Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Bank Secrecy Act Regulations Requiring Reports of Certain Domestic Transactions, 13802-13804 [2024-03681]

Download as PDF ddrumheller on DSK120RN23PROD with NOTICES1 13802 Federal Register / Vol. 89, No. 37 / Friday, February 23, 2024 / Notices Development Entities (CDEs) and substantially all of the QEI proceeds must, in turn, be used by the CDE to provide investments in businesses and real estate developments in low-income communities and other purposes authorized under the statute. The tax credit provided to the investor totals 39 percent of the amount of the investment and is claimed over a seven-year period. In each of the first three years, the investor receives a credit equal to five percent of the total amount paid for the stock or capital interest at the time of purchase. For the final four years, the value of the credit is six percent annually. Investors may not redeem their investments in CDEs prior to the conclusion of the seven-year period without forfeiting any credit amounts they have received. The CDFI Fund is responsible for certifying organizations as CDEs and administering the competitive allocation of tax credit authority to CDEs, which it does through annual allocation rounds. As part of the award selection process, CDEs will be required to prepare and submit an Allocation Application, which consists of five sections: Business Strategy; Community Outcomes; Organization Capacity; Capitalization Strategy; and Previous Allocations and Awards. Current Actions: Extension with significant changes from currently approved collection. Type of Review: Regular. Affected Public: CDEs applying for NMTC Allocations. Estimated Number of Respondents: 201. Estimated Annual Time per Respondent: 307. Estimated Total Annual Burden Hours: 61,876 hours. Requests for Comments: Comments submitted in response to this notice will be summarized and/or included in the request for Office of Management and Budget approval. All comments will become a matter of public record and may be published at www.reginfo.gov. The CDFI Fund is seeking input on the NMTC Application. The Application may be obtained on the NMTC Program web page of the CDFI Fund’s website at https://www.cdfifund.gov/requests-forcomments. Revisions to the NMTC Allocation Application will be highlighted in yellow. Comments concerning the Application 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 VerDate Sep<11>2014 17:19 Feb 22, 2024 Jkt 262001 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; (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services required to provide information; and (f) whether any additional questions or factors should be considered as part of the NMTC Application and/or review process with regards to the Business Strategy section. (Authority: 26 U.S.C. 45D; 26 CFR 1.45D–1) Marcia Sigal, Acting Director, Community Development Financial Institutions Fund. [FR Doc. 2024–03707 Filed 2–22–24; 8:45 am] BILLING CODE 4810–70–P DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Bank Secrecy Act Regulations Requiring Reports of Certain Domestic Transactions Financial Crimes Enforcement Network (FinCEN), Treasury. AGENCY: Notice and request for comments. ACTION: As part of its continuing effort to reduce paperwork and respondent burden, FinCEN invites comments on the proposed renewal, without change, of an existing information collection relating to records of certain domestic transactions. Specifically, if the Secretary of the Treasury finds that reasonable grounds exist for concluding that additional recordkeeping and/or reporting requirements are necessary to carry out the purposes of the Bank Secrecy Act, or to prevent evasions thereof, the Secretary may issue an order that imposes certain additional recordkeeping and reporting requirements on one or more domestic financial institutions or nonfinancial trades or businesses in a geographic area. These orders are commonly referred to as geographic targeting orders (GTOs). This request for comments is made pursuant to the Paperwork Reduction Act of 1995 (PRA). SUMMARY: Written comments are welcome and must be received on or before April 23, 2024. DATES: PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 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– 0007 and Office of Management and Budget (OMB) control number 1506– 0056. • Mail: Policy Division, Financial Crimes Enforcement Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN–2024–0007 and OMB control number 1506–0056. Please submit comments by one method only. Comments will be reviewed consistent with the PRA and applicable OMB regulations and guidance. Comments will generally become a matter of public record. For this reason, please do not include in your comments information of a confidential nature, such as sensitive personal information or proprietary information. Given the nature of GTOs and their law enforcement purposes, any information that concerns confidential matters involving specific GTOs should be marked ‘‘confidential’’ and include the specific name of the GTO. FOR FURTHER INFORMATION CONTACT: FinCEN’s Regulatory Support Section at 1–800–767–2825, or electronically at frc@fincen.gov. SUPPLEMENTARY INFORMATION: ADDRESSES: 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).1 The BSA is codified at 12 U.S.C. 1829b, 1951–1960, and 31 U.S.C. 5311–5314 and 5316–5336, and includes notes thereto, with implementing regulations at 31 CFR chapter X. The BSA authorizes the Secretary of the Treasury (Secretary) to, inter alia, 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 1 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). E:\FR\FM\23FEN1.SGM 23FEN1 Federal Register / Vol. 89, No. 37 / Friday, February 23, 2024 / Notices ddrumheller on DSK120RN23PROD with NOTICES1 proceedings, or in the conduct of intelligence or counter-intelligence activities to protect against international terrorism, and to implement AML programs and compliance procedures.2 The authority of the Secretary to administer the BSA has been delegated to the Director of FinCEN.3 Congress amended the BSA in 1988 to give the Secretary the authority to issue GTOs requiring any domestic financial institution or group of domestic financial institutions in a geographic area to collect certain information regarding specified transactions, and to report that information in the manner and to the extent specified in the GTO.4 Congress subsequently amended the GTO authority to: (i) permit the issuance of confidential GTOs; (ii) lengthen the maximum effective period (unless renewed) of GTOs from 60 to 180 days; (iii) cover transactions involving transfers of funds; and (iv) clarify that GTOs can be issued upon reasonable grounds for concluding that additional requirements are necessary to carry out the purposes of the BSA or to prevent evasions of the BSA.5 Pursuant to 31 U.S.C. 5326(a), as amended, if the Secretary finds that reasonable grounds exist for concluding that additional recordkeeping and reporting are necessary to carry out the purpose of the BSA or to prevent evasions thereof, the Secretary may issue a GTO requiring any domestic financial institution or nonfinancial trade or business or group of domestic financial institutions or domestic nonfinancial trades or businesses in a geographic area to obtain information about certain transactions, as described in the GTO.6 Generally, 31 U.S.C. 5326(a) requires entities that receive such a GTO to report, in the manner and to the extent specified in the GTO, information concerning any transaction in which 2 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. 3 Treasury Order 180–01 (Jan. 14, 2020). 4 31 U.S.C. 5326 was amended by Public Law 100–690, title VI, sec. 6185(c). 5 See Public Law 102–550, title XV, sec. 1514; Public Law 107–56, sec. 353(d); Public Law 115– 44, sec. 275. 6 The authority set forth in 31 U.S.C. 5326 to impose reporting and recordkeeping requirements is self-implementing. Although 31 U.S.C. 5326 does not mention the need for a prescribing regulation, a rule corresponding to section 5326 is set forth at 31 CFR 1010.370. Among other things, the rule defines a geographic area. VerDate Sep<11>2014 17:19 Feb 22, 2024 Jkt 262001 such entity is involved for the payment, receipt, or transfer of funds (as described in the GTO). A GTO typically will include the following terms: (i) the dollar amount of transactions subject to the reporting requirement; (ii) the type of transactions subject to or exempt from the reporting requirement; (iii) the appropriate form for reporting and the method for form submission; (iv) the start and end dates by which the transactions specified in the GTO are to be reported; (v) a point of contact at for questions; (vi) the amount of time the reports and records of reports generated are required to be retained; and (vii) any other information deemed necessary to carry out the purpose of the GTO. Pursuant to 31 U.S.C. 5326(d), GTOs cannot prescribe a reporting period longer than 180 days, unless the GTO is renewed pursuant to 31 U.S.C. 5326(a). Pursuant to 31 U.S.C. 5326(a)(2), as implemented by 31 CFR 1010.410(d), each entity that receives a GTO must retain the original or a copy of the information required to be reported in the GTO, for the period specified in the GTO, not to exceed five years. II. Paperwork Reduction Act of 1995 7 Title: Reports and Records of Certain Domestic Transactions (31 U.S.C. 5326; 31 CFR 1010.370 and 1010.410(d)). OMB Control Number: 1506–0056. Form Number: FinCEN will specify the form and method for reporting in the GTO. Abstract: FinCEN is issuing this notice to renew the OMB control number for regulations permitting the issuance of orders, commonly referred to as GTOs, requiring reports and records of certain domestic transactions. Affected Public: Businesses or other for-profit institutions, and non-profit institutions. Type of Review: Renewal without change of a currently approved information collection. Frequency: As required. Estimated Number of Respondents: 709 domestic financial institutions and/ or domestic nonfinancial trades or businesses.8 Estimated Total Annual Responses: 21,513 responses.9 Estimated Reporting and Recordkeeping Burden Per Response: Generally, the information required to be recorded and reported pursuant to a 7 Public Law 104–13, 44 U.S.C. 3506(c)(2)(A). number of respondents, 709, is the average for 2021 (619), 2022 (755), and 2023 (754). Note that FinCEN may issue a GTO to any business in the United States. Generally, a GTO is issued to a specific sector or business type. 9 The number of responses, 21,513, is the average number of responses for 2021 (18,743), 2022 (25,389), and 2023 (20,411). 8 The PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 13803 GTO is basic information that a domestic financial institution or domestic nonfinancial trade or business would have access to in the normal course of doing business, such as payment, receipt, or transfer of funds information. The information required to be reported pursuant to a GTO, generally, includes the following: (i) the dollar amount of the transaction; (ii) the type of transaction; (iii) information identifying a party to the transaction, such as name, address, date of birth, and tax identification number; (iv) the role of a party in the transaction (i.e., originator or beneficiary); and (v) the name, address, and contact information for the domestic financial institution or domestic nonfinancial trade or business. As noted above, FinCEN will specify the form and method for reporting. Responses to GTOs generally are submitted to FinCEN electronically, such as through the BSA E-Filing System. FinCEN has on occasion directed filers to respond to GTOs by using existing BSA electronic forms (such as the forms used to file currency transaction reports, suspicious activity reports,10 and Form 8300s), and completing them in the manner specified in the relevant GTO. Because the information to be reported is readily available to a domestic financial institution or nonfinancial trade or business, in 2020 FinCEN estimated that reporting this information would take 20 minutes on average.11 Since then, FinCEN has received additional feedback from the American Land Title Association, whose members have submitted a number of GTO reports, noting that it takes the Association’s members approximately 45 minutes to complete a GTO report. For that reason, FinCEN is increasing the estimated time to report GTO information to 45 minutes. GTO information is filed electronically, which allows the filer to save an electronic version of the report and satisfy the recordkeeping requirement. Therefore, FinCEN estimates that the recordkeeping requirement will take five minutes on average. In total, FinCEN estimates the hourly burden of reporting and recordkeeping for each reportable transaction under a GTO to be 50 10 When a modified SAR is used for reporting, it is considered a GTO report and not a SAR that is filed to comply with the regulations implementing 31 U.S.C. 5318(g). 11 See, FinCEN, Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Bank Secrecy Act Regulations Requiring Reports of Certain Domestic Transactions, 85 FR 84104 (Dec. 23, 2020). E:\FR\FM\23FEN1.SGM 23FEN1 13804 Federal Register / Vol. 89, No. 37 / Friday, February 23, 2024 / Notices ddrumheller on DSK120RN23PROD with NOTICES1 minutes (45 minutes for reporting and five minutes for recordkeeping). Estimated Total Annual Reporting and Recordkeeping Burden: 17,928 hours. The average number of reportable transactions under GTOs is 21,513 responses. 21,513 responses multiplied by 50 minutes per response and converted to hours equals 17,928 hours.12 Estimated Total Annual Reporting and Recordkeeping Cost: $576,923.04. (17,928 hours multiplied by $32.18 per hour 13). 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. Comments are invited on: (i) whether the recordkeeping of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (ii) the accuracy of the agency’s estimate of the burden of the collection of information; (iii) ways to enhance the quality, utility, and clarity of the information to be collected; (iv) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (v) estimates of capital or start-up costs and costs of operation, 12 Although the burden is stated as an annual burden in accordance with the PRA, the estimated annual burden is not intended to indicate that there is a GTO in effect throughout a year or in each year. 13 The average hourly wage rate is calculated from the May 2022 U.S. Bureau of Labor Statistics (BLS) median hourly wage for ‘‘43–3099 Financial Clerk.’’ See BLS, Occupational Employment and Wages Statistics (May 2022), available at https:// www.bls.gov/oes/tables.htm. The ratio between benefits and wages for private industry workers is $12.19 (hourly benefits)/$29.34 (hourly wages) = 0.42, as of September 2023. The benefit factor is 1 plus the benefit/wages ratio, or 1.42. See BLS, Employee Costs for Employee Compensation (September 2023), available at https://www.bls.gov/ ecec/home.htm#:∼:text=Employer%20costs %20for%20private%20industry,percent%20of%20 total%20compensation%20costs. The May 2022 BLS median hourly wage for ‘‘43–3099 Financial Clerk’’ is $22.66. ($22.66 × 1.42 = $32.18). The Financial Clerk average hourly wage is being used here because there is a great deal of variation across industries and geographies in who is responsible for responding to a GTO. VerDate Sep<11>2014 17:19 Feb 22, 2024 Jkt 262001 maintenance, and purchase of services to provide information. Andrea M. Gacki, Director, Financial Crimes Enforcement Network. [FR Doc. 2024–03681 Filed 2–22–24; 8:45 am] BILLING CODE 4810–02–P DEPARTMENT OF THE TREASURY Office of Foreign Assets Control Notice of OFAC Sanctions Action 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 two individuals that have been placed on OFAC’s Specially Designated Nationals and Blocked Persons 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 individuals 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 T. 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 the Assistant Director for Compliance, tel.: 202–622–2490. SUPPLEMENTARY INFORMATION: SUMMARY: Electronic Availability The Specially Designated Nationals and Blocked Persons List and additional information concerning OFAC sanctions programs are available on OFAC’s website (https://ofac.treasury.gov/). Notice of OFAC Action On February 20, 2024, OFAC determined that the property and interests in property subject to U.S. jurisdiction of the following individuals are blocked under the relevant sanctions authorities listed below. Individuals 1. KONDRATIEV, Ivan Gennadievich (Cyrillic: RJYLHFNMTD, Bdfy Utyyflmtdbx) (a.k.a. KONDRATEV, Ivan; a.k.a. KONDRATYEV, Ivan; a.k.a. ‘‘@AL3XL7’’; a.k.a. ‘‘@BASSTE RLORD’’; a.k.a. ‘‘@BASSTERLORD 0170742922’’; a.k.a. ‘‘@SINNER6546’’; a.k.a. ‘‘@SINNER911’’; a.k.a. PO 00000 Frm 00126 Fmt 4703 Sfmt 4703 ‘‘BASSTERLORD’’; a.k.a. ‘‘EDITOR’’; a.k.a. ‘‘FISHEYE’’; a.k.a. ‘‘INVESTORLIFE1’’; a.k.a. ‘‘JACKROCK#3337’’; a.k.a. ‘‘SIN998A’’), Novomokovsk, Russia; DOB 08 Apr 1996; nationality Russia; Email Address sinner4iter@ gmail.com; Gender Male; Digital Currency Address—XBT bc1q5jqgm 7nvrhaw2rh2vk0dk8e4gg5g373g 0vz07r; alt. Digital Currency Address—XBT 32pTjxTNi7snk8sodrg fmdKao3DEn1nVJM; alt. Digital Currency Address—XBT 15cRqR3T XS1JehBGWERuxFE8NhWZzfoeeU; alt. Digital Currency Address—XBT 1A7SKE2dQtezLktCY8peLsdAtkq xV9r1dC; alt. Digital Currency Address—XBT bc1q8ew45w2agdffr nwp6adt2gqrc9n4mkev9ns29c; alt. Digital Currency Address—XBT bc1qa gp0gy58v8hqvw4p2wsphcxg067rrppp 45hexr; alt. Digital Currency Address—XBT bc1qn6segn8km 4nfdp9vueu6msfjsaxaqgun9h60n9; alt. Digital Currency Address—XBT bc1qx9upga7f09tsetqf78wa3qrmcjar58 mkwz6ng6; Digital Currency Address—ETH 0xf3701f445b6b dafedbca97d1e477357839e4120d; Secondary sanctions risk: Ukraine-/ Russia-Related Sanctions Regulations, 31 CFR 589.201; Passport 7019934211 (Russia) (individual) [CYBER2]. Designated pursuant to section l(a)(ii)(D) of Executive Order 13694 of April 1, 2015, ‘‘Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities,’’ 80 FR 18077, 3 CFR, 2015 Comp., p. 297, as amended by Executive Order 13757 of December 28, 2016, ‘‘Taking Additional Steps to Address the National Emergency With Respect to Significant Malicious Cyber-Enabled Activities,’’ 82 FR 1, 3 CFR, 2016 Comp., p. 659 (E.O. 13694, as amended) for being responsible for or complicit in, or having engaged in, directly or indirectly, an activity described in section 1(a)(ii) of E.O. 13694, as amended. 2. SUNGATOV, Artur Ravilevich, Kazan, Tatarstan Republic, Russia; DOB 16 Jan 1990; POB Kazan, Russia; nationality Russia; Email Address tkmegap@gmail.com; alt. Email Address imailo@ya.ru; alt. Email Address asungatov@gmail.com; alt. Email Address morozofkent@ gmail.com; Gender Male; Digital Currency Address—XBT 18gaXypK j9M23S2zT9qZfL9iPbLFM372Q5; Secondary sanctions risk: Ukraine-/ Russia-Related Sanctions Regulations, 31 CFR 589.201; Passport 751412830 (Russia); alt. Passport 9209857353 (Russia) (individual) [CYBER2]. E:\FR\FM\23FEN1.SGM 23FEN1

Agencies

[Federal Register Volume 89, Number 37 (Friday, February 23, 2024)]
[Notices]
[Pages 13802-13804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03681]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal; 
Comment Request; Renewal Without Change of Bank Secrecy Act Regulations 
Requiring Reports of Certain Domestic Transactions

AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

SUMMARY: As part of its continuing effort to reduce paperwork and 
respondent burden, FinCEN invites comments on the proposed renewal, 
without change, of an existing information collection relating to 
records of certain domestic transactions. Specifically, if the 
Secretary of the Treasury finds that reasonable grounds exist for 
concluding that additional recordkeeping and/or reporting requirements 
are necessary to carry out the purposes of the Bank Secrecy Act, or to 
prevent evasions thereof, the Secretary may issue an order that imposes 
certain additional recordkeeping and reporting requirements on one or 
more domestic financial institutions or nonfinancial trades or 
businesses in a geographic area. These orders are commonly referred to 
as geographic targeting orders (GTOs). 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 23, 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-2024-0007 and Office of Management and Budget (OMB) control 
number 1506-0056.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0007 and OMB control number 1506-0056.
    Please submit comments by one method only. Comments will be 
reviewed consistent with the PRA and applicable OMB regulations and 
guidance. Comments will generally become a matter of public record. For 
this reason, please do not include in your comments information of a 
confidential nature, such as sensitive personal information or 
proprietary information. Given the nature of GTOs and their law 
enforcement purposes, any information that concerns confidential 
matters involving specific GTOs should be marked ``confidential'' and 
include the specific name of the GTO.

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).\1\ The BSA is codified at 12 U.S.C. 1829b, 1951-
1960, and 31 U.S.C. 5311-5314 and 5316-5336, and includes notes 
thereto, with implementing regulations at 31 CFR chapter X.
---------------------------------------------------------------------------

    \1\ 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 (Secretary) to, 
inter alia, 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

[[Page 13803]]

proceedings, or in the conduct of intelligence or counter-intelligence 
activities to protect against international terrorism, and to implement 
AML programs and compliance procedures.\2\ The authority of the 
Secretary to administer the BSA has been delegated to the Director of 
FinCEN.\3\
---------------------------------------------------------------------------

    \2\ Section 358 of the USA PATRIOT Act expanded the 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.
    \3\ Treasury Order 180-01 (Jan. 14, 2020).
---------------------------------------------------------------------------

    Congress amended the BSA in 1988 to give the Secretary the 
authority to issue GTOs requiring any domestic financial institution or 
group of domestic financial institutions in a geographic area to 
collect certain information regarding specified transactions, and to 
report that information in the manner and to the extent specified in 
the GTO.\4\ Congress subsequently amended the GTO authority to: (i) 
permit the issuance of confidential GTOs; (ii) lengthen the maximum 
effective period (unless renewed) of GTOs from 60 to 180 days; (iii) 
cover transactions involving transfers of funds; and (iv) clarify that 
GTOs can be issued upon reasonable grounds for concluding that 
additional requirements are necessary to carry out the purposes of the 
BSA or to prevent evasions of the BSA.\5\
---------------------------------------------------------------------------

    \4\ 31 U.S.C. 5326 was amended by Public Law 100-690, title VI, 
sec. 6185(c).
    \5\ See Public Law 102-550, title XV, sec. 1514; Public Law 107-
56, sec. 353(d); Public Law 115-44, sec. 275.
---------------------------------------------------------------------------

    Pursuant to 31 U.S.C. 5326(a), as amended, if the Secretary finds 
that reasonable grounds exist for concluding that additional 
recordkeeping and reporting are necessary to carry out the purpose of 
the BSA or to prevent evasions thereof, the Secretary may issue a GTO 
requiring any domestic financial institution or nonfinancial trade or 
business or group of domestic financial institutions or domestic 
nonfinancial trades or businesses in a geographic area to obtain 
information about certain transactions, as described in the GTO.\6\
---------------------------------------------------------------------------

    \6\ The authority set forth in 31 U.S.C. 5326 to impose 
reporting and recordkeeping requirements is self-implementing. 
Although 31 U.S.C. 5326 does not mention the need for a prescribing 
regulation, a rule corresponding to section 5326 is set forth at 31 
CFR 1010.370. Among other things, the rule defines a geographic 
area.
---------------------------------------------------------------------------

    Generally, 31 U.S.C. 5326(a) requires entities that receive such a 
GTO to report, in the manner and to the extent specified in the GTO, 
information concerning any transaction in which such entity is involved 
for the payment, receipt, or transfer of funds (as described in the 
GTO). A GTO typically will include the following terms: (i) the dollar 
amount of transactions subject to the reporting requirement; (ii) the 
type of transactions subject to or exempt from the reporting 
requirement; (iii) the appropriate form for reporting and the method 
for form submission; (iv) the start and end dates by which the 
transactions specified in the GTO are to be reported; (v) a point of 
contact at for questions; (vi) the amount of time the reports and 
records of reports generated are required to be retained; and (vii) any 
other information deemed necessary to carry out the purpose of the GTO. 
Pursuant to 31 U.S.C. 5326(d), GTOs cannot prescribe a reporting period 
longer than 180 days, unless the GTO is renewed pursuant to 31 U.S.C. 
5326(a).
    Pursuant to 31 U.S.C. 5326(a)(2), as implemented by 31 CFR 
1010.410(d), each entity that receives a GTO must retain the original 
or a copy of the information required to be reported in the GTO, for 
the period specified in the GTO, not to exceed five years.

II. Paperwork Reduction Act of 1995 7
---------------------------------------------------------------------------

    \7\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
---------------------------------------------------------------------------

    Title: Reports and Records of Certain Domestic Transactions (31 
U.S.C. 5326; 31 CFR 1010.370 and 1010.410(d)).
    OMB Control Number: 1506-0056.
    Form Number: FinCEN will specify the form and method for reporting 
in the GTO.
    Abstract: FinCEN is issuing this notice to renew the OMB control 
number for regulations permitting the issuance of orders, commonly 
referred to as GTOs, requiring reports and records of certain domestic 
transactions.
    Affected Public: Businesses or other for-profit institutions, and 
non-profit institutions.
    Type of Review: Renewal without change of a currently approved 
information collection.
    Frequency: As required.
    Estimated Number of Respondents: 709 domestic financial 
institutions and/or domestic nonfinancial trades or businesses.\8\
---------------------------------------------------------------------------

    \8\ The number of respondents, 709, is the average for 2021 
(619), 2022 (755), and 2023 (754). Note that FinCEN may issue a GTO 
to any business in the United States. Generally, a GTO is issued to 
a specific sector or business type.
---------------------------------------------------------------------------

    Estimated Total Annual Responses: 21,513 responses.\9\
---------------------------------------------------------------------------

    \9\ The number of responses, 21,513, is the average number of 
responses for 2021 (18,743), 2022 (25,389), and 2023 (20,411).
---------------------------------------------------------------------------

    Estimated Reporting and Recordkeeping Burden Per Response:
    Generally, the information required to be recorded and reported 
pursuant to a GTO is basic information that a domestic financial 
institution or domestic nonfinancial trade or business would have 
access to in the normal course of doing business, such as payment, 
receipt, or transfer of funds information. The information required to 
be reported pursuant to a GTO, generally, includes the following: (i) 
the dollar amount of the transaction; (ii) the type of transaction; 
(iii) information identifying a party to the transaction, such as name, 
address, date of birth, and tax identification number; (iv) the role of 
a party in the transaction (i.e., originator or beneficiary); and (v) 
the name, address, and contact information for the domestic financial 
institution or domestic nonfinancial trade or business.
    As noted above, FinCEN will specify the form and method for 
reporting. Responses to GTOs generally are submitted to FinCEN 
electronically, such as through the BSA E-Filing System. FinCEN has on 
occasion directed filers to respond to GTOs by using existing BSA 
electronic forms (such as the forms used to file currency transaction 
reports, suspicious activity reports,\10\ and Form 8300s), and 
completing them in the manner specified in the relevant GTO.
---------------------------------------------------------------------------

    \10\ When a modified SAR is used for reporting, it is considered 
a GTO report and not a SAR that is filed to comply with the 
regulations implementing 31 U.S.C. 5318(g).
---------------------------------------------------------------------------

    Because the information to be reported is readily available to a 
domestic financial institution or nonfinancial trade or business, in 
2020 FinCEN estimated that reporting this information would take 20 
minutes on average.\11\ Since then, FinCEN has received additional 
feedback from the American Land Title Association, whose members have 
submitted a number of GTO reports, noting that it takes the 
Association's members approximately 45 minutes to complete a GTO 
report. For that reason, FinCEN is increasing the estimated time to 
report GTO information to 45 minutes.
---------------------------------------------------------------------------

    \11\ See, FinCEN, Agency Information Collection Activities; 
Proposed Renewal; Comment Request; Renewal Without Change of Bank 
Secrecy Act Regulations Requiring Reports of Certain Domestic 
Transactions, 85 FR 84104 (Dec. 23, 2020).
---------------------------------------------------------------------------

    GTO information is filed electronically, which allows the filer to 
save an electronic version of the report and satisfy the recordkeeping 
requirement. Therefore, FinCEN estimates that the recordkeeping 
requirement will take five minutes on average. In total, FinCEN 
estimates the hourly burden of reporting and recordkeeping for each 
reportable transaction under a GTO to be 50

[[Page 13804]]

minutes (45 minutes for reporting and five minutes for recordkeeping).
    Estimated Total Annual Reporting and Recordkeeping Burden: 17,928 
hours. The average number of reportable transactions under GTOs is 
21,513 responses. 21,513 responses multiplied by 50 minutes per 
response and converted to hours equals 17,928 hours.\12\
---------------------------------------------------------------------------

    \12\ Although the burden is stated as an annual burden in 
accordance with the PRA, the estimated annual burden is not intended 
to indicate that there is a GTO in effect throughout a year or in 
each year.
---------------------------------------------------------------------------

    Estimated Total Annual Reporting and Recordkeeping Cost: 
$576,923.04. (17,928 hours multiplied by $32.18 per hour \13\).
---------------------------------------------------------------------------

    \13\ The average hourly wage rate is calculated from the May 
2022 U.S. Bureau of Labor Statistics (BLS) median hourly wage for 
``43-3099 Financial Clerk.'' See BLS, Occupational Employment and 
Wages Statistics (May 2022), available at https://www.bls.gov/oes/tables.htm. The ratio between benefits and wages for private 
industry workers is $12.19 (hourly benefits)/$29.34 (hourly wages) = 
0.42, as of September 2023. The benefit factor is 1 plus the 
benefit/wages ratio, or 1.42. See BLS, Employee Costs for Employee 
Compensation (September 2023), available at https://www.bls.gov/
ecec/home.htm#:~:text=Employer%20costs%20for%20private%20industry,per
cent%20of%20total%20compensation%20costs. The May 2022 BLS median 
hourly wage for ``43-3099 Financial Clerk'' is $22.66. ($22.66 x 
1.42 = $32.18). The Financial Clerk average hourly wage is being 
used here because there is a great deal of variation across 
industries and geographies in who is responsible for responding to a 
GTO.
---------------------------------------------------------------------------

    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. 
Comments are invited on: (i) whether the recordkeeping of information 
is necessary for the proper performance of the functions of the agency, 
including whether the information shall have practical utility; (ii) 
the accuracy of the agency's estimate of the burden of the collection 
of information; (iii) ways to enhance the quality, utility, and clarity 
of the information to be collected; (iv) ways to minimize the burden of 
the collection of information on respondents, including through the use 
of automated collection techniques or other forms of information 
technology; and (v) estimates of capital or start-up costs and costs of 
operation, maintenance, and purchase of services to provide 
information.

Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2024-03681 Filed 2-22-24; 8:45 am]
BILLING CODE 4810-02-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.