Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reports of Transactions With Foreign Financial Agencies, 22157-22163 [2025-09310]

Download as PDF Federal Register / Vol. 90, No. 99 / Friday, May 23, 2025 / Notices notice (DOT/ALL–14 FDMS), which can be reviewed at https:// www.transportation.gov/privacy. See also https://www.regulations.gov/ privacy-notice for the privacy notice of regulations.gov. Issued in Washington, DC. John Karl Alexy, Associate Administrator for Railroad Safety, Chief Safety Officer. [FR Doc. 2025–09282 Filed 5–22–25; 8:45 am] BILLING CODE 4910–06–P DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reports of Transactions With Foreign Financial Agencies 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 certain existing information collection requirements found in Bank Secrecy Act (BSA) regulations. Specifically, the regulations authorize the Secretary of the Treasury, as appropriate, to promulgate regulations requiring specified financial institutions to file reports with the Financial Crimes Enforcement Network (FinCEN) of certain transactions with designated foreign financial agencies. Although no changes are proposed to the information collection itself, this request for comments covers proposed changes in the methods that FinCEN uses to estimate reporting and recordkeeping burdens. 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 July 22, 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– 0006 and Office of Management and Budget (OMB) control number 1506– 0055. • Mail: Policy Division, Financial Crimes Enforcement Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket ddrumheller on DSK120RN23PROD with NOTICES1 SUMMARY: VerDate Sep<11>2014 16:58 May 22, 2025 Jkt 265001 Number FINCEN–2025–0006 and OMB control number 1506–0055. Please submit comments by one method only. Comments will generally become a matter of public record. For this reason, please do not include in your comments information of a confidential nature, such as sensitive personal information or proprietary information. A comment about the burden posed to a financial institution by a specific regulation requiring the reporting of certain transactions with designated foreign financial agencies, issued under the general regulation that is the subject of this notice, but that does not describe in detail the specific regulation or the reporting requirement imposed by that specific regulation, will not be considered to contain confidential information. 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 Foreign Transactions Reporting Act of 1970,1 as amended by the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act),2 and other legislation, including the Anti-Money Laundering Act of 2020 (AML Act).3 The BSA is codified at 12 U.S.C. 1829b, and 1951–1960; 31 U.S.C. 5311–5314, and 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 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.4 The Secretary has delegated to the Director of FinCEN 1 Title II of Public Law 91–508, 84 Stat. 1118 (Oct. 26, 1970). 2 Public Law 107–56, 115 Stat. 272 (Oct. 26, 2001). 3 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). 4 See 31 U.S.C. 5311(1)–(2). PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 22157 (Director) the authority to administer the BSA.5 The Secretary is authorized to require any ‘‘resident or citizen of the United States or a person in, and doing business in, the United States, to keep records, file reports, or keep records and file reports, when the resident, citizen, or person makes a transaction or maintains a relation for any person with a foreign financial agency.’’ 6 The term ‘‘foreign financial agency’’ 7 (FFA) applies to an action outside the United States of a ‘‘financial agency,’’ which the statute defines as ‘‘a person acting for a person . . . as a financial institution, bailee, depository trustee, or agent, or acting in a similar way related to money, credit, securities, gold, a transaction in money, credit, securities or gold, or a service provided with respect to money, securities, futures, precious metals, stones and jewels, or value that substitutes for currency.’’ 8 The Secretary is also authorized to prescribe exemptions to the reporting requirement and to prescribe other matters the Secretary considers necessary to carry out 31 U.S.C. 5314.9 The regulations implementing these authorities to require reports of transactions with FFAs are found at 31 CFR 1010.360. Briefly, 31 CFR 1010.360(a) generally authorizes the Secretary, when the Secretary deems appropriate, to promulgate specific regulations (FFA Regulations) under which specified financial institutions 10 must file reports of certain transactions with designated FFAs.11 An FFA Regulation must 5 Treasury Order 180–01 (Reaffirmed Jan. 14, 2020); see also 31 U.S.C. 310(b)(2)(I) (providing that the Director of FinCEN shall ‘‘[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.’’). 6 31 U.S.C. 5314(a). 7 31 U.S.C. 5312(b)(2). 8 See 31 U.S.C. 5312(a)(1) as amended by 6102 (d)(1)(A) of the AML Act. The definition of financial agency exempts a person acting for a country, a monetary or financial authority acting as a monetary or financial authority, or an international financial institution of which the United States Government is a member. 9 See 31 U.S.C. 5314(b)(1) and (5). 10 31 CFR 1010.100(t). 11 If such a regulation is issued as a final rule without notice and opportunity for public comment, then a finding of good cause for dispensing with notice and comment in accordance with 5 U.S.C. 553(b) must be included in the regulation. If the regulation is not published in the Federal Register, then any financial institution subject to the regulation must be named and personally served or otherwise given actual notice in accordance with 5 U.S.C. 553(b). If a financial institution is given notice of a reporting requirement by means other than publication in the E:\FR\FM\23MYN1.SGM Continued 23MYN1 22158 Federal Register / Vol. 90, No. 99 / Friday, May 23, 2025 / Notices designate one or more of the following categories of information to be reported by the specified financial institution(s): • checks or drafts, including traveler’s checks, received by a respondent financial institution for collection or credit to the account of a designated FFA, sent by the respondent financial institution to a foreign country for collection or payment, drawn by the respondent financial institution on a designated FFA, drawn by a designated FFA on the respondent financial institution, including the following information: name of maker or drawer; name of drawee or drawee financial institution; name of payee; date and amount of instrument; and names of all endorsers; 12 • transmittal orders received by a respondent financial institution from a designated FFA or sent by respondent financial institution to a designated FFA, including all information maintained by that institution pursuant to 31 CFR 1010.410 and 1020.410; 13 • loans made by respondent financial institution to or through a designated FFA, including the following information: name of borrower; name of person acting for borrower; date and amount of loan; terms of repayment; name of guarantor; rate of interest; method of disbursing proceeds; and collateral for loan; 14 • commercial paper received or shipped by the respondent financial institution, including the following information: name of maker; date and amount of paper; due date; certificate number; and amount of transaction; 15 • stocks received or shipped by respondent financial institution, including the following information: name of corporation; type of stock; certificate number; number of shares; date of certificate; name of registered holder; and amount of transaction; 16 • bonds received or shipped by respondent financial institution, including the following information: name of issuer; bond number; type of bond series; date issued; due date; rate of interest; amount of transaction; and name of registered holder; 17 • certificates of deposit received or shipped by respondent financial institution, including the following information: name and address of issuer; date issued; dollar amount; name of registered holder; due date; rate of interest; certificate number; and name and address of issuing agent.18 In issuing FFA Regulations, the Secretary must prescribe: a reasonable classification of financial institutions subject to or exempt from a reporting requirement; a foreign country to which a reporting requirement applies if the Secretary decides that applying the requirement to all foreign countries is unnecessary or undesirable; the magnitude of transactions subject to a reporting requirement; and the kind of transaction subject to or exempt from a reporting requirement.19 FFA Regulations may prescribe the manner in which the information is to be reported. However, the Secretary may authorize a designated financial institution to report in a different manner if the institution demonstrates to the Secretary that the form of the required report is unnecessarily burdensome on the institution as prescribed; that a report in a different form will provide all the information the Secretary deems necessary; and that submission of the information in a different manner will not unduly hinder the effective administration of 31 CFR chapter X.20 Pursuant to 31 CFR 1010.360(e), the Secretary: (i) in issuing FFA Regulations must consider the need to avoid impeding or controlling the export or import of monetary instruments and the need to avoid burdening unreasonably a person making a transaction with a designated FFA; (ii) must not issue an FFA Regulation for the purpose of obtaining individually identifiable account information concerning a customer, as defined by the Right to Financial Privacy Act,21 where that customer is already the subject of an ongoing investigation for possible violation of the BSA, or is known by the Secretary to be the subject of an investigation for possible violation of any other Federal law; and (iii) may issue an FFA Regulation requiring a financial institution to report transactions completed prior to the date it received notice of the reporting requirement. However, with respect to completed transactions, a financial institution may be required to provide information only from records required to be maintained pursuant to the requirements of 31 CFR chapter X, or any other provision of state or Federal law, or otherwise maintained in the regular course of business.22 All records that are required to be retained by chapter X shall be retained for a period of five years, including those records required to be created under 31 CFR 1010.360.23 II. Paperwork Reduction Act of 1995 (PRA) 24 Title: Reports of transactions with foreign financial agencies (31 CFR 1010.360). OMB Control Number: 1506–0055. Form Number: Not applicable. Abstract: FinCEN is issuing this notice to renew the OMB control number for regulations requiring reports of transactions with designated FFAs. 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: 46,158 domestic financial institutions. As described above, 31 CFR 1010.360(a) authorizes the Secretary, when appropriate, to promulgate regulations requiring specified financial institutions, as defined in 31 CFR 1010.100(t), to file reports of certain transactions with designated FFAs. Table 1, below, presents FinCEN’s estimate of the total population of entities so defined and its distribution by definitional categories. TABLE 1—DISTRIBUTION OF FINANCIAL INSTITUTIONS COVERED BY THIS NOTICE, BY TYPE OF FINANCIAL INSTITUTION Number of entities ddrumheller on DSK120RN23PROD with NOTICES1 Financial institution type a Bank b ................................................................................................................................................................................................... Bank with a Federal Functional Regulator (FFR) ........................................................................................................................ Federal Register, the Secretary may prohibit disclosure of the existence or provisions of that reporting requirement to the designated FFA(s) and to any other party. See 31 CFR 1010.360(a). 12 See 31 CFR 1010.360(b)(1)(i) through (v). 13 See 31 CFR 1010.360(b)(2). VerDate Sep<11>2014 16:58 May 22, 2025 Jkt 265001 14 See 31 CFR 1010.360(b)(3)(i) through (viii). 31 CFR 1010.360(b)(4)(i) through (v). 16 See 31 CFR 1010.360(b)(5)(i) through (vii). 17 See 31 CFR 1010.360(b)(6)(i) through (viii). 18 See 31 CFR 1010.360(b)(7)(i) through (viii). 19 See 31 CFR 1010.360(c)(1) through (4). 15 See PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 20 See c 9,384 8,989 31 CFR 1010.360(d). U.S.C. 3401 et seq. 22 See 31 CFR 1010.360(e)(1) through (3). 23 31 CFR 1010.430(d). 24 Public Law 104–13, 109 Stat. 163 (May 22, 1995), codified at 44 U.S.C. 3506(c)(2)(A). 21 12 E:\FR\FM\23MYN1.SGM 23MYN1 Federal Register / Vol. 90, No. 99 / Friday, May 23, 2025 / Notices 22159 TABLE 1—DISTRIBUTION OF FINANCIAL INSTITUTIONS COVERED BY THIS NOTICE, BY TYPE OF FINANCIAL INSTITUTION— Continued Number of entities Financial institution type a Bank without an FFR .................................................................................................................................................................... Broker or dealer in securities (broker-dealer) d ................................................................................................................................... Money Services Business f .................................................................................................................................................................. Dealer in Foreign Exchange h ...................................................................................................................................................... Check Casher j .............................................................................................................................................................................. Issuer/Seller of Traveler’s Checks l .............................................................................................................................................. Issuer/Seller of Money Orders n ................................................................................................................................................... Provider or Seller of Prepaid Access p ......................................................................................................................................... Money Transmitter r ...................................................................................................................................................................... U.S. Postal Service t ..................................................................................................................................................................... Telegraph Company v .......................................................................................................................................................................... Casino or Card Club x .......................................................................................................................................................................... Person subject to supervision by any State or Federal Bank Supervisory Authority z ....................................................................... Futures Commission Merchants and Introducing Brokers in Commodities bb .................................................................................... Mutual Fund dd ..................................................................................................................................................................................... Total .............................................................................................................................................................................................. a See g 28,456 i 4,974 k 22,773 m 2,801 14,295o q 3,985 s 17,944 u0 w0 y 1,292 0aa cc 956 ee 2,764 46,158 31 CFR 1010.100(t) (definition of financial institution). 31 CFR 1010.100(t)(1); see also 31 CFR 1010.100(d) (definition of bank). includes 4,490 Federal Deposit Insurance Corporation (FDIC)-insured depository institutions (including national banks, state banks that are members of the Federal Reserve System, state-chartered non-member banks, and insured U.S. branches of foreign banks, i.e.,, all federally regulated banks) according to the FDIC’s quarterly data summary for Q4 2024, and 4,499 National Credit Union Administration (NCUA)-insured credit unions (including federal credit unions and state-chartered credit unions with NCUA insurance, i.e.,, all federally regulated credit unions) according to NCUA’s quarterly credit union data summary for Q4 2024. 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 FFR. FinCEN used this data to identify 395 banks and credit unions with no FFR that are utilizing Federal Reserve Bank financial services. d See 31 CFR 1010.100(t)(2). e This estimate is based on Securities and Exchange Commission (SEC) data on active broker-dealers which listed 3,306 active broker-dealers registered with the SEC as of Apr. 29, 2025. See SEC, Company Information About Active Broker-Dealers, available at https://www.sec.gov/foiaservices/frequently-requested-documents/company-information-about-active-broker-dealers. f See 31 CFR 1010.100(t)(3); see also 31 CFR 1010.100(ff) (definition of money services business). g The definition of MSB (31 CFR 1010.100(ff)) covers both principal money services businesses (MSBs) and agents. The topline value for all MSBs represents the average number of uniquely identifiable registered MSBs with indicia of ongoing operations as of the three year-ends 2022–2024, and primarily includes only principal MSBs required to register with FinCEN. FinCEN believes that the reporting and recordkeeping obligations this regulation imposes on MSBs will fall overwhelmingly on principals rather than their agents, but FinCEN is interested in any comments the public may have on this position. FinCEN has estimated that the number of agent MSBs is approximately 229,161 and invites public comment on this figure as well. See FinCEN, Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Regulations Requiring Records To Be Made and Retained by Financial Institutions, Banks, and Providers and Sellers of Prepaid Access, 89 FR 65971 (Aug. 13, 2024). h See 31 CFR 1010.100(ff)(1). i This value represents the number of uniquely identifiable registered MSBs with indicia of ongoing operations as of year-end 2024 that selfidentified as either ‘‘Currency Dealer or Exchanger’’ (FinCEN Form 107, Code 407) or ‘‘Dealer in Foreign Exchange’’ (FinCEN Form 107, Code 415). Registrants may be members of multiple category types. The estimate is derived from FinCEN’s publicly available MSB data as of Apr. 28, 2025. j See 31 CFR 1010.100(ff)(2). k This value represents the number of uniquely identifiable registered MSBs with indicia of ongoing operations as of year-end 2024 that selfidentified as ‘‘Check Casher’’ (FinCEN Form 107, Code 408). Registrants may be members of multiple category types. The estimate is derived from FinCEN’s publicly available MSB data as of Apr. 28, 2025. l See 31 CFR 10101.100(ff)(3). m This value represents the number of uniquely identifiable registered MSBs with indicia of ongoing operations as of year-end 2024 that selfidentified as either ‘‘Issuer of Travelers Checks’’ (FinCEN Form 107, Code 401) or ‘‘Seller of Travelers Checks’’ (FinCEN Form 107, Code 402). Registrants may be members of multiple category types. The estimate is derived from FinCEN’s publicly available MSB data as of Apr. 28, 2025. n See 31 CFR 10101.100(ff)(3). o This value represents the number of uniquely identifiable registered MSBs with indicia of ongoing operations as of year-end 2024 that selfidentified as either ‘‘Issuer of Money Orders’’ (FinCEN Form 107, Code 404) or ‘‘Seller of Money Orders’’ (FinCEN Form 107, Code 405). Registrants may be members of multiple category types. The estimate is derived from FinCEN’s publicly available MSB data as of Apr. 28, 2025. p See 31 CFR 1010.100(ff)(4)(i)–(iii), (7)(i)–(ii). q This value represents the number of uniquely identifiable registered MSBs with indicia of ongoing operations as of year-end 2024 that selfidentified as either ‘‘Seller of Prepaid Access’’ (FinCEN Form 107, Code 413) or ‘‘Provider of Prepaid Access’’ (FinCEN Form 107, Code 414). Registrants may be members of multiple category types. The estimate is derived from FinCEN’s publicly available MSB data as of Apr. 28, 2025. r See 31 CFR 1010.100(ff)(5). s This value represents the number of uniquely identifiable registered MSBs with indicia of ongoing operations as of year-end 2024 that selfidentified as ‘‘Money Transmitter’’ (FinCEN Form 107, Code 409). Registrants may be members of multiple category types. The estimate is derived from FinCEN’s publicly available MSB data as of Apr. 28, 2025. t See 31 CFR 1010.100(ff)(6). u FinCEN does not expect the U.S. Postal Service, as defined in 31 CFR 1010.100(ff)(6), to incur any recordkeeping or reporting obligations in connection with this rule. v See 31 CFR 1010.100(t)(4). w As an estimate of uniquely registered, potentially affected entities, FinCEN expects this category to contain no additional persons or organizations not already included in other counts, particularly as money transmitters. x See 31 CFR 1010.100(t)(5)–(6) y Estimate based on the American Gaming Association (AGA) ‘‘State of the States,’’ available at https://www.americangaming.org/wp-content/ uploads/2024/05/AGA-State-of-the-States-2024.pdf. z See 31 CFR 1010.100(t)(7). b See c This ddrumheller on DSK120RN23PROD with NOTICES1 395 e 3,306 VerDate Sep<11>2014 16:58 May 22, 2025 Jkt 265001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\23MYN1.SGM 23MYN1 22160 Federal Register / Vol. 90, No. 99 / Friday, May 23, 2025 / Notices aa It is unclear to FinCEN at this time whether any entities exist in this category that, for purposes of being counted towards unique potentially affected parties that could incur burdens associated with regulations issued pursuant to 31 CFR 1010.360, are not already captured by concurrent status in another category of financial institution under the 31 CFR 1010.100(t) definition. To the extent that additional data can better inform this estimate, public comment including provision of such data is invited. bb See 31 CFR 1010.100(t)(8–9). cc The number of futures commissions merchants as of May 2025 was obtained from data available at NFA Membership and Registration, available at https://www.nfa.futures.org/registration-membership/membership-and-directories.html. This estimate may include some entities registered in both categories, but FinCEN believes this figure to be small. According to the Commodity Futures Trading Commission (CFTC), as of Mar. 31, 2025, there are 63 registered futures commissions merchants. See CFTC, Financial Data For CFMs, available at https://www.cftc.gov/ MarketReports/financialfcmdata/index.htm. dd See 31 CFR 1010.100(t)(10). ee According to the SEC, as of the fourth quarter of 2024, in 2024 there were 2,764 open-end registered investment companies that report on Form N–CEN. (https://www.sec.gov/dera/data/form-ncen-data-sets). ddrumheller on DSK120RN23PROD with NOTICES1 While the entities in Table 1 are subject to FFA Regulations as described above, FinCEN typically issues FFA Regulations to a significantly smaller subset of the eligible population. From 2022 to 2025, FinCEN generally issued FFA Regulations to banks and brokerdealers as defined in Table 1. Among these, FinCEN required reports from an average of 15 unique institutions per year. FinCEN has applied historical data on FFA Regulations to estimate the number of respondents per year. The estimated number of expected respondents per year is based on the average number of respondents per FFA Regulation issued over the three-year period from 2022 to 2025 multiplied by the average number of FFA Regulations issued per year over the same period. Estimated Number of Expected Respondents: 40 domestic financial institutions, annually on average.25 FinCEN is revising its estimate of expected respondents upward to reflect an increase in the quantity of FFA Regulations issued and an increase in the average number of financial institutions directed to respond to each such FFA Regulation since the most recent previous OMB control number renewal. In the three calendar-year period between 2019 and 2022, FinCEN issued four FFA Regulations to an average of nine covered financial institutions per regulation.26 During the analogous three-year period between 2022 and 2025, FinCEN issued 11 FFA Regulations (about four per year) to an average of ten covered financial institutions per regulation. Estimated Total Annual Responses: 40 responses.27 25 Because the same respondent may be subject to reporting requirements under more than one issued regulation in the same calendar year, the estimated number of expected respondents may exceed the number of unique entities to whom reporting and recordkeeping burdens would accrue. See infra discussion below. 26 See FinCEN, ‘‘Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reports of Transactions With Foreign Financial Agencies’’, 87 FR 1479 (Jan. 11, 2022), n. 10 and 11. 27 The estimated number of annual responses is based on the expectation that each newly issued regulation would engender one response per VerDate Sep<11>2014 16:58 May 22, 2025 Jkt 265001 FinCEN is also revising the structure of its burden estimates to enhance comparability and tractability across the activities a covered financial institution is expected to undertake in compliance with 31 CFR 1010.360. The downward revision in the estimated total annual responses in this renewal (40), as compared to the most recent previous estimate (84), does not reflect an expected decrease in responses, but rather a change in what a ‘response’ is intended to represent. In formulating its estimates of reporting and recordkeeping burdens for this OMB control renewal, FinCEN anticipates that each FFA Regulation will require information from one or more respondents who would consequently incur incremental reporting and recordkeeping obligations unique to the regulation. Each respondent would be required to provide FinCEN with a response in the form of a report, or reports, with respect to each of the FFAs identified in the regulation. In prior renewals, FinCEN has referred to, and treated each of the reports provided to comply with an issued regulation as an individual response, and because the number of reports and the time-period covered by each report required has historically varied by regulation issued, this made the exercise of mapping respondents to responses to per-response burden for purposes of cost estimations less tractable and less likely to meaningfully represent the manner in which respondents view and operationalize their compliance activities. While the historical analysis below retains individual reports as the fundamental unit of analysis, for purposes of estimating PRA burdens, FinCEN is employing a standardized model that treats the sum total of reports a respondent provides to FinCEN as one response, composed of three notional reports, one that captures a more respondent, consisting of three reports (one initial and two subsequent), and is based on the average number of regulations issued per calendar year over the most recent three years multiplied by the average number of respondents per regulation issued during the same period. See discussion below. PO 00000 Frm 00105 Fmt 4703 Sfmt 4703 extensive, costly ‘‘initial report,’’ and represents all follow-on reporting as two ‘‘subsequent reports’’ of shorter length and lower associated costs (i.e., ‘‘subsequent reports’’ after the initial report). In calendar years 2022–2024, FinCEN issued a total of 11 FFA Regulations— approximately four per year. The FFA Regulations required that financial institutions respond with information on one to 308 FFAs per request, with an average of 50 FFAs per regulation. Four annual FFA Regulations multiplied by 50 FFAs per regulations equals 200 FFAs per year per respondent. During this period, there was one FFA Regulation that included 308 FFAs, which is significantly larger than the number of FFAs per regulation when compared to other FFA Regulations issued during the same period. Excluding that instance, the average number of FFAs per regulation was approximately 25 (24.4). FinCEN believes that instance to be an outlier. However, to maintain a conservative estimate, FinCEN has retained the higher figure of 50 FFAs per regulation. Although FFA Regulations require about 200 reports per respondent per year, each response requires multiple reports that are sent at different times. The initial report will include transactions that occurred over a specified ‘‘look-back’’ period. Each subsequent report will include transactions that have occurred since the initial report (if it is the first subsequent report) or since the most recent prior report (if it is not the first subsequent report). In general, initial reports are more burdensome because they typically require more data and initial research. Across the 11 FFA Regulations issued during the three-year period from 2022–2025, seven have been completed,28 and the resulting reports contained an average of approximately ten million total rows of data, with the initial report containing an average of approximately 60 percent of this volume. 28 Several FFA Regulations from 2024 and 2025 are still ongoing. E:\FR\FM\23MYN1.SGM 23MYN1 22161 Federal Register / Vol. 90, No. 99 / Friday, May 23, 2025 / Notices During the three-year period from 2022 to 2025, the average look-back period per request was 737 days, which is approximately 24 months. FinCEN assesses that this is representative of the duration of the look-back period in future requests.29 FinCEN estimates that the initial report, requiring a look-back over an average two-year period, will take approximately 16 hours (two business days) for initial research, approval by management, and reporting (i.e. transmission), which includes setting up a template for subsequent reporting. Over the same period, the number of subsequent reporting periods per FFA Regulation ranged from seven to 14, with an average of ten. The subsequent reports were always required over a period of 180 days. However, beginning in 2025 and for future FFA Regulations, FinCEN intends to require a smaller number of subsequent reporting periods, with as few as two per regulation, as appropriate. This approach will result in an average number of three reports per regulation under this framework: the initial report (including look-back), and two subsequent reports. FinCEN estimates that each subsequent report (an expected average of two in total) will take approximately two hours (one hour for data gathering and one hour for approval and reporting). Estimated Reporting and Recordkeeping Burden: 40,500 hours, as set out in Table 2, below. FinCEN considers the primary burden to be associated with the preparation of required reports, which it anticipates may potentially involve multiple stages of processing and review by respondents and/or their need to access multiple data systems, depending on the scope or complexity of the regulation or the nature of a given FFA. Generally, the information required to be reported pursuant to an FFA Regulation is basic information that a domestic financial institution must already maintain to comply with current BSA recordkeeping requirements. For example, a domestic financial institution sending or receiving transmittal orders (funds transfers) with a designated FFA would have access to the information required to be reported. The information required to be reported pursuant to an FFA Regulation falls into one or more of the following categories: (i) checks or drafts; (ii) transmittal orders; (iii) loans; (iv) commercial paper; (v) stocks; (vi) bonds; and (vii) certificates of deposit. Although FFA Regulations may concern any of these types of transactions, in general, over the past three years, FinCEN has only promulgated regulations associated with funds transfers. As noted above, FinCEN will specify the form and method for reporting and typically provides a reporting schedule to each specified financial institution. If a specified financial institution does not have any reportable transactions, that information must be reported to FinCEN. FinCEN also requires that filers maintain records of data reported pursuant to FFA Regulations. The FFA information is typically reported by uploading a comma-separated value file spreadsheet through FinCEN’s Secure Information Sharing System, which allows the filer to save an electronic version of the report and satisfy the recordkeeping requirement. FinCEN estimates that the recordkeeping requirement will take five minutes on average. Table 2 provides a summary of the total expected annual burden hours for all FFA Regulations. TABLE 2—BURDEN ASSOCIATED WITH EACH PORTION OF THE ANNUAL PRA ESTIMATE Expected number of FFA regulations issued Activity Expected number of respondent Expected frequency per respondent Average burden hours per provision Total annual burden hours Filing initial report(s) a of certain transactions with designated FFAs b ... Filing subsequent reports of certain transactions with designated FFAs Complying with recordkeeping requirements that apply to reports c ....... 4 10 1 2 3 800 100 d4 32,000 8,000 500 Total .................................................................................................. .................... .................... .................... .................... 40,500 a The ddrumheller on DSK120RN23PROD with NOTICES1 burden calculations in this table contemplate that the average number of FFAs per regulation issued is 50, each of which would require its own report, and would thereby incur the following burden hours per report: 16 (initial report), 2 (subsequent reports), and 1/12 (recordkeeping). b The filing of an initial report includes the applicable look-back period and includes the burden associated with operationalizing the reporting format specified by FinCEN. c Records associated with the reports produced in response to regulations issued pursuant to 31 CFR 1010.360 are subject to the requirements in 31 CFR 1010.430. d Rounded to the nearest whole number (four) from approximately 4.2 (50 × 1/12 = ∼ 4.167). In the previous renewal of this OMB control number, FinCEN revised its estimate of burden in response to comments received,30 which described a range of required response times for FFA Regulations of varying complexity.31 In that renewal, FinCEN proposed three categories of FFA Regulation: simple regulations (25% of total request, taking seven hours total per response on average), typical regulations (50% of total requests, taking 100 hours total per response on average), and complex regulations (25% of total requests, taking 360 hours per response on average). The weighted average response time for these regulation categories is 141.75 hours in total. Between 2019 and 2021 (the period before the comment letter was submitted), FinCEN FFA Regulations sought information on an average of seven FFAs per regulation. As discussed above, FinCEN has also historically 29 This range can vary, particularly when ‘‘renewing’’ an FFA Regulation. In such cases, FinCEN asks respondents to ‘‘look-back’’ over a shorter period, generally one to three months to the last collection on the associated FFAs. In such cases, initial reporting burden will be smaller. FinCEN applies a conservative estimate for the purposes of estimating burden here, assuming FFAs that are the subject of a regulation are initial FFA Regulations with no immediate precedent. 30 See FinCEN, ‘‘Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reports of Transactions With Foreign Financial Agencies,’’ 87 FR 1479 (Jan. 11, 2022). See also the information collection request documents, including the supporting statement for the 2022 renewal at https:// www.reginfo.gov/public/do/ PRAViewDocument?ref_nbr=202203-1506-001. 31 See the public comment in response to the 2022 renewal at https://www.reginfo.gov/public/do/ PRAViewDocument?ref_nbr=202203-1506-001. VerDate Sep<11>2014 16:58 May 22, 2025 Jkt 265001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 E:\FR\FM\23MYN1.SGM 23MYN1 22162 Federal Register / Vol. 90, No. 99 / Friday, May 23, 2025 / Notices required seven subsequent reports before the recent change (where going forward, FinCEN expects to only require two subsequent reports in most FFA Regulations). Using this methodology in combination with the revised time estimates laid out in Table 2, the initial report for the past period (2022–2025) would be estimated to require 112 hours (16 hours per 7 FFAs, conducted one time) and the subsequent reports are estimated to take 98 hours (two hours per 7 FFAs, conducted seven times on average), for a total of 210 hours on average per FFA Regulation. However, because subsequent reports were more frequent during this period, and therefore involved smaller data files, the corresponding subsequent report time for this period would be closer to one hour per FFA (instead of two hours per FFA). Applying this equivalence results in a total estimated average time of 161 hours per FFA Regulation during 2022– 2025, which is a close approximation of the weighted average time per FFA Regulation from the previous renewal. Using the figures from Table 2, the average total time per request anticipated by this renewal is 1,000 hours (an initial report taking 16 hours per FFA for 50 FFAs on average, plus two subsequent reports taking two hours per FFA for 50 FFAs on average). This increase is largely the result of the previous period (2022–2025) including several highly complex requests involving significantly more FFAs than were included in prior years’ FFA Regulations. As discussed above, during this period there was an FFA Regulation that included 308 FFAs. Excluding that instance, the average number of FFAs per FFA Regulation was approximately 25 (24.4). While this previous period may therefore be exceptional, and therefore of limited predictive value for future expectations, FinCEN is not removing outliers from its estimates to take a more conservative approach to assessing the burden of issuing regulations. Using the figure of 25 FFAs per regulation results in an expected average total time per regulation of 500 hours, which is approximately equivalent to the upper end of the typical range described by the commenter for the 2019–2021 period. Estimated Total Annual Recordkeeping Cost: The estimated total annual PRA cost is $4,860,000, as set out in Table 3. 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, $120.00.32 The total estimated cost of the annual PRA burden is reflected in Table 3 below: TABLE 3—ESTIMATED TOTAL COST OF ANNUAL PRA BURDEN Activity a Wage rate Total cost Filing initial reports of certain transactions with designated FFAs .............................................. Filing subsequent reports of certain transactions with designated FFAs ................................... Complying with the recordkeeping requirements in 31 CFR 1010.430 ...................................... 32,000 8,000 500 $120 $3,840,000 960,000 60,000 Total annual cost .................................................................................................................. ........................ ........................ 4,860,000 a See ddrumheller on DSK120RN23PROD with NOTICES1 Burden hours respective activities in Table 2. 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.33 Requests for Comment: 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. 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’s 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) As noted above, FinCEN data indicates that initial reporting volume requires significantly more research and templating than the subsequent reports. FinCEN estimated 16 hours for initial reports and two hours each for subsequent reports. Does this distribution of expected burden hours reflect how responses to FFA Regulations are executed? If not, how long does it take a firm on average to provide an initial report and each subsequent report? Are there any factors that affect this time burden that would improve FinCEN’s estimates of burden or costs? (2) FinCEN’s burden analysis recognizes that there may be technology costs associated with reporting and storing transaction data. Are these incremental costs readily quantifiable? If so, how much are they expected to vary by respondent? Do they differ in 32 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 × 1.42), that incorporates the mean wage data provided by the Bureau of Labor Statistics (BLS) 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 parts 1020–1030. See BLS, Occupational Employment and Wage Statistics Tables, ‘‘May 2023—National industry-specific and by ownership,’’ available at https://www.bls.gov/ oes/tables.htm. The benefit factor is 1 plus the benefit/wages ratio. As of June 2023, Total Benefits = 29.4 and Wages and Salaries = 70.6 (29.4/70.6= 0.42) based on the BLS’ Private Industry Workers Series data. See BLS, News Release, ‘‘Employer Costs for Employee Compensation—June 2023,’’ available at https://www.bls.gov/news.release/ archives/ecec_09122023.pdf. Because many employers provide non-wage benefits (e.g., insurance, paid leave), the private sector benefit is applied to reflect the total cost to the employer. 33 See 31 CFR 1010.430(d). VerDate Sep<11>2014 16:58 May 22, 2025 Jkt 265001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4703 E:\FR\FM\23MYN1.SGM 23MYN1 Federal Register / Vol. 90, No. 99 / Friday, May 23, 2025 / Notices relative or absolute value for smaller respondents? Andrea M. Gacki, Director, Financial Crimes Enforcement Network [FR Doc. 2025–09310 Filed 5–22–25; 8:45 am] BILLING CODE 4810–02–P DEPARTMENT OF THE TREASURY Internal Revenue Service Agency Information Collection Activities; Comment Request on Disclosure of Returns and Return Information to Designee of Taxpayer Internal Revenue Service (IRS), Treasury. ACTION: Notice of information collection; request for comments. AGENCY: In accordance with the Paperwork Reduction Act of 1995, the IRS is inviting comments on the information collection request outlined in this notice. DATES: Written comments should be received on or before July 22, 2025 to be assured of consideration. ADDRESSES: Direct all written comments to Andres Garcia, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or by email to pra.comments@irs.gov. Include ‘‘OMB Control No. 1545–1816’’ in the subject line of the message. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the Treasury Decision should be directed to Kerry Dennis at (202) 317–5751, or at Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or through the internet, at Kerry.L.Dennis@ irs.gov. SUPPLEMENTARY INFORMATION: The IRS, in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the general public and Federal agencies with an opportunity to comment on proposed, revised, and continuing collections of information. This helps the IRS assess the impact and minimize the burden of its information collection requirements. Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate ddrumheller on DSK120RN23PROD with NOTICES1 SUMMARY: VerDate Sep<11>2014 16:58 May 22, 2025 Jkt 265001 of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Title: Disclosure of Returns and Return Information to Designee of Taxpayer. OMB Control Number: 1545–1816. Regulation Project Number: TD 9504, as amended by TD 9618. Abstract: Under section 6103(a), returns and return information are confidential unless disclosure is otherwise authorized by the Code. Section 6103(c), as amended in 1996 by section 1207 of the Taxpayer Bill of Rights II, Public Law 104–168 (110 Stat. 1452), authorizes the IRS to disclose returns and return information to such person or persons as the taxpayer may designate in a request for or consent to disclosure, or to any other person at the taxpayer’s request to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. Disclosure is permitted subject to such requirements and conditions as may be prescribed by regulations. With the amendment in 1996, Congress eliminated the longstanding requirement that disclosures to designees of the taxpayer must be pursuant to the written request or consent of the taxpayer. Current Actions: There are no changes to the regulation that would affect burden. Type of Review: Extension of a currently approved collection. Affected Public: Individuals or households, business or other not-forprofit institutions, farms, and Federal, state, local or tribal governments. Estimated Number of Responses: 9,000. Estimated Time per Response: 12 minutes. Estimated Total Annual Burden Hours: 1,800. Dated: May 14, 2025. Kerry L. Dennis, Tax Analyst. [FR Doc. 2025–09263 Filed 5–22–25; 8:45 am] BILLING CODE 4830–01–P PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 22163 DEPARTMENT OF VETERANS AFFAIRS [OMB Control No. 2900–0894] Agency Information Collection Activity: Program of Comprehensive Assistance for Family Caregivers (PCAFC) Decision Appeal Form Veterans Health Administration, Department of Veterans Affairs. ACTION: Notice. AGENCY: Veterans Health Administration (VHA), Department of Veterans Affairs (VA), is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act (PRA) of 1995, Federal agencies are required to publish notice in the Federal Register concerning each proposed collection of information, including each proposed extension of a currently approved collection, and allow 60 days for public comment in response to the notice. DATES: Comments must be received on or before July 22, 2025. ADDRESSES: Comments must be submitted through www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Program-Specific information: Rebecca Mimnall, 202–695–9434, vhacopra@va.gov. VA PRA information: Dorothy Glasgow, 202–461–1084, VAPRA@ va.gov. SUMMARY: Under the PRA of 1995, Federal agencies must obtain approval from the Office of Management and Budget (OMB) for each collection of information they conduct or sponsor. This request for comment is being made pursuant to section 3506(c)(2)(A) of the PRA. With respect to the following collection of information, VHA invites comments on: (1) whether the proposed collection of information is necessary for the proper performance of VHA’s functions, including whether the information will have practical utility; (2) the accuracy of VHA’s estimate of the burden of the proposed collection of information; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or the use of other forms of information technology. Title: Program of Comprehensive Assistance for Family Caregivers SUPPLEMENTARY INFORMATION: E:\FR\FM\23MYN1.SGM 23MYN1

Agencies

[Federal Register Volume 90, Number 99 (Friday, May 23, 2025)]
[Notices]
[Pages 22157-22163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09310]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network


Agency Information Collection Activities; Proposed Renewal; 
Comment Request; Renewal Without Change of Reports of Transactions With 
Foreign Financial Agencies

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 authorize the Secretary of the Treasury, as appropriate, to 
promulgate regulations requiring specified financial institutions to 
file reports with the Financial Crimes Enforcement Network (FinCEN) of 
certain transactions with designated foreign financial agencies. 
Although no changes are proposed to the information collection itself, 
this request for comments covers proposed changes in the methods that 
FinCEN uses to estimate reporting and recordkeeping burdens. 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 
July 22, 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-2025-0006 and Office of Management and Budget (OMB) control 
number 1506-0055.
     Mail: Policy Division, Financial Crimes Enforcement 
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2025-0006 and OMB control number 1506-0055.
    Please submit comments by one method only. Comments will generally 
become a matter of public record. For this reason, please do not 
include in your comments information of a confidential nature, such as 
sensitive personal information or proprietary information. A comment 
about the burden posed to a financial institution by a specific 
regulation requiring the reporting of certain transactions with 
designated foreign financial agencies, issued under the general 
regulation that is the subject of this notice, but that does not 
describe in detail the specific regulation or the reporting requirement 
imposed by that specific regulation, will not be considered to contain 
confidential information.

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 Foreign Transactions Reporting Act of 1970,\1\ as 
amended by the Uniting and Strengthening America by Providing 
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 
2001 (USA PATRIOT Act),\2\ and other legislation, including the Anti-
Money Laundering Act of 2020 (AML Act).\3\ The BSA is codified at 12 
U.S.C. 1829b, and 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\ Title II of Public Law 91-508, 84 Stat. 1118 (Oct. 26, 
1970).
    \2\ Public Law 107-56, 115 Stat. 272 (Oct. 26, 2001).
    \3\ 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 matters, 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.\4\ The Secretary has delegated to the Director 
of FinCEN (Director) the authority to administer the BSA.\5\
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    \4\ See 31 U.S.C. 5311(1)-(2).
    \5\ Treasury Order 180-01 (Reaffirmed Jan. 14, 2020); see also 
31 U.S.C. 310(b)(2)(I) (providing that the Director of FinCEN shall 
``[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 Secretary is authorized to require any ``resident or citizen of 
the United States or a person in, and doing business in, the United 
States, to keep records, file reports, or keep records and file 
reports, when the resident, citizen, or person makes a transaction or 
maintains a relation for any person with a foreign financial agency.'' 
\6\ The term ``foreign financial agency'' \7\ (FFA) applies to an 
action outside the United States of a ``financial agency,'' which the 
statute defines as ``a person acting for a person . . . as a financial 
institution, bailee, depository trustee, or agent, or acting in a 
similar way related to money, credit, securities, gold, a transaction 
in money, credit, securities or gold, or a service provided with 
respect to money, securities, futures, precious metals, stones and 
jewels, or value that substitutes for currency.'' \8\ The Secretary is 
also authorized to prescribe exemptions to the reporting requirement 
and to prescribe other matters the Secretary considers necessary to 
carry out 31 U.S.C. 5314.\9\ The regulations implementing these 
authorities to require reports of transactions with FFAs are found at 
31 CFR 1010.360.
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    \6\ 31 U.S.C. 5314(a).
    \7\ 31 U.S.C. 5312(b)(2).
    \8\ See 31 U.S.C. 5312(a)(1) as amended by 6102 (d)(1)(A) of the 
AML Act. The definition of financial agency exempts a person acting 
for a country, a monetary or financial authority acting as a 
monetary or financial authority, or an international financial 
institution of which the United States Government is a member.
    \9\ See 31 U.S.C. 5314(b)(1) and (5).
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    Briefly, 31 CFR 1010.360(a) generally authorizes the Secretary, 
when the Secretary deems appropriate, to promulgate specific 
regulations (FFA Regulations) under which specified financial 
institutions \10\ must file reports of certain transactions with 
designated FFAs.\11\ An FFA Regulation must

[[Page 22158]]

designate one or more of the following categories of information to be 
reported by the specified financial institution(s):
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    \10\ 31 CFR 1010.100(t).
    \11\ If such a regulation is issued as a final rule without 
notice and opportunity for public comment, then a finding of good 
cause for dispensing with notice and comment in accordance with 5 
U.S.C. 553(b) must be included in the regulation. If the regulation 
is not published in the Federal Register, then any financial 
institution subject to the regulation must be named and personally 
served or otherwise given actual notice in accordance with 5 U.S.C. 
553(b). If a financial institution is given notice of a reporting 
requirement by means other than publication in the Federal Register, 
the Secretary may prohibit disclosure of the existence or provisions 
of that reporting requirement to the designated FFA(s) and to any 
other party. See 31 CFR 1010.360(a).
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     checks or drafts, including traveler's checks, received by 
a respondent financial institution for collection or credit to the 
account of a designated FFA, sent by the respondent financial 
institution to a foreign country for collection or payment, drawn by 
the respondent financial institution on a designated FFA, drawn by a 
designated FFA on the respondent financial institution, including the 
following information: name of maker or drawer; name of drawee or 
drawee financial institution; name of payee; date and amount of 
instrument; and names of all endorsers; \12\
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    \12\ See 31 CFR 1010.360(b)(1)(i) through (v).
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     transmittal orders received by a respondent financial 
institution from a designated FFA or sent by respondent financial 
institution to a designated FFA, including all information maintained 
by that institution pursuant to 31 CFR 1010.410 and 1020.410; \13\
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    \13\ See 31 CFR 1010.360(b)(2).
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     loans made by respondent financial institution to or 
through a designated FFA, including the following information: name of 
borrower; name of person acting for borrower; date and amount of loan; 
terms of repayment; name of guarantor; rate of interest; method of 
disbursing proceeds; and collateral for loan; \14\
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    \14\ See 31 CFR 1010.360(b)(3)(i) through (viii).
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     commercial paper received or shipped by the respondent 
financial institution, including the following information: name of 
maker; date and amount of paper; due date; certificate number; and 
amount of transaction; \15\
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    \15\ See 31 CFR 1010.360(b)(4)(i) through (v).
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     stocks received or shipped by respondent financial 
institution, including the following information: name of corporation; 
type of stock; certificate number; number of shares; date of 
certificate; name of registered holder; and amount of transaction; \16\
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    \16\ See 31 CFR 1010.360(b)(5)(i) through (vii).
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     bonds received or shipped by respondent financial 
institution, including the following information: name of issuer; bond 
number; type of bond series; date issued; due date; rate of interest; 
amount of transaction; and name of registered holder; \17\
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    \17\ See 31 CFR 1010.360(b)(6)(i) through (viii).
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     certificates of deposit received or shipped by respondent 
financial institution, including the following information: name and 
address of issuer; date issued; dollar amount; name of registered 
holder; due date; rate of interest; certificate number; and name and 
address of issuing agent.\18\
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    \18\ See 31 CFR 1010.360(b)(7)(i) through (viii).
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    In issuing FFA Regulations, the Secretary must prescribe: a 
reasonable classification of financial institutions subject to or 
exempt from a reporting requirement; a foreign country to which a 
reporting requirement applies if the Secretary decides that applying 
the requirement to all foreign countries is unnecessary or undesirable; 
the magnitude of transactions subject to a reporting requirement; and 
the kind of transaction subject to or exempt from a reporting 
requirement.\19\
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    \19\ See 31 CFR 1010.360(c)(1) through (4).
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    FFA Regulations may prescribe the manner in which the information 
is to be reported. However, the Secretary may authorize a designated 
financial institution to report in a different manner if the 
institution demonstrates to the Secretary that the form of the required 
report is unnecessarily burdensome on the institution as prescribed; 
that a report in a different form will provide all the information the 
Secretary deems necessary; and that submission of the information in a 
different manner will not unduly hinder the effective administration of 
31 CFR chapter X.\20\
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    \20\ See 31 CFR 1010.360(d).
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    Pursuant to 31 CFR 1010.360(e), the Secretary: (i) in issuing FFA 
Regulations must consider the need to avoid impeding or controlling the 
export or import of monetary instruments and the need to avoid 
burdening unreasonably a person making a transaction with a designated 
FFA; (ii) must not issue an FFA Regulation for the purpose of obtaining 
individually identifiable account information concerning a customer, as 
defined by the Right to Financial Privacy Act,\21\ where that customer 
is already the subject of an ongoing investigation for possible 
violation of the BSA, or is known by the Secretary to be the subject of 
an investigation for possible violation of any other Federal law; and 
(iii) may issue an FFA Regulation requiring a financial institution to 
report transactions completed prior to the date it received notice of 
the reporting requirement. However, with respect to completed 
transactions, a financial institution may be required to provide 
information only from records required to be maintained pursuant to the 
requirements of 31 CFR chapter X, or any other provision of state or 
Federal law, or otherwise maintained in the regular course of 
business.\22\ All records that are required to be retained by chapter X 
shall be retained for a period of five years, including those records 
required to be created under 31 CFR 1010.360.\23\
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    \21\ 12 U.S.C. 3401 et seq.
    \22\ See 31 CFR 1010.360(e)(1) through (3).
    \23\ 31 CFR 1010.430(d).
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II. Paperwork Reduction Act of 1995 (PRA) \24\
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    \24\ 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: Reports of transactions with foreign financial agencies (31 
CFR 1010.360).
    OMB Control Number: 1506-0055.
    Form Number: Not applicable.
    Abstract: FinCEN is issuing this notice to renew the OMB control 
number for regulations requiring reports of transactions with 
designated FFAs.
    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: 46,158 domestic 
financial institutions.
    As described above, 31 CFR 1010.360(a) authorizes the Secretary, 
when appropriate, to promulgate regulations requiring specified 
financial institutions, as defined in 31 CFR 1010.100(t), to file 
reports of certain transactions with designated FFAs. Table 1, below, 
presents FinCEN's estimate of the total population of entities so 
defined and its distribution by definitional categories.

 Table 1--Distribution of Financial Institutions Covered by This Notice,
                    by Type of Financial Institution
------------------------------------------------------------------------
                                                             Number of
             Financial institution type \a\                  entities
------------------------------------------------------------------------
Bank \b\................................................       \c\ 9,384
    Bank with a Federal Functional Regulator (FFR)......           8,989

[[Page 22159]]

 
    Bank without an FFR.................................             395
Broker or dealer in securities (broker-dealer) \d\......       \e\ 3,306
Money Services Business \f\.............................      \g\ 28,456
    Dealer in Foreign Exchange \h\......................       \i\ 4,974
    Check Casher \j\....................................      \k\ 22,773
    Issuer/Seller of Traveler's Checks \l\..............       \m\ 2,801
    Issuer/Seller of Money Orders \n\...................       14,295\o\
    Provider or Seller of Prepaid Access \p\............       \q\ 3,985
    Money Transmitter \r\...............................      \s\ 17,944
    U.S. Postal Service \t\.............................           \u\ 0
Telegraph Company \v\...................................           \w\ 0
Casino or Card Club \x\.................................       \y\ 1,292
Person subject to supervision by any State or Federal              0\aa\
 Bank Supervisory Authority \z\.........................
Futures Commission Merchants and Introducing Brokers in         \cc\ 956
 Commodities \bb\.......................................
Mutual Fund \dd\........................................      \ee\ 2,764
                                                         ---------------
    Total...............................................          46,158
------------------------------------------------------------------------
\a\ See 31 CFR 1010.100(t) (definition of financial institution).
\b\ See 31 CFR 1010.100(t)(1); see also 31 CFR 1010.100(d) (definition
  of bank).
\c\ This includes 4,490 Federal Deposit Insurance Corporation (FDIC)-
  insured depository institutions (including national banks, state banks
  that are members of the Federal Reserve System, state-chartered non-
  member banks, and insured U.S. branches of foreign banks, i.e.,, all
  federally regulated banks) according to the FDIC's quarterly data
  summary for Q4 2024, and 4,499 National Credit Union Administration
  (NCUA)-insured credit unions (including federal credit unions and
  state-chartered credit unions with NCUA insurance, i.e.,, all
  federally regulated credit unions) according to NCUA's quarterly
  credit union data summary for Q4 2024. 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 FFR. FinCEN used this data
  to identify 395 banks and credit unions with no FFR that are utilizing
  Federal Reserve Bank financial services.
\d\ See 31 CFR 1010.100(t)(2).
\e\ This estimate is based on Securities and Exchange Commission (SEC)
  data on active broker-dealers which listed 3,306 active broker-dealers
  registered with the SEC as of Apr. 29, 2025. See SEC, Company
  Information About Active Broker-Dealers, available at https://www.sec.gov/foia-services/frequently-requested-documents/company-information-about-active-broker-dealers.
\f\ See 31 CFR 1010.100(t)(3); see also 31 CFR 1010.100(ff) (definition
  of money services business).
\g\ The definition of MSB (31 CFR 1010.100(ff)) covers both principal
  money services businesses (MSBs) and agents. The topline value for all
  MSBs represents the average number of uniquely identifiable registered
  MSBs with indicia of ongoing operations as of the three year-ends 2022-
  2024, and primarily includes only principal MSBs required to register
  with FinCEN. FinCEN believes that the reporting and recordkeeping
  obligations this regulation imposes on MSBs will fall overwhelmingly
  on principals rather than their agents, but FinCEN is interested in
  any comments the public may have on this position. FinCEN has
  estimated that the number of agent MSBs is approximately 229,161 and
  invites public comment on this figure as well. See FinCEN, Agency
  Information Collection Activities; Proposed Renewal; Comment Request;
  Renewal Without Change of Regulations Requiring Records To Be Made and
  Retained by Financial Institutions, Banks, and Providers and Sellers
  of Prepaid Access, 89 FR 65971 (Aug. 13, 2024).
\h\ See 31 CFR 1010.100(ff)(1).
i This value represents the number of uniquely identifiable registered
  MSBs with indicia of ongoing operations as of year-end 2024 that self-
  identified as either ``Currency Dealer or Exchanger'' (FinCEN Form
  107, Code 407) or ``Dealer in Foreign Exchange'' (FinCEN Form 107,
  Code 415). Registrants may be members of multiple category types. The
  estimate is derived from FinCEN's publicly available MSB data as of
  Apr. 28, 2025.
\j\ See 31 CFR 1010.100(ff)(2).
\k\ This value represents the number of uniquely identifiable registered
  MSBs with indicia of ongoing operations as of year-end 2024 that self-
  identified as ``Check Casher'' (FinCEN Form 107, Code 408).
  Registrants may be members of multiple category types. The estimate is
  derived from FinCEN's publicly available MSB data as of Apr. 28, 2025.
\l\ See 31 CFR 10101.100(ff)(3).
\m\ This value represents the number of uniquely identifiable registered
  MSBs with indicia of ongoing operations as of year-end 2024 that self-
  identified as either ``Issuer of Travelers Checks'' (FinCEN Form 107,
  Code 401) or ``Seller of Travelers Checks'' (FinCEN Form 107, Code
  402). Registrants may be members of multiple category types. The
  estimate is derived from FinCEN's publicly available MSB data as of
  Apr. 28, 2025.
\n\ See 31 CFR 10101.100(ff)(3).
\o\ This value represents the number of uniquely identifiable registered
  MSBs with indicia of ongoing operations as of year-end 2024 that self-
  identified as either ``Issuer of Money Orders'' (FinCEN Form 107, Code
  404) or ``Seller of Money Orders'' (FinCEN Form 107, Code 405).
  Registrants may be members of multiple category types. The estimate is
  derived from FinCEN's publicly available MSB data as of Apr. 28, 2025.
\p\ See 31 CFR 1010.100(ff)(4)(i)-(iii), (7)(i)-(ii).
\q\ This value represents the number of uniquely identifiable registered
  MSBs with indicia of ongoing operations as of year-end 2024 that self-
  identified as either ``Seller of Prepaid Access'' (FinCEN Form 107,
  Code 413) or ``Provider of Prepaid Access'' (FinCEN Form 107, Code
  414). Registrants may be members of multiple category types. The
  estimate is derived from FinCEN's publicly available MSB data as of
  Apr. 28, 2025.
\r\ See 31 CFR 1010.100(ff)(5).
\s\ This value represents the number of uniquely identifiable registered
  MSBs with indicia of ongoing operations as of year-end 2024 that self-
  identified as ``Money Transmitter'' (FinCEN Form 107, Code 409).
  Registrants may be members of multiple category types. The estimate is
  derived from FinCEN's publicly available MSB data as of Apr. 28, 2025.
\t\ See 31 CFR 1010.100(ff)(6).
\u\ FinCEN does not expect the U.S. Postal Service, as defined in 31 CFR
  1010.100(ff)(6), to incur any recordkeeping or reporting obligations
  in connection with this rule.
\v\ See 31 CFR 1010.100(t)(4).
\w\ As an estimate of uniquely registered, potentially affected
  entities, FinCEN expects this category to contain no additional
  persons or organizations not already included in other counts,
  particularly as money transmitters.
\x\ See 31 CFR 1010.100(t)(5)-(6)
\y\ Estimate based on the American Gaming Association (AGA) ``State of
  the States,'' available at https://www.americangaming.org/wp-content/uploads/2024/05/AGA-State-of-the-States-2024.pdf.
\z\ See 31 CFR 1010.100(t)(7).

[[Page 22160]]

 
\aa\ It is unclear to FinCEN at this time whether any entities exist in
  this category that, for purposes of being counted towards unique
  potentially affected parties that could incur burdens associated with
  regulations issued pursuant to 31 CFR 1010.360, are not already
  captured by concurrent status in another category of financial
  institution under the 31 CFR 1010.100(t) definition. To the extent
  that additional data can better inform this estimate, public comment
  including provision of such data is invited.
\bb\ See 31 CFR 1010.100(t)(8-9).
\cc\ The number of futures commissions merchants as of May 2025 was
  obtained from data available at NFA Membership and Registration,
  available at https://www.nfa.futures.org/registration-membership/membership-and-directories.html. This estimate may include some
  entities registered in both categories, but FinCEN believes this
  figure to be small. According to the Commodity Futures Trading
  Commission (CFTC), as of Mar. 31, 2025, there are 63 registered
  futures commissions merchants. See CFTC, Financial Data For CFMs,
  available at https://www.cftc.gov/MarketReports/financialfcmdata/index.htm.
\dd\ See 31 CFR 1010.100(t)(10).
\ee\ According to the SEC, as of the fourth quarter of 2024, in 2024
  there were 2,764 open-end registered investment companies that report
  on Form N-CEN. (https://www.sec.gov/dera/data/form-ncen-data-sets).

    While the entities in Table 1 are subject to FFA Regulations as 
described above, FinCEN typically issues FFA Regulations to a 
significantly smaller subset of the eligible population. From 2022 to 
2025, FinCEN generally issued FFA Regulations to banks and broker-
dealers as defined in Table 1. Among these, FinCEN required reports 
from an average of 15 unique institutions per year. FinCEN has applied 
historical data on FFA Regulations to estimate the number of 
respondents per year. The estimated number of expected respondents per 
year is based on the average number of respondents per FFA Regulation 
issued over the three-year period from 2022 to 2025 multiplied by the 
average number of FFA Regulations issued per year over the same period.
    Estimated Number of Expected Respondents: 40 domestic financial 
institutions, annually on average.\25\
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    \25\ Because the same respondent may be subject to reporting 
requirements under more than one issued regulation in the same 
calendar year, the estimated number of expected respondents may 
exceed the number of unique entities to whom reporting and 
recordkeeping burdens would accrue. See infra discussion below.
---------------------------------------------------------------------------

    FinCEN is revising its estimate of expected respondents upward to 
reflect an increase in the quantity of FFA Regulations issued and an 
increase in the average number of financial institutions directed to 
respond to each such FFA Regulation since the most recent previous OMB 
control number renewal. In the three calendar-year period between 2019 
and 2022, FinCEN issued four FFA Regulations to an average of nine 
covered financial institutions per regulation.\26\ During the analogous 
three-year period between 2022 and 2025, FinCEN issued 11 FFA 
Regulations (about four per year) to an average of ten covered 
financial institutions per regulation.
---------------------------------------------------------------------------

    \26\ See FinCEN, ``Agency Information Collection Activities; 
Proposed Renewal; Comment Request; Renewal Without Change of Reports 
of Transactions With Foreign Financial Agencies'', 87 FR 1479 (Jan. 
11, 2022), n. 10 and 11.
---------------------------------------------------------------------------

    Estimated Total Annual Responses: 40 responses.\27\
---------------------------------------------------------------------------

    \27\ The estimated number of annual responses is based on the 
expectation that each newly issued regulation would engender one 
response per respondent, consisting of three reports (one initial 
and two subsequent), and is based on the average number of 
regulations issued per calendar year over the most recent three 
years multiplied by the average number of respondents per regulation 
issued during the same period. See discussion below.
---------------------------------------------------------------------------

    FinCEN is also revising the structure of its burden estimates to 
enhance comparability and tractability across the activities a covered 
financial institution is expected to undertake in compliance with 31 
CFR 1010.360. The downward revision in the estimated total annual 
responses in this renewal (40), as compared to the most recent previous 
estimate (84), does not reflect an expected decrease in responses, but 
rather a change in what a `response' is intended to represent.
    In formulating its estimates of reporting and recordkeeping burdens 
for this OMB control renewal, FinCEN anticipates that each FFA 
Regulation will require information from one or more respondents who 
would consequently incur incremental reporting and recordkeeping 
obligations unique to the regulation. Each respondent would be required 
to provide FinCEN with a response in the form of a report, or reports, 
with respect to each of the FFAs identified in the regulation. In prior 
renewals, FinCEN has referred to, and treated each of the reports 
provided to comply with an issued regulation as an individual response, 
and because the number of reports and the time-period covered by each 
report required has historically varied by regulation issued, this made 
the exercise of mapping respondents to responses to per-response burden 
for purposes of cost estimations less tractable and less likely to 
meaningfully represent the manner in which respondents view and 
operationalize their compliance activities. While the historical 
analysis below retains individual reports as the fundamental unit of 
analysis, for purposes of estimating PRA burdens, FinCEN is employing a 
standardized model that treats the sum total of reports a respondent 
provides to FinCEN as one response, composed of three notional reports, 
one that captures a more extensive, costly ``initial report,'' and 
represents all follow-on reporting as two ``subsequent reports'' of 
shorter length and lower associated costs (i.e., ``subsequent reports'' 
after the initial report).
    In calendar years 2022-2024, FinCEN issued a total of 11 FFA 
Regulations--approximately four per year. The FFA Regulations required 
that financial institutions respond with information on one to 308 FFAs 
per request, with an average of 50 FFAs per regulation.
    Four annual FFA Regulations multiplied by 50 FFAs per regulations 
equals 200 FFAs per year per respondent. During this period, there was 
one FFA Regulation that included 308 FFAs, which is significantly 
larger than the number of FFAs per regulation when compared to other 
FFA Regulations issued during the same period. Excluding that instance, 
the average number of FFAs per regulation was approximately 25 (24.4). 
FinCEN believes that instance to be an outlier. However, to maintain a 
conservative estimate, FinCEN has retained the higher figure of 50 FFAs 
per regulation.
    Although FFA Regulations require about 200 reports per respondent 
per year, each response requires multiple reports that are sent at 
different times. The initial report will include transactions that 
occurred over a specified ``look-back'' period. Each subsequent report 
will include transactions that have occurred since the initial report 
(if it is the first subsequent report) or since the most recent prior 
report (if it is not the first subsequent report). In general, initial 
reports are more burdensome because they typically require more data 
and initial research. Across the 11 FFA Regulations issued during the 
three-year period from 2022-2025, seven have been completed,\28\ and 
the resulting reports contained an average of approximately ten million 
total rows of data, with the initial report containing an average of 
approximately 60 percent of this volume.
---------------------------------------------------------------------------

    \28\ Several FFA Regulations from 2024 and 2025 are still 
ongoing.

---------------------------------------------------------------------------

[[Page 22161]]

    During the three-year period from 2022 to 2025, the average look-
back period per request was 737 days, which is approximately 24 months. 
FinCEN assesses that this is representative of the duration of the 
look-back period in future requests.\29\ FinCEN estimates that the 
initial report, requiring a look-back over an average two-year period, 
will take approximately 16 hours (two business days) for initial 
research, approval by management, and reporting (i.e. transmission), 
which includes setting up a template for subsequent reporting.
---------------------------------------------------------------------------

    \29\ This range can vary, particularly when ``renewing'' an FFA 
Regulation. In such cases, FinCEN asks respondents to ``look-back'' 
over a shorter period, generally one to three months to the last 
collection on the associated FFAs. In such cases, initial reporting 
burden will be smaller. FinCEN applies a conservative estimate for 
the purposes of estimating burden here, assuming FFAs that are the 
subject of a regulation are initial FFA Regulations with no 
immediate precedent.
---------------------------------------------------------------------------

    Over the same period, the number of subsequent reporting periods 
per FFA Regulation ranged from seven to 14, with an average of ten. The 
subsequent reports were always required over a period of 180 days. 
However, beginning in 2025 and for future FFA Regulations, FinCEN 
intends to require a smaller number of subsequent reporting periods, 
with as few as two per regulation, as appropriate. This approach will 
result in an average number of three reports per regulation under this 
framework: the initial report (including look-back), and two subsequent 
reports. FinCEN estimates that each subsequent report (an expected 
average of two in total) will take approximately two hours (one hour 
for data gathering and one hour for approval and reporting).
    Estimated Reporting and Recordkeeping Burden: 40,500 hours, as set 
out in Table 2, below.
    FinCEN considers the primary burden to be associated with the 
preparation of required reports, which it anticipates may potentially 
involve multiple stages of processing and review by respondents and/or 
their need to access multiple data systems, depending on the scope or 
complexity of the regulation or the nature of a given FFA.
    Generally, the information required to be reported pursuant to an 
FFA Regulation is basic information that a domestic financial 
institution must already maintain to comply with current BSA 
recordkeeping requirements. For example, a domestic financial 
institution sending or receiving transmittal orders (funds transfers) 
with a designated FFA would have access to the information required to 
be reported. The information required to be reported pursuant to an FFA 
Regulation falls into one or more of the following categories: (i) 
checks or drafts; (ii) transmittal orders; (iii) loans; (iv) commercial 
paper; (v) stocks; (vi) bonds; and (vii) certificates of deposit. 
Although FFA Regulations may concern any of these types of 
transactions, in general, over the past three years, FinCEN has only 
promulgated regulations associated with funds transfers. As noted 
above, FinCEN will specify the form and method for reporting and 
typically provides a reporting schedule to each specified financial 
institution. If a specified financial institution does not have any 
reportable transactions, that information must be reported to FinCEN.
    FinCEN also requires that filers maintain records of data reported 
pursuant to FFA Regulations. The FFA information is typically reported 
by uploading a comma-separated value file spreadsheet through FinCEN's 
Secure Information Sharing System, which allows the filer to save an 
electronic version of the report and satisfy the recordkeeping 
requirement. FinCEN estimates that the recordkeeping requirement will 
take five minutes on average.
    Table 2 provides a summary of the total expected annual burden 
hours for all FFA Regulations.

                     Table 2--Burden Associated With Each Portion of the Annual PRA Estimate
----------------------------------------------------------------------------------------------------------------
                                                   Expected
                                                  number of     Expected     Expected     Average       Total
                    Activity                         FFA       number of    frequency      burden       annual
                                                 regulations   respondent      per       hours per      burden
                                                    issued                  respondent   provision      hours
----------------------------------------------------------------------------------------------------------------
Filing initial report(s) \a\ of certain                    4           10            1          800       32,000
 transactions with designated FFAs \b\.........
Filing subsequent reports of certain                                                 2          100        8,000
 transactions with designated FFAs.............
Complying with recordkeeping requirements that                                       3        \d\ 4          500
 apply to reports \c\..........................
                                                ----------------------------------------------------------------
    Total......................................  ...........  ...........  ...........  ...........       40,500
----------------------------------------------------------------------------------------------------------------
\a\ The burden calculations in this table contemplate that the average number of FFAs per regulation issued is
  50, each of which would require its own report, and would thereby incur the following burden hours per report:
  16 (initial report), 2 (subsequent reports), and 1/12 (recordkeeping).
\b\ The filing of an initial report includes the applicable look-back period and includes the burden associated
  with operationalizing the reporting format specified by FinCEN.
\c\ Records associated with the reports produced in response to regulations issued pursuant to 31 CFR 1010.360
  are subject to the requirements in 31 CFR 1010.430.
\d\ Rounded to the nearest whole number (four) from approximately 4.2 (50 x 1/12 = ~ 4.167).

    In the previous renewal of this OMB control number, FinCEN revised 
its estimate of burden in response to comments received,\30\ which 
described a range of required response times for FFA Regulations of 
varying complexity.\31\ In that renewal, FinCEN proposed three 
categories of FFA Regulation: simple regulations (25% of total request, 
taking seven hours total per response on average), typical regulations 
(50% of total requests, taking 100 hours total per response on 
average), and complex regulations (25% of total requests, taking 360 
hours per response on average). The weighted average response time for 
these regulation categories is 141.75 hours in total. Between 2019 and 
2021 (the period before the comment letter was submitted), FinCEN FFA 
Regulations sought information on an average of seven FFAs per 
regulation. As discussed above, FinCEN has also historically

[[Page 22162]]

required seven subsequent reports before the recent change (where going 
forward, FinCEN expects to only require two subsequent reports in most 
FFA Regulations). Using this methodology in combination with the 
revised time estimates laid out in Table 2, the initial report for the 
past period (2022-2025) would be estimated to require 112 hours (16 
hours per 7 FFAs, conducted one time) and the subsequent reports are 
estimated to take 98 hours (two hours per 7 FFAs, conducted seven times 
on average), for a total of 210 hours on average per FFA Regulation. 
However, because subsequent reports were more frequent during this 
period, and therefore involved smaller data files, the corresponding 
subsequent report time for this period would be closer to one hour per 
FFA (instead of two hours per FFA). Applying this equivalence results 
in a total estimated average time of 161 hours per FFA Regulation 
during 2022-2025, which is a close approximation of the weighted 
average time per FFA Regulation from the previous renewal.
---------------------------------------------------------------------------

    \30\ See FinCEN, ``Agency Information Collection Activities; 
Proposed Renewal; Comment Request; Renewal Without Change of Reports 
of Transactions With Foreign Financial Agencies,'' 87 FR 1479 (Jan. 
11, 2022). See also the information collection request documents, 
including the supporting statement for the 2022 renewal at https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=202203-1506-001.
    \31\ See the public comment in response to the 2022 renewal at 
https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=202203-1506-001.
---------------------------------------------------------------------------

    Using the figures from Table 2, the average total time per request 
anticipated by this renewal is 1,000 hours (an initial report taking 16 
hours per FFA for 50 FFAs on average, plus two subsequent reports 
taking two hours per FFA for 50 FFAs on average). This increase is 
largely the result of the previous period (2022-2025) including several 
highly complex requests involving significantly more FFAs than were 
included in prior years' FFA Regulations. As discussed above, during 
this period there was an FFA Regulation that included 308 FFAs. 
Excluding that instance, the average number of FFAs per FFA Regulation 
was approximately 25 (24.4). While this previous period may therefore 
be exceptional, and therefore of limited predictive value for future 
expectations, FinCEN is not removing outliers from its estimates to 
take a more conservative approach to assessing the burden of issuing 
regulations. Using the figure of 25 FFAs per regulation results in an 
expected average total time per regulation of 500 hours, which is 
approximately equivalent to the upper end of the typical range 
described by the commenter for the 2019-2021 period.
    Estimated Total Annual Recordkeeping Cost: The estimated total 
annual PRA cost is $4,860,000, as set out in Table 3.
    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.\32\ The total 
estimated cost of the annual PRA burden is reflected in Table 3 below:
---------------------------------------------------------------------------

    \32\ 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 
provided by the Bureau of Labor Statistics (BLS) 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 parts 1020-1030. See BLS, 
Occupational Employment and Wage Statistics Tables, ``May 2023--
National industry-specific and by ownership,'' available at https://www.bls.gov/oes/tables.htm. The benefit factor is 1 plus the 
benefit/wages ratio. As of June 2023, Total Benefits = 29.4 and 
Wages and Salaries = 70.6 (29.4/70.6= 0.42) based on the BLS' 
Private Industry Workers Series data. See BLS, News Release, 
``Employer Costs for Employee Compensation--June 2023,'' available 
at https://www.bls.gov/news.release/archives/ecec_09122023.pdf. 
Because many employers provide non-wage benefits (e.g., insurance, 
paid leave), the private sector benefit is applied to reflect the 
total cost to the employer.

                               Table 3--Estimated Total Cost of Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
                          Activity \a\                             Burden hours      Wage rate      Total cost
----------------------------------------------------------------------------------------------------------------
Filing initial reports of certain transactions with designated            32,000            $120      $3,840,000
 FFAs...........................................................
Filing subsequent reports of certain transactions with                     8,000                         960,000
 designated FFAs................................................
Complying with the recordkeeping requirements in 31 CFR 1010.430             500                          60,000
                                                                 -----------------------------------------------
    Total annual cost...........................................  ..............  ..............       4,860,000
----------------------------------------------------------------------------------------------------------------
\a\ See respective activities in Table 2.

    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.\33\
---------------------------------------------------------------------------

    \33\ See 31 CFR 1010.430(d).
---------------------------------------------------------------------------

    Requests for Comment: 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.
    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's 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) As noted above, FinCEN data indicates that initial reporting 
volume requires significantly more research and templating than the 
subsequent reports. FinCEN estimated 16 hours for initial reports and 
two hours each for subsequent reports. Does this distribution of 
expected burden hours reflect how responses to FFA Regulations are 
executed? If not, how long does it take a firm on average to provide an 
initial report and each subsequent report? Are there any factors that 
affect this time burden that would improve FinCEN's estimates of burden 
or costs?
    (2) FinCEN's burden analysis recognizes that there may be 
technology costs associated with reporting and storing transaction 
data. Are these incremental costs readily quantifiable? If so, how much 
are they expected to vary by respondent? Do they differ in

[[Page 22163]]

relative or absolute value for smaller respondents?

Andrea M. Gacki,
Director, Financial Crimes Enforcement Network
[FR Doc. 2025-09310 Filed 5-22-25; 8:45 am]
BILLING CODE 4810-02-P
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