Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reporting Obligations on Foreign Bank Relationships With Iranian-Linked Financial Institutions Designated Under IEEPA and IRGC-Linked Persons Designated Under IEEPA, 14183-14189 [2025-05349]

Agencies

• DEPARTMENT OF THE TREASURY
• Financial Crimes Enforcement Network

[Federal Register Volume 90, Number 59 (Friday, March 28, 2025)]
[Notices]
[Pages 14183-14189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05349]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal; 
Comment Request; Renewal Without Change of Reporting Obligations on 
Foreign Bank Relationships With Iranian-Linked Financial Institutions 
Designated Under IEEPA and IRGC-Linked Persons Designated Under IEEPA

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 certain existing information collection requirements 
found in Bank Secrecy Act (BSA) regulations. Specifically, the 
regulations require that upon receiving a written request from FinCEN, 
a bank located within the United States that maintains a correspondent 
account for a specified foreign bank must ask the foreign bank, and 
report to FinCEN, about transactions or other financial services 
provided by that foreign bank to Iranian-linked financial institutions 
designated under the International Emergency Economic Powers Act 
(IEEPA) and Islamic Revolutionary Guard Corps (IRGC)-linked persons 
designated under IEEPA. 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 
May 27, 2025.

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-2025-0002 and the specific Office of Management and Budget (OMB) 
control number 1506-0066.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2025-0002 and OMB control number 1506-0066.
    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 by 
submitting an inquiry at www.fincen.gov/contact.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Provisions

    The legislative framework generally referred to as the BSA consists 
of the Currency and Financial 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

[[Page 14184]]

the Anti-Money Laundering of 2020 (AML Act).\2\ The BSA is codified at 
12 U.S.C. 1829b, 12 U.S.C. 1951-1960, 31 U.S.C. 5311-5314 and 5316-
5336, including notes thereto, with implementing regulations at 31 CFR 
chapter X.
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    \1\ Public Law 107-56, 115 Stat. 272 (Oct. 26, 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, Public Law 116-283, 134 Stat. 3388 (Jan. 
1, 2021).
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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 investigations, risk assessments or 
proceedings, or in intelligence or counter-intelligence activities, 
including analysis, to protect against terrorism, and to implement 
anti-money laundering/countering the financing of terrorism (AML/CFT) 
programs and compliance procedures.\3\ The Secretary has delegated to 
the Director of FinCEN (Director) the authority to administer the 
BSA.\4\
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    \3\ See 31 U.S.C. 5311(1)-(2).
    \4\ Treasury Order 180-01 (Reaffirmed Jan. 14, 2020); see also 
31 U.S.C. 310(b)(2)(I) (providing that the Director of FinCEN 
``[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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    The Comprehensive Iran Sanctions, Accountability, and Divestment 
Act of 2010 \5\ (CISADA) amended the Iran Sanctions Act of 1996 \6\ by 
expanding economic sanctions against Iran, and required the Secretary 
to prescribe regulations to establish one or more specific requirements 
for U.S. financial institutions maintaining correspondent accounts for 
foreign financial institutions, in connection with certain statutory 
sanctionable activities.\7\ On October 11, 2011, pursuant to section 
104(e) of CISADA, FinCEN issued a final rule \8\ requiring a bank \9\ 
operating within the United States (U.S. bank) that maintains a 
correspondent account \10\ for a specified foreign bank \11\ to make 
certain inquiries and report certain information about transactions or 
other financial services provided by that foreign bank. U.S. banks are 
only required to report this information upon receiving a specific 
written request from FinCEN (CISADA Request).
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    \5\ Public Law 111-195, 124 Stat. 1312 (July 1, 2010), codified 
at 22 U.S.C. 8501-8551. Implementing regulations are at 31 CFR part 
1060.
    \6\ Public Law 104-172, 110 Stat. 1541 (Aug. 5, 1996) (as 
amended), codified at 50 U.S.C. 1701 note.
    \7\ See CISADA, sections 104(e) and 104(c)(2) (describing 
sanctionable activities).
    \8\ See FinCEN, Comprehensive Iran Sanctions, Accountability, 
and Divestment Reporting Requirements, 76 FR 62607 (Oct. 11, 2011).
    \9\ ``Bank'' is defined in the regulation (31 CFR 
1060.300(a)(1)) by way of 31 CFR 1010.100(d).
    \10\ ``Correspondent account'' is defined in the regulation (31 
CFR 1060.300(a)(1)) by way of 31 CFR 1010.605(c)(1)(ii).
    \11\ ``Foreign bank'' is defined in the regulation (31 CFR 
1060.300(a)(1)) by way of 31 CFR 1010.100(u).
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(a) General CISADA Requirements for a U.S. Bank 12
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    \12\ 31 CFR 1060.300(a).
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    Upon receiving a CISADA Request, a U.S. bank that maintains a 
correspondent account for a specified foreign bank is required to make 
certain inquiries and provide a report to FinCEN (CISADA Report) of: 
(i) any correspondent account maintained by such foreign bank for an 
Iranian-linked financial institution designated under IEEPA (Iranian-
linked financial institution); \13\ (ii) any direct or indirect 
transfer of funds for or on behalf of an Iranian-linked financial 
institution processed by such foreign bank within the preceding 90 
calendar days, other than through a correspondent account; (iii) and 
any direct or indirect transfer of funds for or on behalf of an IRGC-
linked person designated under IEEPA (IRGC-linked person) \14\ 
processed by such foreign bank within the preceding 90 calendar days.
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    \13\ The International Emergency Economic Powers Act of 1977 
(IEEPA), Pubic Law 95-223, 91 Stat. 1626 (Dec. 28, 1977), codified 
at 50 U.S.C. 1701 et seq. For purposes of 31 CFR 1060.300, 
``Iranian-linked financial institution designated under IEEPA'' 
means a financial institution designated by the U.S. Government 
pursuant to IEEPA (or listed in an annex to an Executive order 
issued pursuant to IEEPA) in connection with Iran's proliferation of 
weapons of mass destruction or delivery systems for weapons of mass 
destruction, or in connection with Iran's support for international 
terrorism.
    \14\ For purposes of 31 CFR 1060.300, an ``IRGC linked person 
designated under IEEPA'' means the IRGC or any of its agents or 
affiliates designated by the U.S. Government pursuant to IEEPA (or 
listed in an annex to an Executive order issued pursuant to IEEPA).
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(b) Specific CISADA Requirements for a U.S. Bank: Duty To Inquire 
15
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    \15\ 31 CFR 1060.300(b).
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    Upon receiving a CISADA Request, a U.S. bank that maintains a 
correspondent account for a specified foreign bank has a duty to 
inquire and request that a specified foreign bank certify whether the 
foreign bank: (i) maintains a correspondent account for an Iranian-
linked financial institution; (ii) has processed one or more transfers 
of funds within the preceding 90 calendar days, for or on behalf of, 
directly or indirectly, an Iranian-linked financial institution, other 
than through a correspondent account; (iii) has processed one or more 
transfer of funds within the preceding 90 calendar days, for or on 
behalf of, directly or indirectly, an IRGC-linked person. Upon such 
inquiry, a U.S. bank shall request that the foreign bank agree to 
notify the U.S. bank if the foreign bank subsequently establishes a new 
correspondent account for an Iranian-linked financial institution at 
any time within 365 calendar days from the date of the foreign bank's 
initial response to the U.S. bank.
    There is an optional CISADA certification form U.S. banks may use 
to obtain the necessary information from specified foreign banks.\16\
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    \16\ See Optional CISADA Certification Form, available at 
https://www.fincen.gov/sites/default/files/federal_register_notice/CISADA_Certification.pdf.
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(c) Specific CISADA Requirements for a U.S. Bank: CISADA Reporting 
Requirements 17
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    \17\ 31 CFR 1060.300(c).
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    Upon receiving a CISADA Request, a U.S. bank is required to report 
to FinCEN certain information for any specified foreign bank for which 
the U.S. bank maintains correspondent accounts:
    1. Certain U.S. bank CISADA reporting requirements when a foreign 
bank maintains a correspondent account for, or has processed one or 
more transfers of funds for, an Iranian-linked financial institution.
    a. The name of any foreign bank that certifies to the U.S. bank 
that the foreign bank maintains a correspondent account for an Iranian-
linked financial institution, and the following related information: 
(i) the name of the Iranian-linked financial institution; (ii) the full 
name(s) on the correspondent account and the correspondent account 
number(s); (iii) any information regarding whether the correspondent 
account has been blocked or restricted; (iv) other applicable 
identifying information for the correspondent account; and (v) the 
approximate value in U.S. dollars of transactions processed through the 
correspondent account within the preceding 90 calendar days; \18\
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    \18\ 31 CFR 1060.300(c)(1)(i).
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    b. The name of any foreign bank that certifies to the U.S. bank 
that the foreign bank has processed one or more transfers of funds 
within the preceding 90 calendar days for or on behalf of, directly or 
indirectly, an Iranian-linked financial institution, other than through 
a correspondent account, and the following related information: (i) the 
name of the Iranian-linked financial institution; (ii) the identity of 
the system or means by which such transfer(s) of funds was processed; 
(iii) the full name

[[Page 14185]]

on the account(s) and the account number(s), if applicable; (iv) other 
applicable identifying information for such transfer(s) of funds; and 
(v) the approximate value in U.S. dollars of such transfer(s) of funds 
processed within the preceding 90 calendar days; \19\
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    \19\ 31 CFR 1060.300(c)(1)(ii).
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    2. Certain U.S. bank CISADA reporting requirements when a specified 
foreign bank has processed one or more transfers of funds for an IRGC-
linked person.
    a. The name of any foreign bank that certifies to the U.S. bank 
that the foreign bank has processed one or more transfers of funds 
within the preceding 90 calendar days for or on behalf of, directly or 
indirectly, an IRGC-linked person, and the following related 
information: (i) the name of the IRGC-linked person; (ii) the identity 
of the system or means by which such transfer(s) of funds was 
processed; (iii) the full name on the account(s) and the account 
number(s), if applicable; (iv) other applicable identifying information 
for such transfer(s) of funds; and (v) the approximate value in U.S. 
dollars of such transfer(s) of funds processed within the preceding 90 
calendar days; \20\
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    \20\ 31 CFR 1060.300(c)(1)(iii).
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    3. Certain U.S. bank CISADA reporting requirements when a specified 
foreign bank does not maintain a correspondent account for and has not 
processed one more transfers of funds for, an Iranian-linked financial 
institution or an IRGC-linked person.
    a. The name of any specified foreign bank that certifies to the 
U.S. bank that: (i) the foreign bank does not maintain a correspondent 
account for an Iranian-linked financial institution; (ii) to the 
knowledge of the foreign bank, the foreign bank has not processed one 
or more transfers of funds within the preceding 90 calendar days for or 
on behalf of, directly or indirectly, an Iranian-linked financial 
institution, other than through a correspondent account; and/or (ii) to 
the knowledge of the foreign bank, the foreign bank has not processed 
one or more transfers of funds within the preceding 90 calendar days 
for or on behalf of, directly or indirectly, an IRGC-linked person; 
\21\
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    \21\ 31 CFR 1060.300(c)(1)(iv).
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    4. Certain U.S. bank CISADA reporting requirements when a U.S. bank 
cannot determine whether a specified foreign bank maintains a 
correspondent account for, or has processed one or more transfers of 
funds for, an Iranian-linked financial institution or an IRGC-linked 
person.
    a. The name of any specified foreign bank for which the U.S. bank 
is unable to determine if the foreign bank: (i) does not maintain a 
correspondent account for an Iranian-linked financial institution; (ii) 
has not processed one or more transfers of funds within the preceding 
90 calendar days for or on behalf of, directly or indirectly, an 
Iranian-linked financial institution, other than through a 
correspondent account; and/or (iii) has not processed one or more 
transfers of funds within the preceding 90 calendar days for or on 
behalf of, directly or indirectly an IRGC-linked person.\22\
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    \22\ 31 CFR 1060.300(c)(1)(v).
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    b. The U.S. bank must also include the reason(s) the U.S. bank 
cannot make these determinations, such as the failure of the foreign 
bank to respond, or the U.S. bank has information inconsistent with the 
foreign bank's certification; \23\
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    \23\ Id.
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    5. Certain U.S. bank CISADA reporting requirements when a specified 
foreign bank establishes a new correspondent account for an Iranian-
linked financial institution.
    a. The name of any specified foreign bank that notifies the U.S. 
bank that the foreign bank has established a new correspondent account 
for an Iranian-linked financial institution at any time within 365 
calendar days from the date of the foreign bank's initial response to 
the U.S. bank's request for the foreign bank's certification; \24\ and 
the following related information:
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    \24\ 31 CFR 1060.300(c)(1)(vi).
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    b. (i) the name of the Iranian-linked financial institution; (ii) 
the full name(s) on the correspondent account and the correspondent 
account number(s); (iii) applicable information regarding whether the 
correspondent account has been blocked or restricted; and (iv) other 
applicable identifying information for the correspondent account; \25\
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    \25\ Id.
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    6. Certain U.S. bank CISADA reporting requirements when a U.S. bank 
does not maintain a correspondent account for a specified foreign bank 
in a CISADA Request.
    a. If applicable, confirmation that the U.S. bank does not maintain 
a correspondent account for the foreign bank(s) specified in the CISADA 
Request, but only in instances in which FinCEN specifically requests 
that the U.S. bank report such information; \26\ and
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    \26\ 31 CFR 1060.300(c)(1)(vii).
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    7. U.S. bank CISADA reporting requirements when foreign bank 
certification is received after the 45-calendar day reporting window in 
the CISADA Request.
    a. If applicable, the name of any foreign bank that provides a 
certification to the U.S. bank more than 45 calendar days after the 
date of the CISADA Request, along with all applicable related 
information associated with that certification.\27\
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    \27\ 31 CFR 1060.300(c)(1)(viii).
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(d) Specific CISADA Reporting Requirements for a U.S. Bank: CISADA 
Reporting Deadlines 28
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    \28\ 31 CFR 1060.300(c)(2).
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    A U.S. bank must report the requested CISADA information within 45 
calendar days of receipt of a CISADA Request.\29\ A U.S. bank must also 
report within 10 calendar days of receipt of any subsequent 
notification received from a foreign bank regarding the establishment 
of a new correspondent account for an Iranian-linked financial 
institution.\30\ For any foreign bank certifications received after the 
45-calendar day deadline, a U.S. bank is required to report within 10 
calendar days of receipt of the foreign bank certification.\31\
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    \29\ 31 CFR 1060.300(c)(2)(i).
    \30\ 31 CFR 1060.300(c)(2)(ii).
    \31\ 31 CFR 1060.300(c)(2)(iii).
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(e) U.S. Bank Record Retention Requirements 32
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    \32\ 31 CFR 1060.300(d).
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    A U.S. bank must maintain a copy of any CISADA Report and the 
original or any business record equivalent of any supporting 
documentation for a CISADA Report, including a foreign bank 
certification or other responses to an inquiry for a period five 
years.\33\
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    \33\ Id.
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(f) A U.S. Bank Remains Subject to Applicable BSA Requirements 
34
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    \34\ 31 CFR 1060.300(e).
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    Nothing under 31 CFR 1060.300 shall be construed to require a U.S. 
bank to take any action, or to decline to take any action, other than 
the requirements identified in 31 CFR 1060.300, with respect to an 
account established for, or a transaction engaged in with, a foreign 
bank. A U.S. bank subject to a CISADA Request remains subject to any 
applicable program, recordkeeping, and reporting requirements under the 
BSA and FinCEN's implementing regulations in 31 CFR chapter X.\35\
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    \35\ Id.

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[[Page 14186]]

II. Paperwork Reduction Act of 1995 (PRA) 36
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    \36\ Public Law 104-13, 109 Stat. 163 (May 22, 1995), codified 
at 44 U.S.C. 3506(c)(2)(A).
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    Title: Reporting obligations on foreign bank relationships with 
Iranian-linked financial institutions designated under IEEPA and IRGC-
linked persons designated under IEEPA (31 CFR 1060.300).
    OMB Control Number: 1506-0066.
    Form Number: Optional form--certification for purposes of section 
104(e) of CISADA and 31 CFR 1060.300.
    Abstract: FinCEN is issuing this notice to renew the OMB control 
number for the CISADA regulations that require, upon receiving a CISADA 
Request, a U.S. bank that maintains a correspondent account for a 
specified foreign bank to inquire with the foreign bank and report to 
FinCEN with respect to transactions or other financial services 
provided by that foreign bank to Iranian-linked financial institutions 
and IRGC-linked persons.
    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 Potential Respondents: 9,384 banks.\37\
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    \37\ Table 1 below sets forth a breakdown of the number of U.S. 
banks, as defined in 31 CFR 1010.100 and as grouped in 31 CFR 
1020.210, that are required to comply with 31 CFR 1060.300. However, 
note that not all U.S. banks maintain correspondent accounts for 
foreign banks. As a result, in practice, the regulations are not 
likely to require responses from U.S. banks that do not maintain 
correspondent accounts for foreign banks. For that reason, FinCEN 
also estimates the number of U.S. banks that maintain correspondent 
accounts for foreign banks in table 2 below.
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    The types of banks covered by this notice are ``banks'' as defined 
in 31 CFR 1010.100(d), which includes each agent, agency, branch or 
office within the United States of any person doing business in one or 
more of the capacities listed below:
    (1) a commercial bank or trust company organized under the laws of 
any State or of the United States;
    (2) a private bank;
    (3) a savings and loan association or a building and loan 
association organized under the laws of any State or of the United 
States;
    (4) an insured institution as defined in section 401 of the 
National Housing Act;
    (5) a savings bank, industrial bank or other thrift institution;
    (6) A credit union organized under the law of any State or of the 
United States;
    (7) any other organization (except a money services business) 
chartered under the banking laws of any state and subject to the 
supervision of the bank supervisory authorities of a State;
    (8) a bank organized under foreign law;
    (9) any national banking association or corporation acting under 
the provisions of section 25(a) of the Federal Reserve Act of Dec. 23, 
1913, as added by the Edge Act of Dec. 24, 1919, ch. 18, 41 Stat. 378, 
as amended (12 U.S.C. 611-32).
    FinCEN notes that these banks, as defined in 31 CFR 1010.100(d), 
are subject to the Anti-money Laundering (AML) Program Requirements for 
Banks at 31 CFR 1020.210,\38\ which includes two broad subcategories of 
banks: banks regulated by a Federal functional regulator \39\ and banks 
lacking a Federal functional regulator.\40\ For purposes of consistency 
and comparability across FinCEN rulemaking activities,\41\ and to 
enhance the parsimony and readability of data, the population of 
potential respondents is therefore presented using the subcategories as 
delineated in 31 CFR 1020.210 in table 1 below. Table 1 presents an 
estimate of the total population of entities that could each 
individually incur the recordkeeping and reporting burdens associated 
with receiving a CISADA Request. However, because making such requests 
is discretionary and occurs at low frequency, FinCEN anticipates that 
the estimated number of potential respondents will continue to vastly 
exceed the estimated number of expected respondents, as it has 
historically based on FinCEN's experience with CISADA Requests.
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    \38\ 31 CFR 1020.210 is titled ``Anti-Money Laundering Program 
Requirements for Banks.'' See 31 CFR 1010.100(d) (defining 
``banks'').
    \39\ 31 CFR 1020.210(a). See also 31 CFR 1010.100(r) for list of 
Federal functional regulators (as defined in section 509 of the 
Gramm-Leach-Bliley Act (12 U.S.C. 6809)).
    \40\ 31 CFR 1020.210(b).
    \41\ See, e.g., FinCEN, Anti-Money Laundering and Countering the 
Financing of Terrorism Programs Notice of Proposed Rulemaking, 89 FR 
55428 (Jul. 3, 2024); FinCEN, 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, 89 FR 65012 (Aug. 8, 
2024); and FinCEN, Agency Information Collection Activities; 
Proposed Renewal; Comment Request: Renewal Without Change of 
Purchases of Bank Checks and Drafts, Cashier's Checks, Money Orders, 
and Traveler's Checks, 89 FR 76187 (Sept. 17, 2024).

 Table 1--Distribution of U.S. Banks Required To Comply With This Notice
------------------------------------------------------------------------
                                                          Number of U.S.
                    Type of U.S. bank                          banks
------------------------------------------------------------------------
Banks with a Federal functional regulator (FFR).........       \a\ 8,989
Banks lacking an FFR....................................         \b\ 395
                                                         ---------------
    Total...............................................           9,384
------------------------------------------------------------------------
\a\ This includes 4,490 Federal Deposit Insurance Corporation (FDIC)-
  insured depository institutions (i.e., federally regulated banks)
  according to the FDIC's quarterly data summary for Q4 2024, and 4,499
  National Credit Union Administration (NCUA)-chartered credit unions
  (i.e. federally regulated credit unions) according to NCUA's quarterly
  credit union data summary for Q4 2024.
\b\ The Board of Governors of the Federal Reserve System Master Account
  and Services Database contains data on financial institutions that
  utilize Federal Reserve Bank financial services, including those with
  no Federal functional regulator. FinCEN used this data to identify 395
  banks and credit unions utilizing Reserve Bank financial services with
  no federal regulator.

    Estimated Number of Expected Respondents: 24 U.S. banks, annually.
    FinCEN intends to continue to send CISADA Requests directly to U.S. 
banks that, based on all available information, it has reason to 
believe may maintain correspondent accounts for a specified foreign 
bank. Therefore, while the regulation applies to all U.S. banks, a 
CISADA request should, in practice, only impose reporting and 
recordkeeping costs on select U.S. banks with indicia of past, ongoing, 
or foreseeable future relationships with a specified foreign bank. For 
purposes of assessing potential PRA burden, FinCEN, in the agency's 
view, is making a conservative estimate with respect to the number of 
U.S. banks that may maintain a correspondent account for a specified 
foreign bank in a CISADA Request by assuming that any U.S. bank that 
maintains a correspondent account for any foreign bank could be an 
affected bank under the rule. Table 2 presents an estimate of this 
subpopulation of U.S. banks below based on available data from the 
third quarter of the most recently ended calendar year (2024).

  Table 2--Distribution of Potentially Affected Financial Institutions
         That Maintain Correspondent Accounts for Foreign Banks
------------------------------------------------------------------------
                                                             Number of
              Type of financial institution                  financial
                                                           institutions
------------------------------------------------------------------------
Banks with an FFR.......................................          \a\ 60

[[Page 14187]]

 
Banks lacking an FFR....................................          \b\ 12
                                                         ---------------
    Total...............................................              72
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\a\ Data are from the Federal Financial Institution Examination Council
  Central Data Repository for Reports of Condition and Income (Call
  Reports) and Uniform Bank Performance Reports (UBPRs), available for
  most FDIC-insured institutions. Using this source of data, FinCEN
  determines that as of third quarter (Q3) in 2024, approximately 60
  banking organizations (national and state banks, trusts, thrifts and
  savings and loans, branches and agencies of foreign banking
  organizations, representative offices, Edge Act corporations, and
  agreement corporations) will be affected by this rule on any given
  year. Specifically, we determine that there are approximately 60
  entities (U.S. banks; national and state chartered, trusts, savings
  and loans, thrifts; branches and agencies of foreign banks; Edge Act
  corporations; and agreement corporations) that report values for
  deposit liabilities of banks in foreign countries. Deposit liabilities
  in a foreign country is an indication that a bank maintains
  correspondent accounts with a foreign financial institution. Credit
  unions, due to chartering restrictions, do not typically maintain
  foreign correspondent accounts.
\b\ The Board of Governors of the Federal Reserve System Master Account
  and Services Database contains data on financial institutions that
  utilize Reserve Bank financial services, including those with no
  federal regulator. FinCEN used this data to identify an additional 12
  international banking entities with no federal regulator and who do
  not file Call Reports, but who are also likely to maintain
  correspondent accounts with a foreign financial institution.

    Historically, since the CISADA regulations were implemented in 
2011, FinCEN has used this authority in limited circumstances for a 
variety of reasons that has, in turn, limited the number of U.S. banks 
that have received a CISADA Request. Moreover, prior to issuing a 
CISADA Request, FinCEN evaluates and relies on, to the extent possible, 
information available to the Department of the Treasury (Treasury), or 
publicly available, to further identify and narrow the list of U.S. 
banks likely to maintain a correspondent account with a specified 
foreign bank. Both low historical volumes of CISADA Requests and other 
practices that limit the number of U.S. banks receiving a CISADA 
Request support FinCEN conservative estimates of a lower number of 
affected U.S. banks. For those reasons, FinCEN finds it unlikely that 
many of the 72 banks identified in table 2 would receive a CISADA 
Request. Thus, FinCEN assumes that each of the maximum number of U.S. 
banks estimated to receive a CISADA Request (expected respondents) 
would not receive more than one CISADA Request every three years, which 
is a time frame based on the PRA requirement to renew this OMB control 
number (1506-0066) every three years. This approach equates to an 
average maximum of 24 expected respondents per year.\42\
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    \42\ If 72 U.S. banks each receive one request over the course 
of a three-year period, that equates to 24 U.S. banks receiving a 
CISADA Request each year (72 banks/3 years).
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    Estimated Number of Responses: 72 CISADA Reports.
    As described above, a CISADA Request issued by FinCEN may pertain 
to one or more specified foreign bank(s), thereby engendering the need 
for a U.S. bank to provide one or more CISADA Report(s), responsively. 
Additionally, CISADA Reports associated with the same CISADA Request 
may vary in length and detail. For example, in certain instances, 
FinCEN may request that if a U.S. bank receives a CISADA Request, and 
the U.S. bank does not maintain a correspondent account for a specified 
foreign bank, the U.S. bank may still be required to report this 
information to FinCEN.\43\ Such a CISADA Report may be considerably 
shorter than if the U.S. bank did maintain a correspondent account for 
a specified foreign bank. Similarly, if a U.S. bank does maintain a 
correspondent account for a specified foreign bank, but that specified 
foreign bank is able to certify that the foreign bank does not provide 
any financial services to Iranian-linked financial institutions and 
IRGC-linked persons, the associated CISADA Report would be shorter than 
if such financial services had been provided.
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    \43\ See 31 CFR 1060.300(c)(1)(vii).
---------------------------------------------------------------------------

    Because FinCEN has used its authority to make CISADA Requests in 
limited circumstances and given its data from previous CISADA Requests, 
FinCEN estimates that it will make CISADA Requests to U.S. banks that 
include no more than approximately three foreign banks per year, on 
average, in each CISADA Request. Thus, if up to 24 U.S. banks, which 
may maintain correspondent accounts for specified foreign banks are 
required to respond to CISADA Requests that identify on average three 
specified foreign banks annually, FinCEN would expect to receive up to 
72 CISADA Reports per year, on average.
    Estimated Reporting and Recordkeeping Burden: To estimate the 
annual PRA burden and cost of complying with 31 CFR 1060.300, the 
CISADA Reports are divided into two categories: (i) CISADA Reports 
submitted by U.S. banks that maintain correspondent accounts for 
specified foreign banks; and (ii) CISADA Reports submitted by U.S. 
banks that do not maintain correspondent accounts for specified foreign 
banks.
    (i) CISADA Reports submitted by U.S. banks that maintain 
correspondent accounts for specified foreign banks.
    Each time a U.S. bank receives a CISADA Request for which the U.S. 
bank maintains a correspondent account for a specified foreign bank, 
FinCEN has historically estimated that the U.S. bank \44\ will incur 
the following burden per request:
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    \44\ FinCEN's estimates have, to date, been restricted to the 
anticipated burden to a given U.S. bank of (1) relaying FinCEN's 
request for data to the foreign banks for which it maintains 
correspondent accounts and (2) transmitting the information reported 
by the foreign bank back to FinCEN. As such, the primary reporting 
and recordkeeping burdens, which accrue to the foreign bank in 
preparing and providing reports and certifications to its U.S. bank, 
are not included in these burden estimates. FinCEN is asking the 
public for further information, data, and comments with respect this 
approach in the additional requests for comment below.
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     31 CFR 1060.300(b)--one hour per U.S. bank to inquire of a 
foreign bank, because the U.S. bank can send the optional certification 
form to the foreign bank;
     31 CFR 1060.300(c)--one hour per U.S. bank to report to 
FinCEN the foreign bank's response to the U.S. bank's inquiry, because 
the U.S. bank can submit the response from the foreign bank to FinCEN 
electronically; and
     31 CFR 1060.300(d)--one hour per U.S. bank to maintain a 
record of its report to FinCEN and any supporting documentation for the 
report, including a foreign bank certification or other response to the 
U.S. bank's inquiry.
    These estimates result in a total estimated average burden of three 
hours for each CISADA Report submitted by a U.S. bank that maintains a 
correspondent account for a specific foreign bank.\45\
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    \45\ Three burden hours per U.S. bank with respect to each 
CISADA Report is the summation of one hour each to comply with 31 
CFR 1060.300(b), 31 CFR 1060.300(c), and 31 CFR 1060.300(d).
---------------------------------------------------------------------------

    (ii) CISADA Reports submitted by U.S. banks that do not maintain 
correspondent accounts for specified foreign banks.
    FinCEN has historically estimated that the average reporting burden 
for a U.S. bank that does not maintain a correspondent account for a 
specified foreign bank will be approximately 30 minutes per report 
responsive to a CISADA Request. This estimate is based

[[Page 14188]]

on the ease of electronically filing CISADA Reports with FinCEN.
    To determine the total annual PRA burden associated with 24 CISADA 
Requests,\46\ FinCEN estimated the distribution of CISADA Reports by 
respective categories that would be submitted by U.S. banks responsive 
to such requests. This required imposing assumptions about the ratio of 
reports that are anticipated to come from U.S. banks that maintain 
correspondent accounts for specified foreign banks (category (i) 
above), versus CISADA Reports submitted by U.S. banks that do not 
maintain correspondent accounts for specified foreign banks (category 
(ii) above).\47\ Informed by data from historical requests, FinCEN 
conservatively assumes that one CISADA Request would inquire about a 
U.S. bank's maintenance of correspondent accounts for three specified 
foreign banks. FinCEN further assumes that a U.S. bank would maintain 
two of the three foreign banks in the CISADA Request as correspondent 
accounts resulting in two lengthier CISADA Reports, as described in the 
category (i) burden discussion above. FinCEN also assumes that a U.S. 
bank would not maintain a correspondent account for one of the three 
foreign banks in the CISADA Request but would nevertheless incur the 
reporting burden as described in category (ii) above. Consequently, of 
the 72 CISADA Reports estimated to be submitted annually, approximately 
48 CISADA Reports would pertain to a U.S. bank that maintains a 
correspondent account for a specified foreign bank and 24 CISADA 
Reports would come from a U.S. bank that does not maintain a 
correspondent account for a specified foreign bank.\48\
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    \46\ See footnote 42.
    \47\ For purposes of estimation, FinCEN assumes that in all 
cases when a U.S. bank does not maintain of correspondent account 
for a specified foreign bank included in a received CISADA Request, 
the U.S. bank would be required to report this information to 
FinCEN, though this need not be true in all cases.
    \48\ Two thirds of 72 CISADA Reports equates to 48 CISADA 
Reports submitted by U.S. banks that maintain a correspondent 
account for a specified foreign bank. One third of 72 CISADA Reports 
equates to 24 CISADA Reports submitted by U.S. banks that do not 
maintain a correspondent account for a specified foreign bank.
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    FinCEN's estimate of the annual PRA burden, therefore, is 156 
hours, as detailed in table 3 below:

 Table 3--Estimated Hourly Burden Associated With the Reporting and Recordkeeping Activities of 31 CFR 1060.300
----------------------------------------------------------------------------------------------------------------
                                        Annual number of
         CISADA report type                 responses          Burden hours per response     Annual burden hours
----------------------------------------------------------------------------------------------------------------
CISADA Reports submitted by a U.S.                      48  3 hours.......................                   144
 bank that maintains a correspondent
 account for a specified foreign
 bank.
CISADA Reports submitted by a U.S.                      24  30 minutes....................                    12
 bank that does not maintain a
 correspondent account for a
 specified foreign bank.
                                     ---------------------------------------------------------------------------
    Total...........................                    72  ..............................                   156
----------------------------------------------------------------------------------------------------------------

    To estimate the costs associated with the annual PRA burden hours, 
FinCEN is utilizing a fully loaded composite hourly wage rate of 
$120.07, or, rounded to the nearest dollar, $120.00.\49\ The total 
estimated cost of the annual PRA burden is $18,720, as reflected in 
table 4 below.
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    \49\ The wage rate applied here is a general composite hourly 
wage ($85.55), scaled by a private-sector benefits factor of 1.42 
($120.07 = $85.55 x 1.42), that incorporates the mean wage data 
(available for download at https://www.bls.gov/oes/tables.htm, ``May 
2023--National industry-specific and by ownership'') associated with 
the six occupational codes (11-1010: Chief Executives; 11-3021: 
Computer and Information Systems Managers; 11-3031: Financial 
Managers; 13-1041: Compliance Officers; 23-1010: Lawyers and 
Judicial Law Clerks; 43-3099: Financial Clerks, All Other) for each 
of the nine groupings of NAICS industry codes that FinCEN determined 
are most directly comparable to its eleven categories of covered 
financial institutions as delineated in 31 CFR chapter X parts 1020 
to 1030. The benefit factor is 1 plus the benefit/wages ratio, 
where, as of June 2023, Total Benefits = 29.4 and Wages and salaries 
= 70.6 (29.4/70.6 = 0.42) based on the private industry workers 
series data downloaded from https://www.bls.gov/news.release/archives/ecec_09122023.pdf, accessed December 22, 2024. Given that 
many occupations provide benefits beyond cash wages (e.g., 
insurance, paid leave, etc.), the private sector benefit is applied 
to reflect the total cost to the employer.

                                    Table 4--Total Cost of Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
                       CISADA report type                          Burden hours      Wage rate      Total cost
----------------------------------------------------------------------------------------------------------------
CISADA Reports submitted by a U.S. bank that maintains a                 \a\ 144      \b\ 120.00         $17,280
 correspondent accounts for a specified foreign bank............
CISADA Reports submitted by a U.S. bank that does not maintain a          \c\ 12          120.00           1,440
 correspondent account for a specified foreign bank.............
                                                                 -----------------------------------------------
    Total.......................................................             156  ..............          18,720
----------------------------------------------------------------------------------------------------------------
\a\ See table 3 above.
\b\ See footnote 48.
\c\ See table 3 above.

    Estimated Total Annual Recordkeeping and Reporting Burden: The 
estimated total annual PRA burden is 156 hours, as set out in table 3.
    Estimated Total Annual Recordkeeping and Reporting Cost: The 
estimated total annual PRA cost is $18,720, as set out in table 4.
    Under the PRA, FinCEN as a Federal 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.
    Requests for Comment: Comments submitted in response to this notice 
will

[[Page 14189]]

be summarized and/or included in the request for OMB approval. All 
comments will become a matter of public record.
    General Request for Comments--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 FinCEN estimates 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.
    Additional Requests for Comment--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. To assist with those 
activities, FinCEN is also requesting comments in response to the 
following additional questions:
    (1) To what extent do estimates that exclude the reporting and 
recordkeeping burdens on foreign banks potentially underestimate the 
full PRA burden associated with this control number?
    (2) Should FinCEN revise its PRA burden estimates to account for 
the burden on affected foreign banks? Why or why not? If so, please 
suggest sources or provide data that would facilitate this update.
    (3) Please provide comment, preferably including, or with reference 
to, the data relied upon to make such comments, on FinCEN's estimates 
of banks that maintain correspondent accounts for foreign banks. In 
particular, FinCEN invites public feedback on:
    (a) The general accuracy of its population estimates.
    (b) Further information about the distribution of potentially 
affected U.S. Banks, such as meaningful differences in size or ability 
to incur the reporting and recordkeeping requirements associated with 
FinCEN regulation.

Andrea M. Gacki,
Director, Financial Crimes Enforcement Network.
[FR Doc. 2025-05349 Filed 3-27-25; 8:45 am]
BILLING CODE 4810-02-P