Notice2022-03260
Agency Information Collection Activities; Proposed Renewal; Comment Request; Renewal Without Change of Additional Records To Be Made and Retained by Casinos
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
February 16, 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 require casinos to secure and maintain a record of the name, permanent address, and social security number of each person who deposits funds or opens an account at the casino, or to whom the casino extends a line of credit. The regulations also require that casinos retain originals or copies of specified documents relating to account and transaction records. Although no changes are proposed to the information collections themselves, 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 32 (Wednesday, February 16, 2022)</title>
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[Federal Register Volume 87, Number 32 (Wednesday, February 16, 2022)]
[Notices]
[Pages 8935-8941]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03260]
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DEPARTMENT OF THE TREASURY
Financial Crimes Enforcement Network
Agency Information Collection Activities; Proposed Renewal;
Comment Request; Renewal Without Change of Additional Records To Be
Made and Retained by Casinos
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
require casinos to secure and maintain a record of the name, permanent
address, and social security number of each person who deposits funds
or opens an account at the casino, or to whom the casino extends a line
of credit. The regulations also require that casinos retain originals
or copies of specified documents relating to account
[[Page 8936]]
and transaction records. Although no changes are proposed to the
information collections themselves, 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
April 18, 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-2022-0004 and the specific Office of Management and Budget (OMB)
control number 1506-0054.
<bullet> Mail: Policy Division, Financial Crimes Enforcement
Network, P.O. Box 39, Vienna, VA 22183. Refer to Docket Number FINCEN-
2022-0004 and OMB control number 1506-0054.
Please submit comments by one method only. Comments will be
reviewed consistent with the Paperwork Reduction Act of 1995 and
applicable OMB regulations and guidance. Comments submitted in response
to this notice will become a matter of public record. Therefore, you
should submit only information that you wish to make publicly
available.
FOR FURTHER INFORMATION CONTACT: The FinCEN Regulatory Support Section
at 1-800-767-2825 or electronically at <a href="/cdn-cgi/l/email-protection#2640544566404f4845434808414950"><span class="__cf_email__" data-cfemail="6600140526000f0805030848010910">[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. 1951-1959, 31 U.S.C. 5311-5314 and 5316-5336, and
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 (the Secretary),
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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With respect to each deposit, account, or line of credit, 31 CFR
1021.410(a) requires a casino to secure and maintain a record of the
name, permanent address (``address''), and social security number (SSN)
of the person involved at the time the funds are deposited, the account
is opened, or credit is extended.\4\ Where the deposit, account, or
line of credit is in the name of two or more persons, the casino must
secure the name, address, and SSN of each person having a financial
interest in the deposit, account, or line of credit. The casino is
required to verify the name and address of such person(s) at the time
the deposit is made, the account is opened, or credit is extended, by
the examination of a document as described in 31 CFR 1010.312.\5\ The
specific identifying information relied upon must be recorded by the
casino in the manner described in 31 CFR 1010.312.\6\ If a casino is
unable to secure the required SSNs, the casino will not be deemed to be
in violation of 31 CFR 1021.410 if the casino has made reasonable
efforts to secure the SSNs and it maintains a list of the names and
addresses of those persons from whom the casino was unable to obtain
the SSNs. The casino must make the list available to the Secretary upon
request. If a person is a nonresident alien, the casino is also
required to record the person's passport number or a description of
another government document used to verify his/her identity.
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\4\ References to ``casinos'' include both ``casinos'' and
``card clubs,'' as those terms are defined at 31 CFR 1010.100(t)(5)
and (6).
\5\ In October 2021, FinCEN granted limited exceptive relief to
allow casinos and card clubs to use suitable non-documentary methods
to verify the identity of online customers. See FIN-2021-R001,
``Exceptive Relief for Casinos from Certain Customer Identity
Verification Requirements,'' (October 19, 2021), available at
<a href="https://www.fincen.gov/sites/default/files/2021-10/Casino%20Exceptive%20Relief%20101921_0.pdf">https://www.fincen.gov/sites/default/files/2021-10/Casino%20Exceptive%20Relief%20101921_0.pdf</a>.
\6\ 31 CFR 1010.312 requires verification of identity by
examination of a document generally accepted within the banking
community as a means of identification when cashing checks for non-
depositors. The document relied upon for verification must be
recorded.
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Under 31 CFR 1021.410(b), a casino must retain either the original
or a copy of each of the following:
<bullet> A record of each time the casino receives funds for credit
to or deposit into any person's account, including the name, address,
and SSN of the person from whom the casino receives the funds, the date
of receipt of the funds and the amount received. If the person from
whom the funds were received is a non-resident alien, the casino is
required to obtain and record the person's passport number or a
description of another government document used to verify the person's
identity;
<bullet> A record of each bookkeeping entry made to a customer's
deposit or credit account with the casino;
<bullet> Each statement, ledger card, or other record of each
deposit or credit account with the casino, showing each transaction in
or with respect to a customer's account with the casino;
<bullet> A record of each extension of credit in excess of $2,500,
the terms and conditions of each such extension of credit, and
repayments. The record must include the customer's name, address, SSN,
and the date and amount of the transaction (including repayments). If
the credit is extended to a non-resident alien, the casino must obtain
and record the non-resident alien's passport number or a description of
another government document used to verify identity;
<bullet> A record of each advice, request or instruction received
or given by the casino with respect to a transaction involving a
person, account, or place outside the United States. If the transaction
is a transfer outside the United States on behalf of a third party, the
record must include the third party's name, address, SSN, signature,
and the date and amount of the transaction. If the transaction is a
transfer received from outside the United States on behalf of a third
party, the same records must be obtained with regard to the third
party;
<bullet> Records prepared or received by the casino in the ordinary
course of business that would be needed to reconstruct a person's
deposit or credit account with the casino or that would be needed to
trace a check deposited with the casino through the casino's records to
the bank of deposit;
<bullet> All records, documents, or manuals required to be
maintained by a casino under state and local laws or
[[Page 8937]]
regulations, and regulations of any governing Indian tribe or tribal
government;
<bullet> All records which are prepared or used by a casino to
monitor a customer's gaming activity;
<bullet> A separate record containing a list of each transaction
between the casino and its customers involving the following types of
instruments having a face value of $3,000 or more: (i) Personal checks;
(ii) business checks; (iii) official bank checks; (iv) cashier's
checks; (v) third-party checks; (vi) promissory notes; (vii) traveler's
checks; and (viii) money orders. The list must contain the time, date,
and amount of the transaction; the name and address of the customer;
the type of instrument; the name of the drawee or issuer of the
instrument; all reference numbers (e.g., casino account number,
personal check number, etc.); and the name or casino license number of
the casino employee who conducted the transaction. A casino must place
applicable transactions on the list in the chronological order in which
they occur;
<bullet> A copy of the compliance program described in 31 CFR
1021.210(b); \7\ and
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\7\ 31 CFR 1021.410(b)(10) requires each casino to retain a copy
of the casino's AML compliance program as described in 31 CFR
1021.210(b). The burden for casinos to comply with 31 CFR 1021.210
is accounted for and renewed with OMB control number 1506-0051. For
that reason, FinCEN does not need to estimate burden in this notice
related to 31 CFR 1021.410(b)(10). See 85 FR 83676, Dec. 22, 2020,
for the most recent renewal of OMB control number 1506-0051.
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<bullet> For card clubs only,\8\ records of all currency
transactions by customers, including, without limitation, records in
the form of currency transaction logs and multiple currency transaction
logs, and records of all activity at cages or similar facilities,
including cage control logs.
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\8\ 31 CFR 1010.100(t)(5)(iii) clarifies that any reference to
casino in chapter X, other than in paragraph (t)(5) and (t)(6) of 31
CFR 1010.100, shall also include reference to a card club, unless
the provision in question contains specific language varying its
application to card clubs or excluding card clubs.
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Under 31 CFR 1021.410(c), casinos that input, store, or retain, in
whole or in part, for any period of time, any record required to be
maintained by 31 CFR 1010.410 or 31 CFR 1021.410 on computer disk,
tape, or other machine-readable media must retain those records in the
same format.\9\ All indexes, books, programs, record layouts, manuals,
formats, instructions, file descriptions, and similar materials that
would enable a person to readily access and review the records
described in 31 CFR 1010.410 and 31 CFR 1021.410, and that are
recorded, stored, or retained on computer disk, tape or other machine-
readable media, must be retained for the period of time such records
are required to be retained.\10\
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\9\ In addition to 31 CFR 1021.410, casinos are required to
collect and retain information related to transmittals of funds
pursuant to 31 CFR 1010.410. The burden for financial institutions
to comply with 31 CFR 1010.410 is included in OMB control number
1506-0058. OMB control number 1506-0058 was renewed in 2021,
following a notice and request for comment published in the Federal
Register (See 85 FR 84105, Dec. 23, 2020). In the notice, FinCEN
stipulated that although 31 CFR 1010.410 applies to all financial
institutions, only certain financial institutions engage in the
types of transactions described in 31 CFR 1010.410. Casino are one
of the types of financial institutions that do not typically engage
in the types of transactions described in 31 CFR 1010.410. Any
similar type of transaction conducted by a casino is generally
covered under 31 CFR 1021.410.
\10\ Pursuant to 31 CFR 1010.430(d), covered financial
institutions, including casinos, are required to maintain records of
certain financial transactions for a period of five years.
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II. Paperwork Reduction Act of 1995 (PRA) <SUP>11</SUP>
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\11\ Public Law 104-13, 44 U.S.C. 3506(c)(2)(A).
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Title: Additional records to be made and retained by casinos (31
CFR 1021.410).
OMB Control Number: 1506-0054.
Report Number: Not applicable.
Abstract: FinCEN is issuing this notice to renew the OMB control
number for regulations requiring additional records to be made and
retained by casinos.
Affected Public: Businesses or other for-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'').
<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: 993 casinos.\12\
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\12\ Table 1 below sets forth a breakdown of the types of
casinos covered by this notice.
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Estimated Recordkeeping Burden: In Part 1 of this notice, FinCEN
describes the breakdown of the estimated number of casinos, by type. In
Part 2, 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. The scope and methodology
used in the past assigned a single combined total annual hourly burden
estimate, per casino, to multiple recordkeeping requirements within the
regulations. In Part 3, 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 broken down by each unique type of recordkeeping requirement
covered by the regulations being renewed. The methodology also includes
identifying estimates of the number of transactions conducted annually,
per casino that would trigger each unique recordkeeping requirement.
Finally, in Part 4, FinCEN solicits input from the public about: (a)
The accuracy of the estimate of the traditional annual PRA burden; (b)
the method proposed to be more granular in the calculation of burden
per unique recordkeeping requirement, within the regulations, to
establish a 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 regulation and the current and
proposed future hourly burden and cost estimates of these requirements.
[[Page 8938]]
Part 1. Breakdown of the Casinos Covered by This Notice
The breakdown of casinos, by type, covered by this notice is
reflected in Table 1 below:
Table 1--Breakdown of Casinos Covered by This Notice, by Type of Casino
------------------------------------------------------------------------
Number of
Type of casino casinos
------------------------------------------------------------------------
Casino.................................................. \13\ 466
Tribal casino........................................... \14\ 527
---------------
Total number of casinos............................. \15\ 993
------------------------------------------------------------------------
Part 2. Traditional Annual PRA Burden and Cost
(a) 31 CFR 1021.410(a) and (b)(1)-(9) \16\
Each casino must secure and maintain a record of the name, address,
and SSN of each person who deposits funds, opens an account, or obtains
a line of credit with the casino. Each casino must verify and document
verification of this information. If a casino is unable to obtain SSNs
for any of these transactions after making a reasonable effort to do
so, the casino must maintain a list of the names and addresses of
persons from whom the casino was unable to obtain SSNs, to be made
available to the Secretary of Treasury upon request.
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\13\ According to the numbers provided to FinCEN by the American
Gaming Association (AGA), there are 466 commercial class casinos as
of October 20, 2020.
\14\ According to the numbers provided to FinCEN by the AGA,
there are 527 tribal properties as of October 20, 2020.
\15\ According to numbers provided to FinCEN by the AGA, the
total number of casinos includes 223 commercial and tribal casinos
in Nevada as of October 20, 2020. This number does not include
restricted locations, i.e., those with 15 slot machines or fewer.
See also supra note 8. FinCEN does not have a source to estimate the
number of card clubs impacted by 31 CFR 1021.410, therefore, the
number of card clubs is not included in the total estimated number
of casinos.
\16\ See supra note 7.
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Each casino must retain the original or a copy of each of the types
of records outlined in 31 CFR 1021.410(b)(1)-(9), as described in
additional detail in Section I above.
There are practical challenges to (i) determining the total number
of deposits accepted, accounts opened, or lines of credit extended by
each casino annually, and (ii) estimating how many records as described
under 31 CFR 1021.410(b)(1)-(9) are generated by each casino each year.
Because of these challenges, in the past, FinCEN has generally
estimated the number of hours it would take for a casino to obtain and
retain the records described in 31 CFR 1021.410(a) and 31 CFR
1021.410(b)(1)-(9) as being the same for every casino: 107.5 hours per
casino.
(b) 31 CFR 1021.410(b)(11)
31 CFR 1021.410(b)(11) requires each card club \17\ to document
records of all currency transactions by customers and to retain the
original or copy or reproduction of all currency transactions logs,
multiple currency transaction logs, and cage control logs.
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\17\ See supra note 8.
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FinCEN does not have a way to estimate the number of cash
transactions conducted annually per card club. In addition, FinCEN does
not have a source to estimate the number of card clubs impacted by this
regulation. For these reasons, in the past, FinCEN has estimated the
total number of cash transactions conducted by card clubs, in total,
annually and assessed a burden estimate of 5 minutes per transaction.
(c) 31 CFR 1021.410(c)
Pursuant to 31 CFR 1021.410(c), casinos must record any of the
records required to be maintained under 31 CFR 1010.410 and 31 CFR
1021.410 on computer disk, tape, or other machine-readable media to
retain those records in same format for five years.
The records required to be maintained under 31 CFR 1021.410 are
described in more detail above.\18\ As noted above, FinCEN has no way
to estimate the volume of transactions described in 31 CFR 1021.410
that are conducted annually by casinos. For that reason, in the past,
FinCEN has generally estimated that the annual burden per casino to
maintain such records in the format described in 31 CFR 1021.410(c) is
the same for all casinos: 4 hours.
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\18\ See supra note 9.
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FinCEN's estimate of the traditional annual PRA burden, therefore,
is 128,637 hours, as detailed in Table 2 below:
Table 2--Burden Associated With Each Portion of the Traditional Annual PRA Estimate
----------------------------------------------------------------------------------------------------------------
Number of casinos or Total hourly
Action transactions (see Table 1) Time burden
----------------------------------------------------------------------------------------------------------------
Complying with recordkeeping 993....................... 107.5 hours per casino.... * 106,748
requirements under 31 CFR 1021.410(a) &
(b)(1)-(9).
Complying with recordkeeping 215,000 transactions 5 minutes per transaction. * 17,917
requirements under 31 CFR conducted by card clubs
1021.410(b)(11). in total \19\.
Complying with recordkeeping 993....................... 4 hours per casino........ 3,972
requirements under 31 CFR 1021.410(c).
---------------
Total Hourly Burden................. .......................... .......................... 128,637
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* 106,747.5 rounded to 106,748; 17,916.6 round to 17,917.
To calculate the hourly costs of the burden estimate, FinCEN
identified six roles and corresponding staff positions involved in
obtaining and maintain records as required by 31 CFR 1021.410: (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 compliance (ensuring the records are in legal
compliance); and (vi) computer support (ensuring records can be
properly stored and retrieved electronically if necessary).
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\19\ FinCEN does not have a way to estimate the number of cash
transactions conducted annually per card club. In addition, FinCEN
does not have a source to estimate the number of card clubs impacted
by this regulation. In the past FinCEN estimated the total number of
cash transactions conducted by card clubs annually was 215,000.
Because FinCEN does not have a reliable source to estimate the
number of cash transactions conducted by card clubs annually, and we
did not receive comments contradicting our estimate of 215,000 cash
transactions in the last renewal of this regulation, we will
continue to use this estimate as part of the traditional annual PRA
burden estimate.
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FinCEN calculated the fully-loaded hourly wage for each of these
six roles
[[Page 8939]]
by using the mean wage estimated by the U.S. Bureau of Labor Statistics
(BLS),\20\ and computing an additional benefits cost as follows:
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\20\ 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 3--Fully-Loaded Hourly Wage by Role and BLS Job Position for All Financial Institutions Covered by This
Notice
----------------------------------------------------------------------------------------------------------------
Mean hourly Benefit Fully-loaded
Role BLS-code BLS-name wage \21\ factor hourly wage
----------------------------------------------------------------------------------------------------------------
General oversight \22\............ 11-1010 Chief Executive \23\ $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 Judicial 85.66 1.42 121.64
Law Clerks.
Computer support.................. 11-3021 Computer and 77.77 1.42 110.43
Information Systems
Managers.
----------------------------------------------------------------------------------------------------------------
FinCEN estimates that, in general and on average,\24\ each role
would spend different amounts of time on each portion of the
traditional annual PRA burden, as follows:
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\21\ 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>)).
\22\ General oversight may include board of directors/trustees
approval.
\23\ 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.
\24\ By ``in general,'' FinCEN means without regard to outliers
(e.g., casinos that conducted transactions that warrant
recordkeeping 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.
Table 4--Weighted Average Hourly Cost of Obtaining and Maintaining the
Records Required Under 31 CFR 1021.410
------------------------------------------------------------------------
Time (%) Hourly cost
------------------------------------------------------------------------
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
------------------------------------------------------------------------
* $95.67 rounded to $96.00.
The total estimated cost of the traditional annual PRA burden is
$12,349,152, as reflected in Table 5 below:
Table 5--Total Cost of Traditional Annual PRA Burden
----------------------------------------------------------------------------------------------------------------
Action Hour burden Hourly cost Total cost
----------------------------------------------------------------------------------------------------------------
Complying with recordkeeping requirements under 31 CFR 106,748 $96 $10,247,808
1021.410(a) & (b)(1)-(9).......................................
Complying with recordkeeping requirements under 31 CFR 17,917 96 1,720,032
1021.410(b)(11)................................................
Complying with recordkeeping requirements under 31 CFR 3,972 96 381,312
1021.410(c)....................................................
-----------------------------------------------
Total Cost.................................................. .............. .............. 12,349,152
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Part 3. Supplemental Annual PRA Burden
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 each type of recordkeeping requirement covered by
the regulations being renewed. The future burden estimate will also
include estimates of the number of transactions conducted annually by
casinos that would trigger each recordkeeping requirement. In the
future, FinCEN intends to obtain an estimate of the number of card
clubs
[[Page 8940]]
required to comply with 31 CFR 1021.410.
(a) 31 CFR 1021.410(a) and (b)(1)-(9) \25\
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\25\ See supra note 7.
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As noted above, there are practical challenges to determining the
total number of deposits accepted, accounts opened, or lines of credit
extended by each casino annually. In addition, there are practical
challenges in estimating how many records, as described under 31 CFR
1021.410(b)(1)-(9), are generated by each casino each year. In order to
more accurately estimate the related PRA burden in the future, FinCEN
intends to obtain a better understanding of the volume of deposits
accepted, accounts opened, and lines of credit extended per casino and
across the casino industry in total. In addition, FinCEN intends to
obtain a better understanding of (i) the volume of records required to
be made and retained under 31 CFR 1021.410(b)(1)-(9), and (ii) which of
these records are required to be maintained exclusively for complying
with the BSA, as opposed to complying with other regulatory
requirements or for practical business purposes.
(b) 31 CFR 1021.410(b)(11)
As noted above, FinCEN does not have a way to estimate the number
of cash transactions conducted annually per card club. In addition,
FinCEN does not have a source to estimate the number of card clubs
affected by this regulation. In order to more accurately estimate the
related PRA burden in the future, FinCEN intends to obtain a better
understanding of the volume of cash transactions conducted annually per
card club and across the card club industry in total. In addition,
FinCEN intends to obtain a better understanding of the population of
card clubs required to comply with 31 CFR 1021.410.
(c) 31 CFR 1021.410(c)
As noted above, FinCEN has no way to determine the volume of
transactions that would trigger one of the recordkeeping requirements
under 31 CFR 1021.410, and of those transactions, how many would be
retained on a computer disk, tape, or other machine-readable media. In
the future, FinCEN intends to obtain a better understanding of the
volume of transactions that would trigger the recordkeeping
requirements in 31 CFR 1021.410 per casino, and across the casino
industry. In addition, FinCEN intends to obtain a better understanding
of how such records are stored and maintained, and the burden and cost
associated with storage and maintenance of such records.
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.\26\ The data
obtained in these studies also may result in a significant variation of
the estimated traditional annual PRA burden.
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\26\ 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, depending on
the nature of the casino's transactions and accounts, the casino may
be collecting and maintaining some of the same information in order
to satisfy other obligations including (i) protecting the casino
from fraud against itself or its customers, (ii) complying with
other non-BSA regulatory requirements, or (iii) improving the
casino's marketing efforts.
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Estimated Number of Respondents: 993, as set out in Table 1.\27\
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\27\ Because FinCEN does not have a reliable source to estimate
the number of card clubs that would be impacted by this regulation,
the estimated number of respondents only includes casinos as set out
in Table 1.
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Estimated Total Annual Recordkeeping Burden: The estimated total
annual PRA burden is 128,637 hours, as set out in Table 2.
Estimated Total Annual Recordkeeping Cost: The estimated total
annual PRA cost is $12,349,152 as set out in Table 5.
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 4. 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 2 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 casinos 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 3 of
this notice.
(c) Specific request for comments on the appropriate criteria and
methodology 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
way to ask casinos about the annual hourly burden and cost attributable
solely to the regulations covered by this notice (i.e., the hourly
burden and cost of complying with the recordkeeping requirements
imposed exclusively by the BSA, which are not used to satisfy
contractual obligations, other regulatory requirements, or business
purposes of the casino).
The supplemental annual PRA hourly burden and cost estimate of the
recordkeeping necessary to comply with the additional recordkeeping
requirements for casinos must take into consideration the information
collected and recorded that is used exclusively for complying with
requirements under 31 CFR 1021.410. 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. Also, due to the evident difficulty
involved in estimating the number of transaction accounts, lines of
credit, and transactions that trigger recordkeeping requirements as
[[Page 8941]]
described in this notice FinCEN welcomes any suggestions as to how to
derive these estimates by using publicly available financial
information.
(d) Specific questions for comment associated with making and
retaining the records required by the regulations described in this
notice (if the commenter is a casino or card club, FinCEN asks that the
comment provide information particular to that casino or card club):
<SUP>28</SUP>
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\28\ Comments submitted in response to this notice will become a
matter of public record. Therefore, commenters should submit only
information that can be made publicly available.
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(1) Complying With 31 CFR 1021.410(a)
<bullet> On average, how many deposits of funds does a casino
accept annually?
<bullet> On average, how many accounts does a casino open annually?
<bullet> On average, how many lines of credit does a casino extend
annually?
<bullet> On average, how long does it take a casino to collect,
verify, and retain the records required to be maintained when it
accepts a deposit, opens an account, or extends a line of credit?
(2) Complying With 31 CFR 1021.410(b)(1)-(9)
<bullet> On average, how often does a casino conduct each of the
transactions described in 31 CFR 1021.410(b), as explained in further
detail in Section I above?
<bullet> On average, how long does it take a casino to collect and
retain the records required to be maintained when it conducts one of
the transactions described in 31 CFR 1021.410(b)?
<bullet> How many of the records required to be made and retained
under 31 CFR 1021.410(b) does a casino make and retain exclusively to
comply with the BSA? How many of these records does a casino make and
retain for other business or regulatory purposes, and what are those
purposes?
(3) Complying With 31 CFR 1021.410(b)(11)
<bullet> Is there a public source that FinCEN can utilize to
estimate the number of card clubs required to comply with 31 CFR
1021.410?
<bullet> On average, how many cash transactions are conducted
annually by a card club?
<bullet> Are the records required to be maintained under 31 CFR
1021.410(b)(11) recorded and maintained exclusively to comply with the
BSA, or does a card club make and retain any of these records for other
business or regulatory purposes? If so, what are those purposes?
(4) Complying With 31 CFR 1021.410(c)
<bullet> On average, how long does it take a casino to input and
retain the records required to be maintained by 31 CFR 1021.410 on
computer disk, tape, or other machine-readable media, if a casino
retains the required records in such a format?
<bullet> On average, what are the estimated costs for a casino to
retain all of the records described in 31 CFR 1021.410 on computer
disk, tape, or other machine-readable media for a period of five years?
(e) 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. 2022-03260 Filed 2-15-22; 8:45 am]
BILLING CODE 4810-02-P
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</html>Indexed from Federal Register on February 16, 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.