Agency Information Collection Activities; Proposed Collection; Comment Request; Beneficial Ownership Information Requests, 5995-6000 [2024-01828]
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Federal Register / Vol. 89, No. 20 / Tuesday, January 30, 2024 / Notices
the CHMSL do not provide a conflicting
message. The illumination of the
CHMSL is intended to signify that the
vehicles brakes are being applied and
that the vehicle might be decelerating.
Hazard warning lamps are intended as
a more general message to nearby
drivers that extra attention should be
given to the vehicle. A brief
illumination of the CHMSL while
activating the hazard warning lamps
would not confuse the intended general
message, nor would the brief
illumination in the absence of the other
brake lamps cause confusion that the
brakes were unintentionally applied.’’
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VI. NHTSA’s Analysis
The burden of establishing the
inconsequentiality of a failure to comply
with a performance requirement in an
FMVSS is substantial and difficult to
meet. Accordingly, the Agency has not
found many such noncompliances
inconsequential.4
In determining inconsequentiality of a
noncompliance, NHTSA focuses on the
safety risk to individuals who
experience the type of event against
which a recall would otherwise
protect.5 In general, NHTSA does not
consider the absence of complaints or
injuries when determining if a
noncompliance is inconsequential to
safety. The absence of complaints does
not mean vehicle occupants have not
experienced a safety issue, nor does it
mean that there will not be safety issues
in the future.6 Further, because each
inconsequential noncompliance petition
must be evaluated on its own facts and
determinations are highly factdependent, NHTSA does not consider
prior determinations as binding
4 Cf. Gen. Motors Corporation; Ruling on Petition
for Determination of Inconsequential
Noncompliance, 69 FR 19897, 19899 (Apr. 14,
2004) (citing prior cases where noncompliance was
expected to be imperceptible, or nearly so, to
vehicle occupants or approaching drivers).
5 See Gen. Motors, LLC; Grant of Petition for
Decision of Inconsequential Noncompliance, 78 FR
35355 (June 12, 2013) (finding noncompliance had
no effect on occupant safety because it had no effect
on the proper operation of the occupant
classification system and the correct deployment of
an air bag); Osram Sylvania Prods. Inc.; Grant of
Petition for Decision of Inconsequential
Noncompliance, 78 FR 46000 (July 30, 2013)
(finding occupant using noncompliant light source
would not be exposed to significantly greater risk
than occupant using similar compliant light
source).
6 See Morgan 3 Wheeler Limited; Denial of
Petition for Decision of Inconsequential
Noncompliance, 81 FR 21663, 21666 (Apr. 12,
2016); see also United States v. Gen. Motors Corp.,
565 F.2d 754, 759 (D.C. Cir. 1977) (finding defect
poses an unreasonable risk when it ‘‘results in
hazards as potentially dangerous as sudden engine
fire, and where there is no dispute that at least some
such hazards, in this case fires, can definitely be
expected to occur in the future’’).
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precedent. Petitioners are reminded that
they have the burden of persuading
NHTSA that the noncompliance is
inconsequential to safety.
Polaris did not elaborate on the
sensitivity of the lamp activation but
did indicate that it can occur while
going over a large bump like on railroad
tracks and rumble strips. The Agency
believes that the stop lamp illuminating
for 500 milliseconds will be noticeable
to other road users and going over a
large bump on the road like railroad
tracks or rumble strips is not an
uncommon occurrence for motorists.
Activation of the stop lamps for a
purpose other than to indicate stopping
or slowing will create confusion for the
driver following the noncompliant
vehicle as to the meaning of the signal,
with the potential of causing the
following driver to apply the brakes in
his or her vehicle inappropriately. This
is consistent with a decision on a
petition by Daimler Trucks North
America, and in response to a request
for interpretation from General Motors.7
NHTSA continues to adhere to the
position that inappropriate and
misleading activation of stop lamps is
consequential to safety.
Polaris cited three separate Agency
decisions to past petitions for
inconsequential noncompliance in its
petition. The Agency does not find any
of these past decisions to be relevant to
the subject petition. Each decision is
addressed below:
First, the Daimler Trucks North
America petition granted by the Agency
involved the automatic illumination of
the stop lamps when the low air
pressure warning indicator light
illuminates, which is an event that will
occur once and will need to be resolved
by the operator before continuing
operation of the vehicle.8 The affected
vehicle is taken out of service until the
brake system can be repaired, which
distinguishes that decision from the
subject petition.
Second, the General Motors, LLC
(GM) petition concerns the activation of
parking lamps which distinguishes it
from the subject petition because
parking lamps and stop lamps serve
completely different functions.9
Furthermore, other factors distinguish
the two petitions including that the non7 See Daimler Trucks North America, Denial of
Petition for Decision of Inconsequential
Noncompliance, 85 FR 67812 (Oct. 26, 2020); Letter
from F. Seales, Jr., NHTSA, to C. Terry, GM (May
26, 2000), https://isearch.nhtsa.gov/files/21281.
ztv.html.
8 See Daimler Trucks North America, Grant of
Petition for Decision of Inconsequential
Noncompliance, 87 FR 14325 (March 24, 2022),
9 83 FR 7847 (February 22, 2018).
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5995
compliance in the GM petition only
occurs during the daytime when parking
lamps are generally not in use, requires
a fairly high degree of unlikely user
intervention for the non-compliance to
occur, and the non-compliance will
correct itself during operation. NHTSA
believes that the noncompliance at issue
here has the potential to occur more
frequently because large bumps, railroad
tracks, and rumble strips are obstacles
found on roads throughout the United
States.
The third decision notice which was
cited, which is also in response to a GM
petition, involved the brief activation of
the center high-mounted stop lamp
(‘‘CHMSL’’) when the hazard warning
lamp switch was depressed to its limit
of travel.10 The Agency has previously
concluded that this brief illumination of
the CHMSL upon activation of the
hazard warning signal did ‘‘not provide
a conflicting message’’ and ‘‘would not
confuse the intended general message.’’
In contrast, noticeable activation of the
stop lamps in the manner described in
Polaris’s petition would send a
conflicting or confusing message since
the vehicle appears to be braking when
it is not.
VII. NHTSA’s Decision
In consideration of the foregoing,
NHTSA has decided that Polaris has not
met its burden of persuasion that the
subject FMVSS No. 108 noncompliance
is inconsequential to motor vehicle
safety. Accordingly, Polaris’s petition is
hereby denied and Polaris is
consequently obligated to provide
notification of and free remedy for that
noncompliance under 49 U.S.C. 30118
and 30120.
(Authority: 49 U.S.C. 30118, 30120:
delegations of authority at 49 CFR 1.95 and
501.8)
Eileen Sullivan,
Associate Administrator for Enforcement.
[FR Doc. 2024–01736 Filed 1–29–24; 8:45 am]
BILLING CODE 4910–59–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Collection;
Comment Request; Beneficial
Ownership Information Requests
Financial Crimes Enforcement
Network (FinCEN), Treasury.
AGENCY:
10 See General Motors Corporation; Grant of
Application for Decision of Inconsequential
Noncompliance, 66 FR 32871 (June 18, 2001).
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Federal Register / Vol. 89, No. 20 / Tuesday, January 30, 2024 / Notices
Notice and request for
comments.
ACTION:
FinCEN invites all interested
parties to comment on the proposed
information collection associated with
requests made to FinCEN, by certain
persons, for beneficial ownership
information, consistent with the
requirements of the Beneficial
Ownership Information Access and
Safeguards final rule. The details
included in the information collection
are listed below. This request for
comment is made pursuant to the
Paperwork Reduction Act of 1995.
DATES: Written comments must be
received on or before April 1, 2024.
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–2024–
0002 and the specific Office of
Management and Budget (OMB) control
number 1506–0077.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
Number FINCEN–2024–0002 and OMB
control number 1506–0077.
Please submit comments by one
method only. Comments will be
reviewed consistent with the Paperwork
Reduction Act of 1995 (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:
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SUMMARY:
I. Statutory and Regulatory Provisions
FinCEN issued the Beneficial
Ownership Information Access and
Safeguards final rule (the ‘‘BOI Access
Rule’’) on December 22, 2023,1
regarding access by authorized
recipients to beneficial ownership
information (BOI) that will be reported
to FinCEN pursuant to Section 6403 of
the Corporate Transparency Act (CTA),
enacted into law as part of National
Defense Authorization Act for Fiscal
Year 2021 (NDAA).2 The BOI Access
1 FinCEN, Beneficial Ownership Information
Access and Safeguards, 88 FR 88732 (Dec. 22,
2023), available at https://www.federalregister.gov/
documents/2023/12/22/2023-27973/beneficialownership-information-access-and-safeguards.
2 Specifically, the CTA is Title LXIV of the
William M. (Mac) Thornberry National Defense
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Rule implements the strict protocols
required by the CTA to protect sensitive
personally identifiable information (PII)
reported to FinCEN and establish the
circumstances in which specified
recipients have access to BOI, along
with the data protection protocols and
oversight mechanisms applicable to
each recipient category. The disclosure
of BOI to authorized recipients in
accordance with appropriate protocols
and oversight will help law enforcement
and national security agencies prevent
and combat money laundering, terrorist
financing, tax fraud, and other illicit
activity, as well as protect national
security.
II. Paperwork Reduction Act of 1995 3
Title: Beneficial Ownership
Information (BOI) Requests.
OMB Control Number: 1506–0077.
Type of Review: Regular.
Description: As explained in the
regulatory impact analysis (RIA) of the
BOI Access Rule, the rule requires State,
local, and Tribal agencies and financial
institutions that access BOI to satisfy
certain security and confidentiality
requirements, including establishing
certain standards and procedures, and
developing and implementing
safeguards. As a prerequisite for access
to BOI, the rule also requires State,
local, and Tribal agencies and financial
institutions to provide a certification for
each BOI request. Along with the
certification, State, local, and Tribal
agencies and financial institutions will
also provide information by filling out
data fields for each BOI request; these
data fields are set out in the Appendix.
While some data fields will be optional,
others will be required.
As previewed in the BOI Access Rule,
FinCEN is issuing this notice with
regard to the information collection
associated with such BOI requests.
Thus, this notice seeks comment only
on the burden for the information
collection associated with such BOI
requests, which corresponds to the
burden associated with ‘‘submit[ting]
written certification for each request
that it meets certain requirements.’’
Further details about those burdens are
set forth in the BOI Access Rule RIA
(see Action G within Tables 1 and 2)
and below. Also, as previously noted in
the BOI Access Rule, FinCEN intends to
Authorization Act for Fiscal Year 2021, Public Law
116–283 (Jan. 1, 2021). Division F of the NDAA is
the Anti-Money Laundering Act of 2020, which
includes the CTA. Section 6403 of the CTA, among
other things, amends the Bank Secrecy Act (BSA)
by adding a new section 5336, Beneficial
Ownership Information Reporting Requirements, to
subchapter II of chapter 53 of title 31, United States
Code.
3 Public Law 104–13, 44 U.S.C. 3506(c)(2)(A).
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provide additional detail regarding the
form and manner of BOI requests for all
categories of authorized recipients
through specific instructions and
guidance.
The following analysis represents the
entirety of the burden under OMB
control number 1506–0077, which is
associated with the BOI Access Rule.
FinCEN previously solicited public
comment on the full burden of the
Access Rule, including the certification
requirement for the information
collection associated with BOI requests,
as part of that rulemaking.
Form: None.
Affected Public: State, local and
Tribal agencies, self-regulatory
organizations (SROs), and financial
institutions with customer due diligence
requirements under applicable law, as
defined in the final BOI access rule.
While Federal and foreign requesters are
able to access BOI after meeting specific
requirements, FinCEN does not include
them in the PRA analysis because the
regulations implementing the PRA
define ‘‘person’’ as an individual,
partnership, association, corporation
(including operations of governmentowned contractor-operated facilities),
business trust, or legal representative,
an organized group of individuals, a
State, territorial, tribal, or local
government or branch thereof, or a
political subdivision of a State, territory,
Tribal, or local government or a branch
of a political subdivision.4 For foreign
requesters in particular, FinCEN
assumes that such requests will be made
at the national level.
Estimated Number of Respondents:
15,934 entities. This total is composed
of an estimated 215 State, local, and
Tribal agencies, of which 158 are State,
local, and Tribal law enforcement
agencies and 57 are State regulatory
agencies, 3 SROs, and 15,716 financial
institutions.5 While the requirements in
the rule are only imposed on those that
optionally access BOI, for purposes of
PRA burden analysis, FinCEN assumes
maximum participation from State,
local, and Tribal agencies, SROs, and
financial institutions.
Frequency of Response: As required;
varies depending on the requirement.
Estimated Time per Respondent: See
‘‘Hours per Entity’’ column in Table 1
below for estimated time for each
requirement per respondent.
Estimated Total Annual Reporting
and Recordkeeping Burden: FinCEN
estimates that during year 1 the annual
4 See
5 CFR 1320.3(k).
Table 1 in the RIA of the BOI Access Rule
for the types of financial institutions covered by
this notice. 88 FR 88789 (Dec. 22, 2023).
5 See
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hourly burden will be 8,743,781 hours.
In year 2 and onward, FinCEN estimates
that the annual hourly burden will be
3,616,964 hours. The annual estimated
burden hours for State, local, and Tribal
entities and SROs is 2,268,789 hours in
the first year, and 1,699,612 hours in
year 2 and onward. As shown in Table
1 below, the hourly burden in year 1 for
State, local, and Tribal agencies and
SROs includes the hourly burden
associated with the following
requirements in the rule: enter into an
agreement with FinCEN and establish
standards and procedures (Action B);
establish a secure system to store BOI
(Action D); establish and maintain an
auditable system of standardized
records for requests (Action E); submit
written certification for each request
that it meets certain requirements
(Action G); restrict access to appropriate
persons within the entity (Action H);
conduct an annual audit and cooperate
with FinCEN’s annual audit (Action I);
obtain certification of standards and
procedures, initially and then semiannually, by the head of the entity
(Action J); and provide annual reports
on procedures (Action K). The hourly
burden in year 2 and onward for State,
local, and Tribal agencies and SROs is
associated with the same requirements
as year 1, with the exception of Action
B because FinCEN expects this action
will result in costs for these entities in
year 1 only.
The annual estimated hourly burden
for financial institutions is 6,474,992
hours in the first year and 1,917,352
hours in year 2 and onward. The hourly
burden for financial institutions in year
1 is associated with the following:
develop and implement administrative
and physical safeguards (Action A);
develop and implement technical
safeguards (Action C); obtain and
document customer consent (Action F);
submit certification for each request that
it meets certain requirements (Action
G); undergo training (Action H); comply
with certain geographic restrictions
(Action L); and notify FinCEN if they
receive an information demand from a
foreign government (Action M). The
hourly burden in year 2 and onward for
financial institutions is associated only
with the requirements for Actions F, G,
and H because FinCEN expects the other
actions will result in costs for these
entities in year 1 only.
Annual estimated burden declines in
year 2 and onward because State, local,
and Tribal agencies, SROs, and financial
institutions no longer need to complete
Actions A and B, and have a lower
hourly burden for Actions E and F.
State, local, and Tribal law enforcement
agencies have a lower hourly burden for
Action G. Table 1 lists the type of entity,
the number of entities, the hours per
entity, and the total hourly burden by
action. For Actions A, B, C, D, E, F, I,
J, K, L, and M the hours per entity are
5997
the maximum of the range estimated in
the cost analysis of the RIA. For Action
G and H, the hours per entity
calculations are specified in footnotes to
Table 1. Total annual hourly burden is
calculated by multiplying the number of
entities by the hours per entity for each
action. In each subsequent year after
initial implementation, FinCEN
estimates that the total hourly annual
burden is 3,616,964. This results in a 5year average burden estimate of
approximately 4,642,327 hours.6
This notice seeks comment on the
estimated total annual reporting and
recordkeeping burden for the
information collection associated with
BOI requests, specifically the
requirement to submit written
certification for each request that it
meets certain requirements (Action G in
Table 1 below). FinCEN previously
provided notice and an opportunity for
public comment on all actions that
constitute the reporting and
recordkeeping burden associated with
the BOI Access Rule, including the
certification requirement, as well as the
estimated total annual burden, through
the BOI Access rulemaking. As
explained above, FinCEN is issuing this
notice with regard to the information
collection associated with BOI requests;
therefore, this notice seeks comment
only on the certification requirement.
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TABLE 1—ANNUAL HOURLY BURDEN ASSOCIATED WITH RULE REQUIREMENTS
Action
Type of entity
A. Develop and implement
administrative and physical
safeguards.
B. Enter into an agreement
with FinCEN and establish
standards and procedures.
C. Develop and implement
technical safeguards.
D. Establish a secure system
to store BOI.
E. Establish and maintain an
auditable system of standardized records for requests.
F. Obtain and document customer consent.
G. Submit certification for
each request that it meets
certain requirements 1.
G. Submit written certification
for each request that it
meets certain requirements,
including court authorization.
G. Submit written certification
for each request that it
meets certain requirements.
Financial institutions ..............
State, local, and Tribal agencies and SROs.
Financial institutions ..............
17:23 Jan 29, 2024
Hours per entity
240 in Year 1; 0 in Years 2+
3,771,840 in Year 1; 0 in
Years 2+.
218
300 in Year 1; 0 in Years 2+
65,400 in Year 1; 0 in Years
2+.
0 in Year 1; 0 in Years 2+ .....
0 in Year 1; 0 in Years 2+.
218
300 in Year 1; 4 in Years 2+
218
200 in Year 1; 20 in Years 2+
65,400 in Year 1; 872 in
Years 2+.
43,600 in Year 1; 4,360 in
Years 2+.
Financial institutions ..............
15,716
70 in Year 1; 20 in Years 2+
Financial institutions ..............
15,716
94 in Year 1; 94 in Years 2+
State, local, and Tribal law
enforcement.
State regulatory agencies and
SROs.
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1,100,120 in Year 1; 314,320
in Years 2+.
1,474,161 in Year 1;
1,474,161 in Years 2+.
158
12,975 in Year 1; 10,443 in
Years 2+.
2,050,003 in Year 1;
1,649,994 in Years 2+.
60
125 in Year 1; 125 in Years
2+.
7,500 in Year 1; 7,500 in
Years 2+.
of 3,616,964 + Year 3 burden hours of 3,616,964 +
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Total annual hourly burden
15,716
15,716
State, local, and Tribal agencies and SROs.
State, local, and Tribal agencies and SROs.
6 The 5-year average equals the sum of (Year 1
burden hours of 8,743,781 + Year 2 burden hours
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Number of
entities
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Year 4 burden hours of 3,616,964 + Year 5 burden
hours of 3,616,964) divided by 5.
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TABLE 1—ANNUAL HOURLY BURDEN ASSOCIATED WITH RULE REQUIREMENTS—Continued
Action
Type of entity
H. Undergo training 2 ..............
Financial institutions ..............
H. Restrict access to appropriate persons within the
entity, which specifies that
appropriate persons will undergo training 3.
I. Conduct an annual audit
and cooperate with
FinCEN’s annual audit.
J. Obtain certification of
standards and procedures
initially and then semi-annually, by the head of the entity.
K. Provide initial and then an
annual report on procedures.
L. Comply with certain geographic restrictions.
M. Notify FinCEN of information demand from foreign
government.
Total Annual Hourly Burden.
Number of
entities
Hours per entity
Total annual hourly burden
15,716
8 in Year 1; 8 in Years 2+ .....
128,871
Years
2,006 in
Years
in Year 1; 128,871 in
2+.
Year 1; 2,006 in
2+.
State, local, and Tribal agencies and SROs.
218
9 in Year 1, 9 in Years 2+ .....
State, local, and Tribal agencies and SROs.
218
160 in Year 1; 160 in Years
2+.
34,880 in Year 1; 34,880 in
Years 2+.
State, local, and Tribal agencies and SROs.
218
Included in I. ..........................
Included in I.
State, local, and Tribal agencies and SROs.
218
Included in I. ..........................
Included in I.
Financial institutions ..............
15,716
0 in Year 1; 0 in Years 2+ .....
0 in Year 1; 0 in Years 2+.
Financial institutions ..............
15,716
0 in Year 1; 0 in Years 2+ .....
0 in Year 1; 0 in Years 2+.
................................................
........................
................................................
8,743,781 in Year 1;
3,616,964 in Years 2+.
1 For
all types of entities, the hours per entity for Action G is the per entity share of the aggregate burden estimated in the RIA.
financial institutions, the hours per entity for Action H equals the weighted average of the large and small financial institutions’ maximum
burden estimated in the RIA.
3 For State, local, and Tribal agencies and SROs, the hours per entity for Action H equals the per entity share of the aggregate burden.
2 For
Estimated Total Annual Reporting
and Recordkeeping Cost: As described
in Table 3 of the BOI Access Rule RIA,
FinCEN calculated the fully loaded
hourly wage for each type of affected
entity type.7 Using these estimated
wages, the total cost of the annual
burden in year 1 is $868,200,270. In
year 2 and onward, FinCEN estimates
that the total cost of the annual burden
is $339,309,502, owing to Actions A and
B only imposing burdens in year 1,
Actions D and E having lower annual
per entity burdens, and Action G having
lower burden per request for State,
local, and Tribal law enforcement
agencies. The annual estimated cost for
State, local, and Tribal agencies and
SROs is $181,851,118 in the first year
and $136,070,190 in year 2 and onward.
The annual estimated cost for financial
institutions is $686,349,152 in the first
year and $203,239,312 in year 2 and
onward. The 5-year average annual cost
estimate is $445,087,656.8
This notice seeks comment on the
estimated total annual reporting and
recordkeeping cost for the information
collection associated with BOI requests,
specifically the requirement to ‘‘submit
written certification for each request
that it meets certain requirements’’
(Action G in Table 2 below). FinCEN
previously provided notice and an
opportunity for public comment on all
actions that constitute the reporting and
recordkeeping cost associated with the
BOI Access Rule, including the
certification requirement, as well as the
estimated total annual reporting and
recordkeeping cost, through the BOI
Access rulemaking. As FinCEN is
issuing this notice with regard to the
information collection associated with
BOI requests, this notice seeks comment
only on the certification requirement.
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TABLE 2—ANNUAL COST ASSOCIATED WITH RULE REQUIREMENTS
Action
Type of entity
A. Develop and implement
administrative and physical
safeguards.
B. Enter into an agreement
with FinCEN and establish
standards and procedures.
C. Develop and implement
technical safeguards.
D. Establish a secure system
to store BOI.
Financial institutions ..............
7 88
17:23 Jan 29, 2024
$106
State, local, and Tribal agencies.
80
Financial institutions ..............
106
State, local, and Tribal agencies.
80
FR 88791 (Dec. 22, 2023).
VerDate Sep<11>2014
Hourly wage
Total annual hourly burden
3,771,840 in Year 1; 0 in
Years 2+.
$399,815,040 in Year 1; $0 in
Years 2+.
65,400 in Year 1; 0 in Years
2+.
$5,232,000 in Year 1; $0 in
Years 2+.
0 in Year 1; 0 in Years 2+ .....
$0 in Year 1; $0 in Years 2+.
65,400 in Year 1; 872 in
Years 2+.
$5,232,000 in Year 1;
$69,760 in Years 2+.
8 The 5-year average equals the sum of (Year 1
costs of $868,200,270 + Year 2 costs of
$339,309,502 + Year 3 costs of $339,309,502 + Year
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Total annual cost
4 costs of $339,309,502 + Year 5 costs of
$339,309,502) divided by 5.
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TABLE 2—ANNUAL COST ASSOCIATED WITH RULE REQUIREMENTS—Continued
Action
Type of entity
E. Establish and maintain an
auditable system of standardized records for requests.
F. Obtain and document customer consent.
G. Submit certification for
each request that it meets
certain requirements.
G. Submit written certification
for each request that it
meets certain requirements,
including court authorization.
G. Submit written certification
for each request that it
meets certain requirements.
H. Undergo training ................
State, local, and Tribal agencies.
80
Financial institutions ..............
106
Financial institutions ..............
106
H. Restrict access to appropriate persons within the
agency, which specifies that
appropriate persons will undergo training.
I. Conduct an annual audit
and cooperate with
FinCEN’s annual audit.
J. Obtain certification of
standards and procedures
initially and then semi-annually, by the head of the entity.
K. Provide initial and then an
annual report on procedures.
L. Comply with certain geographic restrictions.
M. Notify FinCEN of information demand from foreign
government.
Actions B, D, E, G, H, I–K .....
khammond on DSKJM1Z7X2PROD with NOTICES
Total annual cost
43,600 in Year 1; 4,360 in
Years 2+.
$3,488,000 in Year 1;
$348,800 in Years 2+.
1,100,120 in Year 1; 314,320
in Years 2+.
1,474,161 in Year 1;
1,474,161 in Years 2+.
$116,612,720 in Year 1;
$33,317,920 in Years 2+.
$156,261,066 in Year 1;
$156,261,066 in Years 2+.
80
2,050,003 in Year 1;
1,649,994 in Years 2+.
$164,000,240 in Year 1;
$131,999,520 in Years 2+.
State regulatory agencies ......
80
7,500 in Year 1; 7,500 in
Years 2+.
$600,000 in Year 1; $600,000
in Years 2+.
Financial institutions ..............
106
State, local, and Tribal agencies.
80
128,871
Years
2,006 in
Years
$13,660,326 in Year 1;
$13,660,326 in Years 2+.
$160,480 in Year 1; $160,480
in Years 2+.
State, local, and Tribal agencies.
80
34,880 in Year 1; 34,880 in
Years 2+.
$2,790,400 in Year 1;
$2,790,400 in Years 2+.
State, local, and Tribal agencies.
80
Included in I. ..........................
Included in I.
State, local, and Tribal agencies.
80
Included in I. ..........................
Included in I.
Financial institutions ..............
106
0 in Year 1; 0 in Years 2+ .....
$0 in Year 1; $0 in Years 2+.
Financial institutions ..............
106
0 in Year 1; 0 in Years 2+ .....
$0 in Year 1; $0 in Years 2+.
SRO .......................................
106
3,283 in Year 1; 955 in Years
2+.
$347,998 in Year 1; $101,230
in Years 2+.
in Year 1; 128,871 in
2+.
Year 1; 2,006 in
2+.
........................
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 included in the request
for OMB approval. All 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
17:23 Jan 29, 2024
Total annual hourly burden
State, local, and Tribal law
enforcement.
Total Annual Cost ...........
VerDate Sep<11>2014
Hourly wage
Jkt 262001
$868,200,270 in Year 1;
$339,309,502 in Years 2+.
of technology; and (e) estimates of
capital or start-up costs and costs of
operation, maintenance, and purchase
of services required to provide
information.
(Authority: 44 U.S.C. 3501 et seq.)
Andrea M. Gacki,
Director, Financial Crimes Enforcement
Network.
Appendix—Beneficial Ownership
Information (BOI) Request: Summary of
Data Fields by Authorized Recipient
I. Financial Institutions
Proposed data fields and certification:
Company name (reporting company legal
name)
Identifier type (reporting company tax
identification number type; select one
from list of options)
• EIN (Employer Identification Number)
PO 00000
Frm 00145
Fmt 4703
Sfmt 4703
• SSN/ITIN (Social Security Number/
Individual Taxpayer Identification
Number)
• Foreign
Company identifier (reporting company tax
identification number)
[Select ‘‘I agree’’] I certify on behalf of the
financial institution making this request that:
The financial institution is subject to
customer due diligence requirements under
applicable law and is requesting beneficial
ownership information from FinCEN to
facilitate the financial institution’s
compliance with those requirements; the
financial institution has obtained and
documented the consent of the above
identified company to request its beneficial
ownership information from FinCEN; and the
financial institution has fulfilled all other
requirements of 31 CFR 1010.955(d)(2).
II. State, Local, and Tribal Law Enforcement
Agencies
Proposed data fields and certification:
Agency Reference (agency’s internal
reference name for BOI Request)
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Federal Register / Vol. 89, No. 20 / Tuesday, January 30, 2024 / Notices
Name of court of competent jurisdiction
Date of court authorization
Court authorization description (description
of the information the court has
authorized the agency to seek)
Checkbox Request on behalf of another
person in the same agency (select this
checkbox if the BOI Request is made on
behalf of another person in the same
agency; provide the following
information for this person, as
applicable: first name; middle name; last
name; title; city; country/jurisdiction;
state; ZIP/foreign postal code)
[Select ‘‘I agree’’] I certify that a court of
competent jurisdiction has authorized my
agency to seek this information in a criminal
or civil investigation and that the requested
information is relevant to the criminal or
civil investigation.
III. State Regulatory Agencies
Proposed data fields and certification:
Financial Institution(s)
Financial Institution Employer Identification
Number
Reporting Company Legal Name
Reporting Company Tax Identification
Number
Start Date
End Date
[Select ‘‘I agree’’] I certify that my agency
is authorized by law to assess, supervise,
enforce, or otherwise determine the
compliance of a relevant financial institution
with customer due diligence requirements
under applicable law and that my agency
will use the requested information solely for
the purpose of conducting such activities.
[FR Doc. 2024–01828 Filed 1–29–24; 8:45 am]
BILLING CODE 4810–02–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Notice of OFAC Sanctions Actions
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:
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
determination that one or more
applicable legal criteria were satisfied.
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 effective date(s).
FOR FURTHER INFORMATION CONTACT:
OFAC: Bradley Smith, Director, tel.:
202–622–2490; Associate Director for
Global Targeting, tel.: 202–622–2420;
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
17:23 Jan 29, 2024
Jkt 262001
Assistant Director for Licensing, tel.:
202–622–2480; Assistant Director for
Regulatory Affairs, tel.: 202–622–4855;
or Assistant Director for Sanctions
Enforcement, Compliance & Analysis,
tel.: 202–622–2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
The SDN List and additional
information concerning OFAC sanctions
programs are available on OFAC’s
website (ofac.treasury.gov).
Notice of OFAC Action(s)
On January 25, 2024, OFAC
determined that the property and
interests in property subject to U.S.
jurisdiction of the following persons are
blocked under the relevant sanctions
authority listed below.
Individuals
1. AL-ATIFI, Mohamed (a.k.a. AL-ATIFI,
Mohammad; a.k.a. AL-ATIFI, Mohammed;
a.k.a. AL-ATIFI, Muhammad Nasser), Yemen;
DOB 1969; POB Bani Atef Village, Sanaa
Governorate, Yemen; nationality Yemen;
Gender Male; Secondary sanctions risk:
section 1(b) of Executive Order 13224, as
amended by Executive Order 13886
(individual) [SDGT].
Designated pursuant to section 1(a)(iii)(C)
of Executive Order 13224 of September 23,
2001, ‘‘Blocking Property and Prohibiting
Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism,’’
66 FR 49079, as amended by Executive Order
13886 of September 9, 2019, ‘‘Modernizing
Sanctions To Combat Terrorism,’’ 84 FR
48041 (E.O. 13224, as amended), for having
materially assisted, sponsored, or provided
financial, material, or technological support
for, or goods or service to or in support of,
an act of terrorism, as defined in section 3(d)
of E.O. 13224, as amended.
2. AL-QADIRI, Muhammad Ali (a.k.a. ALQADIRI, Muhammad; a.k.a. AL-QADRI,
Muhammad), Yemen; DOB 1970; POB
Hudaydah Governorate, Yemen; nationality
Yemen; Gender Male; Secondary sanctions
risk: section 1(b) of Executive Order 13224,
as amended by Executive Order 13886
(individual) [SDGT].
Designated pursuant to section 1(a)(iii)(C)
of E.O. 13224, as amended, for having
materially assisted, sponsored, or provided
financial, material, or technological support
for, or goods or service to or in support of,
an act of terrorism, as defined in section 3(d)
of E.O. 13224, as amended.
3. AL-TALIBI, Muhammad Ahmad (a.k.a.
‘‘AL-TALIBI, Abi Ja’far’’), Yemen; DOB 01 Jan
1983; POB Dhahyan, Sa’dah, Yemen;
nationality Yemen; Gender Male; Secondary
sanctions risk: section 1(b) of Executive
Order 13224, as amended by Executive Order
13886; Passport 01197425 (Yemen)
(individual) [SDGT].
Designated pursuant to section 1(a)(iii)(C)
of E.O. 13224, as amended, for having
materially assisted, sponsored, or provided
financial, material, or technological support
for, or goods or service to or in support of,
PO 00000
Frm 00146
Fmt 4703
Sfmt 4703
an act of terrorism, as defined in section 3(d)
of E.O. 13224, as amended.
4. AL-NABI, Muhammad Fadl Abd (a.k.a.
NABI, Mohammed Fadl Abdul), Yemen; DOB
01 Jan 1952; nationality Yemen; Gender
Male; Secondary sanctions risk: section 1(b)
of Executive Order 13224, as amended by
Executive Order 13886 (individual) [SDGT].
Designated pursuant to section 1(a)(iii)(C)
of E.O. 13224, as amended, for having
materially assisted, sponsored, or provided
financial, material, or technological support
for, or goods or service to or in support of,
an act of terrorism, as defined in section 3(d)
of E.O. 13224, as amended.
Dated: January 25, 2024.
Bradley T. Smith,
Director, Office of Foreign Assets Control,
U.S. Department of the Treasury.
[FR Doc. 2024–01775 Filed 1–29–24; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Notice of OFAC Sanctions Actions
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:
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
determination that one or more
applicable legal criteria were satisfied.
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: Bradley Smith, Director, tel.:
202–622–2490; Associate Director for
Global Targeting, tel.: 202–622–2420;
Assistant Director for Licensing, tel.:
202–622–2480; Assistant Director for
Regulatory Affairs, tel.: 202–622–4855;
or Assistant Director for Sanctions
Enforcement, Compliance & Analysis,
tel.: 202–622–2490.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Electronic Availability
The SDN List and additional
information concerning OFAC sanctions
programs are available on OFAC’s
website (ofac.treasury.gov).
Notice of OFAC Action(s)
On January 22, 2024, OFAC
determined that the property and
E:\FR\FM\30JAN1.SGM
30JAN1
]]>Agencies
[Federal Register Volume 89, Number 20 (Tuesday, January 30, 2024)]
[Notices]
[Pages 5995-6000]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01828]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Collection;
Comment Request; Beneficial Ownership Information Requests
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
[[Page 5996]]
ACTION: Notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: FinCEN invites all interested parties to comment on the
proposed information collection associated with requests made to
FinCEN, by certain persons, for beneficial ownership information,
consistent with the requirements of the Beneficial Ownership
Information Access and Safeguards final rule. The details included in
the information collection are listed below. This request for comment
is made pursuant to the Paperwork Reduction Act of 1995.
DATES: Written comments must be received on or before April 1, 2024.
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-2024-0002 and the specific Office of Management and Budget (OMB)
control number 1506-0077.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0002 and OMB control number 1506-0077.
Please submit comments by one method only. Comments will be
reviewed consistent with the Paperwork Reduction Act of 1995 (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
FinCEN issued the Beneficial Ownership Information Access and
Safeguards final rule (the ``BOI Access Rule'') on December 22,
2023,\1\ regarding access by authorized recipients to beneficial
ownership information (BOI) that will be reported to FinCEN pursuant to
Section 6403 of the Corporate Transparency Act (CTA), enacted into law
as part of National Defense Authorization Act for Fiscal Year 2021
(NDAA).\2\ The BOI Access Rule implements the strict protocols required
by the CTA to protect sensitive personally identifiable information
(PII) reported to FinCEN and establish the circumstances in which
specified recipients have access to BOI, along with the data protection
protocols and oversight mechanisms applicable to each recipient
category. The disclosure of BOI to authorized recipients in accordance
with appropriate protocols and oversight will help law enforcement and
national security agencies prevent and combat money laundering,
terrorist financing, tax fraud, and other illicit activity, as well as
protect national security.
---------------------------------------------------------------------------
\1\ FinCEN, Beneficial Ownership Information Access and
Safeguards, 88 FR 88732 (Dec. 22, 2023), available at https://www.federalregister.gov/documents/2023/12/22/2023-27973/beneficial-ownership-information-access-and-safeguards.
\2\ Specifically, the CTA is Title LXIV of the William M. (Mac)
Thornberry National Defense Authorization Act for Fiscal Year 2021,
Public Law 116-283 (Jan. 1, 2021). Division F of the NDAA is the
Anti-Money Laundering Act of 2020, which includes the CTA. Section
6403 of the CTA, among other things, amends the Bank Secrecy Act
(BSA) by adding a new section 5336, Beneficial Ownership Information
Reporting Requirements, to subchapter II of chapter 53 of title 31,
United States Code.
---------------------------------------------------------------------------
II. Paperwork Reduction Act of 1995 3
---------------------------------------------------------------------------
\3\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
---------------------------------------------------------------------------
Title: Beneficial Ownership Information (BOI) Requests.
OMB Control Number: 1506-0077.
Type of Review: Regular.
Description: As explained in the regulatory impact analysis (RIA)
of the BOI Access Rule, the rule requires State, local, and Tribal
agencies and financial institutions that access BOI to satisfy certain
security and confidentiality requirements, including establishing
certain standards and procedures, and developing and implementing
safeguards. As a prerequisite for access to BOI, the rule also requires
State, local, and Tribal agencies and financial institutions to provide
a certification for each BOI request. Along with the certification,
State, local, and Tribal agencies and financial institutions will also
provide information by filling out data fields for each BOI request;
these data fields are set out in the Appendix. While some data fields
will be optional, others will be required.
As previewed in the BOI Access Rule, FinCEN is issuing this notice
with regard to the information collection associated with such BOI
requests. Thus, this notice seeks comment only on the burden for the
information collection associated with such BOI requests, which
corresponds to the burden associated with ``submit[ting] written
certification for each request that it meets certain requirements.''
Further details about those burdens are set forth in the BOI Access
Rule RIA (see Action G within Tables 1 and 2) and below. Also, as
previously noted in the BOI Access Rule, FinCEN intends to provide
additional detail regarding the form and manner of BOI requests for all
categories of authorized recipients through specific instructions and
guidance.
The following analysis represents the entirety of the burden under
OMB control number 1506-0077, which is associated with the BOI Access
Rule. FinCEN previously solicited public comment on the full burden of
the Access Rule, including the certification requirement for the
information collection associated with BOI requests, as part of that
rulemaking.
Form: None.
Affected Public: State, local and Tribal agencies, self-regulatory
organizations (SROs), and financial institutions with customer due
diligence requirements under applicable law, as defined in the final
BOI access rule. While Federal and foreign requesters are able to
access BOI after meeting specific requirements, FinCEN does not include
them in the PRA analysis because the regulations implementing the PRA
define ``person'' as an individual, partnership, association,
corporation (including operations of government-owned contractor-
operated facilities), business trust, or legal representative, an
organized group of individuals, a State, territorial, tribal, or local
government or branch thereof, or a political subdivision of a State,
territory, Tribal, or local government or a branch of a political
subdivision.\4\ For foreign requesters in particular, FinCEN assumes
that such requests will be made at the national level.
---------------------------------------------------------------------------
\4\ See 5 CFR 1320.3(k).
---------------------------------------------------------------------------
Estimated Number of Respondents: 15,934 entities. This total is
composed of an estimated 215 State, local, and Tribal agencies, of
which 158 are State, local, and Tribal law enforcement agencies and 57
are State regulatory agencies, 3 SROs, and 15,716 financial
institutions.\5\ While the requirements in the rule are only imposed on
those that optionally access BOI, for purposes of PRA burden analysis,
FinCEN assumes maximum participation from State, local, and Tribal
agencies, SROs, and financial institutions.
---------------------------------------------------------------------------
\5\ See Table 1 in the RIA of the BOI Access Rule for the types
of financial institutions covered by this notice. 88 FR 88789 (Dec.
22, 2023).
---------------------------------------------------------------------------
Frequency of Response: As required; varies depending on the
requirement.
Estimated Time per Respondent: See ``Hours per Entity'' column in
Table 1 below for estimated time for each requirement per respondent.
Estimated Total Annual Reporting and Recordkeeping Burden: FinCEN
estimates that during year 1 the annual
[[Page 5997]]
hourly burden will be 8,743,781 hours. In year 2 and onward, FinCEN
estimates that the annual hourly burden will be 3,616,964 hours. The
annual estimated burden hours for State, local, and Tribal entities and
SROs is 2,268,789 hours in the first year, and 1,699,612 hours in year
2 and onward. As shown in Table 1 below, the hourly burden in year 1
for State, local, and Tribal agencies and SROs includes the hourly
burden associated with the following requirements in the rule: enter
into an agreement with FinCEN and establish standards and procedures
(Action B); establish a secure system to store BOI (Action D);
establish and maintain an auditable system of standardized records for
requests (Action E); submit written certification for each request that
it meets certain requirements (Action G); restrict access to
appropriate persons within the entity (Action H); conduct an annual
audit and cooperate with FinCEN's annual audit (Action I); obtain
certification of standards and procedures, initially and then semi-
annually, by the head of the entity (Action J); and provide annual
reports on procedures (Action K). The hourly burden in year 2 and
onward for State, local, and Tribal agencies and SROs is associated
with the same requirements as year 1, with the exception of Action B
because FinCEN expects this action will result in costs for these
entities in year 1 only.
The annual estimated hourly burden for financial institutions is
6,474,992 hours in the first year and 1,917,352 hours in year 2 and
onward. The hourly burden for financial institutions in year 1 is
associated with the following: develop and implement administrative and
physical safeguards (Action A); develop and implement technical
safeguards (Action C); obtain and document customer consent (Action F);
submit certification for each request that it meets certain
requirements (Action G); undergo training (Action H); comply with
certain geographic restrictions (Action L); and notify FinCEN if they
receive an information demand from a foreign government (Action M). The
hourly burden in year 2 and onward for financial institutions is
associated only with the requirements for Actions F, G, and H because
FinCEN expects the other actions will result in costs for these
entities in year 1 only.
Annual estimated burden declines in year 2 and onward because
State, local, and Tribal agencies, SROs, and financial institutions no
longer need to complete Actions A and B, and have a lower hourly burden
for Actions E and F. State, local, and Tribal law enforcement agencies
have a lower hourly burden for Action G. Table 1 lists the type of
entity, the number of entities, the hours per entity, and the total
hourly burden by action. For Actions A, B, C, D, E, F, I, J, K, L, and
M the hours per entity are the maximum of the range estimated in the
cost analysis of the RIA. For Action G and H, the hours per entity
calculations are specified in footnotes to Table 1. Total annual hourly
burden is calculated by multiplying the number of entities by the hours
per entity for each action. In each subsequent year after initial
implementation, FinCEN estimates that the total hourly annual burden is
3,616,964. This results in a 5-year average burden estimate of
approximately 4,642,327 hours.\6\
---------------------------------------------------------------------------
\6\ The 5-year average equals the sum of (Year 1 burden hours of
8,743,781 + Year 2 burden hours of 3,616,964 + Year 3 burden hours
of 3,616,964 + Year 4 burden hours of 3,616,964 + Year 5 burden
hours of 3,616,964) divided by 5.
---------------------------------------------------------------------------
This notice seeks comment on the estimated total annual reporting
and recordkeeping burden for the information collection associated with
BOI requests, specifically the requirement to submit written
certification for each request that it meets certain requirements
(Action G in Table 1 below). FinCEN previously provided notice and an
opportunity for public comment on all actions that constitute the
reporting and recordkeeping burden associated with the BOI Access Rule,
including the certification requirement, as well as the estimated total
annual burden, through the BOI Access rulemaking. As explained above,
FinCEN is issuing this notice with regard to the information collection
associated with BOI requests; therefore, this notice seeks comment only
on the certification requirement.
Table 1--Annual Hourly Burden Associated With Rule Requirements
----------------------------------------------------------------------------------------------------------------
Number of Total annual hourly
Action Type of entity entities Hours per entity burden
----------------------------------------------------------------------------------------------------------------
A. Develop and implement Financial 15,716 240 in Year 1; 0 in 3,771,840 in Year
administrative and physical institutions. Years 2+. 1; 0 in Years 2+.
safeguards.
B. Enter into an agreement with State, local, and 218 300 in Year 1; 0 in 65,400 in Year 1; 0
FinCEN and establish standards Tribal agencies Years 2+. in Years 2+.
and procedures. and SROs.
C. Develop and implement Financial 15,716 0 in Year 1; 0 in 0 in Year 1; 0 in
technical safeguards. institutions. Years 2+. Years 2+.
D. Establish a secure system to State, local, and 218 300 in Year 1; 4 in 65,400 in Year 1;
store BOI. Tribal agencies Years 2+. 872 in Years 2+.
and SROs.
E. Establish and maintain an State, local, and 218 200 in Year 1; 20 43,600 in Year 1;
auditable system of standardized Tribal agencies in Years 2+. 4,360 in Years 2+.
records for requests. and SROs.
F. Obtain and document customer Financial 15,716 70 in Year 1; 20 in 1,100,120 in Year
consent. institutions. Years 2+. 1; 314,320 in
Years 2+.
G. Submit certification for each Financial 15,716 94 in Year 1; 94 in 1,474,161 in Year
request that it meets certain institutions. Years 2+. 1; 1,474,161 in
requirements \1\. Years 2+.
G. Submit written certification State, local, and 158 12,975 in Year 1; 2,050,003 in Year
for each request that it meets Tribal law 10,443 in Years 2+. 1; 1,649,994 in
certain requirements, including enforcement. Years 2+.
court authorization.
G. Submit written certification State regulatory 60 125 in Year 1; 125 7,500 in Year 1;
for each request that it meets agencies and SROs. in Years 2+. 7,500 in Years 2+.
certain requirements.
[[Page 5998]]
H. Undergo training \2\.......... Financial 15,716 8 in Year 1; 8 in 128,871 in Year 1;
institutions. Years 2+. 128,871 in Years
2+.
H. Restrict access to appropriate State, local, and 218 9 in Year 1, 9 in 2,006 in Year 1;
persons within the entity, which Tribal agencies Years 2+. 2,006 in Years 2+.
specifies that appropriate and SROs.
persons will undergo training
\3\.
I. Conduct an annual audit and State, local, and 218 160 in Year 1; 160 34,880 in Year 1;
cooperate with FinCEN's annual Tribal agencies in Years 2+. 34,880 in Years
audit. and SROs. 2+.
J. Obtain certification of State, local, and 218 Included in I...... Included in I.
standards and procedures Tribal agencies
initially and then semi- and SROs.
annually, by the head of the
entity.
K. Provide initial and then an State, local, and 218 Included in I...... Included in I.
annual report on procedures. Tribal agencies
and SROs.
L. Comply with certain geographic Financial 15,716 0 in Year 1; 0 in 0 in Year 1; 0 in
restrictions. institutions. Years 2+. Years 2+.
M. Notify FinCEN of information Financial 15,716 0 in Year 1; 0 in 0 in Year 1; 0 in
demand from foreign government. institutions. Years 2+. Years 2+.
------------------------------------------------------------------------------
Total Annual Hourly Burden... ................... .............. ................... 8,743,781 in Year
1; 3,616,964 in
Years 2+.
----------------------------------------------------------------------------------------------------------------
\1\ For all types of entities, the hours per entity for Action G is the per entity share of the aggregate burden
estimated in the RIA.
\2\ For financial institutions, the hours per entity for Action H equals the weighted average of the large and
small financial institutions' maximum burden estimated in the RIA.
\3\ For State, local, and Tribal agencies and SROs, the hours per entity for Action H equals the per entity
share of the aggregate burden.
Estimated Total Annual Reporting and Recordkeeping Cost: As
described in Table 3 of the BOI Access Rule RIA, FinCEN calculated the
fully loaded hourly wage for each type of affected entity type.\7\
Using these estimated wages, the total cost of the annual burden in
year 1 is $868,200,270. In year 2 and onward, FinCEN estimates that the
total cost of the annual burden is $339,309,502, owing to Actions A and
B only imposing burdens in year 1, Actions D and E having lower annual
per entity burdens, and Action G having lower burden per request for
State, local, and Tribal law enforcement agencies. The annual estimated
cost for State, local, and Tribal agencies and SROs is $181,851,118 in
the first year and $136,070,190 in year 2 and onward. The annual
estimated cost for financial institutions is $686,349,152 in the first
year and $203,239,312 in year 2 and onward. The 5-year average annual
cost estimate is $445,087,656.\8\
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\7\ 88 FR 88791 (Dec. 22, 2023).
\8\ The 5-year average equals the sum of (Year 1 costs of
$868,200,270 + Year 2 costs of $339,309,502 + Year 3 costs of
$339,309,502 + Year 4 costs of $339,309,502 + Year 5 costs of
$339,309,502) divided by 5.
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This notice seeks comment on the estimated total annual reporting
and recordkeeping cost for the information collection associated with
BOI requests, specifically the requirement to ``submit written
certification for each request that it meets certain requirements''
(Action G in Table 2 below). FinCEN previously provided notice and an
opportunity for public comment on all actions that constitute the
reporting and recordkeeping cost associated with the BOI Access Rule,
including the certification requirement, as well as the estimated total
annual reporting and recordkeeping cost, through the BOI Access
rulemaking. As FinCEN is issuing this notice with regard to the
information collection associated with BOI requests, this notice seeks
comment only on the certification requirement.
Table 2--Annual Cost Associated With Rule Requirements
----------------------------------------------------------------------------------------------------------------
Total annual hourly
Action Type of entity Hourly wage burden Total annual cost
----------------------------------------------------------------------------------------------------------------
A. Develop and implement Financial $106 3,771,840 in Year $399,815,040 in
administrative and physical institutions. 1; 0 in Years 2+. Year 1; $0 in
safeguards. Years 2+.
B. Enter into an agreement with State, local, and 80 65,400 in Year 1; 0 $5,232,000 in Year
FinCEN and establish standards Tribal agencies. in Years 2+. 1; $0 in Years 2+.
and procedures.
C. Develop and implement Financial 106 0 in Year 1; 0 in $0 in Year 1; $0 in
technical safeguards. institutions. Years 2+. Years 2+.
D. Establish a secure system to State, local, and 80 65,400 in Year 1; $5,232,000 in Year
store BOI. Tribal agencies. 872 in Years 2+. 1; $69,760 in
Years 2+.
[[Page 5999]]
E. Establish and maintain an State, local, and 80 43,600 in Year 1; $3,488,000 in Year
auditable system of standardized Tribal agencies. 4,360 in Years 2+. 1; $348,800 in
records for requests. Years 2+.
F. Obtain and document customer Financial 106 1,100,120 in Year $116,612,720 in
consent. institutions. 1; 314,320 in Year 1;
Years 2+. $33,317,920 in
Years 2+.
G. Submit certification for each Financial 106 1,474,161 in Year $156,261,066 in
request that it meets certain institutions. 1; 1,474,161 in Year 1;
requirements. Years 2+. $156,261,066 in
Years 2+.
G. Submit written certification State, local, and 80 2,050,003 in Year $164,000,240 in
for each request that it meets Tribal law 1; 1,649,994 in Year 1;
certain requirements, including enforcement. Years 2+. $131,999,520 in
court authorization. Years 2+.
G. Submit written certification State regulatory 80 7,500 in Year 1; $600,000 in Year 1;
for each request that it meets agencies. 7,500 in Years 2+. $600,000 in Years
certain requirements. 2+.
H. Undergo training.............. Financial 106 128,871 in Year 1; $13,660,326 in Year
institutions. 128,871 in Years 1; $13,660,326 in
2+. Years 2+.
H. Restrict access to appropriate State, local, and 80 2,006 in Year 1; $160,480 in Year 1;
persons within the agency, which Tribal agencies. 2,006 in Years 2+. $160,480 in Years
specifies that appropriate 2+.
persons will undergo training.
I. Conduct an annual audit and State, local, and 80 34,880 in Year 1; $2,790,400 in Year
cooperate with FinCEN's annual Tribal agencies. 34,880 in Years 2+. 1; $2,790,400 in
audit. Years 2+.
J. Obtain certification of State, local, and 80 Included in I...... Included in I.
standards and procedures Tribal agencies.
initially and then semi-
annually, by the head of the
entity.
K. Provide initial and then an State, local, and 80 Included in I...... Included in I.
annual report on procedures. Tribal agencies.
L. Comply with certain geographic Financial 106 0 in Year 1; 0 in $0 in Year 1; $0 in
restrictions. institutions. Years 2+. Years 2+.
M. Notify FinCEN of information Financial 106 0 in Year 1; 0 in $0 in Year 1; $0 in
demand from foreign government. institutions. Years 2+. Years 2+.
Actions B, D, E, G, H, I-K....... SRO................ 106 3,283 in Year 1; $347,998 in Year 1;
955 in Years 2+. $101,230 in Years
2+.
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Total Annual Cost............ .............. $868,200,270 in
Year 1;
$339,309,502 in
Years 2+.
----------------------------------------------------------------------------------------------------------------
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 included in the request for OMB approval. All
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 technology;
and (e) estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services required to provide information.
(Authority: 44 U.S.C. 3501 et seq.)
Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
Appendix--Beneficial Ownership Information (BOI) Request: Summary of
Data Fields by Authorized Recipient
I. Financial Institutions
Proposed data fields and certification:
Company name (reporting company legal name)
Identifier type (reporting company tax identification number type;
select one from list of options)
EIN (Employer Identification Number)
SSN/ITIN (Social Security Number/Individual Taxpayer
Identification Number)
Foreign
Company identifier (reporting company tax identification number)
[Select ``I agree''] I certify on behalf of the financial
institution making this request that: The financial institution is
subject to customer due diligence requirements under applicable law
and is requesting beneficial ownership information from FinCEN to
facilitate the financial institution's compliance with those
requirements; the financial institution has obtained and documented
the consent of the above identified company to request its
beneficial ownership information from FinCEN; and the financial
institution has fulfilled all other requirements of 31 CFR
1010.955(d)(2).
II. State, Local, and Tribal Law Enforcement Agencies
Proposed data fields and certification:
Agency Reference (agency's internal reference name for BOI Request)
[[Page 6000]]
Name of court of competent jurisdiction
Date of court authorization
Court authorization description (description of the information the
court has authorized the agency to seek)
Checkbox Request on behalf of another person in the same agency
(select this checkbox if the BOI Request is made on behalf of
another person in the same agency; provide the following information
for this person, as applicable: first name; middle name; last name;
title; city; country/jurisdiction; state; ZIP/foreign postal code)
[Select ``I agree''] I certify that a court of competent
jurisdiction has authorized my agency to seek this information in a
criminal or civil investigation and that the requested information
is relevant to the criminal or civil investigation.
III. State Regulatory Agencies
Proposed data fields and certification:
Financial Institution(s)
Financial Institution Employer Identification Number
Reporting Company Legal Name
Reporting Company Tax Identification Number
Start Date
End Date
[Select ``I agree''] I certify that my agency is authorized by
law to assess, supervise, enforce, or otherwise determine the
compliance of a relevant financial institution with customer due
diligence requirements under applicable law and that my agency will
use the requested information solely for the purpose of conducting
such activities.
[FR Doc. 2024-01828 Filed 1-29-24; 8:45 am]
BILLING CODE 4810-02-P
