Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Anti-Money Laundering Programs for Certain Financial Institutions, 29427-29432 [2024-08529]
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Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Notices
DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety
Administration
[Docket No. FMCSA–2024–0020]
Qualification of Drivers; Exemption
Applications; Epilepsy and Seizure
Disorders
Federal Motor Carrier Safety
Administration (FMCSA), Department
of Transportation (DOT).
ACTION: Notice of denials.
AGENCY:
FMCSA announces its
decision to deny applications from 14
individuals who requested an
exemption from the Federal Motor
Carrier Safety Regulations (FMCSRs)
prohibiting persons with a clinical
diagnosis of epilepsy or any other
condition that is likely to cause a loss
of consciousness or any loss of ability to
operate a commercial motor vehicle
(CMV) from operating CMVs in
interstate commerce.
FOR FURTHER INFORMATION CONTACT: Ms.
Christine A. Hydock, Chief, Medical
Programs Division, FMCSA, Department
of Transportation, 1200 New Jersey
Avenue SE, Washington, DC 20590–
0001, (202) 366–4001, fmcsamedical@
dot.gov. Office hours are from 8:30 a.m.
to 5 p.m. ET Monday through Friday,
except Federal holidays. If you have
questions regarding viewing material in
the docket, contact Dockets Operations,
(202) 366–9826.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Public Participation
A. Comments
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To view comments go to
www.regulations.gov. Insert the docket
number (FMCSA–2024–0020) in the
keyword box, and click ‘‘Search.’’ Next,
choose the only notice listed, and click
‘‘Browse Comments.’’ If you do not have
access to the internet, you may view the
docket online by visiting Dockets
Operations on the ground floor of the
DOT West Building, 1200 New Jersey
Avenue SE, Washington, DC 20590–
0001, between 9 a.m. and 5 p.m. ET
Monday through Friday, except Federal
holidays. To be sure someone is there to
help you, please call (202) 366–9317 or
(202) 366–9826 before visiting Dockets
Operations.
B. Privacy Act
In accordance with 49 U.S.C.
31315(b)(6), DOT solicits comments
from the public on the exemption
request. DOT posts these comments,
without edit, including any personal
information the commenter provides, to
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www.regulations.gov. As described in
the system of records notice DOT/ALL
14 (Federal Docket Management
System), which can be reviewed at
https://www.transportation.gov/
individuals/privacy/privacy-act-systemrecords-notices, the comments are
searchable by the name of the submitter.
II. Background
FMCSA received applications from 14
individuals who requested an
exemption from the FMCSRs
prohibiting persons with a clinical
diagnosis of epilepsy or any other
condition that is likely to cause a loss
of consciousness or any loss of ability to
operate a CMV from operating CMVs in
interstate commerce.
FMCSA has evaluated the eligibility
of these applicants and concluded that
granting these exemptions would not
provide a level of safety that would be
equivalent to, or greater than, the level
of safety that would be obtained by
complying with § 391.41(b)(8).
III. Basis for Exemption Determination
Under 49 U.S.C. 31136(e) and
31315(b), FMCSA may grant an
exemption from the FMCSRs for no
longer than a 5-year period if it finds
such exemption would likely achieve a
level of safety that is equivalent to, or
greater than, the level that would be
achieved absent such exemption. The
statute also allows the Agency to renew
exemptions at the end of the 5-year
period. FMCSA grants medical
exemptions from the FMCSRs for a 2year period to align with the maximum
duration of a driver’s medical
certification. The Agency’s decision
regarding these exemption applications
is based on the eligibility criteria, the
terms and conditions for Federal
exemptions, and an individualized
assessment of each applicant’s medical
information provided by the applicant.
IV. Conclusion
The Agency has determined that these
applicants do not satisfy the eligibility
criteria or meet the terms and
conditions of the Federal exemption and
granting these exemptions would not
provide a level of safety that would be
equivalent to, or greater than, the level
of safety that would be obtained by
complying with § 391.41(b)(8).
Therefore, the 14 applicants in this
notice have been denied exemptions
from the physical qualification
standards in § 391.41(b)(8).
Each applicant has, prior to this
notice, received a letter of final
disposition regarding his/her exemption
request. Those decision letters fully
outlined the basis for the denial and
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29427
constitute final action by the Agency.
This notice summarizes the Agency’s
recent denials as required under 49
U.S.C. 31315(b)(4) by periodically
publishing names and reasons for
denial.
The following 14 applicants do not
meet the minimum time requirement for
being seizure-free, either on or off antiseizure medication:
Randall Bernath (MI)
Kyle Cattelona (NJ)
Dennis Gilles (IN)
Donald Gloy (AZ)
Jerome Hayes (OK)
Corey Mehrwerth (MN)
Brandon Murray (IN)
Geethma Perera (NY)
Connor Quinlan (TX)
Scott Summers (IL)
Hunter Thompson (PA)
Sarah Warner (CA)
Alex Weddle (OR)
Ammon Zimmerman (PA)
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2024–08520 Filed 4–19–24; 8:45 am]
BILLING CODE 4910–EX–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request; Renewal Without
Change of Anti-Money Laundering
Programs for Certain Financial
Institutions
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 comments on
the renewal, without change, of existing
information collection requirements
related to Bank Secrecy Act regulations
that require banks lacking a Federal
functional regulator, money services
businesses, mutual funds, insurance
companies, dealers in precious metals,
precious stones, or jewels, operators of
credit card systems, and loan or finance
companies to develop and implement
written anti-money laundering (AML)
programs. This notice does not address
requirements that may be imposed
under the Anti-Money Laundering Act
of 2020 (AML Act). Paperwork and
respondent burden for those
requirements will be addressed in a
separate notice of proposed rulemaking
(NPRM). This request for comments is
SUMMARY:
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Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Notices
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made pursuant to the Paperwork
Reduction Act of 1995 (PRA).
DATES: Written comments are welcome
and must be received on or before June
21, 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–
0010 and the specific Office of
Management and Budget (OMB) control
numbers 1506–0020, 1506–0030, and
1506–0035.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
Number FINCEN–2024–0010 and OMB
control numbers 1506–0020, 1506–0030,
and 1506–0035.
Please submit comments by one
method only. Comments will be
reviewed consistent with the PRA 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) 1 and other
legislation, including the AML Act.2
The BSA is codified at 12 U.S.C. 1829b
and 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 (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
proceedings, or in the conduct of
intelligence or counter-intelligence
1 USA
PATRIOT Act, Pub. L. 107–56.
AML Act was enacted as Division F,
sections 6001–6511, of the William M. (Mac)
Thornberry National Defense Authorization Act for
Fiscal Year 2021, Pub. L. 116–283, 134 Stat. 3388
(NDAA).
2 The
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activities to protect against terrorism,
and to implement anti-money
laundering/countering the financing of
terrorism (AML/CFT) programs and
compliance procedures.3 The authority
of the Secretary to administer the BSA
has been delegated to the Director of
FinCEN.4
31 U.S.C. 5318(h)(1) of the BSA
mandates that financial institutions
establish AML/CFT programs to guard
against money laundering and the
financing of terrorism.5 Such programs
must include, at a minimum: (a) the
development of internal policies,
procedures, and controls, (b) the
designation of a compliance officer, (c)
an ongoing employee training program,
and (d) an independent audit function
to test programs.6 Pursuant to 31 U.S.C.
5318(h)(2), FinCEN issued regulations
requiring banks lacking a Federal
functional regulator (31 CFR
1020.210(b)), money services businesses
(MSBs) (31 CFR 1022.210), mutual
funds (31 CFR 1024.210), insurance
companies (31 CFR 1025.210), dealers
in precious metals, precious stones, or
jewels (31 CFR 1027.210), operators of
credit card systems (31 CFR 1028.210),
and loan or finance companies (31 CFR
1029.210) to develop and implement
written AML programs.
This notice renews the OMB control
numbers associated with these specific
AML program regulations. This notice is
not renewing the OMB control numbers
associated with other types of financial
institutions’ AML program regulatory
requirements at this time for the reasons
described below. This notice also does
not address any changes to requirements
governing AML programs that FinCEN
may make pursuant to section 6101(b) of
the AML Act; FinCEN will address the
paperwork and respondent burden of
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.’’
See 12 U.S.C. 1829b(a). 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. See 31 U.S.C. 5311.
4 Treasury Order 180–01 (Jan. 14, 2020).
5 The provision was added to the BSA through
Section 352 of the USA PATRIOT Act. Section
6101(b) of the AML Act amended the provision to
include explicit references to terrorism finance.
6 The provision, which was added to the BSA
through Section 352 of the USA PATRIOT Act,
authorized FinCEN to prescribe minimum
standards for AML programs and to exempt certain
financial institutions from application of those
standards. Section 6101(b) of the AML Act
amended the provision to specify the factors that
FinCEN must consider in prescribing minimum
standards.
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such changes in a separate NPRM, when
it proposes implementing rules.
On April 29, 2002, FinCEN issued an
interim final rule to provide guidance to
certain financial institutions concerning
implementation of statutory
requirements related to AML programs.
The interim final rule provided that
banks, savings associations, credit
unions, brokers or dealers in securities,
futures commission merchants, and
casinos would be deemed to be in
compliance if they established and
maintained AML programs as required
by existing FinCEN regulations, or their
respective Federal regulator or selfregulatory organization (SRO).7
Of the types of financial institutions
subject to the interim final rule, only
casinos were already subject to AML
program regulations issued by FinCEN.8
Federally insured depository
institutions and credit unions were (and
have continued to be) required by their
respective federal functional regulators
(as defined in section 509 of the GrammLeach-Bliley Act (12 U.S.C. 6809) to
have AML programs. Brokers and
dealers in securities and futures
commission merchants were not then
subject to an AML program requirement,
and FinCEN stated in the interim final
rule that it was appropriate to
implement section 5318(h) of the BSA
with respect to those types of financial
institutions through their respective
SROs. FinCEN therefore does not
maintain OMB control numbers for the
AML program regulatory requirements
of banks, savings associations, credit
unions, brokers or dealers in securities,
or futures commission merchants.9
7 See FinCEN, Anti-Money Laundering Programs
for Financial Institutions Interim Final Rule, 67 FR
21110 (Apr. 29, 2022).
8 See the Department of the Treasury,
Amendments to the Bank Secrecy Act; Regulations
Regarding Reporting and Recordkeeping
Requirements by Casinos Final Rule, 58 FR 13538
(Mar. 12, 1993) and FinCEN, Amendments to the
Bank Secrecy Act Regulations Regarding Reporting
and Recordkeeping Requirements by Casinos Final
Rule, 59 FR 61660 (Dec. 1, 1994).
9 The casino AML program regulations are
covered under FinCEN OMB control number 1506–
0051, which is not scheduled to expire before
October 2024. The renewal of that control number,
therefore, will be addressed in a separate FinCEN
notice released later this year. Since 1987, all
federally insured depository institutions and credit
unions have been required by their Federal
regulators to have AML programs. The applicable
Federal regulator maintains the OMB control
number for the AML program regulatory
requirements of depository institutions and credit
unions as follows: (a) Office of Comptroller of the
Currency (AML program regulations at 12 CFR
21.21—covered by OMB control number 1557–
0180); (b) Federal Reserve Board (AML program
regulations at 12 CFR 208.63—covered by OMB
control number 7100–0310); (c) Federal Deposit
Insurance Corporation (AML program regulations at
12 CFR 326.8—covered by OMB control number
3064–0087); and (d) National Credit Union
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Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Notices
In implementing section 6101(b) of
the AML Act, FinCEN intends to
propose amendments to FinCEN’s AML
program regulations, including
regulations for banks lacking a Federal
functional regulator, MSBs, mutual
funds, insurance companies, dealers in
precious metals, precious stones, or
jewels, operators of credit card systems,
and loan or finance companies. FinCEN
will assess the PRA burden of these
amendments when it issues an NPRM;
it does not do so here.
II. Paperwork Reduction Act of 1995 10
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Title: AML program requirements for
banks lacking a Federal functional
regulator (31 CFR 1020.210(b)), MSBs
(31 CFR 1022.210), mutual funds (31
CFR 1024.210), insurance companies
(31 CFR 1025.210), dealers in precious
metals, precious stones, or jewels (31
CFR 1027.210), operators of credit card
systems (31 CFR 1028.210), and loan or
finance companies (31 CFR 1029.210).
OMB Control Numbers: 1506–0020,
1506–0030, and 1506–0035.11
Administration (AML program regulations at 12
CFR 748.2—covered by OMB control number 3133–
0108). In the 2002 interim final rule, FinCEN also
noted it was appropriate to implement section
5318(h)(1) of the BSA with respect to brokers or
dealers in securities and futures commission
merchants through their respective SROs, because
the Securities and Exchange Commission (SEC) and
the Commodity Futures Trade Commission (CFTC)
and their SROs significantly accelerated the
implementation of AML programs for their
regulated financial institutions. Accordingly, 31
CFR 1023.210 and 31 CFR 1026.210 provided that
brokers or dealers in securities, and futures
commission merchants and introducing brokers in
commodities, respectively, would be deemed to be
in compliance with the requirements of section
5318(h)(1) of the BSA if they implement and
maintain AML programs that, among other things,
comply with rules, regulations, or requirements of
their SROs governing such programs. The SEC’s
SRO for brokers and dealers is the Financial
Industry Regulatory Authority (FINRA). The AML
program requirements for brokers or dealers in
securities is FINRA Rule 331. The CFTC’s SRO for
futures commission merchants is the National
Futures Association (NFA). The AML program
requirements for futures commission merchant and
introducing brokers in commodities is NFA Rule 2–
9(c). The SROs are not required to comply with the
PRA. Therefore, there are no OMB control numbers
for the AML program regulatory requirements of
brokers or dealers in securities, futures commission
merchants, and introducing brokers in
commodities.
10 Paperwork Reduction Act of 1995, Pub. L. 104–
13, 44 U.S.C. 3506(c)(2)(A).
11 The AML program regulatory requirements are
currently covered under the following OMB control
numbers: 1506–0020 (31 CFR 1022.210—AML
programs for MSBs, 31 CFR 1024.210—AML
programs for mutual funds, and 31 CFR 1028.210—
AML programs for operators of credit card systems);
1506–0030 (31 CFR 1027.210—AML programs for
dealers in precious metals, precious stones, or
jewels); and 1506–0035 (31 CFR 1020.210(b)—AML
program requirements for banks lacking a Federal
functional regulator, 31 CFR 1025.210—AML
programs for insurance companies, and 31 CFR
1029.210—AML programs for loan and finance
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Form Number: Not applicable.
Abstract: FinCEN is issuing this
notice to renew the OMB control
numbers for the AML program
regulatory requirements for certain
financial institutions.
Affected Public: Businesses or other
for-profit institutions, and non-profit
institutions.
Type of Review: Renewal without
change of currently approved
information collections.
Frequency: As required.
Estimated Number of Respondents:
283,043 financial institutions.12
Estimated Recordkeeping Burden: In
Part 1 of this notice, FinCEN describes
the breakdown of the estimated number
of financial institution, by type. In Part
2, FinCEN proposes for review and
comment a renewal of the calculation of
the annual PRA burden that includes a
scope and methodology similar to that
used in the 2020 notice to renew the
OMB control numbers for the AML
programs of certain financial
institutions.13
Part 1. Breakdown of Financial
Institutions Covered by This Notice
The breakdown of financial
institutions, by type, covered by this
notice, is reflected in Table 1 below:
TABLE 1—NUMBER OF COVERED
FINANCIAL INSTITUTIONS BY TYPE
Type of financial institution
Banks lacking a Federal
functional regulator ...........
Principal MSBs b ...................
Providers or sellers of prepaid access .......................
Other types of principal
MSBs .................................
Agent MSBs ..........................
Mutual funds .........................
Insurance companies ...........
Dealers in precious metals,
stones, and jewels ............
Operators of credit card systems ..................................
Loan or finance companies ..
Number of
financial
institutions
a 600
c 27,500
2,605
24,895
d 229,161
e 1,400
f 4,678
g 6,700
h4
i 13,000
companies). There is no OMB control number
associated with 31 CFR 1030.210—AML programs
for housing government sponsored enterprises
(HGSEs), because the PRA does not apply to the
collection of information by one federal agency
(FinCEN) from another federal entity (the HGSEs).
12 Table 1 below breaks down the types of
financial institutions covered by this notice.
13 See FinCEN, Agency Information Collection
Activities; Proposed Renewal; Comment Request;
Renewal Without Change of Anti-Money Laundering
Programs for Certain Financial Institutions, 85 FR
49418 (Aug. 13, 2020).
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29429
TABLE 1—NUMBER OF COVERED FINANCIAL INSTITUTIONS BY TYPE—
Continued
Type of financial institution
Total ...............................
Number of
financial
institutions
283,043
a This estimate of active entities as of yearend 2023 incorporates data from both public
and non-public sources, including: Call Reports; various state banking/financial institution
regulators’ websites and directories; the Federal Reserve Board of Governors’ Master Account and Services database (https://
www.federalreserve.gov/paymentsystems/
master-account-and-services-database-existing-access.htm); and data from the OCIF
(Oficina del Comisionado de Instituciones
Financieras); and was derived in consultation
with staff from the Internal Revenue Service’s
Small Business/Self-Employed Division.
b The definition of MSB covers both principal
MSBs and agents. Under 31 CFR
1022.210(d)(1)(iii), a person that is an MSB
solely because it is an agent for another MSB
and the MSB for which it serves as an agent
(the principal MSB) may by agreement allocate between themselves responsibility for developing policies, procedures, and internal
controls. However, neither the agent nor the
principal MSB can avoid liability for failing to
establish or maintain an effective AML program by pointing to a contract assigning the
responsibility to the other party.
c This value represents the number of
uniquely identifiable principal MSBs with indicia of ongoing operations as of year-end 2023.
The estimate is derived from FinCEN’s publicly available MSB data available at https://
www.fincen.gov/msb-registrant-search,
accessed February 28, 2024.
d In the absence of public comments in prior
renewals of the OMB control number applicable to this regulatory requirement, FinCEN
considers it reasonable to continue to rely
upon its previous estimate that the number of
agent MSBs remains approximately 229,161.
This value was previously published in the
2020 notice to renew OMB control numbers
1506–0020, 1506–0030, and 1506–0035 (85
CFR 49420 (Aug. 13, 2020)).
e This estimate of the number of active mutual funds as of year-end 2023 is based on
Form N–CEN filings received by the U.S. Securities and Exchange Commission through
January 20, 2023, as represented by data
downloaded from SEC Open Data (https://
www.sec.gov/dera/data/form-ncen-data-sets),
accessed February 29, 2024.
f This estimate is based on data on entities
with NAICS code 423940 (Jewelry, Watch,
Precious Stone, and Precious Metal Merchant
Wholesalers) published at year end 2023 in
the 2021 Survey of U.S. Businesses (https://
www.census.gov/data/datasets/2021/econ/
susb/2021-susb.html), accessed March 1,
2024.
g This estimate includes 667 L&H insurers,
2,656 P&C insurers, and 1,355 health insurers
licensed in the United States during 2022.
From US Treasury ‘‘Annual Report on the Insurance Industry,’’ published September 2023
(https://home.treasury.gov/system/files/311/
FIO%20Annual%20Report%202023%20
9292023.pdf), accessed February 28, 2024.
h This value is based on FinCEN review of
active, U.S. based market participants at year
end 2023.
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i This estimate is based on data on entities
with NAICS codes 522292 (Real Estate Credit) and 522310 (Mortgage and Non-Mortgage
Loan Brokers) published at year end 2023 in
the 2021 Survey of U.S. Businesses (https://
www.census.gov/data/datasets/2021/econ/
susb/2021-susb.html), accessed March 1,
2024.
As noted above, 31 U.S.C. 5318(h)
mandates that financial institutions
establish AML/CFT programs to guard
against money laundering and the
financing of terrorism. Such programs
must include, at a minimum: (a) the
development of internal policies,
procedures, and controls, (b) the
designation of a compliance officer, (c)
an ongoing employee training program,
and (d) an independent audit function
to test programs.
The AML program regulations for
banks lacking a Federal functional
regulator, MSBs, mutual funds,
insurance companies, dealers in
precious metals, precious stones, or
jewels, operators of credit card systems,
and loan or finance companies require
these financial institutions to
implement AML programs that are
reasonably designed. The AML program
must be in writing and must be
commensurate with the financial
institution’s risk profile.
The AML program regulations for
banks lacking a Federal functional
regulator and mutual funds, for which
the corresponding OMB control
numbers are being renewed as part of
this notice, include customer due
diligence (CDD) requirements. 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 CDD
requirements for banks lacking a Federal
functional regulator and mutual funds.
Part 2. Annual PRA Burden and Cost
The scope of the annual PRA burden
and cost estimates of the AML program
in this renewal is limited to:
maintaining and updating the AML
program documentation (Action A);
storing the written AML program
(Action B); producing a copy of the
written AML program if requested by
regulatory examiners or law
enforcement (Action C); for banks
lacking a Federal functional regulator
and mutual funds, securing approval of
the AML program by the board of
directors or trustees (Action D); 14 and
for providers or sellers of prepaid
access, obtaining, verifying, and
maintaining cardholder identifying
information (Action E).15
For purposes of the estimate of the
AML program annual PRA burden,
FinCEN generally assumes:
(a) Agent MSBs agree to abide by, and
in practice do abide by, the policies,
procedures, and internal controls
established by their principal MSBs.
(b) Principal MSBs establish
minimum training and independent
review standards for their agents.16
(c) Required written AML programs
are stored as electronic files. The
estimated annual burden (five minutes
per financial institution) represents the
administrative burden involved in
processing the storage of the written
program.
(d) Producing the written AML
program to regulatory or law
enforcement agencies, upon their
request, is performed electronically.
FinCEN estimates the annual burden of
producing the written program at five
minutes per financial institution. The
estimated annual burden represents the
administrative burden involved in
producing the program upon request
once per year.
(e) The estimated number of prepaid
access arrangements established
annually remains at approximately 2.6
million. The collection and storage of
cardholder identification information is
automated.17
The estimated burden associated with
each portion of the annual PRA estimate
is as follows:
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TABLE 2—BURDEN ASSOCIATED WITH EACH ACTION OF THE ANNUAL PRA ESTIMATE
Action
Instances per year
Time per
instance
Type of
financial
institution
A. Maintaining and updating
the written AML program.
B. Storing the written AML
program.
C. Producing the AML program upon request.
D. Board of directors/trustees approval of the AML
program.
E. Obtaining, verifying, and
storing cardholder identifying information.
1 per financial institution ......
1 hour ...........
All except agent MSBs ........
53,882
53,882
1 per financial institution ......
5 minutes ......
All .........................................
283,043
23,587
1 per financial institution ......
5 minutes ......
All .........................................
283,043
23,587
1 per financial institution ......
1 hour ...........
2,000
2,000
2.6 million (once per card) ..
2 minutes ......
Banks lacking a Federal
functional regulator and
mutual funds.
Providers or sellers of prepaid access.
2,605
86,667
14 The AML program regulations for banks lacking
a Federal functional regulator and mutual funds are
the only AML program regulations being renewed
in this notice with a regulatory requirement to
secure board of directors’ or trustees’ approval of
the AML program. FinCEN recognizes, however,
that the other financial institutions covered by this
notice may also get their board of directors or
trustees to approve their AML programs as a best
practice.
15 The MSB AML program regulations have a
unique requirement. Specifically, 31 CFR
1022.210(d)(1)(iv) provides that an MSB that is a
provider or seller of prepaid access must establish
procedures to verify the identity of a person who
obtains prepaid access under a prepaid program
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and obtain identifying information concerning such
a person, including name, date of birth, address,
and identification number. Sellers of prepaid access
must also establish procedures to verify the identity
of a person who obtains prepaid access to funds
that exceed $10,000 during any one day and obtain
identifying information concerning such a person,
including name, date of birth, address, and
identification number.
16 According to FIN–2016–G001, ‘‘Guidance on
Existing AML Program Rule Compliance
Obligations for MSB Principals with Respect to
Agent Monitoring,’’ (Mar. 11, 2016), MSB principals
are required to develop and implement risk-based
policies, procedures, and internal controls that
ensure adequate ongoing monitoring of agent
PO 00000
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Number of
financial
institutions a
Total hourly
burden
activity, as part of the principal’s implementation
of its AML program. Imposing a minimum level of
general training and a minimum frequency of
independent review allows principal MSBs to
standardize in part these agent monitoring
responsibilities. This document is available at
https://www.fincen.gov/resources/statutesregulations/guidance/guidance-existing-amlprogram-rule-compliance-obligations.
17 In the absence of public comments in all prior
renewals of the OMB control number applicable to
this regulatory requirement, FinCEN considers it
reasonable to continue to rely upon its previous
estimate that the number of prepaid arrangements
established annually is 2.6 million.
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TABLE 2—BURDEN ASSOCIATED WITH EACH ACTION OF THE ANNUAL PRA ESTIMATE—Continued
Instances per year
Time per
instance
Type of
financial
institution
Number of
financial
institutions a
..............................................
.......................
..............................................
............................
Action
Total Hourly Burden ......
a As
Total hourly
burden
189,723
set out in Table 1 above.
FinCEN’s estimate for the total hourly
annual PRA burden is 189,723 hours.
FinCEN identified four roles and
corresponding staff positions involved
in maintaining an AML program to
estimate the hourly costs associated
with the burden hour estimates
calculated in this part. Those are: (i)
general approval (board of directors/
trustees approval of the AML program);
(ii) general supervision (providing
process management); (iii) direct
supervision (reviewing operational-level
work and cross-checking all or a sample
of the work product against their
supporting documentation); and (iv)
clerical work (engaging in research and
administrative review and filing and
producing the AML program on
request).
FinCEN calculated the fully loaded
hourly wage for each of these four roles
by taking the median wage as estimated
by the U.S. Bureau of Labor Statistics
(BLS), and computing an additional
benefits cost as follows:18
TABLE 3—TOTAL HOURLY REMUNERATION (FULLY LOADED HOURLY WAGE) PER ROLE AND BLS JOB POSITION
Role
BLS-code
Board of directors/trustees ...........................
General supervision ......................................
Direct supervision .........................................
Clerical work (research, review, and filing
and producing the program upon request).
11–1010
11–3031
13–1041
43–3099
Median hourly
wage
BLS-name
Chief Executive a ..................
Financial Manager ................
Compliance Officer ...............
Financial Clerk ......................
$91.12
67.21
34.47
22.66
Benefit factor
1.42
1.42
1.42
1.42
Fully loaded
hourly wage
b $129.39
95.44
48.95
32.18
a FinCEN recognizes that a board of directors/trustees would be on a different pay scale than a chief executive officer, however, chief executive officer is the highest paid category in the BLS Occupational Employment Statistics. For that reason, FinCEN is conservatively estimating the
highest wage rate available for its cost analysis.
b $129.39 rounded to $129.00.
FinCEN estimates that, in general and
on average,19 each role would spend
different amounts of time on each
portion of the annual PRA burden, as
follows:
For Action A set out in Table 2 above,
annually maintaining and updating the
AML program documentation, the cost
of each hour of burden is estimated to
be $49.00, as shown in Table 4 below.
Action A applies to all financial
institutions covered by this notice,
except agent MSBs.
TABLE 4—WEIGHTED AVERAGE HOURLY COST OF MAINTAINING AND UPDATING AML PROGRAM DOCUMENTATION
General supervision
Direct supervision
%time
Hourly cost
10 .............................................................
lotter on DSK11XQN23PROD with NOTICES1
a $48.57
%time
$9.54
Clerical work (case review)
Hourly cost
60
%time
$29.37
Hourly cost
30
$9.65
Weighted
average hourly
cost
a $49.00
rounded to $49.00.
For Actions B, C, and E, set out in
Table 2 above, the cost of each hour of
burden is estimated to be $34.00, as
shown in Table 5 below:
• Action B—storing the AML
program. (Applies to all financial
institutions covered by this notice).
• Action C—producing of the AML
program upon request. (Applies to all
financial institutions covered by this
notice).
• Action E—obtaining, verifying, and
storing prepaid access customer
identifying information. (Only applies
to providers and sellers of prepaid
access).
18 BLS, Occupational Employment StatisticsNational (May 2022), available at https://
www.bls.gov/oes/tables.htm. The most recent data
from the BLS corresponds to May 2022. The ratio
between benefits and wages for private industry
workers is $12.77 (hourly benefits)/$30.33 (hourly
wages) = 0.42, as of December 2023. The benefit
factor is 1 plus the benefit/wages ratio, or 1.42. See
BLS, Employee Costs for Employee Compensation
(Dec. 2023), available at ECEC Home: U.S. Bureau
of Labor Statistics (bls.gov).
19 By ‘‘in general,’’ FinCEN is speaking without
regard to outliers (e.g., financial institutions with
AML programs with complexities that are
uncommonly higher or lower than those of the
population at large). By ‘‘on average,’’ FinCEN
means the mean of the distribution of each subset
of the population.
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29432
Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Notices
TABLE 5—WEIGHTED AVERAGE HOURLY COST OF STORING AND PRODUCING AML PROGRAM DOCUMENTATION UPON
REQUEST, AND OBTAINING, VERIFYING, AND STORING PREPAID ACCESS CUSTOMER IDENTIFYING INFORMATION
General supervision
%time
Direct supervision
Hourly cost
1 ...............................................................
a $34.32
%time
Clerical work (recordkeeping)
Hourly cost
$0.95
9
%time
$4.41
Hourly cost
90
$28.96
Weighted
average hourly
cost
a $34.00
rounded to $34.00.
For Action D set out in Table 2 above,
approval of the AML program by the
board of directors or trustees of a bank
lacking a Federal functional regulator or
mutual fund, the cost of each hour of
burden would be $129.00, as shown in
Table 3 above. Action D only applies to
banks lacking a Federal functional
regulator and mutual funds.20
The total cost of the annual PRA
burden would be $7,448,812, as
reflected in Table 6 below:
TABLE 6—TOTAL COST OF ANNUAL PRA BURDEN
Total burden
in hours
Action
Total cost
($)
(Table 2)
lotter on DSK11XQN23PROD with NOTICES1
Hourly cost
Source
A. Maintaining and updating the written AML program ......................
B. Storing the written AML program ...................................................
C. Producing the written AML program upon request ........................
D. Board of directors/trustees approval of the AML program .............
E. Obtaining, verifying, and storing prepaid access customer identifying information.
53,882
23,587
23,587
2,000
86,667
49
34
34
129
34
Total Cost .................................................................................
........................
........................
Estimated Recordkeeping Burden:
Due to the different scope and criteria
used for the estimate, the average
estimated annual PRA burden,
measured in hours per respondent, is:
(Action A) one hour per principal
financial institution, for maintaining
and updating the AML program; (Action
B) five minutes per financial institution,
for storing the written AML program;
(Action C) five minutes per financial
institution, for producing a copy of the
AML program if requested by regulatory
examiners or law enforcement; (Action
D) one hour per bank lacking a Federal
functional regulator or mutual fund, for
securing approval of the AML program
by the board of directors or trustees; and
(Action E) two minutes per provider or
seller of prepaid access, for obtaining,
verifying, and maintaining customer
identifying information.
Estimated Number of Respondents:
283,043, as described in Table 1.
Estimated Total Annual Responses:
Due to unique AML program
requirements for banks lacking a Federal
functional regulator, mutual funds, and
MSBs, each of the five actions listed
below impact a different estimated
number of financial institutions as
follows:
20 See
(1) 53,882 (all financial institutions
except agent MSBs) for the maintaining
the written AML program (Action A);
(2) 283,043 (total number of financial
institutions) for storing the written AML
program (Action B);
(3) 283,043 (total number of financial
institutions) for producing a copy of the
written AML program if requested by
regulatory examiners or law
enforcement (Action C);
(4) 2,000 (number of banks lacking a
Federal functional regulator and mutual
funds) for securing approval of an AML
program by the board of directors or
trustees (Action D); and
(5) 2,600,000 (number of new prepaid
access arrangements added per year) for
providers and sellers of prepaid access
for obtaining, verifying, and maintaining
customer identifying information
(Action E).
Estimated Total Annual
Recordkeeping Burden: The estimated
total annual PRA burden is 189,723
hours, as described in Table 2.
Estimated Total Annual
Recordkeeping Cost: The cost of the
estimated total annual PRA is
$7,448,812, as described in Table 6.
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. Records required to be retained
Table
Table
Table
Table
Table
4
5
5
3
5
.......................
.......................
.......................
.......................
.......................
2,640,218
801,958
801,958
258,000
2,946,678
....................................
7,448,812
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:
(a) whether the collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information shall have
practical utility; (b) the accuracy of the
agency’s estimate of the burden of the
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology;
and (e) estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Andrea M. Gacki,
Director, Financial Crimes Enforcement
Network.
[FR Doc. 2024–08529 Filed 4–18–24; 11:15 am]
BILLING CODE 4810–02–P
supra note 14.
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]]>Agencies
[Federal Register Volume 89, Number 78 (Monday, April 22, 2024)]
[Notices]
[Pages 29427-29432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08529]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Anti-Money Laundering
Programs for Certain Financial Institutions
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 renewal, without
change, of existing information collection requirements related to Bank
Secrecy Act regulations that require banks lacking a Federal functional
regulator, money services businesses, mutual funds, insurance
companies, dealers in precious metals, precious stones, or jewels,
operators of credit card systems, and loan or finance companies to
develop and implement written anti-money laundering (AML) programs.
This notice does not address requirements that may be imposed under the
Anti-Money Laundering Act of 2020 (AML Act). Paperwork and respondent
burden for those requirements will be addressed in a separate notice of
proposed rulemaking (NPRM). This request for comments is
[[Page 29428]]
made pursuant to the Paperwork Reduction Act of 1995 (PRA).
DATES: Written comments are welcome and must be received on or before
June 21, 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-2024-0010 and the specific Office of Management and Budget (OMB)
control numbers 1506-0020, 1506-0030, and 1506-0035.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0010 and OMB control numbers 1506-0020, 1506-0030, and 1506-0035.
Please submit comments by one method only. Comments will be
reviewed consistent with the PRA 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 [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) \1\ and other legislation,
including the AML Act.\2\ The BSA is codified at 12 U.S.C. 1829b and
1951-1960 and 31 U.S.C. 5311-5314 and 5316-5336, and notes thereto,
with implementing regulations at 31 CFR Chapter X.
---------------------------------------------------------------------------
\1\ USA PATRIOT Act, Pub. L. 107-56.
\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, Pub. L. 116-283, 134 Stat. 3388 (NDAA).
---------------------------------------------------------------------------
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 proceedings,
or in the conduct of intelligence or counter-intelligence activities to
protect against terrorism, and to implement anti-money laundering/
countering the financing of terrorism (AML/CFT) programs and compliance
procedures.\3\ 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.'' See 12
U.S.C. 1829b(a). 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. See 31 U.S.C. 5311.
\4\ Treasury Order 180-01 (Jan. 14, 2020).
---------------------------------------------------------------------------
31 U.S.C. 5318(h)(1) of the BSA mandates that financial
institutions establish AML/CFT programs to guard against money
laundering and the financing of terrorism.\5\ Such programs must
include, at a minimum: (a) the development of internal policies,
procedures, and controls, (b) the designation of a compliance officer,
(c) an ongoing employee training program, and (d) an independent audit
function to test programs.\6\ Pursuant to 31 U.S.C. 5318(h)(2), FinCEN
issued regulations requiring banks lacking a Federal functional
regulator (31 CFR 1020.210(b)), money services businesses (MSBs) (31
CFR 1022.210), mutual funds (31 CFR 1024.210), insurance companies (31
CFR 1025.210), dealers in precious metals, precious stones, or jewels
(31 CFR 1027.210), operators of credit card systems (31 CFR 1028.210),
and loan or finance companies (31 CFR 1029.210) to develop and
implement written AML programs.
---------------------------------------------------------------------------
\5\ The provision was added to the BSA through Section 352 of
the USA PATRIOT Act. Section 6101(b) of the AML Act amended the
provision to include explicit references to terrorism finance.
\6\ The provision, which was added to the BSA through Section
352 of the USA PATRIOT Act, authorized FinCEN to prescribe minimum
standards for AML programs and to exempt certain financial
institutions from application of those standards. Section 6101(b) of
the AML Act amended the provision to specify the factors that FinCEN
must consider in prescribing minimum standards.
---------------------------------------------------------------------------
This notice renews the OMB control numbers associated with these
specific AML program regulations. This notice is not renewing the OMB
control numbers associated with other types of financial institutions'
AML program regulatory requirements at this time for the reasons
described below. This notice also does not address any changes to
requirements governing AML programs that FinCEN may make pursuant to
section 6101(b) of the AML Act; FinCEN will address the paperwork and
respondent burden of such changes in a separate NPRM, when it proposes
implementing rules.
On April 29, 2002, FinCEN issued an interim final rule to provide
guidance to certain financial institutions concerning implementation of
statutory requirements related to AML programs. The interim final rule
provided that banks, savings associations, credit unions, brokers or
dealers in securities, futures commission merchants, and casinos would
be deemed to be in compliance if they established and maintained AML
programs as required by existing FinCEN regulations, or their
respective Federal regulator or self-regulatory organization (SRO).\7\
---------------------------------------------------------------------------
\7\ See FinCEN, Anti-Money Laundering Programs for Financial
Institutions Interim Final Rule, 67 FR 21110 (Apr. 29, 2022).
---------------------------------------------------------------------------
Of the types of financial institutions subject to the interim final
rule, only casinos were already subject to AML program regulations
issued by FinCEN.\8\ Federally insured depository institutions and
credit unions were (and have continued to be) required by their
respective federal functional regulators (as defined in section 509 of
the Gramm-Leach-Bliley Act (12 U.S.C. 6809) to have AML programs.
Brokers and dealers in securities and futures commission merchants were
not then subject to an AML program requirement, and FinCEN stated in
the interim final rule that it was appropriate to implement section
5318(h) of the BSA with respect to those types of financial
institutions through their respective SROs. FinCEN therefore does not
maintain OMB control numbers for the AML program regulatory
requirements of banks, savings associations, credit unions, brokers or
dealers in securities, or futures commission merchants.\9\
---------------------------------------------------------------------------
\8\ See the Department of the Treasury, Amendments to the Bank
Secrecy Act; Regulations Regarding Reporting and Recordkeeping
Requirements by Casinos Final Rule, 58 FR 13538 (Mar. 12, 1993) and
FinCEN, Amendments to the Bank Secrecy Act Regulations Regarding
Reporting and Recordkeeping Requirements by Casinos Final Rule, 59
FR 61660 (Dec. 1, 1994).
\9\ The casino AML program regulations are covered under FinCEN
OMB control number 1506-0051, which is not scheduled to expire
before October 2024. The renewal of that control number, therefore,
will be addressed in a separate FinCEN notice released later this
year. Since 1987, all federally insured depository institutions and
credit unions have been required by their Federal regulators to have
AML programs. The applicable Federal regulator maintains the OMB
control number for the AML program regulatory requirements of
depository institutions and credit unions as follows: (a) Office of
Comptroller of the Currency (AML program regulations at 12 CFR
21.21--covered by OMB control number 1557-0180); (b) Federal Reserve
Board (AML program regulations at 12 CFR 208.63--covered by OMB
control number 7100-0310); (c) Federal Deposit Insurance Corporation
(AML program regulations at 12 CFR 326.8--covered by OMB control
number 3064-0087); and (d) National Credit Union Administration (AML
program regulations at 12 CFR 748.2--covered by OMB control number
3133-0108). In the 2002 interim final rule, FinCEN also noted it was
appropriate to implement section 5318(h)(1) of the BSA with respect
to brokers or dealers in securities and futures commission merchants
through their respective SROs, because the Securities and Exchange
Commission (SEC) and the Commodity Futures Trade Commission (CFTC)
and their SROs significantly accelerated the implementation of AML
programs for their regulated financial institutions. Accordingly, 31
CFR 1023.210 and 31 CFR 1026.210 provided that brokers or dealers in
securities, and futures commission merchants and introducing brokers
in commodities, respectively, would be deemed to be in compliance
with the requirements of section 5318(h)(1) of the BSA if they
implement and maintain AML programs that, among other things, comply
with rules, regulations, or requirements of their SROs governing
such programs. The SEC's SRO for brokers and dealers is the
Financial Industry Regulatory Authority (FINRA). The AML program
requirements for brokers or dealers in securities is FINRA Rule 331.
The CFTC's SRO for futures commission merchants is the National
Futures Association (NFA). The AML program requirements for futures
commission merchant and introducing brokers in commodities is NFA
Rule 2-9(c). The SROs are not required to comply with the PRA.
Therefore, there are no OMB control numbers for the AML program
regulatory requirements of brokers or dealers in securities, futures
commission merchants, and introducing brokers in commodities.
---------------------------------------------------------------------------
[[Page 29429]]
In implementing section 6101(b) of the AML Act, FinCEN intends to
propose amendments to FinCEN's AML program regulations, including
regulations for banks lacking a Federal functional regulator, MSBs,
mutual funds, insurance companies, dealers in precious metals, precious
stones, or jewels, operators of credit card systems, and loan or
finance companies. FinCEN will assess the PRA burden of these
amendments when it issues an NPRM; it does not do so here.
II. Paperwork Reduction Act of 1995 10
---------------------------------------------------------------------------
\10\ Paperwork Reduction Act of 1995, Pub. L. 104-13, 44 U.S.C.
3506(c)(2)(A).
---------------------------------------------------------------------------
Title: AML program requirements for banks lacking a Federal
functional regulator (31 CFR 1020.210(b)), MSBs (31 CFR 1022.210),
mutual funds (31 CFR 1024.210), insurance companies (31 CFR 1025.210),
dealers in precious metals, precious stones, or jewels (31 CFR
1027.210), operators of credit card systems (31 CFR 1028.210), and loan
or finance companies (31 CFR 1029.210).
OMB Control Numbers: 1506-0020, 1506-0030, and 1506-0035.\11\
---------------------------------------------------------------------------
\11\ The AML program regulatory requirements are currently
covered under the following OMB control numbers: 1506-0020 (31 CFR
1022.210--AML programs for MSBs, 31 CFR 1024.210--AML programs for
mutual funds, and 31 CFR 1028.210--AML programs for operators of
credit card systems); 1506-0030 (31 CFR 1027.210--AML programs for
dealers in precious metals, precious stones, or jewels); and 1506-
0035 (31 CFR 1020.210(b)--AML program requirements for banks lacking
a Federal functional regulator, 31 CFR 1025.210--AML programs for
insurance companies, and 31 CFR 1029.210--AML programs for loan and
finance companies). There is no OMB control number associated with
31 CFR 1030.210--AML programs for housing government sponsored
enterprises (HGSEs), because the PRA does not apply to the
collection of information by one federal agency (FinCEN) from
another federal entity (the HGSEs).
---------------------------------------------------------------------------
Form Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
numbers for the AML program regulatory requirements for certain
financial institutions.
Affected Public: Businesses or other for-profit institutions, and
non-profit institutions.
Type of Review: Renewal without change of currently approved
information collections.
Frequency: As required.
Estimated Number of Respondents: 283,043 financial
institutions.\12\
---------------------------------------------------------------------------
\12\ Table 1 below breaks down the types of financial
institutions covered by this notice.
---------------------------------------------------------------------------
Estimated Recordkeeping Burden: In Part 1 of this notice, FinCEN
describes the breakdown of the estimated number of financial
institution, by type. In Part 2, FinCEN proposes for review and comment
a renewal of the calculation of the annual PRA burden that includes a
scope and methodology similar to that used in the 2020 notice to renew
the OMB control numbers for the AML programs of certain financial
institutions.\13\
---------------------------------------------------------------------------
\13\ See FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of Anti-
Money Laundering Programs for Certain Financial Institutions, 85 FR
49418 (Aug. 13, 2020).
---------------------------------------------------------------------------
Part 1. Breakdown of Financial Institutions Covered by This Notice
The breakdown of financial institutions, by type, covered by this
notice, is reflected in Table 1 below:
Table 1--Number of Covered Financial Institutions by Type
------------------------------------------------------------------------
Number of
Type of financial institution financial
institutions
------------------------------------------------------------------------
Banks lacking a Federal functional regulator............ \a\ 600
Principal MSBs \b\...................................... \c\ 27,500
Providers or sellers of prepaid access.................. 2,605
Other types of principal MSBs........................... 24,895
Agent MSBs.............................................. \d\ 229,161
Mutual funds............................................ \e\ 1,400
Insurance companies..................................... \f\ 4,678
Dealers in precious metals, stones, and jewels.......... \g\ 6,700
Operators of credit card systems........................ \h\ 4
Loan or finance companies............................... \i\ 13,000
---------------
Total............................................... 283,043
------------------------------------------------------------------------
\a\ This estimate of active entities as of year-end 2023 incorporates
data from both public and non-public sources, including: Call Reports;
various state banking/financial institution regulators' websites and
directories; the Federal Reserve Board of Governors' Master Account
and Services database (https://www.federalreserve.gov/paymentsystems/master-account-and-services-database-existing-access.htm); and data
from the OCIF (Oficina del Comisionado de Instituciones Financieras);
and was derived in consultation with staff from the Internal Revenue
Service's Small Business/Self-Employed Division.
\b\ The definition of MSB covers both principal MSBs and agents. Under
31 CFR 1022.210(d)(1)(iii), a person that is an MSB solely because it
is an agent for another MSB and the MSB for which it serves as an
agent (the principal MSB) may by agreement allocate between themselves
responsibility for developing policies, procedures, and internal
controls. However, neither the agent nor the principal MSB can avoid
liability for failing to establish or maintain an effective AML
program by pointing to a contract assigning the responsibility to the
other party.
\c\ This value represents the number of uniquely identifiable principal
MSBs with indicia of ongoing operations as of year-end 2023. The
estimate is derived from FinCEN's publicly available MSB data
available at https://www.fincen.gov/msb-registrant-search, accessed
February 28, 2024.
\d\ In the absence of public comments in prior renewals of the OMB
control number applicable to this regulatory requirement, FinCEN
considers it reasonable to continue to rely upon its previous estimate
that the number of agent MSBs remains approximately 229,161. This
value was previously published in the 2020 notice to renew OMB control
numbers 1506-0020, 1506-0030, and 1506-0035 (85 CFR 49420 (Aug. 13,
2020)).
\e\ This estimate of the number of active mutual funds as of year-end
2023 is based on Form N-CEN filings received by the U.S. Securities
and Exchange Commission through January 20, 2023, as represented by
data downloaded from SEC Open Data (https://www.sec.gov/dera/data/form-ncen-data-sets), accessed February 29, 2024.
\f\ This estimate is based on data on entities with NAICS code 423940
(Jewelry, Watch, Precious Stone, and Precious Metal Merchant
Wholesalers) published at year end 2023 in the 2021 Survey of U.S.
Businesses (https://www.census.gov/data/datasets/2021/econ/susb/2021-susb.html), accessed March 1, 2024.
\g\ This estimate includes 667 L&H insurers, 2,656 P&C insurers, and
1,355 health insurers licensed in the United States during 2022. From
US Treasury ``Annual Report on the Insurance Industry,'' published
September 2023 (https://home.treasury.gov/system/files/311/FIO%20Annual%20Report%202023%209292023.pdf), accessed February 28,
2024.
\h\ This value is based on FinCEN review of active, U.S. based market
participants at year end 2023.
[[Page 29430]]
\i\ This estimate is based on data on entities with NAICS codes 522292
(Real Estate Credit) and 522310 (Mortgage and Non-Mortgage Loan
Brokers) published at year end 2023 in the 2021 Survey of U.S.
Businesses (https://www.census.gov/data/datasets/2021/econ/susb/2021-susb.html), accessed March 1, 2024.
As noted above, 31 U.S.C. 5318(h) mandates that financial
institutions establish AML/CFT programs to guard against money
laundering and the financing of terrorism. Such programs must include,
at a minimum: (a) the development of internal policies, procedures, and
controls, (b) the designation of a compliance officer, (c) an ongoing
employee training program, and (d) an independent audit function to
test programs.
The AML program regulations for banks lacking a Federal functional
regulator, MSBs, mutual funds, insurance companies, dealers in precious
metals, precious stones, or jewels, operators of credit card systems,
and loan or finance companies require these financial institutions to
implement AML programs that are reasonably designed. The AML program
must be in writing and must be commensurate with the financial
institution's risk profile.
The AML program regulations for banks lacking a Federal functional
regulator and mutual funds, for which the corresponding OMB control
numbers are being renewed as part of this notice, include customer due
diligence (CDD) requirements. 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 CDD requirements for
banks lacking a Federal functional regulator and mutual funds.
Part 2. Annual PRA Burden and Cost
The scope of the annual PRA burden and cost estimates of the AML
program in this renewal is limited to: maintaining and updating the AML
program documentation (Action A); storing the written AML program
(Action B); producing a copy of the written AML program if requested by
regulatory examiners or law enforcement (Action C); for banks lacking a
Federal functional regulator and mutual funds, securing approval of the
AML program by the board of directors or trustees (Action D); \14\ and
for providers or sellers of prepaid access, obtaining, verifying, and
maintaining cardholder identifying information (Action E).\15\
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\14\ The AML program regulations for banks lacking a Federal
functional regulator and mutual funds are the only AML program
regulations being renewed in this notice with a regulatory
requirement to secure board of directors' or trustees' approval of
the AML program. FinCEN recognizes, however, that the other
financial institutions covered by this notice may also get their
board of directors or trustees to approve their AML programs as a
best practice.
\15\ The MSB AML program regulations have a unique requirement.
Specifically, 31 CFR 1022.210(d)(1)(iv) provides that an MSB that is
a provider or seller of prepaid access must establish procedures to
verify the identity of a person who obtains prepaid access under a
prepaid program and obtain identifying information concerning such a
person, including name, date of birth, address, and identification
number. Sellers of prepaid access must also establish procedures to
verify the identity of a person who obtains prepaid access to funds
that exceed $10,000 during any one day and obtain identifying
information concerning such a person, including name, date of birth,
address, and identification number.
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For purposes of the estimate of the AML program annual PRA burden,
FinCEN generally assumes:
(a) Agent MSBs agree to abide by, and in practice do abide by, the
policies, procedures, and internal controls established by their
principal MSBs.
(b) Principal MSBs establish minimum training and independent
review standards for their agents.\16\
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\16\ According to FIN-2016-G001, ``Guidance on Existing AML
Program Rule Compliance Obligations for MSB Principals with Respect
to Agent Monitoring,'' (Mar. 11, 2016), MSB principals are required
to develop and implement risk-based policies, procedures, and
internal controls that ensure adequate ongoing monitoring of agent
activity, as part of the principal's implementation of its AML
program. Imposing a minimum level of general training and a minimum
frequency of independent review allows principal MSBs to standardize
in part these agent monitoring responsibilities. This document is
available at https://www.fincen.gov/resources/statutes-regulations/guidance/guidance-existing-aml-program-rule-compliance-obligations.
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(c) Required written AML programs are stored as electronic files.
The estimated annual burden (five minutes per financial institution)
represents the administrative burden involved in processing the storage
of the written program.
(d) Producing the written AML program to regulatory or law
enforcement agencies, upon their request, is performed electronically.
FinCEN estimates the annual burden of producing the written program at
five minutes per financial institution. The estimated annual burden
represents the administrative burden involved in producing the program
upon request once per year.
(e) The estimated number of prepaid access arrangements established
annually remains at approximately 2.6 million. The collection and
storage of cardholder identification information is automated.\17\
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\17\ In the absence of public comments in all prior renewals of
the OMB control number applicable to this regulatory requirement,
FinCEN considers it reasonable to continue to rely upon its previous
estimate that the number of prepaid arrangements established
annually is 2.6 million.
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The estimated burden associated with each portion of the annual PRA
estimate is as follows:
Table 2--Burden Associated With Each Action of the Annual PRA Estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of
Action Instances per year Time per instance Type of financial financial Total hourly
institution institutions \a\ burden
--------------------------------------------------------------------------------------------------------------------------------------------------------
A. Maintaining and updating the 1 per financial 1 hour................... All except agent MSBs... 53,882 53,882
written AML program. institution.
B. Storing the written AML program.... 1 per financial 5 minutes................ All..................... 283,043 23,587
institution.
C. Producing the AML program upon 1 per financial 5 minutes................ All..................... 283,043 23,587
request. institution.
D. Board of directors/trustees 1 per financial 1 hour................... Banks lacking a Federal 2,000 2,000
approval of the AML program. institution. functional regulator
and mutual funds.
E. Obtaining, verifying, and storing 2.6 million (once per 2 minutes................ Providers or sellers of 2,605 86,667
cardholder identifying information. card). prepaid access.
---------------
[[Page 29431]]
Total Hourly Burden............... ......................... ......................... ........................ ................ 189,723
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ As set out in Table 1 above.
FinCEN's estimate for the total hourly annual PRA burden is 189,723
hours.
FinCEN identified four roles and corresponding staff positions
involved in maintaining an AML program to estimate the hourly costs
associated with the burden hour estimates calculated in this part.
Those are: (i) general approval (board of directors/trustees approval
of the AML program); (ii) general supervision (providing process
management); (iii) direct supervision (reviewing operational-level work
and cross-checking all or a sample of the work product against their
supporting documentation); and (iv) clerical work (engaging in research
and administrative review and filing and producing the AML program on
request).
FinCEN calculated the fully loaded hourly wage for each of these
four roles by taking the median wage as estimated by the U.S. Bureau of
Labor Statistics (BLS), and computing an additional benefits cost as
follows:\18\
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\18\ BLS, Occupational Employment Statistics-National (May
2022), available at https://www.bls.gov/oes/tables.htm. The most
recent data from the BLS corresponds to May 2022. The ratio between
benefits and wages for private industry workers is $12.77 (hourly
benefits)/$30.33 (hourly wages) = 0.42, as of December 2023. The
benefit factor is 1 plus the benefit/wages ratio, or 1.42. See BLS,
Employee Costs for Employee Compensation (Dec. 2023), available at
ECEC Home: U.S. Bureau of Labor Statistics (bls.gov).
Table 3--Total Hourly Remuneration (Fully Loaded Hourly Wage) per Role and BLS Job Position
----------------------------------------------------------------------------------------------------------------
Median hourly Fully loaded
Role BLS-code BLS-name wage Benefit factor hourly wage
----------------------------------------------------------------------------------------------------------------
Board of directors/trustees... 11-1010 Chief Executive $91.12 1.42 \b\ $129.39
\a\.
General supervision........... 11-3031 Financial 67.21 1.42 95.44
Manager.
Direct supervision............ 13-1041 Compliance 34.47 1.42 48.95
Officer.
Clerical work (research, 43-3099 Financial Clerk. 22.66 1.42 32.18
review, and filing and
producing the program upon
request).
----------------------------------------------------------------------------------------------------------------
\a\ FinCEN recognizes that a board of directors/trustees would be on a different pay scale than a chief
executive officer, however, chief executive officer is the highest paid category in the BLS Occupational
Employment Statistics. For that reason, FinCEN is conservatively estimating the highest wage rate available
for its cost analysis.
\b\ $129.39 rounded to $129.00.
FinCEN estimates that, in general and on average,\19\ each role
would spend different amounts of time on each portion of the annual PRA
burden, as follows:
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\19\ By ``in general,'' FinCEN is speaking without regard to
outliers (e.g., financial institutions with AML programs with
complexities that are uncommonly higher or lower than those of the
population at large). By ``on average,'' FinCEN means the mean of
the distribution of each subset of the population.
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For Action A set out in Table 2 above, annually maintaining and
updating the AML program documentation, the cost of each hour of burden
is estimated to be $49.00, as shown in Table 4 below. Action A applies
to all financial institutions covered by this notice, except agent
MSBs.
Table 4--Weighted Average Hourly Cost of Maintaining and Updating AML Program Documentation
--------------------------------------------------------------------------------------------------------------------------------------------------------
General supervision Direct supervision Clerical work (case review) Weighted
----------------------------------------------------------------------------------------------------------------------------------------- average hourly
%time Hourly cost %time Hourly cost %time Hourly cost cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
10...................................................... $9.54 60 $29.37 30 $9.65 \a\ $49.00
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ $48.57 rounded to $49.00.
For Actions B, C, and E, set out in Table 2 above, the cost of each
hour of burden is estimated to be $34.00, as shown in Table 5 below:
Action B--storing the AML program. (Applies to all
financial institutions covered by this notice).
Action C--producing of the AML program upon request.
(Applies to all financial institutions covered by this notice).
Action E--obtaining, verifying, and storing prepaid access
customer identifying information. (Only applies to providers and
sellers of prepaid access).
[[Page 29432]]
Table 5--Weighted Average Hourly Cost of Storing and Producing AML Program Documentation Upon Request, and Obtaining, Verifying, and Storing Prepaid
Access Customer Identifying Information
--------------------------------------------------------------------------------------------------------------------------------------------------------
General supervision Direct supervision Clerical work (recordkeeping) Weighted
----------------------------------------------------------------------------------------------------------------------------------------- average hourly
%time Hourly cost %time Hourly cost %time Hourly cost cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
1....................................................... $0.95 9 $4.41 90 $28.96 \a\ $34.00
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ $34.32 rounded to $34.00.
For Action D set out in Table 2 above, approval of the AML program
by the board of directors or trustees of a bank lacking a Federal
functional regulator or mutual fund, the cost of each hour of burden
would be $129.00, as shown in Table 3 above. Action D only applies to
banks lacking a Federal functional regulator and mutual funds.\20\
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\20\ See supra note 14.
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The total cost of the annual PRA burden would be $7,448,812, as
reflected in Table 6 below:
Table 6--Total Cost of Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
Total burden Hourly cost
in hours ------------------------------------------
Action ---------------- Total cost
(Table 2) ($) Source
----------------------------------------------------------------------------------------------------------------
A. Maintaining and updating the 53,882 49 Table 4................. 2,640,218
written AML program.
B. Storing the written AML program.... 23,587 34 Table 5................. 801,958
C. Producing the written AML program 23,587 34 Table 5................. 801,958
upon request.
D. Board of directors/trustees 2,000 129 Table 3................. 258,000
approval of the AML program.
E. Obtaining, verifying, and storing 86,667 34 Table 5................. 2,946,678
prepaid access customer identifying
information.
---------------
Total Cost...................... .............. .............. ........................ 7,448,812
----------------------------------------------------------------------------------------------------------------
Estimated Recordkeeping Burden: Due to the different scope and
criteria used for the estimate, the average estimated annual PRA
burden, measured in hours per respondent, is: (Action A) one hour per
principal financial institution, for maintaining and updating the AML
program; (Action B) five minutes per financial institution, for storing
the written AML program; (Action C) five minutes per financial
institution, for producing a copy of the AML program if requested by
regulatory examiners or law enforcement; (Action D) one hour per bank
lacking a Federal functional regulator or mutual fund, for securing
approval of the AML program by the board of directors or trustees; and
(Action E) two minutes per provider or seller of prepaid access, for
obtaining, verifying, and maintaining customer identifying information.
Estimated Number of Respondents: 283,043, as described in Table 1.
Estimated Total Annual Responses: Due to unique AML program
requirements for banks lacking a Federal functional regulator, mutual
funds, and MSBs, each of the five actions listed below impact a
different estimated number of financial institutions as follows:
(1) 53,882 (all financial institutions except agent MSBs) for the
maintaining the written AML program (Action A);
(2) 283,043 (total number of financial institutions) for storing
the written AML program (Action B);
(3) 283,043 (total number of financial institutions) for producing
a copy of the written AML program if requested by regulatory examiners
or law enforcement (Action C);
(4) 2,000 (number of banks lacking a Federal functional regulator
and mutual funds) for securing approval of an AML program by the board
of directors or trustees (Action D); and
(5) 2,600,000 (number of new prepaid access arrangements added per
year) for providers and sellers of prepaid access for obtaining,
verifying, and maintaining customer identifying information (Action E).
Estimated Total Annual Recordkeeping Burden: The estimated total
annual PRA burden is 189,723 hours, as described in Table 2.
Estimated Total Annual Recordkeeping Cost: The cost of the
estimated total annual PRA is $7,448,812, as described in Table 6.
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. 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: (a) whether the collection of information is necessary for the
proper performance of the functions of the agency, including whether
the information shall have practical utility; (b) the accuracy of the
agency's estimate of the burden of the collection of information; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology; and (e)
estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2024-08529 Filed 4-18-24; 11:15 am]
BILLING CODE 4810-02-P
