Notice2022-00332
Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Reports of Transactions With Foreign Financial Agencies
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
January 11, 2022
Issuing agencies
Treasury DepartmentFinancial Crimes Enforcement Network
Abstract
As part of its continuing effort to reduce paperwork and respondent burden, FinCEN invites comments on the proposed renewal, without change, of a currently approved information collection found in existing Bank Secrecy Act 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 of certain transactions with designated foreign financial agencies. Although no changes are proposed to the information collection itself, this request for comments covers a future expansion of the scope of the annual hourly burden and cost estimate associated with these regulations. This request for comments is made pursuant to the Paperwork Reduction Act of 1995.
Full Text
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<title>Federal Register, Volume 87 Issue 7 (Tuesday, January 11, 2022)</title>
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[Federal Register Volume 87, Number 7 (Tuesday, January 11, 2022)]
[Notices]
[Pages 1479-1484]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00332]
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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 a currently approved information collection found in
existing Bank Secrecy Act 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 of certain transactions
with designated foreign financial agencies. Although no changes are
proposed to the information collection itself, this request for
comments covers a future expansion of the scope of the annual hourly
burden and cost estimate associated with these regulations. 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
March 14, 2022
ADDRESSES: Comments may be submitted by any of the following methods:
<bullet> Federal E-rulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>.
Follow the instructions for submitting comments. Refer to Docket Number
FINCEN-2022-0001 and the specific Office of Management and Budget (OMB)
control number 1506-0055.
<bullet> Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2022-0001 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 regulation
requiring the reporting of certain transactions with designated foreign
financial agencies, but that does not describe the regulation or the
reporting requirement in detail will not be considered to contain
confidential information.
FOR FURTHER INFORMATION CONTACT: The FinCEN Regulatory Support Section
at 1-800-767-2825 or electronically at <a href="/cdn-cgi/l/email-protection#5234203112343b3c31373c7c353d24"><span class="__cf_email__" data-cfemail="204652436046494e43454e0e474f56">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Statutory and Regulatory Provisions
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), Public Law 107-56 (October 26,
2001), and other legislation, including most recently the Anti-Money
Laundering Act of 2020 (AML Act).\1\ The BSA is codified at 12 U.S.C.
1829b, 12 U.S.C. 1951-1960, 31 U.S.C. 5311-5314 and 5316-5336, and
includes notes thereto, with implementing regulations at 31 CFR Chapter
X.
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\1\ The AML Act was enacted as Division F, Sec. Sec. 6001-6511,
of the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021, Public Law 116-283, 134 Stat 3388 (2021).
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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 AML programs and compliance procedures.\2\ Regulations
implementing the BSA appear at 31 CFR Chapter X. The authority of the
Secretary to administer the BSA has been delegated to the Director of
FinCEN.\3\
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\2\ Section 358 of the USA PATRIOT Act added language expanding
the scope of the BSA to intelligence or counter-intelligence
activities to protect against international terrorism. Section 6101
of the AML Act added language further expanding the scope of the BSA
but did not amend these longstanding purposes.
\3\ Treasury Order 180-01 (re-affirmed Jan. 14, 2020).
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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 and file reports, when the resident,
citizen, or person makes a transaction or maintains a relation for any
person with a foreign financial agency.'' \4\ The term ``foreign
financial agency'' \5\ (FFA) means any person
[[Page 1480]]
engaging in any activities 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,
or 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.'' \6\ 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. The regulations implementing
reports of transactions with foreign financial agencies are found at 31
CFR 1010.360.
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\4\ 31 U.S.C. 5314(a).
\5\ 31 U.S.C. 5312(b)(2).
\6\ 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.
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31 CFR 1010.360(a) authorizes the Secretary, when the Secretary
deems appropriate, to promulgate regulations requiring specified
financial institutions to file reports of certain transactions with
designated FFAs.\7\
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\7\ 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 C.F.R. 1010.360(a).
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A regulation promulgated pursuant to 31 CFR 1010.360(a) must
designate one or more of the following categories of information to be
reported by the specified financial institution:
<bullet> 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, or 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.
<bullet> Transmittal orders received by a respondent financial
institution from a designated FFA or sent by the respondent financial
institution to a designated FFA, including all information maintained
by that institution pursuant to 31 CFR 1010.410 and 1020.410.
<bullet> Loans made by a 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
distributing proceeds; and collateral for loan.
<bullet> Commercial paper received or shipped by a respondent
financial institution, including the following information: Name of
maker; date and amount of paper; due date; certificate number; and
amount of transaction.
<bullet> Stocks received or shipped by a 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.
<bullet> Bonds received or shipped by a 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.
<bullet> Certificates of deposit received or shipped by a
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.
In issuing regulations as provided in 31 CFR 1010.360(a), 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.
Regulations issued pursuant to 31 CFR 1010.360(a) 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.
In issuing regulations under 31 CFR 1010.360(e), the Secretary: (i)
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)
cannot issue a regulation under 31 CFR 1010.360(a) for the purpose of
obtaining individually identifiable account information concerning a
customer, as defined by the Right to Financial Privacy Act,\8\ 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 a regulation pursuant to 31 CFR 1010.360(a)
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.
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\8\ 12 U.S.C. 3401 et seq.
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31 CFR 1010.430(d) requires that all records that are required to
be retained by Chapter X must be retained for a period of five years.
II. Paperwork Reduction Act of 1995 (PRA) \9\
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\9\ Public Law 104-13, 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.
Report 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:
<bullet> Renewal without change of a currently approved information
collection.
<bullet> Propose for review and comment a renewal of the portion of
the PRA burden that has been subject to notice and comment in the past
(the ``traditional annual PRA burden'').
[[Page 1481]]
<bullet> Propose for review and comment a future expansion of the
scope of the PRA burden (the ``supplemental annual PRA burden'').
Frequency: As required.
Estimated Number of Respondents: 9 domestic financial
institutions.\10\
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\10\ Between 2019-2021, FinCEN sent FFA requests to an average
of 9 financial institutions (5-13 financial institutions per request
for an average of 9 financial institutions per request).
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Estimated Total Annual Responses: 84 responses.\11\
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\11\ Between 2019-2021, FinCEN sent a total of 4 requests to an
average of 9 financial institutions, for a total average of 36
requests over three years. The requests asked for information on 1
to 12 FFAs per request, with an average of 6.5 (rounded up to 7)
FFAs per request. 36 total average requests multiplied by 7 FFAs per
request equals 252 responses over the course of 3 years. Therefore,
the annual estimated number of responses is 252 responses divided by
3 years, which equals 84 responses annually.
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Estimated Recordkeeping Burden:
In Part 1, FinCEN proposes for review and comment a renewal of the
estimate of the traditional annual PRA hourly burden, which includes a
scope and methodology similar to that used in the past, with the
incorporation of a more robust cost estimate. In the past, FinCEN
estimated that, for one FFA request, it would take one financial
institution five hours to report the required transactions as part of
one response. The scope and methodology used in the past did not factor
in that, as part of one FFA request, financial institutions may be
asked to report on multiple prior (``backward-looking'') and future
(``forward-looking'') transactions with a designated FFA. FinCEN
assesses that the volume of reportable transactions, per financial
institution and FFA request over a specified forward- and backward-
looking period, along with the burden to implement a monitoring system
for such transactions, would be the best indication of an annual hourly
burden estimate per financial institution in the future. For that
reason, in Part 2, FinCEN proposes for review and comment a methodology
to estimate the hourly burden and the cost of a future estimate of a
supplemental annual PRA burden that includes the burden and cost per
financial institution, per FFA request of complying with forward and
backward-looking reporting requirements. Finally, in Part 3, FinCEN
solicits input from the public about: (a) The accuracy of the
traditional annual PRA burden estimate; (b) the method proposed for the
calculation of the future supplemental annual PRA burden; (c) the
criteria, metrics, and most appropriate questions FinCEN should
consider when researching the information to estimate the future
traditional and supplemental annual PRA burden, according to the
methodology proposed; and (d) any other comments about the regulations
and the current and proposed future hourly burden and cost estimates of
these requirements.
Part 1. Traditional Annual PRA Burden and Cost
Generally, the information required to be reported pursuant to an
FFA regulation is basic information that a domestic financial
institution would already maintain based on 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
includes 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
requests may include any of these types of transactions, in general,
over the past three years, FinCEN has only made requests 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.
Because of the difficulty involved in estimating the (i) volume of
reportable transactions per FFA request over a specified forward- and
backward-looking period of time, and (ii) burden for a financial
institution to implement a monitoring system to conduct such searches,
FinCEN continues to estimate that reporting this information will take
five hours on average for the traditional annual PRA burden.
Additionally, 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. Therefore, FinCEN estimates the total
hourly reporting and recordkeeping burden for each FFA request is five
hours and five minutes per response by a financial institution.\12\
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\12\ The scope and methodology used in 2014, when FinCEN had not
yet issued regulations under this authority, estimated the number of
respondents per year as 1. The estimated number of responses was
also 1 with a reporting burden of 1 hour per respondent for a total
annual burden of 1 hour. The 1 hour burden estimate was to keep the
OMB control number effective. At the time, FinCEN noted that should
it issue regulations under this authority, it would provide a burden
estimate specific to those regulations. In 2016, following the
issuance of a non-public regulation under this authority, FinCEN
requested that OMB revise the number of respondents per year to 200,
at 1 response per respondent, with a reporting burden of 5 hours per
respondent, for a total annual burden of 1,000 hours. OMB issued a
Notice of Action reflecting the revised burden hours on March 13,
2019.
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FinCEN's estimate of the traditional annual PRA burden, therefore,
is 427 hours, as detailed in Table 1 below:
Table 1--Burden Associated With Each Portion of the Traditional Annual PRA Estimate
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Total hourly
Action Responses per year Time per instance burden
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A. Filing reports of certain 84 reports per year............... 5 hours................. 420
transactions with designated FFAs.
B. Complying with recordkeeping 84 records per year............... 5 minutes............... 7
requirements in 31 CFR 1010.430.
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Total Hourly Burden........... .................................. ........................ 427
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To calculate the hourly costs of the burden estimate, FinCEN
identified six roles and corresponding staff positions involved in
filing reports of certain transactions with designated FFAs: (i)
General oversight (providing institution-level process approval); (ii)
general supervision (providing process oversight); (iii) direct
supervision (reviewing operational-level work and cross-checking all or
a sample of the work product against supporting documentation); (iv)
clerical work (engaging in research and administrative review, and
recordkeeping); (v) legal
[[Page 1482]]
compliance (ensuring the reporting process is in legal compliance); and
(vi) computer support (ensuring feasibility of electronic submission
and housing reports internally).
FinCEN calculated the fully-loaded hourly wage for each of these
six roles by using the mean wage estimated by the U.S. Bureau of Labor
Statistics (BLS),\13\ and computing an additional benefits cost as
follows:
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\13\ The U.S. Bureau of Labor Statistics, May 2020 OEWS National
Industry-Specific Occupational Employment and Wage Estimates
(<a href="http://bls.gov">bls.gov</a>). The most recent data from the BLS corresponds to May
2020. For the benefits component of total compensation, see U.S.
Bureau of Labor Statistics, ``Table 9. Private industry workers, by
major occupational group: employer costs per hour worked for
employee compensation and costs as a percentage of total
compensation'', available at Employer Costs for Employee
Compensation Historical Tables--June 2021 (<a href="http://bls.gov">bls.gov</a>). The ratio
between benefits and wages for private industry workers is $10.83
(hourly benefits)/$25.80 (hourly wages) = 0.42, as of March 2021.
The benefit factor is 1 plus the benefit/wages ratio, or 1.42.
Multiplying each hourly wage by the benefit factor produces the
fully-loaded hourly wage per position.
Table 2--Fully-Loaded Hourly Wage by Role and BLS Job Position for All Financial Institutions Covered by This
Notice
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Mean hourly Benefit Fully-loaded
Role BLS-code BLS-name wage \14\ factor hourly wage
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General oversight \15\.......... 11-1010 Chief Executive\16\ $107.12 1.42 $152.11
General supervision............. 11-3031 Financial Manager.. 74.59 1.42 105.92
Direct supervision.............. 13-1041 Compliance Officer. 35.81 1.42 50.85
Clerical work (research, review, 43-3099 Financial Clerk.... 23.27 1.42 33.04
and recordkeeping).
Legal compliance................ 23-1010 Lawyers and 85.66 1.42 121.64
Judicial Law
Clerks.
Computer support................ 11-3021 Computer and 77.77 1.42 110.43
Information
Systems Managers.
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FinCEN estimates that, in general and on average,\17\ each role
would spend different amounts of time on each portion of the
traditional annual PRA burden, as follows:
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\14\ For each occupation, FinCEN took the average of reported
mean hourly wage across 9 affected financial industries (as measured
at the most granular NAICS code available, whether at the 2, 3, 4 or
5 digit NAICS code; see the BLS May 2020 OEWS National Industry-
Specific Occupational Employment and Wage Estimates (<a href="http://bls.gov">bls.gov</a>)).
\15\ General oversight may include board of directors/trustees
approval.
\16\ Chief executive officer is the highest paid category in the
BLS Occupational Employment Statistics. For that reason, FinCEN is
conservatively estimating the highest wage rate available for its
cost analysis.
\17\ By ``in general,'' FinCEN means without regard to outliers
(e.g., financial institutions with FFA reporting requirements with
complexities that are uncommonly higher or lower than those of the
population at large). By ``on average,'' FinCEN means the mean of
the distribution of each subset of the population.
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For filing reports of certain transactions with designated FFAs,
the cost of each burden hour is estimated to be $95.00, as shown in
Table 3 below:
Table 3--Equal Weighted Average Hourly Cost of Filing Reports of Certain
Transactions With Designated FFAs
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% Time Hourly cost
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General Oversight....................... 16.67 $25.35
General Supervision..................... 16.67 17.65
Direct Supervision...................... 16.67 8.48
Clerical Work........................... 16.67 5.51
Legal Compliance........................ 16.67 20.27
Computer Support........................ 16.67 18.41
-------------------------------
Equal Weighted Average Hourly Cost.. .............. 95.67
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\*\ $95.67 rounded to $95.00.
The total estimated cost of the traditional annual PRA burden is
$40,565 as reflected in Table 4 below:
Table 4--Total Cost of Traditional Annual PRA Burden
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Steps Hourly burden Hourly cost Total cost
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Filing reports of certain transactions with designated FFAs \18\ 420 \19\ $95.00 $39,900
(divided between the roles listed in Table 2)..................
Complying with the recordkeeping requirements in 31 CFR 1010.430 \20\ 7 \21\ 95.00 665
(divided between the roles listed in Table 2)..................
Total cost.................................................. .............. .............. 40,565
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[[Page 1483]]
Part 2. Supplemental Annual PRA Burden
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\18\ See Table 1.
\19\ See Table 3.
\20\ See Table 1.
\21\ See Table 3.
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In the future, FinCEN intends to add a supplemental annual PRA
burden calculation that will include the estimated hourly burden and
cost to comply with forward- and backward-looking reporting
requirements as part of filing reports of certain transactions with
designated FFAs. This estimate will include the burden associated with
implementing a monitoring system to identify such transactions.
During the period from 2019 to 2021, FFA regulations issued by
FinCEN had a forward- and backward-looking reporting requirement.
Specified financial institutions were required to report forward 90-180
days out from the effective date of the regulation (usually the date of
issuance), and backward 14 months to five years prior to the effective
date of the regulation. Specified financial institutions were required
to file one report for certain backward-looking transactions, and a
report every 30-days for certain forward-looking transactions. As a
result, one FFA regulation could result in as many as 7 different
reporting periods.\22\ The majority of financial institutions combined
the reportable transactions for all FFAs listed in one regulation \23\
into a single report for each reporting period, thereby reducing the
overall number of reports the financial institution might have
otherwise provided.
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\22\ 180 days divided into 30-day increments results in 6
forward-looking reports. Adding one backward-looking report gives a
totals of 7 reports.
\23\ Between 2019-2021, FinCEN issued regulations that asked for
information on 1 to 12 FFAs.
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As noted above, FinCEN assesses that the volume of reportable
transactions per financial institution and FFA request, over a
specified forward- and backward-looking period, along with the burden
to implement a monitoring system for such transactions, would be the
best indication of an annual hourly burden estimate in the future.
FinCEN does not have the necessary information to provide a tentative
estimate for these supplemental PRA hourly burdens and costs within the
current notice. In addition, FinCEN does not have all the necessary
information to precisely estimate the traditional annual PRA burden.
For that reason, FinCEN is relying on estimates used in prior renewals
of this OMB control number and the applicable regulations. FinCEN
further recognizes that after receiving public comments as a result of
this notice, future traditional annual PRA hourly burden and cost
estimates may vary significantly. FinCEN intends to conduct more
granular studies of the actions included in the proposed scope of the
supplemental annual PRA burden in the near future to arrive at more
precise estimates of net BSA hourly burden and cost.\24\ The data
obtained in these studies also may result in a significant variation of
the estimated traditional annual PRA burden.
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\24\ Net hourly burden and cost are the burden and cost a
financial institution incurs to comply with requirements that are
unique to the BSA, and that do not support any other business
purpose or regulatory obligation of the financial institution.
Burden for purposes of the PRA does not include the time and
financial resources needed to comply with an information collection,
if the time and resources are for things a business (or other
person) does in the ordinary course of its activities if the agency
demonstrates that the reporting activities needed to comply are
usual and customary. 5 CFR 1320.3(b)(2). For example, a financial
institution may be collecting and maintaining information on certain
transactions with designated FFAs in order to satisfy other
obligations including (i) protecting the financial institution from
fraud against itself or its customers, or (ii) complying with other
non-BSA regulatory requirements such as those imposed by the
specific Federal functional regulator.
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Estimated Recordkeeping Burden: The average estimated annual PRA
burden, measured in hours per respondent, is five hours and five
minutes (five burden hours to file reports of certain transactions with
designated FFAs, and five minutes to comply with recordkeeping
requirements).
Estimated Number of Respondents: 9, as noted above in Section II.
Estimated Total Annual Responses: 84 responses reporting on certain
transactions with designated FFAs annually; and 84 instances of
recordkeeping associated with these responses annually, as noted in
Section II.
Estimated Total Annual Recordkeeping Burden: The estimated total
annual PRA burden is 427 hours, as set out in Table 1.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is $40,565, as set out in Table 4.
An Agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid OMB control number. Records required to be
retained under the BSA must be retained for five years.
Part 3. Request for Comments
(a) Specific request for comments on the traditional annual PRA
hourly burden and cost.
FinCEN invites comments on any aspect of the traditional annual PRA
burden, as set out in Part 1 of this notice. In particular, FinCEN
seeks comments on the adequacy of: (i) FinCEN's assumptions underlying
its estimate of the burden; (ii) the estimated number of hours required
by each portion of the burden; and (iii) the organizational levels of
the financial institution engaged in each portion of the burden, their
estimated hourly remuneration, and the estimated proportion of
participation by each role. FinCEN encourages commenters to include any
publicly available sources for alternative estimates or methodologies.
(b) Specific request for comments on the proposed criteria for
determining the scope of a supplemental annual PRA hourly burden and
cost estimate.
FinCEN invites comments on any aspect of the criteria for a future
estimate of the supplemental annual PRA burden, as set out in Part 2 of
this notice.
(c) Specific request for comments on the appropriate criteria,
methodology, and questionnaire required to obtain information to more
precisely estimate the supplemental annual PRA hourly burden and cost.
FinCEN invites comments on the most appropriate and comprehensive
means to question financial institutions about the annual hourly burden
and cost attributable solely to complying with the regulations that
require reports of transactions with designated FFAs.
The supplemental annual PRA hourly burden and cost estimate to
comply with the regulations that require reports of transactions with
designated FFAs must take into consideration only the effort involved
in obtaining those data elements that are used exclusively for
complying with requirements under 31 CFR 1010.360 and 31 CFR 1010.430,
respectively. Given the complexity in determining what portion of the
effort to include in the estimate, FinCEN seeks comments from the
public regarding any questions we should consider posing in future
notices, in addition to the specific questions for comment outlined
directly below.
Specific Questions for Comments
<bullet> What is the burden to comply with requests for records
issued under the FFA regulations (31 CFR 1010.360 and 31 CFR 1010.430)?
<bullet> How much time is spent on complying with the backward-
looking requirements of an FFA request?
<bullet> How much time is spent on complying with the forward-
looking requirements of an FFA request?
<bullet> Of the time spent on complying with backward- or forward-
looking reporting requirements, what percentage
[[Page 1484]]
is spent by an employee with the role of general oversight? Of general
supervision? Of direct supervision? Of clerical work? Of legal
compliance? Of computer support?
<bullet> Are there employees with any other roles and corresponding
staff positions involved in filing reports of certain transactions with
designated FFAs?
<bullet> Does your financial institution typically report the data
for requests that involve multiple designated FFAs in one report or
multiple reports for each tranche of reporting?
<bullet> What challenges does your financial institution face or
overcome in complying with FFA regulations?
<bullet> What can be done to improve transparency and communication
as part of the FFA reporting process?
General Request for Comments
Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval. All comments will
become a matter of public record. Comments are invited on: (i) Whether
the collection of information is necessary for the proper performance
of the functions of the agency, including whether the information shall
have practical utility; (ii) the accuracy of the agency's estimate of
the burden of the collection of information; (iii) ways to enhance the
quality, utility, and clarity of the information to be collected; (iv)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology; and (v) estimates
of capital or start-up costs and costs of operation, maintenance, and
purchase of services to provide information.
Himamauli Das,
Acting Director, Financial Crimes Enforcement Network.
[FR Doc. 2022-00332 Filed 1-10-22; 8:45 am]
BILLING CODE 4810-02-P
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</html>Indexed from Federal Register on January 11, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.