions, only banks,
including credit unions, and money
transmitters that conduct funds transfers
or transmittals of funds would be
impacted.
31 CFR 1020.410
Description of Recordkeepers: Banks,
including credit unions, that conduct
funds transfers by acting as the
transmitting, intermediary, or recipient
bank outlined in 31 CFR 1020.410(a),
and banks that conduct transactions
outlined in 31 CFR 1020.410(c).
31 CFR 1022.420
Description of Recordkeepers: MSBs
that are provider and sellers of prepaid
access, as defined in 31 CFR
1010.100(ff)(4) and (7), that conduct
prepaid access-related transactions.
Part 2. Traditional Annual PRA Burden
and Cost
36 According to the Federal Deposit Insurance
Corporation (FDIC) there were 5,103 FDIC-insured
banks as of March 31, 2020. According to the
Federal Reserve Board (FRB), there were 203 other
entities supervised by the FRB, as of June 16, 2020,
that fall within the definition of bank (20 Edge Act
institutions, 15 agreement corporations (as defined
in 12 CFR 28.2), and 168 foreign banking
organizations). According to the National Credit
Union Administration there were 5,236 federally
regulated credit unions as of December 31, 2019.
37 According to the Securities and Exchange
Commission (SEC), there were 3,640 brokers or
dealers in securities registered with the SEC, as of
March 31, 2020.
38 According to the Commodities and Futures
Trading Commission (CFTC), there were 61 futures
commission merchants registered with the CFTC, as
of March 31, 2020.
39 As of June 2020, there were 12,692 MSBs
registered with FinCEN that indicated they were
conducting money transmission.
40 FinCEN’s MSB registration database. See
https://www.fincen.gov/msb-state-selector.
21:21 Dec 22, 2020
31 CFR 1010.410(e)
31 CFR 1010.410(f)
28,567
31 CFR 1010.410(a) Through (c)
Description of Recordkeepers:
Financial institutions providing
extensions of credit in excess of $10,000
(other than those secured by real
property), and engaging in transfers of
funds, currency, other monetary
instruments, checks, investment
securities, or credit of more than
$10,000 to or from the United States.
Although the regulations on their face
would apply to all financial institutions,
only banks, credit unions, brokers or
dealers in securities, futures
commission merchants (FCMs), and
money transmitters would be likely to
issue extensions of credit in excess of
$10,000, or transfer funds, currency,
monetary instruments, checks,
investment securities, or credit of more
than $10,000 to or from the United
States.
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also be published in the Federal
Register in December 2020.
OMB Control Number 1506–0058
31 CFR 1010.410(a) Through (c)
Each financial institution must retain
an original or a copy of records related
to extensions of credit in excess of
$10,000 (other than those secured by
real property), and an original or copy
of records related to transfers of funds,
currency, other monetary instruments,
checks, investment securities, or credit
of more than $10,000 to or from the
United States.41 Due to the challenges of
obtaining the total number of such
records required to be maintained per
financial institution, in its most recent
control number renewal, FinCEN
estimated that the annual recordkeeping
41 31
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84109
burden per financial institution for
these requirements was 50 hours.42
FinCEN continues to estimate that the
annual hourly burden of complying
with 31 CFR 1010.410(a) through (c) is
50 hours per financial institution.
26,935 financial institutions 43
multiplied by 50 hours, results in a total
annual hourly burden estimate of
1,346,750 hours.
31 CFR 1010.410(e)
Each nonbank financial institution
must collect and retain information
related to transmittals of funds in
amounts of $3,000 or more. Due to the
challenges of obtaining the total number
of transmittals of funds of $3,000 or
more conducted per nonbank financial
institution, FinCEN estimated, in its
most recent control number renewal,
that the annual recordkeeping burden
per financial institution was 16 hours.44
FinCEN continues to estimate that the
annual hourly burden to comply with
31 CFR 1010.410(e) is 16 hours per
financial institution.
12,692 MSBs 45 providing money
transmission services multiplied by 16
hours, results in a total annual hourly
burden estimate of 203,072 hours.
31 CFR 1010.410(f)
Each financial institution must
transmit information on funds transfers
and transmittals of funds when acting as
the transmitting or intermediary
financial institution. Due to the
challenges of obtaining the total number
of funds transfers or transmittals of
funds for which a financial institution
was acting as the transmitting or
intermediary financial institution,
FinCEN estimated, in its most recent
control number renewal, that the annual
recordkeeping burden per financial
institution was 12 hours.46 FinCEN
continues to estimate that the annual
hourly burden to comply with 31 CFR
1010.410(f) is 12 hours per financial
institution.
42 82
FR 31686, 31688 (July 7, 2017).
Table 1, supra. 26,935 represents the
number of financial institutions listed in the title of
this notice, other than MSBs that are providers and
sellers of prepaid access, because such MSBs would
not conduct transactions described in 31 CFR
1010.410(a) through (c).
44 82 FR 31686, 31688 (July 7, 2017). Note that,
due to an administrative error, the 2017 control
number renewal inadvertently describes this 16
hour burden as applicable to the requirements of
both 31 CFR 1010.410(e) and 31 CFR 1010.410(f).
45 See Table 1 supra for the estimated number of
MSBs that provide money transmission services.
46 82 FR 31686, 31688 (July 7, 2017). Note that,
due to an administrative error, the 2017 control
number renewal inadvertently describes this 12
hour burden as applicable to the requirements of 31
CFR 1010.410(g) rather than 31 CFR 1010.410(f).
43 See
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23,234 banks and MSBs conducting
money transmission,47 multiplied by 12
hours, results in a total annual hourly
burden estimate of 278,808 hours.
31 CFR 1022.420
Each provider or seller of prepaid
access is required to maintain access to
transactional records generated in the
ordinary course of business that would
be needed to reconstruct prepaid access
activation, loads, reloads, purchases,
withdrawals, transfers, or other prepaidrelated transactions. Due to the
challenges of obtaining the total number
of prepaid access transactions, FinCEN
estimated, in its most recent control
number renewal, that the annual
recordkeeping burden per financial
institution was 16 hours. FinCEN
continues to estimate that the annual
hourly burden to comply with 31 CFR
1022.420 is 16 hours per financial
institution.
1,632 MSBs which are providers or
sellers of prepaid access,48 multiplied
by 16 hours, results in a total annually
hourly burden estimate of 26,112 hours.
Total Annual Traditional PRA Hourly
Burden for OMB Control Number 1506–
0058: 1,854,742 hours (1,346,750 +
203,072 + 278,808 + 26,112).49
of the recordkeeping requirements per
bank, as required by 31 CFR
1020.410(c), FinCEN estimated, in its
most recent control number renewal,
that the annual recordkeeping burden
per bank was 100 hours. FinCEN
continues to estimate that the annual
hourly burden to comply with all of the
recordkeeping requirements in 31 CFR
1020.410 is 100 hours per bank.
10,542 banks 50 multiplied by 100
hours results in a total annual hourly
burden estimate of 1,054,200 hours.
Total Annual Traditional PRA Hourly
Burden for OMB Control Number 1506–
0059: 1,054,200 hours.
Total Annual Traditional PRA Hourly
Burden for OMB Control Numbers 1506–
0058 and 1506–0059.
FinCEN’s estimate of the total
traditional annual PRA burden for each
of the recordkeeping requirements being
renewed in this notice is 2,908,942
hours, as detailed in Table 2 below:
OMB Control Number 1506–0059
31 CFR 1020.410
Banks, including credit unions, are
required to (i) collect and retain
information on funds transfers when
acting as the transmitting, intermediary,
or recipient bank, and (ii) retain an
original or copy of records, when
conducting transactions outlined in 31
CFR 1020.410(c). Due to the challenges
of obtaining the total number of funds
transfers of $3,000 or more conducted
by each bank acting as the transmitting,
intermediary, or recipient bank, and the
challenges of obtaining the total number
of transactions that would trigger each
TABLE 2—BREAKDOWN OF FINANCIAL INSTITUTIONS IMPACTED BY EACH REGULATORY REQUIREMENT, AND THE
ESTIMATED TOTAL ANNUAL BURDEN HOURS PER REQUIREMENT
Number of
financial
institutions
Traditional
annual burden
estimate per
financial
institution
(hours)
Total annual
burden hours
per regulatory
requirement
Regulatory requirement
Type of financial institution impacted by the requirement
31 CFR 1010.410(a)–(c) ..................................................
26,935
50
1,346,750
1010.410(e) ........................................................
1010.410(f) .........................................................
1022.420 ............................................................
1020.410 ............................................................
Banks, brokers or dealers in securities, FCMs, and
MSBs that conduct money transmission.
MSBs that conduct money transmission ........................
Banks and MSBs the conduct money transmission .......
MSBs that are providers or sellers of prepaid access ...
Banks ..............................................................................
12,692
23,234
1,632
10,542
16
12
16
100
203,072
278,808
26,112
1,054,200
Total annual hour burden hours ...............................
.........................................................................................
........................
........................
2,908,942
31
31
31
31
CFR
CFR
CFR
CFR
To calculate the hourly costs of the
burden estimate, FinCEN identified
three roles and corresponding staff
positions involved in maintaining
records as required by 31 CFR 1010.410,
1020.410, and 1022.420: (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 recordkeeping).
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),51 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
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General supervision ..........................
Direct supervision .............................
Clerical work (research, review, and
recordkeeping).
11–3031
13–1041
43–3099
47 See Table 1 supra. 23,234 equates to 10,542
banks and 12,692 MSBs that provide money
transmission services.
48 See Table 1 supra for the total number of MSBs
that are providers or sellers of prepaid access.
49 1,346,750 hours (31 CFR 1010.410(a)–(c)) +
203,072 hours (31 CFR 1010.410(e)) + 278,808
hours (31 CFR 1010.410(f)) + 26,112 hours (31 CFR
1022.420) = 1,854,742 hours.
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21:21 Dec 22, 2020
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Median hourly
wage
BLS-name
Financial Manager ............................
Compliance Officer ...........................
Financial Clerk .................................
50 See
Table 1 supra for the total number of banks.
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
51 The
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$62.45
33.20
20.40
Benefit factor
1.50
1.50
1.50
Fully-loaded
hourly wage
$93.68
49.80
30.60
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.
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FinCEN estimates that, in general and
on average,52 each role would spend
different amounts of time on each
portion of the traditional annual PRA
burden, as follows:
The cost of each hour of burden,
broken down by role, to produce and
maintain records as outlined in 31 CFR
1010.410, 1020.410, and 1022.420
would be $37.00 as set out in Table 4
below:
TABLE 4—WEIGHTED AVERAGE HOURLY COST OF MAKING AND MAINTAINING THE RECORDS
General supervision
% Time
Direct supervision
Hourly cost
5
% Time
$4.68
Clerical work
Hourly cost
15
% Time
Weighted average
hourly cost
Hourly cost
$7.47
80
$24.48
$37.00
$36.63 rounded to $37.00.
The total estimated cost of the
traditional annual PRA burden for the
regulatory requirements being renewed
in this notice is $107,630,854, as
reflected in Table 5 below:
TABLE 5—TOTAL COST OF TRADITIONAL ANNUAL PRA BURDEN
OMB control No.
Hourly cost
Total Cost
1506–0058 ...................................................................................................................................
1506–0059 ...................................................................................................................................
1,854,742
1,054,200
$37
37
$68,625,454
39,005,400
Total cost ..............................................................................................................................
........................
........................
107,630,854
Part 3—Future Annual PRA Burden
In the future, FinCEN will include the
burden and cost for each type of
recordkeeping requirement covered by
the regulations being renewed. The
future burden estimate will also include
estimates of the number of transactions
conducted annually per financial
institution, which trigger each
recordkeeping requirement.
31 CFR 1010.410(a) Through (c)
As noted above, each financial
institution must retain an original or a
copy of records related to extensions of
credit in excess of $10,000 (other than
those secured by real property), and an
original or copy of records related to
transfers of funds, currency, other
monetary instruments, checks,
investment securities, or credit of more
than $10,000 to or from the United
States. In order to more accurately
estimate the related PRA burden in the
future, FinCEN intends to obtain a better
understanding of how many types of
financial institutions conduct these
transactions, and the average volume of
such transactions per financial
institution.
order to more accurately estimate the
related PRA burden in the future,
FinCEN intends to obtain a better
understanding of the volume of
transmittals of funds conducted by
MSBs, and determine the average
volume of transmittals of funds per the
transmitting, intermediary, or recipient
MSB.
accurately estimate the related PRA
burden in the future, FinCEN intends to
obtain a better understanding of the
volume of prepaid access transactions
conducted by MSBs, and determine the
average volume of prepaid transactions
per MSB.
31 CFR 1010.410(f)
As described in greater detail in
Section I above, banks, including credit
unions, are required to collect and
retain information on funds transfers in
amounts of $3,000 or more, conducted
by the bank acting as the transmitting,
intermediary, or recipient bank. In order
to more accurately estimate the PRA
burden in the future, FinCEN intends to
obtain a better understanding of the
volume of funds transfers conducted by
banks, and determine the average
volume of funds transfer per
transmitting, intermediary, or recipient
bank.
As described in greater detail in
Section I above, each financial
institution must transmit information on
funds transfers and transmittals of funds
when acting as the transmitting or the
intermediary financial. In order to more
accurately estimate the related PRA
burden in the future, FinCEN intends to
obtain a better understanding of the
volume of funds transfers and
transmittals of funds conducted by
banks and MSBs, and determine the
average volume of funds transfer per
bank and transmittals of funds per
transmitting or intermediary bank or
MSB.
31 CFR 1022.420
As described in greater detail in
Section I above, each nonbank financial
institution must collect and retain
information related to transmittals of
funds in amounts of $3,000 or more. In
Each provider or seller of prepaid
access is required to maintain access to
transactional records generated in the
ordinary course of business that would
be needed to reconstruct prepaid access
activation, loads, reloads, purchases,
withdrawals, transfers, or other prepaidrelated transactions. In order to more
52 By ‘‘in general,’’ FinCEN means without regard
to outliers (e.g., financial institutions that conduct
transactions that trigger the recordkeeping
requirements described in this notice with
complexities or volumes that are uncommonly
higher or lower than those of the population at
31 CFR 1010.410(e)
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Hourly burden
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31 CFR 1020.410(a)
31 CFR 1020.410(c)
As described in greater detail in
Section I, banks, including credit
unions, are required to retain an original
or copy of the records outlined in 31
CFR 1020.410(c). In order to more
accurately estimate the PRA burden in
the future, FinCEN intends to obtain a
better understanding of how many
banks conducted each of the 13 types of
transactions described in 31 CFR
large). By ‘‘on average,’’ FinCEN means the mean
of the distribution of each subset of the population.
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1020.410(c), and determine the average
volume of these transactions per bank.
FinCEN does not have the information
needed to estimate the number of
annual transactions that trigger each
recordkeeping requirement being
renewed in this notice. For that reason,
FinCEN is relying on estimates used in
prior renewals of these OMB control
numbers and the applicable regulations.
FinCEN further recognizes that after
receiving public comments as a result of
this notice, future annual PRA hourly
burden and cost estimates may vary
significantly. In order to arrive at more
precise estimates of net BSA hourly
burden and cost, FinCEN intends to
conduct more granular studies in the
near future, regarding the types and
volume of transactions conducted
annually, which trigger each
recordkeeping requirement, and the
time it takes to collect and record the
information required for each
recordkeeping requirement.53 The data
obtained in these studies also may result
in a significant variation of the
estimated annual PRA burden.
Estimated Number of Respondents:
28,567, as set out in Table 1.
Estimated Total Annual
Recordkeeping Burden: The estimated
total annual PRA burden is 2,908,942
hours, as set out in Table 2.
Estimated Total Annual
Recordkeeping Cost: The estimated total
annual PRA cost is $107,630,854, as set
out in Table 5.
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.
53 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). For example, depending on the nature
of the transaction, a financial institution may be
collecting and maintaining some of the same
information on funds transfers, transmittals of
funds, prepaid access transactions, as well as other
transactions that are required to be recorded in 31
CFR 1010.410, 1020.410, and 1022.420 in order to
satisfy other obligations. Those obligations may
include (i) protecting the financial institution from
fraud against itself or its customers, (ii) complying
with other non-BSA regulatory requirements such
as those imposed by the specific Federal functional
regulator, or (iii) maintaining proper accounting
information.
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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
estimate of the burden; (ii) the estimated
number of hours required by each
portion of the burden; and (iii) the
organizational levels of the financial
institution engaged in each portion of
the burden, their estimated hourly
remuneration, and the estimated
proportion of participation by each role.
FinCEN encourages commenters to
include any publicly available sources
for alternative estimates or
methodologies.
(b) Specific Request for Comments on
the Proposed Criteria for Determining
the Scope of the Future Annual PRA
Hourly Burden and Cost Estimate
FinCEN invites comments on any
aspect of the criteria for a future
estimate of the annual PRA burden, as
set out in Part 3 of this notice.
(c) 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
attributable solely to the regulations
covered by this notice (i.e., the hourly
burden and cost of complying with the
recordkeeping requirements imposed
exclusively by the BSA, which are not
used to satisfy contractual obligations,
other regulatory requirements, or
business purposes of the financial
institution). The future annual PRA
hourly burden and cost estimate must
take into consideration only the
information collected and recorded that
is used exclusively to comply with
requirements under 31 CFR 1010.410,
1020.410, and 1022.420.
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. Also, due to the difficulty
involved in estimating the number of
transmittals of funds conducted by
MSBs, the number of funds transfers
conducted by banks, and the number of
prepaid transactions conducted by
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MSBs, along with the number of other
types of transactions conducted
financial institutions, as described in
this notice, FinCEN welcomes any
suggestions as to how to derive these
estimates by using publicly available
financial information.
(d) Specific Questions for Comment
Associated With Making and Retaining
Records Required by the Regulations
Described in This Notice
(1) Complying With 31 CFR 1010.410(a)
Through (c)
• Is FinCEN’s assertion correct that
banks, credit unions, FCMs, and MSBs
are the only financial institutions that
conduct extensions of credit in excess of
$10,000 (other than those secured by
real property)?
• On average, how many extensions
of credit in excess of $10,000 (other than
those secured by real property) does
your financial institution issue
annually, which trigger the
recordkeeping requirement in 31 CFR
1010.410(a)?
• Is FinCEN’s assertion correct that
banks, credit unions, FCMs, and MSB
are the only financial institutions that
conduct transactions which trigger the
recordkeeping requirements in 31 CFR
1010.410(b) and (c)?
• On average, how many transfers
does your financial institution conduct
annually which trigger the
recordkeeping requirements in 31 CFR
1010.410(b) and (c)?
(2) Complying With 31 CFR 1010.410(e)
• Is FinCEN’s assertion correct that
money transmitters are the only
nonbank financial institutions that
conduct transmittals of funds in the
amount of $3,000 or more?
• On average, how many transmittals
of funds in the amount of $3,000 or
more does your MSB conduct annually
when acting as the transmitting,
intermediary, or recipient MSB in a
transmittal of funds?
• On average, how long does it take
your MSB to collect and retain the
records required to be maintained when
you are acting as the transmitting,
intermediary, or recipient MSB in the
transmittal of funds?
(3) Complying With 31 CFR 1010.410(f)
• Is FinCEN’s assertion correct that
banks, credit unions, and money
transmitters are the only financial
institutions that act as an intermediary
financial institution in a funds transfer
or transmittal of funds?
• On average, how often is your
financial institution the intermediary in
a funds transfer or transmittal of funds?
E:\FR\FM\23DEN1.SGM
23DEN1
Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Notices
• On average, how long does it take
your financial institution to record and
transmit the required information on a
funds transfer or transmittal of funds?
(4) Complying With 31 CFR 1020.410(a)
• On average, how many funds
transfers in the amount of $3,000 or
more does your bank conduct annually
as the transmitting, intermediary, or
recipient bank in a funds transfer?
• On average, how long does it take
your financial institution to collect and
retain the records required to be
maintained when you are acting as the
transmitting, intermediary, or recipient
bank in a funds transfer?
(5) Complying With 31 CFR 1020.410(c)
• On average, how often does you
bank conduct each of the transactions
described in 31 CFR 1020.410(c) as
explained in further detail in Section I?
• On average, how long does it take
your bank to collect and retain the
records required to be maintained when
you conduct one of the transactions
described in 31 CFR 1020.410(c)?
(6) Complying With 31 CFR 1022.420
• On average, how many of the
following prepaid transactions does
your financial institution conduct:
Access activations, loads, reloads,
purchases, withdrawals, transfers, and
other prepaid access-related
transactions?
jbell on DSKJLSW7X2PROD with NOTICES
(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 Mosier,
Deputy Director, Financial Crimes
Enforcement Network.
[FR Doc. 2020–28364 Filed 12–22–20; 8:45 am]
BILLING CODE 4810–02–P
VerDate Sep<11>2014
21:21 Dec 22, 2020
Jkt 253001
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Notice of OFAC Sanctions Actions
Imposed on Persons Identified by the
Secretary of State Pursuant to the
Countering America’s Adversaries
Through Sanctions Act
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:
SUMMARY: The U.S. Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing the names
of one or more persons that have been
placed on OFAC’s Specially Designated
Nationals and Blocked Persons List
(SDN List) based on OFAC’s action to
impose sanctions on persons identified
by the Secretary of State pursuant to the
Countering America’s Adversaries
Through Sanctions Act. All property
and interests in property subject to U.S.
jurisdiction of these persons are
blocked, and U.S. persons are generally
prohibited from engaging in transactions
with them.
DATES: See SUPPLEMENTARY INFORMATION
section for applicable date(s).
FOR FURTHER INFORMATION CONTACT:
OFAC: Associate Director for Global
Targeting, tel.: 202–622–2420; Assistant
Director for Sanctions Compliance &
Evaluation, tel.: 202–622–2490;
Assistant Director for Licensing, tel.:
202–622–2480.
SUPPLEMENTARY INFORMATION:
Electronic Availability
The Specially Designated Nationals
and Blocked Persons List and additional
information concerning OFAC sanctions
programs are available on OFAC’s
website (www.treas.gov/ofac).
Notice of OFAC Actions
Background: Section 106(a) of the
Countering America’s Adversaries
Through Sanctions Act (CAATSA)
requires the Secretary of State to submit
to the appropriate congressional
committees, no later than 90 days after
August 2, 2017, the date of enactment of
CAATSA, and annually thereafter, a list
of each person the Secretary determines,
based on credible evidence, on or after
August 2, 2017: (1) Is responsible for
extrajudicial killings, torture, or other
gross violations of internationally
recognized human rights committed
against individuals in Iran who seek (A)
to expose illegal activity carried out by
officials of the Government of Iran; or
(B) to obtain, exercise, defend, or
PO 00000
Frm 00231
Fmt 4703
Sfmt 4703
84113
promote internationally recognized
human rights and freedoms, such as the
freedoms of religion, expression,
association, and assembly, and the
rights to a fair trial and democratic
elections; or (2) acts as an agent of or on
behalf of a foreign person in a matter
relating to an activity described in
paragraph (1) above. Section 106(b) of
CAATSA authorizes the Secretary of the
Treasury, in consultation with the
Secretary of State, pursuant to authority
delegated by the President, to block all
transactions in all property and interests
in property of a person on the list
required by section 106(a) of CAATSA
in accordance with the International
Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), if such property
and interests in property are in the
United States, come within the United
States, or are or come within the
possession or control of a United States
person.
The Secretary of State has identified
the following persons in a list submitted
to the appropriate congressional
committees pursuant to section 106(a) of
CAATSA. Accordingly, on September
24, 2020, the Director of OFAC, acting
pursuant to delegated authority, has
taken the actions described below to
impose the sanctions set forth in Section
106(b)(1) of CAATSA with respect to the
persons listed below.
Entities
1. ADEL ABAD PRISON (a.k.a.
ADELABAD PRISON; a.k.a. SHIRAZ
CENTRAL PRISON; a.k.a. ‘‘PROSPEROUS
PLACE OF JUSTICE’’), Shiraz, Fars Province,
Iran; Additional Sanctions Information—
Subject to Secondary Sanctions [CAATSA—
IRAN].
2. BRANCH 1 OF THE SHIRAZ
REVOLUTIONARY COURT (a.k.a. FIRST
BRANCH OF THE REVOLUTIONARY
COURT OF SHIRAZ; a.k.a. FIRST BRANCH
OF THE SHIRAZ REVOLUTIONARY
COURT), New Quran Boulevard, District 3,
Shiraz City, Fars Province, Iran; Additional
Sanctions Information—Subject to Secondary
Sanctions [CAATSA—IRAN].
3. ORUMIYEH PRISON (a.k.a. URMIA
CENTRAL PRISON; a.k.a. URMIA PRISON),
Orumiyeh City, West Azerbaijan Province,
Iran; Additional Sanctions Information—
Subject to Secondary Sanctions [CAATSA—
IRAN].
4. VAKILABAD PRISON (a.k.a. MASHHAD
CENTRAL PRISON; a.k.a. MASHHAD
PRISON; a.k.a. VAKIL ABAD PRISON),
Mashhad City, Mashhad Province, Iran;
Additional Sanctions Information—Subject
to Secondary Sanctions [CAATSA—IRAN].
Individuals
E:\FR\FM\23DEN1.SGM
23DEN1
Agencies
[Federal Register Volume 85, Number 247 (Wednesday, December 23, 2020)]
[Notices]
[Pages 84105-84113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28364]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Regulations Requiring
Records to be Made and Retained by Financial Institutions, Banks, and
Providers and Sellers of Prepaid Access
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 currently approved information collections found in
existing Bank Secrecy Act regulations. Specifically,
[[Page 84106]]
the regulations covered by this notice and request for comments require
certain financial institutions to make and retain records associated
with certain types of transactions, including funds transfers,
transmittals of funds, and prepaid access transactions, among other
types of transactions. Although no changes are proposed to the
information collections themselves, this request for comments covers a
future expansion of the scope of the annual hourly burden and cost
estimates 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-2020-0016 and the specific Office of Management and Budget (OMB)
control numbers 1506-0058 and 1506-0059.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2020-0016 and OMB control number 1506-0058 and 1506-0059.
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) (Public Law 107-56) and other
legislation. The BSA is codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-
1959, 31 U.S.C. 5311-5314 and 5316-5332, and notes thereto, with
implementing regulations at 31 CFR Chapter X.
The BSA authorizes the Secretary of the Treasury, inter alia, to
require financial institutions to keep records and file reports that
are determined to have a high degree of usefulness in criminal, tax,
and regulatory matters, or in the conduct of intelligence or counter-
intelligence activities to protect against international terrorism, and
to implement anti-money laundering (AML) programs and compliance
procedures.\1\ Regulations implementing the BSA appear at 31 CFR
Chapter X. The authority of the Secretary of the Treasury (the
``Secretary'') to administer the BSA has been delegated to the Director
of FinCEN.\2\
---------------------------------------------------------------------------
\1\ 31 U.S.C. 5311. 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).
---------------------------------------------------------------------------
The Annunzio-Wylie Anti-Money Laundering Act of 1992 (Public Law
102-550) (Annunzio-Wylie) amended the BSA framework. Annunzio-Wylie
authorizes the Secretary and the Board of Governors of the Federal
Reserve System (the ``Board'') to jointly issue regulations requiring
insured depository institutions to maintain records of domestic funds
transfers.\3\ The Secretary, but not the Board, is authorized to
promulgate recordkeeping requirements for domestic wire transfers by
nonbank financial institutions.\4\ In addition, Annunzio-Wylie
authorizes the Secretary and the Board, after consultation with state
banking supervisors, to jointly issue regulations requiring insured
depository institutions and certain nonbank financial institutions to
maintain records of international funds transfers and transmittals of
funds.\5\
---------------------------------------------------------------------------
\3\ 12 U.S.C. 1829b(b)(2).
\4\ 12 U.S.C. 1953.
\5\ 12 U.S.C. 1829b(b)(3). The terms ``funds transfer,''
``originator,'' ``beneficiary,'' and ``payment order'' apply only in
the context of banks. The term ``transmittal of funds'' includes a
funds transfer and is its counterpart in the context of nonbank
financial institutions. See 31 CFR 1010.100(ddd). Transmittors,
recipients, and transmittal orders in the context of nonbank
financial institutions play the same role as originators,
beneficiaries, and payment orders in the context of banks.
---------------------------------------------------------------------------
A. Information Required To Be Collected, Retained, and Transmitted
under the Recordkeeping and Travel Rules (31 CFR 1020.410(a) and 31 CFR
1010.410(e) and (f)).
On January 3, 1995, Treasury and the Board jointly issued a
recordkeeping rule (the ``Recordkeeping Rule'') that requires banks and
nonbank financial institutions to collect and retain information
related to funds transfers and transmittals of funds in amounts of
$3,000 or more.\6\ The Recordkeeping Rule is intended to help law
enforcement and regulatory authorities to detect, investigate, and
prosecute money laundering, and other financial crimes by preserving an
information trail about persons sending and receiving funds through the
funds transfer system.
---------------------------------------------------------------------------
\6\ 60 FR 220 (Jan. 3, 1995).
---------------------------------------------------------------------------
At the same time, FinCEN issued a separate rule--the ``Travel
Rule''--that requires banks and nonbank financial institutions to
transmit information on certain funds transfers and transmittals of
funds to other banks or nonbank financial institutions participating in
the transfer or transmittal.\7\ The Travel Rule and the Recordkeeping
Rule complement each other. Generally, as noted below, the
Recordkeeping Rule requires financial institutions to collect and
retain the information that, under the Travel Rule, must be included
with transmittal orders, although the Recordkeeping Rule also has other
applications apart from ensuring that information is available to
include with funds transfers. FinCEN issued the Travel Rule pursuant to
statutory authority that permits the Treasury to require domestic
financial institutions or nonfinancial trades or businesses to maintain
appropriate procedures to ensure compliance with the BSA or to guard
against money laundering, and to establish AML programs.\8\
---------------------------------------------------------------------------
\7\ 60 FR 234 (Jan. 3, 1995).
\8\ Id.; see also 31 U.S.C. 5218(a)(2) and (h).
---------------------------------------------------------------------------
The Recordkeeping Rule is codified at 31 CFR 1020.410(a) and
1010.410(e), and the Travel Rule is codified at 31 CFR 1010.410(f).\9\
This notice proposes to renew the regulations that implement the
Recordkeeping Rule and the Travel Rule, along with all of the other
regulatory requirements under 31 CFR 1010.410, 1020.410, and
1022.420.\10,11\
---------------------------------------------------------------------------
\9\ Recordkeeping requirements for banks are set forth in 31 CFR
1020.410(a). Recordkeeping requirements for nonbank financial
institutions are set forth in 31 CFR 1010.410(e). The Travel Rule--
codified at 31 CFR 1010.410(f)--applies by its terms to both bank
and nonbank financial institutions.
\10\ OMB control number 1506-0058 applies to 31 CFR 1010.410 and
31 CFR 1022.420. OMB control number 1506-0059 applies to 31 CFR
1020.410.
\11\ On October 27, 2020, the Board and FinCEN (collectively,
the ``Agencies'') issued a joint notice of proposed rulemaking to
modify the thresholds in the Recordkeeping Rule and the Travel Rule
The proposed modification would reduce these thresholds from $3,000
to $250 for funds transfers and transmittals of funds that begin or
end outside the United States. The proposed modification would also
clarify the meaning of ``money'' as used in the Recordkeeping Rule
and Travel Rule to ensure that the rules apply to domestic and
cross-border transactions involving convertible virtual currency
(CVC), which is a medium of exchange (such as cryptocurrency) that
either has an equivalent value as currency, or acts as a substitute
for currency, but lacks legal tender status. The Agencies further
proposed to clarify that these rules apply to domestic and cross-
border transactions involving digital assets that have legal tender
status. See 85 FR 68005 (October 27, 2020).
---------------------------------------------------------------------------
[[Page 84107]]
The Recordkeeping Rule and Travel Rule collectively require banks
and nonbank financial institutions to collect, retain, and transmit
information on funds transfers and transmittals of funds in amounts of
$3,000 or more.
Under the Recordkeeping Rule, the originator's bank or
transmittor's financial institution must collect and retain the
following information: (a) Name and address of the originator or
transmittor; (b) the amount of the payment or transmittal order; (c)
the execution date of the payment or transmittal order; (d) any payment
instructions received from the originator or transmittor with the
payment or transmittal order; and (e) the identity of the beneficiary's
bank or recipient's financial institution. In addition, the
originator's bank or transmittor's financial institution must retain
the following information if it receives that information from the
originator or transmittor: (a) Name and address of the beneficiary or
recipient; (b) account number of the beneficiary or recipient; and (c)
any other specific identifier of the beneficiary or recipient. The
originator's bank or transmittor's financial institution is required to
verify the identity of the person placing a payment or transmittal
order if the order is made in person and the person placing the order
is not an established customer.\12\ Similarly, should the beneficiary's
bank or recipient's financial institution deliver the proceeds to the
beneficiary or recipient in person, the bank or nonbank financial
institution must verify the identity of the beneficiary or recipient--
and collect and retain various items of information identifying the
beneficiary or recipient--if the beneficiary or recipient is not an
established customer. Finally, an intermediary bank or financial
institution--and the beneficiary's bank or recipient's financial
institution--must retain originals or copies of payment or transmittal
orders.
---------------------------------------------------------------------------
\12\ The term ``established customer'' is defined at 31 CFR
1010.100(p).
---------------------------------------------------------------------------
Under the Travel Rule, the originator's bank or transmittor's
financial institution is required to include information, including all
information required under the Recordkeeping Rule, in a payment or
transmittal order sent by the bank or nonbank financial institution to
another bank or nonbank financial institution in the payment chain. An
intermediary bank or financial institution is also required to transmit
this information to other banks or nonbank financial institutions in
the payment chain, to the extent the information is received by the
intermediary bank or financial institution.
B. Additional Records To Be Made and Retained by Financial Institutions
(31 CFR 1010.410(a) Through (c))
31 CFR 1010.410(a) through (c) \13\ require financial institutions
\14\ to retain either the original or a copy of the following:
---------------------------------------------------------------------------
\13\ 31 CFR 1010.410(d) requires the retention of a record of
information for a period of time as the Secretary may require in an
order issued under 31 CFR 1010.370(a), not to exceed five years. The
recordkeeping burden for 31 CFR 1010.410(d) is accounted for under
OMB control number 1506-0056, which applies to 31 CFR 1010.370(a).
\14\ Except for 31 CFR 1010.410(e), which only applies to
financial institutions other than banks, each of the requirements of
31 CFR 1010.410 applies to ``financial institutions'' as defined in
31 CFR 1010.100(t). This provision defines a financial institution
to include each agent, agency, branch, or office within the United
States of any person doing business, whether or not on a regular
basis or as an organized business concern, in one or more of the
following capacities: (1) A bank (except bank credit card systems);
(2) a broker or dealer in securities; (3) a money services business
as defined in 31 CFR 1010.100(ff); (4) A telegraph company; (5) a
casino; (6) a card club; (7) a person subject to supervision by any
state or Federal bank supervisory authority; (8) a futures
commission merchant; (9) an introducing broker in commodities; or
(10) a mutual fund.
---------------------------------------------------------------------------
A record of each extension of credit in excess of $10,000,
except if the extension of credit is secured by an interest in real
property. The record must include the name and address of the person to
whom the extension of credit is made, and the amount, purpose, and date
of the extension of credit.\15\
---------------------------------------------------------------------------
\15\ 31 CFR 1010.410(a).
---------------------------------------------------------------------------
A record of each request received or given regarding any
transaction resulting in, or intended to result in but later canceled
if such a record is normally made, the transfer of currency or other
monetary instruments, funds, checks, investment securities, or credit
of more than $10,000 to or from any person, account, or place outside
the United States.\16\
---------------------------------------------------------------------------
\16\ 31 CFR 1010.410(b).
---------------------------------------------------------------------------
A record of each request given to another financial
institution or other person located in or outside of the United States,
regarding a transaction intended to result in a transfer of funds, or
of currency, other monetary instruments, checks, investment securities,
or credit, of more than $10,000 to a person, account, or place outside
the United States.\17\
---------------------------------------------------------------------------
\17\ 31 CFR 1010.410(c).
---------------------------------------------------------------------------
C. Additional Records To Be Made and Retained by Banks (31 CFR 1020.410
(c))
31 CFR 1020.410(c), requires banks to retain either the original or
a copy of the following: \18\
---------------------------------------------------------------------------
\18\ Note that 31 CFR 1020.410(b) is obsolete on its face
because the recordkeeping requirements apply to requirements that
apply within 30 days of the sale or redemption of certificates of
deposit after May 31, 1978 and before October 1, 2003, or the
opening of deposit or share account after June 30, 1972 and before
October 1, 2003.
---------------------------------------------------------------------------
Each document granting signature authority over each
deposit or share account, including any notations, if such are normally
made, of specific identifying information to verify the identity of the
signer.\19\
---------------------------------------------------------------------------
\19\ 31 CFR 1020.410(c)(1).
---------------------------------------------------------------------------
A record on each deposit or share account, showing each
transaction in, or with respect to, that account.\20\
---------------------------------------------------------------------------
\20\ 31 CFR 1020.410(c)(2).
---------------------------------------------------------------------------
Each check, clean draft, or money order drawn on the bank
or issued and payable by it, with certain exceptions.\21\
---------------------------------------------------------------------------
\21\ 31 CFR1020.410(c)(3). See a list of exceptions to the
recordkeeping requirement at 31 CFR 1020.410(c)(3).
---------------------------------------------------------------------------
A record of each item in excess of $100 comprising a debit
to a customer's deposit or share account, with certain exceptions.\22\
---------------------------------------------------------------------------
\22\ 31 CFR 1020.410(c)(4).
---------------------------------------------------------------------------
A record of each item, including checks, drafts, or
transfers of credit of more than $10,000 remitted or transferred to a
person, account, or place outside the United States.\23\
---------------------------------------------------------------------------
\23\ 31 CFR 1020.410(c)(5).
---------------------------------------------------------------------------
A record of each remittance or transfer of funds, or of
currency, other monetary instruments, checks, investment securities, or
credit, of more than $10,000 to a person, account or place outside the
United States.\24\
---------------------------------------------------------------------------
\24\ 31 CFR 1020.410(c)(6).
---------------------------------------------------------------------------
Each check or draft in excess of $10,000 drawn on or
issued by a foreign bank which the domestic bank has paid or presented
to a nonbank drawee for payment.\25\
---------------------------------------------------------------------------
\25\ 31 CFR 1020.410(c)(7).
---------------------------------------------------------------------------
Each item, including checks, drafts or transfers of credit
of more than $10,000 received directly and not through a domestic
financial institution, by letter, cable or any other means, from a
bank, broker or dealer in foreign exchange outside the United
States.\26\
---------------------------------------------------------------------------
\26\ 31 CFR 1020.410(c)(8).
---------------------------------------------------------------------------
A record of each receipt of currency, other monetary
instruments, investment securities or checks, and of each transfer of
funds or credit, of more than $10,000 received on any one occasion
directly and not through a domestic financial institution, from a
[[Page 84108]]
bank, broker or dealer in foreign exchange outside the United
States.\27\
---------------------------------------------------------------------------
\27\ 31 CFR 1020.410(c)(9).
---------------------------------------------------------------------------
Records prepared or received by a bank in the ordinary
course of business, which would be needed to reconstruct a transaction
account and to trace a check in excess of $100 deposited in such
account through its domestic processing system or to supply a
description of a deposited check in excess of $100. This requirement is
only applicable to demand deposits.\28\
---------------------------------------------------------------------------
\28\ 31 CFR 1020.410(c)(10).
---------------------------------------------------------------------------
A record containing the name, address, and taxpayer
identification number (TIN), if available, of the purchaser of each
certificate of deposit, as well as a description of the instrument,
notation of the method of payment, and the date of the
transactions.\29\
---------------------------------------------------------------------------
\29\ 31 CFR 1020.410(c)(11).
---------------------------------------------------------------------------
A record containing the name, address, and TIN, if
available, of any person presenting a certificate of deposit for
payment, as well as a description of the instrument and the date of the
transaction.\30\
---------------------------------------------------------------------------
\30\ 31 CFR 1020.410(c)(12).
---------------------------------------------------------------------------
Each deposit slip or credit ticket reflecting a
transaction in excess of $100 or the equivalent record for direct
deposit or other wire transfer deposit transactions. The record must
include the amount of any currency involved.\31\
---------------------------------------------------------------------------
\31\ 31 CFR 1020.410(c)(13).
---------------------------------------------------------------------------
D. Additional Records To Be Maintained by Providers and Sellers of
Prepaid Access (31 CFR 1022.420)
Providers and sellers of prepaid access are a type of money
services business (MSB), as defined in Sec. 1010.100(ff)(4). BSA
regulations specific to MSBs are found at 31 CFR Chapter X. Providers
and sellers of prepaid access must maintain access to transactional
records generated in the ordinary course of business that would be
needed to reconstruct prepaid access activation, loads, reloads,
purchases, withdrawals, transfers, or other prepaid-related
transactions.
II. Paperwork Reduction Act of 1995 (PRA) \32\
---------------------------------------------------------------------------
\32\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
---------------------------------------------------------------------------
Title: Records to be made and retained by financial institutions
(31 CFR 1010.410), records to be made and retained by banks (31 CFR
1020.410), and additional records to be maintained by providers and
sellers of prepaid access (31 CFR 1022.420).\33\
---------------------------------------------------------------------------
\33\ All of the records required to be made and retained under
31 CFR 1010.410, 1020.410, and 1022.420 are required to be retained
for five years pursuant to 31 CFR 1010.430(d).
---------------------------------------------------------------------------
OMB Control Number: 1506-0058 and 1506-0059.\34\
---------------------------------------------------------------------------
\34\ OMB control number 1506-0058 applies to 31 CFR 1010.410 and
31 CFR 1022.420. OMB control number 1506-0059 applies to 31 CFR
1020.410.
---------------------------------------------------------------------------
Report Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
numbers for regulations requiring certain financial institutions to
make and retain records associated with certain types of transactions,
including funds transfers, transmittals of funds, and prepaid access
transactions, among other types of transactions.
Affected Public: Businesses or other for-profit institutions, and
non-profit institutions.
Type of Review:
Renewal without change of a currently approved information
collections.
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 and
clarification of the scope of the PRA burden (the ``future annual PRA
burden'').
Frequency: As required.
Estimated Number of Respondents: 28,567 financial institutions.\35\
---------------------------------------------------------------------------
\35\ Table 1 below sets forth a breakdown of the types of
financial institutions covered by this notice.
---------------------------------------------------------------------------
Estimated Recordkeeping Burden: In Part 1 of this notice, FinCEN
describes the breakdown of the estimated number of financial
institutions, by type, impacted by each regulatory requirement. In Part
2, FinCEN 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 financial institution similar to that 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 financial institution, to multiple recordkeeping
requirements within the regulations, and did not assign an annual
hourly burden estimate, per financial institution, to each
recordkeeping requirement. The prior renewals also did not include an
estimate of the number of transactions, by type, for which records are
required to be made and retained. FinCEN assesses that the volume of a
given type of transaction by financial institution, for which a record
is required to be made and retained, would be the best indication of
the annual hourly burden estimate per financial institution. In Part 3,
FinCEN proposes for review and comment a methodology to estimate the
hourly burden and the cost of a future estimate of an annual PRA burden
that includes the burden and cost broken down by each type of
recordkeeping requirement covered by the regulations being renewed. The
methodology also includes identifying estimates for the number of
transactions conducted annually per financial institution, which would
trigger each recordkeeping requirement. Finally, in Part 4, FinCEN
solicits input from the public about: (a) The accuracy of the estimate
of the traditional annual PRA burden; (b) a more granular proposed
method to estimate a future annual PRA burden by calculating the burden
per recordkeeping requirement; (c) the criteria, metrics, and most
appropriate questions FinCEN should consider when researching the
information to estimate the future annual PRA burden, according to the
methodology proposed; and (d) any other comments about the regulations
and the current and proposed future hourly burden and cost estimates of
these requirements.
Part 1. Breakdown of the Financial Institutions Covered by This Notice
The breakdown of financial institutions, by type, covered by this
notice is reflected in Table 1 below:
[[Page 84109]]
Table 1--Breakdown, by Type, of Financial Institutions Covered by This
Notice
------------------------------------------------------------------------
Number of
Type of financial institution financial
institutions
------------------------------------------------------------------------
Banks................................................... \36\ 10,542
Brokers or dealers in securities........................ \37\ 3,640
Futures commission merchants............................ \38\ 61
Money services businesses (MSBs) that conduct money \39\ 12,692
transmission...........................................
MSBs that are providers and sellers of prepaid access... \40\ 1,632
---------------
Total number of financial institutions.............. 28,567
------------------------------------------------------------------------
31 CFR 1010.410(a) Through (c)
---------------------------------------------------------------------------
\36\ According to the Federal Deposit Insurance Corporation
(FDIC) there were 5,103 FDIC-insured banks as of March 31, 2020.
According to the Federal Reserve Board (FRB), there were 203 other
entities supervised by the FRB, as of June 16, 2020, that fall
within the definition of bank (20 Edge Act institutions, 15
agreement corporations (as defined in 12 CFR 28.2), and 168 foreign
banking organizations). According to the National Credit Union
Administration there were 5,236 federally regulated credit unions as
of December 31, 2019.
\37\ According to the Securities and Exchange Commission (SEC),
there were 3,640 brokers or dealers in securities registered with
the SEC, as of March 31, 2020.
\38\ According to the Commodities and Futures Trading Commission
(CFTC), there were 61 futures commission merchants registered with
the CFTC, as of March 31, 2020.
\39\ As of June 2020, there were 12,692 MSBs registered with
FinCEN that indicated they were conducting money transmission.
\40\ FinCEN's MSB registration database. See https://www.fincen.gov/msb-state-selector.
---------------------------------------------------------------------------
Description of Recordkeepers: Financial institutions providing
extensions of credit in excess of $10,000 (other than those secured by
real property), and engaging in transfers of funds, currency, other
monetary instruments, checks, investment securities, or credit of more
than $10,000 to or from the United States. Although the regulations on
their face would apply to all financial institutions, only banks,
credit unions, brokers or dealers in securities, futures commission
merchants (FCMs), and money transmitters would be likely to issue
extensions of credit in excess of $10,000, or transfer funds, currency,
monetary instruments, checks, investment securities, or credit of more
than $10,000 to or from the United States.
31 CFR 1010.410(d)
As noted above, the recordkeeping burden for 31 CFR 1010.410(d) is
accounted for under OMB control number 1506-0056, which applies to 31
CFR 1010.370(a). A notice to renew OMB control number 1506-0056 will
also be published in the Federal Register in December 2020.
31 CFR 1010.410(e)
Description of Recordkeepers: Financial institutions other than
banks that conduct transmittals of funds, including funds transfers, in
the amount of $3,000 or more. Although the regulation on its face would
apply to all nonbank financial institutions, mostly money transmitters
that conduct transmittals of funds would be impacted.
31 CFR 1010.410(f)
Description of Recordkeepers: Financial institutions that are the
transmitting or intermediary financial institution in a funds transfer
or transmittal of funds. Although the regulation on its face would
apply to all financial institutions, only banks, including credit
unions, and money transmitters that conduct funds transfers or
transmittals of funds would be impacted.
31 CFR 1020.410
Description of Recordkeepers: Banks, including credit unions, that
conduct funds transfers by acting as the transmitting, intermediary, or
recipient bank outlined in 31 CFR 1020.410(a), and banks that conduct
transactions outlined in 31 CFR 1020.410(c).
31 CFR 1022.420
Description of Recordkeepers: MSBs that are provider and sellers of
prepaid access, as defined in 31 CFR 1010.100(ff)(4) and (7), that
conduct prepaid access-related transactions.
Part 2. Traditional Annual PRA Burden and Cost
OMB Control Number 1506-0058
31 CFR 1010.410(a) Through (c)
Each financial institution must retain an original or a copy of
records related to extensions of credit in excess of $10,000 (other
than those secured by real property), and an original or copy of
records related to transfers of funds, currency, other monetary
instruments, checks, investment securities, or credit of more than
$10,000 to or from the United States.\41\ Due to the challenges of
obtaining the total number of such records required to be maintained
per financial institution, in its most recent control number renewal,
FinCEN estimated that the annual recordkeeping burden per financial
institution for these requirements was 50 hours.\42\ FinCEN continues
to estimate that the annual hourly burden of complying with 31 CFR
1010.410(a) through (c) is 50 hours per financial institution.
---------------------------------------------------------------------------
\41\ 31 CFR 1010.410(a) through (c).
\42\ 82 FR 31686, 31688 (July 7, 2017).
---------------------------------------------------------------------------
26,935 financial institutions \43\ multiplied by 50 hours, results
in a total annual hourly burden estimate of 1,346,750 hours.
---------------------------------------------------------------------------
\43\ See Table 1, supra. 26,935 represents the number of
financial institutions listed in the title of this notice, other
than MSBs that are providers and sellers of prepaid access, because
such MSBs would not conduct transactions described in 31 CFR
1010.410(a) through (c).
---------------------------------------------------------------------------
31 CFR 1010.410(e)
Each nonbank financial institution must collect and retain
information related to transmittals of funds in amounts of $3,000 or
more. Due to the challenges of obtaining the total number of
transmittals of funds of $3,000 or more conducted per nonbank financial
institution, FinCEN estimated, in its most recent control number
renewal, that the annual recordkeeping burden per financial institution
was 16 hours.\44\ FinCEN continues to estimate that the annual hourly
burden to comply with 31 CFR 1010.410(e) is 16 hours per financial
institution.
---------------------------------------------------------------------------
\44\ 82 FR 31686, 31688 (July 7, 2017). Note that, due to an
administrative error, the 2017 control number renewal inadvertently
describes this 16 hour burden as applicable to the requirements of
both 31 CFR 1010.410(e) and 31 CFR 1010.410(f).
---------------------------------------------------------------------------
12,692 MSBs \45\ providing money transmission services multiplied
by 16 hours, results in a total annual hourly burden estimate of
203,072 hours.
---------------------------------------------------------------------------
\45\ See Table 1 supra for the estimated number of MSBs that
provide money transmission services.
---------------------------------------------------------------------------
31 CFR 1010.410(f)
Each financial institution must transmit information on funds
transfers and transmittals of funds when acting as the transmitting or
intermediary financial institution. Due to the challenges of obtaining
the total number of funds transfers or transmittals of funds for which
a financial institution was acting as the transmitting or intermediary
financial institution, FinCEN estimated, in its most recent control
number renewal, that the annual recordkeeping burden per financial
institution was 12 hours.\46\ FinCEN continues to estimate that the
annual hourly burden to comply with 31 CFR 1010.410(f) is 12 hours per
financial institution.
---------------------------------------------------------------------------
\46\ 82 FR 31686, 31688 (July 7, 2017). Note that, due to an
administrative error, the 2017 control number renewal inadvertently
describes this 12 hour burden as applicable to the requirements of
31 CFR 1010.410(g) rather than 31 CFR 1010.410(f).
---------------------------------------------------------------------------
[[Page 84110]]
23,234 banks and MSBs conducting money transmission,\47\ multiplied
by 12 hours, results in a total annual hourly burden estimate of
278,808 hours.
---------------------------------------------------------------------------
\47\ See Table 1 supra. 23,234 equates to 10,542 banks and
12,692 MSBs that provide money transmission services.
---------------------------------------------------------------------------
31 CFR 1022.420
Each provider or seller of prepaid access is required to maintain
access to transactional records generated in the ordinary course of
business that would be needed to reconstruct prepaid access activation,
loads, reloads, purchases, withdrawals, transfers, or other prepaid-
related transactions. Due to the challenges of obtaining the total
number of prepaid access transactions, FinCEN estimated, in its most
recent control number renewal, that the annual recordkeeping burden per
financial institution was 16 hours. FinCEN continues to estimate that
the annual hourly burden to comply with 31 CFR 1022.420 is 16 hours per
financial institution.
1,632 MSBs which are providers or sellers of prepaid access,\48\
multiplied by 16 hours, results in a total annually hourly burden
estimate of 26,112 hours.
---------------------------------------------------------------------------
\48\ See Table 1 supra for the total number of MSBs that are
providers or sellers of prepaid access.
---------------------------------------------------------------------------
Total Annual Traditional PRA Hourly Burden for OMB Control Number
1506-0058: 1,854,742 hours (1,346,750 + 203,072 + 278,808 +
26,112).\49\
---------------------------------------------------------------------------
\49\ 1,346,750 hours (31 CFR 1010.410(a)-(c)) + 203,072 hours
(31 CFR 1010.410(e)) + 278,808 hours (31 CFR 1010.410(f)) + 26,112
hours (31 CFR 1022.420) = 1,854,742 hours.
---------------------------------------------------------------------------
OMB Control Number 1506-0059
31 CFR 1020.410
Banks, including credit unions, are required to (i) collect and
retain information on funds transfers when acting as the transmitting,
intermediary, or recipient bank, and (ii) retain an original or copy of
records, when conducting transactions outlined in 31 CFR 1020.410(c).
Due to the challenges of obtaining the total number of funds transfers
of $3,000 or more conducted by each bank acting as the transmitting,
intermediary, or recipient bank, and the challenges of obtaining the
total number of transactions that would trigger each of the
recordkeeping requirements per bank, as required by 31 CFR 1020.410(c),
FinCEN estimated, in its most recent control number renewal, that the
annual recordkeeping burden per bank was 100 hours. FinCEN continues to
estimate that the annual hourly burden to comply with all of the
recordkeeping requirements in 31 CFR 1020.410 is 100 hours per bank.
10,542 banks \50\ multiplied by 100 hours results in a total annual
hourly burden estimate of 1,054,200 hours.
---------------------------------------------------------------------------
\50\ See Table 1 supra for the total number of banks.
---------------------------------------------------------------------------
Total Annual Traditional PRA Hourly Burden for OMB Control Number
1506-0059: 1,054,200 hours.
Total Annual Traditional PRA Hourly Burden for OMB Control Numbers
1506-0058 and 1506-0059.
FinCEN's estimate of the total traditional annual PRA burden for
each of the recordkeeping requirements being renewed in this notice is
2,908,942 hours, as detailed in Table 2 below:
Table 2--Breakdown of Financial Institutions Impacted by Each Regulatory Requirement, and the Estimated Total
Annual Burden Hours per Requirement
----------------------------------------------------------------------------------------------------------------
Traditional
annual burden Total annual
Type of financial Number of estimate per burden hours
Regulatory requirement institution impacted by financial financial per regulatory
the requirement institutions institution requirement
(hours)
----------------------------------------------------------------------------------------------------------------
31 CFR 1010.410(a)-(c)................ Banks, brokers or 26,935 50 1,346,750
dealers in securities,
FCMs, and MSBs that
conduct money
transmission.
31 CFR 1010.410(e).................... MSBs that conduct money 12,692 16 203,072
transmission.
31 CFR 1010.410(f).................... Banks and MSBs the 23,234 12 278,808
conduct money
transmission.
31 CFR 1022.420....................... MSBs that are providers 1,632 16 26,112
or sellers of prepaid
access.
31 CFR 1020.410....................... Banks................... 10,542 100 1,054,200
-------------------------------------------------------------------------
Total annual hour burden hours.... ........................ .............. .............. 2,908,942
----------------------------------------------------------------------------------------------------------------
To calculate the hourly costs of the burden estimate, FinCEN
identified three roles and corresponding staff positions involved in
maintaining records as required by 31 CFR 1010.410, 1020.410, and
1022.420: (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 recordkeeping).
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),\51\ and computing an additional benefits cost
as follows:
---------------------------------------------------------------------------
\51\ 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 recordkeeping).
----------------------------------------------------------------------------------------------------------------
[[Page 84111]]
FinCEN estimates that, in general and on average,\52\ each role
would spend different amounts of time on each portion of the
traditional annual PRA burden, as follows:
---------------------------------------------------------------------------
\52\ By ``in general,'' FinCEN means without regard to outliers
(e.g., financial institutions that conduct transactions that trigger
the recordkeeping requirements described in this notice with
complexities or volumes 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.
---------------------------------------------------------------------------
The cost of each hour of burden, broken down by role, to produce
and maintain records as outlined in 31 CFR 1010.410, 1020.410, and
1022.420 would be $37.00 as set out in Table 4 below:
Table 4--Weighted Average Hourly Cost of Making and Maintaining the Records
----------------------------------------------------------------------------------------------------------------
General supervision Direct supervision Clerical work Weighted
------------------------------------------------------------------------------------------------- average hourly
% Time Hourly cost % Time Hourly cost % Time Hourly cost cost
----------------------------------------------------------------------------------------------------------------
5 $4.68 15 $7.47 80 $24.48 $37.00
----------------------------------------------------------------------------------------------------------------
$36.63 rounded to $37.00.
The total estimated cost of the traditional annual PRA burden for
the regulatory requirements being renewed in this notice is
$107,630,854, as reflected in Table 5 below:
Table 5--Total Cost of Traditional Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
OMB control No. Hourly burden Hourly cost Total Cost
----------------------------------------------------------------------------------------------------------------
1506-0058....................................................... 1,854,742 $37 $68,625,454
1506-0059....................................................... 1,054,200 37 39,005,400
-----------------------------------------------
Total cost.................................................. .............. .............. 107,630,854
----------------------------------------------------------------------------------------------------------------
Part 3--Future Annual PRA Burden
In the future, FinCEN will include the burden and cost for each
type of recordkeeping requirement covered by the regulations being
renewed. The future burden estimate will also include estimates of the
number of transactions conducted annually per financial institution,
which trigger each recordkeeping requirement.
31 CFR 1010.410(a) Through (c)
As noted above, each financial institution must retain an original
or a copy of records related to extensions of credit in excess of
$10,000 (other than those secured by real property), and an original or
copy of records related to transfers of funds, currency, other monetary
instruments, checks, investment securities, or credit of more than
$10,000 to or from the United States. In order to more accurately
estimate the related PRA burden in the future, FinCEN intends to obtain
a better understanding of how many types of financial institutions
conduct these transactions, and the average volume of such transactions
per financial institution.
31 CFR 1010.410(e)
As described in greater detail in Section I above, each nonbank
financial institution must collect and retain information related to
transmittals of funds in amounts of $3,000 or more. In order to more
accurately estimate the related PRA burden in the future, FinCEN
intends to obtain a better understanding of the volume of transmittals
of funds conducted by MSBs, and determine the average volume of
transmittals of funds per the transmitting, intermediary, or recipient
MSB.
31 CFR 1010.410(f)
As described in greater detail in Section I above, each financial
institution must transmit information on funds transfers and
transmittals of funds when acting as the transmitting or the
intermediary financial. In order to more accurately estimate the
related PRA burden in the future, FinCEN intends to obtain a better
understanding of the volume of funds transfers and transmittals of
funds conducted by banks and MSBs, and determine the average volume of
funds transfer per bank and transmittals of funds per transmitting or
intermediary bank or MSB.
31 CFR 1022.420
Each provider or seller of prepaid access is required to maintain
access to transactional records generated in the ordinary course of
business that would be needed to reconstruct prepaid access activation,
loads, reloads, purchases, withdrawals, transfers, or other prepaid-
related transactions. In order to more accurately estimate the related
PRA burden in the future, FinCEN intends to obtain a better
understanding of the volume of prepaid access transactions conducted by
MSBs, and determine the average volume of prepaid transactions per MSB.
31 CFR 1020.410(a)
As described in greater detail in Section I above, banks, including
credit unions, are required to collect and retain information on funds
transfers in amounts of $3,000 or more, conducted by the bank acting as
the transmitting, intermediary, or recipient bank. In order to more
accurately estimate the PRA burden in the future, FinCEN intends to
obtain a better understanding of the volume of funds transfers
conducted by banks, and determine the average volume of funds transfer
per transmitting, intermediary, or recipient bank.
31 CFR 1020.410(c)
As described in greater detail in Section I, banks, including
credit unions, are required to retain an original or copy of the
records outlined in 31 CFR 1020.410(c). In order to more accurately
estimate the PRA burden in the future, FinCEN intends to obtain a
better understanding of how many banks conducted each of the 13 types
of transactions described in 31 CFR
[[Page 84112]]
1020.410(c), and determine the average volume of these transactions per
bank.
FinCEN does not have the information needed to estimate the number
of annual transactions that trigger each recordkeeping requirement
being renewed in this notice. For that reason, FinCEN is relying on
estimates used in prior renewals of these OMB control numbers and the
applicable regulations. FinCEN further recognizes that after receiving
public comments as a result of this notice, future annual PRA hourly
burden and cost estimates may vary significantly. In order to arrive at
more precise estimates of net BSA hourly burden and cost, FinCEN
intends to conduct more granular studies in the near future, regarding
the types and volume of transactions conducted annually, which trigger
each recordkeeping requirement, and the time it takes to collect and
record the information required for each recordkeeping requirement.\53\
The data obtained in these studies also may result in a significant
variation of the estimated annual PRA burden.
---------------------------------------------------------------------------
\53\ 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). For example, depending on
the nature of the transaction, a financial institution may be
collecting and maintaining some of the same information on funds
transfers, transmittals of funds, prepaid access transactions, as
well as other transactions that are required to be recorded in 31
CFR 1010.410, 1020.410, and 1022.420 in order to satisfy other
obligations. Those obligations may include (i) protecting the
financial institution from fraud against itself or its customers,
(ii) complying with other non-BSA regulatory requirements such as
those imposed by the specific Federal functional regulator, or (iii)
maintaining proper accounting information.
---------------------------------------------------------------------------
Estimated Number of Respondents: 28,567, as set out in Table 1.
Estimated Total Annual Recordkeeping Burden: The estimated total
annual PRA burden is 2,908,942 hours, as set out in Table 2.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is $107,630,854, as set out in Table 5.
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 estimate of the burden; (ii) the estimated number of hours required
by each portion of the burden; and (iii) the organizational levels of
the financial institution engaged in each portion of the burden, their
estimated hourly remuneration, and the estimated proportion of
participation by each role. FinCEN encourages commenters to include any
publicly available sources for alternative estimates or methodologies.
(b) Specific Request for Comments on the Proposed Criteria for
Determining the Scope of the Future Annual PRA Hourly Burden and Cost
Estimate
FinCEN invites comments on any aspect of the criteria for a future
estimate of the annual PRA burden, as set out in Part 3 of this notice.
(c) 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 attributable solely to the regulations covered by this notice
(i.e., the hourly burden and cost of complying with the recordkeeping
requirements imposed exclusively by the BSA, which are not used to
satisfy contractual obligations, other regulatory requirements, or
business purposes of the financial institution). The future annual PRA
hourly burden and cost estimate must take into consideration only the
information collected and recorded that is used exclusively to comply
with requirements under 31 CFR 1010.410, 1020.410, and 1022.420.
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. Also, due to the
difficulty involved in estimating the number of transmittals of funds
conducted by MSBs, the number of funds transfers conducted by banks,
and the number of prepaid transactions conducted by MSBs, along with
the number of other types of transactions conducted financial
institutions, as described in this notice, FinCEN welcomes any
suggestions as to how to derive these estimates by using publicly
available financial information.
(d) Specific Questions for Comment Associated With Making and Retaining
Records Required by the Regulations Described in This Notice
(1) Complying With 31 CFR 1010.410(a) Through (c)
Is FinCEN's assertion correct that banks, credit unions,
FCMs, and MSBs are the only financial institutions that conduct
extensions of credit in excess of $10,000 (other than those secured by
real property)?
On average, how many extensions of credit in excess of
$10,000 (other than those secured by real property) does your financial
institution issue annually, which trigger the recordkeeping requirement
in 31 CFR 1010.410(a)?
Is FinCEN's assertion correct that banks, credit unions,
FCMs, and MSB are the only financial institutions that conduct
transactions which trigger the recordkeeping requirements in 31 CFR
1010.410(b) and (c)?
On average, how many transfers does your financial
institution conduct annually which trigger the recordkeeping
requirements in 31 CFR 1010.410(b) and (c)?
(2) Complying With 31 CFR 1010.410(e)
Is FinCEN's assertion correct that money transmitters are
the only nonbank financial institutions that conduct transmittals of
funds in the amount of $3,000 or more?
On average, how many transmittals of funds in the amount
of $3,000 or more does your MSB conduct annually when acting as the
transmitting, intermediary, or recipient MSB in a transmittal of funds?
On average, how long does it take your MSB to collect and
retain the records required to be maintained when you are acting as the
transmitting, intermediary, or recipient MSB in the transmittal of
funds?
(3) Complying With 31 CFR 1010.410(f)
Is FinCEN's assertion correct that banks, credit unions,
and money transmitters are the only financial institutions that act as
an intermediary financial institution in a funds transfer or
transmittal of funds?
On average, how often is your financial institution the
intermediary in a funds transfer or transmittal of funds?
[[Page 84113]]
On average, how long does it take your financial
institution to record and transmit the required information on a funds
transfer or transmittal of funds?
(4) Complying With 31 CFR 1020.410(a)
On average, how many funds transfers in the amount of
$3,000 or more does your bank conduct annually as the transmitting,
intermediary, or recipient bank in a funds transfer?
On average, how long does it take your financial
institution to collect and retain the records required to be maintained
when you are acting as the transmitting, intermediary, or recipient
bank in a funds transfer?
(5) Complying With 31 CFR 1020.410(c)
On average, how often does you bank conduct each of the
transactions described in 31 CFR 1020.410(c) as explained in further
detail in Section I?
On average, how long does it take your bank to collect and
retain the records required to be maintained when you conduct one of
the transactions described in 31 CFR 1020.410(c)?
(6) Complying With 31 CFR 1022.420
On average, how many of the following prepaid transactions
does your financial institution conduct: Access activations, loads,
reloads, purchases, withdrawals, transfers, and other prepaid access-
related transactions?
(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 Mosier,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2020-28364 Filed 12-22-20; 8:45 am]
BILLING CODE 4810-02-P