Agency Information Collection Activities; Submission for OMB Review; Comment Request; Multiple Financial Crimes Enforcement Network Information Collection Requests, 43312-43315 [2021-16854]

Agencies

• DEPARTMENT OF THE TREASURY

[Federal Register Volume 86, Number 149 (Friday, August 6, 2021)]
[Notices]
[Pages 43312-43315]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16854]


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DEPARTMENT OF THE TREASURY


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Multiple Financial Crimes Enforcement Network 
Information Collection Requests

AGENCY: Departmental Offices, U.S. Department of the Treasury.

ACTION: Notice.

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SUMMARY: The Department of the Treasury will submit the following 
information collection requests to the Office of Management and Budget 
(OMB) for review and clearance in accordance with the Paperwork 
Reduction Act of 1995, on or after the date of publication of this 
notice. The public is invited to submit comments on these requests.

DATES: Comments should be received on or before September 7, 2021 to be 
assured of consideration.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Copies of the submissions may be 
obtained from Molly Stasko by emailing [email protected], calling (202) 
622-8922, or viewing the entire information collection request at 
www.reginfo.gov.

SUPPLEMENTARY INFORMATION:

Financial Crimes Enforcement Network (FinCEN)

    1. Title: Transactions of Exempt Person and FinCEN Report 110--DOEP 
Report.
    OMB Control Number: 1506-0012.
    Type of Review: Extension without change of a currently approved 
collection.
    Description: The legislative framework generally referred to as the 
Bank Secrecy Act (BSA) consists of the Currency and Financial 
Transactions Reporting Act of 1970, as amended by the Uniting and 
Strengthening America by Providing Appropriate Tools Required to 
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) (Pub. L. 
107-56) and other legislation. The BSA is codified at 12 U.S.C. 1829b, 
12 U.S.C. 1951-1959, 31 U.S.C. 5311-5314 and 5316-5332, and notes 
thereto, with implementing regulations at 31 CFR Chapter X.
    The BSA authorizes the Secretary of the Treasury, inter alia, to 
require financial institutions to keep records and file reports that 
are determined to have a high degree of usefulness in criminal, tax, 
and regulatory matters, or in the conduct of intelligence or counter-
intelligence activities, to protect against international terrorism, 
and to implement anti-money laundering (AML) programs and compliance 
procedures. Regulations implementing Title II of the BSA appear at 31 
CFR Chapter X.
    The requirement for financial institutions to report certain 
transactions in currency has been an important component of the BSA 
from its inception. Regulations implementing this requirement have long 
established a one-person, one-day, one-institution aggregate currency 
transaction threshold of $10,000, above which every financial 
institution must file a Currency Transaction Report (CTR). The Money 
Laundering Suppression Act of 1994 amended the BSA to create certain 
mandatory exemptions applicable to banks from the requirement for 
financial institutions to file CTRs, and to give the Secretary 
authority to create additional such exemptions. Regulations 
implementing this exemption authority, including by requiring the 
collection of information on the DOEP Report, are found at 31 CFR 
1020.315.
    Under 31 CFR 1020.315(a), a bank is not required to file a CTR with 
respect to any transaction in currency between exempt persons and the 
bank, or between an exempt person and other banks that are affiliated 
with the bank.
    31 CFR 1020.315(b) sets out that an exempt person is: (1) A bank, 
to the extent of such bank's domestic operations; (2) a department or 
agency of the United States, of any State, or of any political 
subdivision of any State; (3) any entity established under the laws of 
the United States, any State, or any political subdivision of any 
State, or under an interstate compact, that exercises governmental 
authority on behalf of the United States, any such State, or any such 
political subdivision; (4) any entity, other than a bank, whose common 
stock or analogous equity interests are listed on the New York Stock 
Exchange, the American Exchange, or the NASDAQ Stock Market (a ``listed 
entity''), provided that, if the listed entity is a financial 
institution other than a bank, it is an exempt person only to the 
extent of its domestic operations; (5) any subsidiary, other than a 
bank, of a listed entity mentioned in the previous item (4) that is 
organized under the laws of the United States or of any State, provided 
that the listed entity owns at least 51 percent of the equity interest 
of the subsidiary, and subject to the qualification that if the 
subsidiary is a financial institution other than a bank, it is an 
exempt person only to the extent of its domestic operations; (6) any 
other commercial enterprise, with certain exceptions, that maintains a 
transaction account at the bank for at least two months, frequently 
engages in transactions with the bank in currency in excess of $10,000, 
and is incorporated or organized under the laws of, or is registered as 
and eligible to do business within, the United States or a State (a 
``non-listed business''), but only to the extent of the non-listed 
business customers' domestic

[[Page 43313]]

operations and only with respect to transactions conducted through the 
non-listed business customer's exemptible accounts; or (7) any other 
person, with certain exceptions, that maintains a transaction account 
at the bank for at least two months, operates a firm that frequently 
withdraws more than $10,000 in order to pay its U.S. employees in 
currency, and is incorporated or organized under the laws of, or is 
registered as and eligible to do business within, the United States or 
a State (a ``payroll customer''), but solely with respect to 
withdrawals for payroll purposes from existing exemptible accounts.
    31 CFR 1020.315(c)(1) requires a bank to designate an exempt person 
by filing the DOEP Report within 30 calendar days after the day of the 
first reportable transaction in currency with that person that the bank 
seeks to exempt from reporting. A bank holding company or one of its 
bank subsidiaries may make such a designation on behalf of any or all 
of the bank holding company's bank subsidiaries by listing those bank 
subsidiaries in the DOEP Report that it files. However, a bank is not 
required to file a DOEP Report for transfer of currency to or from (1) 
any of the 12 Federal Reserve Banks, (2) a bank, to the extent of such 
bank's domestic operations, (3) a department or agency of the United 
States, of any State, or of any political subdivision of any State, or 
(4) any entity established under the laws of the United States, any 
State, or any political subdivision of any State, or under an 
interstate compact between two or more States, that exercises 
governmental authority on behalf of the United States or any such State 
or political subdivision.
    31 CFR 1020.315(d) requires a bank to review at least once annually 
the continued eligibility of an exempt person that is a (1) listed 
entity, (2) subsidiary of a listed entity, (3) non-listed business 
customer, or (4) payroll customer. As part of the annual review, a bank 
must also review the application to each existing account of a non-
listed business or payroll customer of the monitoring system that 31 
CFR 1020.315(h)(2) requires the bank to maintain (related to suspicious 
activity monitoring).
    Under 31 CFR 1020.315(e), a bank must take steps to assure itself 
that an exempt person meets the definition of that term (see 31 CFR 
1020.315(b), summarized above), document the basis for its conclusion, 
and document its compliance with the terms of the exemption, including 
the operating rules in 31 CFR 1020.315(e)(2)-(9). A bank must also take 
steps to document compliance with its suspicious activity monitoring 
obligations under 31 CFR 1020.315(h)(2). The steps that the bank takes 
under 31 CFR 1020.315(e) must be those that a reasonable and prudent 
bank would take and document to protect itself from fraud or loss based 
on misidentification of a person's status and, in the case of the 
suspicious activity monitoring obligations, to identify suspicious 
transactions.
    31 CFR 1020.315(h)(1) states that the CTR exemption rules do not 
relieve a bank of its obligation to report any suspicious transactions 
pursuant to 31 CFR 1020.320, including any suspicious transactions or 
attempted transactions in currency associated with the accounts of an 
exempt person, or relieve a bank of any other reporting or 
recordkeeping obligation imposed under the authority of the BSA.
    Under 31 CFR 1020.315(h)(2), a bank must establish and maintain a 
monitoring system that is reasonably designed to detect, for each 
account of a non-listed business or payroll customer, transactions in 
currency that would require a bank to file a suspicious activity report 
(SAR).
    Form: FinCEN Report 110--DOEP Report.
    Affected Public: Businesses or other for-profit institutions; Not-
for-profit institutions.
    Estimated Number of Respondents: 11,161.
    Frequency of Response: As required.
    Estimated Total Number of Annual Responses: 18,141.
    Estimated Time per Response: 45 minutes for reporting, 15 minutes 
for recordkeeping.
    Estimated Total Annual Burden Hours: 18,141 hours.
    2. Title: Additional records to be made and retained by dealers in 
foreign exchange and brokers or dealers in securities.
    OMB Control Number: 1506-0052 and 1506-0053.
    Type of Review: Extension without change of a currently approved 
collection.
    Description: The legislative framework generally referred to as the 
Bank Secrecy Act (BSA) consists of the Currency and Financial 
Transactions Reporting Act of 1970, as amended by the Uniting and 
Strengthening America by Providing Appropriate Tools Required to 
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) (Pub. L. 
107-56) and other legislation. The BSA is codified at 12 U.S.C. 1829b, 
12 U.S.C. 1951-1959, 31 U.S.C. 5311-5314 and 5316-5332, and notes 
thereto, with implementing regulations at 31 CFR Chapter X.
    The BSA authorizes the Secretary of the Treasury, inter alia, to 
require financial institutions to keep records and file reports that 
are determined to have a high degree of usefulness in criminal, tax, 
and regulatory matters, or in the conduct of intelligence or counter-
intelligence activities, to protect against international terrorism, 
and to implement anti-money laundering (AML) programs and compliance 
procedures. Regulations implementing Title II of the BSA appear at 31 
CFR Chapter X.

a. 31 CFR 1022.410--Additional Records To Be Made and Retained by 
Dealers in Foreign Exchange

    31 CFR 1022.410(a) requires a dealer in foreign exchange to make 
and maintain a record of the taxpayer identification number of certain 
persons for whom a transaction account is opened or a line of credit is 
extended, within 30 days of opening such an account or extending such a 
line of credit, or longer if the person has applied for a taxpayer 
identification or social security number. A dealer in foreign exchange 
must also maintain a list containing the names, addresses, and account 
or credit line numbers of those persons from whom it has been unable to 
secure such information despite reasonable efforts. A dealer in foreign 
exchange need not attempt to secure such information if the person is 
an agency or instrumentality of a Federal, state, local, or foreign 
government using an account for public funds, one of several categories 
of aliens that are not permanent resident aliens, or an unincorporated 
subordinate unit of a tax exempt organization covered by a group 
exemption letter.
    Under 31 CFR 1022.410(b), a dealer in foreign exchange must also 
retain the original or a copy of nine types of documents: (1) 
Statements of accounts from banks, including documents representing the 
entries reflected on such statements; (2) daily work records, including 
documents needed to identify and reconstruct currency transactions with 
customers and foreign banks; (3) a record of each exchange of currency 
involving transactions in excess of $1,000, including the customer's 
name and address (and passport or tax identification number unless 
received by mail or common carrier), the date and amount of the 
transaction, and the currency name, country, and total amount of each 
foreign currency; (4) signature cards or other documents evidencing 
signature authority over each deposit or security account, containing 
specified items of information about the customer

[[Page 43314]]

(including a record of the actual owner of the account if customer 
accounts are maintained in a code name); (5) each item, including 
checks, drafts, and transfers of credit, of more than $10,000 remitted 
or transferred to a person, account, or place outside the United 
States; (6) a record of each receipt of currency, other monetary 
instruments, investment securities and 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 any 
person, account, or place outside the United States; (7) records 
prepared or received by the dealer in foreign exchange in the ordinary 
course of business that would be needed to reconstruct an account and 
trace a check in excess of $100 deposited in such an account through 
its internal recordkeeping system to its depository institution, or to 
supply a description of such a deposited check; (8) a record of the 
name, address and taxpayer identification number of any person 
presenting a certificate of deposit for payment, as well as a 
description of the instrument and the date of the transaction; and (9) 
a system of books and records that enables the dealer in foreign 
exchange to prepare an accurate balance sheet and income statement. To 
the extent that these records include originals or copies of checks, 
drafts, monetary instruments, investment securities, or other similar 
instruments, copies of front and back of such instruments must 
generally be retained. [3] The required records must be maintained for 
five years.

b. 31 CFR 1023.410--Additional Records To Be Made and Retained by 
Brokers or Dealers in Securities

    Until October 1, 2003, 31 CFR 1023.410(a) required a broker or 
dealer in securities to make a record of certain information. Until 
October 1, 2008, a broker or dealer in securities was required to 
maintain all such records, as well as a list containing the names, 
addresses, and account or credit line numbers of those persons from 
whom it had been unable to secure the required information despite 
reasonable efforts. The customer identification program requirement for 
brokers or dealers in securities has effectively superseded these 
requirements.
    Under 31 CFR 1023.410(b), a broker or dealer in securities must 
retain an original or copy of: (1) Each document granting signature or 
trading authority over each customer's account; (2) a record of each 
remittance or transfer of funds, currency, checks, other monetary 
instruments, investment securities, or credit, of more than $10,000 to 
a person, account, or place outside the United States; (3) 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 on any one occasion, not through a domestic financial 
institution, from any person, account, or place outside the United 
States; and (4) each record described in paragraphs (1), (2), (3), (5), 
(6), (7), (8), and (9) of 17 CFR 240.17a-3(a), covering records to be 
made by certain exchange members, brokers and dealers as identified in 
17 CFR 240.17a-3. To the extent that these records include originals or 
copies of checks, drafts, monetary instruments, investment securities, 
or other similar instruments, copies of front and back of such 
instruments must generally be retained. The required records must be 
maintained for five years.
    Form: Not applicable.
    Affected Public: Businesses or other for-profit institutions; Not-
for-profit institutions.
    Estimated Number of Respondents: 923 for 1506-0052; 3640 for 1506-
0053.
    Frequency of Response: As required.
    Estimated Time per Response: 16 hours for 1506-0052; 100 hours for 
1506-0053.
    Estimated Total Annual Burden Hours: 14,768 for 1506-0052; 364,000 
for 1506-0053.
    3. Title: Purchases of bank checks and drafts, cashier's checks, 
money orders, and traveler's checks.
    OMB Control Number: 1506-0057.
    Type of Review: Extension without change of a currently approved 
collection.
    Description: The legislative framework generally referred to as the 
Bank Secrecy Act (BSA) consists of the Currency and Financial 
Transactions Reporting Act of 1970, as amended by the Uniting and 
Strengthening America by Providing Appropriate Tools Required to 
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) (Pub. L. 
107-56) and other legislation. The BSA is codified at 12 U.S.C. 1829b, 
12 U.S.C. 1951-1959, 31 U.S.C. 5311-5314 and 5316-5332, and notes 
thereto, with implementing regulations at 31 CFR Chapter X.
    The BSA authorizes the Secretary of the Treasury, inter alia, to 
require financial institutions to keep records and file reports that 
are determined to have a high degree of usefulness in criminal, tax, 
and regulatory matters, or in the conduct of intelligence or counter-
intelligence activities, to protect against international terrorism, 
and to implement anti-money laundering (AML) programs and compliance 
procedures. Regulations implementing Title II of the BSA appear at 31 
CFR Chapter X.
    The BSA prohibits financial institutions from issuing any ``bank 
check, cashier's check, traveler's check, or money order to any 
individual in connection with a transaction or group of such 
contemporaneous transactions which involves United States coins or 
currency (or such other monetary instruments as the Secretary may 
prescribe) in amounts or denominations of $3,000 or more'' unless the 
individual either has a verified transaction account with the financial 
institution or furnishes the financial institution with the information 
required by regulations and that information is verified and recorded 
by the financial institution; financial institutions must record the 
method of account verification or the information required to be 
furnished. To implement these requirements, FinCEN issued a regulation 
requiring financial institutions to maintain records of the issuance or 
sale of bank checks and drafts, cashier's checks, money orders, and 
traveler's checks. The regulation on its face applies to all financial 
institutions as defined in 31 CFR 1010.100(t). However, as a practical 
matter banks and money services businesses (MSBs) are the types of 
financial institutions most likely to be issuing or selling bank checks 
and drafts, cashier's checks, money orders, and traveler's checks.
    Under 31 CFR 1010.415, financial institutions are required to 
maintain records of certain information related to the issuance or sale 
of bank checks and drafts, cashier's checks, money orders, and 
traveler's checks when the issuance or sale involves currency between 
$3,000-$10,000, inclusive, to any individual purchaser of one or more 
of these instruments. Under 31 CFR 1010.415(a)(1)(i), if the purchaser 
has a deposit account with the financial institution, the financial 
institution is required to maintain records of: (A) The name of the 
purchaser; (B) the date of purchase; (C) the type(s) of instrument(s) 
purchased; (D) the serial number(s) of each of the instrument(s) 
purchased; and (E) the amount in dollars of each of the instrument(s) 
purchased. Under 31 CFR 1010.415(a)(1)(ii), the financial institution 
must also verify that the individual is a deposit accountholder or must 
verify the individual's identity.
    Under 31 CFR 1010.415(a)(2)(i), if the purchaser does not have a 
deposit account with the financial institution, the financial 
institution must maintain a record of: (A) The name and address of the 
purchaser; (B) the social security

[[Page 43315]]

number of the purchaser, or if the purchaser is an alien and does not 
have a social security number, the alien identification number; (C) the 
date of birth of the purchaser; (D) the date of the purchase; (E) the 
type(s) of instrument(s) purchased; (F) the serial number(s) of the 
instrument(s) purchased; and (G) the amount in dollars of each of the 
instrument(s) purchased. Under 31 CFR 1010.415(a)(2)(ii), the financial 
institution must also verify the purchaser's name and address by 
examination of a document which is normally acceptable as a means of 
identification when cashing checks for nondepositors and which contains 
the name and address of the purchaser, and must record the specific 
identifying information.
    Under 31 CFR 1010.415(b), financial institutions must treat 
contemporaneous purchases of the same or different types of instruments 
totaling $3,000 or more as one purchase. Multiple purchases during one 
business day totaling $3,000 or more must be treated as one purchase if 
an individual employee, director, officer, or partner of the financial 
institution has knowledge that these purchases have occurred.
    Under 31 CFR 1010.415(c), financial institutions must retain all 
required records for a period of five years and make those records 
available to the Secretary upon request at any time.
    Form: Not applicable.
    Affected Public: Businesses or other for-profit institutions; Not-
for-profit institutions.
    Estimated Number of Respondents: 15,677.
    Frequency of Response: As required.
    Estimated Time per Response: 7.5 hours.
    Estimated Total Annual Burden Hours: 117,578 hours.
    Authority: 44 U.S.C. 3501 et seq.

    Dated: August 3, 2021.
Molly Stasko,
Treasury PRA Clearance Officer.
[FR Doc. 2021-16854 Filed 8-5-21; 8:45 am]
BILLING CODE 4810-02-P