Agency Information Collection Activities; Proposed Renewal; Comment Request: Renewal Without Change of Information Collection Requirements in Connection With the Imposition of the Fifth Special Measure Against the Islamic Republic of Iran as a Jurisdiction of Primary Money Laundering Concern, 14440-14442 [2023-04713]
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14440
Federal Register / Vol. 88, No. 45 / Wednesday, March 8, 2023 / Notices
hours are from 8:00 a.m. to 4:30 p.m.
ET, Monday through Friday, except
Federal holidays. You may also submit
or view docket entries in person or by
mail: U.S. Department of
Transportation, 1200 New Jersey
Avenue SE, West Building, Ground
Floor, Room W12–140, Washington, DC
20590–0001. To be sure someone is
there to help you, please call (202) 366–
9317 or (202) 366–9826 before visiting
Dockets Operations.
lotter on DSK11XQN23PROD with NOTICES1
C. Privacy Act
In accordance with 49 U.S.C. 13301(a)
and 5 U.S.C. 553(c), DOT solicits
comments from the public to better
inform its rulemaking process. DOT
posts these comments, without edit,
including any personal information the
commenter provides, to
www.regulations.gov, as described in
the system of records notice (DOT/ALL–
14 FDMS), which can be reviewed at
https://www.transportation.gov/
individuals/privacy/privacy-act-systemrecords-notices, the comments are
searchable by the name of the submitter.
II. Background
FMCSA believes it is in the public
interest to host a public listening
session to receive additional comments
on matters within FMCSA’s jurisdiction,
including those relating to regulation of
property brokers, freight forwarders, and
dispatch services. Accordingly, FMCSA
is announcing this listening session,
being held at 10:00 a.m. on March 31,
2023, in Louisville, KY, concurrently
with the 2023 MATS conference.
FMCSA’s listening session is open to
the public and a link to register to
attend is available in the ADDRESSES
section above. Registration with the
MATS conference is not required to
attend FMCSA’s listening session.
FMCSA is currently accepting
comments on a NPRM concerning the
implementation of certain requirements
under the Moving Ahead for Progress in
the 21st Century Act (MAP–21) (88 FR
830, Docket FMCSA–2016–0102).
Previously, FMCSA implemented the
MAP–21 requirement to increase the
financial security amounts for brokers of
household goods and other property
brokers and established new financial
security requirements for freight
forwarders. The Agency is now
proposing regulations in five separate
areas pertaining to broker/freight
forwarder financial responsibility: assets
readily available; immediate suspension
of broker/freight forwarder operating
authority; surety or trust responsibilities
in cases of broker/freight forwarder
financial failure or insolvency;
enforcement authority; and entities
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16:48 Mar 07, 2023
Jkt 259001
eligible to provide trust funds for form
BMC–85 trust fund filings. By a separate
Federal Register notice, FMCSA is
extending the comment period for this
NPRM from March 6, 2023, to April 6,
2023.
In addition, FMCSA is also accepting
further comments on the interim
guidance issued on November 17, 2022,
regarding FMCSA’s interpretation of the
definitions of broker and bona fide
agents as it relates to all brokers of
transportation by motor vehicle (87 FR
68635, FMCSA–2022–0134). Although
the interim guidance took effect
immediately upon publication in the
Federal Register, FMCSA is seeking
additional comments and will issue
final guidance by the statutory deadline
of June 16, 2023. By a separate Federal
Register notice, FMCSA is reopening
the comment period for the interim
guidance, which closed on January 17,
2023. Comments will now be accepted
from March 31, 2023, until April 6,
2023.
III. Meeting Participation
The listening sessions are open to the
public. Speakers’ remarks will be
limited to 3 minutes each.
Robin Hutchinson,
Administrator.
Written comments are welcome
and must be received on or before May
8, 2023.
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–2023–
0003 and the specific Office of
Management and Budget (OMB) control
number 1506–0074.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
Number FINCEN–2023–0003 and OMB
control number 1506–0074.
Please submit comments by one
method only. Comments will be
reviewed consistent with the PRA and
applicable OMB regulations and
guidance. 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 Resource Center at 1–800–767–
2825 or electronically at https://
www.fincen.gov/contact.
SUPPLEMENTARY INFORMATION:
DATES:
[FR Doc. 2023–04720 Filed 3–7–23; 8:45 am]
I. Statutory and Regulatory Provisions
BILLING CODE 4910–EX–P
a. Statutory Provisions
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request: Renewal Without
Change of Information Collection
Requirements in Connection With the
Imposition of the Fifth Special Measure
Against the Islamic Republic of Iran as
a Jurisdiction of Primary Money
Laundering Concern
Financial Crimes Enforcement
Network (FinCEN), Treasury.
ACTION: Notice and request for
comments.
AGENCY:
As part of a continuing effort
to reduce paperwork and respondent
burden, FinCEN invites comment on a
renewal, without change, to information
collection requirements finalized on
November 4, 2019, imposing a special
measure with respect to the Islamic
Republic of Iran as a jurisdiction of
primary money laundering concern.
This request for comments is being
made pursuant to the Paperwork
Reduction Act of 1995 (PRA).
SUMMARY:
PO 00000
Frm 00116
Fmt 4703
Sfmt 4703
The legislative framework generally
referred to as the Bank Secrecy Act
(BSA) consists of the Currency and
Foreign 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 (October 26, 2001), and other
legislation, including the Anti-Money
Laundering Act of 2020 (AML Act).1
The BSA is codified at 12 U.S.C. 1829b,
12 U.S.C. 1951–1960, and 31 U.S.C.
5311–5314 and 5316–5336, and notes
thereto, with implementing regulations
at 31 CFR Chapter X.
The BSA authorizes the Secretary of
the Treasury (the ‘‘Secretary’’), 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 AML
1 The AML Act was enacted as Division F,
§§ 6001–6511, of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year
2021, Public Law 116–283, 134 Stat 3388 (2021).
E:\FR\FM\08MRN1.SGM
08MRN1
Federal Register / Vol. 88, No. 45 / Wednesday, March 8, 2023 / Notices
programs and compliance procedures.2
Regulations implementing the BSA
appear at 31 CFR Chapter X. The
authority of the Secretary to administer
the BSA has been delegated to the
Director of FinCEN.3
Section 311 of the USA PATRIOT Act
(Section 311), codified at 31 U.S.C.
5318A, grants FinCEN the authority,
upon finding that reasonable grounds
exist for concluding that a foreign
jurisdiction, financial institution, class
of transactions, or type of account is of
‘‘primary money laundering concern,’’
to require domestic financial
institutions and financial agencies to
take one or more ‘‘special measures.’’
Special measures one through four,
codified at 31 U.S.C. 5318A(b)(1)–(b)(4),
impose additional recordkeeping,
information collection, and reporting
requirements on covered U.S. financial
institutions. The fifth special measure,
codified at 31 U.S.C. 5318A(b)(5),
allows FinCEN to impose prohibitions
or conditions on the opening or
maintenance of certain correspondent
accounts. Special measures are
safeguards that protect the U.S. financial
system from money laundering and
terrorist financing.
FinCEN issued a final rule on
November 4, 2019, imposing the fifth
special measure to prohibit U.S.
financial institutions from opening or
maintaining a correspondent account
for, or on behalf of, Iranian financial
institutions.4 The rule requires that U.S.
financial institutions take reasonable
steps not to process transactions for the
correspondent account of a foreign bank
in the United States if such a transaction
involves an Iranian financial institution,
and requires U.S. financial institutions
to apply special due diligence that is
reasonably designed to guard against
correspondent accounts being used to
process prohibited transactions
involving Iranian financial institutions.
See 31 CFR 1010.661.
U.S. financial institutions are required
under 31 CFR 1010.661(b)(3)(i)(A) to
notify holders of their foreign
lotter on DSK11XQN23PROD with NOTICES1
2 Section
358 of the USA PATRIOT Act expanded
the scope of the BSA by including a reference to
reports and records ‘‘that have a high degree of
usefulness in intelligence or counterintelligence
activities to protect against international terrorism.’’
Section 6101 of the AML Act further expanded the
scope of the BSA to cover such matters as
preventing money laundering, tracking illicit funds,
assessing risk, and establishing appropriate
frameworks for information sharing.
3 Treasury Order 180–01 (Jan. 14, 2020).
Therefore, references to the authority of the
Secretary under Section 311 of the USA PATRIOT
Act apply equally to the Director of FinCEN.
4 FinCEN, Final Rule—Imposition of Fifth Special
Measure Against the Islamic Republic of Iran as a
Jurisdiction of Primary Money Laundering Concern,
84 FR 59302, (Nov. 4, 2019).
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Jkt 259001
correspondent accounts that they may
not provide Iranian financial
institutions with access to such
accounts. The requirement is intended
to ensure cooperation from
correspondent account holders in
denying Iran access to the U.S. financial
system. U.S. financial institutions are
required under 31 CFR 1010.661(b)(4)(i)
to document compliance with the
notification requirement. The
information is used by federal agencies
and certain self-regulatory organizations
to verify compliance with 31 CFR
1010.661.
II. Paperwork Reduction Act of 1995 5
Title: Information Collection
Requirements in Connection with the
Imposition of the Fifth Special Measure
Against the Islamic Republic of Iran as
a Jurisdiction of Primary Money
Laundering Concern.
OMB Control Number: 1506–0074.
Report Number: Not applicable.
Abstract: FinCEN is issuing this
notice to renew the OMB control
number for the imposition of a special
measure against the Islamic Republic of
Iran as a jurisdiction of primary money
laundering concern pursuant to the
authority contained in 31 U.S.C. 5318A.
See 31 CFR 1010.661.
Type of Review: Renewal without
change of a currently approved
collection.
Affected Public: Businesses or other
for-profit institutions, and not-for-profit
institutions.
Frequency: One time notification and
recordkeeping associate with the
notification. See 31 CFR
1010.661(b)(3)(i)(A) and
1010.661(b)(4)(i).
Estimated Number of Respondents:
15,960.
RESPONDENT FINANCIAL INSTITUTIONS
BY CATEGORY
Type of institution
Count
Banks, savings associations,
thrifts, trust companies 6 ...
Credit unions 7 ......................
Brokers or dealers in securities 8 ..................................
Mutual funds 9 .......................
Futures commission merchants and introducing
brokers in commodities 10
1,036
Total ...............................
15,960
5,102
4,917
3,527
1,378
Estimated Time per Respondent: 1
hour.
5 Public
Law 104–13, 44 U.S.C. 3506(c)(2)(A).
counts are from the Q3 2022 Federal
Financial Institutions Examination Council (FFIEC)
Call Report data, available at https://cdr.ffiec.gov/
6 All
PO 00000
Frm 00117
Fmt 4703
Sfmt 4703
14441
Estimated Total Annual Burden:
15,960 hours (15,960 respondents × 1
hour).
FinCEN’s estimate of the number of
affected financial institutions accounts
for all domestic financial institutions
that could potentially maintain
correspondent accounts for foreign
banks or process transactions that may
involve Iranian financial institutions.
FinCEN does this in order to establish
the burden associated with all
potentially affected U.S. financial
institutions conducting appropriate due
diligence and not processing
transactions that may involve Iranian
financial institutions. There are
approximately 15,960 such financial
institutions doing business in the
United States that could potentially
maintain correspondent accounts or
process transactions that may involve
Iranian financial institutions.
Records required to be retained under
the BSA must be retained for five years.
Generally, information collected
pursuant to the BSA is confidential, but
may be shared as provided by law with
regulatory and law enforcement
authorities.
Request for Comments
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid OMB control
number. Comments submitted in
response to this notice will be
summarized and/or included in a
request for OMB approval. All
public/pws/downloadbulkdata.aspx. Data for
institutions that are not insured, are insured under
non-FDIC deposit insurance regimes, or do not have
a Federal functional regulator are from the FDIC’s
Research Information System, available at https://
www.fdic.gov/foia/ris/.
7 Credit union data are from the National Credit
Union Administration (NCUA) for Q3 2022,
available at https://ncua.gov/analysis/credit-unioncorporate-call-report-data.
8 According to the SEC, there are 3,527 brokers or
dealers in securities as of the end of fiscal year
2021. See SEC, Fiscal Year 2023 Congressional
Budget Justification, p. 33, https://www.sec.gov/
files/FY%202023%20Congressional
%20Budget%20Justification
%20Annual%20Performance%20Plan_FINAL.pdf.
9 According to information provided by the SEC
as of December 2022 (including filings made
through January 20, 2023), there are 1,378 open-end
registered investment companies that report on
Form N–CEN. FinCEN assesses that such companies
would be responsible for implementing the
requirements imposed through the final rule issued
on November 4, 2019.
10 As of November 30, 2022, there are 62 futures
commission merchants. See Commodity Futures
Trading Commission, ‘‘Financial Data for FCMs’’,
dated November 2022, available at https://
www.cftc.gov/MarketReports/financialfcmdata/
index.htm. Additionally, as of December 31, 2022,
there are 974 introducing brokers in commodities
according to the Commodity Futures Trading
Commission. These two counts total 1,036.
E:\FR\FM\08MRN1.SGM
08MRN1
14442
Federal Register / Vol. 88, No. 45 / Wednesday, March 8, 2023 / Notices
comments will become a matter of
public record. Comments are invited on:
(a) 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; (b) the accuracy of the
agency’s estimate of the burden of the
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; (d)
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 (e) estimates of capital or start-up
costs, cost of operation and
maintenance, and cost involved in
purchasing services.
Himamauli Das,
Acting Director, Financial Crimes
Enforcement Network.
[FR Doc. 2023–04713 Filed 3–7–23; 8:45 am]
BILLING CODE 4810–02–P
DEPARTMENT OF THE TREASURY
Agency Information Collection
Activities; Proposed Renewal;
Comment Request: Renewal Without
Change of Information Collection
Requirements in Connection With the
Imposition of a Special Measure
Against Commercial Bank of Syria,
Including Its Subsidiary, Syrian
Lebanese Commercial Bank, as a
Financial Institution of Primary Money
Laundering Concern
Financial Crimes Enforcement
Network (FinCEN), Treasury.
ACTION: Notice and request for
comments.
AGENCY:
As part of a continuing effort
to reduce paperwork and respondent
burden, FinCEN invites comment on a
renewal, without change, to information
collection requirements finalized on
March 15, 2006, imposing a special
measure against the Commercial Bank of
Syria, including its subsidiary, Syrian
Lebanese Commercial Bank
(collectively, the ‘‘Commercial Bank of
Syria’’), as a financial institution of
primary money laundering concern.
This request for comments is being
made pursuant to the Paperwork
Reduction Act of 1995 (PRA).
DATES: Written comments are welcome
and must be received on or before May
8, 2023.
ADDRESSES: Comments may be
submitted by any of the following
methods:
lotter on DSK11XQN23PROD with NOTICES1
VerDate Sep<11>2014
16:48 Mar 07, 2023
Jkt 259001
The legislative framework generally
referred to as the Bank Secrecy Act
(BSA) consists of the Currency and
Foreign 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 (October 26, 2001), and other
legislation, including the Anti-Money
Laundering Act of 2020 (AML Act).1
The BSA is codified at 12 U.S.C. 1829b,
12 U.S.C. 1951–1960, and 31 U.S.C.
5311–5314 and 5316–5336, and notes
thereto, with implementing regulations
at 31 CFR Chapter X.
The BSA authorizes the Secretary of
the Treasury (the ‘‘Secretary’’), 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 AML
programs and compliance procedures.2
Regulations implementing the BSA
appear at 31 CFR Chapter X. The
authority of the Secretary to administer
the BSA has been delegated to the
Director of FinCEN.3
Section 311 of the USA PATRIOT Act
(Section 311), codified at 31 U.S.C.
5318A, grants FinCEN the authority,
upon finding that reasonable grounds
exist for concluding that a foreign
jurisdiction, financial institution, class
of transactions, or type of account is of
‘‘primary money laundering concern,’’
to require domestic financial
institutions and financial agencies to
take one or more ‘‘special measures.’’
Special measures one through four,
codified at 31 U.S.C. 5318A(b)(1)–(b)(4),
impose additional recordkeeping,
information collection, and reporting
requirements on covered U.S. financial
institutions. The fifth special measure,
codified at 31 U.S.C. 5318A(b)(5),
allows FinCEN to impose prohibitions
or conditions on the opening or
maintenance of certain correspondent
accounts. Special measures are
safeguards that protect the U.S. financial
system from money laundering and
terrorist financing.
FinCEN issued a final rule on March
15, 2006, imposing the fifth special
measure to prohibit U.S. financial
institutions from opening or
maintaining a correspondent account
for, or on behalf of, the Commercial
Bank of Syria, including its subsidiary
Syrian Lebanese Commercial Bank.4
The rule requires that U.S. financial
institutions apply due diligence to
correspondent accounts they maintain
on behalf of foreign financial
institutions that is reasonably designed
to guard against the indirect use of those
accounts by the Commercial Bank of
Syria. See 31 CFR 1010.653. U.S.
financial institutions are required under
31 CFR 1010.653(b)(2)(i)(A) to notify
holders of foreign correspondent
accounts that they may not provide the
Commercial Bank of Syria with access
to such accounts. The requirement is
intended to ensure cooperation from
correspondent account holders in
denying Commercial Bank of Syria
access to the U.S. financial system. U.S.
financial institutions are required under
31 CFR1010.653(b)(3)(i) to document
1 The AML Act was enacted as Division F,
§§ 6001–6511, of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year
2021, Public Law 116–283, 134 Stat 3388 (2021).
2 Section 358 of the USA PATRIOT Act expanded
the scope of the BSA by including a reference to
reports and records ‘‘that have a high degree of
usefulness in intelligence or counterintelligence
activities to protect against international terrorism.’’
Section 6101 of the AML Act further expanded the
scope of the BSA to cover such matters as
preventing money laundering, tracking illicit funds,
assessing risk, and establishing appropriate
frameworks for information sharing.
3 Treasury Order 180–01 (Jan. 14, 2020).
Therefore, references to the authority of the
Secretary under Section 311 of the USA PATRIOT
Act apply equally to the Director of FinCEN.
4 FinCEN, Final Rule—Imposition of a Special
Measure Against Commercial Bank of Syria,
Including its Subsidiary, Syrian Lebanese
Commercial Bank, as a Financial Institution of
Primary Money Laundering Concern, 71 FR 13260
(Mar. 15, 2006).
I. Statutory and Regulatory Provisions
Financial Crimes Enforcement Network
SUMMARY:
• Federal E-rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Refer to Docket Number FINCEN–2023–
0004 and the specific Office of
Management and Budget (OMB) control
number 1506–0036.
• Mail: Global Investigations
Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA
22183. Refer to Docket Number
FINCEN–2023–0004 and OMB control
number 1506–0036.
Please submit comments by one
method only. Comments will be
reviewed consistent with the PRA and
applicable OMB regulations and
guidance. 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 Resource Center at 1–800–767–
2825 or electronically at https://
www.fincen.gov/contact.
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00118
Fmt 4703
Sfmt 4703
E:\FR\FM\08MRN1.SGM
08MRN1
Agencies
[Federal Register Volume 88, Number 45 (Wednesday, March 8, 2023)]
[Notices]
[Pages 14440-14442]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04713]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request: Renewal Without Change of Information Collection
Requirements in Connection With the Imposition of the Fifth Special
Measure Against the Islamic Republic of Iran as a Jurisdiction of
Primary Money Laundering Concern
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: As part of a continuing effort to reduce paperwork and
respondent burden, FinCEN invites comment on a renewal, without change,
to information collection requirements finalized on November 4, 2019,
imposing a special measure with respect to the Islamic Republic of Iran
as a jurisdiction of primary money laundering concern. This request for
comments is being made pursuant to the Paperwork Reduction Act of 1995
(PRA).
DATES: Written comments are welcome and must be received on or before
May 8, 2023.
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-2023-0003 and the specific Office of Management and Budget (OMB)
control number 1506-0074.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2023-0003 and OMB control number 1506-0074.
Please submit comments by one method only. Comments will be
reviewed consistent with the PRA and applicable OMB regulations and
guidance. 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 Resource Center at 1-800-
767-2825 or electronically at https://www.fincen.gov/contact.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Provisions
a. Statutory Provisions
The legislative framework generally referred to as the Bank Secrecy
Act (BSA) consists of the Currency and Foreign 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 (October 26,
2001), and other legislation, including the Anti-Money Laundering Act
of 2020 (AML Act).\1\ The BSA is codified at 12 U.S.C. 1829b, 12 U.S.C.
1951-1960, and 31 U.S.C. 5311-5314 and 5316-5336, and notes thereto,
with implementing regulations at 31 CFR Chapter X.
---------------------------------------------------------------------------
\1\ The AML Act was enacted as Division F, Sec. Sec. 6001-6511,
of the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021, Public Law 116-283, 134 Stat 3388 (2021).
---------------------------------------------------------------------------
The BSA authorizes the Secretary of the Treasury (the
``Secretary''), 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 AML
[[Page 14441]]
programs and compliance procedures.\2\ Regulations implementing the BSA
appear at 31 CFR Chapter X. The authority of the Secretary to
administer the BSA has been delegated to the Director of FinCEN.\3\
---------------------------------------------------------------------------
\2\ Section 358 of the USA PATRIOT Act expanded the scope of the
BSA by including a reference to reports and records ``that have a
high degree of usefulness in intelligence or counterintelligence
activities to protect against international terrorism.'' Section
6101 of the AML Act further expanded the scope of the BSA to cover
such matters as preventing money laundering, tracking illicit funds,
assessing risk, and establishing appropriate frameworks for
information sharing.
\3\ Treasury Order 180-01 (Jan. 14, 2020). Therefore, references
to the authority of the Secretary under Section 311 of the USA
PATRIOT Act apply equally to the Director of FinCEN.
---------------------------------------------------------------------------
Section 311 of the USA PATRIOT Act (Section 311), codified at 31
U.S.C. 5318A, grants FinCEN the authority, upon finding that reasonable
grounds exist for concluding that a foreign jurisdiction, financial
institution, class of transactions, or type of account is of ``primary
money laundering concern,'' to require domestic financial institutions
and financial agencies to take one or more ``special measures.''
Special measures one through four, codified at 31 U.S.C.
5318A(b)(1)-(b)(4), impose additional recordkeeping, information
collection, and reporting requirements on covered U.S. financial
institutions. The fifth special measure, codified at 31 U.S.C.
5318A(b)(5), allows FinCEN to impose prohibitions or conditions on the
opening or maintenance of certain correspondent accounts. Special
measures are safeguards that protect the U.S. financial system from
money laundering and terrorist financing.
FinCEN issued a final rule on November 4, 2019, imposing the fifth
special measure to prohibit U.S. financial institutions from opening or
maintaining a correspondent account for, or on behalf of, Iranian
financial institutions.\4\ The rule requires that U.S. financial
institutions take reasonable steps not to process transactions for the
correspondent account of a foreign bank in the United States if such a
transaction involves an Iranian financial institution, and requires
U.S. financial institutions to apply special due diligence that is
reasonably designed to guard against correspondent accounts being used
to process prohibited transactions involving Iranian financial
institutions. See 31 CFR 1010.661.
---------------------------------------------------------------------------
\4\ FinCEN, Final Rule--Imposition of Fifth Special Measure
Against the Islamic Republic of Iran as a Jurisdiction of Primary
Money Laundering Concern, 84 FR 59302, (Nov. 4, 2019).
---------------------------------------------------------------------------
U.S. financial institutions are required under 31 CFR
1010.661(b)(3)(i)(A) to notify holders of their foreign correspondent
accounts that they may not provide Iranian financial institutions with
access to such accounts. The requirement is intended to ensure
cooperation from correspondent account holders in denying Iran access
to the U.S. financial system. U.S. financial institutions are required
under 31 CFR 1010.661(b)(4)(i) to document compliance with the
notification requirement. The information is used by federal agencies
and certain self-regulatory organizations to verify compliance with 31
CFR 1010.661.
II. Paperwork Reduction Act of 1995 5
Title: Information Collection Requirements in Connection with the
Imposition of the Fifth Special Measure Against the Islamic Republic of
Iran as a Jurisdiction of Primary Money Laundering Concern.
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\5\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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OMB Control Number: 1506-0074.
Report Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the imposition of a special measure against the Islamic
Republic of Iran as a jurisdiction of primary money laundering concern
pursuant to the authority contained in 31 U.S.C. 5318A. See 31 CFR
1010.661.
Type of Review: Renewal without change of a currently approved
collection.
Affected Public: Businesses or other for-profit institutions, and
not-for-profit institutions.
Frequency: One time notification and recordkeeping associate with
the notification. See 31 CFR 1010.661(b)(3)(i)(A) and
1010.661(b)(4)(i).
Estimated Number of Respondents: 15,960.
Respondent Financial Institutions by Category
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Type of institution Count
------------------------------------------------------------------------
Banks, savings associations, thrifts, trust companies 5,102
\6\....................................................
Credit unions \7\....................................... 4,917
Brokers or dealers in securities \8\.................... 3,527
Mutual funds \9\........................................ 1,378
Futures commission merchants and introducing brokers in 1,036
commodities \10\.......................................
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Total............................................... 15,960
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Estimated Time per Respondent: 1 hour.
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\6\ All counts are from the Q3 2022 Federal Financial
Institutions Examination Council (FFIEC) Call Report data, available
at https://cdr.ffiec.gov/public/pws/downloadbulkdata.aspx. Data for
institutions that are not insured, are insured under non-FDIC
deposit insurance regimes, or do not have a Federal functional
regulator are from the FDIC's Research Information System, available
at https://www.fdic.gov/foia/ris/.
\7\ Credit union data are from the National Credit Union
Administration (NCUA) for Q3 2022, available at https://ncua.gov/analysis/credit-union-corporate-call-report-data.
\8\ According to the SEC, there are 3,527 brokers or dealers in
securities as of the end of fiscal year 2021. See SEC, Fiscal Year
2023 Congressional Budget Justification, p. 33, https://www.sec.gov/files/FY%202023%20Congressional%20Budget%20Justification%20Annual%20Performance%20Plan_FINAL.pdf.
\9\ According to information provided by the SEC as of December
2022 (including filings made through January 20, 2023), there are
1,378 open-end registered investment companies that report on Form
N-CEN. FinCEN assesses that such companies would be responsible for
implementing the requirements imposed through the final rule issued
on November 4, 2019.
\10\ As of November 30, 2022, there are 62 futures commission
merchants. See Commodity Futures Trading Commission, ``Financial
Data for FCMs'', dated November 2022, available at https://www.cftc.gov/MarketReports/financialfcmdata/index.htm. Additionally,
as of December 31, 2022, there are 974 introducing brokers in
commodities according to the Commodity Futures Trading Commission.
These two counts total 1,036.
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Estimated Total Annual Burden: 15,960 hours (15,960 respondents x 1
hour).
FinCEN's estimate of the number of affected financial institutions
accounts for all domestic financial institutions that could potentially
maintain correspondent accounts for foreign banks or process
transactions that may involve Iranian financial institutions. FinCEN
does this in order to establish the burden associated with all
potentially affected U.S. financial institutions conducting appropriate
due diligence and not processing transactions that may involve Iranian
financial institutions. There are approximately 15,960 such financial
institutions doing business in the United States that could potentially
maintain correspondent accounts or process transactions that may
involve Iranian financial institutions.
Records required to be retained under the BSA must be retained for
five years. Generally, information collected pursuant to the BSA is
confidential, but may be shared as provided by law with regulatory and
law enforcement authorities.
Request for Comments
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
OMB control number. Comments submitted in response to this notice will
be summarized and/or included in a request for OMB approval. All
[[Page 14442]]
comments will become a matter of public record. Comments are invited
on: (a) 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; (b) the accuracy of the
agency's estimate of the burden of the collection of information; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; (d) 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 (e)
estimates of capital or start-up costs, cost of operation and
maintenance, and cost involved in purchasing services.
Himamauli Das,
Acting Director, Financial Crimes Enforcement Network.
[FR Doc. 2023-04713 Filed 3-7-23; 8:45 am]
BILLING CODE 4810-02-P