Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of the Customer Identification Program Regulatory Requirements for Certain Financial Institutions, 51940-51944 [2024-13590]
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Federal Register / Vol. 89, No. 119 / Thursday, June 20, 2024 / Notices
during air transport.5 The rule (1)
expanded the reporting requirement
from the largest U.S. carriers (i.e., U.S.
carriers that account for at least 1
percent of domestic scheduled
passenger revenue) to U.S. carriers that
operate scheduled service with at least
one aircraft with a design capacity of
more than 60 seats; (2) expanded the
definition of ‘‘animal’’ from only a pet
in a family household to include all cats
and dogs transported by covered
carriers, regardless of whether the cat or
dog is transported as a pet by its owner
or as part of a commercial shipment
(e.g., shipped by a breeder); (3) required
covered carriers to file a calendar-year
report in December, even if the carrier
did not have any reportable incidents
during the calendar year; (4) required
covered carriers to provide in their
December reports the total number of
animals that were lost, injured, or died
during air transport in the calendar year;
and (5) required covered carriers to
provide in their December reports the
total number of animals transported in
the calendar year.
The ICR, ‘‘Reports by Air Carriers on
Incidents Involving Animals During Air
Transport,’’ OMB Control Number
2105–0552, was renewed twice: on
August 25, 2015, OMB approved the
reinstatement of the ICR through August
31, 2018, and on October 11, 2018, OMB
approved the reinstatement of the ICR
through October 31, 2021.
The PRA and its implementing
regulations, 5 CFR part 1320, require
Federal agencies to issue two notices
seeking public comment on information
collection activities before OMB may
approve paperwork packages. A Federal
agency generally cannot conduct or
sponsor a collection of information, and
the public is generally not required to
respond to an information collection,
unless it is approved by the OMB under
the PRA and displays a currently valid
OMB Control Number. In addition,
notwithstanding any other provisions of
law, no person shall generally be subject
to monetary penalty for failing to
comply with a collection of information
if the collection of information does not
display a valid OMB Control Number.
As noted above, on January 24, 2024,
DOT published a 60-day notice in the
Federal Register soliciting comment on
the reinstatement of this previously
approved ICR. DOT received one
comments in response to the notice.
However, this comment is outside the
scope of the ICR and does not discuss
5 Reports by Air Carriers on Incidents Involving
Animals During Air Transport, 79 FR 37938 (July
3, 2014) (codified at 14 CFR part 235).
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the proposed collection of information
and the estimated burden.
DOT announces that this ICR has been
re-evaluated and certified under 5 CFR
1320.5(a) and forwarded to OMB for
review and approval pursuant to 5 CFR
1320.12(c). Before OMB decides
whether to approve these proposed
collections of information, it must
provide 30 days for public comment.6
Federal law requires OMB to approve or
disapprove paperwork packages
between 30 and 60 days after the 30-day
notice is published.7 The 30-day notice
informs the regulated community to file
relevant comments and affords the
agency adequate time to digest public
comments before it renders a decision.8
Therefore, respondents should submit
their respective comments to OMB
within 30 days of publication to best
ensure their full consideration. The
summaries below describe the nature of
the ICR and the expected burden. The
unchanged requirements are being
submitted for clearance by OMB as
required by the PRA.
Respondents: U.S. carriers that
operate scheduled passenger service
with at least one aircraft having a
designed seating capacity of more than
60 seats.
Estimated Number of Respondents:
30.
Frequency: For each respondent, one
information set for the month of
December, plus one information set
during some other months (1 to 12).
Estimated Total Burden on
Respondents: (1) Monthly reports of
incidents involving the loss, injury, or
death of animals during air transport: 0
to 360 hours (Respondents [30] × Time
to Prepare One Monthly Report [1 hour]
× Frequency [0 to 12 per year]). (2)
December report containing the total
number of animals that were lost,
injured, or died during air transport in
the calendar year and the total number
of animals that were transported in the
calendar year: 15 hours (Respondents
[30] × Time to Prepare One December
Report [0.5 hour] × Frequency [1 per
year]).
Public Comments Invited: You are
asked to comment on any aspect of this
information collection, including (a)
whether the proposed collection of
information is necessary for the
Department’s performance; (b) the
accuracy of the estimated burden; (c)
ways for the Department to enhance the
quality, utility, and clarity of the
information collection; and (d) ways
that the burden could be minimized
6 44
U.S.C. 3507(b); 5 CFR 1320.12(d).
U.S.C. 3507(b)–(c); 5 CFR 1320.12(d).
8 60 FR 44978, 44983 (August 29, 1995).
7 44
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without reducing the quality of the
collected information. All comments
will become a matter of public record.
Authority: The Paperwork Reduction
Act of 1995; 44 U.S.C. Chapter 35, as
amended; and 49 CFR 1.27(n).
Issued in Washington, DC.
Kimberly Graber,
Deputy Assistant General Counsel, Office of
Aviation Consumer Protection.
[FR Doc. 2024–13498 Filed 6–18–24; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request; Renewal Without
Change of the Customer Identification
Program Regulatory Requirements 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 proposed renewal, without change,
of existing information collection
requirements found in Bank Secrecy Act
regulations that require banks, savings
associations, credit unions, certain nonfederally regulated banks and trust
companies (collectively hereinafter
‘‘banks’’), brokers-dealers, mutual funds,
futures commission merchants, and
introducing brokers in commodities, to
develop and implement customer
identification programs designed to
allow the financial institutions to form
a reasonable belief that they know the
true identity of each of their customers.
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
August 19, 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–2023–
0015 and Office of Management and
Budget (OMB) control numbers 1506–
0022, 1506–0026, 1506–0033, and 1506–
0034.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
SUMMARY:
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Federal Register / Vol. 89, No. 119 / Thursday, June 20, 2024 / Notices
Number FINCEN–2023–0015 and OMB
control numbers 1506–0022, 1506–0026,
1506–0033, and 1506–0034.
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 Anti-Money
Laundering act of 2020 (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
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
1 USA
PATRIOT Act, Public Law 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, Public Law 116–283, 134 Stat.
3388 (NDAA).
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).
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31 U.S.C. 5318(l) requires the
Secretary to issue regulations
prescribing minimum standards for
customer identification programs (CIPs)
for financial institutions.5 Regulations
implementing section 5318(l) are as
follows: (i) banks (31 CFR 1020.220); (ii)
brokers-dealers (31 CFR 1023.220); 6 (iii)
mutual funds (31 CFR 1024.220); 7 and
(iv) futures commission merchants and
introducing brokers in commodities (31
CFR 1026.220).8
All covered financial institutions 9 are
required to implement a CIP appropriate
for its size and type of business. The CIP
must include at a minimum the
following five requirements:
(1) Written CIP appropriate for the
financial institution’s size and type of
business (if a financial institution is
required to have an AML compliance
program,10 the CIP must be part of the
written AML compliance program); 11
5 Section 5318(l)(2) prescribes that the
regulations, at a minimum, require financial
institutions to implement reasonable procedures
for: (1) verifying the identity of any person seeking
to open an account, to the extent reasonable and
practicable; (2) maintaining records of the
information used to verify the person’s identity,
including name, address, and other identifying
information; and (3) determining whether the
person appears on any lists of known or suspected
terrorists or terrorist organizations provided to the
financial institution by any government agency.
Section 5318(l)(3) further directs that the
regulations take into consideration the types of
accounts maintained by financial institutions, the
methods of opening accounts, and the types of
identifying information available.
6 ‘‘Broker-dealer’’ means a person registered or
required to be registered as a broker or dealer with
the Commission under the Securities Exchange Act
of 1934 (15 U.S.C. 77a et seq.), except persons who
register pursuant to 15 U.S.C. 78o(b)(11). 31 CFR
1023.100(b).
7 ‘‘Mutual fund’’ means an ‘‘investment
company’’ (as the term is defined in section 3 of the
Investment Company Act (15 U.S.C. 80a–3)) that is
an ‘‘open-end company’’ (as that term is defined in
section 5 of the Investment Company Act (15 U.S.C.
80a–5)) that is registered or is required to register
with the Commission under section 8 of the
Investment Company Act (15 U.S.C. 80a–8). 31 CFR
1010.100(gg).
8 ‘‘Futures commissions merchants’’ means any
person registered or required to be registered as a
futures commission merchant with the Commodity
Futures Trading Commission (‘‘CFTC’’) under the
Commodity Exchange Act (7 U.S.C. 1 et seq.),
except persons who register pursuant to Section
4f(a)(2) of the Commodity Exchange Act (7 U.S.C.
6f(a)(2)). 31 CFR 1026.100(f). ‘‘Introducing broker’’
means any person registered or required to be
registered as an introducing broker with the CFTC
under the Commodity Exchange Act (7 U.S.C. 1 et
seq.), except persons who register pursuant to
Section 4f(a)(2) of the Commodity Exchange Act (7
U.S.C. 6f(a)(2)). 31 CFR 1026.100(g).
9 The term ‘‘covered financial institution’’ applies
to all financial institutions with a CIP regulatory
requirement, namely banks, brokers-dealers, mutual
funds, futures commission merchants, and
introducing brokers in commodities.
10 31 CFR 1020.210; 1023.210; 1024.210; and
1026.210.
11 31 CFR 1020.220(a)(1); 1023.220(a)(1);
1024.220(a)(1); and 1026.220(a)(1).
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(2) Identity verification procedures
(risk-based procedures for verifying the
identity of each customer to the extent
reasonable and practicable that enable
the financial institution to form a
reasonable belief that it knows the true
identity of the customer); 12
(3) Recordkeeping (procedures for
making and maintaining a record of all
information obtained under the CIP
requirements); 13
(4) Consultation of government lists
(procedures to determine whether the
customer appears on any list of known
or suspected terrorists or terrorist
organizations issued by any Federal
government agency and designated as
such by Treasury in consultation with
the Federal functional regulators); 14 and
(5) Customer notice (procedures for
providing bank customers with
adequate notice that the bank is
requesting information to verify their
identities).15
The CIP may also include procedures
specifying when a financial institution
may rely on another financial institution
to perform any of the financial
institution’s CIP procedures, provided
certain conditions are met.16
II. Paperwork Reduction Act of 1995 17
Title: Customer identification
programs (CIPs) for certain financial
institutions (31 CFR 1020.220, 1023.220,
1024.220, and 1026.220).
OMB Control Numbers: 1506–0022,
1506–0026, 1506–0033, and 1506–
0034.18
Form Number: Not applicable.
Abstract: FinCEN is issuing this
notice to renew the OMB control
numbers for the CIP regulatory
requirements for covered 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.
12 31 CFR 1020.220(a)(2); 1023.220(a)(2);
1024.220(a)(2); and 1026.220(a)(2).
13 31 CFR 1020.220(a)(3); 1023.220(a)(3);
1024.220(a)(3); and 1026.220(a)(3).
14 31 CFR 1020.220(a)(4); 1023.220(a)(4);
1024.220(a)(4); and 1026.220(a)(4).
15 31 CFR 1020.220(a)(5); 1023.220(a)(5);
1024.220(a)(5); and 1026.220(a)(5).
16 31 CFR 1020.220(a)(6); 1023.220(a)(6);
1024.220(a)(6); and 1026.220(a)(6).
17 Public Law 104–13, 44 U.S.C. 3506(c)(2)(A).
18 The CIP regulatory requirements are currently
covered under the following OMB control numbers:
1506–0022 (31 CFR 1026.220—Customer
identification programs for futures commission
merchants and introducing brokers); 1506–0026 (31
CFR 1020.220—Customer identification programs
for banks); 1506–0033 (31 CFR 1024.220—Customer
identification programs for mutual funds); and
1506–0034 (31 CFR 1023.220—Customer
identification programs for brokers-dealers).
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Federal Register / Vol. 89, No. 119 / Thursday, June 20, 2024 / Notices
Frequency: As required.
Estimated Number of Respondents:
16,232 financial institutions.19
Estimated Recordkeeping Burden:
In Part 1 of this notice, FinCEN
describes the distribution of the
estimated number of covered financial
institutions, by type, and the estimated
number of new accounts opened per
year, by type of covered financial
institution. In addition, Part 1 describes
the primary characteristics of covered
financial institutions’ CIP requirements.
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
associated with these information
collections.20
Part 1. Distribution of the Financial
Institutions and New Accounts Covered
by This Notice
The distribution of financial
institutions and new accounts opened
annually that are covered by this notice,
by type of financial institution, is as
follows:
TABLE 1—DISTRIBUTION OF FINANCIAL INSTITUTIONS AND NEW ACCOUNTS COVERED BY THIS NOTICE, BY TYPE OF
FINANCIAL INSTITUTION
Number of
financial institutions
Type of financial institution
Banks with a Federal functional regulator (FFR) ............................................................
Banks lacking an FFR .....................................................................................................
Brokers-dealers ................................................................................................................
Mutual funds ....................................................................................................................
Futures commission merchants and introducing brokers in commodities ......................
a 9,800
Total ..........................................................................................................................
Number of new accounts
opened annually
f 9,305,000
b 600
g 315,000
c 3,478
h 28,000,000
d 1,400
i 16,150,000
e 954
j 557,000
16,232
54,327,000
a This
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estimate is based on call report data, as publicly available for download at the end of June 2023, from the Federal Financial Institutions
Examination Council (FFIEC) for certain types of banks, savings associations, thrifts, trust companies (https://cdr.ffiec.gov/public/pws/download
bulkdata.aspx.) and from the NCUA for credit unions (https://www.ncua.gov/analysis/credit-union-corporate-call-report-data).
b This estimate of active entries 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://federalreserve.gov/paymentsystems/master-account-and services-database-exisiting-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.
c This estimate is based on a December 2023 file downloaded from data maintained by the U.S. Securities and Exchange Commission’s
(SEC). SEC, Company Information About Active Broker-Dealers available at https://www.sec.gov/help/foiadocsbdfoia (accessed on Feb. 28,
2024).
d This estimate is based on the number of active mutual funds as of year-end 2023, which is based on Form N–CEN filings received by the
SEC through January 20, 2023, as represented by data downloaded from SEC Open Data. SEC, Open Data, available at https://www.sec.gov/
dera/data/form-ncen-data-sets (accessed Feb. 29, 2024).
e This estimate is based on the number of futures commissions merchants as of December 31, 2023, and was obtained from data available
through the Commodity Futures Trading Commission (CFTC). CFTC, Financial Data for Futures Commission Merchants, available at https://
www.cftc.gov/MarketReports/financialfcmdata/index.htm (accessed Mar. 1, 2024). To prevent double counting in burden estimates, 35 covered financial institutions that are also affected entities as broker-dealers were removed from the count; the count of introducing brokers in commodities
as of year-end 2023 was provided by the CFTC.
f This estimate represents a lower bound of potential new accounts opened annually because it is based on limited available data. The public
is invited to provide data, studies, or estimates that might revise this value. The current estimate is informed by consultation with staff from the
National Credit Union Association (NCUA), which estimated that there are approximately 5,300,000 new accounts opened annually by credit
unions with an FFR (based on the ten-year annual average growth rate in credit union membership computed using year end data from 2014 to
2023, as reported by Federally insured credit unions (FICUs)). It also includes an estimate of 4,005,000 new accounts opened annually by banks
with an FFR, based on the observed number of bank-on accounts opened in calendar year 2022, see Bank On National Data Hub: Findings from
2022 √ St. Louis Fed (stlouisfed.org). This estimate does not include a number of traditional bank accounts opened annually, but as FinCEN assumes that such a value is strictly non-zero, it requests public comment to revise.
g This estimate was calculated by applying an estimated growth rate (3.8%) provided by the NCUA to the average new members per institute
derived from 2023-year end data on credit unions lacking an FFR (13,806 new members/accounts opened annually). Applied to all banks lacking
an FFR in the category (per financial institution new members annually: ((1,353,017/98) × 0.038) equals approximately 315,000 total new members annually per: 600 banks lacking an FFR multiplied by approximately 525 new members per financial institution.
h According to the SEC, there were approximately 28,000,000 new accounts opened by broker or dealers in securities in 2023, based on forms
filed with the SEC.
i This estimate was derived, in consultation with SEC staff, using publicly available information from the Investment Company Institute (ICI)
Fact Book available at: https://www.ici.org/fact-book). FinCEN notes that this estimate of new accounts per year may be overinclusive because
the ICI data utilized covers all U.S. registered funds, and not only mutual funds and exchange-traded funds. Additionally, because this estimate
reflects certain assumptions about the extent to which individuals who already invest in registered funds may open new accounts with different
funds, it may approximate with greater imprecision the underlying number of unique new customers that are onboarded each year.
j This estimate was formed in consultation with CFTC staff input based on data from the end of calendar year 2023. Because this estimate pertains to the number of new accounts opened in a one-year period, which may be numerically distinct from the number of customers (who open
such accounts), it can be treated as a potential upper bound on the number of instances that would incur a distinct CIP compliance burden.
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.
For all covered financial institutions,
FinCEN continues estimating the
incremental annual PRA recordkeeping
burden associated with maintaining and
updating the CIP (‘‘maintenance’’) at ten
hours per financial institution. This
estimate covers: (a) an average of
approximately nine hours per financial
19 Table 1 below sets forth a distribution of the
types of financial institutions covered by this
notice.
20 See FinCEN, Agency Information Collections
Activities; Proposed Renewal; Comment Request:
Renewal Without Change of the Customer
Identification Program Regulatory Requirements for
Certain Financial Institutions, 85 FR 49425 (Aug.
13, 2020).
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Part 2. Annual PRA Burden and Cost
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Federal Register / Vol. 89, No. 119 / Thursday, June 20, 2024 / Notices
institution per year associated with the
burden of updating the records
necessary to demonstrate compliance
with CIP requirements to take into
consideration any regulatory changes
and any modifications required as a
result of a financial institution making
changes to the type of accounts
maintained, the methods used to open
accounts, and the types of documentary
or non-documentary methods for
verifying identifying information the
financial institution intends to use; and
(b) an average of approximately one
hour per financial institution associated
with the burden of presenting the
updated CIP to the appropriate level of
management within the financial
institution and obtaining approval.
In addition, FinCEN continues
estimating the incremental annual PRA
recordkeeping burden associated with
providing customers with notification of
the CIP (‘‘notification’’) at one hour per
financial institution.
FinCEN also continues estimating the
incremental annual PRA recordkeeping
burden associated with obtaining and
verifying a customer’s identity (i.e.,
verification and recordkeeping
requirements, and consulting
government lists) (‘‘implementation’’) at
two minutes per new account opened.
Under these assumptions, FinCEN’s
estimate of the annual incremental PRA
burden is 1,989,452 hours, as detailed in
tables 2 and 3.21
TABLE 2—INCREMENTAL ANNUAL BURDEN ASSOCIATED WITH UPDATING AND MAINTAINING THE CIP AND CUSTOMER
NOTIFICATION FOR ALL COVERED FINANCIAL INSTITUTIONS
Number of
financial
institutions 22
Type of financial institution
Time per financial institution
(hours) (hour)
Maintenance
Burden hours per step
Maintenance
Notification
Notification
Total
burden
hours
Banks with an FFR ..........................................
Banks lacking an FFR .....................................
Brokers-dealers ................................................
Mutual funds ....................................................
Futures commission merchants and introducing brokers in commodities ....................
9,800
600
3,478
1,400
10
10
10
10
1
1
1
1
98,000
6,000
34,780
14,000
9,800
600
3,478
1,400
107,800
6,600
38,258
15,400
954
10
1
9,540
954
10,494
Totals ........................................................
16,232
......................
........................
162,320
16,232
178,552
TABLE 3—INCREMENTAL ANNUAL BURDEN ASSOCIATED WITH IMPLEMENTING THE IDENTITY VERIFICATION,
RECORDKEEPING, AND CONSULTING GOVERNMENT LISTS REQUIREMENTS FOR ALL COVERED FINANCIAL INSTITUTIONS
New
accounts
opened per
year
Number of
financial
institutions 23
Type of financial institution
Time per
new account
(minutes)
Total burden
in minutes
Total burden
converted
to hours
Banks with an FFR ........................................................
Banks lacking an FFR ...................................................
Brokers-dealers ..............................................................
Mutual funds ..................................................................
Futures commission merchants and introducing brokers in commodities ...................................................
9,800
600
3,478
1,400
9,305,000
315,000
28,000,000
16,150,000
2
2
2
2
18,610,000
630,000
56,000,000
32,300,000
310,167
10,500
933,333
538,333
954
557,000
2
1,114,000
18,567
Totals ......................................................................
16,232
54,327,000
........................
108,654,000
1,180,900
FinCEN is utilizing the same fully
loaded composite hourly wage rate of
$106.30 utilized in other OMB control
number renewals and notices of
proposed rulemakings (NPRMs)
currently opened to public review and
comment.24
The total estimated cost of the annual
PRA burden is $211,478,747.60, as
reflected in table 4 below:
TABLE 4—TOTAL COST OF ANNUAL PRA BURDEN
Hourly
burden
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Steps
Maintaining and updating the CIP ...........................................................................................................
Notifying customers of CIP requirements ................................................................................................
Implementing the CIP (identifying and verifying customer information, maintaining records, and consulting government lists) ......................................................................................................................
21 The total estimate of the annual PRA burden is
the summation of the total hourly burden of CIP
maintenance (162,320), notification (16,232) and
VerDate Sep<11>2014
17:08 Jun 18, 2024
Jkt 262001
implementation (1,810,900) as set out in table 2 and
3, for a total of 1,989,452 hours.
22 As set out in table 1 above.
23 As set out in table 1 above.
PO 00000
Frm 00074
Fmt 4703
Sfmt 4703
Hourly
cost
Total cost
162,320
16,232
$106.30
106.30
$17,254,616.00
1,725,461.60
1,810,900
106.30
192,498,670.00
24 See, e.g., FinCEN and SEC, NPRM Customer
Identification Programs for Registered Investment
Advisers and Exempt Reporting Advisers, 89 FR
44571 (May 21, 2024).
E:\FR\FM\20JNN1.SGM
20JNN1
51944
Federal Register / Vol. 89, No. 119 / Thursday, June 20, 2024 / Notices
TABLE 4—TOTAL COST OF ANNUAL PRA BURDEN—Continued
Hourly
burden
Hourly
cost
..................
..............
Steps
Total cost ..........................................................................................................................................
khammond on DSKJM1Z7X2PROD with NOTICES
Estimated Recordkeeping Burden: The
average estimated annual PRA burden,
measured in time per respondent is as
follows:
a. Ten hours annually per financial
institution to maintain and update the
CIP.
b. One hour annually per financial
institution to provide customers with
notification of the CIP.
c. Two minutes per account opened
by a financial institution to obtain and
verify a customer’s identity (i.e.,
verification and recordkeeping
requirements, and consulting
government lists).
Estimated Number of Respondents:
16,232, as set out in table 1.
Estimated Total Annual Responses:
a. 16,232 updated and board approved
CIPs annually, as set out in table 2.
b. 16,232 notifications to customers of
CIP requirements, as set out in table 2.
c. 54,327,000 new account
relationships opened for which covered
financial institutions obtained and
verified customer identification, as set
out in table 3.
Estimated Total Annual
Recordkeeping Burden: The estimated
total annual PRA burden is 178,552
hours, as set out in table 2, plus
1,810,900 hours, as set out in table 3, for
a total of 1,989,452 hours.
Estimated Total Annual
Recordkeeping Cost: The estimated total
annual PRA cost is $211,478,747.60, as
set out in table 4.
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.
VerDate Sep<11>2014
17:08 Jun 18, 2024
Jkt 262001
Request for Comments: Comments
submitted in response to this notice will
be summarized and/or included in the
request for OMB approval. All
comments will become a matter of
public record. Comments are invited on:
(i) whether the collection of information
is necessary for the proper performance
of the functions of the agency, including
whether the information shall have
practical utility; (ii) the accuracy of the
agency’s estimate of the burden of the
collection of 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. 2024–13590 Filed 6–18–24; 8:45 am]
BILLING CODE 4810–02–P
Total cost
211,478,747.60
of four entities, four individuals, and
two vessels that have been placed on
OFAC’s Specially Designated Nationals
and Blocked Persons List (SDN List)
based on OFAC’s determination that one
or more applicable legal criteria were
satisfied. All property and interests in
property subject to U.S. jurisdiction of
these persons and vessels are blocked,
and U.S. persons are generally
prohibited from engaging in transactions
with them. OFAC is additionally
updating the entries on the SDN List for
two additional vessels. OFAC is
removing one aircraft from the SDN List.
See SUPPLEMENTARY INFORMATION
section for effective date(s).
DATES:
FOR FURTHER INFORMATION CONTACT:
OFAC: Bradley Smith, Director, tel.:
202–622–2490; Associate Director for
Global Targeting, tel.: 202–622–2420;
Assistant Director for Licensing, tel.:
202–622–2480; Assistant Director for
Regulatory Affairs, tel.: 202–622–4855;
or Assistant Director for Compliance,
tel.: 202–622–2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Notice of OFAC Sanctions Actions
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing the names
SUMMARY:
PO 00000
Frm 00075
Fmt 4703
Sfmt 4703
The SDN List and additional
information concerning OFAC sanctions
programs are available on OFAC’s
website (https://www.treasury.gov/ofac).
Notice of OFAC Action(s)
On June 10, 2024, OFAC determined
that the property and interests in
property subject to U.S. jurisdiction of
the following persons and vessels are
blocked under the relevant sanctions
authority listed below.
E:\FR\FM\20JNN1.SGM
20JNN1
]]>Agencies
[Federal Register Volume 89, Number 119 (Thursday, June 20, 2024)]
[Notices]
[Pages 51940-51944]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13590]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of the Customer Identification
Program Regulatory Requirements 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 proposed renewal,
without change, of existing information collection requirements found
in Bank Secrecy Act regulations that require banks, savings
associations, credit unions, certain non-federally regulated banks and
trust companies (collectively hereinafter ``banks''), brokers-dealers,
mutual funds, futures commission merchants, and introducing brokers in
commodities, to develop and implement customer identification programs
designed to allow the financial institutions to form a reasonable
belief that they know the true identity of each of their customers.
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
August 19, 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-2023-0015 and Office of Management and Budget (OMB) control
numbers 1506-0022, 1506-0026, 1506-0033, and 1506-0034.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket
[[Page 51941]]
Number FINCEN-2023-0015 and OMB control numbers 1506-0022, 1506-0026,
1506-0033, and 1506-0034.
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 Anti-Money Laundering act of 2020 (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, Public Law 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, Public Law 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(l) requires the Secretary to issue regulations
prescribing minimum standards for customer identification programs
(CIPs) for financial institutions.\5\ Regulations implementing section
5318(l) are as follows: (i) banks (31 CFR 1020.220); (ii) brokers-
dealers (31 CFR 1023.220); \6\ (iii) mutual funds (31 CFR 1024.220);
\7\ and (iv) futures commission merchants and introducing brokers in
commodities (31 CFR 1026.220).\8\
---------------------------------------------------------------------------
\5\ Section 5318(l)(2) prescribes that the regulations, at a
minimum, require financial institutions to implement reasonable
procedures for: (1) verifying the identity of any person seeking to
open an account, to the extent reasonable and practicable; (2)
maintaining records of the information used to verify the person's
identity, including name, address, and other identifying
information; and (3) determining whether the person appears on any
lists of known or suspected terrorists or terrorist organizations
provided to the financial institution by any government agency.
Section 5318(l)(3) further directs that the regulations take into
consideration the types of accounts maintained by financial
institutions, the methods of opening accounts, and the types of
identifying information available.
\6\ ``Broker-dealer'' means a person registered or required to
be registered as a broker or dealer with the Commission under the
Securities Exchange Act of 1934 (15 U.S.C. 77a et seq.), except
persons who register pursuant to 15 U.S.C. 78o(b)(11). 31 CFR
1023.100(b).
\7\ ``Mutual fund'' means an ``investment company'' (as the term
is defined in section 3 of the Investment Company Act (15 U.S.C.
80a-3)) that is an ``open-end company'' (as that term is defined in
section 5 of the Investment Company Act (15 U.S.C. 80a-5)) that is
registered or is required to register with the Commission under
section 8 of the Investment Company Act (15 U.S.C. 80a-8). 31 CFR
1010.100(gg).
\8\ ``Futures commissions merchants'' means any person
registered or required to be registered as a futures commission
merchant with the Commodity Futures Trading Commission (``CFTC'')
under the Commodity Exchange Act (7 U.S.C. 1 et seq.), except
persons who register pursuant to Section 4f(a)(2) of the Commodity
Exchange Act (7 U.S.C. 6f(a)(2)). 31 CFR 1026.100(f). ``Introducing
broker'' means any person registered or required to be registered as
an introducing broker with the CFTC under the Commodity Exchange Act
(7 U.S.C. 1 et seq.), except persons who register pursuant to
Section 4f(a)(2) of the Commodity Exchange Act (7 U.S.C. 6f(a)(2)).
31 CFR 1026.100(g).
---------------------------------------------------------------------------
All covered financial institutions \9\ are required to implement a
CIP appropriate for its size and type of business. The CIP must include
at a minimum the following five requirements:
---------------------------------------------------------------------------
\9\ The term ``covered financial institution'' applies to all
financial institutions with a CIP regulatory requirement, namely
banks, brokers-dealers, mutual funds, futures commission merchants,
and introducing brokers in commodities.
---------------------------------------------------------------------------
(1) Written CIP appropriate for the financial institution's size
and type of business (if a financial institution is required to have an
AML compliance program,\10\ the CIP must be part of the written AML
compliance program); \11\
---------------------------------------------------------------------------
\10\ 31 CFR 1020.210; 1023.210; 1024.210; and 1026.210.
\11\ 31 CFR 1020.220(a)(1); 1023.220(a)(1); 1024.220(a)(1); and
1026.220(a)(1).
---------------------------------------------------------------------------
(2) Identity verification procedures (risk-based procedures for
verifying the identity of each customer to the extent reasonable and
practicable that enable the financial institution to form a reasonable
belief that it knows the true identity of the customer); \12\
---------------------------------------------------------------------------
\12\ 31 CFR 1020.220(a)(2); 1023.220(a)(2); 1024.220(a)(2); and
1026.220(a)(2).
---------------------------------------------------------------------------
(3) Recordkeeping (procedures for making and maintaining a record
of all information obtained under the CIP requirements); \13\
---------------------------------------------------------------------------
\13\ 31 CFR 1020.220(a)(3); 1023.220(a)(3); 1024.220(a)(3); and
1026.220(a)(3).
---------------------------------------------------------------------------
(4) Consultation of government lists (procedures to determine
whether the customer appears on any list of known or suspected
terrorists or terrorist organizations issued by any Federal government
agency and designated as such by Treasury in consultation with the
Federal functional regulators); \14\ and
---------------------------------------------------------------------------
\14\ 31 CFR 1020.220(a)(4); 1023.220(a)(4); 1024.220(a)(4); and
1026.220(a)(4).
---------------------------------------------------------------------------
(5) Customer notice (procedures for providing bank customers with
adequate notice that the bank is requesting information to verify their
identities).\15\
---------------------------------------------------------------------------
\15\ 31 CFR 1020.220(a)(5); 1023.220(a)(5); 1024.220(a)(5); and
1026.220(a)(5).
---------------------------------------------------------------------------
The CIP may also include procedures specifying when a financial
institution may rely on another financial institution to perform any of
the financial institution's CIP procedures, provided certain conditions
are met.\16\
---------------------------------------------------------------------------
\16\ 31 CFR 1020.220(a)(6); 1023.220(a)(6); 1024.220(a)(6); and
1026.220(a)(6).
---------------------------------------------------------------------------
II. Paperwork Reduction Act of 1995 17
---------------------------------------------------------------------------
\17\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
---------------------------------------------------------------------------
Title: Customer identification programs (CIPs) for certain
financial institutions (31 CFR 1020.220, 1023.220, 1024.220, and
1026.220).
OMB Control Numbers: 1506-0022, 1506-0026, 1506-0033, and 1506-
0034.\18\
---------------------------------------------------------------------------
\18\ The CIP regulatory requirements are currently covered under
the following OMB control numbers: 1506-0022 (31 CFR 1026.220--
Customer identification programs for futures commission merchants
and introducing brokers); 1506-0026 (31 CFR 1020.220--Customer
identification programs for banks); 1506-0033 (31 CFR 1024.220--
Customer identification programs for mutual funds); and 1506-0034
(31 CFR 1023.220--Customer identification programs for brokers-
dealers).
---------------------------------------------------------------------------
Form Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
numbers for the CIP regulatory requirements for covered 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.
[[Page 51942]]
Frequency: As required.
Estimated Number of Respondents: 16,232 financial institutions.\19\
---------------------------------------------------------------------------
\19\ Table 1 below sets forth a distribution of the types of
financial institutions covered by this notice.
---------------------------------------------------------------------------
Estimated Recordkeeping Burden:
In Part 1 of this notice, FinCEN describes the distribution of the
estimated number of covered financial institutions, by type, and the
estimated number of new accounts opened per year, by type of covered
financial institution. In addition, Part 1 describes the primary
characteristics of covered financial institutions' CIP requirements. 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 associated with these information collections.\20\
---------------------------------------------------------------------------
\20\ See FinCEN, Agency Information Collections Activities;
Proposed Renewal; Comment Request: Renewal Without Change of the
Customer Identification Program Regulatory Requirements for Certain
Financial Institutions, 85 FR 49425 (Aug. 13, 2020).
---------------------------------------------------------------------------
Part 1. Distribution of the Financial Institutions and New Accounts
Covered by This Notice
The distribution of financial institutions and new accounts opened
annually that are covered by this notice, by type of financial
institution, is as follows:
Table 1--Distribution of Financial Institutions and New Accounts Covered by This Notice, by Type of Financial
Institution
----------------------------------------------------------------------------------------------------------------
Number of financial Number of new accounts
Type of financial institution institutions opened annually
----------------------------------------------------------------------------------------------------------------
Banks with a Federal functional regulator (FFR)........... \a\ 9,800 \f\ 9,305,000
Banks lacking an FFR...................................... \b\ 600 \g\ 315,000
Brokers-dealers........................................... \c\ 3,478 \h\ 28,000,000
Mutual funds.............................................. \d\ 1,400 \i\ 16,150,000
Futures commission merchants and introducing brokers in \e\ 954 \j\ 557,000
commodities..............................................
-----------------------------------------------------
Total................................................. 16,232 54,327,000
----------------------------------------------------------------------------------------------------------------
\a\ This estimate is based on call report data, as publicly available for download at the end of June 2023, from
the Federal Financial Institutions Examination Council (FFIEC) for certain types of banks, savings
associations, thrifts, trust companies (https://cdr.ffiec.gov/public/pws/downloadbulkdata.aspx.) and from the
NCUA for credit unions (https://www.ncua.gov/analysis/credit-union-corporate-call-report-data).
\b\ This estimate of active entries 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://federalreserve.gov/paymentsystems/master-account-and services-database-exisiting-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.
\c\ This estimate is based on a December 2023 file downloaded from data maintained by the U.S. Securities and
Exchange Commission's (SEC). SEC, Company Information About Active Broker-Dealers available at https://www.sec.gov/help/foiadocsbdfoia (accessed on Feb. 28, 2024).
\d\ This estimate is based on the number of active mutual funds as of year-end 2023, which is based on Form N-
CEN filings received by the SEC through January 20, 2023, as represented by data downloaded from SEC Open
Data. SEC, Open Data, available at https://www.sec.gov/dera/data/form-ncen-data-sets (accessed Feb. 29, 2024).
\e\ This estimate is based on the number of futures commissions merchants as of December 31, 2023, and was
obtained from data available through the Commodity Futures Trading Commission (CFTC). CFTC, Financial Data for
Futures Commission Merchants, available at https://www.cftc.gov/MarketReports/financialfcmdata/index.htm
(accessed Mar. 1, 2024). To prevent double counting in burden estimates, 35 covered financial institutions
that are also affected entities as broker-dealers were removed from the count; the count of introducing
brokers in commodities as of year-end 2023 was provided by the CFTC.
\f\ This estimate represents a lower bound of potential new accounts opened annually because it is based on
limited available data. The public is invited to provide data, studies, or estimates that might revise this
value. The current estimate is informed by consultation with staff from the National Credit Union Association
(NCUA), which estimated that there are approximately 5,300,000 new accounts opened annually by credit unions
with an FFR (based on the ten-year annual average growth rate in credit union membership computed using year
end data from 2014 to 2023, as reported by Federally insured credit unions (FICUs)). It also includes an
estimate of 4,005,000 new accounts opened annually by banks with an FFR, based on the observed number of bank-
on accounts opened in calendar year 2022, see Bank On National Data Hub: Findings from 2022 St.
Louis Fed (stlouisfed.org). This estimate does not include a number of traditional bank accounts opened
annually, but as FinCEN assumes that such a value is strictly non-zero, it requests public comment to revise.
\g\ This estimate was calculated by applying an estimated growth rate (3.8%) provided by the NCUA to the average
new members per institute derived from 2023-year end data on credit unions lacking an FFR (13,806 new members/
accounts opened annually). Applied to all banks lacking an FFR in the category (per financial institution new
members annually: ((1,353,017/98) x 0.038) equals approximately 315,000 total new members annually per: 600
banks lacking an FFR multiplied by approximately 525 new members per financial institution.
\h\ According to the SEC, there were approximately 28,000,000 new accounts opened by broker or dealers in
securities in 2023, based on forms filed with the SEC.
\i\ This estimate was derived, in consultation with SEC staff, using publicly available information from the
Investment Company Institute (ICI) Fact Book available at: https://www.ici.org/fact-book). FinCEN notes that
this estimate of new accounts per year may be overinclusive because the ICI data utilized covers all U.S.
registered funds, and not only mutual funds and exchange-traded funds. Additionally, because this estimate
reflects certain assumptions about the extent to which individuals who already invest in registered funds may
open new accounts with different funds, it may approximate with greater imprecision the underlying number of
unique new customers that are onboarded each year.
\j\ This estimate was formed in consultation with CFTC staff input based on data from the end of calendar year
2023. Because this estimate pertains to the number of new accounts opened in a one-year period, which may be
numerically distinct from the number of customers (who open such accounts), it can be treated as a potential
upper bound on the number of instances that would incur a distinct CIP compliance burden.
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.
Part 2. Annual PRA Burden and Cost
For all covered financial institutions, FinCEN continues estimating
the incremental annual PRA recordkeeping burden associated with
maintaining and updating the CIP (``maintenance'') at ten hours per
financial institution. This estimate covers: (a) an average of
approximately nine hours per financial
[[Page 51943]]
institution per year associated with the burden of updating the records
necessary to demonstrate compliance with CIP requirements to take into
consideration any regulatory changes and any modifications required as
a result of a financial institution making changes to the type of
accounts maintained, the methods used to open accounts, and the types
of documentary or non-documentary methods for verifying identifying
information the financial institution intends to use; and (b) an
average of approximately one hour per financial institution associated
with the burden of presenting the updated CIP to the appropriate level
of management within the financial institution and obtaining approval.
In addition, FinCEN continues estimating the incremental annual PRA
recordkeeping burden associated with providing customers with
notification of the CIP (``notification'') at one hour per financial
institution.
FinCEN also continues estimating the incremental annual PRA
recordkeeping burden associated with obtaining and verifying a
customer's identity (i.e., verification and recordkeeping requirements,
and consulting government lists) (``implementation'') at two minutes
per new account opened.
Under these assumptions, FinCEN's estimate of the annual
incremental PRA burden is 1,989,452 hours, as detailed in tables 2 and
3.\21\
---------------------------------------------------------------------------
\21\ The total estimate of the annual PRA burden is the
summation of the total hourly burden of CIP maintenance (162,320),
notification (16,232) and implementation (1,810,900) as set out in
table 2 and 3, for a total of 1,989,452 hours.
Table 2--Incremental Annual Burden Associated With Updating and Maintaining the CIP and Customer Notification for All Covered Financial Institutions
--------------------------------------------------------------------------------------------------------------------------------------------------------
Time per financial Burden hours per step
Number of institution (hours) (hour) ------------------------------ Total
Type of financial institution financial ------------------------------ burden
institutions \22\ Maintenance Notification Maintenance Notification hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Banks with an FFR.............................................. 9,800 10 1 98,000 9,800 107,800
Banks lacking an FFR........................................... 600 10 1 6,000 600 6,600
Brokers-dealers................................................ 3,478 10 1 34,780 3,478 38,258
Mutual funds................................................... 1,400 10 1 14,000 1,400 15,400
Futures commission merchants and introducing brokers in 954 10 1 9,540 954 10,494
commodities...................................................
----------------------------------------------------------------------------------------
Totals..................................................... 16,232 ............ .............. 162,320 16,232 178,552
--------------------------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
\22\ As set out in table 1 above.
Table 3--Incremental Annual Burden Associated With Implementing the Identity Verification, Recordkeeping, and
Consulting Government Lists Requirements for All Covered Financial Institutions
----------------------------------------------------------------------------------------------------------------
Number of New accounts Time per new Total burden
Type of financial institution financial opened per account Total burden converted to
institutions \23\ year (minutes) in minutes hours
----------------------------------------------------------------------------------------------------------------
Banks with an FFR............ 9,800 9,305,000 2 18,610,000 310,167
Banks lacking an FFR......... 600 315,000 2 630,000 10,500
Brokers-dealers.............. 3,478 28,000,000 2 56,000,000 933,333
Mutual funds................. 1,400 16,150,000 2 32,300,000 538,333
Futures commission merchants 954 557,000 2 1,114,000 18,567
and introducing brokers in
commodities.................
----------------------------------------------------------------------------------
Totals................... 16,232 54,327,000 .............. 108,654,000 1,180,900
----------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------
\23\ As set out in table 1 above.
---------------------------------------------------------------------------
FinCEN is utilizing the same fully loaded composite hourly wage
rate of $106.30 utilized in other OMB control number renewals and
notices of proposed rulemakings (NPRMs) currently opened to public
review and comment.\24\
---------------------------------------------------------------------------
\24\ See, e.g., FinCEN and SEC, NPRM Customer Identification
Programs for Registered Investment Advisers and Exempt Reporting
Advisers, 89 FR 44571 (May 21, 2024).
---------------------------------------------------------------------------
The total estimated cost of the annual PRA burden is
$211,478,747.60, as reflected in table 4 below:
Table 4--Total Cost of Annual PRA Burden
------------------------------------------------------------------------
Hourly Hourly
Steps burden cost Total cost
------------------------------------------------------------------------
Maintaining and updating the CIP 162,320 $106.30 $17,254,616.00
Notifying customers of CIP 16,232 106.30 1,725,461.60
requirements...................
Implementing the CIP 1,810,900 106.30 192,498,670.00
(identifying and verifying
customer information,
maintaining records, and
consulting government lists)...
---------------------------------------
[[Page 51944]]
Total cost.................. .......... ........ 211,478,747.60
------------------------------------------------------------------------
Estimated Recordkeeping Burden: The average estimated annual PRA
burden, measured in time per respondent is as follows:
a. Ten hours annually per financial institution to maintain and
update the CIP.
b. One hour annually per financial institution to provide customers
with notification of the CIP.
c. Two minutes per account opened by a financial institution to
obtain and verify a customer's identity (i.e., verification and
recordkeeping requirements, and consulting government lists).
Estimated Number of Respondents: 16,232, as set out in table 1.
Estimated Total Annual Responses:
a. 16,232 updated and board approved CIPs annually, as set out in
table 2.
b. 16,232 notifications to customers of CIP requirements, as set
out in table 2.
c. 54,327,000 new account relationships opened for which covered
financial institutions obtained and verified customer identification,
as set out in table 3.
Estimated Total Annual Recordkeeping Burden: The estimated total
annual PRA burden is 178,552 hours, as set out in table 2, plus
1,810,900 hours, as set out in table 3, for a total of 1,989,452 hours.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is $211,478,747.60, as set out in table 4.
An Agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid OMB control number. Records required to be
retained under the BSA must be retained for five years.
Request for Comments: Comments submitted in response to this notice
will be summarized and/or included in the request for OMB approval. All
comments will become a matter of public record. Comments are invited
on: (i) whether the collection of information is necessary for the
proper performance of the functions of the agency, including whether
the information shall have practical utility; (ii) the accuracy of the
agency's estimate of the burden of the collection of 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. 2024-13590 Filed 6-18-24; 8:45 am]
BILLING CODE 4810-02-P
