Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Transactions of Exempt Persons Regulations, and FinCEN Form 110, Designation of Exempt Person Report, 65012-65015 [2024-17605]
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Federal Register / Vol. 89, No. 153 / Thursday, August 8, 2024 / Notices
Affected Public: Businesses or other
for profit.
Estimated Number of Respondents:
66.
Estimated Number of Responses: 66.
Estimated Hours per Response: .5–1
hour.
Annual Estimated Total Annual
Burden Hours: 49.
Frequency of Response: Once
Annually.
(Authority: The Paperwork Reduction Act of
1995; 44 U.S.C. chapter 35, as amended; and
49 CFR 1.49.)
By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2024–17499 Filed 8–7–24; 8:45 am]
BILLING CODE 4910–81–P
DEPARTMENT OF TRANSPORTATION
Pipeline and Hazardous Materials
Safety Administration
[Docket No. PHMSA–2024–0117; Notice No.
2024–11]
Hazardous Materials: Notice of Public
Meeting on the Transportation of
Hazardous Materials by Unmanned
Aircraft Systems
Pipeline and Hazardous
Materials Safety Administration
(PHMSA), Office of Hazardous Materials
Safety, and the Federal Aviation
Administration (FAA), Security and
Hazardous Materials Safety, Department
of Transportation (DOT).
ACTION: Notice of public meeting.
AGENCY:
This notice announces that
PHMSA and FAA will host a public
meeting to solicit input on
implementing provisions in the FAA
Reauthorization Act of 2024. This
section relates to the transportation of
hazardous materials by unmanned
aircraft systems (UAS).
DATES: This meeting will take place on
August 22, 2024, from 1 p.m. to 4 p.m.,
Eastern Time.
ADDRESSES: The public meeting will be
a web conference. Specific information
for this meeting will be posted on the
PHMSA website under ‘‘Upcoming
Events’’ at https://www.phmsa.dot.gov/
standards-rulemaking/hazmat/
hazardous-materials-standards-andrulemaking-overview. This information
will include the public meeting date,
time, conference dial-in number, and
details for registration. You must
register to attend the meeting, please
register here: https://
events.gcc.teams.microsoft.com/event/
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SUMMARY:
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FOR FURTHER INFORMATION CONTACT:
Steven Andrews, 202–366–8553,
Standards and Rulemaking Division,
Pipeline and Hazardous Materials Safety
Administration, U.S. Department of
Transportation, 1200 New Jersey
Avenue SE, Washington, DC 20590–
0001 or
Lori Ambers, 405–954–0088, Office of
Hazardous Materials Safety, Federal
Aviation Administration, U.S.
Department of Transportation, 800
Independence Avenue SW, Washington,
DC 20591–0001.
SUPPLEMENTARY INFORMATION:
I. Background
On May 16, 2024, President Biden
signed the Federal Aviation
Administration (FAA) Reauthorization
Act of 2024 1 into law. Section 933 of
the FAA Reauthorization Act of 2024,
titled ‘‘Special Authority for Transport
of Hazardous Materials by Commercial
Package Delivery Unmanned Aircraft
Systems’’ directs the Secretary of
Transportation to use a risk-based
approach to establish the operational
requirements, standards, or special
permits necessary to approve or
authorize an air carrier to transport
hazardous materials by UAS providing
common carriage under 14 Code of
Federal Regulations (CFR) part 135, or
under successor authorities, as
applicable, based on the weight,
amount, and type of hazardous material
being transported and the characteristics
of the operations subject to such
requirements, standards, or special
purposes (see § 933, subsection (a)).
Section 933, subsection (e)(1) requires
the Secretary to hold a public meeting
within 180 days of the enactment of the
FAA Reauthorization Act of 2024 to
obtain input on the changes necessary to
implement § 933.
This joint public meeting, hosted by
PHMSA and the FAA, addresses the
statutory requirement in § 933,
subsection (e)(1) of the FAA
Reauthorization Act. PHMSA and the
FAA encourage participation in this
public meeting from stakeholders and
the public to help advance the
development of policy for UAS delivery
of packages containing hazardous
materials.
II. Agenda
At this meeting, PHMSA and the FAA
will provide a brief background
discussion on § 933 of the FAA
Reauthorization Act of 2024. Following
1 https://www.congress.gov/bill/118th-congress/
house-bill/3935/text.
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this introduction, PHMSA and the FAA
will solicit input from the public on
actions necessary to implement § 933.
III. Public Participation
The meeting will be open to the
public; however, any member of the
public who wishes to attend must RSVP
to obtain login instructions and access
using the following: https://
events.gcc.teams.microsoft.com/event/
64a51604-bd84-4423-aae927e3955cd18c@c4cd245b-44f0-4395a1aa-3848d258f78b. If you plan to
present or provide input at this meeting,
please file a written copy of your
remarks and provide a copy of any
visual aids to Mr. Steven Andrews
(steven.andrews@dot.gov) and Ms. Lori
Ambers (laura.l.ambers@faa.gov) by
August 19, 2024.
PHMSA is committed to providing
equal access for all citizens and
ensuring that information is available in
appropriate alternative formats to meet
the requirements of persons who have a
disability. If you require an alternative
version of files provided or alternative
accommodations, please contact
PHMSA-Accessibility@dot.gov by
August 15, 2024.
Signed in Washington, DC, on July 31,
2024.
William S. Schoonover,
Associate Administrator for Hazardous
Materials Safety, Pipeline and Hazardous
Materials Safety Administration.
[FR Doc. 2024–17291 Filed 8–7–24; 8:45 am]
BILLING CODE 4910–60–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request; Renewal Without
Change of Transactions of Exempt
Persons Regulations, and FinCEN
Form 110, Designation of Exempt
Person Report
Financial Crimes Enforcement
Network (FinCEN), Treasury.
ACTION: Notice and request for
comments.
AGENCY:
As part of its continuing effort
to reduce paperwork and respondent
burden, FinCEN invites comments on
the proposed renewal, without change,
of existing information collection
requirements found in Bank Secrecy Act
regulations that require a bank to file a
FinCEN Form 110, Designation of
Exempt Person, to designate eligible
customers as exempt persons, such that
a bank is not required to file a report
SUMMARY:
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Federal Register / Vol. 89, No. 153 / Thursday, August 8, 2024 / Notices
with respect to any transaction in
currency over $10,000 with such
customers. In addition to filing this
report, the regulations require the bank
to take steps to ensure that a person
meets the requirements for an
exemption, document the basis for the
bank’s initial conclusion that a person is
exempt, annually review the eligibility
of certain exempt persons, document
compliance with the requirements of
FinCEN Form 110, Designation of
Exempt Person, and maintain a
monitoring system that is reasonably
designed to detect, for each account of
a non-listed business or payroll
customer, transactions in currency
requiring a bank to file a suspicious
transaction report. This request for
comments is made pursuant to the
Paperwork Reduction Act of 1995.
DATES: Written comments are welcome
and must be received on or before
October 7, 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–
0015 and Office of Management and
Budget (OMB) control number 1506–
0012.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
Number FINCEN–2024–0015 and OMB
control number 1506–0012.
Please submit comments by one
method only. Comments will be
reviewed consistent with the Paperwork
Reduction Act of 1995 (PRA) and
applicable OMB regulations and
guidance. 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:
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
Under 31 U.S.C. 5313, the Secretary is
authorized to require financial
institutions to report currency
transactions exceeding $10,000.
Regulations implementing 31 U.S.C.
5313 are found at 31 CFR 1010.310
through 1010.314, 31 CFR 1021.311, and
31 CFR 1021.313. The Money
Laundering Suppression Act of 1994
amended the BSA to create certain
mandatory exemptions applicable to
banks from the requirement for financial
institutions to file currency transaction
reports (CTRs), and to give the Secretary
authority to create additional such
exemptions.5 Regulations implementing
this exemption authority, including by
requiring the collection of information
on FinCEN Form 110, Designation of
Exempt Person (‘‘DOEP Report’’), are
found at 31 CFR 1020.315.
Under 31 CFR 1020.315(a), a bank is
not required to file a CTR with respect
to any transaction in currency between
exempt persons and the bank, or
between an exempt person and other
banks that are affiliated with the bank.6
31 CFR 1020.315(b) sets out that an
exempt person is: (1) a bank, to the
extent of such bank’s domestic
operations; (2) a department or agency
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
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).
3 See 31 U.S.C. 5311; see also 12 U.S.C. 1829b(a).
4 Treasury Order 180–01 (Jan. 14, 2020).
5 Public Law 103–325, Title IV, Section 402 (Sep.
23, 1994), 108 Stat. 2243. These authorities are
codified at 31 U.S.C. 5313(d) (mandatory
exemptions) and (e) (discretionary exemptions).
6 31 CFR 1010.315(a). The exemption does not
apply when the exempt person is acting as agent for
another person who is the beneficial owner of the
funds that are the subject of the transaction. 31 CFR
1010.315(f).
1 USA
PATRIOT Act, Public Law 107–56.
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65013
of the United States, of any State, or of
any political subdivision of any State;
(3) any entity established under the laws
of the United States, any State, or any
political subdivision of any State, or
under an interstate compact, that
exercises governmental authority on
behalf of the United States, any such
State, or any such political subdivision;
(4) any entity, other than a bank, whose
common stock or analogous equity
interests are listed on the New York
Stock Exchange, the American
Exchange, or the NASDAQ Stock Market
(a ‘‘listed entity’’), provided that, if the
listed entity is a financial institution
other than a bank, it is an exempt
person only to the extent of its domestic
operations; (5) any subsidiary, other
than a bank, of a listed entity mentioned
in the previous item (4) that is organized
under the laws of the United States or
of any State, provided that the listed
entity owns at least 51 percent of the
equity interest of the subsidiary, and
subject to the qualification that if the
subsidiary is a financial institution
other than a bank, it is an exempt
person only to the extent of its domestic
operations; (6) any other commercial
enterprise, with certain exceptions, that
maintains a transaction account at the
bank for at least two months, frequently
engages in transactions with the bank in
currency in excess of $10,000, and is
incorporated or organized under the
laws of, or is registered as and eligible
to do business within, the United States
or a State (a ‘‘non-listed business’’), but
only to the extent of the non-listed
business customer’s domestic
operations and only with respect to
transactions conducted through the nonlisted business customer’s exemptible
accounts; or (7) any other person, with
certain exceptions, that maintains a
transaction account at the bank for at
least two months, operates a firm that
frequently withdraws more than
$10,000 in order to pay its U.S.
employees in currency, and is
incorporated or organized under the
laws of, or is registered as and eligible
to do business within, the United States
or a State (a ‘‘payroll customer’’), but
solely with respect to withdrawals for
payroll purposes from existing
exemptible accounts.7
31 CFR 1020.315(c)(1) requires a bank
to designate an exempt person by filing
7 In certain circumstances, a limited exemption
from the two-month transaction account holding
requirement may apply to non-listed business and
payroll customers pursuant to the special rule at 31
CFR 1010.315(c)(2)(ii).
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Federal Register / Vol. 89, No. 153 / Thursday, August 8, 2024 / Notices
the DOEP Report 8 within 30 calendar
days after the day of the first reportable
transaction in currency with the person
that the bank seeks to exempt from
reporting. A bank holding company or
one of its bank subsidiaries may make
such a designation on behalf of any or
all of the bank holding company’s bank
subsidiaries by listing those bank
subsidiaries in the DOEP Report that it
files.9 However, a bank is not required
to file a DOEP Report for transfer of
currency to or from: (1) any of the 12
Federal Reserve Banks; (2) a bank, to the
extent of such bank’s domestic
operations; (3) a department or agency
of the United States, of any State, or of
any political subdivision of any State; or
(4) any entity established under the laws
of the United States, any State, or any
political subdivision of any State, or
under an interstate compact between
two or more States, that exercises
governmental authority on behalf of the
United States or any such State or
political subdivision.10
31 CFR 1020.315(d) requires a bank to
review at least once annually the
continued eligibility of an exempt
person that is a (1) listed entity, (2)
subsidiary of a listed entity, (3) nonlisted business customer, or (4) payroll
customer. As part of the annual review,
a bank must also review the application
to each existing account of a non-listed
business or payroll customer of the
monitoring system that 31 CFR
1020.315(h)(2) requires the bank to
maintain (related to suspicious activity
monitoring).
Under 31 CFR 1020.315(e), a bank
must take steps to assure itself that an
exempt person meets the definition of
that term (see 31 CFR 1020.315(b),
summarized above), document the basis
for its conclusion, and document its
compliance with the terms of the
exemption, including the operating
rules in 31 CFR 1020.315(e)(2)–(9). A
bank must also take steps to document
compliance with its suspicious activity
monitoring obligations under 31 CFR
1020.315(h)(2). The steps that the bank
takes under 31 CFR 1020.315(e) must be
those that a reasonable and prudent
bank would take and document to
protect itself from fraud or loss based on
misidentification of a person’s status
and, in the case of the suspicious
activity monitoring obligations, to
identify suspicious transactions.
8 This is referred to in the regulations as ‘‘FinCEN
Form 110.’’ FinCEN has referred to its forms as
‘‘reports’’ since moving to electronic filing.
9 31 CFR 1020.315(c)(1) and (e)(6).
10 31 CFR 1020.315(c)(2)(i)(A) and (B).
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31 CFR 1020.315(h)(1) states that the
CTR exemption rules do not relieve a
bank of its obligation to report any
suspicious transactions pursuant to 31
CFR 1020.320, including any suspicious
transactions or attempted transactions
in currency associated with the
accounts of an exempt person, or relieve
a bank of any other reporting or
recordkeeping obligation imposed under
the authority of the BSA.
Under 31 CFR 1020.315(h)(2), a bank
must establish and maintain a
monitoring system that is reasonably
designed to detect, for each account of
a non-listed business or payroll
customer, transactions in currency that
would require a bank to file a suspicious
activity report.
II. Paperwork Reduction Act of 1995
(PRA) 11
Title: Transactions of exempt person
(31 CFR 1020.315), and FinCEN Form
110—DOEP Report.
OMB Control Number: 1506–0012.
Report Number: FinCEN Form 110—
DOEP Report.
Abstract: FinCEN is issuing this
notice to renew the OMB control
number for the transactions of exempt
person regulations and the DOEP
Report.
Affected Public: Businesses or other
for-profit institutions, and non-profit
institutions.
Type of Review: Renewal without
change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents:
10,062 banks.12
Estimated Number of Responses:
15,105 DOEP Reports.13
Estimated Recordkeeping Burden:
In Part 1 of this notice, FinCEN
describes the distribution of the
estimated number of financial
institutions, by type, affected by the
regulatory 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 2021 notice to renew the
OMB control number associated with
this information collection
requirement.14
11 Public
Law 104–13, 44 U.S.C. 3506(c)(2)(A).
1 below describes the distribution of the
types of financial institutions covered by this
notice.
13 Based on 2023 filings, FinCEN received 15,105
DOEP Reports.
12 Table
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Part 1. Distribution of the Financial
Institutions Covered by This Notice
The distribution of financial
institutions, by type, covered by this
notice is reflected in table 1 below.
TABLE 1—DISTRIBUTION OF FINANCIAL
INSTITUTIONS COVERED BY THIS NOTICE, BY TYPE OF FINANCIAL INSTITUTION
Type of financial institution
Number of
financial
institutions
Banks with a Federal functional regulator (FFR) a .....
Banks lacking an FFR b ........
9,462
600
Total ...............................
10,062
a This estimate of the total number of banks
with a federal functional regulator, including
credit unions, is based on end of year 2023
data as provided by the FFR: the Board of
Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the
Office of the Comptroller of the Currency, and
the National Credit Union Administration.
b This estimate of active entries 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://
federalreserve.gov/paymentsystems/masteraccount-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.
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
FinCEN continues to estimate the
annual hourly burden of the designation
of exempt persons as one hour per
report. This estimate covers the burden
of: (1) reporting, which is estimated to
require an average of 45 minutes to fill
out and file the report; and (2)
recordkeeping and maintenance, which
is estimated to require an average of 15
minutes per report. FinCEN believes
that the information required to be
included on the DOEP Report is basic
information that banks need to maintain
to conduct business. The BSA E-filing
14 See FinCEN, Agency Information Collections
Activities; Proposed Renewal; Comment Request:
Renewal Without Change of Transactions of Exempt
Persons Regulations, and FinCEN Report 110,
Designation of Exempt Persons Reports, 86 FR 6964
(Jan. 25, 2021).
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system prompts banks to save the report
after submission.
FinCEN’s estimate of the annual PRA
burden, which is based on reporting
activity in the previous calendar year,
therefore, is 15,105 hours, as detailed in
table 2 below:
TABLE 2—ESTIMATED TOTAL ANNUAL BURDEN HOURS ASSOCIATED WITH COMPLETION AND MAINTENANCE OF THE DOEP
REPORTS
Number of
DOEP
reports
filed in
2023
Type of
financial
institution
Banks ......................
I
15,105
Time per report in minutes
Reporting
Total burden hours
per step
Recordkeeping
I45 minutes ..............................................
Recordkeeping
Reporting
15 minutes ..............................................
I
11,329
a FinCEN
I
3,776
Total
burden
hours
15,105 a
estimates that the burden to complete and file the DOEP Report for banks was one hour (45 minutes for completion of the report and 15 minutes for recordkeeping). 15,105 DOEP Reports multiplied by 45 minutes and converted to hours equals 11,329 hours. 15,105 DOEP Reports multiplied by 15 minutes and converted to hours equals 3,776 hours. The summation of 11,329 hours and 3,776 hours is 15,105 hours.
FinCEN is utilizing the same fully
loaded composite hourly wage rate of
$106.30 utilized in the 2024 notices of
proposed rulemaking (NPRMs) entitled
Customer Identification Programs for
Registered Investment Advisers and
Exempt Reporting Companies and AntiMoney Laundering and Countering the
Financing of Terrorism Programs, as
well as in recent 60-Day Notices to
renew OMB control numbers
corresponding to specific BSA
regulations.15
The total estimated cost of the annual
PRA burden is $2,421,331.50, as
reflected in table 3 below:
TABLE 3—ESTIMATED TOTAL COST OF ANNUAL PRA BURDEN
Burden hours
per step
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Steps
Wage rate
Total cost
Report completion ..........................................................................................................................
Maintenance/recordkeeping ...........................................................................................................
11,329
3,776
$106.30
106.30
$1,816,038.70
605,292.80
Total cost ................................................................................................................................
........................
....................
2,421,331.50
Estimated Number of Respondents:
10,062 banks, as set out in table 1.
Estimated Total Annual Responses:
15,105 DOEP Reports.16
Estimated Total Annual Reporting
and Recordkeeping Burden: The
estimated total annual reporting and
recordkeeping burden is approximately
15,105 hours, which is comprised of the
total annual reporting and total annual
recordkeeping burdens described below.
Estimated Total Annual Reporting
Burden: The estimated total annual
reporting burden is approximately
11,329 hours, as set out in table 2.
Estimated Total Annual
Recordkeeping Burden: The estimated
total annual recordkeeping burden is
approximately 3,776 hours, as set out in
table 2.
Estimated Total Annual Reporting
and Recordkeeping Cost: The estimated
total annual PRA cost is approximately
$2,421,331.50, as set out in table 3.
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:
(1) 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;
(2) the accuracy of the agency’s estimate
of the burden of the collection of
information; (3) ways to enhance the
quality, utility, and clarity of the
information to be collected; (4) 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 (5) estimates of capital
or start-up costs and costs of operation,
15 See, e.g., FinCEN and SEC, NPRM Customer
Identification Programs for Registered Investment
Advisers and Exempt Reporting Advisers, 89 FR
44571 (May 21, 2024); FinCEN, NPRM Anti-Money
Laundering and Countering the Financing of
Terrorism Programs NPRM, 89 FR 55428 (Jul. 3,
2024); FinCEN, Agency Information Collection
Activities; Proposed Renewal; Comment Request;
Renewal Without Change of the Customer
Identification Program Regulatory Requirements for
Certain Financial Institutions, 89 FR 51940 (Jun. 20,
2024); and FinCEN, Agency Information Collection
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maintenance, and purchase of services
to provide information.
Andrea M. Gacki,
Director, Financial Crimes Enforcement
Network.
[FR Doc. 2024–17605 Filed 8–7–24; 8:45 am]
BILLING CODE 4810–02–P
UNIFIED CARRIER REGISTRATION
PLAN
Sunshine Act Meetings
August 13, 2024, 2:00
p.m. to 5:00 p.m., Eastern time.
PLACE: This meeting will take place at
the Hotel Indigo Traverse City 263 W
Grandview Parkway, Traverse City, MI
49684. The meeting will also be
accessible via conference call and via
Zoom Meeting and Screenshare. Any
interested person may call (i) 1–929–
205–6099 (US Toll) or 1–669–900–6833
(US Toll), Meeting ID: 962 8943 3049, to
listen and participate in this meeting.
The website to participate via Zoom
Meeting and Screenshare is https://
TIME AND DATE:
Activities; Proposed Renewal; Comment Request;
Renewal Without Change of Due Diligence
Programs for Correspondent Accounts for Foreign
Financial Institutions and for Private Banking
Accounts, 89 FR 49273, (Jun. 11, 2024).
16 See supra note 15.
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]]>Agencies
[Federal Register Volume 89, Number 153 (Thursday, August 8, 2024)]
[Notices]
[Pages 65012-65015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17605]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Transactions of Exempt
Persons Regulations, and FinCEN Form 110, Designation of Exempt Person
Report
AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.
ACTION: Notice and request for comments.
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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 a bank to file a FinCEN
Form 110, Designation of Exempt Person, to designate eligible customers
as exempt persons, such that a bank is not required to file a report
[[Page 65013]]
with respect to any transaction in currency over $10,000 with such
customers. In addition to filing this report, the regulations require
the bank to take steps to ensure that a person meets the requirements
for an exemption, document the basis for the bank's initial conclusion
that a person is exempt, annually review the eligibility of certain
exempt persons, document compliance with the requirements of FinCEN
Form 110, Designation of Exempt Person, and maintain a monitoring
system that is reasonably designed to detect, for each account of a
non-listed business or payroll customer, transactions in currency
requiring a bank to file a suspicious transaction report. This request
for comments is made pursuant to the Paperwork Reduction Act of 1995.
DATES: Written comments are welcome and must be received on or before
October 7, 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-2024-0015 and Office of Management and Budget (OMB) control
number 1506-0012.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0015 and OMB control number 1506-0012.
Please submit comments by one method only. Comments will be
reviewed consistent with the Paperwork Reduction Act of 1995 (PRA) and
applicable OMB regulations and guidance. 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.
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\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).
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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\
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\3\ See 31 U.S.C. 5311; see also 12 U.S.C. 1829b(a).
\4\ Treasury Order 180-01 (Jan. 14, 2020).
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Under 31 U.S.C. 5313, the Secretary is authorized to require
financial institutions to report currency transactions exceeding
$10,000. Regulations implementing 31 U.S.C. 5313 are found at 31 CFR
1010.310 through 1010.314, 31 CFR 1021.311, and 31 CFR 1021.313. The
Money Laundering Suppression Act of 1994 amended the BSA to create
certain mandatory exemptions applicable to banks from the requirement
for financial institutions to file currency transaction reports (CTRs),
and to give the Secretary authority to create additional such
exemptions.\5\ Regulations implementing this exemption authority,
including by requiring the collection of information on FinCEN Form
110, Designation of Exempt Person (``DOEP Report''), are found at 31
CFR 1020.315.
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\5\ Public Law 103-325, Title IV, Section 402 (Sep. 23, 1994),
108 Stat. 2243. These authorities are codified at 31 U.S.C. 5313(d)
(mandatory exemptions) and (e) (discretionary exemptions).
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Under 31 CFR 1020.315(a), a bank is not required to file a CTR with
respect to any transaction in currency between exempt persons and the
bank, or between an exempt person and other banks that are affiliated
with the bank.\6\
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\6\ 31 CFR 1010.315(a). The exemption does not apply when the
exempt person is acting as agent for another person who is the
beneficial owner of the funds that are the subject of the
transaction. 31 CFR 1010.315(f).
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31 CFR 1020.315(b) sets out that an exempt person is: (1) a bank,
to the extent of such bank's domestic operations; (2) a department or
agency of the United States, of any State, or of any political
subdivision of any State; (3) any entity established under the laws of
the United States, any State, or any political subdivision of any
State, or under an interstate compact, that exercises governmental
authority on behalf of the United States, any such State, or any such
political subdivision; (4) any entity, other than a bank, whose common
stock or analogous equity interests are listed on the New York Stock
Exchange, the American Exchange, or the NASDAQ Stock Market (a ``listed
entity''), provided that, if the listed entity is a financial
institution other than a bank, it is an exempt person only to the
extent of its domestic operations; (5) any subsidiary, other than a
bank, of a listed entity mentioned in the previous item (4) that is
organized under the laws of the United States or of any State, provided
that the listed entity owns at least 51 percent of the equity interest
of the subsidiary, and subject to the qualification that if the
subsidiary is a financial institution other than a bank, it is an
exempt person only to the extent of its domestic operations; (6) any
other commercial enterprise, with certain exceptions, that maintains a
transaction account at the bank for at least two months, frequently
engages in transactions with the bank in currency in excess of $10,000,
and is incorporated or organized under the laws of, or is registered as
and eligible to do business within, the United States or a State (a
``non-listed business''), but only to the extent of the non-listed
business customer's domestic operations and only with respect to
transactions conducted through the non-listed business customer's
exemptible accounts; or (7) any other person, with certain exceptions,
that maintains a transaction account at the bank for at least two
months, operates a firm that frequently withdraws more than $10,000 in
order to pay its U.S. employees in currency, and is incorporated or
organized under the laws of, or is registered as and eligible to do
business within, the United States or a State (a ``payroll customer''),
but solely with respect to withdrawals for payroll purposes from
existing exemptible accounts.\7\
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\7\ In certain circumstances, a limited exemption from the two-
month transaction account holding requirement may apply to non-
listed business and payroll customers pursuant to the special rule
at 31 CFR 1010.315(c)(2)(ii).
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31 CFR 1020.315(c)(1) requires a bank to designate an exempt person
by filing
[[Page 65014]]
the DOEP Report \8\ within 30 calendar days after the day of the first
reportable transaction in currency with the person that the bank seeks
to exempt from reporting. A bank holding company or one of its bank
subsidiaries may make such a designation on behalf of any or all of the
bank holding company's bank subsidiaries by listing those bank
subsidiaries in the DOEP Report that it files.\9\ However, a bank is
not required to file a DOEP Report for transfer of currency to or from:
(1) any of the 12 Federal Reserve Banks; (2) a bank, to the extent of
such bank's domestic operations; (3) a department or agency of the
United States, of any State, or of any political subdivision of any
State; or (4) any entity established under the laws of the United
States, any State, or any political subdivision of any State, or under
an interstate compact between two or more States, that exercises
governmental authority on behalf of the United States or any such State
or political subdivision.\10\
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\8\ This is referred to in the regulations as ``FinCEN Form
110.'' FinCEN has referred to its forms as ``reports'' since moving
to electronic filing.
\9\ 31 CFR 1020.315(c)(1) and (e)(6).
\10\ 31 CFR 1020.315(c)(2)(i)(A) and (B).
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31 CFR 1020.315(d) requires a bank to review at least once annually
the continued eligibility of an exempt person that is a (1) listed
entity, (2) subsidiary of a listed entity, (3) non-listed business
customer, or (4) payroll customer. As part of the annual review, a bank
must also review the application to each existing account of a non-
listed business or payroll customer of the monitoring system that 31
CFR 1020.315(h)(2) requires the bank to maintain (related to suspicious
activity monitoring).
Under 31 CFR 1020.315(e), a bank must take steps to assure itself
that an exempt person meets the definition of that term (see 31 CFR
1020.315(b), summarized above), document the basis for its conclusion,
and document its compliance with the terms of the exemption, including
the operating rules in 31 CFR 1020.315(e)(2)-(9). A bank must also take
steps to document compliance with its suspicious activity monitoring
obligations under 31 CFR 1020.315(h)(2). The steps that the bank takes
under 31 CFR 1020.315(e) must be those that a reasonable and prudent
bank would take and document to protect itself from fraud or loss based
on misidentification of a person's status and, in the case of the
suspicious activity monitoring obligations, to identify suspicious
transactions.
31 CFR 1020.315(h)(1) states that the CTR exemption rules do not
relieve a bank of its obligation to report any suspicious transactions
pursuant to 31 CFR 1020.320, including any suspicious transactions or
attempted transactions in currency associated with the accounts of an
exempt person, or relieve a bank of any other reporting or
recordkeeping obligation imposed under the authority of the BSA.
Under 31 CFR 1020.315(h)(2), a bank must establish and maintain a
monitoring system that is reasonably designed to detect, for each
account of a non-listed business or payroll customer, transactions in
currency that would require a bank to file a suspicious activity
report.
II. Paperwork Reduction Act of 1995 (PRA) \11\
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\11\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Transactions of exempt person (31 CFR 1020.315), and FinCEN
Form 110--DOEP Report.
OMB Control Number: 1506-0012.
Report Number: FinCEN Form 110--DOEP Report.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the transactions of exempt person regulations and the DOEP
Report.
Affected Public: Businesses or other for-profit institutions, and
non-profit institutions.
Type of Review: Renewal without change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents: 10,062 banks.\12\
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\12\ Table 1 below describes the distribution of the types of
financial institutions covered by this notice.
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Estimated Number of Responses: 15,105 DOEP Reports.\13\
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\13\ Based on 2023 filings, FinCEN received 15,105 DOEP Reports.
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Estimated Recordkeeping Burden:
In Part 1 of this notice, FinCEN describes the distribution of the
estimated number of financial institutions, by type, affected by the
regulatory 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 2021
notice to renew the OMB control number associated with this information
collection requirement.\14\
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\14\ See FinCEN, Agency Information Collections Activities;
Proposed Renewal; Comment Request: Renewal Without Change of
Transactions of Exempt Persons Regulations, and FinCEN Report 110,
Designation of Exempt Persons Reports, 86 FR 6964 (Jan. 25, 2021).
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Part 1. Distribution of the Financial Institutions Covered by This
Notice
The distribution of financial institutions, by type, covered by
this notice is reflected in table 1 below.
Table 1--Distribution of Financial Institutions Covered by This Notice,
by Type of Financial Institution
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Number of
Type of financial institution financial
institutions
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Banks with a Federal functional regulator (FFR) \a\..... 9,462
Banks lacking an FFR \b\................................ 600
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Total............................................... 10,062
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\a\ This estimate of the total number of banks with a federal functional
regulator, including credit unions, is based on end of year 2023 data
as provided by the FFR: the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, the Office of the
Comptroller of the Currency, and the National Credit Union
Administration.
\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.
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
FinCEN continues to estimate the annual hourly burden of the
designation of exempt persons as one hour per report. This estimate
covers the burden of: (1) reporting, which is estimated to require an
average of 45 minutes to fill out and file the report; and (2)
recordkeeping and maintenance, which is estimated to require an average
of 15 minutes per report. FinCEN believes that the information required
to be included on the DOEP Report is basic information that banks need
to maintain to conduct business. The BSA E-filing
[[Page 65015]]
system prompts banks to save the report after submission.
FinCEN's estimate of the annual PRA burden, which is based on
reporting activity in the previous calendar year, therefore, is 15,105
hours, as detailed in table 2 below:
Table 2--Estimated Total Annual Burden Hours Associated With Completion and Maintenance of the Doep Reports
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Number of Time per report in minutes Total burden hours per step
DOEP reports ------------------------------------------------------------------------------------- Total burden
Type of financial institution filed in hours
2023 Reporting Recordkeeping Reporting Recordkeeping
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Banks.................................. 15,105 45 minutes................ 15 minutes................ 11,329 3,776 15,105 \a\
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\a\ FinCEN estimates that the burden to complete and file the DOEP Report for banks was one hour (45 minutes for completion of the report and 15 minutes
for recordkeeping). 15,105 DOEP Reports multiplied by 45 minutes and converted to hours equals 11,329 hours. 15,105 DOEP Reports multiplied by 15
minutes and converted to hours equals 3,776 hours. The summation of 11,329 hours and 3,776 hours is 15,105 hours.
FinCEN is utilizing the same fully loaded composite hourly wage
rate of $106.30 utilized in the 2024 notices of proposed rulemaking
(NPRMs) entitled Customer Identification Programs for Registered
Investment Advisers and Exempt Reporting Companies and Anti-Money
Laundering and Countering the Financing of Terrorism Programs, as well
as in recent 60-Day Notices to renew OMB control numbers corresponding
to specific BSA regulations.\15\
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\15\ See, e.g., FinCEN and SEC, NPRM Customer Identification
Programs for Registered Investment Advisers and Exempt Reporting
Advisers, 89 FR 44571 (May 21, 2024); FinCEN, NPRM Anti-Money
Laundering and Countering the Financing of Terrorism Programs NPRM,
89 FR 55428 (Jul. 3, 2024); FinCEN, Agency Information Collection
Activities; Proposed Renewal; Comment Request; Renewal Without
Change of the Customer Identification Program Regulatory
Requirements for Certain Financial Institutions, 89 FR 51940 (Jun.
20, 2024); and FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of Due
Diligence Programs for Correspondent Accounts for Foreign Financial
Institutions and for Private Banking Accounts, 89 FR 49273, (Jun.
11, 2024).
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The total estimated cost of the annual PRA burden is $2,421,331.50,
as reflected in table 3 below:
Table 3--Estimated Total Cost of Annual PRA Burden
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Burden hours
Steps per step Wage rate Total cost
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Report completion................................................. 11,329 $106.30 $1,816,038.70
Maintenance/recordkeeping......................................... 3,776 106.30 605,292.80
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Total cost.................................................... .............. ........... 2,421,331.50
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Estimated Number of Respondents: 10,062 banks, as set out in table
1.
Estimated Total Annual Responses: 15,105 DOEP Reports.\16\
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\16\ See supra note 15.
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Estimated Total Annual Reporting and Recordkeeping Burden: The
estimated total annual reporting and recordkeeping burden is
approximately 15,105 hours, which is comprised of the total annual
reporting and total annual recordkeeping burdens described below.
Estimated Total Annual Reporting Burden: The estimated total annual
reporting burden is approximately 11,329 hours, as set out in table 2.
Estimated Total Annual Recordkeeping Burden: The estimated total
annual recordkeeping burden is approximately 3,776 hours, as set out in
table 2.
Estimated Total Annual Reporting and Recordkeeping Cost: The
estimated total annual PRA cost is approximately $2,421,331.50, as set
out in table 3.
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: (1) 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; (2) the accuracy of the
agency's estimate of the burden of the collection of information; (3)
ways to enhance the quality, utility, and clarity of the information to
be collected; (4) 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 (5)
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. 2024-17605 Filed 8-7-24; 8:45 am]
BILLING CODE 4810-02-P
