Notice2021-16854
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Multiple Financial Crimes Enforcement Network Information Collection Requests
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 6, 2021
Issuing agencies
Treasury Department
Abstract
The Department of the Treasury will submit the following information collection requests to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. The public is invited to submit comments on these requests.
Full Text
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<title>Federal Register, Volume 86 Issue 149 (Friday, August 6, 2021)</title>
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[Federal Register Volume 86, Number 149 (Friday, August 6, 2021)]
[Notices]
[Pages 43312-43315]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-16854]
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DEPARTMENT OF THE TREASURY
Agency Information Collection Activities; Submission for OMB
Review; Comment Request; Multiple Financial Crimes Enforcement Network
Information Collection Requests
AGENCY: Departmental Offices, U.S. Department of the Treasury.
ACTION: Notice.
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SUMMARY: The Department of the Treasury will submit the following
information collection requests to the Office of Management and Budget
(OMB) for review and clearance in accordance with the Paperwork
Reduction Act of 1995, on or after the date of publication of this
notice. The public is invited to submit comments on these requests.
DATES: Comments should be received on or before September 7, 2021 to be
assured of consideration.
ADDRESSES: Written comments and recommendations for the proposed
information collection should be sent within 30 days of publication of
this notice to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
FOR FURTHER INFORMATION CONTACT: Copies of the submissions may be
obtained from Molly Stasko by emailing <a href="/cdn-cgi/l/email-protection#c494968584b0b6a1a5b7b1b6bdeaa3abb2"><span class="__cf_email__" data-cfemail="9ccccedddce8eef9fdefe9eee5b2fbf3ea">[email protected]</span></a>, calling (202)
622-8922, or viewing the entire information collection request at
<a href="http://www.reginfo.gov">www.reginfo.gov</a>.
SUPPLEMENTARY INFORMATION:
Financial Crimes Enforcement Network (FinCEN)
1. Title: Transactions of Exempt Person and FinCEN Report 110--DOEP
Report.
OMB Control Number: 1506-0012.
Type of Review: Extension without change of a currently approved
collection.
Description: The legislative framework generally referred to as the
Bank Secrecy Act (BSA) consists of the Currency and Financial
Transactions Reporting Act of 1970, as amended by the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) (Pub. L.
107-56) and other legislation. The BSA is codified at 12 U.S.C. 1829b,
12 U.S.C. 1951-1959, 31 U.S.C. 5311-5314 and 5316-5332, and notes
thereto, with implementing regulations at 31 CFR Chapter X.
The BSA authorizes the Secretary of the Treasury, inter alia, to
require financial institutions to keep records and file reports that
are determined to have a high degree of usefulness in criminal, tax,
and regulatory matters, or in the conduct of intelligence or counter-
intelligence activities, to protect against international terrorism,
and to implement anti-money laundering (AML) programs and compliance
procedures. Regulations implementing Title II of the BSA appear at 31
CFR Chapter X.
The requirement for financial institutions to report certain
transactions in currency has been an important component of the BSA
from its inception. Regulations implementing this requirement have long
established a one-person, one-day, one-institution aggregate currency
transaction threshold of $10,000, above which every financial
institution must file a Currency Transaction Report (CTR). The Money
Laundering Suppression Act of 1994 amended the BSA to create certain
mandatory exemptions applicable to banks from the requirement for
financial institutions to file CTRs, and to give the Secretary
authority to create additional such exemptions. Regulations
implementing this exemption authority, including by requiring the
collection of information on the DOEP Report, are found at 31 CFR
1020.315.
Under 31 CFR 1020.315(a), a bank is not required to file a CTR with
respect to any transaction in currency between exempt persons and the
bank, or between an exempt person and other banks that are affiliated
with the bank.
31 CFR 1020.315(b) sets out that an exempt person is: (1) A bank,
to the extent of such bank's domestic operations; (2) a department or
agency of the United States, of any State, or of any political
subdivision of any State; (3) any entity established under the laws of
the United States, any State, or any political subdivision of any
State, or under an interstate compact, that exercises governmental
authority on behalf of the United States, any such State, or any such
political subdivision; (4) any entity, other than a bank, whose common
stock or analogous equity interests are listed on the New York Stock
Exchange, the American Exchange, or the NASDAQ Stock Market (a ``listed
entity''), provided that, if the listed entity is a financial
institution other than a bank, it is an exempt person only to the
extent of its domestic operations; (5) any subsidiary, other than a
bank, of a listed entity mentioned in the previous item (4) that is
organized under the laws of the United States or of any State, provided
that the listed entity owns at least 51 percent of the equity interest
of the subsidiary, and subject to the qualification that if the
subsidiary is a financial institution other than a bank, it is an
exempt person only to the extent of its domestic operations; (6) any
other commercial enterprise, with certain exceptions, that maintains a
transaction account at the bank for at least two months, frequently
engages in transactions with the bank in currency in excess of $10,000,
and is incorporated or organized under the laws of, or is registered as
and eligible to do business within, the United States or a State (a
``non-listed business''), but only to the extent of the non-listed
business customers' domestic
[[Page 43313]]
operations and only with respect to transactions conducted through the
non-listed business customer's exemptible accounts; or (7) any other
person, with certain exceptions, that maintains a transaction account
at the bank for at least two months, operates a firm that frequently
withdraws more than $10,000 in order to pay its U.S. employees in
currency, and is incorporated or organized under the laws of, or is
registered as and eligible to do business within, the United States or
a State (a ``payroll customer''), but solely with respect to
withdrawals for payroll purposes from existing exemptible accounts.
31 CFR 1020.315(c)(1) requires a bank to designate an exempt person
by filing the DOEP Report within 30 calendar days after the day of the
first reportable transaction in currency with that person that the bank
seeks to exempt from reporting. A bank holding company or one of its
bank subsidiaries may make such a designation on behalf of any or all
of the bank holding company's bank subsidiaries by listing those bank
subsidiaries in the DOEP Report that it files. However, a bank is not
required to file a DOEP Report for transfer of currency to or from (1)
any of the 12 Federal Reserve Banks, (2) a bank, to the extent of such
bank's domestic operations, (3) a department or agency of the United
States, of any State, or of any political subdivision of any State, or
(4) any entity established under the laws of the United States, any
State, or any political subdivision of any State, or under an
interstate compact between two or more States, that exercises
governmental authority on behalf of the United States or any such State
or political subdivision.
31 CFR 1020.315(d) requires a bank to review at least once annually
the continued eligibility of an exempt person that is a (1) listed
entity, (2) subsidiary of a listed entity, (3) non-listed business
customer, or (4) payroll customer. As part of the annual review, a bank
must also review the application to each existing account of a non-
listed business or payroll customer of the monitoring system that 31
CFR 1020.315(h)(2) requires the bank to maintain (related to suspicious
activity monitoring).
Under 31 CFR 1020.315(e), a bank must take steps to assure itself
that an exempt person meets the definition of that term (see 31 CFR
1020.315(b), summarized above), document the basis for its conclusion,
and document its compliance with the terms of the exemption, including
the operating rules in 31 CFR 1020.315(e)(2)-(9). A bank must also take
steps to document compliance with its suspicious activity monitoring
obligations under 31 CFR 1020.315(h)(2). The steps that the bank takes
under 31 CFR 1020.315(e) must be those that a reasonable and prudent
bank would take and document to protect itself from fraud or loss based
on misidentification of a person's status and, in the case of the
suspicious activity monitoring obligations, to identify suspicious
transactions.
31 CFR 1020.315(h)(1) states that the CTR exemption rules do not
relieve a bank of its obligation to report any suspicious transactions
pursuant to 31 CFR 1020.320, including any suspicious transactions or
attempted transactions in currency associated with the accounts of an
exempt person, or relieve a bank of any other reporting or
recordkeeping obligation imposed under the authority of the BSA.
Under 31 CFR 1020.315(h)(2), a bank must establish and maintain a
monitoring system that is reasonably designed to detect, for each
account of a non-listed business or payroll customer, transactions in
currency that would require a bank to file a suspicious activity report
(SAR).
Form: FinCEN Report 110--DOEP Report.
Affected Public: Businesses or other for-profit institutions; Not-
for-profit institutions.
Estimated Number of Respondents: 11,161.
Frequency of Response: As required.
Estimated Total Number of Annual Responses: 18,141.
Estimated Time per Response: 45 minutes for reporting, 15 minutes
for recordkeeping.
Estimated Total Annual Burden Hours: 18,141 hours.
2. Title: Additional records to be made and retained by dealers in
foreign exchange and brokers or dealers in securities.
OMB Control Number: 1506-0052 and 1506-0053.
Type of Review: Extension without change of a currently approved
collection.
Description: The legislative framework generally referred to as the
Bank Secrecy Act (BSA) consists of the Currency and Financial
Transactions Reporting Act of 1970, as amended by the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) (Pub. L.
107-56) and other legislation. The BSA is codified at 12 U.S.C. 1829b,
12 U.S.C. 1951-1959, 31 U.S.C. 5311-5314 and 5316-5332, and notes
thereto, with implementing regulations at 31 CFR Chapter X.
The BSA authorizes the Secretary of the Treasury, inter alia, to
require financial institutions to keep records and file reports that
are determined to have a high degree of usefulness in criminal, tax,
and regulatory matters, or in the conduct of intelligence or counter-
intelligence activities, to protect against international terrorism,
and to implement anti-money laundering (AML) programs and compliance
procedures. Regulations implementing Title II of the BSA appear at 31
CFR Chapter X.
a. 31 CFR 1022.410--Additional Records To Be Made and Retained by
Dealers in Foreign Exchange
31 CFR 1022.410(a) requires a dealer in foreign exchange to make
and maintain a record of the taxpayer identification number of certain
persons for whom a transaction account is opened or a line of credit is
extended, within 30 days of opening such an account or extending such a
line of credit, or longer if the person has applied for a taxpayer
identification or social security number. A dealer in foreign exchange
must also maintain a list containing the names, addresses, and account
or credit line numbers of those persons from whom it has been unable to
secure such information despite reasonable efforts. A dealer in foreign
exchange need not attempt to secure such information if the person is
an agency or instrumentality of a Federal, state, local, or foreign
government using an account for public funds, one of several categories
of aliens that are not permanent resident aliens, or an unincorporated
subordinate unit of a tax exempt organization covered by a group
exemption letter.
Under 31 CFR 1022.410(b), a dealer in foreign exchange must also
retain the original or a copy of nine types of documents: (1)
Statements of accounts from banks, including documents representing the
entries reflected on such statements; (2) daily work records, including
documents needed to identify and reconstruct currency transactions with
customers and foreign banks; (3) a record of each exchange of currency
involving transactions in excess of $1,000, including the customer's
name and address (and passport or tax identification number unless
received by mail or common carrier), the date and amount of the
transaction, and the currency name, country, and total amount of each
foreign currency; (4) signature cards or other documents evidencing
signature authority over each deposit or security account, containing
specified items of information about the customer
[[Page 43314]]
(including a record of the actual owner of the account if customer
accounts are maintained in a code name); (5) each item, including
checks, drafts, and transfers of credit, of more than $10,000 remitted
or transferred to a person, account, or place outside the United
States; (6) a record of each receipt of currency, other monetary
instruments, investment securities and checks, and of each transfer of
funds or credit, of more than $10,000 received on any one occasion
directly and not through a domestic financial institution, from any
person, account, or place outside the United States; (7) records
prepared or received by the dealer in foreign exchange in the ordinary
course of business that would be needed to reconstruct an account and
trace a check in excess of $100 deposited in such an account through
its internal recordkeeping system to its depository institution, or to
supply a description of such a deposited check; (8) a record of the
name, address and taxpayer identification number of any person
presenting a certificate of deposit for payment, as well as a
description of the instrument and the date of the transaction; and (9)
a system of books and records that enables the dealer in foreign
exchange to prepare an accurate balance sheet and income statement. To
the extent that these records include originals or copies of checks,
drafts, monetary instruments, investment securities, or other similar
instruments, copies of front and back of such instruments must
generally be retained. [3] The required records must be maintained for
five years.
b. 31 CFR 1023.410--Additional Records To Be Made and Retained by
Brokers or Dealers in Securities
Until October 1, 2003, 31 CFR 1023.410(a) required a broker or
dealer in securities to make a record of certain information. Until
October 1, 2008, a broker or dealer in securities was required to
maintain all such records, as well as a list containing the names,
addresses, and account or credit line numbers of those persons from
whom it had been unable to secure the required information despite
reasonable efforts. The customer identification program requirement for
brokers or dealers in securities has effectively superseded these
requirements.
Under 31 CFR 1023.410(b), a broker or dealer in securities must
retain an original or copy of: (1) Each document granting signature or
trading authority over each customer's account; (2) a record of each
remittance or transfer of funds, currency, checks, other monetary
instruments, investment securities, or credit, of more than $10,000 to
a person, account, or place outside the United States; (3) a record of
each receipt of currency, other monetary instruments, investment
securities, or checks, and of each transfer of funds or credit, of more
than $10,000 on any one occasion, not through a domestic financial
institution, from any person, account, or place outside the United
States; and (4) each record described in paragraphs (1), (2), (3), (5),
(6), (7), (8), and (9) of 17 CFR 240.17a-3(a), covering records to be
made by certain exchange members, brokers and dealers as identified in
17 CFR 240.17a-3. To the extent that these records include originals or
copies of checks, drafts, monetary instruments, investment securities,
or other similar instruments, copies of front and back of such
instruments must generally be retained. The required records must be
maintained for five years.
Form: Not applicable.
Affected Public: Businesses or other for-profit institutions; Not-
for-profit institutions.
Estimated Number of Respondents: 923 for 1506-0052; 3640 for 1506-
0053.
Frequency of Response: As required.
Estimated Time per Response: 16 hours for 1506-0052; 100 hours for
1506-0053.
Estimated Total Annual Burden Hours: 14,768 for 1506-0052; 364,000
for 1506-0053.
3. Title: Purchases of bank checks and drafts, cashier's checks,
money orders, and traveler's checks.
OMB Control Number: 1506-0057.
Type of Review: Extension without change of a currently approved
collection.
Description: The legislative framework generally referred to as the
Bank Secrecy Act (BSA) consists of the Currency and Financial
Transactions Reporting Act of 1970, as amended by the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) (Pub. L.
107-56) and other legislation. The BSA is codified at 12 U.S.C. 1829b,
12 U.S.C. 1951-1959, 31 U.S.C. 5311-5314 and 5316-5332, and notes
thereto, with implementing regulations at 31 CFR Chapter X.
The BSA authorizes the Secretary of the Treasury, inter alia, to
require financial institutions to keep records and file reports that
are determined to have a high degree of usefulness in criminal, tax,
and regulatory matters, or in the conduct of intelligence or counter-
intelligence activities, to protect against international terrorism,
and to implement anti-money laundering (AML) programs and compliance
procedures. Regulations implementing Title II of the BSA appear at 31
CFR Chapter X.
The BSA prohibits financial institutions from issuing any ``bank
check, cashier's check, traveler's check, or money order to any
individual in connection with a transaction or group of such
contemporaneous transactions which involves United States coins or
currency (or such other monetary instruments as the Secretary may
prescribe) in amounts or denominations of $3,000 or more'' unless the
individual either has a verified transaction account with the financial
institution or furnishes the financial institution with the information
required by regulations and that information is verified and recorded
by the financial institution; financial institutions must record the
method of account verification or the information required to be
furnished. To implement these requirements, FinCEN issued a regulation
requiring financial institutions to maintain records of the issuance or
sale of bank checks and drafts, cashier's checks, money orders, and
traveler's checks. The regulation on its face applies to all financial
institutions as defined in 31 CFR 1010.100(t). However, as a practical
matter banks and money services businesses (MSBs) are the types of
financial institutions most likely to be issuing or selling bank checks
and drafts, cashier's checks, money orders, and traveler's checks.
Under 31 CFR 1010.415, financial institutions are required to
maintain records of certain information related to the issuance or sale
of bank checks and drafts, cashier's checks, money orders, and
traveler's checks when the issuance or sale involves currency between
$3,000-$10,000, inclusive, to any individual purchaser of one or more
of these instruments. Under 31 CFR 1010.415(a)(1)(i), if the purchaser
has a deposit account with the financial institution, the financial
institution is required to maintain records of: (A) The name of the
purchaser; (B) the date of purchase; (C) the type(s) of instrument(s)
purchased; (D) the serial number(s) of each of the instrument(s)
purchased; and (E) the amount in dollars of each of the instrument(s)
purchased. Under 31 CFR 1010.415(a)(1)(ii), the financial institution
must also verify that the individual is a deposit accountholder or must
verify the individual's identity.
Under 31 CFR 1010.415(a)(2)(i), if the purchaser does not have a
deposit account with the financial institution, the financial
institution must maintain a record of: (A) The name and address of the
purchaser; (B) the social security
[[Page 43315]]
number of the purchaser, or if the purchaser is an alien and does not
have a social security number, the alien identification number; (C) the
date of birth of the purchaser; (D) the date of the purchase; (E) the
type(s) of instrument(s) purchased; (F) the serial number(s) of the
instrument(s) purchased; and (G) the amount in dollars of each of the
instrument(s) purchased. Under 31 CFR 1010.415(a)(2)(ii), the financial
institution must also verify the purchaser's name and address by
examination of a document which is normally acceptable as a means of
identification when cashing checks for nondepositors and which contains
the name and address of the purchaser, and must record the specific
identifying information.
Under 31 CFR 1010.415(b), financial institutions must treat
contemporaneous purchases of the same or different types of instruments
totaling $3,000 or more as one purchase. Multiple purchases during one
business day totaling $3,000 or more must be treated as one purchase if
an individual employee, director, officer, or partner of the financial
institution has knowledge that these purchases have occurred.
Under 31 CFR 1010.415(c), financial institutions must retain all
required records for a period of five years and make those records
available to the Secretary upon request at any time.
Form: Not applicable.
Affected Public: Businesses or other for-profit institutions; Not-
for-profit institutions.
Estimated Number of Respondents: 15,677.
Frequency of Response: As required.
Estimated Time per Response: 7.5 hours.
Estimated Total Annual Burden Hours: 117,578 hours.
Authority: 44 U.S.C. 3501 et seq.
Dated: August 3, 2021.
Molly Stasko,
Treasury PRA Clearance Officer.
[FR Doc. 2021-16854 Filed 8-5-21; 8:45 am]
BILLING CODE 4810-02-P
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