Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Anti-Money Laundering Program Requirements for Casinos, 65977-65980 [2024-18034]
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65977
Federal Register / Vol. 89, No. 156 / Tuesday, August 13, 2024 / Notices
TABLE 2—DISTRIBUTION OF ESTIMATED TOTAL ANNUAL BURDEN HOURS PER REQUIREMENT BY TYPE OF AFFECTED
FINANCIAL INSTITUTIONS—Continued
Number of
financial
institutions
Annual burden
estimate per
financial
institution in
hours
Total annual
burden hours
per regulatory
requirement
Regulatory requirement
Affected financial institution type
31 CFR 1022.420 ...........................................
2,664
16
42,624
31 CFR 1020.410 ...........................................
MSBs that are providers or sellers of prepaid
access.
Banks .............................................................
10,062
100
1,006,200
Total annual burden hours ......................
.........................................................................
........................
5,022,039
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.54
The total estimated cost of the annual
PRA burden is $533,842,745.70, as
reflected in table 3 below:
TABLE 3—ESTIMATED TOTAL COST OF ANNUAL PRA BURDEN
Regulatory requirement
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31
31
31
31
31
CFR
CFR
CFR
CFR
CFR
Burden hours
Wage rate
Total cost
1010.410(a)–(c) ............................................................................................
1010.410(e) ..................................................................................................
1010.410(f) ...................................................................................................
1022.420 ......................................................................................................
1020.410 ......................................................................................................
3,379,355
270,352
323,508
42,624
1,006,200
$106.30
106.30
106.30
106.30
106.30
$359,225,436.50
28,738,417.60
34,388,900.40
4,530,931.20
106,959,060.00
Total annual cost ................................................................................................
..............................
..............................
533,842,745.70
Estimated Number of Respondents:
273,832 financial institutions, as set out
in table 1.
Estimated Total Annual
Recordkeeping Burden: The estimated
total annual PRA burden is
approximately 5,022,039 hours, as set
out in table 2.
Estimated Total Annual
Recordkeeping Cost: The estimated total
annual PRA cost is approximately
$533,842,745.70 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:
(i) whether the collection of information
is necessary for the proper performance
of the functions of the agency, including
54 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 (July 3,
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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. 2024–18035 Filed 8–12–24; 8:45 am]
BILLING CODE 4810–02–P
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 (June
20, 2024); FinCEN, Agency Information Collection
PO 00000
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request; Renewal Without
Change of Anti-Money Laundering
Program Requirements for Casinos
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 casinos to
develop and implement written antimoney laundering programs. This notice
does not address requirements proposed
under section 6101(b) of the AntiMoney Laundering Act of 2020.
Paperwork and respondent burden for
those requirements are addressed in a
SUMMARY:
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, (June 11, 2024).
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Federal Register / Vol. 89, No. 156 / Tuesday, August 13, 2024 / Notices
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separate notice of proposed rulemaking.
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 15, 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–
0016 and Office of Management and
Budget (OMB) control number 1506–
0051.
• Mail: Policy Division, Financial
Crimes Enforcement Network, P.O. Box
39, Vienna, VA 22183. Refer to Docket
Number FINCEN–2024–0016 and OMB
control number 1506–0051.
Please submit comments by one
method only. Comments will be
reviewed consistent with the Paperwork
Reduction Act of 1995 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,
1951–1960 and 31 U.S.C. 5311–5314,
5316–5336, including notes thereto,
with implementing regulations at 31
CFR chapter X.
The BSA authorizes the Secretary of
the Treasury (Secretary) to, inter alia,
require financial institutions to keep
records and file reports that are
determined to have a high degree of
usefulness in criminal, tax, or regulatory
matters, risk assessments or
1 USA PATRIOT Act, Pub. L. 107–56, 115 Stat.
272 (2001).
2 The AML Act was enacted as Division F,
sections 6001–6511, of the William M. (Mac)
Thornberry National Defense Authorization Act for
Fiscal Year 2021, Pub. L. 116–283, 134 Stat. 3388.
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proceedings, or in the conduct of
intelligence or counter-intelligence
activities to protect against terrorism,
and to implement anti-money
laundering and 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
Pursuant to 31 U.S.C. 5318(h)(1),
financial institutions must establish
AML/CFT programs to guard against
money laundering and the financing of
terrorism.5 Such programs must
include, at a minimum: (a) the
development of internal policies,
procedures, and controls; (b) the
designation of a compliance officer; (c)
an ongoing employee training program;
and (d) an independent audit function
to test programs.6 On March 12, 1993,
FinCEN issued regulations, under
separate statutory authority codified at
31 U.S.C. 5318(a)(2), requiring casinos
to develop and implement written BSA
compliance programs.7 FinCEN
subsequently amended those regulations
after passage of the USA PATRIOT Act
to state that a casino would be ‘‘deemed
to satisfy the requirements of 31 U.S.C.
5318(h)(1) if it implements and
maintains’’ an AML program, as
described in’’ 31 CFR 1021.210(b).8
This notice renews the OMB control
number associated with the casino AML
program regulations. This notice is not
renewing the OMB control numbers
associated with other types of financial
institutions’ AML program regulatory
requirements, which were renewed as
part of a separate notice published in
3 See
31 U.S.C. 5311.
Order 180–01 (Jan. 14, 2020); see also
31 U.S.C. 310(b)(2)(I) (providing that FinCEN
Director ‘‘[a]dminister the requirements of
subchapter II of chapter 53 of this title, chapter 2
of title I of Public Law 91–508, and section 21 of
the Federal Deposit Insurance Act, to the extent
delegated such authority by the Secretary.’’).
5 The provision was added to the BSA through
Section 352 of the USA PATRIOT Act and
authorizes FinCEN to prescribe minimum standards
for AML programs and to exempt certain financial
institutions from application of those standards.
Section 6101(b) of the AML Act amended the
provision to include explicit references to terrorism
finance and to specify the factors that FinCEN must
consider in prescribing minimum standards.
6 See 31 U.S.C. 5318(h)(1)(A)–(D).
7 See FinCEN, Regulations Regarding Reporting
and Recordkeeping Requirements by Casinos, 58 FR
13538 (Mar. 12, 1993). The regulations were
codified at 31 CFR 1021.210. Card clubs are
included in the casino AML program regulations,
and any reference to casinos used in BSA
regulations includes card clubs, unless specifically
noted. See 31 CFR 1010.100(t)(5)(iii).
8 See FinCEN, Anti-Money Laundering Programs
for Financial Institutions, 67 FR 21110 (Apr. 29,
2002). The amended regulations are codified at 31
CFR 1021.210(a).
4 Treasury
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April 2024.9 This notice also does not
address any changes to requirements
governing AML programs that FinCEN
is proposing to make pursuant to section
6101(b) of the AML Act; FinCEN
addressed the paperwork and
respondent burden of such proposed
changes in the notice of proposed
rulemaking (NPRM) entitled AntiMoney Laundering and Countering the
Financing of Terrorism Programs,
published in July 2024.10
II. Paperwork Reduction Act of 1995
(PRA) 11
Title: Anti-money laundering program
requirements for casinos (31 CFR
1021.210, 31 CFR 1021.410(b)(10) 12).
OMB Control Number: 1506–0051.
Form Number: Not applicable.
Abstract: FinCEN is issuing this
notice to renew the OMB control
number for the AML program
requirements for casinos.
Affected Public: Businesses or other
for-profit institutions.
Type of Review: Renewal without
change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents:
1,277 casinos.13
Estimated Recordkeeping Burden: In
Part 1 of this notice, FinCEN describes
the distribution of the estimated number
of casinos by type. In Part 2, FinCEN
proposes for review and comment a
renewal of the calculation of the annual
PRA burden that includes a scope and
methodology similar to that used in the
2020 notice to renew the OMB control
number for the casino AML program
requirements.14
Part 1. Distribution of the Casinos
Covered by this Notice
The distribution of casinos, by type,
covered by this notice is reflected in
table 1 below:
9 See FinCEN, Agency Information Collection
Activities; Proposed Renewal: Comment Request;
Renewal Without Change of Anti-Money Laundering
Programs for Certain Financial Institutions, 89 FR
29427 (Apr. 22, 2024).
10 See FinCEN, Anti-Money Laundering and
Countering the Financing of Terrorism Programs
NPRM, 89 FR 55428 (July 3, 2024).
11 Public Law 104–13, 44 U.S.C. 3506(c)(2)(A).
12 Pursuant to 31 CFR 1021.410(b)(10), casinos
must retain a copy of their AML compliance
programs.
13 Table 1 below sets forth a distribution of the
types of casinos covered by this notice.
14 See FinCEN, Agency Information Collection
Activities; Proposed Renewal; Comment Request;
Renewal Without Change of Anti-Money Laundering
Program Requirements for Casinos, 85 FR 83676
(Dec. 22, 2020).
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Federal Register / Vol. 89, No. 156 / Tuesday, August 13, 2024 / Notices
In connection with a variety of
TABLE 1—DISTRIBUTION OF CASINOS
COVERED BY THIS NOTICE, BY TYPE initiatives FinCEN is undertaking to
implement the AML Act, FinCEN
OF CASINO
Type of casino
Number of
casinos
Casino .......................................
Tribal casino .............................
Card club ..................................
486
525
266
Total number of casinos .......
a 1,277
a Estimate based on the American Gaming
Association (AGA) ‘‘State of Play,’’ reporting
486 commercial casinos and 525 Tribal casinos as of December 31, 2023 (available at
https://www.americangaming.org/state-of-play/,
accessed February 28, 2024). As of December 31, 2022, there were also 266 card rooms
as published in the AGA’s ‘‘State of the
States’’ annual report, p. 16 (available at
https://www.americangaming.org/wpcontent/
uploads/2023/05/AGA-State-of-the-States2023.pdf, accessed February 28, 2024).
As noted above, 31 U.S.C. 5318(h)
mandates that financial institutions
establish AML/CFT programs to guard
against money laundering and the
financing of terrorism. Such programs
must include, at a minimum: (a) the
development of internal policies,
procedures, and controls; (b) the
designation of a compliance officer; (c)
an ongoing employee training program;
and (d) an independent audit function
to test programs.15
The AML program regulations for
casinos require casinos to implement
AML programs that are reasonably
designed.16 The AML program must be
in writing and must be independently
tested for compliance with a scope and
frequency commensurate with the
money laundering and terrorist
financing risks posed by the products
and services provided by the casino.17
intends to conduct, in the future,
additional assessments of the PRA
burden associated with BSA
requirements.
Part 2. Annual PRA Burden and Cost
For purposes of estimating casino and
card rooms’ AML program annual PRA
burden(s), FinCEN continues to view
the recordkeeping burden associated
with AML program requirements as the
sum of four discrete activities. The
scope of the annual PRA burden and
cost estimates of the casino AML
program requirements in this renewal
therefore remains subdivided as follows:
maintaining and updating the AML
program documentation (Activity A);
storing the written AML program
(Activity B); 18 producing a copy of the
written AML program if requested by
regulatory examiners or law
enforcement (Activity C); and
complying with the requirements in 31
CFR 1021.210(b)(2)(v) and (vi), which
are unique to casino AML program
regulations (Activity D).19
For purposes of estimating the casino
AML program annual PRA burden,
FinCEN continues to estimate the
hourly burden per activity using the
same burden estimates that were used in
the 2020 notice to renew the OMB
control number for the casino AML
program requirements.20
• Activity A—FinCEN continues to
estimate the incremental annual PRA
burden of maintaining and updating a
written AML program at an average of
one hour per casino, consistent with the
burden estimate in the 2020 renewal of
this OMB control number and in the
renewal of the AML program
requirements for other types of financial
institutions in 2024.21
• Activity B—Required written AML
programs are stored as electronic files.
The estimated annual burden (five
minutes per financial institution)
represents the administrative burden
involved in processing the storage of the
written program. FinCEN continues to
estimate the incremental annual PRA
burden of storing an AML program at an
average of five minutes per casino.
• Activity C—Producing the written
AML program to regulatory or law
enforcement agencies, upon their
request, is performed electronically.
Historically, FinCEN has estimated the
annual burden of producing the written
program at an average of five minutes
per financial institution. This estimated
annual burden represents the
administrative burden involved in
producing the program upon request
once per year. FinCEN continues to
estimate the incremental annual PRA
burden of producing an AML program at
five minutes per casino.
• Activity D—In the 2020 renewal of
the casino AML program regulations,
FinCEN estimated the annual PRA
burden to comply with 31 CFR
1021.210(b)(2)(v) and (vi) would average
approximately 99 hours per casino.
FinCEN continues to estimate that the
annual incremental PRA burden of
complying with these requirements is
99 hours per casino.22
Under these assumptions, FinCEN’s
estimate of the annual incremental PRA
burden is 127,912 hours, as detailed in
table 2 below.
TABLE 2—DISTRIBUTION OF THE ESTIMATED TOTAL ANNUAL BURDEN HOURS PER REQUIREMENT
Total hourly
burden
Instances per year
Time per instance
A. Maintaining and updating the written AML program.
B. Storing the written AML program ..........................
C. Producing the AML program upon request ..........
1 per casino ...................................
1 hour ......................
1,277
1,277
1 per casino ...................................
1 per casino ...................................
5 minutes ................
5 minutes ................
1,277
1,277
* 106
* 106
15 See
31 U.S.C. 5318(h)(1)(A)–(D).
CFR 1021.210(b)(1).
17 31 CFR 1021(b)(2); see also 31 CFR
1021.410(b)(10).
18 Pursuant to 31 CFR 1021.210(b)(1) and 31 CFR
1021.410(b)(10), respectively, a casino’s AML
program must be reduced to writing, and the casino
must retain a copy of the program.
19 Pursuant to 31 CFR 1021.210(b)(2)(v), a
casino’s AML program must include procedures for
using all available information to determine: (i)
when required by 31 CFR Chapter X, a person’s
name, address, social security number, and other
information, and verification of the same; (ii) the
occurrence of any transaction or pattern of
transactions required to be reported pursuant to 31
16 31
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Number of
casinos
Required activities
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CFR 1021.320; and (iii) whether any record
described in subpart D of part 1010 of chapter X
must be made and retained. Pursuant to 31 CFR
1021.210(b)(2)(vi), casinos with automated data
processing systems must implement AML programs
that provide for the use of automated programs to
aid in assuring compliance.
20 See supra note 14.
21 See supra note 9.
22 If it becomes necessary to consider how to
allocate the burden of Activity D between the
activities required by 31 CFR 1021.210(b)(2)(v) and
(vi) respectively, FinCEN is of the opinion that (vi)
contributes a de minimis burden to the activity.
Pursuant to 31 CFR 1021.210(b)(2)(vi), ‘‘[f]or
casinos that have automated data processing
systems,’’ the casino’s AML program must provide
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for ‘‘the use of automated programs to aid in
assuring compliance.’’ While this may have been a
measurable incremental source of burden in the
earlier stages of businesses adopting automated
compliance programs (particularly in the casino
industry), FinCEN believes such programs have
since been widely adopted for a variety of sound
business reasons independent of FinCEN regulatory
requirements. As these programs are now
effectively ubiquitous in the industry, FinCEN is of
the opinion that they would continue to be used in
the absence of the requirement in 31 CFR
1021.210(b)(2)(vi). However, FinCEN solicits
comments on whether this is the case, and whether
as a result the burden added by (vi) should be
regarded as de minimis.
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Federal Register / Vol. 89, No. 156 / Tuesday, August 13, 2024 / Notices
TABLE 2—DISTRIBUTION OF THE ESTIMATED TOTAL ANNUAL BURDEN HOURS PER REQUIREMENT—Continued
Number of
casinos
Total hourly
burden
Required activities
Instances per year
Time per instance
D. Ongoing compliance with the requirements in 31
CFR 1021.210(b)(2)(v) and (vi).
1 per casino ...................................
99 hours ..................
1,277
126,423
Total hourly burden .............................................
........................................................
.................................
........................
127,912
* 106.41 rounded to 106.
FinCEN is utilizing the same fullyloaded composite hourly wage rate of
$106.30 utilized in the 2024 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.23
The total estimated cost of the annual
PRA burden is $13,597,045.60, as
reflected in table 3 below:
TABLE 3—ESTIMATED TOTAL COST OF ANNUAL PRA BURDEN
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Required activities
Burden hours
Wage rate
Total cost
A. Maintaining and updating the written AML program .............................................
B. Storing the written AML program ..........................................................................
C. Producing the AML program upon request ..........................................................
D. Ongoing compliance with the requirements in 31 CFR 1021.210(b)(2)(v) and
(vi) ..........................................................................................................................
1,277
106
106
$106.30
106.30
106.30
$135,745.10
11,267.80
11,267.80
126,423
106.30
13,438,764.90
Total cost ............................................................................................................
..............................
..............................
13,597,045.60
Estimated Number of Respondents:
1,277 casinos, as set out in table 1.
Estimated Total Annual
Recordkeeping Burden: The estimated
annual PRA burden is approximately
127,912 hours, as set out in table 2.
Estimated Total Annual
Recordkeeping Cost: The estimated total
annual PRA cost is approximately
$13,597,045.60, 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.24
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)
23 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 (July 3,
VerDate Sep<11>2014
17:55 Aug 12, 2024
Jkt 262001
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.
Notice and request for
comments.
ACTION:
Financial Crimes Enforcement
Network (FinCEN), Treasury.
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 dealers in
foreign exchange and broker-dealers in
securities to retain originals or copies of
specified account or transaction records,
and that require dealers in foreign
exchange to secure and maintain
records of the taxpayer identification
number of persons for whom a
transaction account is opened or a line
of credit is extended. 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 15, 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–
0014 and Office of Management and
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 (June
20, 2024); 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, (June 11, 2024).
24 See 31 CFR 1010.430.
Andrea M. Gacki,
Director, Financial Crimes Enforcement
Network.
[FR Doc. 2024–18034 Filed 8–12–24; 8:45 am]
BILLING CODE 4810–02–P
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection
Activities; Proposed Renewal;
Comment Request; Renewal Without
Change of Regulations Requiring
Additional Records To Be Made and
Retained by Dealers in Foreign
Exchange and Additional Records To
Be Made and Retained by Brokers or
Dealers in Securities
AGENCY:
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SUMMARY:
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]]>Agencies
[Federal Register Volume 89, Number 156 (Tuesday, August 13, 2024)]
[Notices]
[Pages 65977-65980]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18034]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Anti-Money Laundering
Program Requirements for Casinos
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 casinos to develop and
implement written anti-money laundering programs. This notice does not
address requirements proposed under section 6101(b) of the Anti-Money
Laundering Act of 2020. Paperwork and respondent burden for those
requirements are addressed in a
[[Page 65978]]
separate notice of proposed rulemaking. 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 15, 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-2024-0016 and Office of Management and Budget (OMB) control
number 1506-0051.
Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2024-0016 and OMB control number 1506-0051.
Please submit comments by one method only. Comments will be
reviewed consistent with the Paperwork Reduction Act of 1995 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, 1951-1960 and 31 U.S.C. 5311-5314,
5316-5336, including notes thereto, with implementing regulations at 31
CFR chapter X.
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\1\ USA PATRIOT Act, Pub. L. 107-56, 115 Stat. 272 (2001).
\2\ The AML Act was enacted as Division F, sections 6001-6511,
of the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021, Pub. L. 116-283, 134 Stat. 3388.
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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 and
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.
\4\ Treasury Order 180-01 (Jan. 14, 2020); see also 31 U.S.C.
310(b)(2)(I) (providing that FinCEN Director ``[a]dminister the
requirements of subchapter II of chapter 53 of this title, chapter 2
of title I of Public Law 91-508, and section 21 of the Federal
Deposit Insurance Act, to the extent delegated such authority by the
Secretary.'').
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Pursuant to 31 U.S.C. 5318(h)(1), financial institutions must
establish AML/CFT programs to guard against money laundering and the
financing of terrorism.\5\ Such programs must include, at a minimum:
(a) the development of internal policies, procedures, and controls; (b)
the designation of a compliance officer; (c) an ongoing employee
training program; and (d) an independent audit function to test
programs.\6\ On March 12, 1993, FinCEN issued regulations, under
separate statutory authority codified at 31 U.S.C. 5318(a)(2),
requiring casinos to develop and implement written BSA compliance
programs.\7\ FinCEN subsequently amended those regulations after
passage of the USA PATRIOT Act to state that a casino would be ``deemed
to satisfy the requirements of 31 U.S.C. 5318(h)(1) if it implements
and maintains'' an AML program, as described in'' 31 CFR
1021.210(b).\8\
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\5\ The provision was added to the BSA through Section 352 of
the USA PATRIOT Act and authorizes FinCEN to prescribe minimum
standards for AML programs and to exempt certain financial
institutions from application of those standards. Section 6101(b) of
the AML Act amended the provision to include explicit references to
terrorism finance and to specify the factors that FinCEN must
consider in prescribing minimum standards.
\6\ See 31 U.S.C. 5318(h)(1)(A)-(D).
\7\ See FinCEN, Regulations Regarding Reporting and
Recordkeeping Requirements by Casinos, 58 FR 13538 (Mar. 12, 1993).
The regulations were codified at 31 CFR 1021.210. Card clubs are
included in the casino AML program regulations, and any reference to
casinos used in BSA regulations includes card clubs, unless
specifically noted. See 31 CFR 1010.100(t)(5)(iii).
\8\ See FinCEN, Anti-Money Laundering Programs for Financial
Institutions, 67 FR 21110 (Apr. 29, 2002). The amended regulations
are codified at 31 CFR 1021.210(a).
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This notice renews the OMB control number associated with the
casino AML program regulations. This notice is not renewing the OMB
control numbers associated with other types of financial institutions'
AML program regulatory requirements, which were renewed as part of a
separate notice published in April 2024.\9\ This notice also does not
address any changes to requirements governing AML programs that FinCEN
is proposing to make pursuant to section 6101(b) of the AML Act; FinCEN
addressed the paperwork and respondent burden of such proposed changes
in the notice of proposed rulemaking (NPRM) entitled Anti-Money
Laundering and Countering the Financing of Terrorism Programs,
published in July 2024.\10\
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\9\ See FinCEN, Agency Information Collection Activities;
Proposed Renewal: Comment Request; Renewal Without Change of Anti-
Money Laundering Programs for Certain Financial Institutions, 89 FR
29427 (Apr. 22, 2024).
\10\ See FinCEN, Anti-Money Laundering and Countering the
Financing of Terrorism Programs NPRM, 89 FR 55428 (July 3, 2024).
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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: Anti-money laundering program requirements for casinos (31
CFR 1021.210, 31 CFR 1021.410(b)(10) \12\).
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\12\ Pursuant to 31 CFR 1021.410(b)(10), casinos must retain a
copy of their AML compliance programs.
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OMB Control Number: 1506-0051.
Form Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for the AML program requirements for casinos.
Affected Public: Businesses or other for-profit institutions.
Type of Review: Renewal without change of a currently approved
information collection.
Frequency: As required.
Estimated Number of Respondents: 1,277 casinos.\13\
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\13\ Table 1 below sets forth a distribution of the types of
casinos covered by this notice.
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Estimated Recordkeeping Burden: In Part 1 of this notice, FinCEN
describes the distribution of the estimated number of casinos by type.
In Part 2, FinCEN proposes for review and comment a renewal of the
calculation of the annual PRA burden that includes a scope and
methodology similar to that used in the 2020 notice to renew the OMB
control number for the casino AML program requirements.\14\
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\14\ See FinCEN, Agency Information Collection Activities;
Proposed Renewal; Comment Request; Renewal Without Change of Anti-
Money Laundering Program Requirements for Casinos, 85 FR 83676 (Dec.
22, 2020).
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Part 1. Distribution of the Casinos Covered by this Notice
The distribution of casinos, by type, covered by this notice is
reflected in table 1 below:
[[Page 65979]]
Table 1--Distribution of Casinos Covered by This Notice, by Type of
Casino
------------------------------------------------------------------------
Number of
Type of casino casinos
------------------------------------------------------------------------
Casino..................................................... 486
Tribal casino.............................................. 525
Card club.................................................. 266
------------
Total number of casinos.................................. \a\ 1,277
------------------------------------------------------------------------
\a\ Estimate based on the American Gaming Association (AGA) ``State of
Play,'' reporting 486 commercial casinos and 525 Tribal casinos as of
December 31, 2023 (available at https://www.americangaming.org/state-of-play/, accessed February 28, 2024). As of December 31, 2022, there
were also 266 card rooms as published in the AGA's ``State of the
States'' annual report, p. 16 (available at https://www.americangaming.org/wpcontent/uploads/2023/05/AGA-State-of-the-States-2023.pdf, accessed February 28, 2024).
As noted above, 31 U.S.C. 5318(h) mandates that financial
institutions establish AML/CFT programs to guard against money
laundering and the financing of terrorism. Such programs must include,
at a minimum: (a) the development of internal policies, procedures, and
controls; (b) the designation of a compliance officer; (c) an ongoing
employee training program; and (d) an independent audit function to
test programs.\15\
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\15\ See 31 U.S.C. 5318(h)(1)(A)-(D).
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The AML program regulations for casinos require casinos to
implement AML programs that are reasonably designed.\16\ The AML
program must be in writing and must be independently tested for
compliance with a scope and frequency commensurate with the money
laundering and terrorist financing risks posed by the products and
services provided by the casino.\17\
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\16\ 31 CFR 1021.210(b)(1).
\17\ 31 CFR 1021(b)(2); see also 31 CFR 1021.410(b)(10).
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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 purposes of estimating casino and card rooms' AML program
annual PRA burden(s), FinCEN continues to view the recordkeeping burden
associated with AML program requirements as the sum of four discrete
activities. The scope of the annual PRA burden and cost estimates of
the casino AML program requirements in this renewal therefore remains
subdivided as follows: maintaining and updating the AML program
documentation (Activity A); storing the written AML program (Activity
B); \18\ producing a copy of the written AML program if requested by
regulatory examiners or law enforcement (Activity C); and complying
with the requirements in 31 CFR 1021.210(b)(2)(v) and (vi), which are
unique to casino AML program regulations (Activity D).\19\
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\18\ Pursuant to 31 CFR 1021.210(b)(1) and 31 CFR
1021.410(b)(10), respectively, a casino's AML program must be
reduced to writing, and the casino must retain a copy of the
program.
\19\ Pursuant to 31 CFR 1021.210(b)(2)(v), a casino's AML
program must include procedures for using all available information
to determine: (i) when required by 31 CFR Chapter X, a person's
name, address, social security number, and other information, and
verification of the same; (ii) the occurrence of any transaction or
pattern of transactions required to be reported pursuant to 31 CFR
1021.320; and (iii) whether any record described in subpart D of
part 1010 of chapter X must be made and retained. Pursuant to 31 CFR
1021.210(b)(2)(vi), casinos with automated data processing systems
must implement AML programs that provide for the use of automated
programs to aid in assuring compliance.
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For purposes of estimating the casino AML program annual PRA
burden, FinCEN continues to estimate the hourly burden per activity
using the same burden estimates that were used in the 2020 notice to
renew the OMB control number for the casino AML program
requirements.\20\
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\20\ See supra note 14.
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Activity A--FinCEN continues to estimate the incremental
annual PRA burden of maintaining and updating a written AML program at
an average of one hour per casino, consistent with the burden estimate
in the 2020 renewal of this OMB control number and in the renewal of
the AML program requirements for other types of financial institutions
in 2024.\21\
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\21\ See supra note 9.
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Activity B--Required written AML programs are stored as
electronic files. The estimated annual burden (five minutes per
financial institution) represents the administrative burden involved in
processing the storage of the written program. FinCEN continues to
estimate the incremental annual PRA burden of storing an AML program at
an average of five minutes per casino.
Activity C--Producing the written AML program to
regulatory or law enforcement agencies, upon their request, is
performed electronically. Historically, FinCEN has estimated the annual
burden of producing the written program at an average of five minutes
per financial institution. This estimated annual burden represents the
administrative burden involved in producing the program upon request
once per year. FinCEN continues to estimate the incremental annual PRA
burden of producing an AML program at five minutes per casino.
Activity D--In the 2020 renewal of the casino AML program
regulations, FinCEN estimated the annual PRA burden to comply with 31
CFR 1021.210(b)(2)(v) and (vi) would average approximately 99 hours per
casino. FinCEN continues to estimate that the annual incremental PRA
burden of complying with these requirements is 99 hours per casino.\22\
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\22\ If it becomes necessary to consider how to allocate the
burden of Activity D between the activities required by 31 CFR
1021.210(b)(2)(v) and (vi) respectively, FinCEN is of the opinion
that (vi) contributes a de minimis burden to the activity. Pursuant
to 31 CFR 1021.210(b)(2)(vi), ``[f]or casinos that have automated
data processing systems,'' the casino's AML program must provide for
``the use of automated programs to aid in assuring compliance.''
While this may have been a measurable incremental source of burden
in the earlier stages of businesses adopting automated compliance
programs (particularly in the casino industry), FinCEN believes such
programs have since been widely adopted for a variety of sound
business reasons independent of FinCEN regulatory requirements. As
these programs are now effectively ubiquitous in the industry,
FinCEN is of the opinion that they would continue to be used in the
absence of the requirement in 31 CFR 1021.210(b)(2)(vi). However,
FinCEN solicits comments on whether this is the case, and whether as
a result the burden added by (vi) should be regarded as de minimis.
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Under these assumptions, FinCEN's estimate of the annual
incremental PRA burden is 127,912 hours, as detailed in table 2 below.
Table 2--Distribution of the Estimated Total Annual Burden Hours per Requirement
----------------------------------------------------------------------------------------------------------------
Total
Required activities Instances per year Time per instance Number of hourly
casinos burden
----------------------------------------------------------------------------------------------------------------
A. Maintaining and updating the 1 per casino.......... 1 hour................ 1,277 1,277
written AML program.
B. Storing the written AML program. 1 per casino.......... 5 minutes............. 1,277 * 106
C. Producing the AML program upon 1 per casino.......... 5 minutes............. 1,277 * 106
request.
[[Page 65980]]
D. Ongoing compliance with the 1 per casino.......... 99 hours.............. 1,277 126,423
requirements in 31 CFR
1021.210(b)(2)(v) and (vi).
----------------------------
Total hourly burden............ ...................... ...................... .............. 127,912
----------------------------------------------------------------------------------------------------------------
* 106.41 rounded to 106.
FinCEN is utilizing the same fully-loaded composite hourly wage
rate of $106.30 utilized in the 2024 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.\23\
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\23\ 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 (July 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 (June
20, 2024); 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, (June
11, 2024).
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The total estimated cost of the annual PRA burden is
$13,597,045.60, as reflected in table 3 below:
Table 3--Estimated Total Cost of Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
Required activities Burden hours Wage rate Total cost
----------------------------------------------------------------------------------------------------------------
A. Maintaining and updating the written AML program.... 1,277 $106.30 $135,745.10
B. Storing the written AML program..................... 106 106.30 11,267.80
C. Producing the AML program upon request.............. 106 106.30 11,267.80
D. Ongoing compliance with the requirements in 31 CFR 126,423 106.30 13,438,764.90
1021.210(b)(2)(v) and (vi)............................
------------------
Total cost......................................... ................. ................. 13,597,045.60
----------------------------------------------------------------------------------------------------------------
Estimated Number of Respondents: 1,277 casinos, as set out in table
1.
Estimated Total Annual Recordkeeping Burden: The estimated annual
PRA burden is approximately 127,912 hours, as set out in table 2.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is approximately $13,597,045.60, 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.\24\
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\24\ See 31 CFR 1010.430.
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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. 2024-18034 Filed 8-12-24; 8:45 am]
BILLING CODE 4810-02-P
