Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reports by Financial Institutions of Suspicious Transactions and FinCEN Form 111-Suspicious Activity Report, 9913-9915 [2024-02747]
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Federal Register / Vol. 89, No. 29 / Monday, February 12, 2024 / Notices
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update as appropriate the analysis
required under this section for each
securitization exposure.
Disclosure Requirements
Section 3.142, which outlines the
capital treatment for securitization
exposures, requires a national bank or
Federal savings association to disclose
publicly that it has provided implicit
support to a securitization and the
regulatory capital impact to the
institution of providing such implicit
support. Specifically, § 3.124(a) requires
a national bank or Federal savings
association that merges with or acquires
a company that does not calculate its
risk-based capital requirements using
advanced systems and uses subpart D to
determine the risk-weighted asset
amounts for the merged or acquired
company’s exposures, the national bank
or Federal savings association must
disclose publicly the amounts of riskweighted assets and qualifying capital
calculated under this subpart for the
bank or savings association and under
subpart D for the acquired company.
Section 3.172 specifies that each
national bank or Federal savings
association that is an advanced
approaches national bank or Federal
savings association, that has completed
the parallel run process, must publicly
disclose its total and tier 1 risk-based
capital ratios and their components.
Section 3.173 addresses disclosures
by an advanced approaches national
bank or Federal savings association that
is not a consolidated subsidiary of a
bank holding company, savings and
loan holding company, or a depository
institution subject to the disclosure
requirements of § 3.172. An advanced
approaches institution that is subject to
the disclosure requirements must make
the disclosures described in § 3.173,
Tables 1 through 12. The national bank
or Federal savings association must
make these disclosures publicly
available for each of the last three years
(that is, twelve quarters) or such shorter
period beginning on the effective date of
this subpart E. The tables in § 3.173
require qualitative and quantitative
public disclosures for capital structure,
capital adequacy, capital conservation
and countercyclical buffers, general
disclosures related to credit risk, credit
risk disclosures for portfolios subject to
IRB risk-based capital formulas, general
disclosures related to counterparty
credit risk of OTC derivative contracts,
repo-style transactions, and eligible
margin loans, credit risk mitigation,
securitization, operational risk, equities
not subject to the market risk capital
requirements, and interest rate risk for
non-trading activities.
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Estimated Burden:
Estimated Number of Respondents:
1,014 national banks and Federal
savings associations.1
Estimated Total Annual Burden
Hours: 87,087.
Estimated Frequency of Response: On
occasion.
Comments: On November 21, 2023,
the OCC published a 60-day notice for
this information collection, (88 FR
81176). No comments were received.
Comments continue to be invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
OCC, including whether the information
has practical utility;
(b) The accuracy of the OCC’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 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 and costs of operation,
maintenance, and purchase of services
to provide information.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the
Comptroller of the Currency.
[FR Doc. 2024–02736 Filed 2–9–24; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request; Renewal Without
Change of Reports by Financial
Institutions of Suspicious
Transactions and FinCEN Form 111—
Suspicious Activity Report
Financial Crimes Enforcement
Network (FinCEN), Treasury.
ACTION: Notice and request for
comments.
AGENCY:
As part of its continuing effort
to reduce paperwork and respondent
burden, FinCEN invites comment on a
renewal, without change, of existing
information collection requirements
relating to reports of suspicious
transactions. Under Bank Secrecy Act
regulations, financial institutions are
required to report suspicious
SUMMARY:
1 Respondents represent all active national banks
and Federal savings associations as of September
30, 2023.
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9913
transactions using FinCEN Form 111
(the suspicious activity report, or SAR).
This request for comments is made
pursuant to the Paperwork Reduction
Act of 1995 (PRA).
DATES: Written comments are welcome
and must be received on or before April
12, 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–
0004 and the specific Office of
Management and Budget (OMB) control
numbers 1506–0001, 1506–0006, 1506–
0015, 1506–0019, 1506–0029, 1506–
0061, and 1506–0065.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
Number FINCEN–2024–0004 and OMB
control numbers 1506–0001, 1506–0006,
1506–0015, 1506–0019, 1506–0029,
1506–0061, and 1506–0065.
Please submit comments by one
method only. Comments will be
reviewed consistent with the PRA 1 and
applicable OMB regulations and
guidance. All comments submitted in
response to this notice will become a
matter of public record. Therefore, you
should submit only information that
you wish to make publicly available.
FOR FURTHER INFORMATION CONTACT:
FinCEN’s Regulatory Support Section at
1–800–767–2825 or electronically at
frc@fincen.gov.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Provisions
The legislative framework generally
referred to as the Bank Secrecy Act
(BSA) consists of the Currency and
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).2
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
1 Public
Law 104–13, 44 U.S.C. 3506(c)(2)(A).
AML Act was enacted as Division F,
sections 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 The
E:\FR\FM\12FEN1.SGM
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Federal Register / Vol. 89, No. 29 / Monday, February 12, 2024 / Notices
alia, to require financial institutions to
keep records and file reports that are
determined to have a high degree of
usefulness in criminal, tax, or regulatory
matters, risk assessments or
proceedings, or in the conduct of
intelligence or counter-intelligence
activities to protect against international
terrorism, and to implement AML
programs and compliance procedures.3
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.4
Under 31 U.S.C. 5318(g), the Secretary
is authorized to require financial
institutions to report any suspicious
transaction relevant to a possible
violation of law or regulation.
Regulations implementing 31 U.S.C.
5318(g) are found at 31 CFR 1020.320,
1021.320, 1022.320, 1023.320, 1024.320,
1025.320, 1026.320, 1029.320, and
1030.320.
khammond on DSKJM1Z7X2PROD with NOTICES
II. Paperwork Reduction Act of 1995
Title: Reports by Financial
Institutions of Suspicious Transactions
(31 CFR 1020.320, 1021.320, 1022.320,
1023.320, 1024.320, 1025.320, 1026.320,
and 1029.320).
OMB Control Numbers: 1506–0001,
1506–0006, 1506–0015, 1506–0019,
1506–0029, 1506–0061, and 1506–
0065.5
Form Number: FinCEN Form 111—
Suspicious Transaction Report (SAR).
3 Section 358 of the USA PATRIOT Act expanded
the purpose 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
purpose of the BSA to cover such matters as
preventing money laundering, tracking illicit funds,
assessing risk, and establishing appropriate
frameworks for information sharing.
4 Treasury Order 180–01 (Jan. 14, 2020).
5 The SAR regulatory reporting requirements are
currently covered under the following OMB control
numbers: 1506–0001 (31 CFR 1020.320—Reports by
banks of suspicious transactions); 1506–0006 (31
CFR 1021.320—Reports by casinos of suspicious
transactions); 1506–0015 (31 CFR 1022.320—
Reports by money services businesses of suspicious
transactions); 1506–0019 (31 CFR 1023.320—
Reports by brokers or dealers in securities of
suspicious transactions, 31 CFR 1024.320—Reports
by mutual funds of suspicious transactions, and 31
CFR 1026.320—Reports by futures commission
merchants and introducing brokers in commodities
of suspicious transactions); 1506–0029 (31 CFR
1025.320—Reports by insurance companies of
suspicious transactions); and 1506–0061 (31 CFR
1029.320—Reports by loan or finance companies of
suspicious transactions). The PRA does not apply
to reports by one government entity to another
government entity. For that reason, there is no OMB
control number associated with 31 CFR 1030.320—
Reports of suspicious transactions by housing
government sponsored enterprises. OMB control
number 1506–0065 applies to FinCEN Report 111—
SAR. An administrative burden of one hour is
assigned to each of the SAR regulation OMB control
numbers to maintain the requirements in force.
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21:06 Feb 09, 2024
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Abstract: FinCEN is issuing this
notice to renew the OMB control
numbers for the SAR regulations and
form.
Affected Public: Businesses or other
for-profit institutions, and non-profit
institutions.
Type of Review: Renewal without
change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents:
11,458 financial institutions.6
Estimated Total Annual Responses:
4,367,197 SARs.7
Estimated Reporting and
Recordkeeping Burden per Response:
The average estimated PRA burden,
measured in hours per SAR, is
approximately 1.98 hours.8 On May 26,
2020, FinCEN issued a 60-day notice to
renew the SAR OMB controls numbers
(‘‘2020 Notice’’). In the 2020 Notice,
FinCEN proposed to expand the scope
of factors to consider as part of the PRA
burden of complying with SAR
requirements. In addition, as described
in the 2020 Notice, to better estimate the
burden associated with complying with
SAR requirements, FinCEN conducted
an in-depth analysis of the population
of 2019 SAR filing statistics. FinCEN
analyzed the 2019 SAR filings grouped
by a number of different factors,
including the following: (i) the
distribution of SAR submissions by type
of filing (original or continuing SAR);
(ii) the filer’s financial institution type;
(iii) how many SARs the filer filed in a
year; (iv) the method of filing (batch
filing versus discrete filing); (v) the SAR
narrative length; and (vi) the number of
suspicious activities per report. The
analysis and calculations detailed in the
2020 Notice ultimately resulted in an
estimate of approximately 1.98 hours in
filer burden per SAR.
FinCEN received 22 public comments
in response to the 2020 Notice.
6 This estimate is based on the observed number
of unique filers associated with at least one SAR
filing received in calendar year 2022, as reported by
the BSA E-Filing System as of 12/31/2022.
7 This estimate is based on the observed number
of SAR filings received in calendar year 2022, as
reported by the BSA E-Filing System as of 12/31/
2022.
8 See FinCEN, Agency Information Collection
Activities; Proposed Renewal; Comment Request;
Renewal Without Change of the Bank Secrecy Act
Reports by Financial Institutions of Suspicious
Transactions at 31 CFR 1020.320, 1021.320,
10022,320, 1023.320, 1024.320, 1025.320, 1026.320,
and 1029.320, and FinCEN Report 111—Suspicious
Activity Report, 85 FR 31598 (May 26, 2020). See
85 FR 31600 in the 2020 Notice for the total number
of SARs filed in calendar year 2019 (2,751,694
SARs). See 85 FR 31611 in the 2020 Notice for the
total estimated recordkeeping and reporting annual
PRA burden of complying with the SAR
requirements (5,462,026 hours). We are using the
estimated hourly burden per SAR calculated for
purposes of the 2020 Notice.
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Commenters were generally supportive
of FinCEN’s efforts to more accurately
estimate the PRA burden associated
with the SAR filing requirements. Some
commenters had specific
recommendations regarding factors for
FinCEN to consider in future in-depth
analysis of the SAR filing population.
However, none of those commenters
provided specific sources of data to
contradict the burden estimate of 1.98
hours of burden per SAR filed. In the
absence of public comments to suggest
otherwise, FinCEN considers it
reasonable to continue to use the
estimate of 1.98 hours per SAR filed for
the population of 2022 SAR filing
statistics as outlined in this notice. In
connection with a variety of initiatives
FinCEN is undertaking to implement the
AML Act, FinCEN intends to conduct,
in the future, additional assessments of
the PRA burden associated with BSA
requirements, including SAR
requirements.
Estimated Total Annual Reporting
and Recordkeeping Burden: 8,647,050
hours.9
Estimated Total Annual Reporting
and Recordkeeping Cost: $326,772,020.
This estimate applies the weighted
average hourly labor cost of $37.79 per
hour 10 to the estimated total annual
reporting and recordkeeping burden
hours above (8,647,050 hours).
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB control number.
Records required to be retained under
the BSA must be retained for five years.
Request for Comments
Comments submitted in response to
this notice will be summarized and/or
included in the request for OMB
approval. All comments will become a
matter of public record. Comments are
invited on: (i) whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(ii) the accuracy of the agency’s estimate
of the burden of the collection of
9 This estimate is derived from the calculation
4,367,197 SARs multiplied by 1.98 hours per SAR.
10 We are using the weighted average hourly labor
cost calculated for purposes of the 2020 Notice,
which is based on data for calendar year 2019. See
85 FR 31611 for the total estimated recordkeeping
and reporting annual PRA burden of complying
with the SAR requirements in the 2020 Notice
(5,462,026 hours). See 85 FR 31611 for the total
estimated recordkeeping and reporting cost of
complying with the SAR requirements in the 2020
Notice ($206,422,989). The average estimated
hourly cost per SAR burden hour in the 2020 Notice
is $37.79 per hour ($206,422,989 divided by
5,462,026 total burden hours).
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12FEN1
Federal Register / Vol. 89, No. 29 / Monday, February 12, 2024 / Notices
information; (iii) ways to enhance the
quality, utility, and clarity of the
information to be collected; (iv) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and (v) estimates of capital
or start-up costs and costs of operation,
maintenance, and purchase of services
to provide information.
III. Review and Approval of
Subcommittee Agenda and Setting of
Ground Rules—UCR Finance
Subcommittee Chair
Andrea M. Gacki,
Director, Financial Crimes Enforcement
Network.
Ground Rules
UNIFIED CARRIER REGISTRATION
PLAN
For Discussion and Possible
Subcommittee Action
Sunshine Act Meetings
February 15, 2024, 10:00
a.m. to 11:00 a.m., Eastern Time.
PLACE: This meeting will be accessible
via conference call and via Zoom
Meeting and Screenshare. Any
interested person may call (i) 1–929–
205–6099 (US Toll) or 1–669–900–6833
(US Toll), Meeting ID: 918 9852 6957, to
listen and participate in this meeting.
The website to participate via Zoom
Meeting and Screenshare is https://
kellen.zoom.us/meeting/register/
tJUlfuGtrD0jH9PAZzhAv7i2mFNRQGr
ONRAm.
STATUS: This meeting will be open to the
public.
MATTERS TO BE CONSIDERED: The Unified
Carrier Registration Plan Finance
Subcommittee (the ‘‘Subcommittee’’)
will continue its work in developing
and implementing the Unified Carrier
Registration Plan and Agreement. The
subject matter of this meeting will
include:
TIME AND DATE:
Proposed Agenda
khammond on DSKJM1Z7X2PROD with NOTICES
I. Call to Order—UCR Finance
Subcommittee Chair
The UCR Finance Subcommittee
Chair will welcome attendees, call the
meeting to order, call roll for the
Subcommittee, confirm whether a
quorum is present, and facilitate selfintroductions.
II. Verification of Publication of
Meeting Notice—UCR Executive
Director
The UCR Executive Director will
verify the publication of the meeting
notice on the UCR website and
distribution to the UCR contact list via
email followed by the subsequent
publication of the notice in the Federal
Register.
21:06 Feb 09, 2024
Jkt 262001
Alex B. Leath,
Chief Legal Officer, Unified Carrier
Registration Plan.
BILLING CODE 4910–YL–P
The agenda will be reviewed, and the
Subcommittee will consider adoption of
the agenda.
IV. Review and Approval of
Subcommittee Minutes From the
November 7, 2023, Meeting—UCR
Finance Subcommittee Chair
BILLING CODE 4810–02–P
Directors, (617) 305–3783, eleaman@
board.ucr.gov.
[FR Doc. 2024–02958 Filed 2–8–24; 4:15 pm]
➢ Subcommittee action only to be
taken in designated areas on agenda.
[FR Doc. 2024–02747 Filed 2–9–24; 8:45 am]
VerDate Sep<11>2014
For Discussion and Possible
Subcommittee Action
9915
Draft minutes from the November 7,
2023, Subcommittee meeting will be
reviewed. The Subcommittee will
consider action to approve.
V. Discussion and Recommendation for
the Selection of an External Auditor for
the Audit of the Unified Carrier
Registration Plan Depository for the
Year Ended December 31, 2022—UCR
Depository Manager
The UCR Depository Manager will
discuss his efforts to find an external
auditor to conduct an audit of the
Unified Carrier Registration Plan
Depository for the year ended December
31, 2022, including identifying a
recommended auditor for the
Subcommittee’s consideration. The
Subcommittee may take action to
recommend to the UCR Board the hiring
of an external auditor to conduct an
audit of the United Carrier Registration
Plan Depository for the year ended
December 31, 2022.
VI. Other Business—UCR Finance
Subcommittee Chair
The UCR Finance Subcommittee
Chair will call for any other items
Subcommittee members would like to
discuss.
VII. Adjourn—UCR Finance
Subcommittee Chair
The UCR Finance Subcommittee
Chair will adjourn the meeting.
The agenda will be available no later
than 5:00 p.m. Eastern time, February 7,
2024 at: https://plan.ucr.gov.
CONTACT PERSON FOR MORE INFORMATION:
Elizabeth Leaman, Chair, Unified
Carrier Registration Plan Board of
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Fmt 4703
Sfmt 4703
UNIFIED CARRIER REGISTRATION
PLAN
Sunshine Act Meetings
February 15, 2024, 12:00
p.m. to 3:00 p.m., Eastern time.
PLACE: This meeting will be accessible
via conference call and via Zoom
Meeting and Screenshare. Any
interested person may call (i) 1–929–
205–6099 (US Toll) or 1–669–900–6833
(US Toll), Meeting ID: 972 3166 8162, to
listen and participate in this meeting.
The website to participate via Zoom
Meeting and Screenshare is https://
kellen.zoom.us/meeting/register/
tJMvdOiuqDMrHNaT3tstxIHDqNE9dpN4MnI.
STATUS: This meeting will be open to the
public.
MATTERS TO BE CONSIDERED: The Unified
Carrier Registration Plan Education and
Training Subcommittee (the
‘‘Subcommittee’’) will continue its work
in developing and implementing the
Unified Carrier Registration Plan and
Agreement. The subject matter of this
meeting will include:
TIME AND DATE:
Proposed Agenda
I. Call to Order—UCR Education and
Training Subcommittee Chair
The Subcommittee Chair will
welcome attendees, call the meeting to
order, call roll for the Subcommittee,
confirm whether a quorum is present,
and facilitate self-introductions.
II. Verification of Publication of
Meeting Notice—UCR Executive
Director
The UCR Executive Director will
verify the publication of the meeting
notice on the UCR website and
distribution to the UCR contact list via
email followed by the subsequent
publication of the notice in the Federal
Register.
III. Review and Approval of
Subcommittee Agenda and Setting of
Ground Rules—UCR Education and
Training Subcommittee Chair
For Discussion and Possible
Subcommittee Action
The Subcommittee Agenda will be
reviewed, and the Subcommittee will
consider adoption.
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]]>Agencies
[Federal Register Volume 89, Number 29 (Monday, February 12, 2024)]
[Notices]
[Pages 9913-9915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-02747]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Reports by Financial
Institutions of Suspicious Transactions and FinCEN Form 111--Suspicious
Activity Report
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: As part of its continuing effort to reduce paperwork and
respondent burden, FinCEN invites comment on a renewal, without change,
of existing information collection requirements relating to reports of
suspicious transactions. Under Bank Secrecy Act regulations, financial
institutions are required to report suspicious transactions using
FinCEN Form 111 (the suspicious activity report, or SAR). This request
for comments is made pursuant to the Paperwork Reduction Act of 1995
(PRA).
DATES: Written comments are welcome and must be received on or before
April 12, 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-2024-0004 and the specific Office of Management and Budget (OMB)
control numbers 1506-0001, 1506-0006, 1506-0015, 1506-0019, 1506-0029,
1506-0061, and 1506-0065.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0004 and OMB control numbers 1506-0001, 1506-0006, 1506-0015,
1506-0019, 1506-0029, 1506-0061, and 1506-0065.
Please submit comments by one method only. Comments will be
reviewed consistent with the PRA \1\ and applicable OMB regulations and
guidance. All comments submitted in response to this notice will become
a matter of public record. Therefore, you should submit only
information that you wish to make publicly available.
---------------------------------------------------------------------------
\1\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
FOR FURTHER INFORMATION CONTACT: FinCEN's Regulatory Support Section at
---------------------------------------------------------------------------
1-800-767-2825 or electronically at [email protected].
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Provisions
The legislative framework generally referred to as the Bank Secrecy
Act (BSA) consists of the Currency and 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).\2\ 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.
---------------------------------------------------------------------------
\2\ The AML Act was enacted as Division F, sections 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
[[Page 9914]]
alia, to require financial institutions to keep records and file
reports that are determined to have a high degree of usefulness in
criminal, tax, or regulatory matters, risk assessments or proceedings,
or in the conduct of intelligence or counter-intelligence activities to
protect against international terrorism, and to implement AML programs
and compliance procedures.\3\ 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.\4\
---------------------------------------------------------------------------
\3\ Section 358 of the USA PATRIOT Act expanded the purpose 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 purpose of the BSA to cover
such matters as preventing money laundering, tracking illicit funds,
assessing risk, and establishing appropriate frameworks for
information sharing.
\4\ Treasury Order 180-01 (Jan. 14, 2020).
---------------------------------------------------------------------------
Under 31 U.S.C. 5318(g), the Secretary is authorized to require
financial institutions to report any suspicious transaction relevant to
a possible violation of law or regulation. Regulations implementing 31
U.S.C. 5318(g) are found at 31 CFR 1020.320, 1021.320, 1022.320,
1023.320, 1024.320, 1025.320, 1026.320, 1029.320, and 1030.320.
II. Paperwork Reduction Act of 1995
Title: Reports by Financial Institutions of Suspicious Transactions
(31 CFR 1020.320, 1021.320, 1022.320, 1023.320, 1024.320, 1025.320,
1026.320, and 1029.320).
OMB Control Numbers: 1506-0001, 1506-0006, 1506-0015, 1506-0019,
1506-0029, 1506-0061, and 1506-0065.\5\
---------------------------------------------------------------------------
\5\ The SAR regulatory reporting requirements are currently
covered under the following OMB control numbers: 1506-0001 (31 CFR
1020.320--Reports by banks of suspicious transactions); 1506-0006
(31 CFR 1021.320--Reports by casinos of suspicious transactions);
1506-0015 (31 CFR 1022.320--Reports by money services businesses of
suspicious transactions); 1506-0019 (31 CFR 1023.320--Reports by
brokers or dealers in securities of suspicious transactions, 31 CFR
1024.320--Reports by mutual funds of suspicious transactions, and 31
CFR 1026.320--Reports by futures commission merchants and
introducing brokers in commodities of suspicious transactions);
1506-0029 (31 CFR 1025.320--Reports by insurance companies of
suspicious transactions); and 1506-0061 (31 CFR 1029.320--Reports by
loan or finance companies of suspicious transactions). The PRA does
not apply to reports by one government entity to another government
entity. For that reason, there is no OMB control number associated
with 31 CFR 1030.320--Reports of suspicious transactions by housing
government sponsored enterprises. OMB control number 1506-0065
applies to FinCEN Report 111--SAR. An administrative burden of one
hour is assigned to each of the SAR regulation OMB control numbers
to maintain the requirements in force.
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Form Number: FinCEN Form 111--Suspicious Transaction Report (SAR).
Abstract: FinCEN is issuing this notice to renew the OMB control
numbers for the SAR regulations and form.
Affected Public: Businesses or other for-profit institutions, and
non-profit institutions.
Type of Review: Renewal without change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents: 11,458 financial institutions.\6\
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\6\ This estimate is based on the observed number of unique
filers associated with at least one SAR filing received in calendar
year 2022, as reported by the BSA E-Filing System as of 12/31/2022.
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Estimated Total Annual Responses: 4,367,197 SARs.\7\
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\7\ This estimate is based on the observed number of SAR filings
received in calendar year 2022, as reported by the BSA E-Filing
System as of 12/31/2022.
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Estimated Reporting and Recordkeeping Burden per Response: The
average estimated PRA burden, measured in hours per SAR, is
approximately 1.98 hours.\8\ On May 26, 2020, FinCEN issued a 60-day
notice to renew the SAR OMB controls numbers (``2020 Notice''). In the
2020 Notice, FinCEN proposed to expand the scope of factors to consider
as part of the PRA burden of complying with SAR requirements. In
addition, as described in the 2020 Notice, to better estimate the
burden associated with complying with SAR requirements, FinCEN
conducted an in-depth analysis of the population of 2019 SAR filing
statistics. FinCEN analyzed the 2019 SAR filings grouped by a number of
different factors, including the following: (i) the distribution of SAR
submissions by type of filing (original or continuing SAR); (ii) the
filer's financial institution type; (iii) how many SARs the filer filed
in a year; (iv) the method of filing (batch filing versus discrete
filing); (v) the SAR narrative length; and (vi) the number of
suspicious activities per report. The analysis and calculations
detailed in the 2020 Notice ultimately resulted in an estimate of
approximately 1.98 hours in filer burden per SAR.
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\8\ See FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of the
Bank Secrecy Act Reports by Financial Institutions of Suspicious
Transactions at 31 CFR 1020.320, 1021.320, 10022,320, 1023.320,
1024.320, 1025.320, 1026.320, and 1029.320, and FinCEN Report 111--
Suspicious Activity Report, 85 FR 31598 (May 26, 2020). See 85 FR
31600 in the 2020 Notice for the total number of SARs filed in
calendar year 2019 (2,751,694 SARs). See 85 FR 31611 in the 2020
Notice for the total estimated recordkeeping and reporting annual
PRA burden of complying with the SAR requirements (5,462,026 hours).
We are using the estimated hourly burden per SAR calculated for
purposes of the 2020 Notice.
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FinCEN received 22 public comments in response to the 2020 Notice.
Commenters were generally supportive of FinCEN's efforts to more
accurately estimate the PRA burden associated with the SAR filing
requirements. Some commenters had specific recommendations regarding
factors for FinCEN to consider in future in-depth analysis of the SAR
filing population. However, none of those commenters provided specific
sources of data to contradict the burden estimate of 1.98 hours of
burden per SAR filed. In the absence of public comments to suggest
otherwise, FinCEN considers it reasonable to continue to use the
estimate of 1.98 hours per SAR filed for the population of 2022 SAR
filing statistics as outlined in this notice. In connection with a
variety of initiatives FinCEN is undertaking to implement the AML Act,
FinCEN intends to conduct, in the future, additional assessments of the
PRA burden associated with BSA requirements, including SAR
requirements.
Estimated Total Annual Reporting and Recordkeeping Burden:
8,647,050 hours.\9\
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\9\ This estimate is derived from the calculation 4,367,197 SARs
multiplied by 1.98 hours per SAR.
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Estimated Total Annual Reporting and Recordkeeping Cost:
$326,772,020. This estimate applies the weighted average hourly labor
cost of $37.79 per hour \10\ to the estimated total annual reporting
and recordkeeping burden hours above (8,647,050 hours).
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\10\ We are using the weighted average hourly labor cost
calculated for purposes of the 2020 Notice, which is based on data
for calendar year 2019. See 85 FR 31611 for the total estimated
recordkeeping and reporting annual PRA burden of complying with the
SAR requirements in the 2020 Notice (5,462,026 hours). See 85 FR
31611 for the total estimated recordkeeping and reporting cost of
complying with the SAR requirements in the 2020 Notice
($206,422,989). The average estimated hourly cost per SAR burden
hour in the 2020 Notice is $37.79 per hour ($206,422,989 divided by
5,462,026 total burden hours).
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An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid OMB control number. Records required to be
retained under the BSA must be retained for five years.
Request for Comments
Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval. All comments will
become a matter of public record. Comments are invited on: (i) whether
the collection of information is necessary for the proper performance
of the functions of the agency, including whether the information shall
have practical utility; (ii) the accuracy of the agency's estimate of
the burden of the collection of
[[Page 9915]]
information; (iii) ways to enhance the quality, utility, and clarity of
the information to be collected; (iv) ways to minimize the burden of
the collection of information on respondents, including through the use
of automated collection techniques or other forms of information
technology; and (v) estimates of capital or start-up costs and costs of
operation, maintenance, and purchase of services to provide
information.
Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2024-02747 Filed 2-9-24; 8:45 am]
BILLING CODE 4810-02-P
